The efficiency of online advertising (Andrew Felbert - Nielsen)


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The nature of online advertising allows us the chance to deeply understand performance but in the past we haven’t done a very good job of making these capabilities work for us. The Nielsen representatives will show us how we are able to understand the effectiveness of brand based advertising online and use this information to become more efficient, but this requires organizational and attitudinal change.

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The efficiency of online advertising (Andrew Felbert - Nielsen)

  1. 1. ADVANCES INADVERTISINGEFFECTIVENESS &EFFICIENCYAndrew FelbertCommercial Director, OnlineEmerging Markets, EMEA
  2. 2. Sometime ago… “Half the money I spend on advertising is wasted; the trouble is I don’t know which half” John Wanamaker US Department Store Merchant (1838-1922)
  3. 3. The Industry is open to change “We have endless data. We need help to find what information to look at, what is important and what is just noise” “It’s incredibly difficult to link performance to an actual ad to an actual behavior. We would invest more in media if we saw a direct pay off” “Media goals cannot be determined equally because there are not common metrics in TV, online, print. It’s imperative to “Advertising spend is like bowling: understand the relative after rolling the ball, you have to effectiveness across platforms” wait for the ball to go all the way to the end to learn if you striked. You are hand tied and can’t make any changes mid course and just wait” “There are too many players with different objectives. Creative or media agencies, traditional or digital agencies; coordination must happen”
  4. 4. Where do We Start? 1 Produce metrics that matter 2 Performance data that is fast, comprehensive and granular 3 Provide comparability across platforms 4 Improve ROI through campaign optimization 5 Ultimately, become a predictive virtuous cycle
  5. 5. Advertising Effectiveness SimplifiedEffectiveness principles are universal Reach Resonance Reaction R R R Reach the right Influence their Impact their people opinion behavior … So what has changed?
  6. 6. Multiple Methods for Data Integration to Improve The ROIof Your Media Investments are available today PANEL DATA SEGMENTATION MATCH FUSION HI Cost/Data Availability Spectrum LO PANELS 3rd PARTY CENSUS
  7. 7. Objective: Optimize all the steps inthe media planning cycle Media Media Post Buy Planning/ Optimization Analysis/ROI Allocation Plan Buy Measure Determine the optimal Identify the best TV Measure the GRP delivery share of budget to TV, programs, magazine of your media schedule, internet, magazines and and websites in and determine what other media, in terms of reaching the core programs delivered well maximizing exposure and which ones delivered consumers against core consumers poorly
  8. 8. Optimize audience delivery by focusing on betterplacements and high performing sites BEVERAGE Daily On-Target Delivery (OCR Masked Example) 41% Off  Target   On  Target   on target Off  Target   On Target  16%      16%     on  target   target   on   Daily Online Campaign Impressions
  9. 9. Optimize the effectiveness of the campaign byreallocating budget to top performing creatives Brand Lift on Awareness (CPG Example) 56% better 23.2 34.4 Original Optimized Source: Blinded Nielsen Online Campaign Ratings case
  10. 10. Determine actions to increase sales impactPurchases after Campaign 35% •  BG 5 Distribution of Brand X 30% •  Increase media 25% BG 4 delivery to most responsive 20% Groups •  BG 3 15% •  BG 8 •  Tailor Creative Messages to 10% High-Volume/Low 5% Responsive •  BG 1 •  BG 7 Groups •  BG 2 •  BG 9 0% •  BG 6 35% 0% 5% 10% 15% 20% 25% 30% Distribution of Brand X Ad Impressions
  11. 11. Summary… a lot has changed! •  3R Framework – simple, actionable, powerful •  Real-time digital optimization is a big opportunity •  Best results achieved by optimizing all key aspects of campaign •  Measure Reaction via offline sales impact