IMPACT Wave 2 Measuring the impact of online advertising on sales
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1 IMPACT Wave 2 Measuring the impact of online advertising on sales
2 Proving the ROI of digital display Digital advertising can be tracked to measure whether it influences sales online It is relatively difficult to measure the effectiveness of digital advertising at driving offline sales In general, 'difficulty measuring effectiveness is the largest barrier for advertisers to investing more budget in digital advertising 1 This is the second wave of IMPACT, an award winning effectiveness research project from the IAB, partnering with AIMIA / i2c and MTM Source: 1 IAB Advertiser Snapshot research, June 2017 Base: Advertisers currently using digital advertising to promote products or services, N=63
3 Wave 1 Recap 1
4 IMPACT: Award winning research IMPACT won a Bronze, trade body research, Media Week award Unilever pledged to increase digital spend upon seeing the results Search for IMPACT at Iabuk.net Source: IAB IMPACT research, November 2016
5 Wave 1 measured the effectiveness of online advertising at driving sales Wave 1 tested standard digital display advertising served programmatically to the desktop and mobile web from five consumer goods brands All advertising was branded with a Sainsbury s logo Source: IAB IMPACT research, November 2016 Example creatives from i2c s programmatic campaigns
6 Wave 1 demonstrated that the advertising had a positive effect on brand scores = proportional uplift vs. control and significantly higher at 95% confidence level = significantly higher at 90% confidence level Source: IAB IMPACT research, November 2016 Base: aggregated results across three campaigns where a survey was run; control (486), exposed (906), exposed group who recognised the display advertising when shown in survey (124)
7 Wave 1 measured a positive increase in on and offline sales When measuring Sainsbury s sales, Wave 1 recorded a 1.47 ROI for every 1 spent (47p of incremental sales) The project wanted to understand the halo effect of Sainsbury s branded advertising at influencing sales in other supermarkets 1 ad spend 1.47 ROI Source: IAB IMPACT research, November 2016 Based on sales of offer and total brand SKUs, across the campaign period and 6-week post period
8 Wave 2 methodology 2
9 Nine consumer goods brands were tested Served programmatically across the desktop and mobile web
10 Campaigns used a range of standard display formats Source: IAB IMPACT Wave 2 research, October 2017 Example creatives from i2c s programmatic campaigns
11 The campaigns ran across a range of established sites Source: IAB IMPACT Wave 2 research, October 2017 Top 10 sites by number of impressions served across the 9 campaigns
12 Robust data from actual sales at Sainsbury s stores was measured by AIMIA and i2c 20m Nectar Collectors s 5m Cookied 1m Modelled Audience Matched Audience: Nectar collectors Modelled Audience: Lookalike data, not all Sainsbury s customers
13 Did they see the advertising campaign? Control and exposed groups were created to measure sales and brand uplifts Exposed Group Sales data and brand metrics can be compared Control Group YES Sales data from both groups is compared during & for 6 weeks after campaign, using Nectar card data 35% 30% 25% 20% 15% +10% NO Both groups also complete a brand metrics survey 10% 5% 0% Control Exposed
14 To calculate total supermarket sales, Nielsen Homescan data was combined with Nectar s
15 Only short term sales were measured IMPACT: Changes in sales measured during the campaign period and six weeks post campaign only Longer term sales not measured Campaign period Weeks post campaign
16 Results 3
17 The advertising had a positive effect on brand awareness, favourability and recommendation Control Exposed +3% 90% 92% +4% +4% 63% 65% 59% 61% = proportional uplift vs. control and significantly higher at 95% confidence level = directional uplift Aware of brand (spontaneous + prompted) Favourable towards brand Would recommend brand in future Source: IAB IMPACT Wave 2 research, October 2017 Base: aggregated results across seven campaigns where a survey was run; control (1,086), exposed (1,287)
18 Brand values also saw a positive uplift amongst those exposed to the campaigns Control Exposed +6% 46% +12% +5% 52% 53% 51% 26% 28% = proportional uplift vs. control and significantly higher at 95% confidence level = directional uplift Is an innovative brand Is a premium brand Has consistently high quality Source: IAB IMPACT Wave 2 research, October 2017 Base: aggregated results across seven campaigns where a survey was run; control (1,086), exposed (1,287)
19 Understanding the effect on sales in all supermarkets ROI Ad spend campaigns using i2c data, on Sainsbury s purchases only 1,49 2,10 3,12 4,13 5,14 10% 25% 50% 75% 100% 6 campaigns using Homescan data, on the whole grocery market assuming effectiveness rates of 10%- 100% for the ads on other retailers Source: IAB IMPACT Wave 2 research, October 2017 The ROI on the entire market is for 6 of 9 brands, using Homescan where we had robust enough results to measure. Based on sales of offer and total brand SKUs, across the campaign period and 6-week post period
20 Understanding the halo effect What percentage of shoppers would How effective are Sainsbury s branded adverts at driving sales in other supermarkets? still look for the product in a different supermarket? potentially purchase the product from a different supermarket?
21 Understanding the halo effect 55% of shoppers believe that seeing specific supermarket branding (i.e. Sainsbury s) on an online advert would mean that the product would be available in either all supermarkets (not just the one advertised), or some other supermarkets, but not all 1 Presence of Sainsbury s branding would make no difference to the supermarket which 38% of shoppers purchased the product in 2? Sources: 1 IAB / YouGov omnibus research, Feb 2017 Base: All GB adults online (2,018) 2 i2c post campaign survey data (1,203)
22 Sainsbury s branded ads are 21% as effective in other supermarkets 55% 1 38% 2 21 % Would potentially be looking in other supermarkets Would potentially be influenced to purchase as usual in a different supermarket Sainsbury s branded ads are 21% as effective in other supermarkets Sources: 1 IAB / YouGov omnibus research, Feb 2017 Base: All GB adults online (2,018) 2 i2c post campaign survey data (1,203)
23 ROI Online advertising delivered a total supermarket ROI of 1.94 for every 1 spent 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Ad spend campaigns using i2c data, on Sainsbury s purchases only 1,49 1, % 21% 6 campaigns using Homescan data, on the whole grocery market Source: IAB IMPACT Wave 2 research, October 2017 The ROI on the entire market is for 6 of 9 brands, using Homescan where we had robust enough results to measure. Based on sales of offer and total brand SKUs, across the campaign period and 6-week post period
24 A range of ROI s were measured across the campaigns tested Sales unit uplift range*: 7% - 24% Source: IAB IMPACT Wave 2 research, October 2017 The ROI on the entire market is for 6 of 9 brands, using Homescan where we had robust enough results to measure. Based on sales of offer and total brand SKUs, across the campaign period and 6-week post period. *Sales unit uplift range for 5 of the 6 brands where data was available.
25 Summary 4
26 Advertising online delivers a positive ROI in offline sales Digital display advertising delivered 1.94 of sales for every 1 spent Offline ROI is calculated using Sainsbury s Nectar insights and Nielsen Homescan data, to measure the halo effect of branded advertising in other supermarkets Six consumer goods brands programmatically serving standard display ads to the desktop and mobile web were tested with Nectar and Homescan Advertising positively affected brand scores, especially awareness and perceptions of premium
27 Thank you! Iabuk.net/research aimia.com mtmlondon.com
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