Insight Address: "Cross-Media Marketing Synergies: Spreading Dollars Across Channels"

Cross-Channel Marketing & Measurement

Cross-channel is a media property, service, story or experience distributed across media platforms using a variety of media forms

The landscape has changed

• According to IAB, it took 38 years for Radio to reach 50mm users, 13 years for TV, 10

years for Cable, less than 5 years for Internet and less than 2 years for Internet Video.

• Study by IDC says average American spends half-an-hour w/ magazine a day, 2.7 hours

with TV, and twice that, 5 hours, with Internet.

• comScore says over 84 million people watch Internet video in a day;

average Facebook users spend over 4.5 hours a month on the site.

• YET we spend 21.3% of our Ad budgets on print, 65.8% on TV,

and only 6.4% on Internet. (4.1% among Top 100!)

Just Over 1% of Online Video Time is Spent Watching Ads, Compared to 25% of Television Time

Source: Video Metrix March 2010 Data

All Online Video Television

Even When The Analysis is Limited to Premium Content, TV’s Ad Load is Far Higher

Source: Video Metrix March 2010 Data

TelevisionOnline Long-Form

Premium

6 to 7 Minutes of Advertising Per Hour is Acceptable; 35% More Than is Currently Being Delivered

1 min 2 min 3 min 4 min 5 min 6 min 7 min 8 min 9 min 10 min 11 min 12 min 13 min 14 min 15 min0.0

20.0

40.0

60.0

80.0

100.0

Negligible Minimal Long Enough Too Long

Desired Length of Commercials

Source: ‘The future of original TV Viewing and the new digital consumer’’ survey conducted by comScore in December 2009

0 2,500 5,000 7,500 10,000 12,500 15,0000

102030405060708090

100

67.874.1

85.1 87.9

Cost ($000)

Total reach

Effective Reach (3+ Impressions)

Reach and Effective Reach for a TV campaign as a function of cost

Brands Going For High Audience Reach with TV Only Hit A Plateau

Media Plan GRPs Cost Total Reach Effective Reach

TV Only 1,000 10,000 85.1% 67.8%

TV + Internet Combination

TV (90%) 900 9,000 83.7% 65.8%

Online (10%) 500 1,000 63.8% 44.0%

TV + Online 1,400 10,000 90.2% 83.7%

TV Only vs.90% TV + 10% Online 400 0 5.1% 15.9%

Impact of a 90/10 budget allocation

Adding Internet Builds Reach with Identical Investment

10

Del Monte Digital Vision

Offline

Online

Source: Forrester Research

% Contribution To Sales

Marketing Mix Model Outputs

$$$

Effec

tiven

ess

Where does Digital fit?

Trade

TV

Print

Radio

Marketing Mix Modeling has Limitations

• Digital’s curve hasn’t been seen long enough and spend is not high enough for high degrees of variance to appear

• Moving curve – not all impressions are the same– Eg. How do you measure social?

• Synergistic and ordered effects

How do we measure New World fairly?

Display Advertising’s Early Mistake

Does this one person’s click effectively reflect the branding impact of exposing the other 999 people to

the same ad?

• Traditional Marketing Mix Modeling, alone, is not enough

• Two Methods will work– Marketing Mix Modeling + digital-driver analysis– Integrated panels with “opportunity-to-see” survey

• Digital must fix it’s creative problem

Brand AwarenessTop-of-Mind & Secondary Unaided

Aided

Brand Favorability Perceptions

Attributes

Likelihood to Recommend

Intent to Purchase

30 DaysFuture

Campaign Impact on Brand Effectiveness, Online Behavior and Sales

Attitudes about the BrandOnline Site Visitation and

Trademark Search

Transactions andRetail Purchases

Exposure to advertising in

TV, Online, Print channels

Synergistic and Ordered Effect• From GroupM Search/M80/comScore

study released in October 2009– Searchers involved with branded social

media more likely to search lower in purchase funnel

– Consumers exposed to brand’s social media and paid search 2.8x more likely to search for that brand than those who only saw paid search alone

– 50% CTR increase in paid search when exposed to branded social media

– Among searchers using branded terms in query, CTR increased from 4.5% to 11.8% when searcher was exposed to both branded social media AND paid search

For more information please contact: Cindy Kerber Spellman Director, Corporate Communications T: +1 314 682 2055 E: [email protected]

Search TV Radio Magazine Newspaper

1774

440 302 23662

Search Transactions Driven by Offline Media

Marketing Driven Transactions

Search TV Radio Magazine Newspaper

1550

440 302 23662

15515 16

38

Search Transactions Driven by Offline Media

Marketing Driven Transactions Offline Impact on Search

Example: Impact of Offline Media on Search (Retail)

Multi-stage Modeling spreads credit appropriately.

• Source: Media Management Analytics

Transactions (000’s)

Newspapers

TV Advertising

Out-of-Home

Radio

Magazine

Search

Newspapers

TV Advertising

Out-of-Home

Radio

Magazine

Search

$0.51

$0.52

$1.20

$1.40

Accurate ROI measurement through search reattribution…

• Source: Media Management Analytics

Spend

$46.0 MM

$9.8 MM

$14.6 MM

$0.5 MM

$62.5 MM

$5.0 MM

ROI after reattribution of upstream media effectsExample: Reattributed Search ROI (Retail)

• Traditional Marketing Mix Modeling, alone, is not enough

• Two Methods will work– Marketing Mix Modeling + digital-driver analysis– Integrated panels with “opportunity-to-see” survey

• Digital must fix it’s creative problem

Internet Ad Exposure TV Ad ExposureSurvey for

Opportunityto See Other

Media

Single-Source Panel + Survey

Brand Perceptions: Specific Attributes

Percentage Point Impacts… Online Print TV Online + TV

Online + Print

TV + Print

Online + TV + Print

Developed by doctors -1 pts +10 pts +3 pts +13 pts +4 pts +16 pts +20 pts

Money back guarantee +3 pts +11 pts +8 pts +13 pts +13 pts +18 pts +32 pts

Popular +1 pts +13 pts +11 pts +16 pts +9 pts +23 pts +28 pts

Premium Quality No Lift +5 pts +4 pts +7 pts +4 pts +17 pts +24 pts

Most effective -6 pts +1 pts +2 pts +5 pts +4 pts +11 pts +25 pts

Works quickly No Lift +10 pts +7 pts +12 pts +3 pts +18 pts +32 pts

Is gentle -4 pts +2 pts +7 pts +14 pts +7 pts +24 pts +30 pts

Contains effective ingredients +1 pts +8 pts +7 pts +10 pts +11 pts +22 pts +34 pts

=significantly greater/less than not-exposed at the 95% confidence level

=significantly greater/less than not-exposed at the 90% confidence level

Cross Media and TV + Print impact every brand attribute measure

Source: Cross Media Brand Survey Lift

Early results are very consistent …

TV provides stronger lift and contribution than DigitalDigital provides stronger ROI (driven by lower cost)Part of the problem is the creative

Display advertising early mistake #1: Clutter

Can you imagine?

Clutter Brand advertisers tell stories. They don’t want to compete with other advertisers. This is a better model for display.

Over 50% of the Impact of Advertising is Driven by the Strength of the Creative

% Influence on Market Share ShiftsSource: Source: comScore ARS Global Validation Summary Creative is 4x

More Impactful in

Influencing Sales

Than

Planning Variables

Pre-qualifying Creative Has Been Proven to Drive Better Advertising Results and Lower Upfront Development Costs

Lower testing and production costs• Stronger First-time Success Rates

Volume increases• Ad Scores Go Up

Client A 2006 2007 2008 2009EFFICIENCY

More Ads QualifiedTo Run

53% 55% 60% 65%

EFFECTIVENESSAverage Scores Increased 128 134 143 156

Ads within the food database that have scored similarly to “My Ad Execution" have seen an average +2.0 days of incremental volume with 550 GRPs spent.

Pre-Testing Can Predict In-Store Sales

ARS Persuasion Market Mix Modeling Validation

Est. ARS Persuasion Range Your AdAverage Days of Incremental

Category Volume^

15.0 + +7.3

11.0 to 14.9 +2.9

9.0 to 10.9 +2.2

7.0 to 8.9 My Ad (version 1) +2.0

5.0 to 6.9 My Ad (version 2) +1.4

3.0 to 4.9 +0.9

<3.0 +0.7

Implications:-Traditional MMM alone won’t work, but there are scalable ways

- MMM + digital drivers analysis- Cross-channel panel plus survey

-We have a creative problem … pre-qualify digital like you would TV

Thank You!

•Doug [email protected] @dougchavez

•Erin [email protected] @ comScore