Beth Bubon, PepsiCo North America Nutrition Group Bhanu...

Digital Optimization: Strategies for Success

Beth Bubon, PepsiCo North America Nutrition GroupBhanu Bhardwaj, IRI Media Solutions

Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary.2 Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary.2

Digital Optimization: Strategies for Success

Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary.3

Digital Spending is Growing and Investment Choices are Vast

CPG is the 2nd Largest

Programmatic Spender

2nd

of CPGs Shopping

Trips Begin Online

76%

5,000 Ads Today vs. 500 in the

1970s

5k

of Shoppers Say Mobile is

the Most Critical

Shopping Tool

75%

of Marketers Believe Their Marketing is

Effective

40%

2,500+ Marketing Technology Companies

2.5k+

CPG Digital Ad Spend

$6B

Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary.4 Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary.4

THE BUSINESS QUESTION

My investment in digital is growing every year… how do I ensure the best returns for the business?


Breaking From the Herd

TOMORROWTODAY

Static Post-Campaign Analysis

Ongoing Reads

High Level – TotalCampaign Level Results

Read All Actionable Drivers / Elements

Siloed Reads Cross-Channel, Platform, Publisher Measurement

Only Big Campaigns Portfolio View: No Campaign Size Limitation


Pepsi’s Brand & Media Priorities

• Optimize digital campaigns in “real time” through measurement of performance:

‒ Publisher‒ Creative‒ Ad Type‒ Target Group

• Determine if digital campaigns are driving penetration, buy rate or both

• Utilize results to add context to marketing mix results


Process

1

Evaluate Potential Suppliers

2 Choose IRI Lift Solution

5

Expand to Additional

Brands/ Campaigns

3

Align Internal Organization & Media Agency

4Test & Learn• Piloted 3 campaigns

across 2 brands• Determined impact of

in-flight optimizations


How Does IRI Lift Work?

IRI Lift Assesses Media Performance by Linking Ad Exposure to Offline Sales at the Household Level

1: Collect Exposure Data 2: Match HH Databases 3: Create Test/Control Groups

4: Calculate Diagnostics 5: Run GLMM/ANCOVA Models 6: Project Lift to Total U.S./ROAS

Collect media exposure data at the household level via an IRI partner

Send exposure data to IRI matching partner to create a common HH ID and load into IRI Frequent Shopper Program sales database

Identify non-exposed households to comprise the control group matched to the exposed group on ProScores™ and category spend

Calculate descriptive statistics on media delivery and consumer behavior

Analyze uplift due to media exposure across key metrics such as sales, units, and visits via GLMM/ANCOVA methodology

Extrapolate uplift to the total United States from sample population via a projection factor and calculate ROAS

Exposed HHs IRI FSP HHs Test HHs Control HHs


CAUSAL VARIABLES, Marketing and Non-Marketing, are Key to Accuracy and Granularity


Results are Decomposed into Drivers of Lift By a Multitude of Actionable Dimensions and Reads Provided Weekly


Pepsi’s Brand & Media Priorities

• Optimize digital campaigns in “real time” through measurement of performance:

‒ Publisher‒ Creative‒ Ad Type‒ Target Group

• Determine if digital campaigns are driving penetration, buy rate or both

• Utilize results to add context to marketing mix results


Which Publisher performed best?

15.0%

7.7%9.0%

11.6%

Dollars per HH Lift

Publisher 1 Publisher 2 Publisher 3 Publisher 4

Cost per ImpressionsPublisher 1 Publisher 2 Publisher 3 Publisher 4

$4.12 $11.15 $3.76 $5.99


Which Ad Type performed best?

6.6%

11.4%

6.1%

Dollars per HH Lift

Custom Standard Banner Video


Which Target Group performed best?

28.3%

13.4%

Dollars per HH Lift

Brand Loyalists Brand Switchers


Did Campaign drive penetration, buy rate or both?

18.4%

11.2%

0.0%

6.4%

36.5%

9.5%

18.2%

5.5%

Dollars Per Household Penetration Dol Per Occasion Occasions

Brand A Brand B

Objective for Brand A campaign was to drive buy rateObjective for Brand B campaign was to drive penetration


7.4%

9.1% 9.2%

14.1%

9.0%9.7%

12.0%

15.4%

Did Campaigns Get Stronger Over Time? Sub Line 2

Sub Line 1

Read 1 Read 2 Read 3 Read 4

Sales Lift by Read


Integration with Marketing Mix

MARKETING MIX IRI LIFT

Marketing Mix informs on what channels worked from a macro level

Case Study ResultsA digital video campaign historically performed average from an ROI perspective but had strong effectiveness

IRI Lift can add the lens of why those channels worked and how to make them stronger

Case Study Results• Within this campaign, Video Publisher A

had a high CPM while Video Publisher B had lower CPM, but both had comparable effectiveness

• Shifting impressions to Publisher B should not compromise effectiveness, increase ROI


Organizational Success


Strategies for Success: Key Takeways

Invest in Measurement

to Keep Pace with Innovation

Develop a Strategic Learning Agenda Upfront

Experiment with Leading

Edge Techniques

Go for Broader

Portfolio Coverage

Align on Actionable Speed and

Granularity Standards

Needed

Set-Up the Organization

and Partners to Leverage the

Change


What Challenges Still Exist?

Questions?

Thank You!

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