GETTING ADVERTISING RIGHT!
THE KEYS TO DRIVING SALES
David Poltrack, Chief Research Officer, CBS Corporation President, CBS Vision
Leslie Wood, Ph.D., Chief Research Officer, NCS
Attribution Accelerator Conference
October 12, 2017
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 2
Do Advertising Basics Still Matter?
• Which of the advertising principles are still true?
– The key elements of advertising effectiveness:
• Reach, Targeting, Recency, Creative, Context
• CBS built a framework around these--- are they still relevant?
– How:
• Key metric: Sales
• All studies – no cherry picking
• Worked to remove bias
• Sales Effect methodology
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 3
Connecting the Media People Consume
With the Products They Buy
Exposure Data
• NCS Publisher Data
(Big Data)
• Nielsen Media Data
(Currency Data)
TV, Digital, Mobile, Print, Radio
Anonymous
Single Source Households
Buy Data
• Catalina Frequent
Shopper Card Data
• Nielsen Homescan
All-Outlet Data
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Meet the Studies
Meta-Study #1• Objective: to examine the relative contribution that a campaign’s creative and media
factors might have on sales.
• Nearly 500 CPG campaigns that ran in 2016 and Q1 of 2017 on all major media platforms:
linear and addressable television, online digital and video, mobile, magazines and radio.
Meta-Study #2• Objective: to understand the reach of TV and digital campaigns, and more importantly to
measure the unduplicated reach of cross-media campaigns.
• Nielsen examined 863 campaigns that ran on both linear TV and digital platforms and
were tagged by Nielsen Total Audience Ratings (TAR) and Nielsen Digital Ad Ratings
(DAR). These included ALL cross- media campaigns that ran in Q4, 2016 and Q1, 2017,
regardless of vertical or television network. While the intended targets for these
campaigns varied, the reach curve for these analyses are shown for people 13+.
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Five Keys Elements of Advertising Effectiveness
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Percent Sales Contribution by Advertising Element
Source: Nielsen Catalina Solutions © 2017; Period 2016-Q1 2017
Nearly 500 campaigns across all media platforms.
Creative
47%
Brand
15%
Reach
22%
Recency
5%
Targeting
9%
Context
2%
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 7
Balance of Creative vs. Media – Then & Now
Creative
65%
"Other"
20%
Media
15%
Sales Contribution
Creative
49%
Brand
15%
Media
36%
Sales Contribution
2006 Project Apollo Now
Creative
Media
“Other”
Creative
Media
Brand
Source: Nielsen Catalina Solutions © 2017
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 8
Creative – How Productive at Driving SalesAll TV vs. All Digital
15%
12%
56%
37%
30%
50%
Digital
(Video
Display
& Mobile)
TV
(Linear &
Addressable)
Sales Contribution
Brand Creative Media
Creative: Productivity Metric & Standard Deviation
$0.08-$0.12 +$0.12
$0.08-$0.21 +$0.21
Source: Nielsen Catalina Solutions © 2017; Period 2016-Q1 2017
Nearly 500 campaigns across all media platforms.
Comparable creative productivity – much higher highs and lower lows for digital• More variability translates to higher contribution from creative for digital• Media has more levers to pull – particularly for TV
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 9
TV – by Creative Performance
3%
10%
30%
80%
38%
6%
18%
53%
63%
Strong
Avg
Weak
Sales Contribution
Brand Creative Media
$0.01
$0.19
$0.04
Creative
Productivity Metric
Source: Nielsen Catalina Solutions © 2017; Period 2016-Q1 2017
Nearly 500 campaigns across all media platforms.
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 10
Digital – by Creative Performance*
6%
14%
14%
89%
60%
16%
5%
26%
71%
Strong
Avg
Weak
Sales Contribution
Brand Creative Media
$0.01
$0.24
$0.04
Creative
Productivity Metric
* Display, Video & Mobile yielded nearly identical results
Source: Nielsen Catalina Solutions © 2017; Period 2016-Q1 2017
Nearly 500 campaigns across all media platforms.
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 11
Reach – TV & Digital Reach Curve for
Cross Media Campaigns
-
20
40
60
80
100
0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00
Re
ac
h %
ImpressionsMillions
Digital Reach + TV Reach Curve –
Cross Media Campaigns
TV
Campaign
Reach
Digital
Campaign
Reach
Nielsen: 863 TV & digital cross media campaigns from Q4 2016 – Q1 2017 on P13+; No advertiser verticals excluded.
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Understanding Duplication is Critical!
Combined reach is less than random – for all campaigns except <50% reach
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All Media:
On-Buyer Target vs. Off-Buyer Target
On-Buyer Target – targeted to correlate delivery to brand and campaign buyers• Targeting contributes much more when targeted to buyers
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Recency – Thursday/Friday Prime Drives
Weekend Sales
353
232 286
Thursday Prime Friday Prime Thu/Fri Prime
Sales Index vs. Any Other Programming
Note: Advertising lift measured on a 3-day rolling exposure window. Thursday/Friday Prime does not include: News, Sports, Children’s
or Spanish Language.
Source: Nielsen Catalina Solutions © 2017
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Recency
• Depends on a decay curve
• Adstock standard in MMM
Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 16
Back to Basics
• Basics really do matter
– Creative
• Still the most important factor for driving sales, though media is playing a larger role
– Reach critical
• Only consumers exposed to advertising can respond– Targeting – focus on buyers
• Buyers respond more; target large enough to deliver reach – also drive penetration
– Recency
• Value of exposure decays across time
Appendix
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Key Metric: Sales Productivity
NCS measures the total incremental sales lifts for the households exposed to the advertising, then divides it over the
total number of exposed households’ category store trips. We know that the sales are incremental because they are
compared to a control group of nearly identical households that were not exposed to
the advertising.
This sales productivity metric used in the analysis removes the cost of the media and measures the sales responsiveness
without factoring in the media economics, targeting, reach, seasonality and flighting.
INCREMENTAL SALES
+14%
Unexposed
HHs
Exposed
HHs
Exposed
Purchase
Occasions
Unexposed
Purchase
Occasions
$28 Days Prior
EXPOSED CATEGORY TRIPS PRODUCTIVITY METRIC
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