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©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics 1 Advertising Measurement A Framework for Evaluating Impact & Results.

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Presentation on theme: "©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics 1 Advertising Measurement A Framework for Evaluating Impact & Results."— Presentation transcript:

1 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics 1 Advertising Measurement A Framework for Evaluating Impact & Results

2 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Agenda  Context  Considerations For Establishing Objectives & Goals  Capturing Information Systematically  Communicating Insights & Learning  A Frame Of Reference  Appendix

3 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Executive Summary Our measurement approach must readily enable business decisions.  Comparability is essential for evaluating alternatives  Throughout campaign  Across vehicles  By segment  By product  We will need to establish & capture common “Advergraphics” in order to evaluate relative business results  Apples to apples comparisons  Most of the key questions posed by Marketing Leadership require rigorous attribution capabilities  While some metrics will be common and/or we will have the ability to aggregate/disaggregate, others will be unique to a specific vehicle. Some of the metrics will also roll-up and down between advertising and the “Engagement Cycle” dashboard.  Advertising is relatively continuous & so too should be the metrics  On-going sampling or tracking versus static periodic reads

4 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Marketing Dashboards Best practices of successful marketing dashboards:  Tie measures to strategy – aggregated & disaggregated.  Finance  Customer relationships  Brand health  Internal efficiency  Focus on small set of metrics  Organizational focus  Ensure stakeholder buy-in  People who’s compensation and performance evaluation will be impacted  Metric owners  Finance  Tie to decision making process  Design dashboard to feed the decision-making process  Frame #’s within a qualitative context

5 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Marketing Measurement Today In general, companies should spend between 5-10% of their total marketing budget on measurement. 1 1 Source: Boston Consulting Group & Millward Brown 2 Source: Marketing Leadership Council Measurement Relative Sophistication % of US Companies 2 LoHigh ROI Questions Insight Gap Today’s Capabilities

6 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Advertising Response Curves By Product Financial Services has one of the most challenging consumer response curves 1  The complexity of the decision-making process, financial magnitude & the extraordinary influence of external factors are certainly some of the many contributors to this. Source: Millward Brown Trial Rate % Consumer Awareness Trial Rate % Consumer Awareness Trial Rate Financial ServicesPersonal CareImpulse Products % Consumer Awareness

7 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Response Curves By Vehicle The same weight produces different patterns in awareness build and decay TV GRPs TV Magazine Magazine GRPs % Awareness Time Source: Millward Brown

8 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Response Curves By Type Within Vehicle Readership accumulation data shows that only about half the eventual audience is achieved in the first week % Audience Accumulated By Week Through 1st Four Weeks Source: MRI, Nielsen, Simmons, Telmar

9 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Advertising Effectiveness Framework Clients are spending a significant amount of money on advertising and needs measurement insights in order to optimize the impact of these expenditures.  The Marketing Leadership Team has a need and desire to begin evaluating advertising effectiveness. 1.Establishing Clear Objectives & Goals 2. Capturing Information Systematically 3. Communicating Insights & Learning Key Question: How Might We Think About Evaluating Advertising?

10 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Advertising Objectives & Goals There are many considerations which need to be taken into account when establishing objectives & goals for an individual advertisement and they may vary based upon the strategic intent of each campaign.  Specify which part of the customer engagement cycle the advertisement is striving to influence  Establish brand objectives (if any) as well as setting specific product objectives  Create/reinforce or change  Perception or behavior  Select a specific target audience  Prospect or customer  Emerging, Engaged, Established, High Net Worth, Active Trader  Understand the context of the campaign as well as the marketplace  Integrated stand alone  Competitive activity  Leading economic indicators & stock market performance  Create the learning plan  Rigorous test design  Data requirements  Analytic framework

11 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Vehicle Impact Varies Across Engagement Cycle As the strategy shifts from expansion towards acquisition, the marketing measurement and infrastructure must evolve. Objectives Vehicle ExpansionInvestment Awareness ConsiderationInquiry Customer Engagement Cycle BreakthroughRelevanceDifferentiate Inform ActivateEngage TV 4 Effective Reach 3 Delivers rich imagery & personality 2 Product features/benefit 1 Reinforces brand image 0 No significant role Radio 4 Augments Reach & Frequency 3 Reinforces key messages 1 Product features/ benefit 1 Reinforces brand image 0 No significant role Print 2 More Targeted reach 3 Readily enables comparisons 4 Detailed explanation 1 Offer inducement Reinforces brand image 0 No significant role Internet 1 Targeted but ext. limited reach 2 Rich info/exp Portal proliferation 4 Extremely detailed Self directed Personalized 4 Enabling tool Immediacy Personalized 3 Ongoing source of value Loyalty mktg vehicle Penetrate enhanced needs set Direct Mail 1 Targeted Reach 2 High level comparisons 4 Highly targeted message 4 Offer inducement Call to action 1 Penetrate enhanced needs set Call Center 0 No significant role 1 Prospecting 2 Detailed experience Product features/benefit 3 Personalized offer Real time dialing 4 Customer experience Sales Force 1 Prospecting 2 Enhanced credibility 4 Can overcome specific barriers Real-time dialing 3 Share of wallet Depth of knowledge 3 Rich customer exp. Relationship may drive loyalty Event/ Sponsorship 4 Effective reach Positive Association (Halo) 1 Can deliver some imagery & key message 1 Deliver/sample experience 1 Reinforces brand image 0 No significant role

12 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics End-to-End Measurement Advertising metrics will need to span the “Engagement Cycle” and serve as inputs to modeling. TIME Exposure Perception Message Immediate Relevance Credibility Invest Experience Interest Status Salience Use/Interaction Memory Enhancement Brand Interaction Advertising Cycle Metrics An additional challenge is accounting for the “cumulative” effect of advertising as well as “latency” – Ad impressions accumulate to form brand equity. As relevance increases so does the time horizon for which the advertising has an impact. Enhancement is the interaction between experience & expectations where associations are elevated beyond purely functional attributes to beliefs bonding.

13 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Capturing Information A “Cradle To Grave” approach is required and the measurement metrics and methodology need to be consistent throughout Advertisement DevelopmentExecutionEvaluation Intercept interviews – Branch – Call center – Web Site Standardized questions – Communication clarity – Relevance – Appropriateness – Likelihood of action Tracking – Enjoyment Business results Return on marketing investment* (ROMI) – CPI – CPA – Etc. Brand imagery & equity Comparison to objectives Media execution Ad strategy & theme – “What” Early in creative process Qualitative & Quantitative May be iterative; pre & post production Standardized questions – “How” – Main message – Persuasiveness – Likes/dislikes Clear action standards developed in advance Precisely specified target market Evaluating copy & vehicles (integrated campaign) TIGHT LINKAGE Awareness Index Persuasion Imagery Media Plan Recall Message Retention *Caution: Using ROI as a key performance metric for marketing is dangerous because: 1)It gives excessive importance to the “I” 2)Is easier to achieve by reducing costs than increasing revenue 3)Leads to lower marketing spending and sub-optimal, relative to goals, performance Source: Marketing Science Institute, “The Long & Short View of Marketing Metrics”, Tim Ambler

14 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Integrated Advertising Measurement Holistic advertising measurement is an on-going cycle of testing & learning which requires considerable cross-team collaboration. Brand Equity Response Modeling Performance Measurement In-Market Monitoring Communicatio n Strategy Communicatio n Assessment Brand Positioning Qualitative & Quantitative Research Customer Segmentation Concept Testing Execution Insights Pre-Test Copy/Executio n Tracking Measurement Objectives Project Point of Entry Customer Data Mart MRD

15 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Advergraphics To enable robust analytics, companies must capture common “AdverGraphics” across all of its advertising – A process challenge  “AdverGraphics” -- Demographic type characteristics which describe in detail the nature of the ad itself AND all individual placements Advertisement ? Show name/program ? Media type: network, spot, cable, etc. ? Position within commercial break: first, last, other ? Daypart ? Audience: audited impressions & demographics ? Audited GRP’s ? Run date(s) ? Cost of airing  Network TV; Ad position & Audited Audience MEETING WITH ARNOLD TO REVIEW THEIR DONOVAN SYSTEM - Much of his type of data captured there Network TV has much more robust data capture than other broadcast vehicles  Name Publication type Newspaper: financial, national, regional Magazine; business, lifestyle, etc. Frequency; daily, weekly, monthly, quarterly Publications Format; size, color/B&W ? Audited circulation ? Audited GRP’s ? Publication demographics  Location within publication (timing varies)  Drop date  Cost of insertion  Size – inches & % of page – Print  Color or B&W – Print Lenth of ad -- Broadcast Proportion brand: product How many products Which products ? Message category Proof points ? Call to action: y/n, desired response channel(s) & #s/URLs Pre-test scores ? Target audience; prop/cust., EM/EN/ES/AT/HNW; SD/V/D Planning doc Target engagement cycle stage Behavioral objective Strategic intent  Creative name, Oasis #  Development cost ? Incentive or promotion: y/n & specific offer  Integrated campaign: y/n & other vehicles Broadcast PlacementPrint Placement Need to evaluate the option of incorporating syndicated data such as Starch/Samms, MRI/Monroe Mendleson, Neilsen, Arbitron & potentially others  Currently available Planned or readily incorporated ? Likely, pending detailed MRD questionnaire review

16 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Advergraphics Internet AdverGraphics will vary somewhat based upon which Internet vehicles are used  In addition to the standard advertisement AdverGraphics outlined on the previous page, for Internet advertising we will also want to capture the degree of motion and the level of graphic delivery (flash & HTML) Paid Search Engine Inclusion Subject line Number of recipients Response rate HTML, Plain Text or both Size Flash or other motion; y/n Triggers for serving Number of banner ads served Proportion of click throughs Order in which Co is served up Page location where it is placed Ad or link Size Raw # of times served up Proportion of click throughs EmailBanner

17 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Attribution Attribution will manifest itself differently across the continuum of measurement options, however planned & systemic is what will be required to answer the insightful questions being asked by Marketing Leadership Activity Measurement Activity & Analyses Measurement Planned & Systemic Measurement Institute source coding on all marcom Can answer all of “What” & some of “Why” Precise understanding of market drivers A frame of reference for interpreting relative performance Can’t generalize learning Ignores the cumulative effect of advertising & attributes impact entirely to the most recent marketing event Limited understanding of interaction between marketing vehicles Institute source coding on all marcom Establish business rules for attribution across touchpoints Can answer all of the IMM questions; “What, Why & How” Can generalize & institutionalize learnings Able to quantify interactions between vehicles Remains dependent upon rigorous test design Must capture detailed “AdverGraphics” Scale the Call Center pilot Can answer some of the “What” happened Develop hypotheses about “Why” Ease of implementation Short lead time to implementation Can’t generalize learnings Based entirely on consumer recall which has been empirically proven as unreliable Assumes same response profile across channels Characteristics Disadvantages Advantages

18 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Insight By Vehicle A Combination of Media Generally Has A Greater Impact Than Any Individual Media Type. TVRadioPrint Impact per GRP tends to be lower than TV Best if enjoyable and well branded Benefits greatly from synergies w/TV and can extend TV campaign High level of targeting Print w/TV more likely to result in active consideration than TV alone Active consumption; fast wear out of individual execution Works best where reader is interested in category Otherwise need strong creative hook to overcome filters Messages perceived as more credible & less pushy Interest & prestige can be heightened by context InternetPublic RelationsEvent/Sponsorship Active goal-seeking medium can help ads be very effective Recall on par w/TV 1 Can be effective even without click-through ‘Rich Media’ #2 x’s more effective than banners High level of targeting & direct response Possible irritation Source: Millward Brown, Real-Time Marketplace Feedback Creative needs to be brand linked Awareness responds to GRPs immediately Position w/in commercial break Flighting best when dispersed across network/cable/spot & daypart Need 100 GRPs/wk to breakthrough Synergistic w/other media particularly when there’s a schedule overlap Independent source creates greater credibility Works very effectively as a multiplier for other messages Tight linkage between event message and brand Can be effectively leveraged when part of brand multimedia campaign TV sponsorship can be as powerful as TV advertising

19 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Differences Between Media Advertising ExposurePassiveActive/selective Product Category EffectLittleLarge Attention-Getting WearoutLittleRapid Need For Creative “Hook”LessHigh Recall of Visual ElementsWell rememberedLess well remembered Mental ProcessingLittleHigh degree TV Magazines How Stored In MemoryST as AdLT as Fact Source: Millward Brown

20 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Brand Health Metrics Consumer Engagement Cycle  Top-of-mind awareness Presence Aided awareness  Familiarity Competitive comparison  Share of voice Effective share of voice  Hedonic evaluation Understand positioning Recall key copy points  Perceived rational attributes & benefits  Functional  Process  Consideration ? Relevance  Cognitive responses & judgments Factual recall  Perceived emotional attributes & benefits  Purchase intent Brand Portfolio Impact –Family –Category  Current usage  Usage trend  Cross-utilization  Frequency of consumer interaction  Brand strength  Product performance  Attributes  Advantages  Deficits  Customer service satisfaction Customer loyalty  Overall –Key proposition elements Likelihood of switching Next month With incentive ? Affinity ? Relationship ? Bonded  Brand Advocacy Favorable Attitudes Objective Brand Adv Cognitive Responses & Consumer Judgments “Brand Image & Equity”* Factual Data & Recall “Brand Salience/Relevance” Measurement Considerations: Product Adv Information & Action *Note: Brand equity has a strong linear relationship for the next 2 years with Market Share (R 2 =5) & EBITDA (R 2 =.7)  Currently available Planned or readily incorporated ? Likely, pending detailed MRD questionnaire review ExpansionInvestmentConsiderationInquiryAwareness Source: Customer Ergonomics Analyses & MSI; “The Long & Short View of Marketing Metrics”, Tim Ambler

21 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Individual Advertisement Metrics Recall key elements Content playback Brand linkage Communication clarity Ease of understanding Awareness index – Cut Through – Branded memorability – Enjoyment – Involvement Effective GRPs/TRPs Effective “Share of Voice” Relative perception of the amt. of advertising Interest Total Communication Hedonic ? Relevance New news Difference/ uniqueness  Believability  Trust/ confidence  Reasonable fees/value Corp. values & ethics Persuasion  Unaided & aided consideration Perceived Advantage  Satisfaction w/customer service Likelihood to take action; call, click, or visit  Intention to invest Previous investment experience Knowledgeable Sales Reps Perceived advantage “Relative” wealth Brand affinity Number of vehicles & channels  Frequency of interaction Perception of relationship Confidence & Security −External Factors −Personal −Fidelity  Currently available Planned or readily incorporated ? Likely, pending detailed MRD questionnaire review Consumer Engagement Cycle ExpansionInvestmentConsiderationInquiryAwareness

22 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Unique Internet & Site Visit Metrics Page & banner impressions  Unique visitors – Cookies 1 machine, logins for multiple pc’s  Total visitors  Pgs viewed/visit Effective GRP’s  Advertising & promotion click through  Visitor origin - Search engine - Paid Inclusion - Referral site F.S. sites visited  Time spent/ page - calculated ? Visitors by ISP ? Browser used - @ IP address level Downloaded pages Tool usage  Site registration – bare minimum  Repeat visitors  Topics/categ visited/session or /visitor  Page exited from Proportion inquiries via Web  Trades  Value of trade Opt-ins  Site registration – In depth & complete  Visit frequency  Personalized Home Page  Alerts set up Elapsed time between visits  Time per visit Pages viewed per visit Multi-channel customers Many of the MRD metrics exclude Internet customers. This research will need to be supplemented or revised to reflect these customers too. Need to further explore syndicated metrics as Financial Services frame of reference; ComScore, Nielsen Net Ratings, Jupiter Media Matrix All metrics #/%/$ Consumer Engagement Cycle ExpansionInvestmentConsiderationInquiryAwareness  Currently available Planned or readily incorporated ? Likely, pending detailed MRD questionnaire review

23 ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics Communicating Insights Communicating Insights Drives Organization Learning  Sequencing analytics  Quick read vs. depth  Standardized  Deep dive  Establishing a frame of reference for objective interpretation  Normative database  Outside your industry  Creating institutional knowledge  Best practices


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