IRI and Turner partnered in mining marketing-mix studies across 62 brands representing $20 billion in sales and $3 billion in marketing spend across food, beverages, health care, beauty and home care aisles. The objective was to help marketers determine the most efficient marketing allocations and guide organizations to make marketing investments that provide short- and long-term growth.

2. TRENDS AND BEST
PRACTICES IN ADVERTISING
EFFECTIVENESS
Presented by:

3. TODAY’S PRESENTERS
Joy Joseph
Practice Leader,
Marketing Productivity
IRI Strategic Analytics
Howard Shimmel
Chief Research Officer
Turner Broadcasting
Bhanu Bhardwaj
Principal
IRI Media Center of Excellence

4. TODAY’S AGENDA
Introduction: Turner Research Summary
The Un-building of Brands
Executing High-performance Campaigns
Right-sizing Media Spend

6. RESEARCH QUESTION BETTER UNDERSTAND AND QUANTIFY THE IMPACT OF TV
ADVERTISING ON SOCIAL MEDIA TO HELP MARKETERS
EFFECTIVELY ENGAGE WITH KEY AUDIENCES
FINDINGS TV ADVERTISING HAS A SIGNIFICANT IMPACT ON
SOCIAL MEDIA BRAND ENGAGEMENT –
1 out of 5 social engagements for brands is directly driven by
television advertising

7. RESEARCH QUESTION
FINDINGS
BETTER UNDERSTAND HOW TV’S IMPACT IN DRIVING KPIs
HAS CHANGED, AND HOW TV’S IMPACT COMPARES WITH
OTHER MEDIA
IN SPITE CHANGING CONSUMER BEHAVIOR, THE ROI FROM
TV SPEND HAS NOT CHANGED OVER THE LAST 5 YEARS
TV’S ROI IS DRAMATICALLY HIGHER THAN OTHER MEDIA

8. RESEARCH QUESTION
FINDINGS
MANY BRAND ADVERTISERS HAVE SIGNIFICANTLY CUT
THEIR TV SPEND. WHAT IMPACT DOES THAT HAVE ON SALES
ATTRIBUTED TO TV ADVERTISING?
REDUCED TV AD SPEND YIELDS A $94M COMBINED LOSS IN
SALES, REPRESENTING 68% OF THEIR ORIGINAL SALES
AVERAGE SALES LOSS IS NEARLY 3X THE AVERAGE DECREASE IN
AD SPEND
WHILE BOTH REACH AND FREQENCY WERE DIMINISHED BY THE
REDUCED BUDGET, THE LOSS OF EFFECTIVE FREQUENCY HAD A
LARGER IMPACT ON REDUCED ROI

9. RESEARCH QUESTION
FINDINGS
FOR CPG, HOW DOES MEDIA ROI COMPARE AGAINST PROMO?
HOW DOES TV ROI COMPARE AGAINST OVERALL MEDIA ROI?
WHAT ARE BEST PRACTICES IN MEDIA AND TV ADVERTISING
SPECIFICALLY FOR CPG?
TODAY’S AGENDA

10. 10 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary.
THE SOURCE
Results Compiled from Marketing Mix Studies Conducted
by IRI Marketing Productivity Practice Between 2013-2015
All Media (TV, Digital, Search, Social)
and Promo (Trade, In-Store) Marketing
Tactics Considered
Comprehensive
Marketing
$3 Billion in Marketing
Spend
$3B Spend
62 Brands Representing $20B in CPG
Sales Across Food, Beverages, OTC,
Beauty & Home Care
62 Brands
$20B Sales

11. TODAY’S AGENDA
Introduction: Turner Research Summary
The Un-building of Brands
Executing High-performance Campaigns
Right-sizing Media Spend

12. 12 Copyright © 2016 Information Resources, Inc. (IRI). Confidential and Proprietary.
STOP
YOUR BRAND

13. DIFFERENTIATION BUILDS BRANDS AND
ADVERTISING ENHANCES DIFFERENTIATION
Consumers choose brands that represent the best
combination of features that address their unique
needs- highlighting benefits over cost.
Advertising reinforces this process.
Breakthrough
Resonance
Recall
Brand
Differentiation
BrandSalience
Advertising

14. PROMOTIONS HIGHLIGHT COST OVER BENEFITS
$1.09 $1.09 $1.09
3/$2
$1.09 $1.09

15. AND YET…
Media,
34%
Promo,
66%
CPG Share of Investment
Media vs. Promo
IN SPITE OF…
$1.14
$0.88
Media Promo
CPG ROI Comparison
Media vs. Promo

16. MEDIA ROI OUTPERFORMS PROMO ROI
ACROSS CATEGORIES IN THE SHORT TERM
$1.01
$1.21
$1.03 $1.00
$1.26
$0.82
$0.96
$0.78 $0.74
$1.17
Beauty Beverages Food Home Care OTC
ROI Comparison
Short Term Media vs. Promo
Media Short Term Promo

17. AND THERE’S A DOUBLE WHAMMY…
$1.20 $1.15
$0.70 $0.61
$1.92 $1.91
$0.99
$1.30
Beverages Food Home Care OTC
Brands with Higher
Trade:Media Spend Ratio
Brands with Lower
Trade:Media Spend Ratio
60/40 Trade:Media Cut Off for Beverages, Food, Home Care; 40/60 Cut Off for OTC
Media ROI Comparison
High Investment Share in Media vs. High Investment Share in Promotion
Media ROI underperforms for Brands that focus a higher share of their
budget on promotion

18. BRANDS ARE BEING UNBUILT BECAUSE OF A
VICIOUS CYCLE OF BRAND COMMODITIZATION
Margin Erosion
leading to declining
profits
Budget Shift From
“Above The Line” To
“Below The Line”
Marketing
Diminishing Brand
Differentiation
Increasing Shift of
Consumer Choice
From Brand Perception
to Value Perception
Share loss to Discount
Brands, Marketing
Effectiveness Erodes
Brands rely on Deeper
Discounting to offset
share losses

19. TODAY’S AGENDA
Introduction: Turner Research Summary
The Un-building of Brands
Executing High-performance Campaigns
Right-sizing Media Spend

20. AUDIENCE ATTENTION HAS FRAGMENTED,
NO DOUBT
…but TV still dominates audience reach and share of time…

21. LARGE AND HIGHLY PENETRATED BRANDS
SHOULD INCREASE MEDIA ALLOCATION
Media ROI
By Brand Size and Penetration
>10% Penetration vs. <10% (2015)
$1.25
$0.88
Large Brands Small Brands
$1.42
$0.65
High Penetration
Brands
Low Penetration
Brands
Above Study Average vs. Below Study
Average: 2015 Base Unit Sales

22. FOR SMALL BRANDS, BALANCE MEDIA
INVESTMENT WITH FOCUS ON EFFICIENCY
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
$0.00 $0.20 $0.40 $0.60 $0.80 $1.00
BrandCAGR
Media ROI
Media ROI vs. Brand Growth
Among Smaller brands with positive growth Better media performance
(ROI) for smaller brands helps
to fuel their growth
Invest in efficiency best
practices including Purchase
Based Targeting &
Programmatic Buying
Leverage cross-media
integration to enhance
engagement

23. INVOLVEMENT DRIVES MEDIA ROI
$1.04
$1.25
Brands from Low-Involvement
Categories
Brands from Mid-Involvement
Categories
Media ROI
By Brand Involvement Level
Note: High-Involvement brands such as those coming from the Auto and Travel categories
were not a part of this study.
Brands can create Involvement..

24. DIFFERENT CREATIVE MESSAGES INFLUENCE
VARIOUS POINTS IN THE CONSUMER JOURNEY
Equity or Branding
creative influences
consumers higher up
in the consumer
journey
Call to action
creative influences
consumers farther
down on the
consumer journey
Having both types running at any given time drives higher short and long term ROI.
Image Source:
McKinsey Quarterly

25. DEVELOPING SUCCESSFUL TV CAMPAIGNS
IPSOS, “10 RULES FOR TV STRATEGY”, ADMAP, 2014
(WE FOCUS ON THE 3 MOST IMPORTANT ONES)
Proposition #1 & #2:
- 75% of TV cut-through is due to creative
- Half of all TV ads fail to achieve objectives due to weak branding
IRI Norms:
More closer to 60% actual sales impact vs. survey-based
breakthrough and recall measured by IPSOS ASI.
Proposition #3
- Campaigns with fewer executions tend to be more effective.
IRI Norms:
Too many creatives are indeed sub-optimal, generally 3 is optimal

26. DIGITAL VIDEO CAN EFFICIENTLY ENHANCE THE
EFFECTIVENESS OF TRADITIONAL MEDIA CAMPAIGNS
Digital is a great Creative Incubator
Creative can drive over half of the overall campaign lift, but finding the right creative is not easy,
Digital makes ad-testing a much more iterative process
Successful TV Campaigns that started out as viral videos

27. INCREASING CABLE WEIGHT IN THE MIX
DRIVES EFFICIENCY
0.70
Cable
$0.57
Cable
Cable Effectiveness Index
Vs. Broadcast
Cable Cost Index
Vs. Broadcast
Although Broadcast TV drives more volume, often times it does not
justify the associated cost premiums

28. PRIMETIME TV CONTINUES TO DRIVE MORE
SALES VS. NON-PRIME
179%
100%
Prime Non-Prime
Effectiveness Comparison*
Prime TV vs. Non-Prime TV

29. DIGITAL VIDEO HAS DEMONSTRATED
STRONG RETURNS RELATIVE TO TV
$1.06
$1.50
$2.45
TV Only Digital Video Only Tv+Digital
Based on a 70/30 Average Mix of TV
and Digital Video
…that said TV & Digital together are even better
$0
$10
$20
$30
$40
$50
$60
$70
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00
TVSpend($MM)
Digital ROI

30. TODAY’S AGENDA
Introduction: Turner Research Summary
The Un-building of Brands
Executing High-performance Campaigns
Right-sizing Media Spend

31. A 10% SHIFT IN SHARE OF SPENDING FROM PROMOTIONS TO
MEDIA CAN SUBSTANTIALLY IMPROVE MARKETING ROI
Promo Effectiveness
Incremental
Subsidized
Share of Marketing Spend
$1.14
$0.88
$1.25
$1.09
Media Promo
Optimized ROI

32. FINDINGS
• Media ROI beats Promo ROI in both the short and long term but spending is
heavily tilted towards trade
- Trend is consistent across CPG categories
- High Promotional investment also negatively impacts brand equity
• Larger brands and brands with higher penetration generate the most Media ROI
however Media is important for smaller brands as improvement in Media ROI is
related to better growth for them
• As expected Media generates higher ROI among more involved categories where
the messaging resonates more
• TV is highly synergistic to digital and more investment in TV helps boost digital
performance

33. THANK YOU
Bhanu Bhardwaj, IRI
bhanu.bhardwaj@iriworldwide.com
Joy Joseph, IRI
Joy.Joseph@iriworldwide.com