Imna Media efficiency Panel Handout

GfK Consumer Tracking INMA European Conference, Media Efficiency Panel October 2011

Laurent de GroofGfK Netherlands

Media Efficiency Panel MEPINMA Conference, Lissabon

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GfK Consumer Tracking INMA European Conference , MEP Media Efficiency Panel October 2011

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Adspend Newspapers and Magazines in decline in US, UK,

Germany and the UK!

UK

US

DE

0

100

200

300

400

Internet

UK

US

NL

DE

80

100

120

TV

0

2005 2006 2007 2008 2009 2010

80

2005 2006 2007 2008 2009 2010

UKUS

NL

40

60

80

100

120

2005 2006 2007 2008 2009 2010

Newspapers

UK

US

NL

DE

40

60

80

100

120

2005 2006 2007 2008 2009 2010

Magazines

Source: ZenithOptimedia - April 2011

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Is it wise to move your media budget from Newspapers andMagazines to Online and TV?

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Besides purchases also advertisement exposure is measured single source in the GfK Media efficiency Panel.

Purchases

Consumer

Purchases

Media usage: TV, Radio, Online, News papers, Magazines.

Electronic measurement

online and TV én purchases

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General Learnings: It is all about measured ROI !

Single Source

ROIEfficiency by

Media Channel

AdvertisingEffectiveness

MEP advantages

Measured purchases & contacts

Causality: Contacts

Limitations

Online @ home only

Interactioneffects

between MediaChannels

Causality: Contacts before buying

Split of Online Channels & Formats

Benchmarks of 98 Studies

Interferring variables cleaned

Actionable Insightsfrom an independent Partner

Feasibility of smallBrands/ campaigns

No Long Term effects

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93 93 91107 112

Light travel buyers - index vs NL 18+

105115

188

110 102

Heavy travel buyers - index vs 18+ NL

11199

8698 99

Medium travel buyers - index vs 18+ NL

Heavy travelers read more often “De Volkskrant”Travel category buyers

Algemeen Dagblad

De Telegraaf

De Volkskrant

Metro Spits Algemeen Dagblad

De Telegraaf

De Volkskrant

Metro SpitsAlgemeen Dagblad

De Telegraaf

De Volkskrant

Metro Spits

Source: GfK Media Efficiency Panel - November 2010 until January 2011

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111

75

131

58

Supermini buyers - index vs NL 18+

41 41

147 146 142

Family Car buyers - index vs 18+ NL

139

161

59

35 34

SUV/ MPV buyers - index vs 18+ NL

Drivers of supermini’s (small cars) more often read “Spits”. And

under the SUV buyers you have 61% more “Telegraaf lezers”.Automotive category buyers

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Algemeen Dagblad

De Telegraaf

De Volkskrant


De Telegraaf

De Volkskrant


De Telegraaf

De Volkskrant

Metro Spits


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49.7% 48.9%

36.1% 35.3%

Reach news websites

ad.nl telegraaf.nl nu.nl metronieuws.nl spitsnieuws.nl

Duplication Between old and new Media

20.8%

31.3%34.0% 33.1%

23.1%

29.6%

32.7% 33.4%

27.5%

33.7%

28.9%

36.1% 35.3%

1.1% 1.8% 1.3%

4.2% 4.7%2.7% 3.6% 3.2%

4.7% 5.5%

NL 18+ AD readers Telegraaf readers Metro readers Spits readers


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GfK Consumer Tracking INMA European Conference Media Efficiency Panel September 2011

It is all about ROI !

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Calculation of effect and efficiency

Sales impact = Sales impact on exposed group

- Sales impactunexposed group

Effectiveness Sales impact x Reach=

EfficiencyBudget

Effectiveness=

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� Number of advertising contacts of the

household before buying (with focus

brand and competition)

� Promotion activities (of the focus brand

and the competition) in the shop at the

point of sale

Media Impact Modelling: Logistic regression Marketing Mix Evaluator (MME)

� In order to quantify the media impact a

logistic regression analysis is used.

This is a mulitvariate, non-linear

regression-method for dichotomous

events.

� The drivers for the buying decision

� Integration of loyalty to the focus brand,

e.g. was the focus brand already bought in

a defined pre-period

� Control variables: sociodemographics of

household (age, income, household size )

� The drivers for the buying decision

for the focus brand are determined.

� Individual circumstances of a

household are considered for each

shopping trip

Contacts before buying (x weeks) X Delta Uplift per contact class X Delta Brand Spend

Formula =

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GRPs of the Campaign of 98 MEP Studies

Online still plays a minor role in the Media Mix.Due to lack of efficiency?

680

474137

117

SEM**Video**Banner**PRINTTV

min=92max=2201

min=5max=272

min=5max=160

min=5max=119

**exposure in home only

min=1max=202

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BEST OF: Short Term Gross ROI of paid digital media

Short term ROI differ by media channel.But Media Channel specific Gross – Net differences have to be considered

Based on 98 Studies (GfK Media Efficiency Panel)Online = minimal effects due to @home coverage only

1,22

0,710,68

2012: Differentation of Benchmarks by Format, Category

0,31

0,43

0,22

0,68

0,27

SEM**Video**Banner**PRINTTV YouTube only Facebook

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Content relevant

placement scores

superior to reach

portals

Involving / attention-

getting content is

key: Impression

works !

Positive interaction

effects of TV & Digital

Moving Images if

Message is integrated

across Media

channels

TV Reach Online ROI is less

BEST OF ROI: CharacteristicsBased on 98 Studies (GfK Media Efficiency Panel)

TV Reach

Maximization / Beat

Diminishing Returns

Effect (average: 25%

incremental reach per

online campaign

versus TV)

Bigger brands get

higher ROI

(Ratio Turnover /

Spendings >5)

Online ROI is less

driven by Budget

level but more

important is format,

message and

placement

Customer Value

(Brand Affinity) of

Consumers reached

with Online is above

average

Longer campaigns

superior to shorter /

boosted campaigns

as more purchase

decisions can be

influenced

Online Impact is NOT

limited to younger

consumers

Online generates

more sales impact on

Loyal buyers than

New Buyers

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Success Characteristics of Best scoring banners (Gross Short Term ROI)

ROI top (10) scoring banners:

0.68 – 1.23

0.31

1.22

0.71

0.430.22

0.66

0.27

FacebookSEMYouTube only

Video (incl YT)

BannerPrintTV

Success Factors / Characteristics:

1) The more the movement, the better the ROI

2) Positive synergy effects (traffic channeling to homepage / coupons)

3) High importance of content relevant placements

only(incl YT)

4) Over proportionally successful in age group 20-39 years

5) Frequency cap up to max 2 contacts per week

Based on 98 Studies (GfK Media Efficiency Panel)

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Success Characteristics of Best scoring videos (Gross Short Term ROI)

ROI top (10) scoring videos:

0.86 – 1.61

0.31

1.22

0.71

0.430.22

0.66

0.27

FacebookSEMYouTube only

Video (incl YT)

BannerPrintTV


1) Separate creation, not just playing TV Spot

2) Over proportionally successful in age group 15-45 years

3) Involving -> Awareness -> high impact on Sales

only(incl YT)

4) Synergy Effects with TV Campaigns if message is aligned (up to 90%)

5) High impact on sales with TV Low Viewer

6) Margin utility curve by contacts per week shows optimum with 3 contacts

7) Decay Rate of Videos in average comparable with TV Decay Rate (measured)

8) Catch up Formats show above average sales impact


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Success Characteristics of Best scoring SEM ads (Gross Short Term ROI)


1) Search AdImpressions sell FMCG short term (cleaned by loyalty)

2) Generic Search matching with general & specific interests of Brand Target Group sells as well.

3) Traffic generation (generic / branded)

0.31

1.22

0.71

0.430.22

0.66

0.27

Banner YouTube only

Video (incl YT)

Print FacebookSEMTV

ROI top (10) scoring SEM ads:

1.25 - 4.22

3) Traffic generation (generic / branded) essential for website efficiency

4) Prerequisite: Website landing page offers highly relevant content

5) Over proportionally successful 30-49 years

6) TV/Online campaigns increase Search by approx 25%

7) Generic Search Words must link with Homepage content

only(incl YT)


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Success Characteristics of Best scoring Facebook ad (Gross Short Term ROI)

0.31

1.22

0.71

0.430.22

0.66

0.27

BannerPrintTV FacebookSEMYouTube only

Video (incl YT)


1) Low Uplift due to Text Ad format combined with low cost leads to average ROI

2) Brand messages must be interesting and new to generate buzz

3) New Launches rather more efficient only(incl YT)


3) New Launches rather more efficient than established brands

4) Viral contacts & Fan Site contacts sell as well FMCG

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Success Characteristics of Best scoring TV ads(Gross Short Term ROI)

0.31

1.22

0.71

0.430.22

0.66

0.27


Video (incl YT)

ROI top (10) scoring TV ads:

0.52 – 1.11


1) Highest ROI with New Launches & Event announcements

2) Positive Interaction with parallel Video campaign

3) Sales Impact on New Buyers > Repeat Buyers (Short Term!)only(incl YT)


Buyers (Short Term!)

4) Need to renew Base TV commercials as wear out tends to accelerate

5) Ratio Turnover Brand/ TV Spendings should be > 5

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Best scoring Print Ads(Gross Short Term ROI)

0.31

1.22

0.71

0.430.22

0.66

0.27


Video (incl YT)

ROI top (10) scoring Print Ads:

0.66 – 1.75


1) TZ Ads with Coupons show hightestROI

2) Hightest impact on Consumers with Brand Affinity

3) 20% of all Print contacts are exclusive on top of TV (50+)only(incl YT)


on top of TV (50+)

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Learn-Test-LearnBase your decision on Hard Facts

What have we learned for the future today?

Fact based Cross Media Strategies help to maximize ROI’s

!Focus on ROI but add Image & recognition to

understand better

!

Link Online & Offline Planning

together

!Use „What if“

Simulations to find optimal spending

level

!

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If you leave your business card, the full presentation will besend to you this week!

Laurent de GroofManaging Consultant

Tel: +31-(0)162-384 363E-mail:

[email protected]@gfk.nl

Imna Media efficiency Panel Handout

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