Summit 2013 legolas programmatic premium post event version

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The deck I co-presented with Ran Cohen of Upfront Digital Media (a Legolas Company) at IRI's Summit in April, discussing the evolution of digital advertising from direct response to brand building

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Summit 2013 legolas programmatic premium post event version

  1. 1. insights trends networking How do Online ads impact Offline Sales Ran Cohen Co-founder, President Phil Ripperger VP New Media Sales
  2. 2. 2 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Key Takeaways Online advertising drives sales in stores Online advertising can be safe, simple, accurate and effective Optimization beyond the click Audience + Environment = Impact 1 2 3 4
  3. 3. 3 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Agenda History1 Brand Advertising1a Online Advertising1b CPG Case Study3 Q & A4 Brand Challenges Online2
  4. 4. 4 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Agenda History1 Brand Advertising1a Online Advertising1b CPG Case Study3 Q & A4 Brand Challenges Online2
  5. 5. 5 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Agenda History1 Brand Advertising1a Online Advertising1b CPG Case Study3 Q & A4 Brand Challenges Online2
  6. 6. 6 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. The birth of branding The Century of the Self is an award- winning British television documentary series by Adam Curtis. It focuses on how the work of Sigmund Freud, Anna Freud, and Edward Bernays shaped the way marketers moved beyond needs-based toward desire-based advertising. This 21/2 minute video describes the challenge presented to Bernays and how it led to the birth of branding as we know it.
  7. 7. 7 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. US Personal Consumption vs. Advertising Spend 0 2000 4000 6000 8000 10000 12000 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Annual Consumer Spend $Bn 0 100 200 300 400 500 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Annual Advertising Spend $Bn SOURCE: US Bureau of Economic Analysis, Coen Structured Advertising Expenditure Dataset, Business Insider
  8. 8. 8 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Agenda History1 Brand Advertising1a Online Advertising1b CPG Case Study3 Q & A4 Brand Challenges Online2
  9. 9. 9 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Change in media consumption 30% of Media consumption online
  10. 10. 10 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. First online banner ad Year – 1994 Brand – AT&T Publisher – Hotwire
  11. 11. 11 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Online Ad Revenues History 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Q12001 Q22001 Q32001 Q42001 Q12002 Q22002 Q32002 Q42002 Q12003 Q22003 Q32003 Q42003 Q12004 Q22004 Q32004 Q42004 Q12005 Q22005 Q32005 Q42005 Q12006 Q22006 Q32006 Q42006 Q12007 Q22007 Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 Q32009 Q42009 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 Q32011 Q42011 Q12012 Q22012 SOURCE: IAB Quarterly Revenue Growth $Mn
  12. 12. 12 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Powerful branding tool The campaign promoting the launch of ―Avatar‖ on DVD created an immersive, interactive experience with rich media ads and high definition audio and video demonstrating the power of online branding.
  13. 13. 13 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Agenda History1 Brand Advertising1a Online Advertising1b CPG Case Study3 Q & A4 Brand Challenges Online2
  14. 14. 14 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Sales
  15. 15. 15 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. WHERE is my Audience?
  16. 16. 16 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. WHERE is my message?
  17. 17. 17 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Simple
  18. 18. 18 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Solution Drive brand results via scalable online targeting of relevant consumers on premium publishers Your consumers Prioritized & Quality Inventory Offline Sales
  19. 19. 19 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. • Heavy Category Buyers • Switchers • Geo Fencing Your Consumer
  20. 20. 20 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Premium Remnant Unutilized Endemic • Priority Access – Direct Pub • Guaranteed Media • Predictable Reach & Freq. • Safe & Transparent • High Quality • Flexible creative (Rich & Video) • Low Priority • Uncertain Delivery • Unpredictable Reach & Freq. • Transparent • Lower Quality • Standard Creative Spot/RTB Upfront ExchangesDSP Networks 100% control 0% RTB Publisher Ad Server Quality Placements
  21. 21. 21 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Brand Safe Environment
  22. 22. 22 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Audience & Environment
  23. 23. 23 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Optimized Media Plan Publisher Reach Budget AOL 1m $100,000 Glam Media 0.75m $75,000 Rodale 2.5m $250,000 MSNBC 0 $0 Total 4.25m $450,000
  24. 24. 24 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Results
  25. 25. 25 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Agenda History1 Brand Advertising1a Online Advertising1b CPG Case Study3 Q & A4 Brand Challenges Online2
  26. 26. 26 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. What is the Value of a Click?
  27. 27. August 30-31, 2010 How It Works… Identify & Create purchase-based audience segments from Panel Legolas passes exposed panelists to IRI IRI compares purchases between test and control groups $2.00 $2.50 Buying Rate Non-Exposed Exposed Ad tags identify when panelists are exposed to ads. Legolas models panel to larger audience and activates campaign Define objectives and targets Deliver Panel IDs to Legolas IRI identifies control group Heavy Users Competitive Users High Category Users
  28. 28. Case Study: Baked Goods • Campaign Summary – Initial, directional results are positive • Dollars per household are up 6.9% vs. prior year. Driven by an 11.3% increase in dollars spent per occasion. • Targeting Performance – Females 21 – 49 with kids and who bought competitive products indexed higher than total campaign in dollars per household & penetration Target Dollars/ HH Penetration Occasions $ per Occasion Buyer Count Target Source Total Targeted 109 106 101 102 509 F 26-55 w kids 117 107 106 103 242 Target Source 1 Brand X switchers & heavy sweets buyers 111 105 99 107 68 Target Source 2 F with kids 117 108 114 95 59 Target Source 3 F 25-49 w kids who buy sweets 107 100 107 99 96 Target Source 4 F 21 - 49 with kids who buys competitive 126 123 100 102 175 Target Source 5 F 25-54 w kids 98 101 100 97 122 Target Source 6 F 25-49 w kids 97 102 100 96 109 Target Source 7 Interim Period - Index to Total Campaign
  29. 29. 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 Dollars/HH Penetration Occasions $ per Occasion Buyer Count # IRI HHs Exposed 44047 - Soccer (Only) 148 140 103 103 41 626 44049 - 14 Min (Only) 72 90 88 92 28 644 44051 - Obstacle (Only) 119 134 88 101 39 647 Interim Period - Index to Total Targeted
  30. 30. Case Study: Soup • Campaign Summary ‒ Initial, directional results are positive • Dollar per household sales: +$0.02 during the 6-week interim period • Purchase occasions and dollars spent per occasion are driving the increase. • Targeting Performance Target Dollars/HH Penetration Occasions Dollars/Occasions Buyer Count No Profile 73 88 99 84 183 Purchse-Based Targeting 128 112 102 112 204 Target Source 1 119 129 79 118 35 Target Source 2 133 113 102 115 148 Target Source 3 107 103 89 116 82 Target Source 4 150 121 104 120 67 Interim Period - Index to Total Campaign
  31. 31. Case Study: Soup (cont’d.) • Publisher Performance Publisher Dollars/HH Penetration # Occasions $/Occasions Buyer Count Publisher A 118 131 91 90 89 Ad Network A 96 111 82 105 37 Publisher B 103 95 104 104 26 Publisher C 162 123 95 139 30 Portal A 92 91 100 102 281 Interim Period - Index to Total Campaign
  32. 32. 32 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Case Study Describe how the client used the analysis and recommendation • Results shared with client insights and market research teams as well as their digital agency of record (AOR) • Implemented campaign optimization reads on all campaigns of sufficient reach and duration Quantitative value added (required) • It is expected that the campaign optimization report will eliminate +/- $120,000 in ad waste per $1MM+ campaigns. Results / Value Created Client Situation/ issue Our Approach Client description • Leading international food manufacturer of scores of iconic brands, most of which occupy No. 1 or No. 2 market positions Client situation • Client had worked with IRI partner Legolas to develop innovative online ad targeting and activation platform and were looking to incorporate campaign KPIs that would be more meaningful than other online campaign metrics such as click-through-rates (CTR), and cost- per-action (CPA). Detail SIG’s approach to the client’s problem • Panel-based test/control analysis • Mid-campaign sales data comparing exposed with non-exposed households • Additional campaign reads to understand relative effectiveness of various campaign tactics used (e.g. audience segments, publishers & creative) Highlight SIG’s recommendations • Focus campaign spend on high performing audience segments and creative • Ensure that campaign objectives tie to overall brand objectives—short vs. mid-term impact.
  33. 33. 33 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Actions & Implications Online advertising is core to branding…and sales Message to your best consumers in the right places Many Tier 1 publishers on one campaign ad buy Leverage offline sales to optimize campaigns 1 2 3 4
  34. 34. August 30-31, 2010 Don’t forget to fill in your actionable growth insights on page 45 of your GROWTH ACTIVATION PLAYBOOK! NEW! Summit Playbook
  35. 35. 35 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary. Questions? Ran Cohen Co-Founder, President Legolas Media ran@legolas-media.com 917.860.1502 Phil Ripperger VP, New Media Solutions SymphonyIRI Group phil.ripperger @symphonyiri.com 203.247.1706 Twitter: @RipperP
  36. 36. insights trends networking appendix
  37. 37. Panel Analytic Tree – Drivers of Dollar Sales Dollar Sales % of HH Buying ―Penetration‖ Dollars Per Buyer ―Buying Rate‖ $ Per Purchase Occasion ―Purchase Size‖ Purchase Occ Per Buyer ―Purchase Frequency‖
  38. 38. August 30-31, 2010 Frequently Asked Questions • How can I best use the optimizer? The indices show sales from households exposed to your campaign. We can segment sales lift across purchase-based targets, creative, publishers and messaging tactics (e.g. contextual vs. behavioral) The indices directionally demonstrate which tactics may have an effect on household purchases. • What’s the difference between the optimizer and an ROI analysis? The optimizer indexes raw data from our panel to quickly review which digital media tactics may have an effect on household purchases. It’s a snapshot in time that shows product sales during the campaign. It uses only one cell (exposed/test). An ROI analysis uses a statistical regression model that demonstrates advertising impact from buying households on product sales. We adjust the model to ensure the exposed (test) and non-exposed (control) cells look alike in their buying behavior (price paid, retail outlet shopped, etc.) and demographics. The analysis provides the most likely (average) short-term sales lift that we would expect to see at least 80% of the time given the same tactics.
  39. 39. August 30-31, 2010 Frequently Asked Questions • What’s the difference between raw and modeled data? Raw data includes purchase information pulled from our panel database as uploaded by our participating buying households. Modeled data excludes outliers and attempts to ensure the test and control sample sets are similar in their buying behavior, in-store promotional activity, pricing considerations and demographics. Additionally, influencing factors outside of the digital ad campaign are adjusted for, allowing us to provide a statistically significant result. • Can the optimizer predict our total campaign sales lift and ROI? No, the optimizer is a snapshot in time that illustrates sales during your campaign. Directionally, it can demonstrate if sales are moving in a positive or negative direction. It does not demonstrate impact to sales based on exposure to advertising.
  40. 40. Target Optimization Analysis (vs Total Targeted) • Directionally, audience targeting has had a positive impact on the campaign – Most targets performed similarly, but Target 2 under-performed compared to the rest. • Target groups are mutually exclusive • Sample Size = 572 raw exposed targeted buyers (out of 11,377 exposed Panel households) • Please note – raw data, for diagnostic purposes only, not predictive of final results. Target Dollars/HH Penetration Occasions $ per Occasion Buyer Count # IRI HHs Exposed Target 2 (Only) 79 90 93 94 46 1,059 Target 3 (Only) 104 109 96 99 70 1,288 Target 4 (Only) 103 93 103 107 82 1,541 Target 9 - National L&L or BC (Only) 100 95 103 102 129 2,696 Target 10 - National Demo (Only) 104 102 95 108 56 1,091 Super Target 1 - General (Only) 89 92 96 100 221 4,542 Super Target 3 - National (Only) 99 96 99 104 189 3,943 Interim Period - Index to Total Targeted

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