'POETIC: Paid, Owned & Earned, TV's Influence Calculated' - econometric study by Thinkbox and...
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Transcript of 'POETIC: Paid, Owned & Earned, TV's Influence Calculated' - econometric study by Thinkbox and...
POETIC:Paid, Owned and Earned, Television’s Influence Calculated
Why this, why now?
Understand how TV works and how it could work better
TV advertising consistently makes other elements of campaigns work harder
TV effectiveness is also improving – marriagewith Internet tech is driving this
The new ways that we talk to each other
TV has always driven conversation
Multi-screening drives word of mouthonline
The creation of the virtual sofa
You don’t have to talk about a brand to buy it… but
Categories get a range of benefits from word of mouth
But WOM usually helps the process
Pathways to purchase are numerous
Positive word of mouth has impact
Positive WOM has impact on brand KPIs
Increasing amount of evidence
Better measurement
Where does the conversation start?
Owned (online)Web activity
Earned Media(Offline and online WoM)
Paid Media
So we set D2D the exam question….
Provide an understanding of how earned media (WoM) and owned media are driven by paid media
Demonstrate the impact on the long term health of brands versus short term metrics
Understand the specific role of TV in the process
Analysed 36 brands across finance, drinks and retail
6 retail brands17% of advertising market value*Average budget £10.7m
22 drinks brands53% of advertising market value*Average budget £2.8m
8 finance brands28% of advertising market value*Average budget £15.8m
*In terms of media spend (Nielsen spend). Average budget based on client spend over last 12 months of analysis period
Brand drivers
Offline WoM Keller Fay
Offline WoM
TVRs
DDS
TVRs
Media spend
DistributionPrice & promotions
NPD
Website visitors
Client data
Media spend
DistributionPrice & promotions
NPD
Website visitors
Economy
Seasonality
Other
Economy
Seasonality
News and PR
Online WoM
Brandwatch
Online WoM
News and PR
Fantastic depth of data from the client
Some important things to note up front
The vast majority of earned WoM takes place offline
Offline WoM tends to be morepositive in sentiment
How does paid media drive earned WoM offline and online?
Phase 1:How does paid media drive
earned WoM offline and online?
Phase 2:How do paid and earned
activity drive owned?
Phase 3:How do paid, owned and earned impact long term
brand health?
PaidMedia
Earned Media(Offline and online WoM)
Owned (online)Web activity
Brand HealthCorporate reputation
Direct effect
Direct effect
Indirect effect
Direct effect
Indirect effects
What drives word of mouth?
-20%
0%
20%
40%
60%
80%
100%
-0.03
0.59
4%
9%
8%
19%
22%
51%
9%21%
Base/market/seasonality
Product/service
Brand news, PR & events
Paid media TV
Paid media Non-TV
Competitor impact
Influenced variables
72%Paid Media
Average contribution across categories
Drivers of earned conversations – offline and online
All variables
TV advertising generates word of mouth for longer
TV
Press
Outdoor
Online
DM
Brand news
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Online WoM
Offline WoM
GRPs Base Response
Res
pons
e
Carry over effect (2 bursts of activity)
Weekly carry over effect of
85%
GRPs Base Response
Time
Carry over effect
How do paid and earned activity drive owned?
Paid Media
Earned Media
(Offline and online WoM)
Brand HealthCorporate reputation
Direct effect
Direct effect
Phase 1:How does paid media drive
earned WoM offline and online?
Phase 2:How do paid and earned
activity drive owned?
Phase 3:How do paid, owned and earned impact long term
brand health?Direct effect
Indirect effects
Indirect effect
Owned (online)
Web activity
Paid media driving owned web traffic
Series1-20%
0%
20%
40%
60%
80%
100%
-0.01
0.52
1%
2%
4%
8%
23%
47%
11%
22%
1%
2%
3%6%
6%12%
Base/market/seasonality
Product/service
Brand news, PR & events
Paid media TV
Paid media Non-TV
Competitor impact
Average contribution across categories
All variables
Owned – facebook fan page
Earned offline
Earned online
Drivers of web visitors
Influenced variables
69%Paid Media
How do paid, owned and earned impact the long term brand health?
Paid Media
Earned Media(Offline and online WoM)
Owned (online)Web activity
Brand HealthCorporate reputation
Direct effect
Direct effect
Indirect effect
Phase 1:How does paid media drive
earned WoM offline and online?
Phase 2:How do paid and earned
activity drive owned?
Phase 3:How do paid, owned and earned impact long term
brand health?
Indirect effects
TV is the key driver of corporate reputation
Series1-20%
0%
20%
40%
60%
80%
100%
-0.03
0.74
7%
24%
15%
52%
2%
7%
3%
3%3%7%
Base/market/seasonality
Product/service
Brand news, PR & events
Paid media TV
Paid media Non-TV
Competitor impactInfluenced variables
Average contribution across categories
Drivers of corporate reputation
All variables
Owned – facebook fan page
Earned offline
Earned online
59%Paid Media
Summary findings
Word of mouth can help drive business success
The vast majority of brand conversations take place offline
TV is the key paid media channel in driving word of mouth on and offline
Paid media indirectly drives owned media via word of mouth
TV generates the most significant impact in supporting long term brand health
Implications
Word of mouth can help drive business success
The vast majority of brand conversations take place offline
TV is the key paid media channel in driving word of mouth on and offline
Paid media indirectly drives owned media via word of mouth
TV generates the most significant impact in supporting long term brand health
So planning for WOM is common sense
Don’t just focus on creating content that can be shared online…..integrate
Use TV to spark mass “personal” stories and at the top of the purchase funnel
Think about ALL of your company inputs and outputs – from people to packaging
You need to keep the comms going, stories can fade, invest in TV for the long term
3 numbers to remember
Of the brand conversations you can affect, TV advertising drives 51%
In total, 72% of incremental brand conversations are driven by paid-for advertising
At least 90% of brand conversations take place offline (in person or on the phone)
Thank youwww.thinkbox.tv