Share of Voice
Share of voice, a function of media investment, is the relative share of media weight for a given brand.
ESOV (Effective Share of Voice) = Share of Voice - Market Share
"Average of 0.5% points of market share growth can be expected per 10% points of ESOV" — [[The Long and Short of it.pdf]]
"A +10% share of voice increase can deliver reductions in price sensitivity of 5-20%" — [[The Long and Short of it.pdf]]
"ESOV linked to higher long-term market share growth, short-term sales response, strengthening pricing, new customer acquisition, customer retention, and profit growth" — Les Binet and Karen Nelson-Field
Peter Field showed new evidence that this relationship is under serious strain. The correlation between ESOV and brand growth has weakened drastically over the last decade, and even more worryingly the level of “bang for your buck” each unit of investment returns has also collapsed. (via System1 Group)
"As spend increases the scale of the advertising effect does too, but this effect experiences diminishing returns... As a channel hits diminishing returns, the ROI gradually reduces. This is because ROI is the ratio between spend and sales. As each pound generates slightly less than the one before, this ratio drops the higher the spend although you drive more sales. We can use this ratio to work out the saturation point for each channel – the last point where every pound spent in a channel generates at least £1 profit" — Profit Ability 2, The New Business Case for Advertising
"Cutting advertising support eroded pricing premium vs. private label, and, over time, means less money coming in (way more than the savings in ad spend)" — Marketing's impact on pricing
"When consumers are very emotionally involved, advertising works harder, increasing ESOV Efficiency. But rational consideration actually inhibits the effects of advertising... Growth is harder to achieve in more rational categories" — Effectiveness in Context
"For the same level of market-share growth p.a. subscription brands need only invest in half as much ESOV as series brands" — Effectiveness in Context
"As you spend more on advertising, it often gets more effective (sales and profits generated go up), but less efficient (ROI goes down)"