Engagement as a Behavioral and Sales-Correlated ROI Proxy

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At the Advertising Research Foundation’s (ARF) 2011 annual re:think convention, a key issues forum presentation was held entitled Engagement as a Behavioral and Sales-Correlated ROI Proxy. Presenters included Robert Passikoff, President of Brand Keys, Inc. & Charles Kennedy
SVP of Sales and Strategy Research for ABC Television Network. Questions such as “What drives media engagement” were addressed. The Disney Media and Advertising Lab and the effects of cross platform consumption were discussed.

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Engagement as a Behavioral and Sales-Correlated ROI Proxy

  1. 1. Engagement as a Behavioraland Sales-CorrelatedROI ProxyRobert Passikoff Charles KennedyPresident SVP, Sales and StrategyBrand Keys, Inc. Research ABC Television Network
  2. 2. Who is Brand Keys?The leader in predictive, brand equity, loyalty, and engagement researchmetrics since 1984; an independent global boutique New York Albuquerque Los Angeles Philadelphia London, England Sydney, Australia Tokyo, JapanBrand Keys, Inc. is the only research consultancy in the world that specializesin loyalty, providing brand equity metrics that accurately predict futurein-market behavior and therefore correlate highly with sales and profitability
  3. 3. EngagementReal “engagement” is the consequence of any marketing orcommunications effort (through any media touch-point) that results in anincreased level of “brand equity” for the brand, i.e., how well the brand(be it a provider, a service, or a venue) is seen to meet or exceedexpectations for the category in which it competes
  4. 4. Engagement CertaintiesThe consumption and mix of media used to communicate hasdirect and consequential behavioral effects on the level ofengagement attained by the advertised brand What Will I Get? Higher Attention Paid to Ad Brand Thought of “Better” Higher Propensity to Buy Higher Sales!
  5. 5. ABCPrograms, People, Passion
  6. 6. TV Content More Popular Than Ever 71% watching TV a top media choice +15% time spent with TV since 00/01 season #1 TV’s rank for highest attachment of all media
  7. 7. Online Popularity of TV ProgrammingBroadcast network’s content drive digital video growth 58.9 Million
  8. 8. ABC Makes Cross-Media…
  9. 9. Less Scary!
  10. 10. The Disney Media and Advertising Lab• Located in Austin, Texas• Led by Dr. Duane Varan• Classic Experimental Design• Method-Agnostic• Biometric Measurement
  11. 11. Brand-to-Media Engagement Measures the impact a marketing or media initiative will deliver on brand equity, in advance of the spend, a proxy for ROI
  12. 12. Brand-to-Media Engagement (B2ME)There are four engagement methods butonly one objective1. Platform (TV; Online; Print; Sponsorship)2. Context (Program; Webpage; Magazine; Game)3. Message (Ad or Communication)4. Experience (Store; Event)Objective: Brand Engagement
  13. 13. Brand-to-Media Engagement (B2ME) Works for any media platform Works for any cross-media combination Works in advance of spend Is a truly predictive media measurement
  14. 14. Real Consumer Brand Engagement = Positive Behavior Positive Behavior = Sales Sales = ROI
  15. 15. What Drives Engagementand Behavior?
  16. 16. Human RationalEmotion Features ENGAGEMENT AND BEHAVIOR
  17. 17. What Yardstick Do You Use to Identify HowThose Emotions and Features Are Working?
  18. 18. The Ideal Customer’s emotional and rational view of the category in which you compete, letting you understand how consumers really view, compare, and choose among category options
  19. 19. B2ME Specifications• 2-part questionnaire• Psychological and rational• On-line, telephone, in-person interviews• Test/re-test reliability: .93• Used in 30 countries around the world• B2B and B2C category and brands• Predictive, insightful, and strategic• Validated• ARF First Opinion Review
  20. 20. Whatever the Category… Human Rational Emotion(s) Feature(s) Statistically Fused 180 Ideal 160 130 128 130 140 121 120 100 Value/Convenient Store Merchandise Shopping Location Reputation Range Experience
  21. 21. How to Read the Output 1.Loyalty Drivers in order ofCustomer Expectation Levels 180 importance 160 130 128 130 140 121 2.Percent contribution to 120 future purchase/loyalty 100 3.Customer Expectation level Value/Convenient Location Store Reputation Merchandise Range Shopping Experience for each Driver Is bold and dramatic Ideal Looks great when I take it out of 3% 100% 4% 5% my bag 6% Allows me to combine colors to 6% 80% 6% create my personal palette of shades 6% 3 6% Helps me to get attention and be 60% 6% noticed 7% Percent of 7% Allows me to adjust the color Contribution 40% 7% from subtle to bold Highest Loyalty Drivers – Order of Importance Lowest 7% 2 1 20% 8% Makes me feel glamorous 8% 8% Helps me create different looks by using the widest range of 0% pigments available Makes me feel s exy
  22. 22. Retail Category Ideal 150Customer Expectation Levels 140 130 130 128 130 121 120 110 100 Value/Convenient Store Merchandise Shopping Location Reputation Range Experience Ideal
  23. 23. Retail Category: Best Buy vs. Ideal 150Customer Expectation Levels 140 130 130 128 130 121 121 120 120 115 112 110 100 Value/Convenient Store Merchandise Shopping Location Reputation Range Experience Ideal Best Buy
  24. 24. How Does Advertising onABC Platforms PositivelyAffect Brand Engagement?
  25. 25. ABC Platforms
  26. 26. What We Did• Consumers self-classified as category users and regular viewers/visitors of ABC platforms• Assessed category Ideals and brands• Also assessed the brands within the context of the ABC media platform(s)
  27. 27. 12 Categories• Bar Soap • Hotel• Car Rental • Over-the-Counter Pain Relief• Cosmetics • Retail• Dog Food • Sinus/Cold Decongestants• Eco-Friendly Cleaning Products • Toothpaste• Family Theme Park • Yogurt
  28. 28. Retail Category: Best Buy 150Customer Expectation Levels 140 130 130 128 130 121 121 120 120 115 112 110 100 Value/Convenient Store Merchandise Shopping Location Reputation Range Experience Ideal Best Buy
  29. 29. Retail Category: Best Buy 150Customer Expectation Levels 140 130 130 128 129 128 128127 130 126 127 126 124 124 125 121 121 122 122 120119 120 120 117 118 115 112 110 100 Value/Convenient Store Merchandise Shopping Location Reputation Range Experience Ideal Best Buy Brand + ABC Brand + ABC News Brand + ABC.com Brand + ABCNews.com
  30. 30. Best BuyThe following predictive overall brand-to-mediaengagement scores were assessed High EngagementBest Buy + ABC.com 125Best Buy + ABCNews.com 125Best Buy + ABC News 123Best Buy + ABC 122 Neutral EngagementBest Buy 117
  31. 31. Engagement CertaintiesThe consumption and mix of media used to communicate hasdirect and consequential behavioral effects on the level ofengagement attained by the advertised brand What Will I Get? Higher Attention Paid to Ad Brand Thought of “Better” Higher Propensity to Buy Higher Sales!
  32. 32. Validity Testing• Validity testing among Phase-1 longitudinal sample takes into account a 60-day period• Where appropriate, respondents were asked if they had shopped in the category and specifically how they behaved• In other categories, respondents were asked a likelihood question and top-2 box responses have been reported out
  33. 33. Examples of Cross-Platform Consumption Engagement Effects Overall # Times Buying Index Past 60 DaysBest Buy + ABC + ABC News + ABC.com 126 12Best Buy + ABC + ABCNews.com 125 4Best Buy + ABC 122 6Best Buy + ABC News 123 8Best Buy (Absent Media) 117 –
  34. 34. Best Buy Predictive Brand-to-Media Cross-Platform Metrics Overall # Times Buying Average Index Past 60 Days Overall SpendBest Buy + ABC + ABC News + ABCNews.com 129 15 375Best Buy + ABC + ABC.com 126 10 300Best Buy + ABC News + ABCNews.com 126 10 310Best Buy + ABC News + ABC.com 126 8 265Best Buy + ABC + ABC News + ABC.com 126 12 200Best Buy + ABC.com 125 5 195Best Buy + ABCNews.com 125 5 190Best Buy + ABC + ABCNews.com 125 4 175Best Buy + ABC + ABC News 124 6 185Best Buy + ABC News 123 8 190Best Buy + ABC 122 6 140Correlation with Overall Predictive B2ME Index 0.67 0.90
  35. 35. Dog Food Category: Brand X 150Customer Expectation Levels 140 135 135 135 133 132 130 129 130 128 128127 128129 130 125 125 126 127 125 125 124123 120 122 119 120 110 100 Pet Appeal Hi-Quality Price/Value Nutrition Ingredients Ideal Brand X Brand + ABC Brand + ABC News Brand + ABC.com Brand + ABCNews.com
  36. 36. Brand X Predictive Brand-to-Media Engagement Metrics Overall Average # of Index Individual Products PurchasedBrand X + ABC + ABC News + ABCNews.com 143 60Brand X + ABC + ABC News + ABC.com 143 40Brand X + ABC News + ABCNews.com 139 25Brand X + ABC News + ABC.com 136 40Brand X + ABC + ABCNews.com 135 30Brand X + ABC + ABC.com 135 25Brand X + ABC + ABC News 134 32Brand X + ABC.com 130 30Brand X + ABC 130 25Brand X + ABCNews.com 130 24Brand X + ABC News 129 24Correlation with Overall Predictive B2ME Index 0.72
  37. 37. Ideal Family Theme Park Category:Disney Parks 150 143 141 140Customer Expectation Levels 138 138 140 137 135 134 136 135 135 134 136 135 135 133 133 132 132 132 132 130 129 130 128 120 110 100 Good Value for Dollar Full Range of Family A Safe Place to Can Customize My via Range of Affordable Activities, Attractions, Treat My Family Dream Holiday Tickets, Accomodations, Live Events, and and Dining Dining Options Highest Lowest Loyalty Drivers – Order of Importance Ideal Disney Parks Brand + ABC Brand + ABC News Brand + ABC.com Brand + ABCNews.com
  38. 38. Disney Parks Predictive Brand-to-Media Engagement Metrics Assessed Overall Index Top-2 Box Likelihood to Plan a VacationDisney Parks + ABC + ABC.com 143 18Disney Parks + ABC + ABC News + ABC.com 143 16Disney Parks + ABC + ABC News + ABCNews.com 141 12Disney Parks + ABC.com 138 16Disney Parks + ABC News + ABC.com 138 13Disney Parks + ABC + ABCNews.com 138 12Disney Parks + ABC + ABC News 138 11Disney Parks + ABC News + ABCNews.com 137 10Disney Parks + ABCNews.com 136 10Disney Parks + ABC 136 10Disney Parks + ABC News 134 9Correlation with Overall Predictive B2ME Index 0.89
  39. 39. Engagement as an ROI Proxy• These engagement metrics keep the focus on the brand, and answers the question, “Will they act positively?”• ABC validity tests prove engagement-based media placement is a real proxy for ROI• These data can also be combined with specific brand message testing, i.e., engagement with message on platform• This allows for strategic media placement with individual brand strategies and messaging• Moves brand planning further from demographic and closer to real engagement
  40. 40. Thank You for Your Attention Robert Passikoff Charles Kennedy Justin FrommPresident, Brand Keys, Inc. Senior Vice President, Director, Sales & Strategy Research 212-532-6028 x12 Sales & Strategy Research ABC Television Network robertp@brandkeys.com ABC Television Network 212-456-7525 www.brandkeys.com charles.s.kennedy@abc.com justin.z.fromm@abc.com www.abc.go.com www.abc.go.com

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