effective marketing for b2b brands · •limited data suggests b2b follows broadly similar patterns...
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In association with
LES BINET ADAM & EVE DDBPETER FIELD PETER FIELD CONSULTING
NEW LEARNINGS FROM THE IPA DATABANK
MARKETING EFFECTIVENESS IN THE DIGITAL ERA
IN F CUS
Effective marketing for B2B brands
Learnings from the IPA Databank
Les Binet & Peter Field
Our research
In association with
LES BINET ADAM & EVE DDBPETER FIELD PETER FIELD CONSULTING
NEW LEARNINGS FROM THE IPA DATABANK
MARKETING EFFECTIVENESS IN THE DIGITAL ERA
IN F CUS
But do B2C rules apply to B2B marketing?
Six principles of growth1. Build a strong brand2. Expand your customer base3. Maximise mental availability4. Harness the power of emotion5. Budget for growth6. Balance your budget
1) Build a strong brand
Sale
s upl
ift o
ver b
ase
TimeSource: Binet & Field 2013
The B2C model we’re evaluating for B2BSales activation
Tightly targeted – about to buyShort term sales upliftsInformation works best
Brand buildingBroadly targeted - all cat buyers
Long term sales & margin growthEmotions work best
Short term effects dominate ~6 months
Brand building works harder than activation in B2B
0.7
1.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Activation/direct Brand building only
Num
ber o
f ver
y la
rge
biz
fx. r
epor
ted
Primary Campaign Objectives
Source: IPA Databank, 1998-2018 B2B cases
The Economist: brand building for 14 years
2) Expand your customer base
Broad targeting works best in B2B ads
0.0
1.0
1.6
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Loyalty strategy - existingcustomers
Acquisition strategy - newcustomers
Broad reach strategy - all in thecategory
Avg.
no.
VL
biz
effe
cts
Base: 2008-18 B2B IPA cases
3) Maximise mental availability
Mental availability drives B2C growth
Awareness Salience Fame
Heard of brand
Passively consider brand
Brand comes easily to mind
Actively seek brand
Brand gets talked about
Cognitive ease, Influence & advocacy
Increasing returns
Fame increases B2C efficiency x 4 and maximises profit
Mental availability drives growth in B2B
2.2
1.6
0.9
0.7
0.0
0.5
1.0
1.5
2.0
2.5
Fame Awareness Other brand goals* Activation goals
Num
ber o
f ver
y la
rge
biz
fx. r
epor
ted
Primary Campaign Objectives* Differentiation, brand image, esteem, trust or commitment
Source: IPA Databank, 1998-2018 B2B cases
4) Harness the power of emotion
Emotions are important in B2B decision making as well
26% 30%
32%35%
42% 35%
0%10%20%30%40%50%60%70%80%90%
100%
B2C B2B
Rela
tive
impo
rtan
ce o
f em
otio
nal v
s.
ratio
nal c
onsi
dera
tion
Sector
E > R
E = R
E < R
Source: IPA Databank, 1998-2018 cases
Information for activation, emotions for brand in B2B
0%
5%
10%
15%
20%
25%
Rational EmotionalComms strategy
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Rational EmotionalComms strategy
Activation effects Brand effects
Source: IPA Databank, 1998-2018 B2B cases
Differentiation is a weak strategy in B2B
2.2
1.6
1.0
0.0
0.5
1.0
1.5
2.0
2.5
Fame Awareness Differentiation
Num
ber o
f ver
y la
rge
biz f
x.
B2B campaigns
Source: IPA Databank, 1998-2018 B2B cases
Emotional strategies clearly outperform in B2B
0.2
1.4
2.4
0.0
0.5
1.0
1.5
2.0
2.5
Rational Emotional Fame
Num
ber o
f ver
y la
rge
biz f
x.
B2B campaigns
Source: IPA Databank, 1998-2018 B2B cases
BT business 2015-18: the long-term power of emotions in B2B
"The [consumer] campaign was all about human closeness and how communication brings people together. We realised, with all our technological advances, that this was something we'd drifted away from [in B2B], but something we wanted to get back to."
Zaid Al-Qassab, CMO BT
BT business TV/Online: Be There
OLV engagement rate vs. rational benchmark 3x CPA -17% ROI 316% Source: BT IPA case study 2018
Some common emotional B2B themes
• Humanity in a tech-obsessed world• Your partner in a tough world• We know it’s lonely at the top• Security in choice• Champion of the entrepreneur• FOMO
VW Commercial Vehicles: Working with You
Targeting SMEs with an emotional proposition:
“Partners rather than sales people”
in a market still obsessed with telling drivers about product features.
VW Commercial Vehicles 2015
Cost per order -67% ROI 1053% Source: VW IPA case study 2016
5) Budget for growth
How brands grow: Bass Diffusion ModelSa
les
Time
Early phaseStrong organic
growth from:Innovation
Physical availabilityContagion
Mature phaseGrowth naturally
slows to zero
The role of advertisingSa
les
Time
With ads
Without ads
Ads can accelerate
early growth
Ads can maintain higher sales and margins.
Budget increases can increase revenue further
“But what about tech firms?”
-
50
100
150
200
250
300
350
400
450
2014 2015 2016 2017 2018
Audi
ted
UK
adsp
end
£mill
ion
Uber
Netflix
Microsoft
Ebay
Apple
Amazon
Source: Nielsen
Budgeting for growth:The share of voice rule
0%
2%
4%
6%
8%
10%
12%
0% 2% 4% 6% 8% 10% 12%
Shar
e of
voi
ce
Share of market
SOV > SOM: brands tend to grow
SOV < SOM: brands tend to shrink
Growth proportional to ESOV = SOV - SOM
Strong correlation for B2B
How ESOV converts into growth
0.2 0.3
0.6
1.5
1.8
0.60.7
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Retail FMCG Durables Financialservices
OtherServices
B2C Average B2B
ESO
V Ef
ficie
ncy
Sector
Source: IPA Databank, 1998-2018 cases
B2B very
similar to B2C
Average+0.6% SOM
p.a. per10% ESOV
Adjust budget for category
& context
Adjust budget to fit pricing strategy
0.86
0.45
0.00.10.20.30.40.50.60.70.80.91.0
Value/mid-market Premium/Super-prem
ESO
V ef
ficie
ncy
Source: IPA Databank, 1998-2016 for-profit cases
Up-weight SOV for premium brands
6.1%7.3%
10.4%
13.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Value Midmarket
Premium Superpremium
Aver
age
ESO
V
Low prices accelerate growth
6) Balance the budget
Brand-activation balance matters
0"
0.5"
1"
1.5"
2"
0" 10" 20" 30" 40" 50" 60" 70" 80" 90" 100"
Num
ber'o
f'business'e
ffects'rep
orted'
%'Budget'allocated'to'brand'building'
Source: IPA Databank, 1998-2016 for-profit cases
“The 60:40 rule”
Optimum mix varies by category
8064 60
5162
46
2036 40
4938
54
0
10
20
30
40
50
60
70
80
90
100
Financialservices
Retail FMCG Otherservices
B2CAverage
B2B
Opt
imum
bud
get s
plit
%
Activation
Brand
Source: IPA Databank, 1998-2018 B2B cases
Optimum mix changes as brands mature
35
57 6272
65
43 3828
0
10
20
30
40
50
60
70
80
90
100
First year Early growth* Mature brand Leader brand
Opt
imum
bud
get s
plit
%
Activation
Brand
Source: IPA Databank, 1998-2018 cases* New brands excluding 1st year
Upweight brand to support higher prices
57 62 64
43 38 36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Value/mid-market Average (all cases) Premium
% activation
% brand
Source: IPA Databank, 1998-2016 for-profit cases
When activation is easy, focus on brand
6274 74 74
3826 26 26
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All brands High online research Online selling Subscription selling
Brra
nd/a
ctiv
atio
n op
timum
Activation
Brand
Source: IPA Databank, 1998-2016 for-profit cases
“But what about tech firms?”
Conclusions• Limited data suggests B2B follows broadly similar patterns and
effectiveness rules as B2C.• Brand building seems to be important in B2B, but the optimum mix
may need to be more activation heavy for some B2B brands.• As with B2C, the optimum B2B strategy needs to be tailored to
category and context.• Strategy will probably depend on targeting too: SMEs vs Corporates
vs dual B2B/B2C brands.• Crucially, strategy needs to evolve over time, with brand investment
becoming more important as the business matures and grows.
Thank you
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