New Directions for
Ad Effectiveness Measurement
1
Contents
1. Situation Assessment for advertising measurement
2. A new paradigm for measuring ad effectiveness: the ABX Creative Test System
3. ABX is Faster-Cheaper-Deeper and Better
4. The Total Ad Effectiveness Landscape: Good, Bad & Ugly
5. How Quick-Serve Restaurant Brands’ Ads compare to key peers and competitors
6. The range of effectiveness for all McDonald’s ads in 2016
7. What strong and weak McDonald’s ads look like
8. ABX online reporting portal
9. ABX Creative Scores Correlate to sales performance
10. Why all this is important
11. Next Steps and Offer
12. Thank you
Current Situation of Advertising Testing &
Measurement
• The majority of copy testing is presently done by ā€œlegacyā€ copy test
regimes
• These legacy systems were designed in an era when there were few media
channels and copy testing focused almost exclusively on TV
• These legacy systems also were labor intensive, expensive and slow, often
taking 3-4 weeks from test to data reporting
• Presently, advertisers are producing many more ads for an expanded and
much wider set of media channels.
• Because of the expanded complexity of this market place, legacy copy
testing has not adapted. For the most part, there has been no significant
changes in these legacy systems for the past 50 years. And because of the
expense and slow turnaround, most ad inventory is not tested at all!
• We know that ā€œcreativity is the soul of advertisingā€ and ā€œmessage is the
foundation of creative communicationā€. Without measurement, there can
be no effective advertising strategy.
• Advertisers should find this situation unacceptable. Fortunately, a new
alternative has come onto the market.
What changing the paradigm means
1. We are introducing a new system which will change the
paradigm. We call it the ABX Creative Testing System
2. This is an ad testing system which goes beyond mere
reporting and provides tools for actually improving ad
creative effectiveness over time.
3. It is also an agile, near-real time reporting system geared
for ā€œactionabilityā€
4. Finally, it is more than a bunch of numbers, but numbers
which have been proven relevant via market mix models.
For the first time, the creative element of advertising has
been ā€œmonetizedā€. This makes copy testing far more
relevant.
ABX: A Revolution for increasing ad
effectiveness through better creative.
• THE ABX Ad Testing System
– Both Pre-testing and post-testing (in market)
– Testing respondents based on national sample means all scores across all
media and brands are directly comparable. Custom samples can overlay
national sample
– Conducts more ad tests than any company. Also, the largest database of ad
normative testing data in the world.
– Has driven out a lot of the cost from copy testing. ABX is significantly less
costly per test than other ad-test services
– Provides 24-48 hour guaranteed ad test results
– Permits broad ad test coverage of all of your ads across all media channels:
TV, print, radio, outdoor, digital and FSI ads.
– Provides syndication with post-test scores and tracking to compare your
brand’s test results versus competitors’ ads
– Provides tool to improve ad creative. Through an online-portal, you can
always find strong performing ads and play their audio/video as critical
information & as a guide to help you improve ad copy quality and
effectiveness.
– ABX ad testing has been validated via marketing-mix models. Test scores are
linked to in-market sales.
Faster-Cheaper-Deeper-Better
6
ABX Creative
Test System
Other Copy Test
Services
Faster <=24- 48 hours 2 to 4 weeks
Cheaper < = $5K per test $20-30K per test
Deeper All Media
Channels
Coverage
Limited
Coverage
TV, Radio, Print,
OOH, Digital,
FSI
TV and limited
print
Better Links to Sales
Performance
No direct
validation
Validated with
Marketing-Mix
Models
None
The ABX Ad Testing System
will give you proven better
results, faster and at a lower
cost than any other service.
The current advertising landscape. Messy and shows there are a
lot of under-performing ads. Consider that from an advertiser’s
perspective, most of these ads are not even tested!
Good Ads
Underperforming Ads
7
Case Study: Quick Serve Restaurants
8
9
All Ads Normative
Digital Ads
Print Ads
FSI Ads
10
All Ads Normative
Radio Ads
Outdoor Ads
TV Ads
Below shows McD’s produces a lot of ads. McDonald’s can save an
average of $47 million by rotating or Trading Strong Ads for Weak Ads.
The tragedy is that they don’t test most of these ads!
Strong performers
Weak performers
Answers in <= 48 hours
11
Digital Ads
Print Ads
Radio Ads
TV Ads
Outdoor Ads
FSI Ads
DIAGNOSTIC REPORTS & DATA
DISPLAY
12
Highest-Scoring TV – 30s
13
Lowest-Scoring TV – 15S
Low-Scoring OOH
15
Highest-Scoring FSI
17
Highest-Scoring Online Video
McDonald’s - $47 Million
With ABX, you know which of your ads are
resonating and which are not pulling their weight.
By substituting an ā€œaverageā€ ad for an
underperforming ad, we estimate McD’s creative
effectiveness can be improved by more than $47
million annually.
In addition, by providing your creative team with a
feedback loop you can expect to improve even
your better performing ads. This has the ability to
double these benefits over time.
Marketing-Mix modeling validates the more
precise value
We estimate your ROI can exceed 100x the cost of
ABX data and services.
18
Where possible, substituting strong
ads for below-norm ads means money
in the bank.
Real-Time Access
On the Desktop: Mobile:
19
• ABX has online reporting portal where you have access to all of your tested
ad results. Actual ad clips for all tested ads enables you to review the full
creative online.
• Ad data can be displayed as a detail grid and exported to Excel
• The portal contains all reels and copies of original ads
• Clicking on column headers reorders the data displayed by the column
Access to all KPIs – No Black Box
20
In the ideal world, spend on an ad-by-ad basis would align
perfectly with ad sales lift, but this is not the case. The
true situation is most often highly inefficient and
wasteful!
R² = 0.1138
0
20
40
60
80
100
120
140
160
3 5 7 9 11 13 15
SPENDPERADSQRT
Ad SALES LIFT SQRT
However, ABX has proven to align and correlate
extremely well with individual ad sales lifts. This
provides a great resource for allocating marketing
funds across individual ads!
R² = 0.5527
4
5
6
7
8
9
10
11
12
13
3 5 7 9 11 13 15
ABXINDEXCREATIVESCORESQRT
AD SALES LIFT SQRT
Using the ABX metric to allocate media budget by ad would
have generated + $21MM (2%) in incremental revenue for
Neutrogena
What’s Next & the Offer
• We invite you to investigate yourself. Find out if
what we claim is true. We are open to discussion
• We offer to show you ā€œreal & currentā€ data on
your own brands & categories. We can show you
how your ads stack up versus peers and
competitors.
• Give us a call and lets arrange a no-obligation
conference to discuss how ABX can change the
paradigm and give you significantly better, faster
and more complete feedback on your own
advertising effectiveness.
23
Gary Getto
President,
Advertising Benchmark Index
E: Gary@adbenchmark.com
M: 347.443.8869
http://blog.adbenchmark.com
Michael Wolfe
CEO
Bottom Line Analytics Global
E: mjw@bottomlineanalytics.com
M: 678.314.8446
www.bottomlineanalytics.com
24
Thank You!!
Angela Jeffrey
Vice President,
Advertising Benchmark Index
E: Angie@adbenchmark.com
M: 347.443.8869
http://blog.adbenchmark.com
Contact us for questions & further information

A paradigm shift in advertising effectiveness measurement

  • 1.
    New Directions for AdEffectiveness Measurement 1
  • 2.
    Contents 1. Situation Assessmentfor advertising measurement 2. A new paradigm for measuring ad effectiveness: the ABX Creative Test System 3. ABX is Faster-Cheaper-Deeper and Better 4. The Total Ad Effectiveness Landscape: Good, Bad & Ugly 5. How Quick-Serve Restaurant Brands’ Ads compare to key peers and competitors 6. The range of effectiveness for all McDonald’s ads in 2016 7. What strong and weak McDonald’s ads look like 8. ABX online reporting portal 9. ABX Creative Scores Correlate to sales performance 10. Why all this is important 11. Next Steps and Offer 12. Thank you
  • 3.
    Current Situation ofAdvertising Testing & Measurement • The majority of copy testing is presently done by ā€œlegacyā€ copy test regimes • These legacy systems were designed in an era when there were few media channels and copy testing focused almost exclusively on TV • These legacy systems also were labor intensive, expensive and slow, often taking 3-4 weeks from test to data reporting • Presently, advertisers are producing many more ads for an expanded and much wider set of media channels. • Because of the expanded complexity of this market place, legacy copy testing has not adapted. For the most part, there has been no significant changes in these legacy systems for the past 50 years. And because of the expense and slow turnaround, most ad inventory is not tested at all! • We know that ā€œcreativity is the soul of advertisingā€ and ā€œmessage is the foundation of creative communicationā€. Without measurement, there can be no effective advertising strategy. • Advertisers should find this situation unacceptable. Fortunately, a new alternative has come onto the market.
  • 4.
    What changing theparadigm means 1. We are introducing a new system which will change the paradigm. We call it the ABX Creative Testing System 2. This is an ad testing system which goes beyond mere reporting and provides tools for actually improving ad creative effectiveness over time. 3. It is also an agile, near-real time reporting system geared for ā€œactionabilityā€ 4. Finally, it is more than a bunch of numbers, but numbers which have been proven relevant via market mix models. For the first time, the creative element of advertising has been ā€œmonetizedā€. This makes copy testing far more relevant.
  • 5.
    ABX: A Revolutionfor increasing ad effectiveness through better creative. • THE ABX Ad Testing System – Both Pre-testing and post-testing (in market) – Testing respondents based on national sample means all scores across all media and brands are directly comparable. Custom samples can overlay national sample – Conducts more ad tests than any company. Also, the largest database of ad normative testing data in the world. – Has driven out a lot of the cost from copy testing. ABX is significantly less costly per test than other ad-test services – Provides 24-48 hour guaranteed ad test results – Permits broad ad test coverage of all of your ads across all media channels: TV, print, radio, outdoor, digital and FSI ads. – Provides syndication with post-test scores and tracking to compare your brand’s test results versus competitors’ ads – Provides tool to improve ad creative. Through an online-portal, you can always find strong performing ads and play their audio/video as critical information & as a guide to help you improve ad copy quality and effectiveness. – ABX ad testing has been validated via marketing-mix models. Test scores are linked to in-market sales.
  • 6.
    Faster-Cheaper-Deeper-Better 6 ABX Creative Test System OtherCopy Test Services Faster <=24- 48 hours 2 to 4 weeks Cheaper < = $5K per test $20-30K per test Deeper All Media Channels Coverage Limited Coverage TV, Radio, Print, OOH, Digital, FSI TV and limited print Better Links to Sales Performance No direct validation Validated with Marketing-Mix Models None The ABX Ad Testing System will give you proven better results, faster and at a lower cost than any other service.
  • 7.
    The current advertisinglandscape. Messy and shows there are a lot of under-performing ads. Consider that from an advertiser’s perspective, most of these ads are not even tested! Good Ads Underperforming Ads 7
  • 8.
    Case Study: QuickServe Restaurants 8
  • 9.
    9 All Ads Normative DigitalAds Print Ads FSI Ads
  • 10.
    10 All Ads Normative RadioAds Outdoor Ads TV Ads
  • 11.
    Below shows McD’sproduces a lot of ads. McDonald’s can save an average of $47 million by rotating or Trading Strong Ads for Weak Ads. The tragedy is that they don’t test most of these ads! Strong performers Weak performers Answers in <= 48 hours 11 Digital Ads Print Ads Radio Ads TV Ads Outdoor Ads FSI Ads
  • 12.
    DIAGNOSTIC REPORTS &DATA DISPLAY 12
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
    McDonald’s - $47Million With ABX, you know which of your ads are resonating and which are not pulling their weight. By substituting an ā€œaverageā€ ad for an underperforming ad, we estimate McD’s creative effectiveness can be improved by more than $47 million annually. In addition, by providing your creative team with a feedback loop you can expect to improve even your better performing ads. This has the ability to double these benefits over time. Marketing-Mix modeling validates the more precise value We estimate your ROI can exceed 100x the cost of ABX data and services. 18 Where possible, substituting strong ads for below-norm ads means money in the bank.
  • 19.
    Real-Time Access On theDesktop: Mobile: 19 • ABX has online reporting portal where you have access to all of your tested ad results. Actual ad clips for all tested ads enables you to review the full creative online.
  • 20.
    • Ad datacan be displayed as a detail grid and exported to Excel • The portal contains all reels and copies of original ads • Clicking on column headers reorders the data displayed by the column Access to all KPIs – No Black Box 20
  • 21.
    In the idealworld, spend on an ad-by-ad basis would align perfectly with ad sales lift, but this is not the case. The true situation is most often highly inefficient and wasteful! R² = 0.1138 0 20 40 60 80 100 120 140 160 3 5 7 9 11 13 15 SPENDPERADSQRT Ad SALES LIFT SQRT
  • 22.
    However, ABX hasproven to align and correlate extremely well with individual ad sales lifts. This provides a great resource for allocating marketing funds across individual ads! R² = 0.5527 4 5 6 7 8 9 10 11 12 13 3 5 7 9 11 13 15 ABXINDEXCREATIVESCORESQRT AD SALES LIFT SQRT Using the ABX metric to allocate media budget by ad would have generated + $21MM (2%) in incremental revenue for Neutrogena
  • 23.
    What’s Next &the Offer • We invite you to investigate yourself. Find out if what we claim is true. We are open to discussion • We offer to show you ā€œreal & currentā€ data on your own brands & categories. We can show you how your ads stack up versus peers and competitors. • Give us a call and lets arrange a no-obligation conference to discuss how ABX can change the paradigm and give you significantly better, faster and more complete feedback on your own advertising effectiveness. 23
  • 24.
    Gary Getto President, Advertising BenchmarkIndex E: Gary@adbenchmark.com M: 347.443.8869 http://blog.adbenchmark.com Michael Wolfe CEO Bottom Line Analytics Global E: mjw@bottomlineanalytics.com M: 678.314.8446 www.bottomlineanalytics.com 24 Thank You!! Angela Jeffrey Vice President, Advertising Benchmark Index E: Angie@adbenchmark.com M: 347.443.8869 http://blog.adbenchmark.com Contact us for questions & further information