getting advertising right!insightinnovation.org/wp-content/uploads/2017/10/attribution/dave.pdf ·...

GETTING ADVERTISING RIGHT!

THE KEYS TO DRIVING SALES

David Poltrack, Chief Research Officer, CBS Corporation President, CBS Vision

Leslie Wood, Ph.D., Chief Research Officer, NCS

Attribution Accelerator Conference

October 12, 2017

Copyright © 2017 Nielsen Catalina Solutions • Confidential & Proprietary 2

Do Advertising Basics Still Matter?

• Which of the advertising principles are still true?

– The key elements of advertising effectiveness:

• Reach, Targeting, Recency, Creative, Context

• CBS built a framework around these--- are they still relevant?

– How:

• Key metric: Sales

• All studies – no cherry picking

• Worked to remove bias

• Sales Effect methodology


Connecting the Media People Consume

With the Products They Buy

Exposure Data

• NCS Publisher Data

(Big Data)

• Nielsen Media Data

(Currency Data)

TV, Digital, Mobile, Print, Radio

Anonymous

Single Source Households

Buy Data

• Catalina Frequent

Shopper Card Data

• Nielsen Homescan

All-Outlet Data


Meet the Studies

Meta-Study #1• Objective: to examine the relative contribution that a campaign’s creative and media

factors might have on sales.

• Nearly 500 CPG campaigns that ran in 2016 and Q1 of 2017 on all major media platforms:

linear and addressable television, online digital and video, mobile, magazines and radio.

Meta-Study #2• Objective: to understand the reach of TV and digital campaigns, and more importantly to

measure the unduplicated reach of cross-media campaigns.

• Nielsen examined 863 campaigns that ran on both linear TV and digital platforms and

were tagged by Nielsen Total Audience Ratings (TAR) and Nielsen Digital Ad Ratings

(DAR). These included ALL cross- media campaigns that ran in Q4, 2016 and Q1, 2017,

regardless of vertical or television network. While the intended targets for these

campaigns varied, the reach curve for these analyses are shown for people 13+.


Five Keys Elements of Advertising Effectiveness


Percent Sales Contribution by Advertising Element

Source: Nielsen Catalina Solutions © 2017; Period 2016-Q1 2017

Nearly 500 campaigns across all media platforms.

Creative

47%

Brand

15%

Reach

22%

Recency

5%

Targeting

9%

Context

2%


Balance of Creative vs. Media – Then & Now

Creative

65%

"Other"

20%

Media

15%

Sales Contribution

Creative

49%

Brand

15%

Media

36%

Sales Contribution

2006 Project Apollo Now

Creative

Media

“Other”

Creative

Media

Brand

Source: Nielsen Catalina Solutions © 2017


Creative – How Productive at Driving SalesAll TV vs. All Digital

15%

12%

56%

37%

30%

50%

Digital

(Video

Display

& Mobile)

TV

(Linear &

Addressable)

Sales Contribution

Brand Creative Media

Creative: Productivity Metric & Standard Deviation

$0.08-$0.12 +$0.12

$0.08-$0.21 +$0.21



Comparable creative productivity – much higher highs and lower lows for digital• More variability translates to higher contribution from creative for digital• Media has more levers to pull – particularly for TV


TV – by Creative Performance

3%

10%

30%

80%

38%

6%

18%

53%

63%

Strong

Avg

Weak

Sales Contribution


$0.01

$0.19

$0.04

Creative

Productivity Metric




Digital – by Creative Performance*

6%

14%

14%

89%

60%

16%

5%

26%

71%

Strong

Avg

Weak

Sales Contribution


$0.01

$0.24

$0.04

Creative

Productivity Metric

* Display, Video & Mobile yielded nearly identical results




Reach – TV & Digital Reach Curve for

Cross Media Campaigns

-

20

40

60

80

100

0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00

Re

ac

h %

ImpressionsMillions

Digital Reach + TV Reach Curve –

Cross Media Campaigns

TV

Campaign

Reach

Digital

Campaign

Reach

Nielsen: 863 TV & digital cross media campaigns from Q4 2016 – Q1 2017 on P13+; No advertiser verticals excluded.


Understanding Duplication is Critical!

Combined reach is less than random – for all campaigns except <50% reach


All Media:

On-Buyer Target vs. Off-Buyer Target

On-Buyer Target – targeted to correlate delivery to brand and campaign buyers• Targeting contributes much more when targeted to buyers


Recency – Thursday/Friday Prime Drives

Weekend Sales

353

232 286

Thursday Prime Friday Prime Thu/Fri Prime

Sales Index vs. Any Other Programming

Note: Advertising lift measured on a 3-day rolling exposure window. Thursday/Friday Prime does not include: News, Sports, Children’s

or Spanish Language.

Source: Nielsen Catalina Solutions © 2017


Recency

• Depends on a decay curve

• Adstock standard in MMM


Back to Basics

• Basics really do matter

– Creative

• Still the most important factor for driving sales, though media is playing a larger role

– Reach critical

• Only consumers exposed to advertising can respond– Targeting – focus on buyers

• Buyers respond more; target large enough to deliver reach – also drive penetration

– Recency

• Value of exposure decays across time

Appendix


Key Metric: Sales Productivity

NCS measures the total incremental sales lifts for the households exposed to the advertising, then divides it over the

total number of exposed households’ category store trips. We know that the sales are incremental because they are

compared to a control group of nearly identical households that were not exposed to

the advertising.

This sales productivity metric used in the analysis removes the cost of the media and measures the sales responsiveness

without factoring in the media economics, targeting, reach, seasonality and flighting.

INCREMENTAL SALES

+14%

Unexposed

HHs

Exposed

HHs

Exposed

Purchase

Occasions

Unexposed

Purchase

Occasions

$28 Days Prior

EXPOSED CATEGORY TRIPS PRODUCTIVITY METRIC

getting advertising right!insightinnovation.org/wp-content/uploads/2017/10/attribution/dave.pdf ·...

Documents