Golden rules tmre

Confidential and Proprietary – Not for Public Distribution – Do Not Copy 1

Client Logo Goes Here

The Golden Rules of Measuring CPG Advertising Performance


An Introduction to Today’s Presenters

Marc Ryan, Co-CEO, InsightExpress

InsightExpress a leading provider of media analytics and marketing accountability solutions for brand marketers

Phil Ripperger, Vice President New Media Solutions, IRI IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action.

Confidential and Proprietary – Not for Public Distribution – Do Not Copy 3 Confidential and Proprietary – Not for Public Distribution – Do Not Copy

Golden Rule: Frequency is crabgrass


- Erwin Ephron

“Frequency – contacting one consumer three times with a message, is not as good as reach – contacting three consumers once, because that one consumer will be far less likely to need that product than any of the other three.”


Diminishing Returns on Upper Funnel

0.0%

1.0%

2.0%

3.0%Lift in Brand Awareness

29%

46% 57%

7%

54%

• Upper funnel metrics move the most at a single exposure.

• Multiple exposures has less of a net benefit to the brand than does finding an unexposed viewer.


0.0%

1.0%

2.0%

3.0%

Oversaturated Returns on Lower Funnel

Lift in Message Association

54%

35%

69%

4%

108% • Lower funnel metrics move sparingly at most frequency levels with the exception of the highest bounds.

• Seeking out 16+ exposures may not be worth the expense vs. finding new viewers.


Golden Rule: Measure the Multiple Return Objectives


Advertising is Multi-dimensional


Back to computer to check retailer ads

Opens Shopkick app and checks in at Target; excited to use coupons she printed when directed to Healthy Essentials website

At back yard barbecue posts picture on Instagram “#PepsiNext rocks”

Digital channels have disrupted consumer behavior and the traditional path-to-purchase

5

2 4

1

6

7

8

9

Purchase made from Target Cartwheel Completes list

and chooses because a pop-up appeared with a customized shopping list

Checks “Just for U” app for coupons; nothing relevant

Grabs phone to add baby items to shopping list app

Consumer watches Beyonce video that one of her friends liked on Facebook

Sees ad online while reading entertainment content

3


Advertising Effect is Multi-dimensional

The complete picture of how advertising works is not always apparent by isolating your measurement to one part of the Total ROI funnel.


Peanut Butter Example

10.0%

12.4% 12.8%

23.4%

20.3%

10.8%

14.1%

7.1%

16.1%

18.1%

6.9%

13.9%14.6%

22.5%23.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Control Online ONLY

Print ONLY

Radio ONLY

TV ONLY

Online + TV

Online + Print

Online + Radio

TV + Print

TV + Radio

Print + Radio

TV + Print + Radio

Online + TV + Print

Online + TV + Radio

Online + TV +

Radio +

Print

Unaided Awareness


Peanut Butter Example

$1.03 $1.16

Un-Exposed Exposed

Dollars/Household

Δ = 0.13

ROI Calculation

$0.13 / household

15,354,298 households

$1,966,059 sold

$0.94 ROI

$2,116,500 media cost

Dollars/Occasion Occasions Penetration

+23% -7.1%


Golden Rule: Choose the Right Measuring Stick


Single Source vs. Models

Single Source Measurement

• Pros:

•All media and sales effect attributable at a viewer level – no guessing.

•Quick turnaround on results and data.

•Incorporates attitudinal measures.

• Cons:

•Not all media or behavior is measureable at viewer level.

•Sample size constraints.

Modeled Measurement

• Pros:

•Most media and behavior can be incorporated.

•Few restrictions on what brands or media are measurable.

• Cons:

•Few intra-media effects.

•Long turnaround times.

•Doesn’t account for attitudinal results.

•Requires assumptions.


Modeled Measurement - Example

Matched Market Measurement

Volume % Changes by Treatment – All 4 Brands

Modeling is appropriate for determining sales lift: • Hispanic • Search Behavior • Consumables • Alcohol • Outdoor

• Brands saw positive volume sales lifts in markets where they increased search support, ranging from 1.0% to 4.2%, with the average impact 3.1%

• Brands saw an average decline of -1.3% to volume sales in markets where search was dark.

Dark Heavy Up Search


Single Source Measurement – Example: Targeting & ROI

Client Context and Objective

• Long-standing food client introduced a product extension within a very popular, health-oriented category

• Objective: increase household penetration without cannibalizing sales within the brand portfolio

Solution

• The IRI household panel was used to identify new brand buyers with a high propensity to purchase the new product by identifying buyers of: – Similar products from competitive brands – Products with similar properties within the

client’s brand – Products with similar properties among

competitor brands • Look-alike modeling was used to translate target

consumers from the IRI panel to the media partner’s database

• IRI’s panel’s purchase data was used to measure sales results post-campaign, evaluate ROAS

Results over 12 weeks

$0.27

Dollars/Household

$0.35

1.15 1.50

Occasions

4.9% 5.2%

Household Penetration

Control Group Targeted Households

6% increase in the household penetration

30% increase in occasions among exposed targeted households

30% increase in the average dollar spend per exposed buying household


Golden Rule: Creative & Media


Creative’s effect on performance

Media Creative 75% 25%


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 81 626

44049 - 14 Min (Only) 72 90 88 92 58 644

44051 - Obstacle (Only) 119 134 88 101 69 647

Interim Period - Index to Total Targeted


Creative Guidelines

• Keep it simple:

• Clutter within an ad often results in poor brand performance. This happen with competing messages in smaller ad units, or a convoluted storyline in storyline ad units (video & online display).

• Logo size & presence is important:

• For static imagery Logos should be larger than 14% or the total image size. Having the logo present and viewable in as many frames of a storyline ad unit (video & online display) greatly increases top of funnel performance.

• Ad size is important:

• For static imagery, the advertisements size relates to brand impact. The larger the percentage of the media devoted to imagery, the greater the chance of success.

• Human faces draw our attention:

• Leverage our built in gaze detection systems. Advertising with the presence of a human face performs better than without. Faces also add an element of relatability.


Golden Rule: Choose The Right Metrics


Metric Saturation

• For large brands many metrics reach a saturation point:

Quintile 1

Awareness: 1% to 58%

Average Increase:

6.0%

Quintile 2


Average Increase:

3.9%

Quintile 3


Average Increase:

3.0%

Quintile 4


Average Increase:

0.7%

Quintile 5


Average Increase:

0.4%


Customer Success: ROI

IRI’s analysis of OTC Allergy medication digital campaign helped quantify impact of various digital campaign tactics

Client Situation

• Client/agency team wanted to induce product trial and usage occasions among allergy sufferers.

• A digital campaign was launched across health-oriented and reach-based sites to reach potential buyers

Solution

• IRI’s panel’s used to measure sales results post-campaign, evaluate ROI and prove the efficacy of digital ads.

• Measure household penetration and usage occasion changes post-digital campaign to determine sales impact

• Analyze share changes differences between test branc and competitive brands to understand sales shifts due to advertising exposure

Results

• +13% in dollar sales, +6% increase in HH penetration and usage occasions

• 1 point category share decline for major competitor • $1.15 ROI

1.3% 1.9%

-1.4% -1.8% -3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

New Retained Lapsed Brand Non-Buyers

Changes in buyer type

5.8% 9.3%

HH Penetration


Golden Rule: Don’t forget the Purchase Cycle


Measure Now vs. Later

Audience

Brand

Consideration

Pre-Campaign Campaign Post Campaign

Sales Sales Sales Sales Sales

Sales Sales Sales

Sales Sales

Sales Measurement


Golden Rule: Social is not Social


Offline Beer Sales Spikes Correlate to Key Social Moments

• Beer brand baseline sales (in blue) demonstrate impact from typical advertising and in-store activity. Green

spikes demonstrate impact directly from social media activity… above and beyond typical communications.

These sales spikes correspond to the four social media events.

Beer Baseline Sales Model Fit


Golden Rule: Native Advertising Is King


Back to the future on sponsorships

TV’s first advertisements were all sponsorships where the commercial content was embedded in the program:


What is Native Advertising

Banner Tourist Resident Citizen Native

Advertising Effect Lower Higher


Paid Ads

Paid Ads

Sponsored


Native?


Summary

• Optimize Frequency for Single Exposures:

• Multiple exposures providing diminishing returns, as such an advertiser is always better off seeking an unexposed individual.

• Measure the Multiple Return Objectives of Advertising:

• Ever ad performs differently at each of the levels of the Total ROI funnel. Bias towards comprehensive measurement or you may have misleading conclusions.

• Choose the Right Tool for the Job:

• Not all advertising can be measured most effectively via models, similarly not all can be effectively measured by single source data.

• Measure Both Creative & Media:

• Creative is the most important aspect of the media plan and often the least understood. Always measure both to fully understand campaign impact.


Summary

• Choose the Right Metrics:

• Saturation can result in some metrics being less useful than others. Pick the metrics that matter for the size of the brand.

• Not all Measurement Needs to Happen in Real Time:

• In particular, sales effect is greatly influenced by purchase cycles. Measure at an appropriate interval to see the effect on the metric under measurement.

• Understand Earned vs. Organic Social Media:

• Social media is rarely social these days, it’s another broadcast medium. Understand the appropriate metrics to gauge the earning potential of your media activities.

• Push the Creative Boundaries:

• Native advertising is more impactful than typical creative types. Explore emerging Native platforms to scale media efforts with less overhead.


Thank You. Any Questions?

Phil Ripperger

VP New Media Solutions

IRI

(203) 845-6471

[email protected]

Marc Ryan

Co-CEO

InsightExpress

(203) 406-3220

[email protected]

mailto:[email protected]

mailto:[email protected]

Golden rules tmre

Business

Transcript of Golden rules tmre