WWO: Marketers Underestimate Sales Effect of Creative
This week’s Cumulus Media | Westwood One Audio Active Group blog post looks at the results of an ongoing study by Advertiser Perceptions that surveys brands and media agencies on the sale contribution of five advertising effectiveness factors: Brand, Creative, Reach, Recency, and Targeting.
Interestingly, marketers and media agencies massively underestimate the immense sales effect power of creative. NCSolutions says that creative drives half of sales, about two-and-a-half times what advertisers perceive. The Advertiser Perceptions February 2024 study reports brands and media agencies say creative only represents 19% of total sales effect. NCSolutions science reveals creative generates an eye-popping 49% of incremental sales. According to System1 chief customer officer Jon Evans, “Creative is the number one factor in explaining the performance of your advertising and yet most marketers still don’t realize it. That means that those who focus on getting the creative right have a huge competitive advantage. Firstly, marketers need to wake up to the importance of creative and secondly realize it isn’t some dark art but something you can measure and improve to give you an advantage over the competition who haven’t realized this yet.” Read the blog post here.
advertising. In 2016 and 2017, direct response represented the vast majority of podcast advertising. From 2018 to 2021, the proportion of podcast ad spend was equally split between brand and direct response.” The post says there are four major implications of the shift to podcast brand advertising: 1) Targeting will become much broader: Wide campaign reach will become the priority with a goal of “being known before you’re needed”; 2) Creative will shift to become more entertaining and emotion based: The objective will be to stir passions and create positive feelings and associations with ads that people find interesting and enjoyable; 3) Brand safety and suitability measurement will become more crucial: Firms like Barometer will become powerful resources to help marketers find the right context for their campaigns with nuanced data; and 4) Measurement will focus on how well campaigns build memories to ensure brands are “easy to mind and easy to find”: Key performance indicators are brand awareness, brand consideration, and brand preference. 
represents an expanded commitment to one of iHeartMedia’s most premium products allowing advertisers to engage audiences with creative, longform native content.” iHeartMedia goes on to say, “Ruby’s branded podcasts allow advertisers and their brand partners to spend upwards of 30-45 minutes with their target audience in a unique environment, with opportunities for storytelling that are not possible anywhere else in their media mix including social video. With distribution across the iHeartRadio app and all other major platforms, native podcasts from Ruby connect brands to audiences by translating brand messaging, products and services into original and engaging stories that audiences love.”