auto aftermarket retailer roi case study deck

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.


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.


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%


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


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%


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

All concepts property of Westwood One and may not be used without permission or agreed upon spending levels.

Details pending partner and talent approval and subject to revision. © 2016-2017 Westwood One, Inc.

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auto aftermarket retailer roi case study deck

Marketing