Auto Aftermarket Retailer ROI Case Study Deck

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<ol><li> 1. AUTO AFTERMARKET ROI CASE STUDY </li><li> 2. An auto aftermarket retailer wanted to assess the sales impact of its radio investment. Nielsen matched the Portable People Meter panel with credit and debit card spending data from the Nielsen Buyer Insights. Purchases from consumers exposed to the radio campaign that ran March-June 2016 were compared to consumer purchases of those who were not exposed. Methodology </li><li> 3. Methodology: connecting credit/debit card purchases directly with Nielsen Portable People meters EXPOSED to the radio campaign UNEXPOSED to the radio campaign Nielsen matched Portable People Meter panel data with credit/debit purchase behavior Nielsen measured the sales impact of the two groups Audience was broken into groups based on Media Monitors ad occurrence Step 1 Unexposed Exposed MATCHED AUDIENCE Step 2 Step 3 Nielsen compared spending from 2016 to the same timeframe the previous year Step 4 CAMPAIGN PERIOD 3/1/16-5/31/16 PRE-PERIOD 3/3/15-6/30/15 POST-PERIOD 6/1/16-6/28/16 </li><li> 4. Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16. Significant return on advertising spend 21 return on advertising spend $ For every $1 spent on radio, the brand saw </li><li> 5. 41% 25% 33%31% 24% 45% Low (1-2) Medium (3-6) Heavy (7+) Brand buyers % of sales lift Campaign frequency: How to read: One-third of consumers exposed heard the campaign seven or more times March-May 2016. These consumers represented 45% of the total sales increase. Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16. The more AM/FM radio you hear, the more you spend </li><li> 6. 3.1% 4.6% Pre-period (March-June 2015) Campaign + post period (March-June 2016) +48% % of those exposed to the radio campaign who shopped at the retailer How to read: The percentage of those who shopped at the retailer grew 48% after exposure to the campaign. Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16. AM/FM radio drove more buyers into the store </li><li> 7. AM/FM radio was a new customer machine, increasing new buyers by 64% Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,093; Exposed: 13,710. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16. AM/FM radio exposure brought in buyers </li><li> 8. 7.7% 13.2% Unexposed Exposed Share of category spend How to read: The retailer secured 13.2% of the category spend among those exposed to the radio campaign compared to a 7.7% share of spend among those not exposed to the radio campaign. +71% Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16. AM/FM radio drove share growth in the auto aftermarket category </li><li> 9. -13% -15% -27% -30% -42% -50% # of buying occasions Spend per trip Spend per buyer # of buyers Market share Total spend % difference, unexposed vs. exposed Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16. How to read: Consumers not exposed to the radio campaign had less buyers, reduced shopping trips, less spend per buyer, and significantly lower purchases. Sales fall when a brand stops advertising </li><li> 10. Key takeaways Return on advertising spend: $21 incremental sales was generated for every $1 spent in radio Frequency works: consumers exposed seven or more times represent the largest source of sales lift More customers: AM/FM radio drove more buyers into the store New customers: AM/FM radio exposure brought in new buyers Share growth: exposure to AM/FM radio led to a higher share of the auto aftermarket category Advertising works: key sales measures plummet among the unexposed </li><li> 11. Radio delivers strong ROI for the auto aftermarket retailer Key takeaways For every $1 spent on radio, the brand saw return on advertising spend $ $21:1 return on advertising spend More buyers in total buyers 21 Higher market share +71% share of category spend +48% Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16. </li><li> 12. Radio delivers excellent ROI Source: Nielsen 2014-2016. Payback per $1 spent in radio Candy 3x Snacks 6x Breakfast Bar 2xBeer 4x Auto Aftermarket 21x Telecom 14x Mass Merchandiser 16x Home Improvement 9x Fast Food 3x Soft Drink 2x Department Store 17x Grocery 23x Retail 11x </li><li> 13. All concepts property of Westwood One and may not be used without permission or agreed upon spending levels. Details pending partner and talent approval and subject to revision. 2016-2017 Westwood One, Inc. Thank You </li></ol>