Tuesday, June 27, 2023

Cumulus Insights Examines The Key To Revenue And Profit Growth


This week’s Cumulus Media | Westwood One Audio Active Group® blog looks at the two most important jobs of an advertiser: Converting existing demand and creating future demand. 

It includes research and insights from marketing and industry thought leaders Jon Lombardo, James Hurman, WARC, Les Binet, Peter Field, the Ehrenberg-Bass Institute of Marketing Science, Dan White, and Gain Theory.



Key takeaways:



  • Convert existing demand is like picking a small number of ripe apples; creating future demand is akin to planting apples trees and waiting six to nine months for the new trees to bear fruit
  • Converting existing demand and creating future demand require different creative/copy approaches and different media strategies
  • Converting existing demand has short-term impact but little long-term benefit
  • Creating future demand creates sustained long-term sales and profit growth
  • Auto intenders: only 3% are in-market for a new vehicle; sales-event ads only work on the small group who are ready to buy
  • When a business stops creating future-demand advertising: at first, there’s a false sense of security as sales maintain; then, the bottom drops out
  • Firing on all cylinders: When a business consistently uses brand building to create future demand and sales events to convert existing demand, great things happen
  • Creating future demand by building positive memories creates strong brands: Companies with strong brands sell more at every price point
  • Strong brands drive much more sales volume at better prices
  • Creating future demand creates memories and memories generate sales; Clicks don’t generate sales

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