Monday, January 7, 2013

5ES OF ADVERTISING

How advertisers are redefining the 5Es of advertising

Recently, Gerard J. Tellis, a professor and director of the Center for Global Innovation at the Marshall School of Business, University of Southern California, undertook a research with Raj Sethuraman and Richard Briesch, through which they attempted to establish the impact of advertising on market share. They analysed 750 cases between 1960 and 2008 across brands, product categories and countries. The results were startling. Half of the ads were ineffective, the average effect of advertising was half as much as previously believed – they found that a 1% increase in ad expenditure results in a 0.1% increase in market share. They concluded that while advertising remains a powerful tool, its impact has declined over the years.

When you take an analytical view, all successful advertising campaigns are a result of combining one or more (definitely, the more the merrier) of the five essential elements – Engage, Entertain, Educate, Enrich & Empower. The first three link to how the creative is designed and executed to keep customers involved while driving home the right dose of information. The last two relate to ensuring that the customers realise and retain in memory how the product or service can give them a better experience and also enable them to make some aspect of their life better. In the past few years, while advertisers have retained their obsession with the 5Es, they are redefining them quite decisively in tune with the times.

ENGAGE:

How well is your advertisement able to typically involve the audience and incite a call for action? The penetration of the Internet and rise of convergence has changed the dynamics of media consumption. If you look at the number of patents that researchers are filing in US pertaining to quantitative, statistical and complex algorithms for media planning, it becomes evident that human judgement is no longer reliable. There is just too much data. This is changing the very vehicles that carry the message. Depending upon their marketing budgets, companies are now spending millions on buying audiences on the web. A study undertaken by MediaMath in association with KN Dime store showed that “audience buying raised brand awareness by 26% and brand preference by 39% compared to unexposed consumers.” According to recent statistics, the information consumed on the Internet every day is enough to fill 168 million DVDs. 294 billion e-mails are sent every day and 2 million blog posts are written.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
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