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UPCOMING WEBINARS. Boomers: Marketing's Most Valuable Generation– APRIL 4 TH. IMPROVING AD PERFORMANCE WITH THE 3Rs: . Optimizing Reach and Resonance to Heighten Reaction. Randall Beard Global Head, Advertiser Solutions, Nielsen #3Rs. TODAY’S PRESENTER. RANDALL BEARD
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UPCOMING WEBINARS Boomers: Marketing's Most Valuable Generation– APRIL 4TH
IMPROVING AD PERFORMANCE WITH THE 3Rs: Optimizing Reach and Resonance to Heighten Reaction Randall Beard Global Head, Advertiser Solutions, Nielsen #3Rs
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.
IMPROVING AD PERFORMANCE WITH THE 3Rs: Optimizing Reach and Resonance to Heighten Reaction Randall Beard Global Head, Advertiser Solutions, Nielsen #3Rs
OUR CONVERSATION The Advertising Environment: big shifts The Pain: you’re challenges trying toimprove advertising effectiveness The Treatment: “3 R” model - simple, but powerfulway to improvead performance A Cure: solutions to optimize Reach andResonanceto earn the bestReaction 4 1 2 3
POLL #1 In WHICH AREA DO YOU WORK? Brand Research Media Other
Nielsen measures what people watch & buy… Consumer Purchase Audiences & Advertising
Rise of Digital Online Mobile DVR VOD TV Tablet • Big data • Big Data • Consumer Engagement • Granularity
Fragmentation • Complexity • Reach Planning • Cross-Platform Effectiveness TV MainNetworks Broadcast andSatellite Cable Over-The-Top MobileApps Tablet
Prediction modeling • eGRP’s • Common metrics • In-flight optimization Innovation Advanced MixModelling Buyer ResponseBased Advertising Digital Audience Measurement Real-timeMeasures
Clients are TELLING US their pain points: • How much should I spend? • How do I allocate my budget? • How do I optimize in real-time?
Poll #2 WHICH IS YOUR BIGGEST PAIN-POINT? How much should I spend? How do I allocate my budget? How do I optimize in real-time?
Ingredients to increase your advertising ROI REACH X RESONANCE = REACTION Influence their opinion • Reach the right people Impact their behavior Did my campaign deliver the desired brand impact? Did my intended audience see my campaign? Did my campaign deliver the desired consumer response? REAL – TIME
Investing to help you improve advertising ROI Acquisitions Joint Venture Alliances
We can help optimize advertising ROI now Advertising Goal Solution Nielsen Catalina Solutions, Nielsen Campaign Ratings Reach (Audience and Viewability) Nielsen Brand Effect Resonance Nielsen Catalina Solutions, Marketing Mix Models Reaction (Sales)
KEY TAKE-AWAYS • Media is rapidly evolving & fragmenting • Innovative solutions can dramatically improve your advertising & media plans • Optimize Reach & Resonance for better Reaction • Real-time optimization is a big opportunity
Measure sales lift through Marketing Mix Models Measure incremental sales due to each tactic Measure effectiveness and efficiency of spend Incremental sales Marginal ROI US based illustrative example
Reallocate to achieve optimal media mix Original allocation Optimal allocation TV TV Online Online Sales Response Sales Response $ Spent $ Spent $1.17 ROI $1.43 ROI US based Illustrative example
Use MMM simulation to determinehow much to spend & How to allocate Historical Item Input Output $51M $0.1M $0.9M $8M $60M $42M $2M $0.7M $15.3M $60M Total Trade Total Online Total Print Total TV Total Marketing Budget $60M ~$1.5M profit increasewith same marketing budget Simulate Item Historical Forecasted 64M $242M $102.3M 65M $245M $103.8M Units/Volume Revenue Profit US based illustrative example
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
Single Source data enables us to isolate the impact of advertising Buy Data Catalina Frequent Shopper Card Data Nielsen HomescanData Watch Data Nielsen Media Data TV, Digital, Print, Mobile Partner Data Single Source HH’s
Identify the most responsive consumers to increase sales lift from your spending 1 3 Identify demo campaign (baseline) sales lift Identify where they can be reached + execute +17% Demo Rating Buyer Rating Demo Rating Buyer Rating Demo Rating Buyer Rating Network A Network B Network C 4 2 Measure buyergraphic campaign sales lift Identify most responsive consumer segment +33% % Campaign Sales Response % Campaign Sales Response % Exposures % Exposures % Pop % Pop Consumer Segment 2 Consumer Segment 1 US based example
Digital audience delivery has been difficult to measure Other measurement today Online measurement today • Above the Fold 20% 0.015% • Click Through Rates • Page Views • Server Log Counts 14,561 178,509 Demo: Female 18-22 Demo: Female 18-22 • Still left asking • “Who saw my ad?”
Identify best and worst sites for audience delivery in-flight 68% Off-Target 32% On-Target Delivery by Site On-Target Delivery by Site US based example US based example
Improve audience delivery in-flight by focusing on better placements and high performing sites Daily On-Target Delivery – Beverage company 41%on target 16%on target Daily Online Campaign Impressions US based example
Digital audience delivery is an issue across demo groups % On-Target vs. % of Population The narroweryour audience,the bigger theopportunity 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
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
Measuring resonance in flight is key to improving ad performance Whowas being advertised? Whyshould I buy the product? Did I like the ad? Has intent to purchase changed? Whathappened in the ad? General Recall (Breakthrough) Intent to Purchase Brand Recall Message Recall Likeability
Driving higher resonance scores Will deliver higher sales Scatter Plot: Creative-level TV Ad Performance: Brand Effect TV General Recall Index versus Mix Modeled Incremental Volume per GRP Index CPG Client X MMM/BETV Cross-Validation Strong BETV Ad Average Ad Weak BETV Ad Average Ad . . . . Weak Mix Model Ad . . . . . . . . Strong Mix Model Ad . . . .
Identifying in-market ad performance drivers enables clients to optimize in flight • Program Factors • Placement Factors • Media Weight • Cross-Platform Synergy • IN-MARKET AD PERFORMANCE • Creative Factors • Competitive Advertising
Improve breakthrough and branding results with in-flight creative edits Original Ad Optimized Ad Ad Cumulative Performance Hispanic A18+ US based example, Nielsen TV Brand Effect, 5/1/11 – 7/31/11, Hispanic A18+
Optimize by reallocating budget to top performing creatives Increase in Brand Lift (CPG Example) 3 Key Opportunities for Improvement 34% 56% better 23% Creative Units Exposure Frequency Site Performance Original Optimized Source: Blinded Nielsen Online Brand Effect case US based example
Determine when to shift :30’s to :15’s to improve impact • 0:15 vs. 0:30 Comparative Performance • (BETV Masked Example #5) Index 100 Index 50
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 PROGRAM ENGAGEMENT SCORE = Total Program Questions Correct Program Questions viewers attentiveness to tv programs is key to understanding Ad performance
Shifting TV spending to higher engagement shows can drive higher ad recall Correlation = .81
Improve ad breakthrough by shiftingspend to higher performing genres Brand X Ad Breakthrough by Program Genre US based example
Improve ad breakthrough by shiftingspend to higher performing genres Brand X Ad Breakthrough by Program Genre US based example
Cap exposure at optimal frequencyin-flight and extend optimal reach Campaign Frequency Opportunity for improvement Cap frequency to 1 exposure Reallocate impressions Based on a US example
Understand impact of cross-platform exposure to optimize cross-platform spend
Real-time optimization presents significant opportunity to improve Exposure optimization Brand lift site optimization BRAND LIFT Audience delivery site optimization Creative rotation No real-time optimization TIME Illustrative Illustrative
KEY TAKE-AWAYS • In-market ad performance is driven by more than creative • In-flight optimization can dramatically improve your ad performance
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 powerfulway to improvead performance A Cure: Solutionsexist today to optimize Reach andResonanceto deliver strongerReaction 1 2 4 3
Three opportunities to improve 3) Real-time optimization 2) Buyergraphic planning Opportunity! Effect 1) Optimal allocation Original performance $ Spent
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) 362-8498 X209 Email: Darren.Ellis@Nielsen.com • If you have any questions for your presenter email Randall.Beard@Nielsen.com