Tracking Encoded Television Ads With PPM

edison media research

© 2008 Arbitron Inc./Edison Media Research

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”

http://en.wikipedia.org/wiki/Image:Johnny-Wanamaker2.jpg



How does advertising work? 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

Dates of Campaign Cash Receipts



How does advertising work?


12 13 12 15 14

31

2003 2004 2005 2006 2007 20080

10

20

30

40

50

60

70

80Percent saying "WAAA"

Which station plays the most music?

TV Campaignpromoting WAAA for

playing 'most music'

Measure changes in perceptions



How does advertising work?

Dates of Campaign “The Book”

For Radio…



The Role of the CMO(Chief Marketing Officer)

• A position that didn’t even exist 20 years ago

• Often moved from finance into marketing

• INSIST in measurement and discrete “ROI (return on investment)” computations for all expenditures

• Won’t accept the notion that you just ‘have to advertise’…he or she needs to see it ‘working’

• The CMOs are pushing innovation in marketing and advertising measurement and analysis



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 AudioProduct 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:

• Determine who in the PPM panel viewed the commercials

• How many times did they see the commercials?

• Analyze changes in listening behaviors among those who saw the television commercials

– Immediate changes

– Changes over time



Philadelphia



Context of B101’s campaign:

• Coming right on the heels of their astoundingly successful Christmas music programming

• For a station which has advertised consistently, and consistently aggressively, for years

• As of the dates of this campaign, B101 had no direct competition in the “Adult Contemporary” marketplace



8,634 Detections!Almost exactly an average of three detections per

Philadelphia PPM panelist



Saw at least one ad

62%

Did not see ad38%

Who saw the B101 spot?



0

300

600

900

1200

1500

1800

2100

2400

2700

0 1 2 3 4 5 6 7 8 9 10 11 12

What portion of Philadelphia saw at least one commercial in the campaign?

WeekJanuary - March 2008

# of Respondents seeing B101 Spot at

least once

62% of panelists saw at least one spot during the campaign

26%

53%61%



0

200

400

600

800

1000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36

Number of B101 spots seen

Number of Spots Seen

# of Respondents

One respondent saw the ad thirty-six times in these 12 weeks!



Saw at least one ad

62%

Did not see ad38%

Who saw the B101 spot?(Women 25-54)

Base: Women 25-54



0

50

100

150

200

250

300

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Number of B101 spots seen(Women 25-54)

Number of Spots Seen

# of Respondents

Base: Women 25-54



0

300

600

900

1200

1500

1800

2100

2400

2700

0 1 2 3 4 5 6 7 8 9 10 11 12

Number of B101 spots seen over time

WeekJanuary - March 2008

# of Respondents

One

TwoThree

Four

Five +



5.05.2

4

5

6

7

People who saw the ad spent a little more time with B101

Average Quarter Hours (AQH)

Didn’t see any spots Any Detections



5.0

6.2

4

5

6

7

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 week one

10-19 QHR in week one

20+ QHR in week one



Moderate19%

Heavy58%

Light23%

Heavy listeners to B101 accounted for most QHs in week 1



0123456789

101112

1 2 3 4 5 6 7 8 9 10 11 12

B101 Listening by classification during the campaign

Week

AQH

Heavy Listeners

Moderate Listeners

Light/Non-Listeners

4.1

7.3



By the end of the campaign, previously ‘moderate’ listeners were contributing more

Moderate33%

Heavy48%

Light19%

Moderate19%

Heavy58%

Light23%

Week 1 Week 12



10400 1080012100

0

5000

10000

15000

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?



02468

1012141618202224

1 2 3 4 5 6 7 8 9 10 11 12

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)



Philadelphia



Context of the WJJZ spot:

• A newer frequency for a previously well-established brand

• Attempting to gain trial (“cume”) by making consumers aware that the station is now at a new frequency

• Note: 15 second spot (vs. :30 for B101)



5,121 DetectionsJust under an average of two

detections per panelist in Philadelphia



Saw at least one ad

50%

Did not see ad50%

Who saw the WJJZ spot?



Saw ad, didn't listen89%

Saw an ad, started

listening11%

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

'If Brands Are Built Over Years, Why Are They Managed Over Quarters?'

Published: August 22, 2007 in Knowledge@Wharton



Beware of focusing all marketing resources on the short term “pop”

•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

•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



Beware of focusing all marketing resources on the short term “pop”•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•Brand managers heard the first part loud and clear. The second part? No so much.•"People will go toward what is easy and precise, and shy way from the more difficult and complex," says Lodish. "It's human nature."



Beware of focusing all marketing resources on the short term “pop”

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.



The need for short term behavioral data AND brand/perceptual data

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.



The importance on long term brand power dataIn 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. The authors acknowledge that hourly data will be useful as a way to monitor stock-outs. "However," they continue, "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."



How Clorox turned around profits with brand building advertising“Prior to 2005, Clorox was trapped in an endless cycle of discounting its flagship bleach product.

Clorox changed its strategy and reduced discounting while increasing advertising to build long-term loyalty and diminish consumer response to price.

Initially, profits were down, but rebounded by the first half of 2006 along with long-term prospects for brand pricing power.”



Balancing short term & long term"Short-term oriented measures, such as sales, should be supplemented with long-term metrics to obtain a more complete view of brand performance," the authors write.

"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."



'If Brands Are Built Over Years, Why Are They Managed Over Quarters?'

• Marketing success cannot be totally measured by the short term measure of “popping” a month or a quarter

• Radio brands need to be tracked over the long term via branding measures for key images



Other kinds of possible analyses

• Get the local television station to encode their news programming and their radio ads for the news

• Look at your own promo spots for special programming and see if they succeed in pushing listenership to those shows



Some early conclusions

• In an historic first, we now have the ability to look directly at marketing exposure and audience shifts

• It is premature to draw overly broad conclusions, however, the data suggests:

– The B101 campaign may have helped restore P1 AQH after Christmas music

– The TV seems to have increased AQH among ‘moderate’ listeners



Next Steps

• More stations should encode their television spots so we can build a normative database of radio marketing “cause and effect”

– Different buying strategies

– Different creative

– Different competitive situations

• Television stations and networks should encode their radio spots for the same analysis



Tracking Encoded Television Ads with PPM

Are Half My Advertising Dollars Wasted?

Tracking Encoded Television Ads With PPM

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