OPENING KEYNOTE: MASTERING MARKETING & MEASUREMENT IN A DATA-DRIVEN ENVIRONMENT

Aaron Fetters@fettersacDirector, Insights & Analytics Solutions CenterKellogg Company

PLAYING MONEYBALL MARKETING

Mix Modeling

Wins and Losses

Return on InvestmentFinancial Success

Sales VolumeDemand creation through

Advertising, Promotion and Trade

EffectivenessOf Campaigns and Touchpoints

PLAYING MONEYBALL MARKETING

PLAYING MONEYBALL MARKETING

Mix Modeling Analytics

Wins and Losses Drivers of success

Return on InvestmentFinancial Success

Sales VolumeDemand creation through

Advertising, Promotion and Trade

EffectivenessOf Campaigns and Touchpoints

Content Quality

Media Delivery

Consumer Response

Being Seen By the right consumers

Utilizing our Primary and 3rd

Party data

Mix Modeling Analytics Application

Wins and Losses Drivers of success Field a winning team

Return on InvestmentFinancial Success

Sales VolumeDemand creation through

Advertising, Promotion and Trade

EffectivenessOf Campaigns and Touchpoints

Content Quality Shift Media MixFollowing the consumer

Link Desire and Decide

Advance CapabilitiesLoyalty Programs; Enhanced

Targeting

Media Delivery

Consumer Response

Being Seen By the right consumers

Utilizing our Primary and 3rd

Party dataWATCH BUY

PLAYING MONEYBALL MARKETING

Performance Reporting and Optimization

Effectiveness Evaluation

Data Management

and Decisioning

Programmatic Placement/ Messaging

Attribution ModelsLift Analyses

Analytic Platforms

DSPsContent Management

Addressable TVEtc.

DMPs

DATA DRIVEN MARKETING

Don’t just win

OUR APPROACH TO MASTERING

DATA AND MEASUREMENT

Four Principles

MASTERING DATA AND MEASUREMENT: PRINCIPLE 1

Measure What Matters(And do it exhaustively)

RIGHT CONTENT QUALITY

REACHING

THE RIGHT AUDIENCE

HAVING THE RIGHT IMPACT

KELLOGG MARKETING EFFECTIVENESS FRAMEWORK

KPIs

• Branded Awareness• Persuasion

• Targeting Index• Reach/Frequency• Viewability

• Effectiveness/ROI• GSV/$ Spent• Equity

12

Modeling (Market Mix)

Right

ContentRight

Audience

Right

Impact

KELLOGG MARKETING EFFECTIVENESS APPROACH

SO WHAT MATTERS?

VIEWABILITY

SO WHAT MATTERS?

VIEWABILITY

THIS MATTERS

100%118%

141%

168%

At least 50% At least 55% At least 65% At least 70%

Effect of Viewability on Campaign Sales Effectiveness

Eff. Index

TARGETING - THIS MATTERS TOO

CONTENT QUALITY – THIS MATTERS TOO

17

-

2

4

6

8

10

12

14

16

0 10 20 30 40 50 60 70 80 90

Sale

s L

ift

per

100 G

RP

s

(In

dex)

Creative Quality: Short-Term Sales Likelihood

R = 0.82

MASTERING DATA AND MEASUREMENT: PRINCIPLE 2

Always Have a

Learning Agenda(Reserve the right to get smarter!)

AREAS TO LEARN ABOUT

Data Driven Marketing

Mobile

Cross Platform

Demo TargetF25-54

USING DATA TO UNDERSTAND AUDIENCES

14% of reach to F25-54

goes to households who

do not buy in the category

Demo Target:RTE Cereal

Category

Buyers51% of Category Buyers are

NOT reached by the

demographic target

Missed Category Opportunity:

52% of Brand X RTEC Buyers are

NOT reached by the demographic

target

Kellogg’s RTEC Brand

X Buyers

Missed Brand Opportunity:

USING DATA TO DRIVE TV TARGETING

283

270

250

255

260

265

270

275

280

285

290

295

300F25-54 GRP F25-54 Special K RTEC BRP

2012 2013

95INDEX

105INDEX

Kellogg Brand X TV Campaign Audience Delivery

Brand X Brand X

SMARTER TARGETING = BETTER RESULTS

2012

+10%

2013

+14%

Kellogg’s Brand X – Average Volume/Household

“Our cereal tastes great!”

Old way

USING DATA TO DRIVE CONTENT

16MMPurchases Diet

Foods

“Join our Challenge”

“Our cereal tastes great!”

Old way

USING DATA TO DRIVE CONTENT

Today

17MMSpecial K

Cereal Consumers

“Try our new products”

Today

16MMPurchases Diet

Foods

“Join our Challenge”

“Our cereal tastes great!”

Old way

USING DATA TO DRIVE CONTENT

16MMBreakfast Bar

Consumers

“A convenient solution”

17MMSpecial K

Cereal Consumers

“Try our new products”

Today

16MMPurchases Diet

Foods

“Join our Challenge”

“Our cereal tastes great!”

Old way

USING DATA TO DRIVE CONTENT

MASTERING DATA AND MEASUREMENT: PRINCIPLE 3

Turn Measures Into

Action

28

Enhanced Planning

In-Market Optimization

Portfolio Strategies

Target Definition

Media Guidelines

Campaign Planning

Partner Evaluation

Best Practices

Weekly Optimizations

Real-time Bid Strategy

Content Activation

IT’S NOT ENOUGH TO JUST MEASURE

TURN YOUR MEASURES INTO ACTION

29

Potential Actions

Blacklist and Whitelist

Frequency Cap

Activate new data source

Change placement strategy

Activate new content

Shift investment to higher

performing properties

MASTERING DATA AND MEASUREMENT: PRINCIPLE 4

Build World-Class

Teams and

Partnerships

Commitment

Excellence

Partners, Not Vendors

31

WHAT IT TAKES

Thank you!