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Advertising Effectiveness: Insights from Les Binet

Les Binet - advertising guru


We share with you today keynotes from a discussion between Nick Hague, interviewing on behalf of the World’s Greatest Business Thinkers, and Les Binet, an advertising guru. Until recently Les Binet was Head of Effectiveness at Adam & Eve DDB. At the end of 2024, after 37 years with DDB, he turned fulltime freelance, continuing to analyse and optimize marketing effectiveness, ensuring that advertising not only resonates but also drives meaningful business results.  For nearly four decades, Les’ work has focused on helping advertisers determine whether their campaigns are effective, understanding how they work—which is often more complex than it seems—and finding ways to enhance their impact.


Les’ views on changes in the ad industry


So, what changes has Les seen in the advertising industry over these 37 years? First of all he perceives that the advertising landscape has evolved significantly, particularly with the increasing complexity of the media mix and advancements in technology. However, despite these changes, many fundamental principles of marketing and advertising remain intact because human behaviour has not fundamentally shifted.


One noticeable change is the frequent turnover in marketing roles, leading to new leaders wanting to put their mark on campaigns. While some argue that marketing has become more short-term due to high CMO churn, Les challenges this claim. He points out that while figures often suggest CMOs have short tenures, there is little data to support the notion that churn has increased over time. Similarly, consumer loyalty has always been low, debunking the myth that loyalty has declined in recent years.


How data is shaping marketing strategies


A more pressing issue is how data availability has shaped marketing strategy. Previously, marketers worked with long-term, bi-monthly sales data, providing a broader perspective on brand performance. Today, reporting has become more frequent and granular, often focusing on short-term performance metrics. This shift means that marketers are bombarded with short-term data without the context of long-term trends, making it harder to see the bigger picture.


The dangers of short-termism


Short-term data drives short-term strategies. In earlier years, price promotions seemed ineffective because they were not visible in broad, less frequent reports. However, as reporting became more granular, short-term sales spikes from promotions became apparent, leading brands to invest heavily in them—often without understanding their limited long-term benefits.


The true challenge is not CMO churn or quarterly reporting but the way data is used. The rise of digital advertising further exacerbated short-term thinking, with brands prioritizing immediate activation over long-term brand building. However, Les Binet’s research with Peter Field in The Long and the Short of It helped shift this perception, providing a framework for balancing brand building and activation in an effective marketing strategy.


Effective advertising is a balance between short-term activation and long-term brand building. Les argues the need for both approaches to drive sustained business growth. He advocates for a 60-40 split, with 60% of efforts focused on brand building and 40% on activation, though this ratio may vary depending on the industry.


The Role of Creativity and Scale


Creativity is a crucial element in crafting emotionally resonant advertising campaigns. However, without sufficient scale, even the most creative ads may fail to reach a broad audience. Les underscores the importance of "emotion at scale," ensuring that advertising not only touches consumers emotionally but also reaches a large enough audience to make a meaningful impact.


Data and Measurement: Looking Beyond Short-Term Metrics


One of the common pitfalls in modern marketing is an over-reliance on short-term metrics such as clicks and likes. While these indicators can provide quick insights, they often lead to flawed ROI assessments. Les recommends econometric modelling as a more reliable method to understand marketing effectiveness. Additionally, he advocates for controlled experiments to test different marketing strategies and their true impact.


Brand Loyalty vs. Customer Penetration


A key insight from Les, supported by Ehrenberg-Bass research, is that expanding the customer base (penetration) is more important than solely improving brand loyalty. He argues that market share growth primarily comes from attracting new customers rather than deepening loyalty among existing ones.


The Link Between Pricing and Profitability


Marketing should not just drive sales volume; it should support pricing power. Les highlights that volume is a cost rather than a benefit and that profitability should always be the primary focus. Effective advertising enables brands to maintain healthy margins by strengthening their perceived value in the market.


B2B Marketing: Similar Principles, Slightly Different Focus

While B2B marketing follows many of the same principles as B2C marketing, it places slightly more emphasis on activation. However, emotional appeals remain just as important, as business decisions are ultimately made by people who are influenced by emotions.


Future Trends: The Importance of Timeless Principles

Les advises marketers to focus on fundamental marketing principles rather than chasing fleeting trends. He expresses scepticism about the growing obsession with short-term metrics and the influence of Silicon Valley on marketing practices. Instead, he urges businesses to concentrate on strategies that have stood the test of time.


Quickfire Insights from Les Binet

  • Best Business Advice: "Volume is a cost, not a benefit. Focus on profit, not just sales."

  • Future of Marketing Effectiveness: Prioritize timeless principles over chasing new trends.

  • US vs. Europe/ANZ in Marketing: Les agrees with Mark Ritson that the US lags behind due to an overemphasis on short-term metrics and a reluctance to adopt insights from other markets.


Conclusion

Les Binet’s insights highlight the importance of balancing creativity, scale, and data-driven decision-making in marketing. His emphasis on long-term brand building, emotional engagement, and pricing power provides a solid framework for achieving marketing effectiveness. By focusing on fundamental principles rather than fleeting trends, businesses can create impactful and sustainable marketing strategies.


 
 
 

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