rex briggs at jd power and associate automotive internet roundtable
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Rex Briggs at JD Power and Associate Automotive Internet RoundtableTRANSCRIPT
#1
Based On The Work Of Marketing Evolution
- Ad Age, Cover Story, August 2006
Source: Advertising Age Annual Top 10 Lists (Book of Tens), December 2006
“Most important advertising research since the early 1990s”
Overcoming The Challenge of Integrated Marketing
Communication Measurement
Overcoming The Challenge of Integrated Marketing Communication Measurement
• Consumer + Sales + Marketing Strategy• Brand tracking left sales out• Regression modeling left the consumer out• Both left strategy out, but the strategy (as translated into messages, targeting and
media use) is critical to making sense out of the flood of data
Return On Marketing Objectives (ROMO)Purchase Funnel Analysis
Brand Awareness
PurchaseConsideration
Sales
The Measurement Challenge
Best PracticeWorst Practice
Marketing EvolutionROMO
Self-Stated Reasons for Buying
Ad Recall Based
Probability of Exposure
Regression Modeling
ROMO: Best-Practice In ROI Measurement
ROMO: The most broadly, independently validated marketing ROI measurement approach available.
• Advertising Research Foundation (ARF) supported by ANA, AAAA
• Corporate Executive Board, (B2C & B2B - US, Europe)
• ESOMAR – “Best Practices” Wiley & Sons, April 2007, 60 pages
• Journal of Advertising Research (Dec 06)
• Media owner and advertising agency reviews supporting the methodology include IAB, MPA, NAA, Conde Nast, FOX, Time Inc., Carat, OMD, and many more For independent assessment,
see the reviews, endorsement and references of ROMO as best practice.
Breakthrough New Methodology, Broadly Validated
MagazinePublisher ofAmerica
II. Chrysler Sebring Case Study
Business Goal
• The business goal is to drive sales of the new Chrysler Sebring and generate profit.• Advertising, product features, dealer sales acumen, and competitive
activity all contribute to the business goal.
• How will an integrated advertising plan contribute to that goal?• Largely aimed at increasing upper purchase funnel metrics
Analysis
Which Media Mix and Message Mix
Best Achieve The Goal?
The Funnel: Competitive DynamicsCompetitive Set Purchase Funnels• Sebring, like Milan but unlike the Japanese competitive set,
“bottlenecks” at Familiarity.
-45
-30
-15 0 15
30
45
Aw
are
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Fam
iliarity
T2B
Inte
nt to
Sh
op
T2B
Pu
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ase
Inte
nt T
2B
Familiarity is the bottleneck for Sebring. It constrains sales growth.
Key challenge for Sebring: Growing Familiarity of the new Sebring.
Supporting data will show that messages conveying fuel efficiency and personal relevancy of the Sebring are best poised for increasing Familiarity.
Familiarity is the bottleneck for Sebring. It constrains sales growth.
Key challenge for Sebring: Growing Familiarity of the new Sebring.
Supporting data will show that messages conveying fuel efficiency and personal relevancy of the Sebring are best poised for increasing Familiarity.
-45
-30
-15
0
15
30
45
AwarenessFamiliarity
T2BIntent to Shop
T2BPurchaseIntent T2B
Milan
Sebring
Altima
Accord
Camry
-45
-30
-15
0
15
30
45
AwarenessFamiliarity
T2BIntent to Shop
T2BPurchaseIntent T2B
-45
-30
-15
0
15
30
45
AwarenessFamiliarity
T2BIntent to Shop
T2BPurchaseIntent T2B
-45
-30
-15
0
15
30
45
AwarenessFamiliarity
T2BIntent to Shop
T2BPurchaseIntent T2B
-45
-30
-15
0
15
30
45
AwarenessFamiliarity
T2BIntent to Shop
T2BPurchaseIntent T2B
90%
30%60%
60% Funnel Flow
Awareness
Familiarity
100%60%30%
73% 39%
Conversion Rates
Accord/Camry Sebring
“Surround Sound Marketing”
“Each element of the marketing mix must find its own strength and leverage it to surround the consumer with a synergistic and consistent message.”
TV
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Exposed Control
+12%
+5%
+8%+11%
+6%
-9%
+9%
Statistically significant differences (90%) are highlighted
How did individual media contribute to campaign success metrics?
Individual Media Impact
Decomposed Media Impact
Total Awareness Recognition Familiarity (T2B) Purchase Intent(T2B)
Total Awareness Recognition Familiarity (T2B)
Not Sig
Purchase Intent (T2B)
Not Sig Not Sig Not Sig
While several media impact awareness, magazine is the main driver of familiarity
TV
Ma
gaz
ine
On
line
Ne
wsp
aper TV
Ma
gaz
ine
On
line
Ne
wsp
aper TV
Ma
gaz
ine
On
line
Ne
wsp
aper TV
Ma
gaz
ine
On
line
Ne
wsp
aper TV
Ma
gaz
ine
On
line
Ne
wsp
aper
Exposed Control
+11%+5%
+14%
+5%
+5%
+17%+5%
Note The Effect Of Television – It Works Well, But Only Among Those Already Familiar With The Brand
Statistically significant differences (90%) are highlighted
Individual Media Impact
Decomposed Media Impact Is All New Is Now Available Looks Good Has Advanced
Tech FeaturesIs Fuel Efficient
“Is Now Available”
+14pts
“Has Advanced
Tech Features”
+7pts
“Looks Good”
Not Sig
“Is Fuel Efficient”
Not Sig
“Is All New”
+12pts
Television is effective specifically among people already familiar with the brand, but doesn’t grow new familiarity
Where Is Growth Possible? (Media Mix)
59.7%
16.2%
18.5%
5.7%
0%10%20%30%40%50%60%70%80%90%
100%
Actual Mix Optimized Mix(Purchase Intent)
Optimized Mix(Familiarity)
Optimized Mix(Familiarity &
Purchase Intent)
55.6%
24.3%
14.4%5.7%
0%10%20%30%40%50%60%70%80%90%
100%
Actual Mix Optimized Mix(Purchase Intent)
Optimized Mix(Familiarity)
Optimized Mix(Familiarity &
Purchase Intent)
Where Is growth Possible? (Media Mix)
Recommended Budget Reallocation• Given the observable opportunities for messaging, media mix, and maximization, Marketing
Evolution advocates shifts from TV and Online into Magazine.• Or, going forward, assuming dramatically lower budgets, cut TV and focus on
Magazines & Online
NewspaperOnline
Magazine
Television
Where Is Growth Possible? (Message)
Analysis Can Drill-Down Into Individual Message Impact“Super Highway” Delivers Significantly More Impact On Consideration
Super HighwayGeeky Explicit Benefit
Implicit Benefit
Magazine Creative Executions• Both Marriage and Super Highway significantly increased brand metrics and image
attributes.• The medium is (part of) the message. Consider magazine genre targeting to enhance the
message
Where is growth possible? (Message)
Marriage GeekySuper
Highway
Chrysler Sebring Main Metrics Pt. Diff Pt. Diff Pt. Diff
Total Awareness Not Sig Not Sig 10%
Sebring Recognition 5% Not Sig 9%
Familiarity (Top 2 Box) 9% Not Sig 13%
Average Brand Image Attribute (Top 2 Box) 7% Not Sig 8%
Intent to Shop (Top 2 Box) Not Sig Not Sig 8%
Purchase Intent (Top 2 Box) 4% Not Sig 7%
Familiarity (Top 2 Box) 9% Not Sig 13%
Advertising Recall 14% 14% 9%Sample: Marriage Creative Magazines Control n=707 Exposed n=172 | Geeky Creative Magazines Control n=714 Exposed n=170 | Super Highway Creative Magazines Control n=504 Exposed n=408 | Time Magazine Creative Control n=782 Exposed n=81 | Insufficient sample for breakout of HeatCoolPlay creative
Reallocate spend from Geeky and POTY to Marriage and Super Highway.
Reallocate spend from Geeky and POTY to Marriage and Super Highway.
Same Budget, Better Results
Estimated ROI Based on Recommended Improvements
RecommendationOptimize Message & Media
==+166%+166%
Impact
Same Budget, Better Results
Current5.8mm
# Sales
AwarenessRelevancy
Current5.8mm
Projected: 15.4 mm
Media MixMedia Mix
MessageMessage
MagazineMagazine ExecutionExecution
Online Online ExecutionExecution
What If The Goal Changes?
TV
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On
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pap
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Exposed Control
+12%
+5%
+8%+11%
+6%
-9%
+9%
Statistically significant differences (90%) are highlighted
How did individual media contribute to campaign success metrics?
Individual Media Impact
Decomposed Media Impact
Total Awareness Recognition Familiarity (T2B) Purchase Intent(T2B)
Total Awareness Recognition Familiarity (T2B)
Not Sig
Purchase Intent (T2B)
Not Sig Not Sig Not Sig
It’s Not Just Planning for the Integrated Program…
It’s Actively Analyzing & Adapting…
Facing The Challenge:Declining Market Share and Category
• Elwin de Valk: VP Marketing Shaving & Beauty
• John Carter: Business Intelligence Manager Shaving & Beauty
“Serious issue: Market share
decline, category size shrinking.”
Elwin de Valk
Historic Measurement Structure
Q4 marketing plan
Annual learning and optimization cycle
Q4 market
Leading indicators:
Lagging indicators:
Q4 market
Leading indicators:
Lagging indicators:
Q4 marketing plan
Annual learning and optimization cycle
Leading indicators:
Lagging indicators:
Learning and optimization cycle
Learning and optimization cycle
Adaptive Measurement Structure
Measure performance of the campaign while
in field to make adjustments to improve
the performance and ROI of the campaign
Elwin de Valk
ROI Leverage Points:• Media Mix (TV, Magazine, Radio, Online)
• Online Creative Rotation
• Within Media Mix Of :30s & :15s
• Use of Radio
• Allocation Of Spending By Segments By Media
• Timing Of Spend Versus Competitors
Philips Results
1. SUCCESS ACHIEVED!!! Norelco 4th Quarter Growth• Grew Market Share By 5%
• Grew Overall Category By 3%
• Total Incremental Profit: $27,000,000
2. Elwin Promoted
Real-Time Growth in Marketing ROIDesign For Accountability (DfA)
• In-market Optimization: • Copy split, Offer, Media mix to drive traffic to site, Search, Etc.
Fle
xib
ility
Optimizetime
