BrandScience Retail and FMCG Study
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Transcript of BrandScience Retail and FMCG Study
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Findings on the effectiveness of Outdoor advertising from Econometric studies conducted by BrandScience
- Retailers (and highlights from FMCG study)
21 September 2009
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Agenda
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Retailer Meta Analysis: Key questions to be answered
Question answeredHow effective is Outdoor advertising for Retailers? How does the efficiency of Outdoor compare with other media?How does the efficiency of Outdoor advertising change at different levels of spend?How does Outdoor advertising impact on the performance of other media channels?Is Outdoor advertising becoming more or less efficient over time?What are the implications for budget allocation by media?
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Agenda
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BrandScience Results Vault The BrandScience Results Vault collates data from over 400 econometric studies conducted by BrandScience to provide a unique insight into how different media drive sales independently, and in combination with other media.The Results Vault contains: 71 Retail studies 57 of the Retail studies have Outdoor advertising spend34 of the Retail studies have a measured Outdoor effectThe Results Vault allows for detailed examination of media performance by channel and sector and contains lots of findings on how Outdoor advertising works:AbsolutelyRelative to and in synergy with other mediaOver timePartly due to poor data quality, the impact of Outdoor could not be measured in 40% of studies. The comparable figure is 4% of studies for TV and 10% for Print
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Retailer ATL Media Mix: Studies in the BrandScience Results Vault are fairly representative of the UK: Outdoor makes up 9% of ATL media spend for Retailers in the Results Vault compared to the UK Norm of 6%
BrandScience Results Vault*:ALL Retail StudiesNielsen Media ResearchTop 100 UK Retailers*Sample Set: Retail Results Vault studies as at 15th May 2009
Chart1
0.5
0.36
0.0915419027
0.0365876317
0.0076202352
Sales
Sheet1
Sales
TV50%
Print36%
Outdoor9%
Radio4%
Cinema1%
To resize chart data range, drag lower right corner of range.
Chart1
0.52
0.35
0.06
0.07
0.0028884258
Sales
Sheet1
Sales
TV0.52
Print0.35
Outdoor0.06
Radio0.07
Cinema0.00
To resize chart data range, drag lower right corner of range.
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Retailer TOTAL Media Mix: Studies in the BrandScience Results Vault are fairly representative of the UK: Outdoor makes up 6% of total media spend for Retailers in the Results Vault compared to the UK Norm of 5%
BrandScience Results Vault*:ALL Retail StudiesNielsen Media ResearchTop 100 UK Retailers*Sample Set: Retail Results Vault studies as at 15th May 2009
Chart1
0.444856447
0.2974492845
0.052506943
0.0599124882
0.0024759619
0.0109242768
0.1318745987
Sales
Sheet1
Sales
TV44%
Print30%
Outdoor5%
Radio6%
Cinema0%
Online1%
DM13%
TVPrintOutdoorRadioOnlineCinemaDM
0.4448564470.29744928450.0525069430.05991248820.01092427680.00247596190.1318745987
Chart1
0.3512356981
0.2718541663
0.0617065816
0.0269041412
0.0053506615
0.1319130724
0.1482085229
Sales
Sheet1
Sales
TV35%
Print27%
Outdoor6%
Radio3%
Cinema1%
Online13%
DM15%
Retailer Total (ATL & BTL) media mix Results Vault
TVPrintOutdoorRadioOnlineCinemaDM
0.35123569810.27185416630.06170658160.02690414120.13191307240.00535066150.1482085229
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What types of Retail clients are we studying?57 of the 71 retailers spend on outdoorThe majority of the cases are UK firms with 80% being top 5 in their category
Chart1
0.8275862069
0.1724137931
Sales
Percentage Split of Firm Types
Sheet1
Sales
Bricks and Mortar0.8275862069
Online Retailers0.1724137931
3rd Qtr1.4
4th Qtr1.2
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Agenda
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FMCG: TV is only 5% more efficient than Outdoor advertisingSample Set: All FMCG Results Vault studies (2002 -2008) with measured Outdoor RROI
Chart1
0.1
0.14
0.3
0.37
0.38
1.25
1.31
Series 1
Revenue ROI
Sheet1
Series 1Series 2Series 3
Cinema0.12.42
Radio0.144.42
Online0.31.83
DM0.37
Print0.38
Outdoor1.25
TV1.31
To resize chart data range, drag lower right corner of range.
MediumROIIndex
Cinema Average Revenue ROI0.0584210526Cinema0.05842105269.9532440915
Radio Average Revenue ROI0.1868421053Radio0.186842105331.8324473195
Online Average Revenue ROI0.3436842105Online0.343684210558.5537692948
Newspapers Average Revenue ROI0.3115789474
Magazines Average Revenue ROI0.4321052632Print0.371842105363.3510536092
Direct Mail Average Revenue ROI0.4842105263DM0.484210526382.4953564337
Outdoor Average Revenue ROI1.2768421053Outdoor1.2768421053217.5366681611
Non DR TV Average RROI1.3868421053TV1.3868421053236.2774610901
0.5869548872
Chart1
0.00743055560.04111111110.03451515150.030.19536574070.310.37
Cinema
Radio
Online
DM
Print
Outdoor
TV
Sheet1
Series 1Series 2Series 3
Cinema1%4.42
Radio4%1.83
Online3%
DM3%
Print20%
Outdoor31%
TV37%
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0.07398%
0.177319%
0.06687%
0.496153%
0.130114%
ROIIndex
Cinema0.05842105269.9532440915
MediumRadio0.186842105331.8324473195
Cinema Average Revenue ROI0.0584210526Online0.343684210558.5537692948
Radio Average Revenue ROI0.1868421053
Online Average Revenue ROI0.3436842105Print0.371842105363.3510536092
Newspapers Average Revenue ROI0.3115789474DM0.484210526382.4953564337
Magazines Average Revenue ROI0.4321052632Outdoor1.2768421053217.5366681611
Direct Mail Average Revenue ROI0.4842105263TV1.3868421053236.2774610901
Outdoor Average Revenue ROI1.2768421053
Non DR TV Average RROI1.38684210530.5869548872
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FMCG: If production costs are included, Outdoor becomes the most efficient mediumSample Set: All FMCG Results Vault studies (2002 -2008) with measured Outdoor RROI
Chart1
0.0856
0.1209
0.25872
0.34003
0.34922
1.1525
1.12136
Series 1
Revenue ROI
Sheet1
Series 1Series 2Series 3
Cinema0.092.42
Radio0.124.42
Online0.261.83
DM0.34
Print0.35
Outdoor1.15
TV1.12
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Radio0.13
Online0.28
Print0.35
Outdoor1.15
TV1.12
MediumROIIndex
Cinema Average Revenue ROI0.0584210526Cinema0.05842105269.9532440915
Radio Average Revenue ROI0.1868421053Radio0.186842105331.8324473195
Online Average Revenue ROI0.3436842105Online0.343684210558.5537692948
Newspapers Average Revenue ROI0.3115789474
Magazines Average Revenue ROI0.4321052632Print0.371842105363.3510536092
Direct Mail Average Revenue ROI0.4842105263DM0.484210526382.4953564337
Outdoor Average Revenue ROI1.2768421053Outdoor1.2768421053217.5366681611
Non DR TV Average RROI1.3868421053TV1.3868421053236.2774610901
0.5869548872
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FMCG: Outdoor ROI increases with proportion of spendSample Set: All FMCG Results Vault studies (2002 -2008) with measured Outdoor RROI
Chart1
0.93
1.25
1.6
Category 1
Average Outdoor ROI
Outdoor ROI Vs Outdoor Spend
Sheet1
Below median (9% )Median (31%)Above median (50%)
Category 1$0.93$1.25$1.60
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FMCG: Increasing share of spend on Outdoor boosts the ROI on other main mediaSample Set: All Results Vault studies (2002 -2008) with measured Outdoor RROI
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Higher Outdoor spend drives higher carryover rates (lagged effect of advertising). 1) For Outdoor 2) for TVSample Set: All FMCG Results Vault studies (2002 -2008) with measured Outdoor RROI
Chart1
0.3874773322
0.5427777778
Series 1
Outdoor spend
Outdoor Carryover rate
Outdoor weekly carryover rate
Sheet1
Series 1Series 2Series 3
Below Median39%2.42
Above Median54%4.42
38%0.95227272731.83
2%0.09
7%0.52
38%0.95
Chart1
0.5452043016
0.584036
Series 1
Outdoor spend
TV Weekly Carryover rate
TV weekly carryover rate
Sheet1
Series 1Series 2Series 3
Below Median55%2.42
Above Median58%4.42
38%0.95227272731.83
2%0.09
7%0.52
38%0.95
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Outdoor is becoming more efficient, whereas TV is becoming less efficient Sample Set: All FMCG Results Vault studies (2002 -2008)
Chart1
0.4321428571
0.4778571429
0.6878571429
0.75
Outdoor RROI
Year
Outdoor Revenue ROIs
Sheet1
Outdoor RROISeries 2Series 3
20050.43214285712.42
20060.47785714294.42
20070.68785714291.83
20080.75
2%0.09
7%0.52
38%0.95
Chart1
0.933559322
0.9375625
0.7003703704
0.53828902
TV RROI
Year
TV Revenue ROIs
TV RROI
Sheet1
TV RROISeries 2Series 3
20050.932.42
20060.944.42
20070.701.83
20080.54
2%0.09
7%0.52
38%0.95
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Outdoor optimal share of spend should be 16%We can apply ROI by medium by year figures to determine optimal media split for the average FMCG brand
Chart1
0.6
0.16
0.16
0.03
0.02
0.03
Sales
Recommended Media Split 2008
Sheet1
Sales
TV0.6
Print0.16
Outdoor0.16
Radio0.03
Cinema0.02
Online0.03
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0.620.6014
0.160.1552
0.160.1552
32.91
32.91
Chart1
0.69
0.12
0.1
0.04
0.04
0.01
Sales
Actual 2008 Media Split Top 250 Wider FMCG
Sheet1
Sales
TV0.69
Print0.12
Outdoor0.1
Radio0.04
Cinema0.04
Online0.01
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Agenda
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Outdoor performs just as well as TV and both media are second only to PrintIncremental Sales revenue generated for each 1 of media costSample Set: Retail Results Vault studies as at 15th May 2009
Chart1
0.44
3.001632953
6.2348511709
2.2268072714
3.5731860262
3.5685100402
1.6876414521
Series 1
RROI
Retail Studies with a measured Outdoor effect
Sheet1
Series 1
Cinema0.44
Radio3.001632953
Print6.2348511709
Online2.2268072714
TV3.5731860262
Outdoor3.5685100402
DM1.6876414521
To resize chart data range, drag lower right corner of range.
Chart1
0.010.040.240.240.240.10.14
Cinema
Radio
Print
Online
TV
Outdoor
DM
Average % media mix
1%
4%
Sheet1
Series 1Series 2Series 3
Cinema1%
Radio4%4.42
Print24%1.83
Online24%
TV24%
Outdoor10%
DM14%
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RROI calculations are often based on media space costs and exclude production costs which can be a sizeable percentage of total ad spend TV production costs make up for a larger share of spend than any other mediumSource: WARC
ATL MediaProduction Costs as a percentage of media/production totalTV 14.4%Print8.1%Outdoor7.8%Internet7.6%Radio7%
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RROI calculations are based solely on media space costs and exclude production costs - which can be a sizeable percentage of total spendIncremental Sales revenue generated for each 1 of media and productioncostSample Set: Retail Results Vault studies as at 15th May 2009
Chart1
0.010.040.240.240.240.10.14
Cinema
Radio
Print
Online
TV
Outdoor
DM
Average % media mix
1%
4%
Sheet1
Series 1Series 2Series 3
Cinema1%
Radio4%4.42
Print24%1.83
Online24%
TV24%
Outdoor10%
DM14%
To resize chart data range, drag lower right corner of range.
Chart1
0.41
2.81
5.73
2.06
3.06
3.29
1.55
Series 1
RROI including production costs
Retail Studies with a measured Outdoor effectand incl. production costs
Sheet1
Series 1
Cinema0.41
Radio2.81
Print5.73
Online2.06
TV3.06
Outdoor3.29
DM1.55
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The Print, DM and Radio RROIs are far higher when Outdoor is used Sample Set: Retail Results Vault studies as at 15th May 2009+34%+61%+84%
Chart1
1.6116160913
1.5282199073
4.2814593216
4.4399849008
3.2213877079
0
0.9565258333
Series 1
RROI incl. production costs
Non-Outdoor spenders
N/A
Sheet1
Series 1
Cinema1.6116160913
Radio1.5282199073
Print4.2814593216
Online4.4399849008
TV3.2213877079
Outdoor0
DM0.9565258333
To resize chart data range, drag lower right corner of range.
TVPrintOutdoorRadioOnlineCinemaDM
3.22138770794.28145932161.52821990734.43998490081.61161609130.9565258333
Chart1
0.41
2.81
5.73
2.06
3.06
3.29
1.55
Series 1
RROI incl. production costs
Outdoor spenders with a measured Outdoor effect
Sheet1
Series 1
Cinema0.41
Radio2.81
Print5.73
Online2.06
TV3.06
Outdoor3.29
DM1.55
To resize chart data range, drag lower right corner of range.
Chart1
0.010.040.240.240.240.10.14
Cinema
Radio
Print
Online
TV
Outdoor
DM
Average % media mix
1%
4%
Sheet1
Series 1Series 2Series 3
Cinema1%
Radio4%4.42
Print24%1.83
Online24%
TV24%
Outdoor10%
DM14%
To resize chart data range, drag lower right corner of range.
Chart1
0.010.080.20.050.6Series 10.07
Cinema
Radio
Print
Online
TV
Outdoor
DM
Average % media mix
1%
4%
Sheet1
Series 1Series 2Series 3
Cinema1%
Radio8%4.42
Print20%1.83
Online5%
TV60%
Outdoor
DM7%
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Outdoor RROI increases slightly as spend increases, implying there is room for retailers to increase their share of spend on OutdoorSample Set: Retail Results Vault studies as at 15th May 2009+22%
Chart1
3.2125835981
3.5685100402
3.9244364823
Series 1
Outdoor spend
Outdoor RROI incl. production costs
Outdoor RROI vs. Outdoor spend Retailers with measured Outdoor effect
Sheet1
Series 1
Below Median3.21(0.19m pa)
Median3.57(0.95m pa)
Above Median3.92(1.71m pa)
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Outdoor Carryover rate increases significantly as spend increases, implying there is room for retailers to increase their share of spend on OutdoorSample Set: Retail Results Vault studies as at 15th May 2009+145%
Chart1
0.1967725333
0.3440908121
0.4914090909
Series 1
Outdoor spend
Outdoor weekly Carryover rate
Outdoor Carryover rate vs. Outdoor spendRetailers with a measured Outdoor effect
Sheet1
Series 1
Below Median20%(0.19m pa)
Median34%(0.95m pa)
Above Median49%(1.71m pa)
Outdoor carryover rate for Below median spend on OutdoorOutdoor carryover rate for Above median spend on OutdoorOutdoor carryover rate for median spend on Outdoor
20%49%34%
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Lifeof campaign vs. Outdoor spendBased on time taken for advertising to have 95% of its total effect
Sample Set: Retail Results Vault studies as at 15th May 2009+131%
Chart1
13
19
29
Series 1
Outdoor spend
Days (duration of measured sales uplift)
Time period over which sales are generated vs. Outdoor spend
13 days
19 days
30 days
Sheet1
Series 1
Below Median13(0.19m pa)
Median19(0.95m pa)
Above Median29(1.71m pa)
Outdoor carryover rate for Below median spend on OutdoorOutdoor carryover rate for Above median spend on OutdoorOutdoor carryover rate for median spend on Outdoor
20%49%34%
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Increased spend on Outdoor boosts the RROI on TV and Print Sample Set: Retail Results Vault studies as at 15th May 2009+19%+28%
Chart1
3.2536764909
3.8696686024
Series 1
Outdoor spend
TV RROI
TV RROI vs. Outdoor spendRetailers with a measured Outdoor effect
Sheet1
Series 1
Below Median3.25(0.19m pa)
Above Median3.87(1.71m pa)
3.25367649093.87
To resize chart data range, drag lower right corner of range.
Chart1
5.3295445441
6.820896847
Series 1
Outdoor spend
Print RROI
Print RROI vs. Outdoor spendRetailers with a measured Outdoor effect
Sheet1
Series 1
Below Median5.33(0.19m pa)
Above Median6.82(1.71m pa)
5.32954454416.82
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Higher spend on Outdoor is associated with a higher carryover rate on TV and PrintSample Set: Retail Results Vault studies as at 15th May 2009+18%+50%
Chart1
0.49
0.58
Series 1
Outdoor spend
TV weekly carryover rates
TV Carryover rate vs. Outdoor spendRetailers with a measured Outdoor effect
Sheet1
Series 1
Below Median49%(0.19m pa)
Above Median58%(1.71m pa)
3.25367649093.87
To resize chart data range, drag lower right corner of range.
Chart1
0.3552056621
0.5370638889
Series 1
Outdoor spend
Print weekly carryover rates
Print Carryover rate vs. Outdoor spendRetailers with a measured Outdoor effect
Sheet1
Series 1
Below Median36%(0.19m pa)
Above Median54%(1.71m pa)
5.32954454416.82
Print carryover rate for Below median spend on OutdoorPrint carryover rate for Above median spend on Outdoor
0.35520566210.54
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Higher Outdoor spend elongates the life of TV and Print campaignsBased on time taken for advertising to have 95% of its total effect
Sample Set: Retail Results Vault studies as at 15th May 2009+30%+62%
Chart1
30
39
Series 1
Outdoor spend
Days (duration of measured sales uplift)
Time period over which sales are generated from TV ads.vs. Outdoor spend
30 days
39 days
Sheet1
Series 1
Below Median30(0.19m pa)
Above Median39(1.71m pa)
3.25367649093.87
To resize chart data range, drag lower right corner of range.
Chart1
0.3552056621
0.5370638889
Series 1
Outdoor spend
Days (duration of measured sales uplift)
Time period over which sales are generated from Print ads.vs. Outdoor spend
21 days
34 days
Sheet1
Series 1
Below Median36%(0.19m pa)
Above Median54%(1.71m pa)
5.32954454416.82
Print carryover rate for Below median spend on OutdoorPrint carryover rate for Above median spend on Outdoor
0.35520566210.54
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Trends in RROI over time: 1) Major Media vs Outdoor*Two year moving averageSample Set: Retail Results Vault studies as at 15th May 2009
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Trends in RROI over time: 2) Support Media vs Outdoor
*Two year moving averageSample Set: Retail Results Vault studies as at 15th May 2009
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Agenda
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Summary of findings for Retailers and FMCG study
*****Retailers in the BrandScience Results Vault spend a smaller share of their budgets on TV advertising (35%) compared to the UK norm (44%) and a larger share on Online (13%) compared to the UK average of 1%. Share of spend on Outdoor is comparable (6% for Retailers in the Results Vault vs. the UK average of 5%).When ROI is based on the cost of the media space only (i.e. excluding production costs), TV is more efficient than outdoor. *By including production costs as well as media space costs in the ROI calculation, Outdoor ROIs are higher than that of TV.*Outdoor ROI increases as spend on outdoor increases.*Large outdoor campaigns appears to make TV and Print adverts more efficient. *The sales response to outdoor advertising lasts longer for big spenders (those spending above median level) on outdoor.
Large outdoor campaigns help to extend the life of a TV campaign*Outdoor is becoming more efficient over time whilst TV ROI is in decline (this could be due to the popularity of tools such as Sky+ which allow viewers to evade TV adverts).*Recommended share of spend on Outdoor is 16% of ATL spend****Strong synergies do not exist between Online and Outdoor because most of the retailers studied do not integrate their Online messages (aimed at driving customers to their websites) with their brand building Outdoor messages.
***********