Tracking Encoded Television Ads with PPM Are Half My Advertising Dollars Wasted?
John Wanamaker “ Half the money I spend on advertising is wasted, the trouble is I don’t know which half”
How does advertising work?  <ul><li>For all of advertising’s history, the only way to determine the success of an advertis...
How does advertising work?  <ul><li>Measure changes in perceptions  </li></ul>
How does advertising work?  Dates of Campaign “ The Book” For Radio…
The Role of the CMO (Chief Marketing Officer) <ul><ul><li>A position that didn’t even exist 20 years ago </li></ul></ul><u...
With new technologies… A revolution in the measurement of advertising and marketing effectiveness is at hand
For media advertising… The PPM enables the revolution
What PPM always does: Encoded Audio
What PPM is already doing: Encoded Audio Encoded Audio
What PPM might do in the future: Encoded Audio Encoded Audio Product Encoding
For this experiment, we encoded  a radio station’s TV spot Encoded Audio Television Commercial for a Radio Station
What this allows us to do: <ul><ul><li>Determine who in the PPM panel viewed the commercials </li></ul></ul><ul><ul><li>Ho...
Philadelphia
Context of B101’s campaign: <ul><ul><li>Coming right on the heels of their astoundingly successful Christmas music program...
8,634 Detections! Almost exactly an average of three detections per Philadelphia PPM panelist
Who saw the B101 spot?
What portion of Philadelphia saw at least one commercial in the campaign? Week January - March 2008 # of Respondents seein...
Number of B101 spots seen Number of Spots Seen # of Respondents One respondent saw the ad  thirty-six times in these 12 we...
Who saw the B101 spot? (Women 25-54) Base: Women 25-54
Number of B101 spots seen (Women 25-54) Number of Spots Seen # of Respondents Base: Women 25-54
Number of B101 spots seen over time Week January - March 2008 # of Respondents One Two Three Four Five +
People who saw the ad spent  a little more time with B101 Average Quarter Hours (AQH) Didn’t see any spots Any Detections
People who saw the ad  more  spent more time with B101 Average Quarter Hours (AQH) Didn’t see any spots 5+ Detections
Three Classifications of  B101 Listeners B101 Light/Non-Listeners B101 Moderate Listeners B101 Heavy Listeners 0-9 QHR in ...
Heavy listeners to B101 accounted for most QHs in week 1
B101 Listening by classification during the campaign  Week AQH Heavy Listeners Moderate Listeners Light/Non-Listeners 4.1 ...
By the end of the campaign, previously ‘moderate’ listeners were contributing more   Week 1 Week 12
B101’s first preference AQH showed moderate growth through first quarter P1 AQH to B101 Jan Feb Mar Did the TV spot help r...
B101 Listening  (45-54 year-old male panelist) Week (0 spots seen) AQH (1 spot seen) (2 spots seen) (3 spots seen) (3 spot...
Philadelphia
Context of the WJJZ spot: <ul><ul><li>A newer frequency for a previously well-established brand </li></ul></ul><ul><ul><li...
5,121 Detections Just under an average of two detections per panelist in Philadelphia
Who saw the WJJZ spot?
Only a small portion of those exposed  to the WJJZ ad tried the station Base: Saw at least one ad
Lessons learned about brand building from packaged goods marketers <ul><li>'If Brands Are Built Over Years, Why Are They M...
Beware of focusing all marketing resources on the short term “pop” <ul><li>In 1993, as store-level scanning data started t...
Beware of focusing all marketing resources on the short term “pop” <ul><li>Lodish insisted there are other long-term measu...
Beware of focusing all marketing resources on the short term “pop” <ul><li>Short-term sales data tracking promotional effe...
The need for short term behavioral data AND brand/perceptual data <ul><li>The authors note that the nature of the data its...
The importance on long term  brand power data <ul><li>In the process of researching their paper, Lodish and Mela visited m...
How Clorox turned around profits with brand building advertising <ul><li>“ Prior to 2005, Clorox was trapped in an endless...
Balancing short term & long term <ul><li>&quot;Short-term oriented measures, such as sales, should be supplemented with lo...
'If Brands Are Built Over Years, Why Are They Managed Over Quarters?' <ul><ul><li>Marketing success cannot be totally meas...
Other kinds of possible analyses <ul><ul><li>Get the local television station to encode their news programming and their r...
Some early conclusions <ul><ul><li>In an historic first, we now have the ability to look directly at marketing exposure an...
Next Steps <ul><ul><li>More stations should encode their television spots so we can build a normative database of radio ma...
Tracking Encoded Television Ads with PPM Are Half My Advertising Dollars Wasted?
Upcoming SlideShare
Loading in …5
×

Tracking Encoded Television Ads With PPM

4,412 views

Published on

Department store magnate John Wanamaker once famously said: “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.” In this breakthrough study, Edison Media and Arbitron have encoded the TV commercials run by radio stations and matched them against PPM listenership. Does a television commercial get non-users to try a radio station? Does it turn lighter listeners into heavier ones? They also looked at other marketing efforts in an attempt to finally crack the code of what “really works.” For the first time: real answers on how to best deploy your station’s resources.

Published in: Business, News & Politics
  • Be the first to comment

Tracking Encoded Television Ads With PPM

  1. Tracking Encoded Television Ads with PPM Are Half My Advertising Dollars Wasted?
  2. John Wanamaker “ Half the money I spend on advertising is wasted, the trouble is I don’t know which half”
  3. How does advertising work? <ul><li>For all of advertising’s history, the only way to determine the success of an advertising effort was to line up alternative sets of data </li></ul>Dates of Campaign Cash Receipts
  4. How does advertising work? <ul><li>Measure changes in perceptions </li></ul>
  5. How does advertising work? Dates of Campaign “ The Book” For Radio…
  6. The Role of the CMO (Chief Marketing Officer) <ul><ul><li>A position that didn’t even exist 20 years ago </li></ul></ul><ul><ul><li>Often moved from finance into marketing </li></ul></ul><ul><ul><li>INSIST in measurement and discrete “ROI (return on investment)” computations for all expenditures </li></ul></ul><ul><ul><li>Won’t accept the notion that you just ‘have to advertise’…he or she needs to see it ‘working’ </li></ul></ul><ul><ul><li>The CMOs are pushing innovation in marketing and advertising measurement and analysis </li></ul></ul>
  7. With new technologies… A revolution in the measurement of advertising and marketing effectiveness is at hand
  8. For media advertising… The PPM enables the revolution
  9. What PPM always does: Encoded Audio
  10. What PPM is already doing: Encoded Audio Encoded Audio
  11. What PPM might do in the future: Encoded Audio Encoded Audio Product Encoding
  12. For this experiment, we encoded a radio station’s TV spot Encoded Audio Television Commercial for a Radio Station
  13. What this allows us to do: <ul><ul><li>Determine who in the PPM panel viewed the commercials </li></ul></ul><ul><ul><li>How many times did they see the commercials? </li></ul></ul><ul><ul><li>Analyze changes in listening behaviors among those who saw the television commercials </li></ul></ul><ul><ul><ul><li>Immediate changes </li></ul></ul></ul><ul><ul><ul><li>Changes over time </li></ul></ul></ul>
  14. Philadelphia
  15. Context of B101’s campaign: <ul><ul><li>Coming right on the heels of their astoundingly successful Christmas music programming </li></ul></ul><ul><ul><li>For a station which has advertised consistently, and consistently aggressively, for years </li></ul></ul><ul><ul><li>As of the dates of this campaign, B101 had no direct competition in the “Adult Contemporary” marketplace </li></ul></ul>
  16. 8,634 Detections! Almost exactly an average of three detections per Philadelphia PPM panelist
  17. Who saw the B101 spot?
  18. What portion of Philadelphia saw at least one commercial in the campaign? Week January - March 2008 # of Respondents seeing B101 Spot at least once 62% of panelists saw at least one spot during the campaign 26% 53% 61%
  19. Number of B101 spots seen Number of Spots Seen # of Respondents One respondent saw the ad thirty-six times in these 12 weeks!
  20. Who saw the B101 spot? (Women 25-54) Base: Women 25-54
  21. Number of B101 spots seen (Women 25-54) Number of Spots Seen # of Respondents Base: Women 25-54
  22. Number of B101 spots seen over time Week January - March 2008 # of Respondents One Two Three Four Five +
  23. People who saw the ad spent a little more time with B101 Average Quarter Hours (AQH) Didn’t see any spots Any Detections
  24. People who saw the ad more spent more time with B101 Average Quarter Hours (AQH) Didn’t see any spots 5+ Detections
  25. Three Classifications of B101 Listeners B101 Light/Non-Listeners B101 Moderate Listeners B101 Heavy Listeners 0-9 QHR in week one 10-19 QHR in week one 20+ QHR in week one
  26. Heavy listeners to B101 accounted for most QHs in week 1
  27. B101 Listening by classification during the campaign Week AQH Heavy Listeners Moderate Listeners Light/Non-Listeners 4.1 7.3
  28. By the end of the campaign, previously ‘moderate’ listeners were contributing more Week 1 Week 12
  29. B101’s first preference AQH showed moderate growth through first quarter P1 AQH to B101 Jan Feb Mar Did the TV spot help re-gather the core after Xmas music?
  30. B101 Listening (45-54 year-old male panelist) Week (0 spots seen) AQH (1 spot seen) (2 spots seen) (3 spots seen) (3 spots seen)
  31. Philadelphia
  32. Context of the WJJZ spot: <ul><ul><li>A newer frequency for a previously well-established brand </li></ul></ul><ul><ul><li>Attempting to gain trial (“cume”) by making consumers aware that the station is now at a new frequency </li></ul></ul><ul><ul><li>Note: 15 second spot (vs. :30 for B101) </li></ul></ul>
  33. 5,121 Detections Just under an average of two detections per panelist in Philadelphia
  34. Who saw the WJJZ spot?
  35. Only a small portion of those exposed to the WJJZ ad tried the station Base: Saw at least one ad
  36. Lessons learned about brand building from packaged goods marketers <ul><li>'If Brands Are Built Over Years, Why Are They Managed Over Quarters?' </li></ul><ul><li>Published: August 22, 2007 in Knowledge@Wharton </li></ul>
  37. Beware of focusing all marketing resources on the short term “pop” <ul><li>In 1993, as store-level scanning data started to become widely available, Wharton marketing professor Leonard Lodish coauthored an article outlining the power of this technology to gauge the effect of price promotions on revenue </li></ul><ul><li>Lodish warned that while these tools could be an effective way to measure the impact of discounting, they were not the only determinant of brand power </li></ul>
  38. Beware of focusing all marketing resources on the short term “pop” <ul><li>Lodish insisted there are other long-term measures that may not be as easy to collect, but are just as important, perhaps more important, to sales, market share and stock price over time </li></ul><ul><li>Brand managers heard the first part loud and clear. The second part? No so much. </li></ul><ul><li>&quot;People will go toward what is easy and precise, and shy way from the more difficult and complex,&quot; says Lodish. &quot;It's human nature.&quot; </li></ul>
  39. Beware of focusing all marketing resources on the short term “pop” <ul><li>Short-term sales data tracking promotional effects don't capture deeper impacts. The paper cites a study by Information Resources, Inc. (IRI), which reviewed 24 brands in Europe over a three-year period ending in 2005. The study found that the total impact of discounts was actually only 80% of their short-term effect, while the total effect of advertising could be as much as 60% greater than short-term measures would suggest. </li></ul>
  40. The need for short term behavioral data AND brand/perceptual data <ul><li>The authors note that the nature of the data itself has an impact on marketing decisions that can actually impair brands over time. When asked why, the managers said they are judged by quarterly sales, and that investors focus on those numbers because the link between discounts and quarterly sales is clear. “Thus, hard numbers drive out soft, leading managers to manage brands by the data they have, not the data they need,” the researchers write in their paper. </li></ul>
  41. The importance on long term brand power data <ul><li>In the process of researching their paper, Lodish and Mela visited many companies and were astonished by the lack of longitudinal data collected by the firms. Many kept only 52 weeks of information. Furthermore, the researchers note, major data suppliers typically discard data after five years, while at the same time developing the capability to process hour-by-hour data. </li></ul><ul><li>The authors acknowledge that hourly data will be useful as a way to monitor stock-outs. &quot;However,&quot; they continue, &quot;it is difficult to imagine that local stock-outs affect market capitalization in the same way as brand equity, which often takes more than five years to build.&quot; </li></ul>
  42. How Clorox turned around profits with brand building advertising <ul><li>“ Prior to 2005, Clorox was trapped in an endless cycle of discounting its flagship bleach product. </li></ul><ul><li>Clorox changed its strategy and reduced discounting while increasing advertising to build long-term loyalty and diminish consumer response to price. </li></ul><ul><li>Initially, profits were down, but rebounded by the first half of 2006 along with long-term prospects for brand pricing power.” </li></ul>
  43. Balancing short term & long term <ul><li>&quot;Short-term oriented measures, such as sales, should be supplemented with long-term metrics to obtain a more complete view of brand performance,&quot; the authors write. </li></ul><ul><li>&quot;We believe this would offer a major step to redressing the weakening state of brands evidenced in recent years, increase our understanding of how strong brands can be built, and help firms do a better job of 'owning' their customers.&quot; </li></ul>
  44. 'If Brands Are Built Over Years, Why Are They Managed Over Quarters?' <ul><ul><li>Marketing success cannot be totally measured by the short term measure of “popping” a month or a quarter </li></ul></ul><ul><ul><li>Radio brands need to be tracked over the long term via branding measures for key images </li></ul></ul>
  45. Other kinds of possible analyses <ul><ul><li>Get the local television station to encode their news programming and their radio ads for the news </li></ul></ul><ul><ul><li>Look at your own promo spots for special programming and see if they succeed in pushing listenership to those shows </li></ul></ul>
  46. Some early conclusions <ul><ul><li>In an historic first, we now have the ability to look directly at marketing exposure and audience shifts </li></ul></ul><ul><ul><li>It is premature to draw overly broad conclusions, however, the data suggests: </li></ul></ul><ul><ul><ul><li>The B101 campaign may have helped restore P1 AQH after Christmas music </li></ul></ul></ul><ul><ul><ul><li>The TV seems to have increased AQH among ‘moderate’ listeners </li></ul></ul></ul>
  47. Next Steps <ul><ul><li>More stations should encode their television spots so we can build a normative database of radio marketing “cause and effect” </li></ul></ul><ul><ul><ul><li>Different buying strategies </li></ul></ul></ul><ul><ul><ul><li>Different creative </li></ul></ul></ul><ul><ul><ul><li>Different competitive situations </li></ul></ul></ul><ul><ul><li>Television stations and networks should encode their radio spots for the same analysis </li></ul></ul>
  48. Tracking Encoded Television Ads with PPM Are Half My Advertising Dollars Wasted?

×