nielsen-reaching-consumers-across-the-economic-cycle
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Reaching consumers across the economic cycle:
Which creative ad tactics resonate most? JAMES RUSSO and JOE STAGAMAN
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The world has changed
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1980s
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TODAY
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think differently. it’s time to
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The $450 trillion opportunity
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$64,000 for every person on the planet.
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consumer confidence changes the game.
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Consumer Confidence Movers and Shakers
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Confidence Correlating With Sales unit sales vs year ago
India France Taiwan
Consumer Confidence
Unit Sales Chg
2010-Q1 127 17%
2010-Q2 129 18%
2010-Q3 129 15%
2010-Q4 131 16%
2011-Q1 131 11%
2011-Q2 126 11%
2011-Q3 121 9%
2011-Q4 122 9%
2012-Q1 123 10%
Consumer Confidence
Unit Sales Chg
2010-Q1 68 1%
2010-Q2 63 1%
2010-Q3 67 1%
2010-Q4 65 1%
2011-Q1 61 1%
2011-Q2 69 0%
2011-Q3 56 1%
2011-Q4 55 1%
2012-Q1 50 1%
Consumer Confidence
Unit Sales Chg
2010-Q1 85 1%
2010-Q2 84 3%
2010-Q3 88 3%
2010-Q4 86 2%
2011-Q1 91 3%
2011-Q2 89 3%
2011-Q3 87 1%
2011-Q4 71 1%
2012-Q1 84 2%
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Which region had the highest increase in total ad
spend from 2010 to 2011?
A) North American
B) Latin America
C) Middle East and Africa
D) Asia Pacific
Which region had the highest increase in total ad
spend from 2010 to 2011?
A) North American
B) Latin America
C) Middle East and Africa
D) Asia Pacific
Poll Question
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+11.6% +11.6%
Latin America
Latin America
+11.6%
Latin America
+11.5% +11.5%
Asia Pacific
Asia Pacific
+11.5%
Asia Pacific
+11.3% +11.3%
ME & Africa ME & Africa
+11.3%
ME & Africa
-0.4% -0.4%
West Europe West
Europe
-0.4%
West Europe
+1.8% +1.8%
North America
North America
+1.8%
North America
Shift in Ad spending 2010-2011
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Key Take Aways
Ad spend is in sync with
economic trends
Economic state and
confidence levels affect spend
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global yet local
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Global consumer concerns
ECONOMY JOBS WORK/LIFE BALANCE
HEALTH FOOD PRICES
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Local concerns
USA SPAIN BRAZIL RUSSIA
INDIA FRANCE MEXICO
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Key Take Aways
Know your audience and
speak to them accordingly
Consider universal themes
that resonate
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diverse demanding connected
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Poll Question
What is the most frequently used animal in
advertisements?
A) Cat
B) Fish
C) Dog
D) Bird
What is the most frequently used animal in
advertisements?
A) Cat
B) Fish
C) Dog
D) Bird
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ANIMAL LANDMARK BACKGROUND JOB
SPORT ROLE FLOWER TOPIC
Most Used Images To Reach Global Consumers
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The $488 billion question…
did the economy affect how we
respond to creative?
$450 trillion
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Uncertain is the new normal
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Key Take Aways
Ads must resonate with the
audience by taking into
account local market and
circumstances
Advertisements need more
than just visuals
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Consumer ad response isn’t always as it seems
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REACH RESONANCE REACTION
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PRICE/PROMO NARRATIVE VALUE SENTIMENTAL PRODUCT HUMOR
net likeability 2006 - 2011
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Which type of ad resonated least with consumers
during the recession?
A) Price/Promotion
B) Humor
C) Sentimental
D) Narrative
Which type of ad resonated least with consumers
during the recession?
A) Price/Promotion
B) Humor
C) Sentimental
D) Narrative
Poll Question
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PRICE/PROMO
VALUE
SENTIMENTAL
PRODUCT
HUMOR
What we found
NARRATIVE
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147
88
71
88
133
107
73
107
133
107
60
88
Pre Post During
Four key insights into consumers
Pre Post During Pre Post During Pre Post During
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Composition of ads
2011 New Consumer Economy
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Key Take Aways
Surprisingly, even in tough
economic times, price/
promotion and product do not
resonate well with audiences
Humor, sentimental, value,
and narratives resonate
consistently with audiences
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Speak to your audience
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The importance of local understanding humor
lighthearted, cute sophisticated / dry / satirical
puns parodies
sarcastic / weird / mean-spirited immature / cheesy / juvenile
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the top performers
Index:
280
PRE-RECESSION RECESSION POST-RECESSION
Index:
300 Index:
312
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… so what?
Hispanic Index:
367
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JULY 2010 OCT 2011
sales
+41%
… so what?
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Key Take Aways
The 3Rs—Reach, Resonance,
Reaction—are key to
successful ad campaigns
Resonance leads to results
and has high correlation
with sales
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Make a connection
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More similar than different
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Key Take Aways
Advertisers need to make a
connection to solicit a
response
The brain universally reacts
across cultures
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Overarching Themes
Advertisers must know
universal and local tactics to
resonate with their audience
Advertisers must not only
reach consumers, but also
must resonate with them
Advertisers must connect
with their consumer need
states to solicit a response
Resonance leads to
reaction/purchase
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Reaching consumers across the economic cycle:
Which creative ad tactics resonate most? JAMES RUSSO and JOE STAGAMAN