Using single source data to precisely - Home - Wharton CAIwcai.wharton.upenn.edu/wp-content/uploads/2014/07/NielsenCatalina... · Catalina Frequent Shopper Card Data Nielsen Homescan

Copyright © 2014 Nielsen Catalina Solutions • Confidential & Proprietary 1

Using single source data to precisely target and measure advertising’s

impact on sales to drive ROI

WAIC Conference – May 1, 2014 Nielsen Catalina Solutions


What we’ll cover

• Purchaser-centric approach

• Single source data

• Buyergraphics vs. demographics

• Driving retail sales and ROAS

• Case studies


Nielsen Catalina Solutions (NCS)Combining strengths of two industry leaders


TV Watch Data Nielsen Media Data +Millions of computer screens, Televisions, mobile phones

Buy Data Catalina Frequent Shopper Card Data

Nielsen Homescan All-Outlet DataClient Proprietary Sales Data

70 MM HH

ANONYMOUS SINGLE SOURCE HHs

WATCH

Matching what consumers watch and buy

Single Source

Households


STB4.3 MM

Households

Catalina FSD70 MM Households

HomeScan

100,000

NPM + MM

37,000

1.4 Million

NCS TV Single Source: Big, Smart Data

Quality = Scale & Representivity


Online portals & publishers

~100 MM HH

Catalina FSD70 MM HH

HomeScan

100,000

NOL100,000

16 Million

NCS Digital Single Source: Big, Smart Data

Quality = Scale & Representivity


Survey = Claimed Single Source

Households Demographics

Life Stage & Lifestyle

Increase in Data Precision

“Place an X by the product if youhave used it in the last 6 months”

ACTUAL CONSUMER RETAIL SALES DATA+ ACTUAL TV VIEWING

Survey BasedPurchaser

vs.

Single source provides greatest precision & ROAS

Single Source


47% of the brand’s volume reached by demographic target 53% of the brand’s volume is outside

the demographic target

BRANDVOLUME

53%

Today’s reality…demographic approach can miss over half your buyers

WOMEN

25-54 47%


DEMOGRAPHIC

APPROACH

MEDIA TARGET

“Proxy” or best fit:Women 25-54

PURCHASE BEHAVIOR

Claimed / Syndicated

MEDIA METRIC

Women 25-54 (GRPs)

SUCCESS METRIC

Improvements vs. last year

BUYERGRAPHIC

APPROACH

Actual Brand BuyersActual

Brand Rating Points (BRPS) –more

buyers/dollars spent

On Average: +10%more buyers & +30% incremental sales lift

DEMOVOLUME

BRANDVOLUME

+ -/vs. last year

Single Source enables a “buyergraphic”approach to media activation


ASSESSDELIVERY

Post-buy analysis basedon purchasers

OPTIMIZEPLAN

Buyergraphics identify buyer-rich media for plans/allocations

SUPPORTACTIVATION

Support agency planning/buying

systems

SalesEffect

Studies

MEASURE SALES IMPACT

AdVantics™

Based onpurchase behavior

DEFINEAUDIENCE

Continuous Media Optimization Process


Case Studies


MASKED BRAND ILLUSTRATION

Brand X Category Buyers Decomposition

3X MORE RESPONSIVE

TV Case Study – CPG Brand

Identify the most sales responsive consumers


13%

TV Case Study – CPG Brand

TV-driven incremental sales increased by 20%

OriginalDemographic Based

$13,276 MM

Brand A

Original

20%

OptimizedBuyer Based

$15,931 MM

Optimized


Buyergraphic Optimization

BRAND X BUYERS

# Network Rating

1 ABC Family 0.51

2 E! 0.50

3 TBS 0.42

3 HGTV 0.42

5 TNT 0.37

6 WEtv 0.34

7 A&E 0.32

8 TLC 0.31

9 Bravo 0.29

10 Food Network 0.28

11 Lifetime 0.25

185 index

80% FEMALE

Source: Nielsen Media Research AdViews (4Q 2012-2Q 2013)

DemographicSelection

WOMEN 18-49

# Network Rating

1 TBS 0.57

2 ABC Family 0.47

3 A&E 0.43

3 TNT 0.43

5 TLC 0.38

6 Bravo 0.36

7 HGTV 0.35

7 Lifetime 0.35

9 Food Network 0.34

10 BET 0.29

11 E! 0.27

Case Study – TV Network

Finding Brand X buyers on Cable Networks


TV Case Study – CPG

TV campaign increased sales by >10%

Actual ROASD

EPLO

Y M

EDIA

CO

NTI

NU

OU

S M

EDIA

OP

TIM

IZA

TIO

N

Three strong Buyer Segments identified

Original

Network NBC CBS

HH GRP’s 2.9 3.0

Buyer Index

67 79

Har

ry’s

La

w

Ho

w I

Met

You

r M

oth

er67

79

TV schedule under-delivered buyer segments

Revised

Network NBC CBS

HH GRP’s 3.6 5.7

Buyer Index

126 108

The

Off

ice

Surv

ivo

r:O

ne

Wo

rld

126

108

Programs were shifted to reach buyers

Bu

yer

Segm

ent

A

Bu

yer

Segm

ent

B

~210 index

~400 index

Bu

yer

Segm

ent

C

~175 index

Buyer Index

> 10% Incremental Lift in

TV Driven Sales

Ori

gin

alD

emo

grap

hic

Bas

ed

Op

tim

ize

dB

uye

r B

ased

>10%

ID HIGH POTENTIAL BUYER SEGMENTS

OPTIMIZE MEDIA TO REACH BUYERS

MEASURE RESULTS


TV Case Study: Multiple CPG Brands

Marketing Situation:

• BRAND LOYALTY was DECLINING

• PURCHASE ON DEAL was INCREASING

• TV ROI was DECLINING

Problem: How to improve the TV ROI across entire Brand portfolio?

needs graphic design work


Buyergraphic targets were developed for each brand. Existing TV inventory was reallocated to better match programs with targets

Brands Original TV Target NCS Buyer-Based Target

Brand A A 25 – 39 Heavy Buyers of Brands w/ Similar Flavor and Type

Brand B A 35 – 49 Heavy Buyers of Competitive Brands

Brand C A 18 – 34 Heavy Buyers of Brands w/ Similar Flavor

Brand D A 18 – 34 Heavy Buyers of Category

Brand E M 25 – 34 Category Switchers


Media Results: 21% more BRPs were delivered to the entire brand portfolio after re-allocation

4,466 4,4664,989

6,046

Original Delivery NCS Re-AllocationGRPs BRPs

Q2 2013 National TV Inventory Re-Allocation

+21% BRPs


BRAND A BRAND B BRAND C BRAND D BRAND E

Q2 Original Delivery BRPs Q2 NCS Re-Allocation BRPs

% Increase 38% 22% 58% 32% 17%

Media Results: Each brand delivered more buyers after re-allocation


Financial Results: TV-driven incrementalsales lift

* Normative results are from 27 studies that include beverage and food categories

X

21% 44%

OPPORTUNITY TO INCREASE TV DRIVEN INCREMENTAL SALES VOLUME

Value of Additional Buyer

Rating Points

1.0% 2.1%

% INCREASE IN TV DRIVEN INVENTORY SALESPER % INCREASE IN BRPS*

Increase in Buyer Rating Points

21%BASED ON Q2 2013 INVENTORY

ALLOCATION TO BEST REACH EACH BRAND’S TARGET BUYERS


What’s driving sales?

TV

TV Driven Sales for Brand

BrandIncremental Sales due to

TV (MM)

% Increase in BRPs

Range in Incremental Sales Gain

(MM)

LowRange

HighRange

Brand A $21.9 38% $8.3 $11.8

Brand B $18.5 22% $4.1 $7.1

Brand C $25.8 40% $10.3 $14.4

Brand D $71.8 32% $22.9 $34.5

Brand E $2.7 17% $0.5 $0.9

Total Portfolio $140.7 $46.1 $68.7

Financial Results: Annual incremental sales increased $46MM – $69MM using buyerbased TV targeting

---

Marketing Mix


$43.5MMMedia

Spending

7,690HH GRPs

90%Reach

$199MM Incremental Sales$4.57 ROAS

4.5% Sales Uplift

ImpactExecution

NCS Holiday Campaign Sales Effect Measurement

TV Case Study – Retailer

TV campaign drove retailer’s sales at holiday


Digital Case Study – Ad Payback

Online Ads generate $3 for every $1 spend on advertising using purchaser information


Radio Case Study – Ad Payback

Radio is effective for driving sales!

Radio Payback per $1 Ad Investment

Ratio of incremental sales revenue per thousand to advertising cost per thousand = PaybackSource: Nielsen Catalina Solutions, Radio Ad Norms 2014

$11.15

Retail A

$6.21

All - Category Average

$1.81Breakfast Bar

$7.33Snacks A $4.17

Beer

$3.81Soft Drink A

$4.33Snacks B $23.21

Retail B

$1.38Soft Drink B

$3.12Candy

$1.97Soft Drink C


Compilation of 1,000+ studies across multiple categories

Control Exposed

+24%

Control Exposed

+22%

NCS Purchase-based Targeted Campaign

NCS Purchase-based Targeted Campaign

Case Study Compilation – Digital and TV

TV CampaignAverage Dollars Per Household

Control

+18%

Exposed

Digital CampaignAverage Dollars Per Household

Control

+17%

Exposed

Non-NCS Targeted Campaign

Demo-Targeted Campaign

NCS “buyergraphics” ~30% incremental retail sales lift


Single source data with purchaser-based targetscan drive sales and increase ROAS for all media


Final Thoughts --

TBD

TBD

TBD

TBD


Thank you!To learn more, contact:

Leslie [email protected]

www.ncsolutions.com

Documents

Using single source data to precisely - Home - Wharton CAIwcai.wharton.upenn.edu/wp-content/uploads/2014/07/NielsenCatalina... · Catalina Frequent Shopper Card Data Nielsen Homescan