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DDB YP Accountability Effectiveness 200807

DDB YP Accountability Effectiveness 200807

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Published by: vliff on Jul 17, 2008
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The YellowPapers Series
The conictbetween accountability& eectiveness
IPA Awards case studies show which metricsreally matter or marketplace success
“The trouble withapplying ‘accountability’to marketing is that theevaluation is widelyawed, the targets areusually the wrong onesand the result too otenleads to the destructiono shareholder value”
 Accountability sounds good doesn’tit? You require people to measurethe value o their actions, and youincentivise them to ensure that theymeet pre-defned targets. Occasionalraising o the bar drives continuousimprovement, and the businessprospers. The trouble with applying‘accountability’ to marketing is thatthe evaluation is widely awed, thetargets are usually the wrong onesand the result too oten leads to thedestruction o shareholder value. Thoseare the most worrying conclusions oour meta-analysis o 880 national casestudies rom constitute theIPA data-BANK.
We are not against accountability (inact we are all or it, since we both earnour livings rom it), but i accountabilitysystems (such as value-basedremuneration schemes) are to promotebusiness success, then they must bebased on the right targets and metrics.aarticle outlines some o the problems,and suggests some possible solutionsthat enlightened marketers are alreadybeginning to prot rom.
Reproduced with permission o Admap magazine, the world’s leading source o strategiesor eective advertising, marketing and research. Learn more at www.admapmagazine.com Accountability & eectivenessThe YellowPaper Series 02
Our evidence
Our source is the IPA dataBANK probably the world’s largest database on eectiveness,containing over 1200 case studies. This in turn is based on entries to the IPA Eectiveness Awards, the world’s most rigorous eectiveness competition. However, the dataBANKincludes a lot o additional inormation that is not included in the published IPA papers,thanks to a condential questionnaire that authors have to submit at the time o entry. The questionnaire records many details o the trading environment o the brand, o thestatus o the brand, o the eatures o the campaign and o its results (both business eectsand intermediate consumer eects). In some cases there is even ROI data too – by whichwe mean rigorously calculated prot returns on marketing investment.Previous analyses o IPA cases have tended to ocus on what does and does not winprizes. Our analysis is dierent. Thanks to the condential data contained in the dataBANK,we are able to look at what actually works in business terms, rather than what wins prizes.Our key measure is what we have called the ‘Eectiveness Success Rate’ (ESR). This isthe percentage o cases that report ‘very large’ eects in any o a number o key businessmetrics, such as prot, market share, price elasticity etc. This measure turns out to beclosely related to marketing payback (the higher the ESR), the higher the ROI (see ourreport or details). And unlike actual prot data (which are rarely available), this measureis available or hundreds o cases, allowing us to perorm detailed analysis o what drivesbusiness success.Looking at actual business success not only reveals some o the actors that makemarketing more protable, but also exposes some o the common practices that lead towaste and ineciency. Many o these relate to the tension between eectiveness (doing theright thing) and accountability (being seen to do the right thing). This in turn is closely relatedto how you measure success.
Les Binet
is European director o DDB Matrix,DDB’s econometrics consultancy. He has won13 IPA Eectiveness Awards, more than anyoneelse in the history o the competition. He wasConvenor o Judges or the Awards in 2005.
Peter Field
has been a marketing consultant orthe last 10 years. Prior to that he ran the accountplanning departments at Bates and Grey. He setup the IPA dataBANK in 1996 and was a judgeo the Eectiveness Awards in 1998. He is anhonorary Fellow o the IPA.
03 Accountability & eectiveness The  YellowPaper Series

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