Return on recall p14 nl cover

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  • 1.  
  • 2. Recall is an important indicator as it often correlated with efficiency Recalling an ad is considered a necessary (but not sufficient) condition for further effectiveness Recall Millward Brown identifies a clear-cut relation between highly recalled campaigns and their subsequent sales effectiveness
  • 3. The Beta ( β ) coefficient is an accepted measure to assess recall of a media Developped in the 70’s by A. Morgensztern Beta = probability of recalling a given ad after 1 contact, based on post-tests Beta coefficient What is this ? Forecasts the « recalling power » of a media ‘ beta’ measures exists for different media: impact comparison possible Benchmark Why is it used ?
  • 4. Establishing a « beta » value for Direct Mail
    • DM Barometer
    • Standardised « post test methodology »
    • Runs since 2008
    • Market survey company: Market Probe
    • Belgian Media Agency
    • Expertise in Media survey
    • Validation on survey methodology and « beta » calculation
    Bpost business ( β ) of Direct Mail
  • 5. Establishing a beta value* for DM Average DM beta value = 67,4% out of 89 B2C cases Invidividual B2C campaign recall % * « Business to consumer » value
  • 6. Establishing a beta value for DM Average DM beta value = 67,4% out of 89 cases (DM Barometer post-tests, B2C) After one DM campaign 2 out of 3 exposed consumers are likely to recall the advertised brand
  • 7. Beta value* per category Campaign recall % per category Avg= 67,4% * « Business to consumer » value
  • 8. Beta value* per DB type Avg= 67,4% Campaign recall % per type database * « Business to consumer » value (= prospection) (= loyalty, upgrade; prospection on own data)
  • 9. DM = second best beta value !!!!! Medium Format Avg beta value Cinema 30" 0,700 DM DM shot 0,674 TV 30" 0,220 Newspapers 1/4 p 0,200 Magazines 1/1 p FC 0,210 Internet Banner 0,110 Radio 30" 0,070 Outdoor 2 m² 0,041 8 m² 0,058 16 m² 0,085 20 m² 0,079 21 m² 0,123 36 m² 0,182 38 m² 0,184
  • 10. What does the beta learn us ?
    • Direct Mail is a highly impactfull media: on average 2 out of 3 people will recall your message
    • It’s the second most performing media in terms of recall
    • It makes the audience really ‘captive’, almost as much as cinema
  • 11. From recall to Beta coefficient Developped in the 70’s by A. Morgensztern Beta = probability of recalling a given ad after 1 contact, reconstructed, based on post-tests Beta coefficient Recall after 1 contact determines recall after « n » contacts Beta may be used as a model parameter for recall building and decay Source:
  • 12. How beta determines subsequent effectiveness 1st contact 2 nd contact 3 rd contact 10% 90% 10% + 9% 81% 10% + 9%+ 8% 73% Recall Do not recall Source: Beta coefficient
  • 13. Beta = source for modelling recall Recall build-in End active period
  • 14. From campaign to medium Principally, each campaign has its own strength (= beta). As a forecasting tool average beta value is often derived per medium Average beta per medium + It allows intermedia comparisons (see further) - Not every campaign has the « average » Impact value Source:
  • 15. BETA DM: assumptions Average beta coefficient DM Based on recall as given by the post campaign measurements * Frequency considered equal to 1 * No decay factored since the first exposure * Averaged across target groups * Same assumptions as in France (see further) Source:
  • 16. BETA DM based on an impact questionnaire Recall DM - spont Aided Recall DM: product category Aided Recall DM: DM description Opening (Y/N)? Recall content (describe) Yes No Evaluation (score on 7 points scale) Liking, convincing, inciting, relevant for me, original, interesting, informative, give a positive image of the brand, increases knowledge on brand Aided Recall DM: Brand prompted Action taken (will go to the shop, call, use coupon,…) Intention to buy (score 5 points scale) Reading type : open not read, partially, normally, completely Use DM after reading - thrown away, kept, given to someone else - Information discussed or seen by others: Y/N Action after reception Thrown away, kept for reading later, given to someone else Demographics: Age, social class, language Brand awareness category (spont.) Base for beta coeff.
  • 17. In France also DM second best in beta value * Source: OMG Source: Medium Belgium France * Format Avg beta value Format Avg beta value Cinema 30" 0,70 « Average format » 0,75 DM DM shot 0,67 DM shot 0,59 TV 30" 0,22 30 0,17 Newspapers 1/4 p 0,20 ¼ p FC 0,12 Magazines 1/1 p FC 0,21 1/1 p FC 0,10 Internet Banner 0,11 « Average format » 0,11 Radio 30" 0,07 30 0,05 Outdoor 2 m² 0,04 Street furniture 0,01 8 m² 0,06 16 m² 0,09 4 X 3 0,06 20 m² 0,08 21 m² 0,12 36 m² 0,18 38 m² 0,18