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  • 1. The Golden Rules of Measuring CPG Advertising Performance Confidential and Proprietary Not for Public Distribution Do Not Copy Client Logo Goes Here 1
  • 2. An Introduction to Todays Presenters Phil Ripperger, Vice President New Media Solutions, IRI IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action. Marc Ryan, Co-CEO, InsightExpress InsightExpress a leading provider of media analytics and marketing accountability solutions for brand marketers Confidential and Proprietary Not for Public Distribution Do Not Copy 2
  • 3. Golden Rule: Frequency is crabgrass Confidential and Proprietary Not for Public Distribution Do Not Copy 3
  • 4. Frequency contacting one consumer three times with a message, is not as good as reach contacting three consumers once, because that one consumer will be far less likely to need that product than any of the other three. - Erwin Ephron Confidential and Proprietary Not for Public Distribution Do Not Copy 4
  • 5. Diminishing Returns on Upper Funnel Upper funnel metrics move the most at a single exposure. 3.0% Multiple exposures has less of a net benefit to the brand than does finding an unexposed viewer. Lift in Brand Awareness 2.0% 57% 54% 46% 1.0% 29% 7% 0.0% Confidential and Proprietary Not for Public Distribution Do Not Copy 5
  • 6. Oversaturated Returns on Lower Funnel Lower funnel metrics move sparingly at most frequency levels with the exception of the highest bounds. Seeking out 16+ exposures may not be worth the expense vs. finding new viewers. Lift in Message Association 3.0% 2.0% 108% 69% 54% 1.0% 35% 0.0% Confidential and Proprietary Not for Public Distribution Do Not Copy 4% 6
  • 7. Golden Rule: Measure the Multiple Return Objectives Confidential and Proprietary Not for Public Distribution Do Not Copy 7
  • 8. Advertising is Multi-dimensional Confidential and Proprietary Not for Public Distribution Do Not Copy 8
  • 9. Digital channels have disrupted consumer behavior and the traditional path-topurchase Opens Shopkick app and checks in Back to computer to check retailer ads Grabs phone to add baby items to shopping list app Consumer watches Beyonce video that one of her friends liked on Facebook at Target; excited to use coupons she printed when directed to Healthy Essentials website 7 5 9 3 8 1 6 4 2 Sees ad online while reading entertainment content Checks Just for U app for coupons; nothing relevant Completes list and chooses Purchase made from Target Cartwheel At back yard barbecue posts picture on Instagram #PepsiNext rocks because a pop-up appeared with a customized shopping list Confidential and Proprietary Not for Public Distribution Do Not Copy 9
  • 10. Advertising Effect is Multi-dimensional The complete picture of how advertising works is not always apparent by isolating your measurement to one part of the Total ROI funnel. Confidential and Proprietary Not for Public Distribution Do Not Copy 10
  • 11. Peanut Butter Example Unaided Awareness 25.0% 23.4% 22.5% 23.3% 20.3% 20.0% 18.1% 16.1% 14.1% 15.0% 13.9% 14.6% 12.4% 12.8% 10.8% 10.0% 10.0% 7.1% 6.9% 5.0% 0.0% Control Online Print ONLY ONLY Radio ONLY TV ONLY Online Online Online TV + + TV + Print + Radio Print Confidential and Proprietary Not for Public Distribution Do Not Copy TV + Print + TV + Online Online Online Radio Radio Print + + TV + + TV + + TV + Radio Print Radio Radio + Print 11
  • 12. Peanut Butter Example Dollars/Household ROI Calculation = 0.13 $0.13 / household 15,354,298 households $1,966,059 sold $2,116,500 media cost $0.94 ROI $1.03 $1.16 Un-Exposed Exposed Penetration Occasions +23% Confidential and Proprietary Not for Public Distribution Do Not Copy Dollars/Occasion -7.1% 12
  • 13. Golden Rule: Choose the Right Measuring Stick Confidential and Proprietary Not for Public Distribution Do Not Copy 13
  • 14. Single Source vs. Models Single Source Measurement Modeled Measurement Pros: Pros: All media and sales effect attributable at a viewer level no guessing. Most media and behavior can be incorporated. Quick turnaround on results and data. Few restrictions on what brands or media are measurable. Incorporates attitudinal measures. Cons: Cons: Not all media or behavior is measureable at viewer level. Sample size constraints. Few intra-media effects. Long turnaround times. Doesnt account for attitudinal results. Requires assumptions. Confidential and Proprietary Not for Public Distribution Do Not Copy 14
  • 15. Modeled Measurement - Example Matched Market Measurement Modeling is appropriate for determining sales lift: Hispanic Search Behavior Consumables Alcohol Outdoor Brands saw positive volume sales lifts in markets where they increased search support, ranging from 1.0% to 4.2%, with the average impact 3.1% Brands saw an average decline of -1.3% to volume sales in markets where search was dark. Volume % Changes by Treatment All 4 Brands Dark Heavy Up Search Confidential and Proprietary Not for Public Distribution Do Not Copy 15
  • 16. Single Source Measurement Example: Targeting & ROI Client Context and Objective Results over 12 weeks Long-standing food client introduced a product extension within a very popular, health-oriented category Objective: increase household penetration without cannibalizing sales within the brand portfolio 6% increase in the household penetration Solution 30% increase in occasions among exposed targeted households The IRI household panel was used to identify new brand buyers with a high propensity to purchase the new product by identifying buyers of: Similar products from competitive brands Products with similar properties within the clients brand Products with similar properties among competitor brands Look-alike modeling was used to translate target consumers from the IRI panel to the media partners database IRIs panels purchase data was used to measure sales results post-campaign, evaluate ROAS 4.9% 5.2% Household Penetration 1.15 1.50 Occasions 30% increase in the average dollar spend per exposed buying household $0.27 $0.35 Dollars/Household Targeted Households Confidential and Proprietary Not for Public Distribution Do Not Copy Control Group 16
  • 17. Golden Rule: Creative & Media Confidential and Proprietary Not for Public Distribution Do Not Copy 17
  • 18. Creatives effect on performance Creative 75% 25% Media Confidential and Proprietary Not for Public Distribution Do Not Copy 18
  • 19. Case Study: Frozen Pizza Campaign Summary Initial, directional results are positive Dollars per household are up 13.3%, penetration was up 17.5% offset a small decrease in occasions vs. the control. Creative Performance Soccer only creative clearly outperformed Creative Interim Period - Index to Total Targeted Dollars/HH Penetration Occasions $ per Occasion Buyer Count # IRI HHs Exposed 44047 - Soccer (Only) 148 140 103 103 81 626 44049 - 14 Min (Only) 72 90 88 92 58 644 119 134 88 101 69 647 44051 - Obstacle (Only) Confidential and Proprietary Not for Public Distribution Do Not Copy 19