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1 Google confidential
Cross Media Analysis Increasing ROI in the media mix L’Oreal case study
2 Google confidential 2 Google confidential
Main content
Summary (slides 3)
Set-up and Objectives (slides 5-7)
• Study objectives
• Campaign overview
• Set-Up research
Analysis (slides 9-13)
• Google Display Network (GDN)
• Optimizing ROI Curves
• Optimization of Pre-roll campaigns
• Frequency capping
Recommendations (slide 15)
Appendix (slides 17-19)
• Monthly efficiency indices ROS (untargeted) and targeted Pre-roll
• Explanation regression analysis
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Increase ROI by 32% by shifting 10% TV budget
Current budget allocation New budget allocation
72%
17%
11%
TV
Online
65%
21%
14%
TV
Online
10% of TV budget towards Print/Online
ROI indexed on 100 ROI = 132
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Set-up and objectives
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Study objectives Main Research questions
Research questions for optimizing the media mix
• How do cost per GRP for TV, Print, Display, Video Ads and Rich Media compare?
• How to optimize reach and (effective) frequency across media/formats?
• How does targeting of media and ad formats compare to each other?
• What is the impact of the different media and ad formats compared to each other?
• How do cost/effect (ROI) scores compare?
1 Online and off-line have different “languages”: how do we integrate them towards one currency?
2 Online and off-line have different impact and cost: how do we compare and optimize the media mix?
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Research and campaign period (18 campaigns included)
The research and analysis were done over a 5 month period, including 18 campaigns of 14 different beauty products.
February March April May June July
Week 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Product 1
Product 2
Product 3
Product 4
Product 5
Product 6
Product 7
Product 8
Product 9
Product 10
Product 11
Product 12
Product 13
Product 14
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Method: Media Efficiency Panel Purchase and media behavior measured from the same individuals (single source)
Folder
Loyalty
Price
TV
Radio
Online
Psychographic
Demo-graphic
Media
Purchase
Personal
Promo
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How to reallocate 10% TV budget and increase ROI by 32%?
Cost
Targeting
Impact
Cost/Effect
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Low cost/GRP on GDN results in opportunity to increase ROI using a small part of the 10% TV budget
The cost/GRP (or CPM) on Google Display Network on average are ~20 times lower than TV, targeting is 9% better and
impact per served impression is about a fifth of TV. This results in ~4 times higher ROI at current spend level. A small
part of the 10% shift in TV budget is allocated to GDN resulting in 4 times more GDN impressions.
Cost 20,11
Targeting 1,09
Impact 0,19
Cost/Effect 4,20
€556
€23
€-
€100
€200
€300
€400
€500
€600
TV Google Display Network
Net Cost/GRP
Source: price of GDN is based on the auction + Cost/GRP TV from Carat Media facts booklet (TV net cost based on 70% average market discount)
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Shift budget to media that are in steeper part of ROI curve Shift part of TV budget towards print and part of ‘Rich media other’ budget towards YouTube
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0 2 4 6 8 10 12 14
TV
Rich Media YouTube
Rich Media Other
→ Average number of contacts
→ In
crea
se in
sal
es
= Average number of contacts
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For many audiences targeted pre-roll is cheaper than TV On TV smaller audiences have a higher GRP price whilst each GRP delivers fewer impressions. YouTube Pre-roll has more stable rate by audience.
Net Cost/GRP Indexed against TV for common TV audiences
1.0
0.1
1.0
0.2
1.0 0.6
1.0
0.3
1.0 1.1
0
1
2
3
4
5
6
7
8
9
10
M20-34 20-34 20-49 V20-49 13+
Net cost/GRP (euro) Population size
Impressions per GRP
Average Net CPM TV (euro)* Average Net CPM l’Oréal
13+ 625 13,753,000 137530 5 5.5
20-34 795 2,996,000 29960 27 5.5
20-49 691 6,832,000 68320 10 5.5
Shoppers 20-49 633 3,732,000 37320 17 5.5
Shoppers + Kid 625 1,896,000 18960 33 5.5
Men 20-34 925 1,502,000 15020 62 5.5
Women 20-49 624 3,398,000 33980 18 5.5
Source: CPM targeted Pre-roll on YouTube in the auction was 5,5 euro + Cost/GRP TV from Carat Media facts booklet (TV net cost based on 70% average market discount)
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HIGH SEASON HIGH SEASON
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Targeted Pre-roll: €14,- CPM
Untargeted Pre-roll (Run of Site): €10,- CPM
Monthly TV costs are STER, SBS, RTL and and average. YouTube Pre-roll costs are based on the YouTube 2012 rate card
Cost/GRP
Pre-Roll is extra efficient in expensive TV months Large Pre-roll opportunity in expensive TV months due to seasonality. Pre-roll does not have this seasonality over months. (calculation Pre-roll versus TV ROI by month in back-up)
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Cap frequency for sites with very frequent visitors Sites/networks with high visiting frequency create too much contacts. For those sites, frequency capping increases ROI strongly.
18.6%
7.3%
9.2%
4.6%
11.6%
4.0%
8.2
4.2
3.0
8.2
3.6
5.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Display Google Display Other Rich Media Google
Rich Media Other Pre-roll Google Pre-roll Other
Reach
Frequency
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Recommendations
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Recommendations: shift 10% TV budget
1 Shift part of the TV budget towards Google Display Network. The combination of 20 times lower cost/GRP and
one fifth of the impact compared to TV results in ~4 times higher ROI at current spend level.
2 Shift budget at the end of the TV ROI curve towards media that are still functioning in a steeper part of their
ROI curve (Print and Rich Media).
3 Use variation in TV pricing over months and target audiences as an opportunity to find month versus audience
combinations where Pre-roll is a cheaper solution than TV. (see back up slides for ROI calculation Pre-roll
versus TV by month and audience)
4 Apply frequency capping particularly on sites with very frequent visitors (e.g. social sites). Otherwise
campaigns build an extreme amount of contacts with a relatively small part of the target audience.