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ADVANCES IN
ADVERTISING
EFFECTIVENESS &
EFFICIENCY
Andrew Felbert
Commercial Director, Online
Emerging Markets, EMEA
Sometime ago…




                “Half the money I spend on
                advertising is wasted; the
                trouble is I don’t know
                which half”



                 John Wanamaker
                 US Department Store
                 Merchant
                 (1838-1922)
The Industry is open to change

                                          “We have endless data. We need
                                          help to find what information to
                                          look at, what is important and what
                                          is just noise”
 “It’s incredibly difficult to link
 performance to an actual ad to an
 actual behavior. We would invest
 more in media if we saw a direct
 pay off”
                                          “Media goals cannot be
                                          determined equally because there
                                          are not common metrics in TV,
                                          online, print. It’s imperative to
 “Advertising spend is like bowling:      understand the relative
 after rolling the ball, you have to      effectiveness across platforms”
 wait for the ball to go all the way to
 the end to learn if you striked. You
 are hand tied and can’t make any
 changes mid course and just wait”
                                          “There are too many players with
                                          different objectives. Creative or
                                          media agencies, traditional or
                                          digital agencies; coordination must
                                          happen”
Where do We Start?


    1   Produce metrics that matter


    2   Performance data that is fast, comprehensive and granular


    3   Provide comparability across platforms


   4    Improve ROI through campaign optimization


   5    Ultimately, become a predictive virtuous cycle
Advertising Effectiveness Simplified
Effectiveness principles are universal




        Reach                     Resonance                Reaction


           R                             R                    R

       Reach the right              Influence their          Impact their
          people                        opinion                behavior




                                                 … So what has changed?
Multiple Methods for Data Integration to Improve The ROI
of Your Media Investments are available today


       PANEL              DATA
                                                  SEGMENTATION
       MATCH             FUSION



  HI            Cost/Data Availability Spectrum              LO

       PANELS           3rd PARTY                   CENSUS
Objective: Optimize all the steps in
the media planning cycle




          Media                   Media                    Post Buy
        Planning/               Optimization             Analysis/ROI
        Allocation



           Plan                      Buy                     Measure
   Determine the optimal      Identify the best TV   Measure the GRP delivery
   share of budget to TV,     programs, magazine     of your media schedule,
   internet, magazines and    and websites in        and determine what
   other media, in terms of   reaching the core      programs delivered well
   maximizing exposure                               and which ones delivered
                              consumers
   against core consumers                            poorly
Optimize audience delivery by focusing on better
placements and high performing sites
                                                                            BEVERAGE
                                    Daily On-Target Delivery
                                         (OCR Masked Example)

                                                                            41%
      Off	
  Target	
         On	
  Target	
  
                                                                          on target
    Off	
  Target	
       On Target




                                                        	
  16%	
  	
  
                                            	
  16%	
  	
  
                                          on	
  target	
   target	
  
                                                            on	
  


                            Daily Online Campaign Impressions
Optimize the effectiveness of the campaign by
reallocating budget to top performing creatives

                    Brand Lift on Awareness
                         (CPG Example)




                      56% better
            23.2                                        34.4


       Original                                            Optimized



                                              Source: Blinded Nielsen Online Campaign Ratings case
Determine actions to increase sales impact
Purchases after Campaign


                            35%
                                                    •  BG 5
  Distribution of Brand X




                            30%
                                                                                                          •  Increase media
                            25%                  BG 4                                                        delivery to most
                                                                                                             responsive
                            20%
                                                                                                             Groups
                                          •  BG 3
                            15%                                               •  BG 8                     •  Tailor Creative
                                                                                                             Messages to
                            10%
                                                                                                             High-Volume/Low
                            5%                                                                               Responsive
                                   •  BG 1
                                                                    •  BG 7
                                                                                                             Groups
                                       •  BG 2                                •  BG 9
                            0%                            •  BG 6                                   35%
                                  0%         5%               10%       15%   20%       25%   30%

                                                 Distribution of Brand X Ad
                                                         Impressions
Summary… a lot has changed!



         •  3R Framework – simple, actionable, powerful


         •  Real-time digital optimization is a big opportunity


         •  Best results achieved by optimizing all key aspects of
            campaign


         •  Measure Reaction via offline sales impact

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The efficiency of online advertising (Andrew Felbert - Nielsen)

  • 1. ADVANCES IN ADVERTISING EFFECTIVENESS & EFFICIENCY Andrew Felbert Commercial Director, Online Emerging Markets, EMEA
  • 2. Sometime ago… “Half the money I spend on advertising is wasted; the trouble is I don’t know which half” John Wanamaker US Department Store Merchant (1838-1922)
  • 3. The Industry is open to change “We have endless data. We need help to find what information to look at, what is important and what is just noise” “It’s incredibly difficult to link performance to an actual ad to an actual behavior. We would invest more in media if we saw a direct pay off” “Media goals cannot be determined equally because there are not common metrics in TV, online, print. It’s imperative to “Advertising spend is like bowling: understand the relative after rolling the ball, you have to effectiveness across platforms” wait for the ball to go all the way to the end to learn if you striked. You are hand tied and can’t make any changes mid course and just wait” “There are too many players with different objectives. Creative or media agencies, traditional or digital agencies; coordination must happen”
  • 4. Where do We Start? 1 Produce metrics that matter 2 Performance data that is fast, comprehensive and granular 3 Provide comparability across platforms 4 Improve ROI through campaign optimization 5 Ultimately, become a predictive virtuous cycle
  • 5. Advertising Effectiveness Simplified Effectiveness principles are universal Reach Resonance Reaction R R R Reach the right Influence their Impact their people opinion behavior … So what has changed?
  • 6. Multiple Methods for Data Integration to Improve The ROI of Your Media Investments are available today PANEL DATA SEGMENTATION MATCH FUSION HI Cost/Data Availability Spectrum LO PANELS 3rd PARTY CENSUS
  • 7. Objective: Optimize all the steps in the media planning cycle Media Media Post Buy Planning/ Optimization Analysis/ROI Allocation Plan Buy Measure Determine the optimal Identify the best TV Measure the GRP delivery share of budget to TV, programs, magazine of your media schedule, internet, magazines and and websites in and determine what other media, in terms of reaching the core programs delivered well maximizing exposure and which ones delivered consumers against core consumers poorly
  • 8. Optimize audience delivery by focusing on better placements and high performing sites BEVERAGE Daily On-Target Delivery (OCR Masked Example) 41% Off  Target   On  Target   on target Off  Target   On Target  16%      16%     on  target   target   on   Daily Online Campaign Impressions
  • 9. Optimize the effectiveness of the campaign by reallocating budget to top performing creatives Brand Lift on Awareness (CPG Example) 56% better 23.2 34.4 Original Optimized Source: Blinded Nielsen Online Campaign Ratings case
  • 10. Determine actions to increase sales impact Purchases after Campaign 35% •  BG 5 Distribution of Brand X 30% •  Increase media 25% BG 4 delivery to most responsive 20% Groups •  BG 3 15% •  BG 8 •  Tailor Creative Messages to 10% High-Volume/Low 5% Responsive •  BG 1 •  BG 7 Groups •  BG 2 •  BG 9 0% •  BG 6 35% 0% 5% 10% 15% 20% 25% 30% Distribution of Brand X Ad Impressions
  • 11. Summary… a lot has changed! •  3R Framework – simple, actionable, powerful •  Real-time digital optimization is a big opportunity •  Best results achieved by optimizing all key aspects of campaign •  Measure Reaction via offline sales impact