Golden rules tmre

1,095 views
953 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,095
On SlideShare
0
From Embeds
0
Number of Embeds
512
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Golden rules tmre

  1. 1. The Golden Rules of Measuring CPG Advertising Performance Confidential and Proprietary – Not for Public Distribution – Do Not Copy Client Logo Goes Here 1
  2. 2. An Introduction to Today’s Presenters Phil Ripperger, Vice President New Media Solutions, IRI IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action. Marc Ryan, Co-CEO, InsightExpress InsightExpress a leading provider of media analytics and marketing accountability solutions for brand marketers Confidential and Proprietary – Not for Public Distribution – Do Not Copy 2
  3. 3. Golden Rule: Frequency is crabgrass Confidential and Proprietary – Not for Public Distribution – Do Not Copy 3
  4. 4. “Frequency – contacting one consumer three times with a message, is not as good as reach – contacting three consumers once, because that one consumer will be far less likely to need that product than any of the other three.” - Erwin Ephron Confidential and Proprietary – Not for Public Distribution – Do Not Copy 4
  5. 5. Diminishing Returns on Upper Funnel • Upper funnel metrics move the most at a single exposure. 3.0% • Multiple exposures has less of a net benefit to the brand than does finding an unexposed viewer. Lift in Brand Awareness 2.0% 57% 54% 46% 1.0% 29% 7% 0.0% Confidential and Proprietary – Not for Public Distribution – Do Not Copy 5
  6. 6. Oversaturated Returns on Lower Funnel • Lower funnel metrics move sparingly at most frequency levels with the exception of the highest bounds. • Seeking out 16+ exposures may not be worth the expense vs. finding new viewers. Lift in Message Association 3.0% 2.0% 108% 69% 54% 1.0% 35% 0.0% Confidential and Proprietary – Not for Public Distribution – Do Not Copy 4% 6
  7. 7. Golden Rule: Measure the Multiple Return Objectives Confidential and Proprietary – Not for Public Distribution – Do Not Copy 7
  8. 8. Advertising is Multi-dimensional Confidential and Proprietary – Not for Public Distribution – Do Not Copy 8
  9. 9. Digital channels have disrupted consumer behavior and the traditional path-topurchase Opens Shopkick app and checks in Back to computer to check retailer ads Grabs phone to add baby items to shopping list app Consumer watches Beyonce video that one of her friends liked on Facebook at Target; excited to use coupons she printed when directed to Healthy Essentials website 7 5 9 3 8 1 6 4 2 Sees ad online while reading entertainment content Checks “Just for U” app for coupons; nothing relevant Completes list and chooses Purchase made from Target Cartwheel At back yard barbecue posts picture on Instagram “#PepsiNext rocks” because a pop-up appeared with a customized shopping list Confidential and Proprietary – Not for Public Distribution – Do Not Copy 9
  10. 10. Advertising Effect is Multi-dimensional The complete picture of how advertising works is not always apparent by isolating your measurement to one part of the Total ROI funnel. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 10
  11. 11. Peanut Butter Example Unaided Awareness 25.0% 23.4% 22.5% 23.3% 20.3% 20.0% 18.1% 16.1% 14.1% 15.0% 13.9% 14.6% 12.4% 12.8% 10.8% 10.0% 10.0% 7.1% 6.9% 5.0% 0.0% Control Online Print ONLY ONLY Radio ONLY TV ONLY Online Online Online TV + + TV + Print + Radio Print Confidential and Proprietary – Not for Public Distribution – Do Not Copy TV + Print + TV + Online Online Online Radio Radio Print + + TV + + TV + + TV + Radio Print Radio Radio + Print 11
  12. 12. Peanut Butter Example Dollars/Household ROI Calculation Δ = 0.13 $0.13 / household 15,354,298 households $1,966,059 sold $2,116,500 media cost $0.94 ROI $1.03 $1.16 Un-Exposed Exposed Penetration Occasions +23% Confidential and Proprietary – Not for Public Distribution – Do Not Copy Dollars/Occasion -7.1% 12
  13. 13. Golden Rule: Choose the Right Measuring Stick Confidential and Proprietary – Not for Public Distribution – Do Not Copy 13
  14. 14. Single Source vs. Models Single Source Measurement Modeled Measurement • Pros: • Pros: •All media and sales effect attributable at a viewer level – no guessing. •Most media and behavior can be incorporated. •Quick turnaround on results and data. •Few restrictions on what brands or media are measurable. •Incorporates attitudinal measures. • Cons: • Cons: •Not all media or behavior is measureable at viewer level. •Sample size constraints. •Few intra-media effects. •Long turnaround times. •Doesn’t account for attitudinal results. •Requires assumptions. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 14
  15. 15. Modeled Measurement - Example Matched Market Measurement Modeling is appropriate for determining sales lift: • • • • • Hispanic Search Behavior Consumables Alcohol Outdoor • Brands saw positive volume sales lifts in markets where they increased search support, ranging from 1.0% to 4.2%, with the average impact 3.1% • Brands saw an average decline of -1.3% to volume sales in markets where search was dark. Volume % Changes by Treatment – All 4 Brands Dark Heavy Up Search Confidential and Proprietary – Not for Public Distribution – Do Not Copy 15
  16. 16. Single Source Measurement – Example: Targeting & ROI Client Context and Objective Results over 12 weeks • Long-standing food client introduced a product extension within a very popular, health-oriented category • Objective: increase household penetration without cannibalizing sales within the brand portfolio 6% increase in the household penetration Solution 30% increase in occasions among exposed targeted households • The IRI household panel was used to identify new brand buyers with a high propensity to purchase the new product by identifying buyers of: – Similar products from competitive brands – Products with similar properties within the client’s brand – Products with similar properties among competitor brands • Look-alike modeling was used to translate target consumers from the IRI panel to the media partner’s database • IRI’s panel’s purchase data was used to measure sales results post-campaign, evaluate ROAS 4.9% 5.2% Household Penetration 1.15 1.50 Occasions 30% increase in the average dollar spend per exposed buying household $0.27 $0.35 Dollars/Household Targeted Households Confidential and Proprietary – Not for Public Distribution – Do Not Copy Control Group 16
  17. 17. Golden Rule: Creative & Media Confidential and Proprietary – Not for Public Distribution – Do Not Copy 17
  18. 18. Creative’s effect on performance Creative 75% 25% Media Confidential and Proprietary – Not for Public Distribution – Do Not Copy 18
  19. 19. Case Study: Frozen Pizza • Campaign Summary • Initial, directional results are positive • Dollars per household are up 13.3%, penetration was up 17.5% offset a small decrease in occasions vs. the control. • Creative Performance •“Soccer” only creative clearly outperformed Creative Interim Period - Index to Total Targeted Dollars/HH Penetration Occasions $ per Occasion Buyer Count # IRI HHs Exposed 44047 - Soccer (Only) 148 140 103 103 81 626 44049 - 14 Min (Only) 72 90 88 92 58 644 119 134 88 101 69 647 44051 - Obstacle (Only) Confidential and Proprietary – Not for Public Distribution – Do Not Copy 19
  20. 20. Creative Guidelines • Keep it simple: • Clutter within an ad often results in poor brand performance. This happen with competing messages in smaller ad units, or a convoluted storyline in storyline ad units (video & online display). • Logo size & presence is important: • For static imagery Logos should be larger than 14% or the total image size. Having the logo present and viewable in as many frames of a storyline ad unit (video & online display) greatly increases top of funnel performance. • Ad size is important: • For static imagery, the advertisements size relates to brand impact. The larger the percentage of the media devoted to imagery, the greater the chance of success. • Human faces draw our attention: • Leverage our built in gaze detection systems. Advertising with the presence of a human face performs better than without. Faces also add an element of relatability. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 20
  21. 21. Golden Rule: Choose The Right Metrics Confidential and Proprietary – Not for Public Distribution – Do Not Copy 21
  22. 22. Metric Saturation • For large brands many metrics reach a saturation point: Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Awareness: 1% to 58% Awareness: 59% to 79% Awareness: 80% to 91% Awareness: 92% to 95% Awareness: 96% to 99% Average Increase: 6.0% Average Increase: 3.9% Average Increase: 3.0% Average Increase: 0.7% Average Increase: 0.4% Confidential and Proprietary – Not for Public Distribution – Do Not Copy 22
  23. 23. Customer Success: ROI IRI’s analysis of OTC Allergy medication digital campaign helped quantify impact of various digital campaign tactics Client Situation Results • Client/agency team wanted to induce product trial and usage occasions among allergy sufferers. • A digital campaign was launched across healthoriented and reach-based sites to reach potential buyers • +13% in dollar sales, +6% increase in HH penetration and usage occasions • 1 point category share decline for major competitor • $1.15 ROI 9.3% 5.8% Solution • IRI’s panel’s used to measure sales results postcampaign, evaluate ROI and prove the efficacy of digital ads. • Measure household penetration and usage occasion changes post-digital campaign to determine sales impact • Analyze share changes differences between test branc and competitive brands to understand sales shifts due to advertising exposure HH Penetration 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% 1.3% 1.9% New Retained -1.4% Confidential and Proprietary – Not for Public Distribution – Do Not Copy -1.8% Lapsed Brand NonBuyers Changes in buyer type 23
  24. 24. Golden Rule: Don’t forget the Purchase Cycle Confidential and Proprietary – Not for Public Distribution – Do Not Copy 24
  25. 25. Measure Now vs. Later Sales Sales Sales Sales Sales Pre-Campaign Sales Sales Campaign Audience Consideration Sales Sales Post Campaign Sales Measurement Brand Confidential and Proprietary – Not for Public Distribution – Do Not Copy 25
  26. 26. Golden Rule: Social is not Social Confidential and Proprietary – Not for Public Distribution – Do Not Copy 26
  27. 27. Offline Beer Sales Spikes Correlate to Key Social Moments • Beer brand baseline sales (in blue) demonstrate impact from typical advertising and in-store activity. Green spikes demonstrate impact directly from social media activity… above and beyond typical communications. These sales spikes correspond to the four social media events. Beer Baseline Sales Model Fit Confidential and Proprietary – Not for Public Distribution – Do Not Copy 27
  28. 28. Golden Rule: Native Advertising Is King Confidential and Proprietary – Not for Public Distribution – Do Not Copy 28
  29. 29. Back to the future on sponsorships TV’s first advertisements were all sponsorships where the commercial content was embedded in the program: Confidential and Proprietary – Not for Public Distribution – Do Not Copy 29
  30. 30. What is Native Advertising Banner Lower Tourist Resident Citizen Advertising Effect Confidential and Proprietary – Not for Public Distribution – Do Not Copy Native Higher 30
  31. 31. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 31
  32. 32. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 32
  33. 33. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 33
  34. 34. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 34
  35. 35. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 35
  36. 36. Paid Ads Sponsored Paid Ads Confidential and Proprietary – Not for Public Distribution – Do Not Copy 36
  37. 37. Native? Confidential and Proprietary – Not for Public Distribution – Do Not Copy 37
  38. 38. Summary • Optimize Frequency for Single Exposures: • Multiple exposures providing diminishing returns, as such an advertiser is always better off seeking an unexposed individual. • Measure the Multiple Return Objectives of Advertising: • Ever ad performs differently at each of the levels of the Total ROI funnel. Bias towards comprehensive measurement or you may have misleading conclusions. • Choose the Right Tool for the Job: • Not all advertising can be measured most effectively via models, similarly not all can be effectively measured by single source data. • Measure Both Creative & Media: • Creative is the most important aspect of the media plan and often the least understood. Always measure both to fully understand campaign impact. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 38
  39. 39. Summary • Choose the Right Metrics: • Saturation can result in some metrics being less useful than others. Pick the metrics that matter for the size of the brand. • Not all Measurement Needs to Happen in Real Time: • In particular, sales effect is greatly influenced by purchase cycles. Measure at an appropriate interval to see the effect on the metric under measurement. • Understand Earned vs. Organic Social Media: • Social media is rarely social these days, it’s another broadcast medium. Understand the appropriate metrics to gauge the earning potential of your media activities. • Push the Creative Boundaries: • Native advertising is more impactful than typical creative types. Explore emerging Native platforms to scale media efforts with less overhead. Confidential and Proprietary – Not for Public Distribution – Do Not Copy 39
  40. 40. Thank You. Any Questions? Phil Ripperger Marc Ryan VP New Media Solutions Co-CEO IRI InsightExpress (203) 845-6471 (203) 406-3220 phil.ripperger@IRIWorldwide.com mryan@insightexpress.com Confidential and Proprietary – Not for Public Distribution – Do Not Copy 40

×