Media Efficiency Panel MEP INMA Conference, Lissabon

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1 GfK Consumer Tracking INMA European Conference, Media Efficiency Panel October 2011 Media Efficiency Panel MEP INMA Conference, Lissabon Laurent de Groof GfK Netherlands

2 2

3 Adspend Newspapers and Magazines in decline in US, UK, Germany and the UK! Internet TV DE UK NL US 100 US DE UK Newspapers Magazines NL UK US DE US NL UK Source: ZenithOptimedia - April 2011

4 Is it wise to move your media budget from Newspapers and Magazines to Online and TV? 4

5 Besides purchases also advertisement exposure is measured single source in the GfK Media efficiency Panel. 5 Purchases Media usage: TV, Radio, Online, News papers, Magazines. Consumer Electronic measurement online and TV én purchases

6 General Learnings: It is all about measured ROI! Advertising Effectiveness MEP advantages Limitations 6 ROI Efficiency by Media Channel Interaction effects between Media Channels Single Source Measured purchases & contacts Causality: Contacts before buying Split of Online Channels & Formats Benchmarks of 98 Studies Interferring variables cleaned Actionable Insightsfrom an independent Partner home only Feasibility of small Brands/ campaigns No Long Term effects

7 Heavy travelers read more often De Volkskrant Travel category buyers 7 Light travel buyers - index vs NL 18+ Medium travel buyers - index vs 18+ NL Heavy travel buyers - index vs 18+ NL Algemeen Dagblad De Telegraaf De Volkskrant Metro Spits Algemeen De De Metro Spits Algemeen Dagblad Telegraaf Volkskrant Dagblad De Telegraaf De Volkskrant Metro Spits Source: GfK Media Efficiency Panel - November 2010 until January 2011

8 Drivers of supermini s (small cars) more often read Spits. And under the SUV buyers you have 61% more Telegraaf lezers. Automotive category buyers 8 Supermini buyers - index vs NL 18+ Family Car buyers - index vs 18+ NL SUV/ MPV buyers - index vs 18+ NL Algemeen Dagblad De Telegraaf De Volkskrant Metro Spits Algemeen Dagblad De Telegraaf De Volkskrant Metro Spits Algemeen Dagblad De Telegraaf De Volkskrant Metro Spits Source: GfK Media Efficiency Panel - November 2010 until January 2011

9 Duplication Between old and new Media Reach news websites 9 ad.nl telegraaf.nl nu.nl metronieuws.nl spitsnieuws.nl 49.7% 48.9% 27.5% 29.6% 33.7% 31.3% 28.9% 36.1% 35.3% 34.0% 32.7% 33.1% 33.4% 23.1% 20.8% 2.7% 3.6% 3.2% 1.1% 1.8% 1.3% 4.2% 4.7% 4.7% 5.5% NL 18+ AD readers Telegraaf readers Metro readers Spits readers Source: GfK Media Efficiency Panel - November 2010 until January 2011

10 GfK Consumer Tracking INMA European Conference Media Efficiency Panel September It is all about ROI!

11 Calculation of effect and efficiency 11 Sales impact = Sales impact on exposed group - Sales impact unexposed group Effectiveness = Sales impact x Reach Efficiency = Effectiveness Budget

12 Media Impact Modelling: Logistic regression Marketing Mix Evaluator (MME) 12 In order to quantify the media impact a logistic regression analysis is used. This is a mulitvariate, non-linear regression-method for dichotomous events. The drivers for the buying decision for the focus brand are determined. Individual circumstances of a household are considered for each shopping trip Number of advertising contacts of the household before buying (with focus brand and competition) Promotion activities (of the focus brand and the competition) in the shop at the point of sale Integration of loyalty to the focus brand, e.g. was the focus brand already bought in a defined pre-period Control variables: sociodemographics of household (age, income, household size ) Formula = Contacts before buying (x weeks) X Delta Uplift per contact class X Delta Brand Spend

13 Online still plays a minor role in the Media Mix. Due to lack of efficiency? GRPs of the Campaign of 98 MEP Studies min=92 max=2201 min=5 max=272 min=5 max=160 min=5 max=119 min=1 max= TV PRINT Banner** Video** SEM** **exposure in home only

14 Short term ROI differ by media channel. But Media Channel specific Gross Net differences have to be considered BEST OF: Short Term Gross ROI of paid digital media 14 Based on 98 Studies (GfK Media Efficiency Panel) Online = minimal effects due coverage only 1,22 0,68 0,71 0,27 0,22 0,43 0,31 TV PRINT Banner** Video** YouTube only SEM** Facebook 2012: Differentation of Benchmarks by Format, Category

15 BEST OF ROI: Characteristics Based on 98 Studies (GfK Media Efficiency Panel) 15 Content relevant placement scores superior to reach portals Involving / attentiongetting content is key: Impression works! Positive interaction effects of TV & Digital Moving Images if Message is integrated across Media channels TV Reach Maximization / Beat Diminishing Returns Effect (average: 25% incremental reach per online campaign versus TV) Bigger brands get higher ROI (Ratio Turnover / Spendings >5) Online ROI is less driven by Budget level but more important is format, message and placement Customer Value (Brand Affinity) of Consumers reached with Online is above average Longer campaigns superior to shorter / boosted campaigns as more purchase decisions can be influenced Online Impact is NOT limited to younger consumers Online generates more sales impact on Loyal buyers than New Buyers

16 Success Characteristics of Best scoring banners (Gross Short Term ROI) 0.27 TV ROI top (10) scoring banners: Print Banner Video YouTube (incl YT) only 1.22 SEM 0.31 Facebook Success Factors / Characteristics: 1) The more the movement, the better the ROI 2) Positive synergy effects (traffic channeling to homepage / coupons) 3) High importance of content relevant placements 4) Over proportionally successful in age group years 5) Frequency cap up to max 2 contacts per week 16 Based on 98 Studies (GfK Media Efficiency Panel)

17 Success Characteristics of Best scoring videos (Gross Short Term ROI) ROI top (10) scoring videos: Success Factors / Characteristics: 1) Separate creation, not just playing TV Spot TV 0.66 Print 0.22 Banner Video YouTube (incl YT) only SEM 0.31 Facebook 2) Over proportionally successful in age group years 3) Involving -> Awareness -> high impact on Sales 4) Synergy Effects with TV Campaigns if message is aligned (up to 90%) 5) High impact on sales with TV Low Viewer 6) Margin utility curve by contacts per week shows optimum with 3 contacts 7) Decay Rate of Videos in average comparable with TV Decay Rate (measured) 8) Catch up Formats show above average sales impact Based on 98 Studies (GfK Media Efficiency Panel)

18 Success Characteristics of Best scoring SEM ads (Gross Short Term ROI) ROI top (10) scoring SEM ads: Success Factors / Characteristics: 1) Search AdImpressions sell FMCG short term (cleaned by loyalty) TV 0.66 Print 0.22 Banner Video YouTube (incl YT) only SEM 0.31 Facebook 2) Generic Search matching with general & specific interests of Brand Target Group sells as well. 3) Traffic generation (generic / branded) essential for website efficiency 4) Prerequisite: Website landing page offers highly relevant content 5) Over proportionally successful years 6) TV/Online campaigns increase Search by approx 25% 7) Generic Search Words must link with Homepage content Based on 98 Studies (GfK Media Efficiency Panel)

19 Success Characteristics of Best scoring Facebook ad (Gross Short Term ROI) Success Factors / Characteristics: TV 0.66 Print 0.22 Banner Video YouTube (incl YT) only 1.22 SEM 0.31 Facebook 1) Low Uplift due to Text Ad format combined with low cost leads to average ROI 2) Brand messages must be interesting and new to generate buzz 3) New Launches rather more efficient than established brands 4) Viral contacts & Fan Site contacts sell as well FMCG Based on 4 Studies (GfK Media Efficiency Panel)

20 Success Characteristics of Best scoring TV ads (Gross Short Term ROI) ROI top (10) scoring TV ads: Success Factors / Characteristics: 1) Highest ROI with New Launches & Event announcements ) Positive Interaction with parallel Video campaign TV Print Banner Video YouTube (incl YT) only SEM Facebook 3) Sales Impact on New Buyers > Repeat Buyers (Short Term!) 4) Need to renew Base TV commercials as wear out tends to accelerate 5) Ratio Turnover Brand/ TV Spendings should be > 5 Based on 98 Studies (GfK Media Efficiency Panel)

21 Best scoring Print Ads (Gross Short Term ROI) ROI top (10) scoring Print Ads: Success Factors / Characteristics: 1) TZ Ads with Coupons show hightest ROI ) Hightest impact on Consumers with Brand Affinity TV Print Banner Video YouTube (incl YT) only SEM Facebook 3) 20% of all Print contacts are exclusive on top of TV (50+) Based on 98 Studies (GfK Media Efficiency Panel)

22 What have we learned for the future today? Fact based Cross Media Strategies help to maximize ROI s 22! Learn-Test-Learn Base your decision on Hard Facts! Focus on ROI but add Image & recognition to understand better! Link Online & Offline Planning together! Use What if Simulations to find optimal spending level

23 If you leave your business card, the full presentation will be send to you this week! 23 Laurent de Groof Managing Consultant Tel: +31-(0)

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