Online Lessons Learned: From Search to Branding Advertising in CPG
Search Insider Summit 2011
2© comScore, Inc. Proprietary.
Promotion dominates CPG marketing spending today with much of it translating into temporary price reductions and coupons communicated via print
Source: SAP
67%
22%
11%
Trade Promotion
Media / TV
Consumer Promotion
Internet Accounts for ~5% of CPG Marketing Dollars
3© comScore, Inc. Proprietary.
The Digital Shelf: comScore study reveals searchers are extremely attractive to CPG marketers
From a comScore study conducted for P&G and Yahoo:
No. of people who used search to look for information on CPG products
Food Products: 44 million households
Baby Products: 16 million
Personal Care :10 million
Household Products: 2 million
CPG searchers have very attractive demos:
– More likely to be younger, affluent and female
Searchers are less price sensitive and can be influenced to switch brands based on factors other then price
4© comScore, Inc. Proprietary.
Search generates higher offline sales lift than display advertising, but combined the synergy provides an even greater lift
+119%
Incremental Lift in Retailers’ Offline Sales per (000) Exposed
Source: comScore Ad Effectiveness Solutions
5© comScore, Inc. Proprietary.
For multi-channel retailers, the higher reach of display ads often helps lift total offline sales more than does search. But, synergy gains can be obtained by using display overlaid on a search campaign
Source: comScore Ad Effectiveness Solutions
+11%
% of Households Reached Incremental Impact on Offline Sales per (000) Exposed
198
Total Sales Volume Lift Index
• The overall number of people reached by display ads is typically much higher than search
• As a result, even though the sales lift among those exposed to a search ad is higher, the total dollar sales gained from display ads is often larger than search due to the smaller lift acting on a larger base
Note: 0 equals par in above chart.
6© comScore, Inc. Proprietary.
-20%
0%
20%
40%
60%
80%
100%
120%
140%
The median offline sales lift generated by online advertising among exposed consumers is +21%, and 83% of campaigns showed a positive sales lift
Median $ lift: 21%
83% of campaigns showed a positive
sales lift
Per
cen
t L
ift
in R
etai
l ($
) S
ales
Offline Sales Effectiveness Studies
Source: comScore AdEffx Offline Sales Lift Norms for CPG, March 2011Note: Retail sales is measured by linking the comScore panel of 1 million U.S. Internet users to their retailer loyalty card data from dunnhumby, which provides a measure of the panelist’s in-store buying activity.
<=0% 1-10% 11-20% 21-30% 31-40% 41-50% >50%0%
5%
10%
15%
20%
25%
17%
14%
19%
10%
17%
10%
14%
% of CPG ROI Studies by Sales Lift
% Sales Lift
% o
f S
tud
ies
comScore Studies Have Shown that Online Display Advertising Can Effectively Lift Offline Sales
Retail Sales Impact of Online Advertising for CPG Brands
7© comScore, Inc. Proprietary.
The Short-term Offline Sales Lift from Online Advertising Matches Longer-term TV Impact
+8% +8%
comScore tests conducted over a three-month period; assumes 40% HH Internet reach
Hypothesis 1: More precise targeting on the Internet allows more impressions to be delivered against target audience in a given period of time
Hypothesis 2: Online display ads include more messages about price and promotion than TV ads, which tend to be strictly focused on brand building
TV Internet
Offline Sales Impact of Advertising for CPG Brands: TV Versus Internet
BehaviorScan tests conducted over a one-year
period.
(BehaviorScan)
(comScore/dunnhumby)
8© comScore, Inc. Proprietary.
Median Offline Sales Lift in 3-Months from Online Advertising for CPG Brands
Purchase-Based Targeting Has Been Shown To Drive Higher Lifts In In-store Sales Than Campaigns That Didn’t Leverage This Type of Targeting
*Source: comScore AdEffx Offline Sales Lift Norms for CPG, March 2011
Non-purchased based targeting includes, but is not limited to, the following types of buys: contextual, audience, run of site//run of network, etc. **Source: comScore Audience Advantage, which leverages sophisticated predictive targeting algorithms that are created using anonymous panel and census data sources; targeting was deployed on the Microsoft Network sites.
Note: Retail sales is measured by linking the comScore panel of 1 million U.S. Internet users to their retailer loyalty card data from dunnhumby, which provides a measure of the panelist’s in-store buying activity.
Non-Purchased Based Targeting* Purchase-Based Targeting**
21%
38%
9© comScore, Inc. Proprietary.
Price and Promotion Elements Are Used at A Much Higher Rate in Digital Display Than in TV
ElementDigital Display Ads
(Rich Media, Banners, Rectangles, etc.)
Television Ads
Brand Differentiating Key Message 17% 31%
New Product/New Feature Information 19% 44%
Product Convenience (explicit & stated) 0% 9%
Competitive Comparison 10% 24%
Superiority Claim 13% 26%
Price Reductions/Coupons/Samples 44% 8%
Percent of Digital Display Ads vs. Television Ads Containing Key Strategic Elements*
Source: comScore ARS Test Databases; Cases are balanced by category (n=100 for digital display ads, n=3,681 for television ads)
10© comScore, Inc. Proprietary.
Inclusion Of Promotion / Price Incentives In Online Ads Helps Lift Offline Sales
No Value Information Coupon Only Free Sample Explicit Value Claim0.0%
20.0%
40.0%
60.0%
26.8% 28.4%
39.5%
48.9%
Percent Lift in In-Store Sales for CPG Brands Among Households Exposed to Display Advertising
Source: comScore ARS-dunnhumby Case Study of Major CPG Brands(Blinded, n=13)
11© comScore, Inc. Proprietary.
Video Holds the Key to Capturing Branding Dollars
12© comScore, Inc. Proprietary.
Online Viewing of Video in February 2011 Reached 83% of Online Users
NUMBER OF VIEWERS 173 Million
% OF INTERNET AUDIENCE 83%
VIDEOS VIEWED 31 Billion
VIDEOS PER PERSON 179
VIEWING TIME PER PERSON 13.5 hrs
Source: comScore Video Metrix, February 2011
88 million Americans will watch an online
video today!
13© comScore, Inc. Proprietary.
Driven by Rapid Growth, Time Spent Viewing Online Video is Now Equivalent to 8% of TV Viewing
Source: Nielsen for TV. comScore for Online Video
TV Viewing Online Video
36
3
Hours Watched Per Viewer Per Week
+2% vs. YA
+15% vs. YA
14© comScore, Inc. Proprietary.
Rapid Growth in Long-form TV Programming Online Over Past Year
Yearly growth in videos viewed on long-form TV programming sites
Source: comScore Video Metrix, February 2011 vs. February 2010
105%
Videos per Viewer
71%increase increase
Videos Viewed
Ad loads are in the process of being increased to match TV levels
15© comScore, Inc. Proprietary.
Brands Trying to Reach their Target with TV Alone Hit A Plateau of Diminishing Returns
0 2,500 5,000 7,500 10,000 12,500 15,0000
10
20
30
40
50
60
70
80
90
100
67.874.1
85.1 87.9
Cost ($000)
Total Reach
Effective Reach(3+ Impressions)
Total Reach and Effective Reach for a TV Campaign as a Function of Cost
Typically 30%+ of Target Audience is not Effectively reached
16© comScore, Inc. Proprietary.
Simulation Using Single Source TV / Internet Data: Adding Branding Advertising With Online Video Builds Reach with Identical Investment
Media Plan GRPs Cost Total Reach Effective Reach
TV Only 1,000 $10,000 85.1% 67.8%
TV + Internet Combination
TV (90%) 900 $9,000 83.7% 65.8%
Online (10%) 500 $1,000 63.8% 44.0%
TV + Online 1,400 $10,000 90.2% 83.7%
TV Only vs.90% TV + 10% Online
400 0 5.1% 15.9%
Impact of a 90/10 Budget Allocation
17© comScore, Inc. Proprietary.
Summary Thoughts for CPG: Digital Offers Many Advantages
Search is an important component of consumers’ CPG decision making
Display ads are an effective, more cost efficient and higher reach alternative to print for communicating price and promotion incentives
Rich media and video hold the key to more powerful online branding campaigns
An integrated campaign that involves search, display, video and TV is very powerful:
– Search for high sales lift– Display for high reach communication of price incentives– Combination of TV and video for cost effective reach and branding