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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
How do consumers REACT to Marketing? Understanding Marketing Effectiveness Peter Nguyen
Nielsen Online
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.Copyright © 2011 The Nielsen Company. Confidential and proprietary.
2012 Yahoo! Marketing Summit
#ybali
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Marketers held accountable for making decisions more
quickly in a changing business landscape that sees
retailers wielding greater influence
The marketer‟s challenge
Proliferation of digital, viral, and experiential vehicles
causing audience fragmentation and an environment
where the consumer is in control
Ability to make timely adjustments based upon real
time measured effects
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
How do you make more confident and timely
marketing investments within a proliferating
media environment?
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Missing LinkDoes advertising
attract shoppers to
store and increase
sales?
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
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Clearly there is a missing link in the equation.
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Improving marketing performance requires
comprehensive, consistent & analytical approach
WHAT WORKS• Decompose sales
impacts for each key
marketing element
• Calculate effectiveness
and return on investment
SMARTER• Create insights to drive
marketing plans
• Optimize spending
allocation
MONITORAND
• Track results versus
plan to identify gaps
• Identify actions to
close gaps
PLANADJUST
DISCOVER
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
WHAT WORKS
DISCOVER
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Using Statistical analysis, we have been able to
understand sales drivers for 1000s of brands worldwide
Sales
Promos
TV
Time
Align sales with marketing
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Measuring the impact of over $10bn of media
investment each year
Sales
Promos
TV
Time
Align sales with marketing
Attribute to activities corresponding to peaks and dips
Core Volume Total Print TPR Only Quality Merchandising Total TV FSI
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
In-store Activity
0
10
20
30
40
50
Base Trade TV Halo TV Print Radio
Media Advertising Other*
+ +
Incremental Revenue
Spending
Volume Decomposition
1
2 3 4
$1.41 $1.26
$0.82
Online Magazine TV
How are my marketing executions ROI performing?
ROI
Marketing Factors Considered
* Can be many things different by country/category/industry
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
A TV Channel wanted to know how to best guide their
advertisers on a range of topics…
We looked over 100s of brands
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Burst
Continuous
Which type of Laydown strategy is the most
effective?
Pulse
ROI
0.29
ROI
0.34
ROI
0.38
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Is a fully integrated ATL campaign really
adding anything?
PDA
Pager
Cellular
DirectMail
OutboundTelemarketingSales Force
Fax
Website
RetailPoint of SaleFace-to-Face
PhoneOrdering
ATM
Event /Sponsorships
Outdoor
Placement/ProductSampling
Newsprint
Magazines
Television
RadioDelivery
FulfillmentCustomers
Campaign
with 1-3
media types
ROI
0.34
Campaign
with 3+ media
types
ROI
0.18
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
A media campaign consisting of TV + Internet
increases ROI in comparison with a single TV
campaign
$0.33$0.35
Single TV
campaign
TV + Internet
campaign
Average short term TV ROI(Incremental $ Sales per $ Spent)
Weak
<$0.2/$
Strong
>$0.5/$
Nielsen
Benchmarks
+6%
ROI calculation based
on Gross TV Spend
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Nielsen Brand Effect Metrics and Business Results
• BE has 5 syndicated ad effectiveness metrics:
– General Recall
– Brand Recall
– Message Recall
– Likeability
– Purchase Intent
• Correlated BE metrics with MMM Sales Response coefficients
• Global CPG Company Y Summary:
Correlation Between:
MMM Sales
Response
General Recall 0.55
Brand Recall 0.75
Message Recall 0.81
Likeability 0.72
Purchase Intent Top 2 Box 0.61
BE Metrics are Leading Indicators of MMM Sales Response
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
56%
42%
35%
25%
46%
28%
21%
15%
General Recall Brand Recall Message Recall Likeability
TV Ad Performance – A18+
TV + Online Exposed TV Only Exposed
+67%
+22%
Dual-platform ad exposure greatly enhances TV ad
performance
+50%
+67%
Nielsen Brand Effect (IAG), 9.20.10 – 7.31.11, A18+
Green arrows indicate a positive difference and red arrows indicate a negative difference at >90% confidence
Dual Platform is limited to those exposed within the previous 7 days to TV + Online Video; Limited to same campaigns for both TV +
Online Exposed and TV Only Exposed; TV+ Online Exposed sample:18,165; TV Only Exposed sample: 4,587,549
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Incremental online exposures further improve TV ad
performance
53% 53% 54%
62% 62%
37% 37%39%
49% 50%
30% 31%32%
41% 42%
21%23% 24%
30%31%
1-2 3-4 5-7 8-10 11+
Online Exposures
TV Ad Performance by Online Exposure Level – A18+
General Recall Brand Recall Message Recall Likeability
Nielsen Brand Effect (IAG), 9.20.10 – 7.31.11, A18+
Green arrows indicate a positive difference and red arrows indicate a negative difference at >90% confidence
Limited to those exposed within the previous 7 days to the same campaigns up to the first five exposures to TV + Online Video;
Online Exposure Sample Sizes: 1-2 = 8,402; 3-4 = 1.516, 5-7 = 636, 8-10 = 357, 11+ = 464
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
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39
48
52
TV Only TV + Rich Media Only TV + Online Video Only TV + Display + RM +Online Video
TV ads for this advertiser were more effective among those viewers
who were previously exposed to online ads, particularly video ads
TV Advertisement Brand Recall by Prior Online Ad Exposure Type
Source: Nielsen Brand Effect, A18+, 11.18.09 – 03.14.10; Based on online ad exposure in 30 days prior to TV ad exposure.
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Higher Engagement in long form online content relative to
TV is evident across age groups
82% 84% 86%
56%61%
68%
A18-34 A18-49 A35-64
Online Full Episode Norm (Next Day) Broadcast TV Norm (Next Day)
Source: Nielsen Brand Effect (IAG) 9.20.10 – 7.31.11;
Lifts shaded in green are significant at a >90% confidence.
+46%+26%
+38%
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Long-form online video ads significantly outperform TV ads
Source: Nielsen Brand Effect (IAG) 9.20.10 – 7.31.11; A18+
TV & Online Measurement limited to people 1 day post exposure to same campaigns on Online Video and TV.
Lifts shaded in green are significant at a >90% confidence; Online Video sample: 32,031; TV sample: 4,998,658.
Online Video is inclusive of full episode player sites.
65%
52%
43%
28%
46%
28%
21%
15%
General Recall Brand Recall Message Recall Likeability
Ad Performance by Platform – A18+
Online Video TV
+41%
+86%
+205%
+87%
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Short Form Video breaks through just as well as TV ads
48%
29%
22%
15%
48%
29%
22%
16%
General Recall Brand Recall Message Recall Likeability
Short Form Video vs. Broadcast/Cable TV Ad Performance
Short Form Video (77,903) Broadcast/Cable TV (2,967,042)
Nielsen Brand Effect (IAG), January 1, 2011 – December 31, 2011, A18+
Broadcast Cable Norm Limited to Primetime and Non-Sports programming
Limited to Same Brands
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Base: Those that visited the brand site after exposure to display campaign
Brand A
2%
24%
80%
Display
Clickthrough: 5
seconds*
Display
Clickthrough:
Same Session
Display <=1 Week
40%Have not been exposed/ to
conducted any Visit activity
9%
27%
71%
Display
Clickthrough: 5
seconds*
Display
Clickthrough:
Same Session
Display <=1 Week
12%Have not been exposed/ to
conducted any Visit activity
5%
14%
52%
Display
Clickthrough: 5
seconds*
Display
Clickthrough:
Same Session
Display <=1 Week
46%Have not been exposed/ to
conducted any Visit activity
Brand B Brand C
Even when measuring online impact of ads, clickthrough does not reflect the full value…
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
…And there is no correlation between online
click through and offline ROI
-100%
400%
900%
1400%
0.00% 0.10% 0.20% 0.30%
Breakeven
Ad Click Thru Rate
Ca
mp
aig
n R
OI%
Correlation = -.07
Source : Nielsen Online Analysis of 300+ Online Campaigns: U.S.
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
But we can show that online campaigns do
deliver ROI at the checkout
126
100 99
78 76
Online TV Trade Print Couponing
Source: The Nielsen Company, TMG Meta Analysis, 2009, n=300 CPG
client brands: U.S.
•ROI = (incremental sales driven by
campaign/cost of campaign) -1
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Which Digital Media types are the most effective?(at driving sales)
1.
2.
3.
4.
5.
6.
7.
8.
Highest ROIBrand Website/MicroSite
Online Registration
Paid Search
Registration-Influencer
Content Syndication
Banner Ads
Internet Sampling
Banner Ads
Brand Website/MicroSite
Paid Search
*Based on Global Averages
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
We conducted a global “Meta-Analysis” across 300+ Marketing
Effectiveness studies
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Where do you think Asian Markets rank vs. other
countries on media effectiveness??
2.33
2.09 2.07
1.59
1.24 1.20 1.20 1.18 1.15 1.110.99 0.99 0.97
0.90 0.87 0.84 0.83 0.830.75 0.75 0.74
0.59 0.59 0.54
0.42
Index of Media EffectivenessAmericas Western Europe Asia-Pac CEEMEAArgentina Belgium Australia Greece
Brazil France China PolandCanada Germany India Saudi
Mexico Italy Indonesia South Africa
USA Spain Japan Turkey
Venezuela UK Philippines
S-Korea
Thailand
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Where do you think Asian Markets rank vs. other
countries on media effectiveness??
2.33
2.09 2.07
1.59
1.24 1.20 1.20 1.18 1.15 1.110.99 0.99 0.97
0.90 0.87 0.84 0.83 0.830.75 0.75 0.74
0.59 0.59 0.54
0.42
Index of Media EffectivenessAmericas Western Europe Asia-Pac CEEMEAArgentina Belgium Australia Greece
Brazil France China PolandCanada Germany India Saudi
Mexico Italy Indonesia South Africa
USA Spain Japan Turkey
Venezuela UK Philippines
S-Korea
Thailand
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Which Media type is most effective
……IN ASIA??
244
66
108
147
100
Digital
Out of Home
Radio
Magazine
TV
Index of Media Effectiveness
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
SMARTERPLAN
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Optimized
Plan
TV
Online
Analysis
Custom optimizations identify best possible
investment options given budget constraints
By Activity
By Week
By Brand
By Channel
Marketing
Costs and
Product Margins
Business
Rules
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
An example of spending optimisation from a small car company with a growing share…
+$ 5,520,121 Incremental Sales Value
Last 52 Weeks Scenario
Investment Change in Investment
Change in Incremental Value
TV 3,094 5,664 2,570 7,555
TV Sponsorship 881 881 0 0
Newspaper 2,277 1,594 -683 -1,203
Magazine 296 0 -296 -437
Online 286 583 296 470
OOH 2,175 665 -1,509 -1,633
Price Related Discount 2,978 1,922 -1,056 -1,748
Dealer Incentive 1,972 2,651 679 2,515
Total 13,889 13,889 0 5,520
[unit: 1,000 $ ]
52 Weeks (1 Year)
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Measurement comparability with other Media
Note: Figures may not add up to Total Audience due to rounding
All Adults Women 25-44
Total Audience: 24.9m Total Audience: 4.1m
1.6m 2.9m 20.4m 0.4m 0.5m 3.2m
TV TV
36% of those exposed to
the online campaign did
not see the TV campaign
12% saw both the Online
and TV campaign
Online
44% of those exposed to
the online campaign did
not see the TV campaign
12% saw both the Online
and TV campaign
Online
Source: Nielsen Incremental Reach
Base („000): All Adults (49,206), Women 25-44 (8,293)
Active Internet Individual Universe:
38,144,000
Observed Ad Impressions:
24,007,000
Delivery
Audience Reach: 4,120,000
Audience Reach: 11%
Average Exposure: 5.8
Online GRPs: 62.9
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
SUMMARY
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Key Take-Aways
• It is now possible to understand the ROI of digital as part
of the media mix
• Don‟t just rely on click-thru
• Online is a great compliment to traditional media and
works hard to reinforce the branding message
• Having solid measurement and comparability with
traditional media gives confidence for investment
• There is no silver bullet to budget reallocation – depends
on category, BTL mix etc… BUT– ALL analysis so far shows advertisers could – and should – go
further with their digital investments
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
• “Half the money I spend on advertising is wasted; the trouble is I don't know which half.”
John Wanameker: Retail magnate, considered a pioneer in advertising
He would have known that today !!
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
AdSolutions 2011
Peter Nguyen Manager, Nielsen Online, NM Incite
CENTRE POINT - 106 Nguyen
Van Troi St.
Phu Nhuan Dist. HCM. City,
Vietnam
For questions, please contact:
Peter Nguyen
fiickdotcom
Peter Nguyen
t: + 84 8 3997 8088 x: 8174
f : + 84 8 3845 5348
m: +84 977 550 665
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.