On Strategy Showcase – Episode Summary: Debuting the U.S. Version of The Long & the Short of It

Podcast Information

• Title: On Strategy Showcase
• Host: Fergus O’Carroll
• Episode Title: Debuting the U.S. version of The Long & the Short of It
• Release Date: April 12, 2025
• Description: Where marketers tell the stories behind the strategies that led to amazing campaigns.

Introduction

In this episode of On Strategy Showcase, host Fergus O’Carroll welcomes listeners to an in-depth discussion about the debut of the U.S. version of The Long & the Short of It. The episode primarily revolves around a new report from WARC titled "Multiplier Effect", presented by David Tiltman, Chief Content Officer at WARC and SVP Content for Alliance Intelligence.

The Multiplier Effect Report

David Tiltman opens the conversation by explaining the motivation behind the Multiplier Effect report. He emphasizes the need for a U.S.-centric analysis of the interplay between brand building and performance marketing, a topic extensively explored in the original UK-based The Long & the Short of It.

David Tiltman [00:57]: "What we're trying to encourage is this mindset that an investment in brand is an investment in performance."

Key Highlights of the Report:

• Integration of Brand and Performance: The report underscores that brand and performance marketing are complementary, not mutually exclusive. Investment in brand enhances performance outcomes, a critical insight for U.S. marketers grappling with the high costs and diminishing returns of purely performance-driven strategies.

• Data-Driven Insights: Leveraging original American data, the report provides tools, insights, and a robust business case to advocate for a balanced marketing approach.

David Tiltman [03:44]: "We realized people like Scott Galloway, this isn't a new thing. But Scott Galloway been talking to a few years about the death of the brand era."

Addressing the "Death of Brand" Narrative

Fergus brings up Scott Galloway's assertion about the demise of the brand era, prompting David to clarify and counter this viewpoint.

David Tiltman [07:27]: "If you take a parity product, wrap it in a bunch of lifestyle associations and sell it for a price premium… it's no longer as significant a lever of growth as things like supply chain innovation and product development."

David argues that Galloway misconstrues the essence of brand building, reducing it to mere lifestyle associations detached from tangible product value. He stresses the need for a 21st-century case for brand building that aligns with modern marketing dynamics.

The 95.5 Rule and the Two Jobs of Advertising

A pivotal concept discussed is the 95.5 Rule, derived from B2B insights by the Ehrenberg Bass Institute and LinkedIn, which posits that only about 5% of potential customers are in-market at any given time.

David Tiltman [16:00]: "Advertising needs to do two jobs: reach those in-market for immediate conversions and build brand equity to influence the remaining 95.5% over time."

Two Primary Functions of Advertising:

1. Performance Advertising: Targets the in-market 5%, focusing on immediate conversions through highly targeted, transactional messaging.
2. Brand Building: Engages the out-of-market 95.5%, fostering long-term brand associations and preferences that incrementally influence purchasing decisions when consumers enter the market.

Fergus O’Carroll [18:03]: "If you're preparing, you can't sell somebody who's not in. It's pointless waste to be selling a product to somebody who's not in market."

Synergy Between Brand and Performance Marketing

The discussion delves into the "Multiplier Effect", highlighting how synergistic investment in both brand and performance leads to significantly higher returns compared to a performance-only approach.

David Tiltman [21:33]: "A combined strategy of performance advertising and brand equity led advertising delivers an uplift in revenue ROI by between 25% to 100%, with a median uplift of 90%."

Conversely, abandoning brand investment in favor of a performance-dominated strategy results in a median revenue ROI decline of 40%.

Case Studies Highlighted:

• Instacart: Demonstrated reduced customer acquisition costs through integrated brand advertising.
• Dude Wipes & Chubby’s (USDTC Clothing): Showcased significant efficiency improvements in performance marketing when coupled with robust brand strategies.

David Tiltman [24:32]: "There's a section in the report called the multiplier effect… It actually has a knock-on effect on performance metrics."

Branded Performance Advertising

Fergus introduces the concept of "Branded Performance"—campaigns designed to achieve both transactional performance and brand-building objectives simultaneously, citing examples like GEICO and McDonald's.

Fergus O’Carroll [30:03]: "Branded performance, it's the idea of executions that can do both… McDonald's is a great idea of this."

David concurs, emphasizing that effective brand advertising inherently drives sales while also cultivating brand equity.

David Tiltman [31:16]: "A really good brand advertising campaign should drive sales. The question is whether if you add an extra layer of techniques onto that, could you make the impact of that even harder, so even greater?"

Practical Implications and Strategic Recommendations

The Multiplier Effect report not only identifies the synergy between brand and performance but also provides strategic guidance on:

1. Campaign Development: Crafting ideas that serve both immediate and long-term goals.
2. Budgeting: Allocating resources effectively to balance brand and performance investments.
3. Measurement: Adopting metrics that capture the intertwined impact of brand and performance initiatives.

David Tiltman [28:30]: "If you think about who brand style advertising tends to reach, it's reaching across people who are both in market and out of market."

Fergus encourages listeners to utilize the report's insights to advocate for balanced marketing strategies within their organizations, highlighting the critical role of robust internal advocacy to prevent brand budgets from being the first to face cuts during financial pressures.

Conclusion

Fergus wraps up the episode by reiterating the value of the Multiplier Effect report and encouraging listeners to access it via warc.com. He emphasizes the importance of integrating brand and performance strategies to achieve superior marketing outcomes.

Fergus O’Carroll [33:37]: "Don't also forget that work advisory is there… David, thank you so much, man. I appreciate having you on the show again and as always, it's a real pleasure."

Final Thoughts: The episode serves as a comprehensive guide for marketers seeking to navigate the complexities of modern advertising. It underscores the indispensable value of combining brand and performance marketing to drive sustained business growth.

Access the Report: For a deeper dive into the Multiplier Effect report and to download it, visit warc.com.