ROI in a Fragmented Media World

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This presentation on channel planning ROI is being given today April 27, 2010 at the ABA ROI Conference in Sao Paulo by Pointlogic co-founder and CEO.

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ROI in a Fragmented Media World

  1. 1. ROI in a fragmented media world ABA ROI Conference April 27, 2010 Peter Kloprogge
  2. 2. Media planning: then and now <ul><li>Then: How do I use media to optimize the reach and frequency in my target audience? </li></ul><ul><ul><li>Television’s contribution was to deliver 75% at 2+. </li></ul></ul><ul><li>Now: How do I use media to influence the behavior of consumers? </li></ul><ul><ul><li>Television’s contribution was to increase awareness with 10% and to increase sales with 1.5%. </li></ul></ul>
  3. 3. Coupons or Price message?
  4. 4. Outdoor or Happy message
  5. 5. Television of Healthy message
  6. 6. Media or message? Modeling could show a 1.5% effect due to television Coupons Outdoor TV Price / snack Happy / fun Healthy 1.5%
  7. 7. Media or message? Or should this be contributed to the “Healthy” message? Coupons Outdoor TV Price / snack Happy / fun Healthy 1.5% 1.5%
  8. 8. Media or message? Media mix Message mix Coupons Outdoor TV Price / snack Happy / fun Healthy 1.5% 1.5%
  9. 10. Three generations of optimization Optimize Reach & Frequency Optimize ‘ Ability to influence’
  10. 11. We’re launching Compose Brazil!
  11. 12. Scope of Compose: The survey <ul><li>Research partner: Ipsos </li></ul><ul><li>National sample of 2000 respondents </li></ul><ul><ul><li>1300 interviews were conducted face-to-face </li></ul></ul><ul><ul><li>700 interviews online </li></ul></ul><ul><li>Universe </li></ul><ul><ul><li>Class A, B and C </li></ul></ul><ul><ul><li>Age 15-64 </li></ul></ul><ul><ul><li>9 Markets: Grande São Paulo, Grande Rio de Janeiro, Grande Porto Alegre, Grande Curitiba, Grande Belo Horizonte, Grande Salvador, Grande Recife, Grande Fortaleza, Grande Brasília </li></ul></ul>
  12. 13. Scope of Compose: around 30 channels Televisão Indicação de amigos, colegas, parentes Canal de Vendas na TV 'Outdoors' TV participação com celebridades Aeroporto Exposição de produto Transporte público Rádio Propaganda dentro das lojas Propaganda na Internet Jornais Sites de busca Revistas Site da web da companhia / fabricante Mala direta Redes sociais online (ex: Orkut) Revistas feitas por lojas ou marcas Portais online (ex. UOL) Encartes soltos E-mail de mala direta Celular: sms, torpedos Patrocínio de times esportivos Cinema Patrocínio de grandes eventos esportivos Amostras grátis de produtos
  13. 14. Scope of Compose: 8 drivers Preços Informações detalhadas Qualidade Influenciar meus sentimentos Passar status Conhecer pela primeira vez Motivar uma conversa Buscar informações
  14. 15. Scope of Compose: around 40 product categories Cerveja, vinho ou bebida destilada Comprou calçados Apólices de Seguros Xícara de bebida quente Comprou produtos de tratamento para cabelo ou pele Outros produtos financeiros Refrigerante ou água mineral (garrafa/galão) Comprou produtos de papel para uso doméstico (ex: rolo de papel de cozinha, guardanapos de papel) Comprou serviços educativos/auxílio de aprendizagem (cursos, livros ou revistas educativas) Leite Comprou produtos de higiene Frequentou algum evento esportivo (ex: jogo de futebol) Comprou doces, sorvetes, bolachas e outras sobremesas Plano de serviço com operadora de celular (pós pago, pré pago) Foi ao cinema Comprou comida pronta, enlatada ou congelada Provedor de serviços de acesso a Internet Alugou/comprou DVDs/vídeos Comprou lanches Comprou aparelhos eletrônicos (ex: TV, aparelho de som estéreo, tocador de mp3, computadores) Comprou brinquedos e jogos Veículos (carros, motocicletas, caminhonetes) Telefone Celular (aparelho convencional, blackberry, Iphone) Foi em restaurantes Comprou passagens aéreas (uso pessoal para lazer) Acessou alguma loja virtual na internet Comprou produtos de limpeza doméstica Comprou combustível (gasolina, álcool, diesel) ou óleo de motor Cartões de Crédito Eletrodomésticos e equipamentos de limpeza (ex: geladeira, aspirador de pó) Comprou cosméticos Contas Bancárias Foi em algum hipermercado (ex: Extra, Carrefour, Wall-Mart) Comprou jóias/relógios Financiamentos Foi em algum supermercado ou farmácia Comprou roupas
  15. 16. The ability of media to influence © Pointlogic / Compose Brazil 2010
  16. 17. The ability of media to influence © Pointlogic / Compose Brazil 2010
  17. 18. The ability of media to influence © Pointlogic / Compose Brazil 2010
  18. 19. The ability of media to influence © Pointlogic / Compose Brazil 2010
  19. 20. What’s important to consumers © Pointlogic / Compose Brazil 2010
  20. 21. Compose Case Study Using Compose USA 2010
  21. 23. Product category
  22. 24. Consumer tasks
  23. 25. Ranking Price
  24. 26. Overall ranking
  25. 28. Optimized plan
  26. 29. Last Year’s Plan
  27. 30. Optimized
  28. 31. Reach versus influential reach © Pointlogic / Compose USA 2010 The mixed media plan is based on 50% TV, 30% Newspapers and 20% Radio
  29. 32. Three generations Optimize Reach & Frequency Optimize ‘ Ability to influence’ Optimize Brand ROI
  30. 33. Optimize Brand ROI <ul><li>With Compose we have a consumer centric tool to optimize the media mix based on its ability to influence your KPI’s </li></ul><ul><li>However, Compose doesn’t provide an ROI projection based on a communication plan </li></ul><ul><li>Some clients need a clear ROI projection or need to manage ROI for other purposes </li></ul>
  31. 34. Managing ROI The six ingredients you need to cover
  32. 35. 1 How will brand perceptions affect market share?
  33. 36. How will brand perceptions affect market share? What is important to consumers? What is their perception of your brand? What are they hearing and where? Which brands are they buying? We need to know what consumers think of your brand and your competitors We need to know which purchase stimulators sells in your category Mathematical models link the perceptions to brand preference We need to know where consumers see you and what they’re hearing
  34. 37. Validation with automotive <ul><li>The M3 model using these metrics explained Most Likely to Purchase (MLTP) with 94% accuracy </li></ul><ul><li>MLTP has a greater than 90% correlation with current levels of market share </li></ul><ul><li>CONCLUSION: WE KNOW HOW PERCEPTION CHANGES INFLUENCE BEHAVIOR! </li></ul>
  35. 39. 2 How to brief creative and media based on brand strategy?
  36. 40. Consumer centric approach to the brand’s landscape What happens when what‘s important changes?
  37. 41. Consumer centric approach to the brand’s landscape What happens when brand perceptions change?
  38. 42. Consumer centric approach to the media landscape
  39. 43. The results can be used to create first media plans
  40. 44. Optimizing the upper funnel The results can be used to create first media plans
  41. 45. The results can be used to create first media plans Optimizing the lower funnel
  42. 46. 3 How will creative + channel influence perceptions?
  43. 47. Campaign testing <ul><li>Using our partner OTX (recently acquired by Ipsos), we recommend testing creative copy within the setting of the overall campaign using MediaCEP™ </li></ul><ul><li>Core properties of MediaCEP™: </li></ul><ul><li>The method measures cognitive and emotive power of ads. The combination is what makes an ad powerful: </li></ul><ul><ul><li>Only cognitive power: I hear what you’re saying </li></ul></ul><ul><ul><li>Cognitive + emotive: I believe what you’re saying </li></ul></ul><ul><li>The ‘Distracted Exposure’ methodology simulate today’s cluttered media environment </li></ul>
  44. 48. Result: Campaign with high synergy Together with our partner OTX (recently acquired by Ipsos), we test creative copy within the setting of the overall campaign. © OTX / MediaCEP™
  45. 49. 4 How to optimize a media plan based on actual creative material?
  46. 50. The ability of media to influence Perhaps radio doesn’t influence perception of price
  47. 51. The ability of media to influence Or perhaps TV and Cinema gets a boost when used together
  48. 52. With data from cross-media copy testing, the planner will add reports to understand synergetic effects.
  49. 53. 5 What did the advertising budget deliver in return?
  50. 54. The econometric modeling allows for closing the ROI loop. What are the brand effects for a certain communication plan.
  51. 55. 6 How to connect the dots?
  52. 56. Connecting the dots <ul><li>Clearly define your target segments </li></ul><ul><li>Clearly define your KPI’s </li></ul><ul><li>Assure that all research programs remain consistent with the segments and KPI’s </li></ul><ul><li>Data integration, dashboards and planning tools can assure: </li></ul><ul><ul><li>Consistency with all involved (“common goal”) </li></ul></ul><ul><ul><li>Easy distribution of learnings </li></ul></ul><ul><ul><li>Accountability and improved ROI! </li></ul></ul>
  53. 57. To summarize: the ingredient for managing ROI <ul><li>How will brand perceptions affect market share? </li></ul><ul><li>How to brief creative and media based on brand strategy? </li></ul><ul><li>How will creative + channel influence perceptions? </li></ul><ul><li>How to optimize a media plan based on actual creative material? </li></ul><ul><li>What did the advertising budget deliver in return? </li></ul><ul><li>And how to connect the dots? </li></ul>
  54. 58. [email_address]

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