Why TV Is Still The Most Effective Medium€¦ · Why TV Is Still The Most Effective Medium FFWD Advertising week . January 26 th, 2016 . ... We wanted to better understand TV effectiveness

MarketShare confidential and proprietary 1

Why TV Is Still The Most Effective Medium FFWD Advertising week January 26th, 2016


MarketShare: Connecting marketing to revenue

Industry-leading marketing analytic for mix modeling, optimization, and cross-channel attribution

Full suite of globally scalable enterprise SaaS solutions

Professional services to align and promote organizational adoption and sales success


Answering the questions that matter most to Marketers

What portion of revenue is coming from marketing?

How much should I spend?

What are the most efficient marketing channels?

What is the optimal investment mix?

What is the expected return on the next dollar?

What will happen to my sales if my competitor doubles their marketing spend? We open 10 new stores? The stock market crashes? Etc.


We work with many leading global brands


Forrester names MarketShare as leader


MarketShare offers a combination of advanced analytics, cutting edge technology, and the deep domain expertise

Math & Science

Data & Technology

How we do it

Domain Expertise


We build holistic models of the entire ecosystem…

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Promotions

TV

Radio

Direct Mail email

Mobile Signs

Digital Signage

Magazine

Newspaper

Catalog

Banner Ads

Video Ads

Google

Bing

Content Commerce

Facebook Twitter

Blogs

Google Bing

Consumer Confidence

Interest Rates

Offering

Pricing

Discounts

Bundles

Coupons

Displays

Shelf space

Training Support

Conferences

Trade Shows

Paid

Owned

Earned Controllable

Non-controllable

Quality

Innovation

Competition

In Store

Seasonality

Economy

Service

Events Sales

Product Brand

Outdoor

Broadcast

Print

Display

Paid Search

Website

Social Media

Awareness

Consideration

Purchase

Organic Search

WOM

PR


..and measure both the direct and indirect impacts of media

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=6UuznaR-8-UMTM&tbnid=WtVq3M6Cyrs1MM:&ved=0CAUQjRw&url=http://www.elevation.com/EP_port_item.asp?id=8&ei=X3MPVMeRNKryiwKLz4C4AQ&bvm=bv.74649129,d.cGE&psig=AFQjCNFP5AfKnwz0CXlKvoal1_OwjfCmXQ&ust=1410385111276652


Response curves inform actionable recommendations

TV (more “responsive”)

Paid Search (less “responsive”)

Current spend

Optimal spend Marketing Investment

Revenue

+$100 Spend; + $200 Revenue

-$100 Spend; -$50 Revenue

Optimization increases revenue by $150 with no incremental budget

illustrative



MarketShare Analytic Framework: Attribution ► Optimization ► Allocation

OWNED/EARNED ACTIVITIES

COMPETITOR ACTIVITIES

MARKETING ACTIONS

MARKET CONDITIONS



Big advertisers are shifting significant budgets from TV to digital because of the perceived higher efficiency

“We are shifting more advertising to digital media, search, social, video & mobile as consumers

spend more time there. In general digital media delivers a

higher ROI than TV or print”

Procter & Gamble

“We continue to drive A&C [advertising & consumer] efficiencies by consolidating media providers, reducing non-working media costs and shifting

spending to lower-cost, digital media outlets while maintaining share of voice at historical levels”

Mondelez

“We are increasing our investment in the highest return

chocolate business and increasing digital within our

media mix”

Hershey

“We like the digital space because it better enables us to target to specific consumers in that space and it's not one size fits all. There are

some brands right now that are 100% digital - Swanson's is pretty close and there are others that totally rely on TV up until now. Condensed

soup was largely a TV marketed brand”

Campbell Soup


We wanted to better understand TV effectiveness in a changed media landscape

What is the most effective media channel across industry verticals?

How has media effectiveness changed in the digital era?

How important is the right media mix?

How do the different online video platforms compare?

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Partnered with leading US cable broadcaster and media agency on broad, cross industry analysis of marketing effectiveness

Analyzed media mix models from over 20 Fortune 500 brands

Included actual market observations from 2009–2014

Over $31 billion in US advertising spend

Results rigorously validated and tested

Wide range of industries


So, what did we learn?


TV is the most effective marketing channel across a wide variety of industries

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With $1 million to spend, TV provides up

to 7x the return of online, print, and radio



TV provides the largest indirect impact through organic search and web activity

Advertisers that do not consider the full impact

of TV are at risk of misallocating resources



Similar trends were found for the auto category in Canada

TV PRINT RADIO ONLINE PAID SEARCH

DIRECT

INDIRECT

LIFT FACTORS BY CHANNEL FOR CANADA COMPACT AUTO SEGMENT



Comparison of the change in lift factors from 2009 to

2014 for a major automotive brand in the US

Over the period analyzed, TV was the only medium that retained its relative effectiveness

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Potential reasons why relative media effectiveness may have changed

Click fraud (bots)

Viewability issues

Ad blockers

Inventory pricing

Lower consumption (e.g. traditional print)



TV (more “responsive”)

Paid Search (less “responsive”)

Marketing Investment

Revenue

$1,000

$300

While TV is the most effective channel, diminishing returns ensures a proper marketing mix is essential to obtaining optimal results

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illustrative



Brands that optimize their media plans can gain a significant increase in sales

Comparison of sales impact from shift to Optimal mix and Digital Heavy mix

relative to Baseline



A significant portion of the population browses the Internet while watching TV, or is in the proximity of their laptops, tablets or smartphones

If a TV ad brings a brand or a product to the attention of consumers, an immediate spike in online activity follows

The bursty nature of web data makes immediate response modeling extremely powerful, capturing within minutes spikes in website visits or inbound calls following TV activity

Furthermore, immediate response to ad exposure represents opportunity to fine tune TV advertising


TV Attribution can be used to measure ad effectiveness at a granular level and improve TV allocation

DMA-level ratings data and web response data at minute level

Analytics to quantify base vs. incremental traffic

Impact of each attribute within an airing, such as creative, network, day part, ad length or pod position

TV Commercial

time

Web Sessions by DMA

Incremental Sessions

Base Sessions


In one example, optimizing TV by dayparts led to a 3% lift in sales

+3% sales lift

Optimal TV allocation by daypart for an online subscription service



Comparing online video performance across platform suggests that content matters

The latter two groups outperformed their peers in ROI despite having 20%-70% fewer impressions

User Gen. Exchanges Broadcast/Cable Targeted

ImpressionsROI

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Key takeaways from the study

Across the industries examined, TV has the highest relative efficiency in achieving KPIs, when compared to other media drivers at the same spend level

In spite of the changes in consumer habits over the last few years, TV’s effectiveness at driving advertiser KPIs has not diminished;

A proper media mix rules and TV Marketers can now use advanced analytic techniques to optimize TV spend more effectively

As the lines between linear and online merge and media outlets explode, smart marketers will understanding invest in ROI



Last Thoughts

Solving cross-media and cross-channel analytics the right way is critical

Don’t get comfortable – the data and science of marketing effectiveness are

changing rapidly

Smart brands are looking for best-in-class partners for help



FOR MORE INFORMATION, PLEASE VISIT THINKTV.CA

Documents

Why TV Is Still The Most Effective Medium€¦ · Why TV Is Still The Most Effective Medium FFWD Advertising week . January 26 th, 2016 . ... We wanted to better understand TV effectiveness