Project Apollo s Spotlight on Consumers and ROI Results Preview from USA Pilot

Transcription

1 Project Apollo s Spotlight on Consumers and ROI Results Preview from USA Pilot Authors: Don Gloeckler, The Procter & Gamble Co., USA Linda Dupree, Arbitron Inc., USA Leslie Wood, Leslie Wood Research, USA Presented by: Bernhard Glock, The Procter & Gamble Co., Switzerland Linda Dupree, Arbitron Inc., USA 06-NPM-202 6/06

2 Project Apollo: Addressing Today s Challenges to Marketers Today s traditional marketing model is obsolete. We re applying antiquated thinking to a new world of possibilities. Jim Stengel Global Marketing Officer Procter & Gamble 2

3 Procter & Gamble s Specific Needs Connect effectively and efficiently with consumers, when and where they are receptive, so they welcome us into their lives More specifically, improve upon:» Sample sizes: sufficiently large to study our target» Granularity and speed of data delivery»measurement of new and emerging data, including in-store/retail exposures as well as mass media» Ease of measurement for consumers: passive is ideal Deliver a measurement system that maps both consumers media uses and purchasing 3

4 Improving Upon Marketers Current Planning-to-Payoff Process Cycle Achieve improved payoff; better» Media targeting»media inventory allocation»cross-media optimization» Estimation of marketing ROI 4

5 Objective: Improve Upon Current Marketer- Centric Seven-Stage Process Cycle Planning-to-Payoff Process* * Adapted from a presentation by R.J. Palmer,

6 Today s Agenda: Project Apollo s Progress Toward Return on Investment Project Apollo s connection of consumer-centric information Early proof-of-performance results Project Apollo s preview of value-to-the-marketer marketing guidance 6

7 Project Apollo s Design: Connecting Consumer-Centric Information Single-source panel obtains consumers» Household and persons attributes» Multimedia exposure information»purchase behavior Facilitating better communication targeting Yielding a fuller consumer-centric view Enabling the estimation of return on investment 7

8 Project Apollo s More Consumer-Centric Vision of the Planning-to-Payoff Cycle Planning-to-Payoff Process* * Adapted from a presentation by R.J. Palmer,

9 Project Apollo s Consumer-Centric, Single-Source Measurement Platforms PPM SM Measurement of Radio and Television Homescan Capture of Purchasing Online Surveys of Readership, Purchasing 9

10 Partnerships to Achieve the Project Apollo Vision Formal participation of marketers with substantive input to Pilot from sponsors» Kraft, Pepsi, Procter & Gamble, Pfizer, SC Johnson, Unilever»Conversations with other advertisers in progress Media-research partnerships: Arbitron and VNU units (ACNielsen Homescan and Nielsen Media Research) Media participation in encoding»u.s. nationwide TV broadcasters, TV cable networks, radio networks 10

11 Project Apollo s Panel-Performance Payoff: Solid Performance to Date Solid representation of U.S. population Persons level compliance also solid Daily PPM carry time impressively consistent over time 11

12 Project Apollo Also Shows Acceptable Representation of Population March 2006 Household Size 1 Member 2 Members 3-4 Members 5+ Members Income <$25K $25-$35K $35-$50K $50-$69K $70K+ Age of Female Head of Household No Female Head Race White Black Other Index Education of Male Head of Household High School or Less Some College College Graduate No Male Head Householder Occupation White-Collar Blue-Collar Other Hispanic Yes No Education of Female Head of Household High School or Less Some College College Graduate No Female Head Census Region East Central South West Presence of Children <8 Yes No Index

13 Project Apollo Pilot Performance Indicators: Similar to Local PPM Performance in USA March 2006 Panelist Performance Indicators Compliance Rate Median Daily Undock/Dock Times Median Daily In-Tab Motion (Hours) 76% 7:20AM - 10:43PM 15:00 Hrs 13

14 Project Apollo Status of USA Pilot 1st quarter 2006»5,400 installed households (11,000 Persons 6+)» Advertiser-Media Summit held March nd quarter 2006»Initial reports available»initial non-cpg consumer surveys fielded»print media survey fielded 3rd and 4th quarters 2006»Additional reports delivered» Industry discussions on panel expansion Additional pilot participants welcome! 14

15 Two Illustrations of Project Apollo s Contributions to Two Stages of the Planning-to-Payoff Cycle: Targeting and ROI 1. Redefines the marketer s target from traditional sex-age demographics to brand-related consumer behavior» Providing consumer-centric guidance on targeting 2. Brings insights to help estimate return on investment» Clues to achieve more efficient delivery of advertising message in the context of exposure to advertising and to different types of purchase behavior (purchase segments) 15

16 Refocusing on the Real Brand Target Planning-to-Payoff Process* * Adapted from a presentation by R.J. Palmer,

17 Targeting on the Basis of Consumer Behavior Project Apollo targeting identifies consumers in terms of their behavior as relevant to the marketer s brand Thus Project Apollo s information provides guidance on:»brand purchase behavior in combination with more conventional data on Media usage Plus single-source purchase occasions As shown in the following examples 17

18 Traditional Sex-Age Demo Target vs. Project Apollo Consumer Behavior Target Cable Net Gen. Entertain,Movie A LifeStyle/Real Life C Real Life/Ent C W25-54* Index Rank W25-54 Brand X Purchasers Index Rank Gen. Entertain,Movie C Women s Inform Women/Family * Source: NTI Corrected 6/1/06 18

19 Project Apollo s Advanced Targeting Guidance Traditional Sex-Age Target vs. Brand-Loyal Customers and Brand Switchers W25-54* W25-54 Brand X Loyal W25-54 Brand X Switchers Cable Net Index Ran k Index Rank Index Rank Gen. Entertain,Movie A LifeStyle/Real Life C Real Life/Ent C Gen. Entertain,Movie C Women s Inform Women/Family * Source: NTI Corrected 6/1/06 19

20 Guidance on ROI Planning-to-Payoff Process* * Adapted from a presentation by R.J. Palmer,

21 Focusing on Consumers Purchase Occasions: An Approach Toward the Return on Investment Goal Project Apollo s single-source information on consumer purchasing»introduces the element of time of purchase relative to time of media exposure»provides segmentation based on purchasing (as well as media use) 21

22 All Detergent Purchase Occasions Detergent Purchasing Exposed to Brand X Ads Within 4 Weeks of Purchase Occasion 1500 GRPs Total Detergent 22

23 Brand X Purchase Occasions vs. Total Indicates Efficient Targeting Purchase Occasions Exposed to Brand X Advertising Within 4 Weeks 1500 GRPs Total Detergent Total Brand X 23

24 Classifying Consumers Purchase Occasions: Loyalty and Share of Category Purchases Purchase occasions classified as:»brand X Loyal all of household s category purchases were Brand X during previous 13 weeks»brand X Lower Share of Purchasing Brand X s relatively high share of total-category purchases: lower than Loyals over past 13 weeks»brand X Lowest Share of Purchasing Brand X shows lowest share of total-category purchases among these three groups, past 13 weeks 24

25 Brand X Campaign Efficiently Reaches Best New Prospects Purchases Exposed to Brand X Advertising Within 4 Weeks 1500 GRPs Total Brand X Loyal Lowest Share of Total Lower Share of Total 25

26 Higher Reach and Frequency for Brand X vs. Total Detergents Purchases Exposed to Brand X Advertising Within 4 Weeks 100 Reach Average Frequency GRPs Total Detergent Brand X

27 Reach and Frequency Both Higher for Lower-Share Non-Loyal Consumers Purchases Exposed to Brand X Advertising Within 4 Weeks 100 Reach Avg Freq GRPs Total Brand X Loyal Lowest Share of Total Lower Share of Total

28 In Conclusion: First Demonstration of Project Apollo s Value to Marketers New consumer-centric intelligence on targeting complements traditional sex-age information Behavior-defined targeting adds value to marketers decision making Delivery of media weight varies across consumerbehavior-defined targets: not flat across population, even for mass media delivery and high-penetration, large brand»pointing towards the value of new advertising delivery intelligence Suggests the possibility of even more intelligence for smaller brands 28