Kill Television and Watch Inquiries Die with IT! How Offline Impacts Online Media

2. Kill Television and Watch Inquiries Die with IT! How Offline Impacts Online Media Greg Gragg Gragg Advertising

3. Introduction • The way we purchase most products and services has changed as well as media expanding the channels we are exposed to for products or services of interest. • We are still exposed to offline ads everyday that influence our decision making process, e.g. TV, Outdoor, radio. • Our theory: people are changing their purchasing habits: researching online the messages and brands they are exposed to offline before making a purchase decision.

4. Recent studies and analysis • Television’s influence over online brand impressions • Television’s influence over paid search • Total influence of offline media over online paid search • Total influence of offline media over online brand impressions

5. Television’s impact • 60-80% increase in searches for brand terms directly caused by TV flights. • 40-60% increase in searches for generic terms directly caused by TV flights. • A well established brand with a high degree of awareness will see a smaller jump in online traffic during a TV flight than a small brand. • It stands to reason that larger budgeted TV ad campaigns will lead to a bigger impression spike than a small one. Source: Efficient Frontier, February 2011, Dr. Siddharth Shah An analysis of online search’s correlation to large TV spends produced the following data:

6. Television impacts online impressions This chart shows online brand impression volume for eight weeks during a TV flight. One can clearly see that the impression trend is very closely tied to the trend in TV spend. Source: Efficient Frontier, February 2011, Dr. Siddharth Shah

7. Halo effects of television on clicks Source: Efficient Frontier, February 2011, Dr. Siddharth Shah This chart shows the 2-week prime spike in CTR but an overall impact of up to 6 weeks associated with a large television effort.

8. Total offline influence • 67% of online users are driven to perform a search based on company name, product or service name, or slogan as a result of an offline message. • 39% of online searchers influenced by offline channels ultimately make a purchase. • Consumers report that magazine/newspaper ads (30%) and word-of-mouth (30%) are most effective in generating purchases. • Most commonly used keywords: company name (44%), product/service name (24%), and slogan (6%). Source: iProspect Offline Channel Influence on Online Search Behavior Study, August 2007. A recent consumer study revealed powerful insight into offline media’s influence on online search and conversions:

9. Offline influence on online search by medium Source: iProspect Offline Channel Influence on Online Search Behavior Study, August 2007

10. Gragg case study 1 : Impact of television • Total lead volume: 56,031 leads • Time frame: June 1, 2011 – October 30, 2011 • Data set: 4 national clients offering varied curriculum in for-profit education Gragg Advertising ran an analysis of lead submission data to determine what impact television had on overall lead flow Details of analysis

11. Gragg case study 1 : objective • What impact does TV have on overall lead flow as well as online lead flow? • Is there a correlation between the number of spots run or time of day of the spots run and the overall lead flow? • Does said lead flow warrant the expense of TV for clients interested in supplementing said lead flow? The objective of this expanding leads research project was to determine the following:

12. Gragg case study 1 : strategy and results • Heavy from Monday through Wednesday or Thursday • Minimal placement on Fridays/weekends • Results • We were able to see that across a three-month period, in tier one and two markets, clients implementing TV into their marketing campaigns have increased lead flow which directly correlates with TV spots ran. This remains true across the day of week as well as the time of day. Our strategy for purchasing TV and spot placement

13. Gragg case study 1 : weekly spots vs web traffic Regression Ratio: 72%

14. Gragg Case study 1 : time of day Regression Ratio: 68%

15. Gragg case study 2 : impact of offline total • Gragg Advertising ran an analysis of lead submission data from all media in order to determine what impact offline media had on overall lead flow • Details of analysis • Total lead volume: 135,710 leads • Time frame: January 1, 2012 – February 21, 2012 • Data set: all clients (various media strategies) • Usage of Unique URLs, dedicated phone lines and website dropdowns as well as sales verification via sales representatives.

16. Gragg case study 2 : key findings • Overall, we found that 35% of all online lead submissions were either directly or indirectly attributed to offline media sources. • As expected, television was the most influential media with print a close second • Interestingly, outdoor media (which included billboards and “alternative” channels like movie theater screens) was more influential than direct mail. • Event-based marketing (open houses, career fairs) had a decent influence on online submissions.

17. Gragg case study 2 : Influence by medium

18. Gragg Case study 3: impact of going dark on television Gragg Advertising ran an analysis of lead submission data to determine what impact going dark on television had on overall lead flow Details of analysis • Data set: First Set is Tier One Market and Second Set is Tier Two Market • Total lead volume: 4,964 leads • Time frame: 9 week period

19. Gragg case study 3 objective The objective of this expanded leads research project was to determine the following: • What impact does TV have on overall lead flow as well as online lead flow? • Does said lead flow warrant the expense of TV for clients interested in supplementing said lead flow?

20. Gragg case study 3 results We were able to see that across a nine week period, in tier one and two markets, clients going dark on TV saw a decrease in overall and online lead flow which directly correlated with the weeks TV did not run.

21. Gragg case study 3tier 1 marketing

22. Gragg case study 3tier 2 marketing

23. Conclusions and takeaways • There is no cure-all. Employing a multi-discipline, integrated strategy is the best way to maximize results in response-driven marketing. • Integrating online tactics with offline messaging is vital as more and more people are driven to search for specific terms and research products online. • Offline promotional or branding campaigns should include strategic, Search Engine Marketing strategies to maximize the impact of your campaign. • The need for easily remembered URLs and memorable keywords in offline media is paramount to creating more branded searches and ensuring proper lead tracking. • To make the system work we must employ effective coordination, planning and modeling (trackable URLs, tracking numbers, run logs, tracking codes on all advertising) as well as productive A/B testing.

24. Yet questions linger • How should the online budget be spent when TV flights are known in advance? • What are the long-term branding effects of an offline campaign and how can they be measured online? • We are continuing our studies and will publish white papers annually on our finding. • Currently we’re very excited about the current outcomes and the relationship between offline and online media.