Mark Ritson talks the power of radio advertising and why marketing science is ‘shit’
Professor Mark Ritson doesn’t believe in scientific marketing. Thinks it’s “shit.” Which makes him an interesting choice to present a study that posits a rather scientific equation: that a simple 11% investment in radio advertising can double a campaign’s impact.
Well, it’s not quite that simple. There are caveats. But it leans on the only piece of scientific marketing that Professor Ritson, roundly considered one of the world’s leading marketing educators, thinks holds water: ESOV, or ‘excess share of voice’.
ESOV was identified by academic John Philip Jones in 1990, and basically posits that when a brand’s share of voice (percentage of ad spend within a category) exceeds its share of market, then the latter will grow at a reasonably predictable degree.
It amazes me that, after all this time, this gentleman’s foul mouth still fascinates Australian marketers.
There are some brands with radio as their favourite child – Frank Walker from National Tiles for one !
11% to double your effectiveness is the sort of random soundbite that the industry loves, especially when delivered by a credible frontman.
Graph 2 poses more questions than answers. Brand profit growth is the metric here to focus on … 1-2% percentage points higher max (and that is growth, not margin), long term market share growth seems lower for radio inclusive campaigns, short term growth has no difference … but then ‘retention’ is 3x the size so is acquisition.
If retention and aquisition are so much higher how come short term growth, long term growth, and profit growth are either negative or flat??
Asking on behalf of media agency ppl who will now be asked why radio isn’t 11% because Mark told them so. (and they don’t want him to name call them or say they’re sh*t/f*cked/terrible marketers even tho they did his course) [edited]
How does this equate with the growth in on demand audio? I know under 25yo’s who never listen to radio. Are podcasts and Spotify in the same category?