auto aftermarket retailer roi case study deck
TRANSCRIPT
AUTO AFTERMARKETROI CASE STUDY
An auto aftermarket retailer wanted to assess the sales impact of its radio investment.
Nielsen matched the Portable People Meter panel with credit and debit card spending data from the Nielsen Buyer Insights.
Purchases from consumers exposed to the radio campaign that ran March-June 2016 were compared to consumer purchases of those who were not exposed.
Methodology
Methodology: connecting credit/debit card purchases directly with Nielsen Portable People meters
EXPOSEDto the radio campaign
UNEXPOSEDto the radio campaign
Nielsen matched Portable
People Meter panel data with
credit/debit purchase behavior
Nielsen measured the
sales impact of the
two groups
Audience was broken into
groups based on Media
Monitors ad occurrence
Step 1
Unexposed Exposed
MATCHEDAUDIENCE
Step 2 Step 3Nielsen compared spending
from 2016 to the same
timeframe the previous year
Step 4
CAMPAIGN PERIOD
3/1/16-5/31/16
PRE-PERIOD3/3/15-6/30/15
POST-PERIOD6/1/16-6/28/16
Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.
Significant return on advertising spend
21 return on
advertising spend
$
For every $1 spent on
radio, the brand saw
41%
25%33%31%
24%
45%
Low
(1-2)
Medium
(3-6)
Heavy
(7+)
Brand buyers % of sales lift
Campaignfrequency:
How to read: One-third of consumers exposed heard the campaign seven or more times March-May 2016.
These consumers represented 45% of the total sales increase.
Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.
The more AM/FM radio you hear, the more you spend
3.1%
4.6%
Pre-period
(March-June 2015)
Campaign + post period
(March-June 2016)
+48%
% of those exposed to the radio campaign who shopped at the retailer
How to read: The percentage of those who shopped at the retailer grew 48% after exposure to the campaign.
Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.
AM/FM radio drove more buyers into the store
AM/FM radio was a
new customer
machine, increasing
new buyers by
64%Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,093; Exposed: 13,710. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.
AM/FM radio exposure brought in buyers
7.7%
13.2%
Unexposed Exposed
Share of category spend
How to read: The retailer secured 13.2% of the category spend among those exposed to the radio campaign
compared to a 7.7% share of spend among those not exposed to the radio campaign.
+71%
Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.
AM/FM radio drove share growth in theauto aftermarket category
-13% -15%
-27% -30%
-42%-50%
# of buying
occasions Spend per trip
Spend per
buyer # of buyers Market share Total spend
% difference, unexposed vs. exposed
Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.
How to read: Consumers not exposed to the radio campaign had less buyers, reduced shopping trips, less spend
per buyer, and significantly lower purchases.
Sales fall when a brand stops advertising
Key takeaways
• Return on advertising spend: $21 incremental sales was generated for
every $1 spent in radio
• Frequency works: consumers exposed seven or more times represent
the largest source of sales lift
• More customers: AM/FM radio drove more buyers into the store
• New customers: AM/FM radio exposure brought in new buyers
• Share growth: exposure to AM/FM radio led to a higher share of the
auto aftermarket category
• Advertising works: key sales measures plummet among the unexposed
Radio delivers strong ROI for the auto aftermarket retailerKey takeaways
For every $1 spent on
radio, the brand saw
return on advertising
spend
$
$21:1 return on advertising spend
More buyers
in total buyers21
Highermarket share
+71% share of category spend
+48%
Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.
Radio delivers excellent ROI
Source: Nielsen 2014-2016.
Payback per $1 spent in radio
Candy
3x
Snacks
6x
Breakfast
Bar
2xBeer
4x
Auto
Aftermarket
21x
Telecom
14xMass
Merchandiser
16x
Home
Improvement
9xFast
Food
3x
Soft
Drink
2x
Department
Store
17x
Grocery
23x
Retail
11x
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