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The £10m Cost of Dull Advertising: Insights for Business Leaders

Advertising is at a Crossroads

Advertising has become increasingly dull over the past 15 years, primarily due to the dominance of performance marketing. Peter Field, a renowned marketing consultant, highlights that while any campaign can succeed with enough financial backing, a dull campaign can cost millions more annually to match the performance of an engaging one.

Why It Matters

“Dull is expensive commercially because you have to put so much more effort and money to land the dull message than an interesting one,” says Adam Morgan of eatbigfish. In their research, Morgan and Field, alongside System1, found that 48% of B2C ad responses are neutral, and a staggering 78% of B2B ad responses are similarly indifferent. This widespread dullness is not only financially burdensome but also exclusionary for both consumers and colleagues.

The Financial Impact

Field’s initial research, drawing from the IPA Effectiveness Awards database, estimated the cost of dull advertising to be £10 million. This figure is an average, with costs potentially doubling in specific categories where the share of voice (SOV) is more expensive. Campaigns that pursue dull advertising require far more significant budgets than their more exciting counterparts. Field reports that these campaigns can extend SOV by 11 points more than non-dull campaigns.

Key Takeaways for Leaders

1. Higher Budgets for Dull Campaigns: Campaigns with dull advertising have significantly larger budgets. This indicates a need for businesses to reassess their marketing strategies and prioritize creativity and engagement.

2. Costly SOV in Certain Categories: Buying SOV is already costly in sectors like retail and durables. A dull campaign in these industries could require an additional £20 million annually to achieve the same effect as an exciting campaign.

3. Corporate Metrics vs. Creativity: The path to dullness is often paved with good intentions. Corporate metrics can push marketers towards safer, more predictable campaigns, but this risk aversion can be costly in the long run.

4. Long-term Ineffectiveness: Years of focusing on performance marketing have delivered short-term gains at the expense of long-term effectiveness. A creative approach is crucial for sustainable success, particularly in top-of-funnel marketing.

A Critical Perspective

Peter Field sums it up succinctly: “We are not saying dull campaigns are ineffective. It is just that they do not work very hard. And you get a much bigger performance out of these more exciting campaigns – it can be six or seven times greater for every euro, dollar, or pound you put behind them.”

The True Cost of Dull (SOV)

The analysis shows that rational ads result in a +7.3 percentage point increase in market share growth and a +4.7 percentage point increase in profit growth compared to their dull counterparts. Emotional ads fare even better, leading to an +11.5 percentage point increase in market share growth and a +6.8 percentage point boost in profit growth.

For business leaders, the message is clear: investing in creative, engaging advertising is not just a nice-to-have. It is a financial imperative. The cost of dull advertising is staggering in direct financial terms and missed opportunities for growth and engagement. As the advertising landscape evolves, the emphasis should be on crafting campaigns that resonate emotionally and captivate audiences. The financial benefits of such an approach are undeniable, offering significantly higher returns on investment.

Business leaders must champion creativity and boldness in their marketing strategies, ensuring their brands stand out in an increasingly crowded and competitive marketplace. 

The cost of dullness is simply too high to ignore.

June 3, 2024 by

Defining Modern Marketing: Our Perspective

In our latest YouTube video, we dive into what marketing truly means for today’s business leaders. Understanding and defining marketing is essential for high-level marketing executives and CEOs to drive value and growth. We believe modern marketing goes beyond promoting products; it is about creating meaningful connections with your audience, leveraging data-driven insights, and delivering consistent value through an integrated approach.

By putting the customer at the center, utilizing data and analytics, staying innovative and adaptable, and ensuring all efforts are cohesive, marketing becomes a powerful tool for building long-term relationships and driving business success. Watch our video to explore how our definition of marketing can empower your strategic decisions and unlock new growth opportunities.

Watch the full video here.

May 30, 2024 by

Why 46% of Companies Do Not Make Data-Driven Marketing Decisions

Many companies still navigate the marketing domain without leveraging data to its full potential. 

This hesitancy or inability to adopt data-driven approaches has profound implications, not just for the effectiveness of marketing campaigns but also for these companies’ overall strategic direction.

There are several reasons why nearly half of all companies have yet to fully embrace data-driven marketing despite the overwhelming evidence of its effectiveness.

Lack of Infrastructure: Many organizations need the technological infrastructure and tools to collect, analyze, and act on data. With a centralized place to manage data, harnessing insights that can drive marketing decisions is more accessible.

Skill Gaps: There is often a significant skill gap within organizations, with teams needing more expertise to interpret complex data sets. This can make data seem more intimidating than instructive.

Cultural Barriers: Some companies have a deeply ingrained culture prioritizing intuition and experience over empirical evidence. Changing this mindset requires time and proof of concept that data-driven decisions yield better outcomes.

Resource Constraints: Implementing a data-driven marketing strategy requires investment in technology and talent. Companies might prioritize these resources elsewhere, especially if the immediate returns of data-driven marketing are not apparent.

Data Quality and Silos: Even when data is available, it has often fragmented across different departments or is of poor quality. This can lead to mistrust of the data and reluctance to rely on it for decision-making.

The Edge for Data-Driven Companies

On the flip side, companies that leverage data-driven marketing enjoy a competitive edge characterized by several key advantages:

Informed Decision-Making: Data provides insights into customer behavior, preferences, and trends, allowing for more targeted and effective marketing strategies.

Improved Customer Experience: Personalization, only possible through data analysis, can significantly enhance the customer experience, leading to higher engagement and loyalty.

Efficiency and ROI: Data-driven decisions often result in more efficient marketing spending, higher conversion rates, and better overall ROI.

Agility: Data allows companies to quickly adapt to market changes and customer feedback, keeping them ahead of competitors who move more slowly because they rely on intuition rather than insights.

The CMO at the C-Level Meeting

A CMO who comes to the table without data is akin to showing up without the ability to speak. 

They cannot answer critical questions about customer behavior, marketing performance, or investment justification. 

This scenario highlights the growing expectation for all executives, especially marketing executives, to base their strategies and decisions on solid data.

The Path Forward

Investing in Technology: Companies must prioritize investments in data management and analytics tools.

Cultivating Talent: Building or acquiring the necessary talent to analyze and interpret data is critical.

Fostering a Data Culture: Organizations must cultivate a culture that values data-driven decision-making.

Ensuring Data Quality: Implementing processes to ensure the quality and accessibility of data is fundamental.

Breaking Down Silos: Encouraging collaboration across departments can help unify data sources and strategies.

While transitioning to a data-driven approach may present challenges, the benefits far outweigh the initial hurdles. 

For companies willing to invest in the necessary tools, talent, and cultural shifts, data-driven marketing offers a clear path to enhanced performance and competitive advantage.

May 20, 2024 by

The Power of Brand Loyalty: Cultivating Brand Lovers

In marketing, brand loyalty is the ultimate goal. It is not just about repeat customers but about creating passionate advocates who spread the word effortlessly. 

Companies that excel in this arena understand the importance of fostering communities around their brand’s message. By diligently meeting customer needs and surpassing expectations, they cultivate Brand Lovers – individuals who would not dream of switching to a competitor. Think about Apple enthusiasts who swear by their products. These loyal customers elevate a brand to cult status, driving growth through word-of-mouth marketing.

Ready to unlock the potential of brand loyalty? 

Take a deeper dive into this essential aspect of modern marketing at cultbranding.com/ceo/brand-loyalty-crash-course. 

Discover how your business can thrive by nurturing a dedicated customer base.

May 16, 2024 by

Identify Your Brand Lovers

Perhaps your enterprise does not have Brand Lovers like Apple or Oprah, but you have your best customers – customers who give you repeat business and may tell their friends and colleagues about your brand.

So, how do you find your best customers? 

They often find you, congregate at your stores, send you emails, and call you occasionally to tell you how great you are doing. 

Some customers might even blog about your products or services or create videos and post them on social media.

On the financial side, if you maintain a customer database, you can sift through it and determine who purchases from you with the most significant frequency and for the longest period.

What if you need help locating them? 

Then, get creative. 

Carefully crafted surveys might help, or you may need to hire a firm to help you identify your best customers.

May 7, 2024 by

The Power of Retail Marketing

From boosting brand awareness to driving sales and profitability, retail marketing isn’t just about flashy ads and catchy slogans. It’s a strategic endeavor that touches every aspect of your business, from the layout of your physical store to your online presence. In our newest video, we take you on a journey through the philosophy behind retail marketing, showcasing its pivotal role in fostering lasting connections with your audience and alleviating buyer’s remorse.

Curious to learn more about the secrets of retail marketing? Dive deeper into the topic on our dedicated page: What is Retail Marketing?

April 30, 2024 by

Marketing Strategy Insights from Iconic Brands

Unlock the secrets of marketing success with our latest video! Join us as we journey through the captivating stories of iconic brands like Starbucks, Nike, Dove, and Tesla, discovering the essence of their unparalleled marketing strategies.

From Starbucks’ creation of a comforting “third place” to Nike’s strategic embrace of celebrity endorsements, each narrative offers invaluable lessons for brand elevation. Dive into Dove’s revolutionary embrace of diversity and inclusion, and Tesla’s audacious departure from traditional advertising.

At The Cult Branding Company, we understand that effective marketing is about more than just being the loudest voice—it’s about resonating with the right audience, in the most authentic way possible.

Want to learn more? Join us as we explore the diverse landscape of marketing strategies that drive success. For an in-depth look at the 52 types of marketing strategies that can elevate your brand, head over to https://cultbranding.com/ceo/52-types-of-marketing-strategies

April 23, 2024 by

A Brand Builder’s Guide to Leveraging Big Data

Hi Brand Builders,

During my 5 years working with the Kohl’s team, we transformed the brand from $8 billion to $18 billion in revenue by leveraging Big Data.

At the heart of our strategy was a simple yet powerful idea: 

We want to wow our customers and understand them better than they know themselves.

Throughout my career, I have been driven by a passion for storytelling, exceptional advertising campaigns, and a keen understanding of numbers. I have always believed that when these two elements align, magic happens. It’s much like discovering a casino bonus sans depot, where the thrill of the game meets the strategy of maximizing value. Just as data-driven insights revolutionized baseball in the concept of “Moneyball,” blending creativity with analytics can transform the way we approach advertising, leading to breakthrough results.

While there is no one-size-fits-all formula for success, that has not stopped me from trying to crack the code. One day, we will uncover the definitive consumer insight framework that transforms our industry. Until then, I am committed to sharing guiding principles that can help brands achieve success using big data.

Understanding your customers is paramount to success. As a brand builder, you can harness the power of big data to gain profound insights into consumer behavior, preferences, and trends. 

Let us explore some guiding principles to help you leverage big data effectively:

1. Define Clear Objectives: Start by outlining specific objectives you aim to achieve through consumer insights. Whether enhancing customer engagement, optimizing marketing strategies, or driving innovation, clarity in your goals is essential.

2. Identify Relevant Data Sources: Explore diverse data sources where valuable consumer information resides. From social media platforms and e-commerce websites to customer relationship management systems, cast a wide net to capture comprehensive insights.

3. Collect Data Effectively: Implement mechanisms to collect relevant data from identified sources. This may involve setting up web analytics tools, deploying social media listening platforms, or developing custom APIs for seamless data integration.

4. Integrate and Manage Data: Centralize your collected data into a unified repository for streamlined analysis. Employ data integration techniques to ensure consistency and accuracy across datasets and prioritize robust data management practices to maintain quality and security.

5. Analyze for Actionable Insights: Apply advanced analytics techniques to extract actionable insights from your data. Utilize statistical analysis, machine learning algorithms, and data visualization tools to uncover patterns, trends, and correlations that inform your brand strategies.

6. Segmentation and Personalization: Segment your audience based on demographic, behavioral, or psychographic attributes from extensive data analysis. Develop personalized marketing campaigns and customer experiences tailored to each segment’s unique preferences.

7. Embrace Predictive Analytics: Leverage predictive analytics models to forecast future consumer behavior and trends. You can anticipate market shifts and proactively optimize your strategies by analyzing historical data patterns and extrapolating future trends.

8. Iterate and Improve: Continuously refine your consumer insights strategies based on feedback and performance metrics. Monitor key performance indicators (KPIs) related to consumer engagement and conversion rates and iterate your approaches accordingly.

9. Prioritize Ethical Data Practices: Ensure ethical data practices throughout your consumer insights journey. Respect consumer privacy rights, obtain necessary consent for data usage, and implement stringent security measures to safeguard sensitive information.

10. Foster Collaboration: Foster collaboration between cross-functional teams to leverage consumer insights effectively across all aspects of your business. Break down silos and encourage knowledge sharing to ensure alignment and coherence in your brand strategies.

By embracing big data and unlocking consumer insights, brand builders can better understand their audience, drive meaningful engagements, and fuel business growth. 

Let us continue to explore, innovate, and strive for excellence in pursuing consumer-centric brand building.

Here is to the journey ahead!

Warm regards,

Bolivar J. Bueno

April 3, 2024 by

From Loyalty to Leadership: The Power of Putting Customers First

My journey through Brand Modeling, examining how giants like Harley-Davidson Motor Company and Apple have become market leaders, has underscored the undeniable value of customer-centricity.

When customers genuinely feel valued, their loyalty to your brand intensifies.

This loyalty is not just about repeat purchases;

It turns customers into ambassadors who spread the word about your brand to their networks.

Putting customers first opens up a vital feedback loop.

This direct line to customer insights is crucial for refining products, enhancing services, and innovatively solving problems—ensuring your brand evolves in alignment with customer needs.

A culture that celebrates customer satisfaction boosts employee morale and engagement.

When your team sees the impact of their work on making customers happy, it elevates their sense of purpose and fulfillment.

Prioritizing your customers satisfies their immediate needs and fosters a loyal base crucial for sustainable growth.

This approach leads to repeat business and new customers, driven by word-of-mouth, the most powerful marketing tool.

By understanding and implementing the lessons from “Customers First,” you can embark on a path that differentiates your products and nurtures a loyal community around your brand.

This is the key to surviving and thriving in today’s competitive market.

March 20, 2024 by

52 Business Marketing Ideas for 2024

Pick a strategy, any strategy.

I love card magic and difficult slights of hand. 

It is not easy to make something like a card trick look like magic, but it can happen with hard work and perfect practice. 

The same is true for marketing ideas.

When executed with insight and creativity, these strategies help businesses connect deeply with their audiences, build loyal communities, and leverage consumer behavior in the digital age. 

1. Leverage Niche Communities: Identify and engage with niche online communities related to your product or service.

2. Create Shareable Content: Focus on content encouraging sharing to boost word of mouth naturally.

3. Utilize Influencer Partnerships: Partner with influencers who share your brand’s values and can authentically represent your product.

4. Engage in Social Listening: Social listening tools gather insights and respond to consumer needs and preferences.

5. Personalize Customer Experience: Tailor experiences to individual customer preferences using AI and data analytics.

6. Host Virtual Events: Create immersive and interactive virtual events that resonate with your target audience.

7. Implement Gamification: Use gamification to increase engagement and loyalty.

8. Focus on Sustainability: Communicate your brand’s commitment to sustainability and ethical practices.

9. Leverage UserGenerated Content: Encourage your community to share their experiences and stories.

10. Experiment with AR/VR: Enhance online shopping or product experiences with augmented reality (AR) or virtual reality (VR).

11. Offer Exclusive Membership Benefits: Create a sense of belonging for members with exclusive offers or content.

12. Utilize Chatbots for Engagement: Implement AI-powered chatbots for personalized customer interactions.

13. Embrace ShortForm Video: Leverage platforms like YouTube Shorts and Instagram Reels for engaging short-form content.

14. Invest in Podcast Advertising: Tap into niche audiences with sponsorships or create your branded podcast.

15. Develop a Strong Brand Story: Craft and share a compelling brand story that resonates with your audience.

16. Implement SEO Best Practices: Optimize your online content for search engines to increase visibility.

17. Create Interactive Content: Develop quizzes, polls, or infographics to engage your audience.

18. Leverage Email Marketing: Personalize email communications to build relationships and inform your audience.

19. Develop a Referral Program: Encourage word-of-mouth marketing with referral incentives.

20. Use DataDriven Marketing: Analyze consumer data for marketing strategies and decisions.

21. Focus on Customer Service Excellence: Exceptional customer service can differentiate your brand and foster loyalty.

22. Engage in Corporate Social Responsibility: Support causes that align with your brand values to build trust and connection.

23. Offer Customization Options: Customers can personalize products or services to meet their needs.

24. Utilize Retargeting Strategies: Reengage visitors who have shown interest in your products or services.

25. Explore Voice Search Optimization: Optimize your content for voice search to stay ahead in SEO.

26. Host Webinars or Workshops: Share expertise and build authority in your field through educational content.

27. Engage Through Storytelling on Social Media: Use the power of stories on platforms like Instagram and Facebook to connect personally.

28. Implement Loyalty Programs: Reward repeat customers to encourage loyalty and increase retention.

29. Explore Emerging Social Platforms: Stay ahead by establishing a presence on up-and-coming social media platforms.

30. Use Analytics for Insights: Regularly analyze your marketing efforts to understand what works and refine your strategies.

31. Collaborate with Other Brands: Find complementary businesses for cross-promotional opportunities.

32. Focus on Mobile Optimization: Ensure your website and content are optimized for mobile devices.

33. Try Humor: Incorporating humor can capture attention, evoke positive emotions, and create a connection with your customers.

34. Leverage Hashtag Campaigns: Create and promote branded hashtags to track and encourage conversations.

35. Offer Limited Edition Products: Create urgency and exclusivity with limited-time offers or products.

36. Implement Direct Mail Campaigns: Stand out with personalized direct mail pieces that complement digital efforts.

37. Engage in Community Building: Foster community among your customers through forums, social media groups, or events.

38. Utilize LocationBased Marketing: Target customers with personalized offers based on their geographic location.

39. Offer Free Trials or Samples: Let potential customers experience your product or service firsthand.

40. Create a Seamless OmniChannel Experience: Ensure consistent branding and messaging across all touchpoints.

41. Implement Video Testimonials: Share real customer stories and testimonials through video to build trust.

42. Utilize Live Streaming: Connect with your audience in real time through live broadcasts on social media.

43. Use TV Media: With the ability to reach millions of households, television serves as a universal language.

44. Invest in Quality Photography: High-quality images can significantly impact the perceived value of your product or service

45. Focus on Experiential Marketing: Create memorable, immersive experiences that engage customers deeply with your brand.

46. Optimize for Local SEO: Ensure your business is visible in local search results to attract nearby customers.

47. Deploy Conversational Marketing: Engage customers in real-time conversations via chat or messaging apps to personalize their experience.

48. Create a Brand Community: Build a platform for your most loyal customers to connect, share, and engage with each other.

49. Leverage Blockchain for Transparency: Use blockchain technology to enhance transparency and trust in your business practices.

50. Innovate with IoT Advertising: Integrate your marketing efforts with the Internet of Things (IoT) to create unique, interactive experiences.

51. Use Predictive Analytics: Employ predictive analytics to forecast customer behavior and tailor your marketing strategies accordingly.

52. Embrace Ethical Marketing: Ensure all your marketing practices are ethical and transparent to build trust and loyalty with your audience.

In 2024, marketing strategies should focus on reaching audiences and creating meaningful connections, leveraging technology to personalize experiences, and ensuring that ethical practices are at the core of your efforts. 

These strategies aim to build a loyal community around your brand, making it a beloved and trusted entity among your customers.

March 18, 2024 by