CAN MULTI CHANNEL CAMPAIGNS MAXIMIZE MEDIA ROI IN AFRICA?Andrzej suskihead of media solutions africa & ME

PAMRO, Uganda 2012

2

Flow

• Advertising – luxury or a necessity?

• What is the right level of investment?

• Optimising effective SOV: Maximising reach

Paying less for intensity of exposure Leveraging the nature of the media and creative synergy

• Key things to take away

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How do we do our research?

Single source survey data

Establish likelihood to be exposed to all the elements of the campaign

Link level of exposure to uplifts in brand measures

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Advertising: luxury or a necessity?

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What happens when you don’t invest in the brand?

0%

80%

-30% 0% 30%

Share of Advertising Spend 2 - Market Share 1

% l

osin

g sh

are

R2 = 0.44

354 brands grouped on the basis of relative ad spend

6

…and by not advertising you can undo years of building base sales!

Most of advertising effectiveness can be seen in the long term base sales uplifts.

Vol

ume

2002 2003 2005 2006 20070

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2004 2008

Estimated sales

Base 84%

Price 4.2%Temperature 1.8%

Distribution 2.5%

TV Advertising 3.5%Seasonality 7.0%

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Base sales are driven by “brand impact”

CampaignTotal Sales

PerformanceEmotionPopularityDynamismDifferenceValueSalience

Brand Engagement

The Sales Response Effect

The Brand Effect

Strengthens loyalty of existing users and

brings new users into brand

Sustained, longer term

Immediate, short term

Mostly incremental sales to existing users

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So what kind of investment is right?

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Campaigns can fall into three areas

Not understanding the broad effective investment range can mean wasting resources

No cut through Effective range Diminishing returns

Not real data

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Over investment in any one channel creates inefficiency and wastage, reducing ROI

At traditional weights TV is often over delivered and so cost inefficient. Perhaps TV is not the best place to find “light’ or non TV viewers to grow our reach

Weeks

37% of campaign’s TV GRP’s were wasted here

Case Study: Malaysia, hair care

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My budget is fixed (and lower than I would like)… now what?

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How to improve effective Share of Voice?

Campaigns that resonate with the target audience and the most efficient ways to create opportunities to see that creative!

Better creative Effective use of media

So how can integrated campaigns get the most out of your budget?

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How can multi-media campaigns maximise my marketing ROI?

Increased reach

More exposure intensity for less money

Creative synergies

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Increased Reach

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How did our campaign achieve its reach?

Reaching the entire target market with TV can be very expensive. Get unique reach using smaller, more targeted media!

Total Magazines

35%

Total Online

18%

Total TV

68%

Total campaign 1 + reach = 75% of the target audience

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Example 1: What would I have to spend to reach the same audience with TV only?

Including YouTube represents a €250k efficiency in generating the same amount of reach compared with a TV only plan

TV Only

TV & YouTube

TV and Outdoor planTV spend 2.25m,

Outdoor spend 0.25m Total 2.5m

To achieve the same reach with a

TV only planTV spend 2.75m

Delivered Reach: 75%

+ €250k

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More exposure intensityfor less money

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Example 2: TTV resonates in the same way that TV does!

In the example above, 2/3rds of the sample said they had seen the ads on TV when it only flighted on TTV!

Where have you seen the campaign for brand XXX?

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Example 2: Video travels very well across channels!

Light users of TV can be reached at a low cost with potentially enhanced targeting!

Rate card monthly cost for a 30 second commercial on TTV is R165 000. This provides a reach of 75% of the sample on average with a frequency of 9.2 =

689 GRP’s.CPP = R240#

The same amount of money spent on TV would buy 27 AR’s

assuming CPP (1AR) = +/- R6000(R165 000 / R6000

= 27AR’s)

And it is not just TTV:

• Cinema• Digital display• You Tube

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Example 3: What was the contribution of the different elements?

In this example, most media contributed to the uplifts on brand attributes, with the highest reach medium, TV, contributing the most, as you would expect. However, the online and print advertising over-delivered across 10 brand attributes relative to investment.

TV

Onlin

e

Newsp

aper

Radio

End

orse

men

t

Sampl

ing

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

% points uplift across 10 brand attributes(Contribution across whole sample)

90% 17% 22% 16% 3%Reach

% increase per RXm spend across 10 brand attributes

CrossMedia Research ™Case Study – FMCG Impulse purchase

So mass media still rule!

but other media seem like great value for money…

…and build different areas for the brand!

Example 5: Exploring the role of the different channelsagainst KPIs...

TV plays a major role in this campaign driving key metrics. On-trade visibility relies on Outdoor –

linked to volume of activity and proximity to pos locations. Leadership relies on other media;

Outdoor, Cinema and particularly Online versus spend

TV

PRESS

OOH

ONLINE

Share of

Spend %

Brand visibility

generally

Brand visibility at

POSAdvocacy Appeal Leadership

$

$

$

$

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Creative Synergies

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Were there any media interaction synergy* benefits?

* Additional campaign effects, beyond the impact of the individual media used, due to people being exposed to more than one media.

% of campaign effect from each media and from synergy

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Example 6: TV did the most work, but most other activities more cost efficient, especially through media overlap!

Facebook and TV synergy, was very powerful, potentially because both media played very different roles in the campaign.

13 16

5

9

2

14

18

1

11

TV Outdoor Facebook Online (excl FB) TV & Facebook

Brand Awareness Consideration

Image 1: Taste Feature Image 2: Character Feature

• TV activity contributed most overall across all metrics (not all shown here)

• Outdoor had high spend but with a effect limited as it was used before TV broke, during two weeks only and in limited regions (we see this channel work better when ‘hooked in’ once the campaign has become more established)

• Online (excluding Facebook) shows little impact – however, it’s main focus was to drive interactions, mainly through Facebook

Data: CrossMedia Research ™FMCG, Europe, 2010

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Example 7: In this case 25% of impact on brand imagery came through synergies

Case Study: China, dairy product

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Example 8: Non TV media can perform alone but they do much better with TV priming

Addition of TV doubled effectiveness!

• In this case the non TV media uplifts were about 60 percent of TV alone

•When TV was added to them they were 35 percent higher than TV alone; more than doubling their effectiveness

59

100

135

Response within each Media Exposure group indexed on TV

Source: Case Study, Product Launch

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Key things to take away

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Optimising Integrated Campaigns

Investing the entire budget in one medium can lead to diminishing ROI

Embrace multi channel campaigns – the benefits outweigh the risks

• Smaller media (like digital) can be very effective

• There are different roles for different media.

• Mass media can create a base that benefits other channels

• Remember to keep your communication idea consistent throughout the campaign

Questions?Thank you!