Sales correlation analysis for L Oréal
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1 Sales correlation analysis for L Oréal Executive Summary January 2014
2 Research Key Findings Digital media was particularly effective to optimize L Oréal TV advertising reach and frequency: it guaranteed that all those exposed to advertising has at least 5 OTS. Shift in penetration among those exposed to TV (5+OTS) + Digital was +10% vs. the shift among those exposed to TV (5+OTS) only Shift in market share in value among those exposed to TV (5+OTS) + Digital was +37% vs. the shift among those exposed to TV (5+OTS) only! This analysis under real environment conditions can not definitely attribute the observed shifts to the presence of digital since other factors that could not be totally controlled (price, promotions,...) may have had an impact: this is a stopgap solution until more advanced methodologies (being developed in US and some EU markets) are available in Spain 2
3 Scope of the analysis All display and online video L Oréal campaigns in H were measured Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 TV campaign TV campaign TV campaign Other digital campaign Other digital campaign YouTube campaign GDN campaign GDN campaign YouTube campaign GDN = Google Display Network 3
4 Scope of the analysis All the campaigns for these four categories with display or online video were measured Hair Care 7 campaigns Facial Skin Care 9 campaigns Hair Colorant 3 campaigns Make-up 5 campaigns 4
5 Methodological Highlights How is individual purchase measured? Kantar WorldPanel (KWP) operates a longitudinal individual purchase panel where 4900 representative Spanish online panelists are reporting their individual offline purchases daily via product scanning (barcodes). How is digital ad exposure measured? The panelists connect weekly to the KWP online panel portal. During that connection KWP determines whether the panelist was exposed or not to the tags previously inserted in the digital ads. How is TV ad exposure measured? Kantar Media (KM) panel is the Spanish currency measurement panel that provides TV exposure data at individual level based on a household TV meter where each individual has to identify him/herself via a remote control. KM panelists are fused with the KWP individuals to assign them the TV exposure data (to all TV content as well as to advertising). This is operated via a fixed fusion 4 times per year. How were the different exposure groups created? Only TV (5+OTS) How is sales correlation calculated? The analysis compares the evolution of each metric among different exposed groups (period prior to the campaign vs period during the campaign). The evolution in each metric among those exposed to Only TV (5+OTS) is established as the baseline and fixed at 100 to index comparisons between groups. What are the analysis period for purchase behavior measurement? PRE measurement: 7 months (from June to December 2012) POST/ DURING measurement: 7 months (from January to July 2013) Light TV (<5OTS) +Digital TV (5+ OTS)+Digital What is the sample size? Purchase behavior was analyzed at category level and results were aggregated for a total L'Oréal brand. Final sample size was: Hair care: Only TV exposed: 901 TV+Digital exposed: 617 Hair colorant: Only TV exposed: 199 TV+Digital exposed: 120 Facial skin care: Only TV exposed: 485 TV+Digital exposed: 524 Make up: Only TV exposed: 279 TV+Digital exposed: 208 5
6 Two thirds of those exposed to L ORÉAL TV campaigns received less than 5 TV OTS Exposed to L Oréal TV campaigns were split in terciles with same size by their level of exposure to these campaigns The highest 3rd had x7.5 TV OTS more than the lowest 3rd 1/ TV OTS 1/3 4.1 TV OTS 1.5 TV OTS Total High TV exposed Medium TV exposed Low TV exposed 1/3 0.0 Non TV exposed Exposed to L Oréal TV campaigns The 1/3 of those exposed to TV L Oréal campaigns that were most exposed to them The 1/3 of those exposed to TV L Oréal campaigns that were medium exposed to them The 1/3 of those exposed to TV L Oréal campaigns that were less exposed to them Non exposed to L Oréal TV campaigns Average TV GRP s: 434 (max: 769; min: 137) Average TV reach: 71.3% OTS = Opportunity To See = one single contact with the ad in a given media Source: Kantar Worldpanel 21 L'Oréal campaigns including TV+Digital from January to July
7 Digital optimized frequency, making it possible to deliver at least 5 campaign OTS also to the 2 thirds less exposed to TV Average number of media OTS impacting viewers by their level of exposure to the TV campaigns Average TV OTS received by each group Average Digital OTS received by each group OTS Total High TV exposed Medium TV exposed Low TV exposed Non TV exposed Source: Kantar Worldpanel 21 L'Oréal campaigns including TV+Digital from January to July
8 More than 75% of digital GRPs were delivered out of the high TV exposed group Share of media GRPs received by each group based on their level of exposure to the TV campaigns TV GRPs Digital GRPs % of digital GRPs delivered out of High TV exposed Total High TV exposed Medium TV exposed Low TV exposed Non TV exposed Source: Kantar Worldpanel 21 L'Oréal campaigns including TV+Digital from January to July
9 Shift in penetration among those exposed to TV + Digital was 10% higher vs. the shift among those exposed to TV only Shift in penetration comparing the campaign period vs. the period prior to the campaign Penetration definition: Percentage of individuals who purchased L Oréal beauty products at least once throughout a specified period Sign. increase compared to Only TV exposed (test Z; confidence level: 95.5%) Only TV (5+OTS) Light TV (<5OTS) +Digital min=92 max=124 min=99 max=145 TV (5+ OTS) +Digital Baseline (100) = shift in penetration during the campaign period vs. the period prior to the campaign among those exposed to Only TV (5+OTS) Weight of analyzed groups (Total online households exposed =100%): Only TV 5+OTS (47.1%); Light TV + Digital (21.3%); TV 5+OTS + Digital (31.6%) Source: Kantar Worldpanel 21 L'Oréal campaigns including TV+Digital from January to July 2013 TV exposure defined as 5+OTS according to Spanish market conventions on effective TV reach 9
10 Shift in market share in value among those exposed to TV + Digital was 37% higher vs. the shift among those exposed to TV only Shift in market share in value comparing the campaign period vs. the period prior to the campaign Market share in value definition: Brand spend as % of the total market value Sign. increase compared to Only TV exposed (test Z; confident level: 95.5%) Only TV (5+OTS) Light TV (<5OTS) +Digital min=97 max=161 min=115 max=145 TV (5+ OTS) +Digital Baseline (100) = shift in penetration during the campaign period vs. the period prior to the campaign among those exposed to Only TV (5+OTS) Weight of analyzed groups (Total online households exposed & category purchasers=100%): Only TV 5+OTS (43.8%); Light TV + Digital (21.6%); TV 5+OTS + Digital (34.6%) Source: Kantar Worldpanel 21 L'Oréal campaigns including TV+Digital from January to July 2013 TV exposure defined as 5+OTS according to Spanish market conventions on effective TV reach 10
11 thank you! 11
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