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UPCOMING WEBINARS

Boomers: Marketing's Most Valuable Generation– APRIL 4TH

OPTIMIZING REACH AND RESONANCE TO HEIGHTEN REACTION

Randall BeardGlobal Head, Advertiser Solutions, Nielsen#3Rs

IMPROVING AD PERFORMANCE WITH THE 3Rs:

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TODAY’S PRESENTERRANDALL BEARDGlobal Head – Advertiser Solutions, Nielsen

Randall is responsible for helping clients build brand equity and ROI via improved advertising and media programs.

He has 25-plus years of global experience across consumer packaged goods, financial services and high-touch service brands, including Procter & Gamble, American Express and UBS.  Randall holds a B.S. degree in Marketing from the University of Tennessee and an MBA from the Darden School at the University of Virginia. 

OPTIMIZING REACH AND RESONANCE TO HEIGHTEN REACTION

Randall BeardGlobal Head, Advertiser Solutions, Nielsen#3Rs

IMPROVING AD PERFORMANCE WITH THE 3Rs:

OUR CONVERSATION1

2

3

4

The Advertising Environment: big shifts

The Pain: you’re challenges trying to improve advertising effectiveness

The Treatment: “3 R” model - simple, but powerful way to improve ad performance

A Cure: solutions to optimize Reach and Resonance to earn the best Reaction

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IN WHICH AREA DO YOU WORK?

Brand

Research

Media

Other

POLL #1

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NIELSEN MEASURES WHAT PEOPLE WATCH & BUY…

Audiences Consumer Purchase &

Advertising

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Rise of Digital

TV TabletVODDVRMobileOnline

• Big data

• Big Data

• Consumer Engagement

• Granularity

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Fragmentation

Broadcast andSatellite

Cable MobileApps

TabletTV MainNetworks

Over-The-Top

• Complexity

• Reach Planning

• Cross-Platform Effectiveness

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Innovation

Buyer ResponseBased Advertising

Advanced MixModelling

Digital Audience Measurement

Real-timeMeasures

• Prediction modeling

• eGRP’s

• Common metrics

• In-flight optimization

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CLIENTS ARE TELLING US THEIR PAIN POINTS:

1. How much should I spend?

2. How do I allocate my budget?

3. How do I optimize in real-time?

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POLL #2

How much should I spend?

How do I allocate my budget?

How do I optimize in real-time?

WHICH IS YOUR BIGGEST PAIN-POINT?

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INGREDIENTS TO INCREASE YOUR ADVERTISING ROI

Reach the right people

X =REACH

Did my intended audience see my campaign?

RESONANCE

Did my campaign deliver the desired brand impact?

Influence their opinion

REACTION

Did my campaign deliver the desired consumer response?

Impact their behavior

REAL – TIME

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INVESTING TO HELP YOU IMPROVE ADVERTISING ROI

Joint VentureAcquisitions Alliances

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WE CAN HELP OPTIMIZE ADVERTISING ROI NOW

Advertising Goal

Reach (Audience and Viewability)

Resonance

Reaction(Sales)

SolutionNielsen Catalina

Solutions, Nielsen Campaign

Ratings

Nielsen Brand Effect

Nielsen Catalina Solutions, Marketing

Mix Models

KEY TAKE-AWAYS

• Media is rapidly evolving & fragmenting• Innovative solutions can dramatically

improve your advertising & media plans

• Optimize Reach & Resonance for better Reaction

• Real-time optimization is a big opportunity

REACH X RESONANCE = REACTION

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MEASURE SALES LIFT THROUGH MARKETING MIX MODELS

US based illustrative example

Incremental sales

$1.34

$1.23

$1.00

$1.05

$1.17

Online

TV

Print

Trade

Total

Marginal ROI

Measure incremental sales due to each tactic

Measure effectiveness and efficiency of spend

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REALLOCATE TO ACHIEVE OPTIMAL MEDIA MIX

US based Illustrative example

$ Spent

Sale

s Res

pons

e

TV

Online

$1.17 ROI

Original allocation

$ Spent

Sale

s Res

pons

e

TV

Online

$1.43 ROI

Optimal allocation

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USE MMM SIMULATION TO DETERMINEHOW MUCH TO SPEND & HOW TO ALLOCATE

US based illustrative example

HistoricalTotal TradeTotal OnlineTotal PrintTotal TVTotal Marketing Budget

Item$51M

$0.1M$0.9M

$8M$60M

Input

$60M$42M

$2M$0.7M

$15.3M$60M

Output

~$1.5M profit

increase with same marketing

budget

SimulateHistorical Forecasted

Units/VolumeRevenueProfit

Item64M

$242M$102.3M

65M$245M

$103.8M

KEY TAKE-AWAYS

• Use MMM simulation to determine how much spend to achieve volume & financial goals

• Use MMM response curve simulation to optimize spending across media touch points

REACH X RESONANCE = REACTION

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SINGLE SOURCE DATA ENABLES US TO ISOLATE THE IMPACT OF ADVERTISING

Watch Data Nielsen Media Data

TV, Digital, Print, Mobile Partner Data

Buy Data Catalina Frequent Shopper Card

DataNielsen Homescan Data

Single SourceHH’s

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IDENTIFY THE MOST RESPONSIVE CONSUMERS TO INCREASE SALES LIFT FROM YOUR SPENDING

US based example

+17%

Identify demo campaign (baseline) sales lift1

+33%

Measure buyergraphic campaign sales lift4

Identify most responsive consumer segment2

% Pop%

Exposures

% CampaignSales

Response % Pop%

Exposures

% Campaign

Sales Response

Consumer Segment 1 Consumer Segment 2

Identify where they can be reached + execute3DemoRating

BuyerRating

DemoRating

BuyerRating

Network A Network B Network C

DemoRating

BuyerRating

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DIGITAL AUDIENCE DELIVERY HAS BEEN DIFFICULT TO MEASURE

Still left asking “Who saw my ad?”

Server Log Counts

Page Views

Click Through

Rates

Online measurement today

14,561

178,509

0.015%Above the Fold

20%

Demo: Female 18-22

Other measurement today

Demo: Female 18-22

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32%

68%Off-Target

US based example

On-Target Delivery by Site

IDENTIFY BEST AND WORST SITES FOR AUDIENCE DELIVERY IN-FLIGHT

US based example

On-Target Delivery by Site

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On TargetImpressions

Off TargetImpressions

Daily Online Campaign Impressions

41%on target

IMPROVE AUDIENCE DELIVERY IN-FLIGHT BY FOCUSING ON BETTER PLACEMENTS AND HIGH PERFORMING SITESDaily On-Target Delivery – Beverage company

US based example

16%on target

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DIGITAL AUDIENCE DELIVERY IS AN ISSUE ACROSS DEMO GROUPS% On-Target vs. % of Population

1 Source: Based on 1,700+ Nielsen Online Campaign Ratings campaigns run to date. Each data point shown has minimum of 30 observations from OCR studies

DEMOGRAPHIC % on target1

% of population Index

P18+ 91% 78% 117

P18-49 74% 44% 169

M18-49 57% 22% 263

F18-49 49% 22% 222

F35-54 31% 14% 219

M18-24 22% 5% 430

The narroweryour audience,the bigger theopportunity

KEY TAKE-AWAYS

• Improve advertising ROI by identifying & delivering your advertising to the most responsive audience

• Real-time measurement allows you to make adjustments in-flight, before it is

too late

REACH X RESONANCE = REACTION

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MEASURING RESONANCE IN FLIGHT IS KEY TO IMPROVING AD PERFORMANCE

What happened in the ad?

Who was being advertised?

Why should I buy the product?

Did I likethe ad?

Has intent to purchase changed?

General Recall(Breakthrough) Brand Recall Message Recall Likeability Intent to Purchase

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DRIVING HIGHER RESONANCE SCORES WILL DELIVER HIGHER SALES

. . . . Weak Mix Model Ad . . . . . . . . Strong Mix Model Ad . . . .

Scatter Plot: Creative-level TV Ad Performance:Brand Effect TV General Recall Index versus Mix Modeled Incremental Volume per GRP Index

W

eak

BETV

Ad

S

tron

g BE

TV A

d

50 75 100 125 1500

50

100

150

200

MMM/BETV Cross-Validation

Aver

age

Ad

Average Ad

CPG Client X

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IDENTIFYING IN-MARKET AD PERFORMANCE DRIVERS ENABLES CLIENTS TO OPTIMIZE IN FLIGHT

IN-MARKET AD PERFORMANCE

Creative Factors

Media Weight

Program Factors

Placement Factors

Cross-Platform Synergy

Competitive Advertising

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IMPROVE BREAKTHROUGH AND BRANDING RESULTS WITH IN-FLIGHT CREATIVE EDITS

US based example, Nielsen TV Brand Effect, 5/1/11 – 7/31/11, Hispanic A18+

OriginalAd

OptimizedAd

Ad CumulativePerformance

Hispanic A18+

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OPTIMIZE BY REALLOCATING BUDGET TO TOP PERFORMING CREATIVES

Source: Blinded Nielsen Online Brand Effect caseUS based example

Increase in Brand Lift(CPG Example)

56% better

Original

23%34%

Optimized

Creative Units

Exposure Frequency

Site Performance

3 Key Opportunities for Improvement

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DETERMINE WHEN TO SHIFT :30’S TO :15’S TO IMPROVE IMPACT

General Recall Brand Linkage Message Linkage CPM

47%

76%62%

46%

71% 76%

Creative AAA :15Creative AAA :30

Index100

0:15 vs. 0:30 Comparative Performance(BETV Masked Example #5)

Index50

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VIEWERS ATTENTIVENESS TO TV PROGRAMS IS KEY TO UNDERSTANDING AD PERFORMANCE

What did Jack ask Liz to do before telling her he was giving the keynote address at a corporate retreat?

• Choose between two pictures of himself• Write out talking points for him to include• Help him decide which suit he should wear• Find an appropriate date for him to bring

Correct Program Question

s

Total Program Question

s

PROGRAM ENGAGEMENT SCORE

=

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SHIFTING TV SPENDING TO HIGHER ENGAGEMENT SHOWS CAN DRIVE HIGHER AD RECALL

Correlation = .81

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IMPROVE AD BREAKTHROUGH BY SHIFTINGSPEND TO HIGHER PERFORMING GENRESBrand X Ad Breakthrough by Program Genre

US based example

55%52% 51%

48%

42% 41% 40% 40%35%

30%

Genre A Genre B Genre C Genre D Genre E Genre F Genre G Genre H Genre I Genre J

Ad Breakthrough

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IMPROVE AD BREAKTHROUGH BY SHIFTINGSPEND TO HIGHER PERFORMING GENRESBrand X Ad Breakthrough by Program Genre

US based example

55%52% 51%

48%

42% 41% 40% 40%35%

30%

Genre A Genre B Genre C Genre D Genre E Genre F Genre G Genre H Genre I Genre J

Ad Breakthrough Media Weight

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CAP EXPOSURE AT OPTIMAL FREQUENCYIN-FLIGHT AND EXTEND OPTIMAL REACH

Based on a US example

Campaign Frequency

Opportunity for improvement

Cap frequency to 1 exposure

Reallocate impressions

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UNDERSTAND IMPACT OF CROSS-PLATFORM EXPOSURE TO OPTIMIZE CROSS-PLATFORM SPEND

General Recall Brand Linkage

44%

80%

36%

57%

TV + Internet Ad Exposed TV Ad Only Exposed

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REAL-TIME OPTIMIZATION PRESENTS SIGNIFICANT OPPORTUNITY TO IMPROVE

Illustrative

TIME

BRA

ND

LIFT

Illustrative

Creative rotation

Exposure optimization

Audience delivery site optimization

Brand lift site optimization

No real-time optimization

KEY TAKE-AWAYS

• In-market ad performance is driven by more than creative

• In-flight optimization can dramatically improve your ad performance

A CURE FOR A CRONIC ISSUE

1

2

3

4

The environment: big shifts - Digital, Fragmentation, Innovation

The Pain: how much to spend, how to allocate, how to optimize in real time

The Treatment: “3 R” model is a simple, but powerful way to improve ad performance

A Cure: Solutions exist today to optimize Reach and Resonance to deliver stronger Reaction

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THREE OPPORTUNITIES TO IMPROVE

$ Spent

Effe

ct

Original performance

1) Optimal allocation

2) Buyergraphic planning

3) Real-time optimization

Opportunity!

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Q & A

THANK YOU FOR ATTENDING

• If you have follow-up questions or want more information, please contact your Nielsen Professional Services rep

or• Darren Ellis

Phone: (415) 362-8498 X209

Email: Darren.Ellis@Nielsen.com

• If you have any questions for your presenter email Randall.Beard@Nielsen.com