ARF Cognition Council Analysis Finds RMT Creative Codes Explain 48% of Sales

Since its introduction in 1958 by Herb Krugman of Interpublic39s Marplan Division Herb called the method quotGrand Scale Analysisquot MMM has always used media data as its input not creative data On average MMM attributes only 7 of sales to advertisingThe groundbreaking ARF analysis performed by ARF executive staff members Jay Mattlin and Deepak Garg suggesting to me that combining media and creative inputs in future MMM work would tend to show advertising having a higher degree of impact on sales than has been believed for decadesThe ARF Cognition Council study used multiple regression analysis the same statistical platform used by MMMThis will turn into a new use case for RMT To date RMT has been used to increase sales and branding effects of advertising by weighting CPMs in media selection by the degree of creative code resonance between the campaign creative and each alternative environment and programmatically targeting people whose anonymous ID content consumption reveal their psychological resonance with campaign creative Previous thirdparty independent validations of RMT for these use cases have been done by Nielsen NCS Simmons 605 and Neustar all showing double digit sales and brand equity improvements 2395 RMT considers that the derivation of creative codes empirically explains why the RMT creative codes are so strongly predictive of behaviorThe ARF analysis used 49 ads in three product categories deodorants salty snacks pasta sauces across 19 brands with IRI the source of sales data RMT provided 86 Need States rollups of the DriverTags and 15 Motivational Types rollups of the Need States Six additional microclusters of DriverTags were also provided Trust Kindness Helpful Responsibility Friend and CaringThe analysis showed that 11 of the 15 RMT Motivations explained 48 of yearoveryear changes in sales across these three categories The most powerful RMT Motivations were found to be Wealth and Status correlation with sales 051052 unsurprising given that these are the doominant hopefully not dominant drivers in the world culture In ads these are communicated subconsciously based on characters and settings giving each brand its image over a lifetime of campaignsRight behind these quotegoquot motivations came RMT Motivation Service To Humanity correlation 047 which RMT also refers to as Altruism and as SelfTranscendence RMT Need States Support PositiveEthical Good Role Model were close behind correlation 043047 and RMT Motivation Aspiration and Prosocial Value Helpful were also in that latter correlation range The combination of the six Prosocial Value microclusters earned a correlation of only 026These findings were presented in the ARF Cognition Council webinar quotNew Lenses on Brand Identityquot on August 10 2022 The takeaways to this presentation wereBrands should use Service to Humanity in advertising RMT provided ARF Members with exemplary television commercials from which creative teams could draw inspiration as to how to achieve this without backfiring clichesBrands should make sure to actually provide such service to humanity or such ads would backfireRMT should be used to increase the resonance between ads and a contexts b audiencesEmpirically derived creative codes such as RMT should be used in marketing mix modeling and in other audience and outcomes measurement to ensure that the creative element is present in all equations where it is important to reduce unexplained varianceIn the end it39s not surprising that leaving out the creative element has reduced the accuracy of MMM TRA Apollo and Mars Catalyst found that 65 of sales is explained by creative the rest by mediapromotion Nielsen NCS latest analyses shows a slightly lower number for creative still over 50 Meg Blair39s RSC working with IRI sales data then again when Comscore owned RSC and Chuck Young39s work at Ameritest now part of Dynata for the QSR industry all these pioneers have used creative as inputs to MMM In the same timeframe when TRA and others were coming back with the 65 number Comscore working with RSC creative parameters plus the usual media variables explained 80 of the sales This 80 number is possibly the right target for the new pioneers who will first use MMM with creative plus media predictive variables RMT39s empirically derived creative codes will help maximize explained variance and minimize unexplained variance in salesClick the social buttons to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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ARF Cognition Council Analysis Finds RMT Creative Codes Explain 48% of Sales

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Bill Harvey

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ARF Cognition Council Analysis Finds RMT Creative Codes Explain 48% of Sales

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