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Copyright ©2013 The Nielsen Company. Confidential and proprietary. 1 UPCOMING WEBINARS Boomers: Marketing's Most Valuable Generation– APRIL 4 TH.

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Presentation on theme: "Copyright ©2013 The Nielsen Company. Confidential and proprietary. 1 UPCOMING WEBINARS Boomers: Marketing's Most Valuable Generation– APRIL 4 TH."— Presentation transcript:

1 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 1 UPCOMING WEBINARS Boomers: Marketing's Most Valuable Generation– APRIL 4 TH

2 OPTIMIZING REACH AND RESONANCE TO HEIGHTEN REACTION Randall Beard Global Head, Advertiser Solutions, Nielsen #3Rs IMPROVING AD PERFORMANCE WITH THE 3Rs:

3 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 3 TODAY’S PRESENTER RANDALL BEARD Global Head – Advertiser Solutions, Nielsen Randall is responsible for helping clients build brand equity and ROI via improved advertising and media programs. He has 25-plus years of global experience across consumer packaged goods, financial services and high-touch service brands, including Procter & Gamble, American Express and UBS. Randall holds a B.S. degree in Marketing from the University of Tennessee and an MBA from the Darden School at the University of Virginia.

4 OPTIMIZING REACH AND RESONANCE TO HEIGHTEN REACTION Randall Beard Global Head, Advertiser Solutions, Nielsen #3Rs IMPROVING AD PERFORMANCE WITH THE 3Rs:

5 OUR CONVERSATION The Advertising Environment: big shifts The Pain: you’re challenges trying to improve advertising effectiveness The Treatment: “3 R” model - simple, but powerful way to improve ad performance A Cure: solutions to optimize Reach and Resonance to earn the best Reaction

6 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 6 IN WHICH AREA DO YOU WORK? Brand Research Media Other POLL #1

7 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 7 NIELSEN MEASURES WHAT PEOPLE WATCH & BUY… Audiences Consumer Purchase & Advertising

8 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 8 Rise of Digital TVTablet VODDVRMobileOnline Big data Big Data Consumer Engagement Granularity

9 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 9 Fragmentation Broadcast and Satellite CableMobile Apps TabletTV Main Networks Over-The-Top Complexity Reach Planning Cross-Platform Effectiveness

10 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 10 Innovation Buyer Response Based Advertising Advanced Mix Modelling Digital Audience Measurement Real-time Measures Prediction modeling eGRP’s Common metrics In-flight optimization

11 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 11 CLIENTS ARE TELLING US THEIR PAIN POINTS: 1.How much should I spend? 2.How do I allocate my budget? 3.How do I optimize in real-time?

12 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 12 POLL #2 How much should I spend? How do I allocate my budget? How do I optimize in real-time? WHICH IS YOUR BIGGEST PAIN-POINT?

13 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 13 INGREDIENTS TO INCREASE YOUR ADVERTISING ROI Reach the right people X= REACH Did my intended audience see my campaign? RESONANCE Did my campaign deliver the desired brand impact? Influence their opinion REACTION Did my campaign deliver the desired consumer response? Impact their behavior REAL – TIME

14 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 14 INVESTING TO HELP YOU IMPROVE ADVERTISING ROI Joint Venture Acquisitions Alliances

15 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 15 WE CAN HELP OPTIMIZE ADVERTISING ROI NOW Advertising Goal Reach (Audience and Viewability) Resonance Reaction (Sales) Solution Nielsen Catalina Solutions, Nielsen Campaign Ratings Nielsen Brand Effect Nielsen Catalina Solutions, Marketing Mix Models

16 KEY TAKE-AWAYS

17 REACH X RESONANCE = REACTION

18 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 18 MEASURE SALES LIFT THROUGH MARKETING MIX MODELS US based illustrative example Incremental salesMarginal ROI Measure incremental sales due to each tactic Measure effectiveness and efficiency of spend

19 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 19 REALLOCATE TO ACHIEVE OPTIMAL MEDIA MIX US based Illustrative example $ Spent Sales Response TV Online $1.17 ROI Original allocation $ Spent Sales Response TV Online $1.43 ROI Optimal allocation

20 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 20 USE MMM SIMULATION TO DETERMINE HOW MUCH TO SPEND & HOW TO ALLOCATE US based illustrative example Historical Total Trade Total Online Total Print Total TV Total Marketing Budget Item $51M $0.1M $0.9M $8M $60M Input $60M $42M $2M $0.7M $15.3M $60M Output ~$1.5M profit increase with same marketing budget Simulate HistoricalForecasted Units/Volume Revenue Profit Item 64M $242M $102.3M 65M $245M $103.8M

21 KEY TAKE-AWAYS Use MMM simulation to determine how much spend to achieve volume & financial goals Use MMM response curve simulation to optimize spending across media touch points

22 REACH X RESONANCE = REACTION

23 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 23 SINGLE SOURCE DATA ENABLES US TO ISOLATE THE IMPACT OF ADVERTISING Watch Data Nielsen Media Data TV, Digital, Print, Mobile Partner Data Buy Data Catalina Frequent Shopper Card Data Nielsen Homescan Data Single Source HH’s

24 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 24 IDENTIFY THE MOST RESPONSIVE CONSUMERS TO INCREASE SALES LIFT FROM YOUR SPENDING US based example +17% Identify demo campaign (baseline) sales lift 1 +33% Measure buyergraphic campaign sales lift 4 Identify most responsive consumer segment 2 % Pop % Exposures % Campaign Sales Response % Pop % Exposures % Campaign Sales Response Consumer Segment 1 Consumer Segment 2 Identify where they can be reached + execute 3 Demo Rating Buyer Rating Demo Rating Buyer Rating Network ANetwork BNetwork C Demo Rating Buyer Rating

25 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 25 DIGITAL AUDIENCE DELIVERY HAS BEEN DIFFICULT TO MEASURE Still left asking “Who saw my ad?” Server Log Counts Page Views Click Through Rates Online measurement today 14, , % Above the Fold 20% Demo: Female Other measurement today Demo: Female 18-22

26 Copyright ©2013 The Nielsen Company. Confidential and proprietary % 68% Off-Target US based example On-Target Delivery by Site IDENTIFY BEST AND WORST SITES FOR AUDIENCE DELIVERY IN-FLIGHT US based example On-Target Delivery by Site

27 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 27 Daily Online Campaign Impressions 41% on target IMPROVE AUDIENCE DELIVERY IN-FLIGHT BY FOCUSING ON BETTER PLACEMENTS AND HIGH PERFORMING SITES Daily On-Target Delivery – Beverage company US based example 16% on target

28 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 28 DIGITAL AUDIENCE DELIVERY IS AN ISSUE ACROSS DEMO GROUPS % On-Target vs. % of Population 1 Source: Based on 1,700+ Nielsen Online Campaign Ratings campaigns run to date. Each data point shown has minimum of 30 observations from OCR studies DEMOGRAPHIC % on target 1 % of population Index P18+91%78%117 P %44%169 M %22%263 F %22%222 F %14%219 M %5%430 The narrower your audience, the bigger the opportunity

29 KEY TAKE-AWAYS Improve advertising ROI by identifying & delivering your advertising to the most responsive audience Real-time measurement allows you to make adjustments in-flight, before it is too late

30 REACH X RESONANCE = REACTION

31 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 31 MEASURING RESONANCE IN FLIGHT IS KEY TO IMPROVING AD PERFORMANCE What happened in the ad? Who was being advertised? Why should I buy the product? Did I like the ad? Has intent to purchase changed? General Recall (Breakthrough) Brand RecallMessage RecallLikeability Intent to Purchase

32 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 32 DRIVING HIGHER RESONANCE SCORES WILL DELIVER HIGHER SALES.... Weak Mix Model Ad Strong Mix Model Ad.... Scatter Plot: Creative-level TV Ad Performance: Brand Effect TV General Recall Index versus Mix Modeled Incremental Volume per GRP Index Weak BETV Ad Strong BETV Ad MMM/BETV Cross-Validation Average Ad CPG Client X

33 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 33 IDENTIFYING IN-MARKET AD PERFORMANCE DRIVERS ENABLES CLIENTS TO OPTIMIZE IN FLIGHT IN-MARKET AD PERFORMANCE Creative Factors Media Weight Program Factors Placement Factors Cross- Platform Synergy Competitive Advertising

34 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 34 IMPROVE BREAKTHROUGH AND BRANDING RESULTS WITH IN-FLIGHT CREATIVE EDITS US based example, Nielsen TV Brand Effect, 5/1/11 – 7/31/11, Hispanic A18+ Original Ad Optimized Ad Ad Cumulative Performance Hispanic A18+

35 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 35 OPTIMIZE BY REALLOCATING BUDGET TO TOP PERFORMING CREATIVES Source: Blinded Nielsen Online Brand Effect case US based example Increase in Brand Lift (CPG Example) 56% better Original 23% 34% Optimized Creative Units Exposure Frequency Site Performance 3 Key Opportunities for Improvement

36 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 36 DETERMINE WHEN TO SHIFT :30’S TO :15’S TO IMPROVE IMPACT Index 100 0:15 vs. 0:30 Comparative Performance (BETV Masked Example #5) Index 50

37 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 37 VIEWERS ATTENTIVENESS TO TV PROGRAMS IS KEY TO UNDERSTANDING AD PERFORMANCE What did Jack ask Liz to do before telling her he was giving the keynote address at a corporate retreat? Choose between two pictures of himself Write out talking points for him to include Help him decide which suit he should wear Find an appropriate date for him to bring Correct Program Questions Total Program Questions PROGRAM ENGAGEMENT SCORE =

38 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 38 SHIFTING TV SPENDING TO HIGHER ENGAGEMENT SHOWS CAN DRIVE HIGHER AD RECALL Correlation =.81

39 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 39 IMPROVE AD BREAKTHROUGH BY SHIFTING SPEND TO HIGHER PERFORMING GENRES Brand X Ad Breakthrough by Program Genre US based example

40 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 40 IMPROVE AD BREAKTHROUGH BY SHIFTING SPEND TO HIGHER PERFORMING GENRES Brand X Ad Breakthrough by Program Genre US based example

41 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 41 CAP EXPOSURE AT OPTIMAL FREQUENCY IN-FLIGHT AND EXTEND OPTIMAL REACH Based on a US example Campaign Frequency Opportunity for improvement Cap frequency to 1 exposure Reallocate impressions

42 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 42 UNDERSTAND IMPACT OF CROSS-PLATFORM EXPOSURE TO OPTIMIZE CROSS-PLATFORM SPEND

43 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 43 REAL-TIME OPTIMIZATION PRESENTS SIGNIFICANT OPPORTUNITY TO IMPROVE Illustrative TIME BRAND LIFT Illustrative Creative rotation Exposure optimization Audience delivery site optimization Brand lift site optimization No real-time optimization

44 KEY TAKE-AWAYS In-market ad performance is driven by more than creative In-flight optimization can dramatically improve your ad performance

45 A CURE FOR A CRONIC ISSUE The environment: big shifts - Digital, Fragmentation, Innovation The Pain: how much to spend, how to allocate, how to optimize in real time The Treatment: “3 R” model is a simple, but powerful way to improve ad performance A Cure: Solutions exist today to optimize Reach and Resonance to deliver stronger Reaction

46 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 46 THREE OPPORTUNITIES TO IMPROVE $ Spent Effect Original performance 1) Optimal allocation 2) Buyergraphic planning 3) Real-time optimization Opportunity!

47 Copyright ©2013 The Nielsen Company. Confidential and proprietary. 47 Q & A THANK YOU FOR ATTENDING If you have follow-up questions or want more information, please contact your Nielsen Professional Services rep or Darren Ellis Phone: (415) X If you have any questions for your presenter

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