Big Shifts in Advertising and Media ROI Landscape How to take advantage. Randall Beard Global Head, Advertiser Solutions, Nielsen

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1 Big Shifts in Advertising and Media ROI Landscape How to take advantage Randall Beard Global Head, Advertiser Solutions, Nielsen

2 Real-time optimization presents significant opportunity to improve Big shifts in media landscape Digital, Fragmentation, Innovation Clients are feeling acute pain trying to optimize advertising 3 R model is a simple, but powerful way to improve advertising performance Solutions exist today to optimize Reach and Resonance to earn the best Reaction

3 We measure what people Watch and Buy Consumer Purchase Media Usage US based example

4 We measure what people Watch and Buy Consumer Purchase Media Usage US based example

5 Rise of Digital TV Online Mobile DVR VOD Tablet Fragmentation TV Main Networks Broadcast and Satellite Cable Over-The-Top Mobile Apps Tablet Innovation Advanced Mix Modelling Fusion Buyer Response Based Advertising Real-time Measures

6 Clients voice key media pain points How much should I spend? How do I allocate my budget? How do I optimize ROI in real-time?

7 Ingredients for Success REACH Reach the right people X RESONANCE = Influence their opinion REACTION Impact their behavior Did my intended audience see my campaign? Did my campaign deliver the desired brand impact? Did my campaign deliver the desired consumer response? R E A L T I M E

8 At the forefront of media Acquisitions Joint Ventures Alliances

9 Our view of brand advertising effectiveness How to increase ROI Advertising Goal Business Question Solution Improvement Opportunity Reach (Audience) Did the ad reach the right audience? Nielsen Campaign Ratings 15-30% Reach (Viewability) Was the ad even seen? Viewability (AdSafe) 30-50% Resonance Reaction (Sales) Was the message effective? Nielsen Brand Effect Total opportunity for improvement: 15-30% %

10 Identify delivery problems in real-time Digital Placement 68% Off-Target 32% 60% 41% 46% 32% 31% 51% 28% 32% 18% Site 1 Site 3 Site 5 Site 7 Campaign On-Target Delivery by Site US based example

11 Optimize audience delivery by focusing on better placements and high performing sites Daily On-Target Delivery Beverage company Digital Placement On Target Impressions Off Target Impressions 41% on target 16% on target Daily Online Campaign Impressions US based example

12 Optimize ROI by serving viewable ads Digital Placement Assumed viewable ads 12 US based example, Ad Safe

13 Optimize ROI by serving viewable ads Digital Placement Actual viewable ads 13 US based example, Ad Safe

14 Optimize ROI by serving viewable ads Digital Placement Delivered viewable ads 14 US based example, Ad Safe

15 Optimize ROI by serving viewable ads Digital Placement ROI 2X $2.80 $1.40 Before After 15 US based example, Ad Safe

16 Optimize based on creative performance TV Creative Copy A versus Beverage Company US based example Copy B

17 Optimize based on creative performance TV Creative Beverage Company Copy A & Copy B Breakthrough Brand Recall Media Weight 57% 44% 37% 100% 15% 50% 50% Copy A Copy B Copy A Copy B Copy A Copy B US based example Illustrative

18 Analyze performance of :15 v :30 spots to get the most from your television spend TV Length :15 spot versus :30 spot Food Company US based example

19 Analyze performance of :15 v :30 spots to get the most from your television spend TV Length 0:15 vs. 0:30 Comparative Performance General Recall Brand Linkage :15 56% :30 49% :15 77% Shift :30s to :15s for higher results at lower cost :30 76% US based example

20 Optimize based on media placement TV Placement Brand X Ad Breakthrough by Program Genre Ad Breakthrough Media Weight 55% 52% 51% 48% 42% 41% 40% 40% 35% 30% Genre A Genre B Genre C Genre D Genre E Genre F Genre G Genre H Genre I Genre J US based example

21 Optimize by reallocating budget to top performing creatives Digital Creative 3 Key Opportunities for Improvement Increase in Brand Lift (CPG Example) Creative Units 56% better Exposure Frequency Site Performance 23% Original 34% Optimized Source: Blinded Nielsen Online Brand Effect case US based example

22 Identify and optimize optimal frequency Digital Frequency Optimal Frequency Purchase Intent Cosmetic Company and Female-Focused Online Content Publisher 260% 50% 14% 1X Not Exposed Exposed US based example

23 Compare mobile effectiveness across platforms Digital Placement Mobile banners out-performed Online banners iad: New Car Brand iad Banner vs. Online Banner* performance Brand Recall 2.5x New Car iad Ad Recall 1.7x *Online banners for PC US based example

24 Improve through Marketing Mix Models MMM Objectives: Optimize based on: Results: Improve ROI Identified best performing marketing elements Internet Paid TV Trade Print Open TV Promo Packs PR Sales Return per Dollar Invested Increase Sales Volume Reallocated spending Total +10% Shipments

25 Real-time optimization presents significant opportunity to improve Exposure Optimization BRAND LIFT Creative Rotation :15 v. :30 Site Optimization No real-time optimization TIME Illustrative

26 Real-time optimization presents significant opportunity to improve Opportunity for improvement: Reach - Audience 20-40% Reach - Viewability 10-50% Resonance 30-60% Total opportunity %

27 Real-time optimization presents significant opportunity to improve Big shifts in media landscape Digital, Fragmentation, Innovation Clients are feeling acute pain trying to optimize advertising 3 R model is a simple, but powerful way to improve advertising performance Solutions exist today to optimize Reach and Resonance to earn the best Reaction

28 Big Shifts in Advertising and Media ROI Landscape How to take advantage Randall Beard Global Head, Advertiser Solutions, Nielsen

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