Is advertising getting better? Zappi Releases First Annual ‘State of Creative Effectiveness’ Report

The leading consumer insights platform used data from more than 2,300 ads and nearly one million US consumers across four years to answer the question: Is advertising getting better? Findings reveal empathy drove ad effectiveness in the pandemic, but declined as inflation took hold. Now advertising is in bounce back mode.

Zappi, the market research platform for consumer-centric ad and product development, today released its first annual State of Creative Effectiveness* report.

Effective advertising happens when marketers understand their consumers and create work that connects the brand to their needs. Those don’t know their audience may just be wasting precious marketing budgets on ineffective advertising that misses the mark, –Steve Phillips, CEO and co-founder of Zappi

The report was developed from Zappi data on more than 2,300 ads from B2C brands and nearly one million U.S. consumers between 2019 and 2023. It examines advertising’s effectiveness through the COVID-19 pandemic and subsequent period of rising inflation, and now offers a mid-year update for 2023. Zappi found that creative effectiveness in 2023 has rebounded from a disappointing 2022, and is set to outperform pre-pandemic advertising, according to its consumer testing.

“As Cannes kicks off – one of the year’s most important gatherings of the creative community – we wanted to put the industry under the microscope to find out if advertising is getting any better,” said Steve Phillips, CEO of Zappi. “The good news is that our data shows creative effectiveness is trending upward in 2023. But this positive momentum is merely offsetting what was a down year in 2022. Our data shows that while advertisers mobilized quickly to reach consumers with empathetic messages during the pandemic, they missed that same connection as inflation peaked. Effective advertising happens when marketers understand their consumers and create work that connects the brand to their needs. Those don’t know their audience may just be wasting precious marketing budgets on ineffective advertising that misses the mark.”

Marketing Technology News: MarTech Interview with Gregg Johnson, CEO at Invoca

The State of Creative Effectiveness report seeks to understand what drives advertising effectiveness at specific moments in time. In a challenging environment, marketers need to build communications that reach consumers with distinctive messages, cut through the clutter, make a lasting impression by resonating with them, and incite a strong response to drive consideration.

Key findings from the report:

• Empathy drove effectiveness in the ‘pandemic-era’ and marketers saw huge bottom-line gains from emotionally charged ads: Amid the unprecedented changes to consumers’ ways of working and living during the COVID-19 pandemic, brands saw strong ad performance by leaning into messages of empathy. Ads during this period scored 17.5% better in emotional appeal than pre-pandemic ads, which led in part to a massive 32% boost to purchase uplift. Despite strong gains in emotional resonance and response, brand recall declined 5.6% from pre-pandemic levels as it became harder to stand out in the crowd.
• Inflation era advertising was less effective – failing to match changing consumer behavior: While marketers achieved strong advertising performance through the pandemic by quickly adapting, inflation impacted consumers more gradually. In July 2021, creative effectiveness declined 2%, along with important indicators of high-performing advertising, such as purchase uplift (-7%) and emotional intensity (-4.5%). This less emotive advertising didn’t resonate with consumers who had begun burning through their pandemic savings to counter rising costs.
• Creative effectiveness in 2023 is recovering and out-performing pre-pandemic averages: Almost across the board, effectiveness metrics in 2023 are outpacing averages from the previous year. Brand appeal – an assessment of how an ad made the consumer feel – increased 8% from 2022, meaning that brands have identified the topics and trends that move consumer perceptions. Meanwhile, advertising in 2023 is causing consumers to feel again. Emotional intensity improved 7% from 2022, although it is still slightly lower than the pandemic peak of emotionally charged messaging. Finally, we saw a 5% improvement in purchase uplift, as advertising regained some ground on the pandemic era.

Marketing Technology News: Conscious Brands: Walking the Talk of LGBTQ+ Support Beyond Pride Month