Yes, Advertising Works. Now, What s My ROAS Across Media Platforms?

Transcription

1 Yes, Advertising Works. Now, What s My ROAS Across Media Platforms? Leslie Wood PhD - Nielsen Catalina Solutions Britta Cleveland - Meredith Corporation Dave Poltrack - CBS Corporation Tony Marlow - Yahoo Jim Spaeth PhD- Sequent Partners This information and the following materials are Alice embargoed Sylvester until - Sequent Tuesday, Partners June 14, 2016 at noon ET, following the presentation at ARF. This content, including press coverage may not be June 14, 2016 published until after that time. Receipt of these materials indicates that you agree with this embargo. Thank you for your cooperation.

2 How do the media platforms compare? What Sales & Return should I expect from my Advertising? Are there differences by category? How does the cost of the media affect it? Does creative type vary the results? How do brand characteristics affect the return? Is this changing over time?

3 Meet the Cross-Industry Project Team Step 1: Assembled a group of experts: Leslie Wood PhD, Chief Research officer, Nielsen Catalina Solutionsproject lead Jim Spaeth PhD, Partner, Sequent Partners Alice Sylvester, Partner, Sequent Partners Britta Cleveland, Senior Vice President, Research Solutions, Meredith Corporation Dave Poltrack, Chief Research Officer, CBS Corporation and President of CBS VISION, CBS Tony Marlow, Head of Field Marketing, Yahoo Step 2: Dug into the data and looked at: Correlations, Graphs, Distributions Insights

4 Meet the Dataset Nearly 1,400 studies with complete data 11 years of tracking, though not all media tracked over all years Media: TV, Online Display & Video, Mobile, Cross-Platform, Magazines 450 CPG brands in the U.S. All reported values with less than 10 studies are removed and all values with between studies are shown with faded color

5 Meet the Media Linear TV since 2009 TV networks & cable networks Magazines since 2012 Major publishing companies, large campaigns Online Display since 2004/Video since 2008 major publishers & portals; typically premium inventory. Little to no programmatic. Wide variety in size of campaigns and size of brands Mobile since 2013 In-App measurement Cross Media since 2013 Includes more than one media

6 Objectives Determine the ROAS (Return on Ad Spend) figures for each media that reflect the actual differences in the media Determine sales productivity metrics that remove media costs from the equation What factors drive sales results? $

7 Norms Across Media are Challenging: $ Changes in media landscape no clear categorization $ Each media has a different mix of years, of brands, categories and budgets Recessionary period Media costs and Incremental Sales vary by year, size of brand, category & media budget Many of the drivers of differences between media are not being controlled for

8 How Do We Measure the Incremental Sales Attributed to Advertising?

9 NCS Connects the Media People Consume with the Products they Buy Exposure Data Nielsen Media & Partner Data Set Top Box Data 4.3 MM HH Digital 100 MM HH Client Proprietary Print 50 MM HH Nielsen NPM Mobile 80 MM HH Radio 29K HH Anonymous Single Source Households Buy Data Catalina Frequent Shopper Card Data 90 MM HH Nielsen Homescan All-Outlet Data Client Proprietary Sales Data

10 How we Measure the Sales Impact of Advertising Test Design and Treatment Execution Exposed & Unexposed HHs matched on hundreds of variables to isolate ad impact Measure & Interpret Sales Impact by focusing on purchasing patterns +14% Exposed Test Households Exposed households isolated in database Unexposed (Control) Exposed (Test) Unexposed Control Households

11 The Result: Incremental Sales Campaign Start Campaign End Exposed Your Ad Drove Incremental Sales Unexposed Household Purchases Unexposed Exposed and Unexposed Comparison Accounts for 52 Weeks Purchase History & Demographics

12 Key Metrics: ROAS Incremental Sales Lift $ Campaign Costs An ROAS of $3.00 means that for every $1.00 spent on advertising, $3.00 is driven in incremental sales. Incremental Sales per Exposed or Reached HH Incremental Sales per thousand Impressions Incremental Sales Lift Incremental Sales Lift Exposed HH Impressions (000)s delivered These metrics remove the cost of the media to measure sales productivity

13 $ ROAS: All Studies Across Media $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- ROAS $3.94 $2.63 $2.55 $2.45 $2.62 $1.53 Display Linear TV Mobile Digital Video Magazines Cross Media Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

14 Incremental Sales per Reached HH: All Studies Across Media $0.33 Incremental $ per Reached HH $0.19 $0.23 $0.23 $0.26 $0.25 Display Linear TV Mobile Digital Video Magazines Cross Media Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

15 Incremental Sales per Impression (000): All Studies Across Media Incremental $ per Impression (000) $16.95 $20.56 $26.52 $23.48 $20.30 Display Linear TV Mobile Digital Video Cross Media Note: Magazine Impressions not currently included in the database Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

16 All Studies Across Media Different Metrics Paint a Different Picture Magazines Linear TV Mobile $ ROAS Incremental Sales per Reached HH Incremental Sales per thousand impressions Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

17 $ ROAS: Category All Studies $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $3.71 $3.06 ROAS $2.82 $2.78 $2.67 $2.60 $2.59 $- Baby Pet Health & Beauty General Merchandise Food Beverage Over-the - Counter Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

18 $ ROAS: Category Across Media ROAS $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- Display Linear TV Mobile Digital Video Magazines Cross Media Baby Pet Health & Beauty General Merchandise Food Beverage Over-the -Counter Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

19 Incremental Sales per Reached HH: Category Across Media Incremental $ per Reached HH $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- Display Linear TV Mobile Digital Video Magazines Cross Media Baby Pet Health & Beauty General Merchandise Food Beverage Over-the -Counter Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

20 Incremental Sales per Impression (000): Category Across Media $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $- Incremental $ per Impression (000) Display Linear TV Mobile Digital Video Cross Media Baby Pet Health & Beauty General Merchandise Food Beverage Over-the -Counter Note: Magazine Impressions not currently included in the database Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

21 How Does the Same Brand Perform Across Media?

22 $ Brand A: Very Different Results for the Same Medium, Same Period of Time 1.40 Brand A Same Time Period Three Digital Portals - Nine Different Tactics ROAS Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

23 $ Brand B: Consistently High Results for Different Years and Different Media Brand B Different Media & Years ROAS Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

24 What we do know: Brand Characteristics Matter Cluster Analysis: clustered brands into groups based on their purchase cycle, dollars per week and penetration Marquee Brands Bigger Brands, shorter purchase cycle Mid-sized Brands Infrequent Use Smaller brands, longer purchase cycles, fixed level of purchasing across time FROZEN Average Penetration 47% 15% 10% (1 year) Average Purchase Cycle (days) Average Brand Share 31% 16% 11%

25 Across Clusters: Very Different Average Performance $4.00 $3.50 $3.00 $3.63 ROAS $2.78 $0.35 $0.30 Incremental $ per Reached HH $0.31 $2.50 $2.00 $1.50 $2.18 $0.25 $0.20 $0.15 $0.22 $0.14 $1.00 $0.10 $0.50 $0.05 $- Marquee Brands Midsize Brands Infrequent Use $- Marquee Brands Midsize Brands Infrequent Use Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

26 $ ROAS: Clusters Across Media Values with studies Values with studies ROAS Marquee Brands Midsize Brands Infrequent Use $5.94 $3.70 $2.70 $2.74 $2.65 $2.95 $2.57 $1.96 $2.10 $1.75 $1.44 $3.82 $3.80 $2.69 Display Linear TV Mobile Digital Video Magazines Cross Media Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

27 Incremental Sales per Reached HH: Clusters Across Media Values with studies Values with studies Incremental $ per Reached HH Marquee Brands Midsize Brands Infrequent Use $0.73 $0.53 $0.29 $0.19 $0.12 $0.33 $0.30 $0.25 $0.25 $0.23 $0.24 $0.24 $0.13 $0.26 Display Linear TV Mobile Digital Video Magazines Cross Media Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

28 Incremental $ per Impression (000): Clusters Across Media Values with studies Values with studies Incremental $ per Impression (000) Marquee Brands Midsize Brands Infrequent Use $31.97 $22.38 $18.17 $25.36 $21.92 $28.13 $17.83 $20.68 $20.68 $11.58 $13.14 Display Linear TV Mobile Digital Video Cross Media Note: Magazine Impressions not currently included in the database Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

29 $ ROAS: All Studies Creative Type Values with studies $4.00 $3.50 $3.62 $3.27 $3.18 ROAS $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $2.62 $2.51 $2.43 $2.35 $2.06 $- Reward/ Sweepstakes * Promotion/ Coupon Nutritional * Other Interactive Equity - Branding Usage Recipe Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

30 $ ROAS: All Studies Across Years ROAS $6.00 $5.28 $5.00 $4.00 $3.00 $2.00 $3.05 $4.22 $2.23 $2.20 $4.20 $3.30 $3.27 $2.31 $2.80 $2.33 $1.00 $ Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

31 Summary/Findings It was much harder than we thought to isolate the variables to create a pure apples to apples comparison between media For example, we could not control for creative and we know from other studies that creative is a primary driver of all lift measures: ROI, ROAS and Incremental Sales While we need to use with caution, advertisers can compare their results to these norms o By Media Platform, Category, Brand Cluster & other filters Brand Clusters are better indicators of incremental sales than category

32 Implications There is no best media strategy & message drive the choice These are averages. Be accountable to sales: Know Your Numbers! Make sure that your creative is as strong as it can be, and is driving sales Leverage data and measurement to inform media decisions

33 Summary: Three Key Metrics All Studies Across Media ROAS Incremental Sales per Reached HH Incremental Sales per thousand impressions $2.63 $2.55 $2.45 $ $3.94 $2.62 $0.19 $0.33 $0.23 $0.23 $0.26 $0.25 $26.52 $23.48 $20.56 $20.30 $16.95 $1.53 Display Linear TV Mobile Digital Video Magazines Cross Media Display Linear TV Mobile Digital Video Magazines Cross Media Display Linear TV Mobile Digital Video Cross Media Source: Nielsen Catalina Solutions, Multi-Media Sales Effect Studies from 2004 Q Copyright 2016 Nielsen Catalina Solutions

34 Appendix

35 Media Type by Year NCS Began Measurement Online Display Online Video Cross Media TV Mobile Magazines Radio Source: Nielsen Catalina Solutions, Multi-Media Norms & Benchmarks: Q Copyright 2016 Nielsen Catalina Solutions