Progressive ads drive higher sales growth

Progressive advertising outperforms on key metrics such as pricing power, customer loyalty, and both short- and long-term sales growth, according to a study by the Unstereotype Alliance, unveiled at the 2024 Cannes Lions International Festival of Creativity.

The Unstereotype Alliance, led by UN Women, conducted this analysis with researchers Dr. Felipe Thomaz and Professor Andrew Stephen from Oxford University's Saïd Business School. The data was provided by brand owners including Bayer Consumer Healthcare, Diageo, Mars, Mondelēz International, and Unilever, all members of the Unstereotype Alliance. Data from Kantar, also a member, was utilized as well.
Progressive advertising, which promotes inclusivity and diversity, has recently faced backlash from some consumers. This study provides robust evidence to support the strategy, helping brands persuade their executive teams to maintain this approach despite potential crises.
Key Findings:

The study analyzed advertising and sales data for 392 brands across 58 markets over a four-year period from 2020 to 2023. The results were compelling:

Short-term Sales: Brands leading in progressive advertising saw a +3.46% higher short-term sales lift compared to other brands.
Long-term Sales: These brands achieved a +16.26% increase in long-term sales over one to two years.
Pricing Power: Progressive advertising leaders outperformed by +52%.
Purchase Consideration: The comparative score for purchase consideration was +43%.
Customer Loyalty: Loyalty improved by +29%.
Brand Perception: Brands were perceived as +9.8% more “meaningful” and +11.8% more “different.”

“We see this as very, very strong evidence across the world, across major brands – and some really big advertisers – that you can achieve positive commercial sales returns with more progressive advertising,” Professor Stephen told the Cannes Lions delegates.
Methodology

To assess the progressiveness of the ads, the Gender Unstereotype Metric, which evaluates portrayals of female and male characters, was used for ads from Diageo, Mondelēz, and Unilever (measured by Kantar), and for Bayer Consumer Healthcare (measured by Metrixlab). Mars utilized the Geena Davis Institute’s GDIQ gender representation metric over time. The study evaluated brand equity using data from Kantar and sales data from participating companies, Nielsen, and Kantar Worldpanel.
(Image by Danilo Fernando Braga Geraldo from Pixabay)