why tv is still the most effective medium€¦ · why tv is still the most effective medium ffwd...
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MarketShare confidential and proprietary 1
Why TV Is Still The Most Effective Medium FFWD Advertising week January 26th, 2016
MarketShare confidential and proprietary 2
MarketShare: Connecting marketing to revenue
Industry-leading marketing analytic for mix modeling, optimization, and cross-channel attribution
Full suite of globally scalable enterprise SaaS solutions
Professional services to align and promote organizational adoption and sales success
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Answering the questions that matter most to Marketers
What portion of revenue is coming from marketing?
How much should I spend?
What are the most efficient marketing channels?
What is the optimal investment mix?
What is the expected return on the next dollar?
What will happen to my sales if my competitor doubles their marketing spend? We open 10 new stores? The stock market crashes? Etc.
MarketShare confidential and proprietary 4
We work with many leading global brands
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Forrester names MarketShare as leader
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MarketShare offers a combination of advanced analytics, cutting edge technology, and the deep domain expertise
Math & Science
Data & Technology
How we do it
Domain Expertise
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We build holistic models of the entire ecosystem…
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Promotions
TV
Radio
Direct Mail email
Mobile Signs
Digital Signage
Magazine
Newspaper
Catalog
Banner Ads
Video Ads
Bing
Content Commerce
Facebook Twitter
Blogs
Google Bing
Consumer Confidence
Interest Rates
Offering
Pricing
Discounts
Bundles
Coupons
Displays
Shelf space
Training Support
Conferences
Trade Shows
Paid
Owned
Earned Controllable
Non-controllable
Quality
Innovation
Competition
In Store
Seasonality
Economy
Service
Events Sales
Product Brand
Outdoor
Broadcast
Display
Paid Search
Website
Social Media
Awareness
Consideration
Purchase
Organic Search
WOM
PR
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..and measure both the direct and indirect impacts of media
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Response curves inform actionable recommendations
TV (more “responsive”)
Paid Search (less “responsive”)
Current spend
Optimal spend Marketing Investment
Revenue
+$100 Spend; + $200 Revenue
-$100 Spend; -$50 Revenue
Optimization increases revenue by $150 with no incremental budget
illustrative
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MarketShare Analytic Framework: Attribution ► Optimization ► Allocation
OWNED/EARNED ACTIVITIES
COMPETITOR ACTIVITIES
MARKETING ACTIONS
MARKET CONDITIONS
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Big advertisers are shifting significant budgets from TV to digital because of the perceived higher efficiency
“We are shifting more advertising to digital media, search, social, video & mobile as consumers
spend more time there. In general digital media delivers a
higher ROI than TV or print”
Procter & Gamble
“We continue to drive A&C [advertising & consumer] efficiencies by consolidating media providers, reducing non-working media costs and shifting
spending to lower-cost, digital media outlets while maintaining share of voice at historical levels”
Mondelez
“We are increasing our investment in the highest return
chocolate business and increasing digital within our
media mix”
Hershey
“We like the digital space because it better enables us to target to specific consumers in that space and it's not one size fits all. There are
some brands right now that are 100% digital - Swanson's is pretty close and there are others that totally rely on TV up until now. Condensed
soup was largely a TV marketed brand”
Campbell Soup
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We wanted to better understand TV effectiveness in a changed media landscape
What is the most effective media channel across industry verticals?
How has media effectiveness changed in the digital era?
How important is the right media mix?
How do the different online video platforms compare?
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MarketShare confidential and proprietary 13
Partnered with leading US cable broadcaster and media agency on broad, cross industry analysis of marketing effectiveness
Analyzed media mix models from over 20 Fortune 500 brands
Included actual market observations from 2009–2014
Over $31 billion in US advertising spend
Results rigorously validated and tested
Wide range of industries
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So, what did we learn?
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TV is the most effective marketing channel across a wide variety of industries
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With $1 million to spend, TV provides up
to 7x the return of online, print, and radio
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TV provides the largest indirect impact through organic search and web activity
Advertisers that do not consider the full impact
of TV are at risk of misallocating resources
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Similar trends were found for the auto category in Canada
TV PRINT RADIO ONLINE PAID SEARCH
DIRECT
INDIRECT
LIFT FACTORS BY CHANNEL FOR CANADA COMPACT AUTO SEGMENT
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Comparison of the change in lift factors from 2009 to
2014 for a major automotive brand in the US
Over the period analyzed, TV was the only medium that retained its relative effectiveness
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MarketShare confidential and proprietary 19
Potential reasons why relative media effectiveness may have changed
Click fraud (bots)
Viewability issues
Ad blockers
Inventory pricing
Lower consumption (e.g. traditional print)
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TV (more “responsive”)
Paid Search (less “responsive”)
Marketing Investment
Revenue
$1,000
$300
While TV is the most effective channel, diminishing returns ensures a proper marketing mix is essential to obtaining optimal results
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illustrative
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Brands that optimize their media plans can gain a significant increase in sales
Comparison of sales impact from shift to Optimal mix and Digital Heavy mix
relative to Baseline
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A significant portion of the population browses the Internet while watching TV, or is in the proximity of their laptops, tablets or smartphones
If a TV ad brings a brand or a product to the attention of consumers, an immediate spike in online activity follows
The bursty nature of web data makes immediate response modeling extremely powerful, capturing within minutes spikes in website visits or inbound calls following TV activity
Furthermore, immediate response to ad exposure represents opportunity to fine tune TV advertising
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TV Attribution can be used to measure ad effectiveness at a granular level and improve TV allocation
DMA-level ratings data and web response data at minute level
Analytics to quantify base vs. incremental traffic
Impact of each attribute within an airing, such as creative, network, day part, ad length or pod position
TV Commercial
time
Web Sessions by DMA
Incremental Sessions
Base Sessions
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In one example, optimizing TV by dayparts led to a 3% lift in sales
+3% sales lift
Optimal TV allocation by daypart for an online subscription service
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Comparing online video performance across platform suggests that content matters
The latter two groups outperformed their peers in ROI despite having 20%-70% fewer impressions
User Gen. Exchanges Broadcast/Cable Targeted
ImpressionsROI
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Key takeaways from the study
Across the industries examined, TV has the highest relative efficiency in achieving KPIs, when compared to other media drivers at the same spend level
In spite of the changes in consumer habits over the last few years, TV’s effectiveness at driving advertiser KPIs has not diminished;
A proper media mix rules and TV Marketers can now use advanced analytic techniques to optimize TV spend more effectively
As the lines between linear and online merge and media outlets explode, smart marketers will understanding invest in ROI
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Last Thoughts
Solving cross-media and cross-channel analytics the right way is critical
Don’t get comfortable – the data and science of marketing effectiveness are
changing rapidly
Smart brands are looking for best-in-class partners for help
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FOR MORE INFORMATION, PLEASE VISIT THINKTV.CA