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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 CONVERSATION
1
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
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 Re
spon
se
TV
Online
$1.17 ROI
Original allocation
$ Spent
Sale
s Re
spon
se
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
Simulate
Historical ForecastedUnits/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
14,56114,561
178,509178,509
0.015%0.015%Above the Fold
20%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
LIF
T
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: [email protected]
• If you have any questions for your presenter email [email protected]