the seismic shift in targeted advertising and media
DESCRIPTION
At the recent "Media & Money" conference in New York, I gave a presentation on "The Seismic Shift in Targeted Advertising and Media," or Yield Management: What Advertisers Can Learn From the Airlines. For all of its negative press and terrible operating results, the airline industry has produced one brilliant success which has the potential to turn the advertising and media business upside down: yield management. Advertisers now have all the pieces of the yield management puzzle--and just need to put them together to vastly improve their marketing efforts.TRANSCRIPT
Confidential & Proprietary • Copyright © 2009 The Nielsen Company
Media & Money ConferenceRandall Beard, Global EVP at Nielsen IAG -- CPG
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
The Seismic Shift in Targeted Advertising and Media
•Current State
• Analogue: Airlines
• Yield Management in Marketing?
• TV Engagement
• Ad Engagement
• Implications & Future State
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Approach Rules of Thumb
Target Audience
Measurement
Primary Focus
Financial Impact
Timing
Broad
Viewership
1 Screen
Unclear Outcomes
Annual
Advertising & Media – Current State
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Introduction of Yield Management
• Optimize Revenue
• Perishable Resource
• Price Discrimination
Analogue: Birth of Yield Management
Airline Industry circa 1985
• Peoples Express
• Highly profitable
• AA launches SuperSavers
• Peoples bankruptcy
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
“the single most important
technical development in
transportation management
since we entered deregulation”
Robert CrandallFormer Chairman & CEO of American Airlines
Yield Management – Disruptive
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
For Advertisers
• Right Ad
• Right Consumer
• Right Program
• Right Price
For Airlines
• Right Seat
• Right Customer
• Right Time
• Right Price
Yield Management: Airlines to Marketing ?
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Digital
Cross Media Measurement
New Measurement Tools
• Precision Targeting
• TV Engagement
• Ad Engagement
• Purchase Data link
Real Time
Accountability
Yield Management in Marketing – Key Enablers
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
PROBLEM
Inadequate real-time tools and measurement
Advertisers willing to pay for ad and media effectiveness
BUT
Yield Management: Airlines to Marketing
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
TV Program Engagement
•What is it?
•Does it Matter?
TV Program Engagement
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0%
10%
20%
30%
40%
50%
60%
70%
80%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
When viewers are paying more attention to a TV program, they also pay more attention to the ads that air within that program
Gen
eral
Rec
all
Program Engagement
Program Engagement Impacts Ad Recall
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Ad Engagement
• What is it?
• Does Context Matter?
Advertising Engagement
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Source: Nielsen IAG Ad Data, 09.15.07 - 02.27.08. Based on A18-54 with Household Income $50K+
Purchase Intent Differs By Program Genre For the Same Creative Unit
Program Genre Purchase Intent (Top 2 Box)
Auto Racing 173
Sports Magazines 158
Professional Football–Pre-Game 119
Drama/Adventure 119
Animation 104
Feature Film 104
Reality 96
Situation Comedy 92
Game Show 92
Professional Football–Game 88
Talk Format 81
College Football–Game 77
Documentary/Salute/Tribute 69
Total 100
Advertising Engagement – By Program Genre
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Where is all this leading ?
Yield Management in Marketing – What’s Next
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Science / Algorithms
Advertising & Media – Broad Trends
Broad Target
Viewership
1 Screen
Unclear Outcomes
Annual
Rules of Thumb
Precision Targets
Engagement
3 Screens
Purchase / ROI
Real Time Replanning
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Advertisers will move toward Yield Management• Right Audience – Demo + Psycho, Behavioral
• Right Program – Ratings + TV Program Engagement
• Right Ad – Creative + Ad Engagement
• Right Time – Annual + Periodic Replanning
All linked to consumer purchase behavior…
…with Marketing ROI as key outcome
Future State: Marketing Yield Management
04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
The Future – Closer Than You Think
ROI Driven Advertising & Media
“…Get on board soon or
risk being grounded…”
Confidential & Proprietary • Copyright © 2009 The Nielsen Company
Discussion / Q&A
For more, go to:http://blog.nielsen.com/nielsenwire/