Nevada Governor s Conference Measuring Advertising Return on Investment. December 8, 2010

Transcription

1 Nevada Governor s Conference Measuring Advertising Return on Investment December 8,

2 TNS World s largest custom research business Company owned offices in over 90 countries Revenue exceeding $2.1 Billion (2009) Over 14,500 employees Largest travel research practice in the U.S 2

3 Why Measure Drive your marketing Accountability 3

4 What are the measuring ingredients? 4

5 The Special Sauce One part Talking to the right people One part Asking the right questions One part Using the right tools One part Making sure you are accurate 5

6 Talking to the right people

7 Talking to the Right People Advertising equals online research But not only online panels are equal Hundreds but only three Manages equals maintenance equals representative equals trust Fortune 100 companies only use the top online panels You deserve the best Top three spend millions a year in maintenance biggest asset Rather have 200 managed interviews than 500 unmanaged interviews 7

8 Asking the Right Questions? 8

9 Asking the right questions We are not asking we are tricking Both art and science QRE connects the left and right It is not brain surgery but close 9

10 Using the right tools for the job 10

11 Using the right tools for the job Trick and tease at the same time Teasing using means modeling Hardware is complex but the outcomes are insightful 11

12 Successful Ads Speak to the Mind and Heart A brand creates a series of expectations an unbranded product cannot. Expectations of a brand are driven by some combination of: Performance benefits and judgments (Mind) Psychological benefits and social esteem benefits: badge value (Heart) The emotional aspects of the relationship between consumers and brands are the crucial drivers of usage and commitment. mind heart Brand Features Functionality Price/Value Social Identity Personality Aspirations The Experience Our charter is to understand the balance between the mind and the heart. To optimize your marketing efforts it is critical to identify and understand the factors that need to be communicated and delivered to nurture commitment to your brand. Strong Motivation / Relationship 12

13 Creating a Head and Heart Link Makes It Harder For Others To Compete With You RATIONAL Features, Functionality, Value, Image EMOTIONAL How it makes me feel, how I want to be perceived Motivating Selling Proposition Strong Brand Relationship Easy for competitors to duplicate Not so easy; intrinsic to the brand 13

14 But How Do You Do This?...Groups Are Not Enough NeedScope Identifies layers of need and brand Recognizes there are many layers of consumer needs and brand image Psychological framework Uses a psychological model to provide a framework for understanding needs and brand image Projective approach Uses projective photosets/collages qualitatively and quantitatively to access the emotive layer Planning tools Measures and understands consumer needs and how brands satisfy them with interactive analysis software CONSUMER NEEDS Outward directed Extroverted Receptivity Affiliation Dominance Individuality NeedScope Inward directed Introverted NeedScope BRAND IMAGE 14

15 Emotive advertising 15

16 Targeting the archetypes 16

17 Strategic insights: How the ad positions the brand VW Case study ideal for leisure More for women practical, suitable offers much space sociable, friendly Makes you feel well down to earth, practical warm, caring reliable, solid good for families composed, balanced calm, relaxed secure, protected Product Social Image Feeling Personality 17

18 Golf Plus overview Average recall below Norm Motivation Involvement Recall Only % High Motivation + 11 above Norm Key Findings: Although recall of the ad is within the norm, Intrusive Interest is above norm, indicating that the ad has potential to break through the clutter. The creative idea involves the target and motivation and involvement are clearly above the norm. The ad shows the Golf Plus as a versatile, spacious family car. ideal for leisure More for women practical, suitable offers much space sociable, friendly Makes you feel well down to earth, practical warm, caring reliable, solid good for families composed, balanced calm, relaxed secure, protected The brand image conveyed by the ad is in line with the intended positioning. It is positioned as affiliative and depicted as open, caring down to earth. Though the ad can be aired as it is there is room for improvement: As the last scene (the kangaroo) is a hindering element and respondents miss fun to drive, the last scene could be replaced by a scene demonstrating fun to drive. 18

19 Make sure you are accurate 19

20 BRAND GENERATED MEDIA CONSUMER GENERATED MEDIA Traditional Media (TV, Print, Radio) Digital Media (Mobile, Podcasts, , Etc), In-store, Sports, Internet (Banners, Websites, Micro-sites) User Generated Content and advertising Blogs & Editorializing Social Networking (YouTube, Facebook, MySpace) WOM Buzz (Traditional & Digital) Events Marketer Push Full Control Push/Pull Full control of content Push/Pull Full Control Push Less Control No control, but can Influence No control, but can Influence No control, but can Influence Customer Passive, but can turn it off Consumer has more power to tune out Interactive, but consumer is still reacting a controlled media In some cases a partnership, in others consumer has complete control Complete Control Complete Control Complete Control 20

21 Let s Take Online Campaigns As An Example 21

22 How do you measure effectiveness When only 1 out of 1000 people who views an online ad will actually click on that ad What about the impact of the ad on the other 999 people If we go to today at 3 PM, we will probably see different ads on the page How exposures are needed 22

23 TNS Panel Tracking for Digital Media Effectiveness Digital Campaign Tracking We know every time a TNS panelist sees one of our client s tagged ads, websites or e-newsletters. Ad or page served with TNS tag Pop-Ups Exposed TNS panelists complete survey TNS reports on campaign and brand metrics 23

24 Campaign Effectiveness: TNS uses groups of control vs. exposed panelists to ISOLATE the impact of the digital campaign CONTROL GROUP (Have NOT seen the campaign) TEST GROUP (Exposed to the campaign) Both groups of panelists are invited to take the exact same survey. Control & Test Samples are collected & later compared to measure the effectiveness of the campaign. Same demographics 24

25 Frequency of exposure to the online ads is the key The optimal frequency of exposure typically ranges from 3 to 8, depending on the metric and the campaign. Typical response curve analysis for a message association by frequency of exposure to the ads Provides good featured deals 80 The sweet spot: best bang for the buck Performance Average, 1.42 Actual average exposure for this campaign: costineffective Optimum, 3.66 Spending more, but not getting much more Exposures 25

26 Are you Listening to What Travelers are Saying?

27 Through Social Media Understand whether your ad campaign is working Is your positioning Is their an amenity that you are forgetting about Are your competitors winning or losing the destination selection process and why 27

28 Making sense of so many voices is a challenge Monitoring conversations but from which sites? Can you filter all the noise: spam and dupes? What matters? Amassing posts how far back in time? Which voices are more influential? Quantifying trends what does total volume and sentiment really tell you? Is there a way to assess and analyze in a meaningful way? Obtaining qualitative insights how do you derive actionable information from the data? 28

29 Cymfony is an option Traditional & social media radio, tv, blogs, discussion boards, reviews, magazines, newspapers, trades 10M pieces of content every day Select information most relevant for each client Cleanse of spam and duplicates -and- Apply value-added data Minutes Segment/analyze automatically by brand, concept, person, theme thru advanced text mining Additional human analysis 29

30 What negative messages are present for Premium Hotel and competitors? Consumers discussed negative-tone dimensions less frequently, and pickup across the brands was highly fragmented as compared to the same dimensions with positive tone. Though Premium Hotel s negative comments were distributed fairly uniformly across the various hotel attributes, the brand received slightly more negative comments about Room Quality and Staff Quality than the competition. Negative Message Presence (Among Rated Documents, Jan-Jun08) (n=765) 1 (n=241) 1 (n=679) 1 (n=405) 1 Premium Comfort Hotel Inn Comfort Premium Suites Holiday Resort Inn Place Exp. La Modern Quinta B&B Room Quality & Features 6% 3% 2% 5% Price/Value 4% 3% 3% 3% Staff/Service Quality 3% 1% 1% Location & Convenience Hotel Features & Functions 3% 3% 3% 3% 3% 3% 2% 3% Room Cleanliness 2% 1% 2% (n=584) Fairfield Victorian Inn 4% 2% 1% 2% 3% 1% 1 Food/Drink 2% 2% 1% 1% 2% General Hotel Cleanliness 2% 1% 2% 1% Policies 1% 1% Check In/Out 1% Brand Reputation 1% Hotel Appearance 1% 1% Safety & Security 1% 1% Reservation System Rewards 1% 1% 1% 30

31 Best Practices in Social Media Drive Business Results Aberdeen study found that companies with Best-in-Class social media programs have seen significant business benefits 86% Improved time to marketing information* 94% Improved customer satisfaction levels 84% Improved ability to identify and reduce risk 84% Improved number of actionable insights * Time between marketing activity and delivery of results to decision-makers Source: Aberdeen Group 31

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33 Why Measure They drove their marketing Resulting in sound accountability 33

34 The NCOT Used the Right Ingredients They leverage a managed online panel Spent time and resources designing the right questions Used tools to provide insights Measured holistically to be as accurate as possible 34

35 Advertising Awareness

36 Advertising awareness: Trends WESTERN MARKET / TOTAL 7 DMAs (n=3,621) 66% 64% 67% Any Ad Awareness (6 States) Spring 2008 Spring 2009 Spring/Summer % % 19% 21% 16% 18% 1 7% % 49% Nevada Colorado Arizona Utah Oregon California Q5a. Please indicate which of the following states you have seen any advertising for in the past 3 months. 36

37 Specific Ad Recall: NCOT Ads

38 NCOT ad awareness/exposure by market NCOT Ad Awareness 72% 47% 27% 22% 12% 54% 56% 42% 38% 31% 33% 31% 33% 27% 27% 24% 21% 14% 14% 11% 12% 12% 12% 7% 8% 22% 37% 48% 38% 23% 14% 11% Total 7 DMAs Los Angeles Las Vegas San Francisco Phoenix Salt Lake City Reno Sac/Stkn/ Modesto n= 3,621 1, Saw Any NCOT Ad Saw Print Ad Saw/Exposed to Online (Internet/Banner/ /Mobi) Ad Saw TV Commercial Abridged: QI-1a. Which, if any, of these five different print ads that advertise Nevada as a leisure destination have you seen before? Tagged Ads: 13 different types of Internet/banner/ ads were tagged as respondents viewed them. QI-1a105. Have you seen the mobile phone (mobi) ad before? Q52a; Q58. Have you seen one of these three commercials before on TV? 38

39 NCOT print ad awareness HOG Geyser Golf Purse HWY 50 NV Golf NCOT Print Ad Awareness (Base Noted in Legend) 1 9% 5% 4% 5% 1% 1% 2% 2% 2% 3% 4% 1% 2% 12% 9% 7% 8% 9% 9% 8% 5% 6% 4% 5% 5% 5% 5% 3% 1% 1% 1% 1% 2% 2% 2% 3% 1% 2% 3% 1% 2% 2% 2% 1% 1% Total 7 DMAs Los Angeles Las Vegas San Francisco Phoenix Salt Lake City Reno Sac/Stkn/Modesto n= 3,621 1, Saw Any NCOT Print Ad Saw HOG Saw Geyser Saw Golf_purse Saw HWY50 Saw NVgolf Saw, Don't Remember Which QI-1a. Below you will see five different print ads that advertise Nevada as a leisure destination. Please indicate which, if any, of these ads you have seen before. 39

40 NCOT mobile phone (mobi) ad awareness 1 NCOT Mobile Phone Ad Awareness 6% 3% 5% 3% 2% Total 7 DMAs Los Angeles Las Vegas San Francisco Phoenix Salt Lake City Reno Sac/Stkn/Modesto Saw Mobi IPHONE300 QI-1a105. Below you will see one mobile ad used to advertise Nevada as a leisure destination. Please indicate if you have seen it before. 40

41 NCOT online (tagged) ads (used by multiple publishers unless marked as Elead) Elead Elead Not a survey question. Software tags respondents who view the ads at the time that they see them. 41

42 Ad Impact

43 Perceived impact of Nevada s advertising Perceived Positive Impact of NEVADA s Advertising by Market (Unaided) (2010 Ad Aware Base Noted in Label) 32% 18% 13% 9% 38% 21% 16% 13% 18% 28% 15% 16% 5% 2% 11% 8% TOTAL 7 DMAs n=1,433 LOS ANGELES n=681 LAS VEGAS n=83 SAN FRANCISCO n=250 NET POSITIVE Sought More Information Convinced to Visit Lengthen Stay/Add Attractions 22% 11% 33% 18% 11% 12% 3% 6% 23% 13% 3% 13% 33% 23% 14% 1 PHOENIX n=204 SALT LAKE CITY n=91 RENO n=30 SAC/STKN/MODESTO n=94 Q8a. How has the advertising you ve seen affected your leisure travel plans? 43

44 Advertising Inspiration (Nevada Only) NEVADA RESULTS: Advertising Inspired Respondents to... (2010 Ad Aware Base Noted in Label) 14% 17% 16% 17% 15% 17% 19% 11% 49% 42% 36% 38% 7% 14% 1 13% 9% 16% 18% 1 7% 11% 6% 12% 22% TOTAL 7 DMAs n=1,433 Past Year NV Visitor n=704 Aware NCOT Ads n=787 LOS ANGELES n=681 LAS VEGAS n=83 Consider Summer Trip in NV Plan Trip to Lake Tahoe Plan Trip to Reno/Sparks Plan Trip to Las Vegas Plan Trip Elsewhere in NV 15% 22% 16% 33% 34% 4% 8% 11% 7% 3% 3% 4% 42% 3 8% 1 7% 27% 27% 23% 23% 26% 3% 7% 7% SAN FRANCISCO n=250 PHOENIX n=204 SALT LAKE CITY n=91 RENO n=30 SAC/STKN/MODESTO n=94 Q8b. Did advertising for travel to the state of Nevada inspire you to... 44

45 Advertising Byproducts

46 Preference for NV by ad awareness (Rank: Importance in Western Market) Ad awareness strengthens image: Specific NCOT ad aware travelers more often prefer Nevada on every attribute than those not aware. Good Value for Money (4.4) Reasonable Hotel/Meal Costs (4.3) Can Relax (4.3) Friendly/Welcoming Place (4.2) For Someone Like Me (4.2) Beautiful, Scenic (4.2) Lots to Do (4.1) Good Service (4.1) Is Easily Accessible (4.0) Clean/Unspoiled (3.9) Preferred O/N Leisure Vacations (3.8) Variety of Dining Options (3.8) Explore/Sightsee by Car (3.7) Variety of Entertainment (3.7) Offers Unique Activities (3.6) Truly Different Destination (3.5) Accurate State Travel Website (3.5) Interesting Small Towns (3.4) Good for Family/Children (3.2) Summer Sports/Activities (3.2) Easy to Use State Travel Website (3.2) Outdoor Terrain/Adventure (3.1) Great Place to Shop (3.1) Experience Western History/Culture (2.9) Offers Winter Sports/Activities (2.4) Can Gamble There (2.2) Aware of NCOT ads Good Value for Money (4.4) Reasonable Hotel/ Meal Costs (4.3) Can Relax (4.3) Friendly/ Welcoming Place (4.2) For Someone Like Me (4.2) Beautiful, Scenic (4.2) Lots to Do (4.1) Good Service (4.1) Is Easily Accessible (4) Clean/ Unspoiled (3.9) Preferred O/N Leisure Vacations (3.8) Variety of Dining Options (3.8) Explore/ Sightsee by Car (3.7) Variety of Entertainment (3.7) Offers Unique Activities (3.6) Truly Different Destination (3.5) Accurate State Travel Web site (3.5) Interesting Small Towns (3.4) Good for Family/Children (3.2) Summer Sports/Activities (3.2) Easy to Use State Travel Web site (3.2) Outdoor Terrain/Adventure (3.1) Great Place to Shop (3.1) Experience Western History/Culture (2.9) Offers Winter Sports /Activities (2.4) Can Gamble There (2.2) 46% % 46% 38% 52% 5 55% 25% 36% 61% 38% 64% 44% 34% 32% 39% 24% 38% 32% 4 41% 45% 28% 75% Not Aware of NCOT ads Good Value for Money (4.4) Reasonable Hotel/ Meal Costs (4.3) Can Relax (4.3) Friendly/ Welcoming Place (4.2) For Someone Like Me (4.2) Beautiful, Scenic (4.2) Lots to Do (4.1) Good Service (4.1) Is Easily Accessible (4) Clean/ Unspoiled (3.9) Preferred O/N Leisure Vacations (3.8) Variety of Dining Options (3.8) Explore/ Sightsee by Car (3.7) Variety of Entertainment (3.7) Offers Unique Activities (3.6) Truly Different Destination (3.5) Accurate State Travel Web site (3.5) Interesting Small Towns (3.4) Good for Family/Children (3.2) Summer Sports/Activities (3.2) Easy to Use State Travel Web site (3.2) Outdoor Terrain/Adventure (3.1) Great Place to Shop (3.1) Experience Western History/Culture (2.9) Offers Winter Sports /Activities (2.4) Can Gamble There (2.2) 41% 45% 34% 38% 41% 31% 48% 43% 51% 19% 29% 57% 35% 62% 42% 3 27% 32% 21% 33% 25% 35% 37% 4 24% 77% Q6b. For each of the attributes mentioned below, please select the destinations you prefer... % selecting Nevada. 46

47 Amount of travel Average Number of Overnight Trips in Past 12 Months (If Any) Total (Top of Bars) Elsewhere To Nevada Total 7 DMAs Los Angeles Las Vegas San Francisco Phoenix Salt Lake City Reno Sacramento/ Stockton/ Modesto NV Visitor: Past 3 Years NV Visitor: Past Year Future Nevada Visitor Saw/Heard Any NCOT Ads n= 3,621 1, ,136 1,415 2,049 1,687 Q1. How many leisure trips that required an overnight stay have you taken in the past 12 months? Q10b. Please indicate the total number of leisure trips you have made to Nevada in the past 12 months (overnight). 47

48 Return on Investment (ROI) Spring/Summer 2010

49 ROI FY 2010: NCOT print/online/.mobi/tv ads FISCAL YEAR 2010 Conservative Liberal* Mid-Point** Total Households 15,340,020 15,340,020 15,340,020 % Taking a Leisure Trip in Past 12 Months 69.7% 69.7% 69.7% Base: Qualified HH Taking a Leisure Trip 10,684,324 10,684,324 10,684,324 % Seen or Heard NCOT Ad for Nevada: 42.9% 42.9% 42.9% # Leisure Travel HH Who Recall NCOT Ad 4,583,575 4,583,575 4,583,575 % NCOT Ad: Net Seen/Visited 16.4% 16.4% 16.4% # Leisure Travel HH Seen & Visited 1,752,229 1,752,229 1,752,229 % NCOT Ad: Net Seen/Visited/Positive Impact (Q8a/b) 5. # Leisure Travel HH Seen & Visited & Positive Impact 528,874 $ from Leisure HH (Non-Gaming/Non-Lodging/Non-Transport TO/FROM). $670,397,813 $2,221,115,988 $1,445,756,900 $ from Leisure HH (Lodging) $252,942,467 $838,031,609 $545,487,038 $ from Leisure HH (Gaming) $384,239,412 $1,273,035,629 $828,637,520 $ from Leisure HH $1,307,579,693 $4,332,183,226 $2,8819,881,459 Direct Visitor Spending per NCOT Ad $ $ $1, $ Direct visitor Spending per NCOT Ad $ for Comparison $ $ $ Direct Visitor Spending per NCOT Ad $ (for Comparison) $ $ $ Tax Revenue (Non-Gaming/Non-Lodging Taxes) State Tax Rate 8.1% $54,302,223 $179,910, ,106,309 Tax Revenue (Lodging Taxes) 12% -- Conservative Average $30,353,096 $100,563,793 $65,458,445 Tax Revenue (Gaming Taxes) = 6.599% $25,355,959 $84,007,621 $54,681,790 Total Tax Revenues $110,011,278 $364,481,809 $237,246,544 Operating Budget $10,591,800 $10,591,800 $10,591,800 Net Effect on State $99,419,478 $353,890,010 $226,654,744 Tax Revenue (State & Local Taxes) per NCOT Ad $ (NCOT Ad Production + Placement Costs) $30.78 $ $ Bottom Line (for Comparison) $16.61 $53.95 $ Bottom Line (for Comparison) $19.50 $56.14 $37.82 NCOT Ad awareness based to print ads, TV ads, and mobile phone ads shown to respondents plus tagged online exposures; impact based to Q8a or b. Market = 7 DMAs: Los Angeles, Las Vegas, San Francisco, Phoenix, Salt Lake City, Reno, and Sacramento/Stockton/Modesto. * Liberal calculations use the number of leisure travel HH who saw/heard ads and visited Nevada 49 ** Mid-Point calculations use the sum of the Liberal HH plus Conservative HH (saw/heard ads, visited, positive impact) divided by two

50 Closing Remarks

51 Takeaways It is the right people You need to trick them You need the right tools Accuracy means accountability I love numbers but most people don t Turn the numbers into jobs Turn the numbers into amenities or lack their of Turn the numbers into dollars that people can relate to 51

52 Name of TNS contact 52