How To Use TV Advertising To Produce (and Reduce) Profit, David Poltrack

ARF/SIMULMEDIA ONLINE LIVESTREAM SESSION

How to use television advertising to produce profit

DAVID POLTRACKChief Research Officer, CBS CorporationPresident CBS Vision

ARF/SIMULMEDIA ONLINE LIVESTREAM SESSION

How to use television advertising to reduce profit

DAVID POLTRACKChief Research Officer, CBS CorporationPresident CBS Vision

Since the turn of the century, many advertisers have changed their media strategies:

• They have “leaned the television mix” reducing or eliminating altogether high reach primetime and other premium content from their buys.

• More recently, they have begun moving money from their television budgets to support their growing digital investment.

Two Concerning Trends

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How do these actions reduce profits?



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Source: Nielsen Monitor+ , Jan-Dec Totals; $10mm+ Annual Spend

Top CPG Categories Long Term Spending Patterns

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2000 2006 2013 2014

40%28% 22% 21%

24%

17%15% 15%

9%

15%20% 20%

27%40% 43% 44%

Cable Other

Cable Prime

Broadcast Other

Broadcast Prime

NATIONAL MEDIA SHARE-ANNUAL

How do these actions reduce profits?


• More recently, they have begun moving money from their television budgets to support their growing digital investment


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Television Dollars Moving To Digital

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“Regardless, investors and analysts appear to like hearing that marketers, particularly CPG companies once viewed as heavily dependent on traditional media, are moving more money into digital”

Formula For Profit Reduction

Assuming that the exposure of a consumer to an effective ad increases the likelihood that the consumer will buy the product or service being advertised, then…

– Reducing the number of consumers effectively reached by the advertising campaign by cutting the reach-building, high-rated primetime portion of the campaign will reduce sales and profit.

– Stealing money from an effective television advertising budget to fund new digital efforts will result in a lower contribution to sales and profits coming from the smaller television component of the marketing effort.

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• How Do You Define “Effective”?• Is My Campaign “Effective”?

The Measurement Issue

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• How Do You Define “Effective”?• Is My Campaign “Effective”?

The Measurement Issue

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DELIVERS A POSITIVE ROI

The Current Scenarios:

• TV Advertising is Effective (Delivers a Positive ROI)


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The Current Scenarios:

• TV Advertising is Effective (Delivers a Positive ROI)• Sales from Digital – Lost Sales from Television


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The Current Scenarios:• TV Advertising is Not Effective (Does Not Deliver a Positive ROI)

• Why?• Messaging/Creative?• How Will That Impact Digital?


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CAMPAIGN PERFORMANCE AUDIT

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Campaign Program Audit Components

Step 1: Test Your Message

Step 2: Maximize Your Weekly Reach

Step 3: Get the Most out of “Recency”

Step 4: Precisely Target Your Customers

Step 5: Assess Your Context

ARF Re:Think 2015 PLATINUM PRESENTATION:

Who doesn’t need a good CPA?CAMPAIGN PERFORMANCE AUDIT

Tuesday, March 17, 2:00pmMain Stage Grand BallroomPresenters: David Poltrack/Leslie Wood

This past fall, CBS introduced the CPA, Campaign Performance Audit, a multistage program for measuring the effectiveness of a marketer’s television advertising. The CPA utilizes a full complement of Nielsen analytics to plan, execute and evaluate each television strategy from the creation of the ad to the calculation of the total ROI of the campaign.

Television advertising, done right, is the most effective marketing medium.

Are you doing television right?Learn how our CPA can answer that question for you and your top management.

PLATINUM PRESENTATION:

Long Term Effects of Television Advertising

LESLIE WOODChief Research Officer, Nielsen Catalina Solutions

How To Use TV Advertising To Produce (and Reduce) Profit, David Poltrack

Marketing

Transcript of How To Use TV Advertising To Produce (and Reduce) Profit, David Poltrack