Marketing Metrics forDigital Retail MediaExperimental Design for Campaign Measurement

Bio

John MorganFounder and President

• 20-year career in media and marketing research

• Advertising, media, retail and technology expertise

• Former VP, Research & Shopper Insights at InStore Broadcasting

• Designed media planning systems at Nielsen IMS

• Media planner at Hal Riney & Partners

Overview

• Marketers are increasingly demanding accountability– Proof of performance– Consumer insights– Ad optimization– Return on investment

Digital Retail Media:A Perfect Laboratory

• Located at point-of-purchase• Can be interactive• Addressable• Low-cost production• Efficient• Category exclusivity

Experimental Designs for ROI Analysis

• Matched panel design– True experimental design that measures

the effect of an advertising variable compared to a control during two observation periods

• Latin square design– Used to measure the effect of multiple

advertising variables without the use of a control

Matched Panel Experiments

• A method for testing the effect of a campaign variable (advertising creative) on brand metrics (brand equity, purchase intent, sales) in a real-world environment

• Small scale testing minimizes the risk and costs associated with a full roll-out

Matched Panel Methodology

• Locations are matched on traffic, category sales, demographic variables

• Locations are grouped – Control cell (no advertising)– Test cell(s) (advertising variables)

• Sales are compared on a pre vs. post / test vs. control basis

Match!

Control Store

Test Store

Matched Panel Example:Convenience Store TV

• Product: Energy drink brand• Venue: Regional c-store video

network• Objective: Positive ROI• Measure: Net incremental

revenues (increased profit minus media and production costs)

Matched Panel Example:Convenience Store TV

Net

Rev

enue

s

Difference in Sales

Pre-Period Campaign-Period

+ $6,000

Matched Panel Example:Convenience Store TV

• Advertising ROI AnalysisNet Revenue Difference $6,000- Media & Production Cost $5,000= Return on Investment $1,000

Latin Square Experiments

• A method for testing the effect of multiple campaign variable (advertising creative) on consumer response without using a control

• Minimizes the number of venues needed for testing

A

B

C

Ad

Latin Square Methodology

• Locations do not have to be matched, but should be representative

• Each advertising variable is introduced in every test cell during a different period of time

• Customer response is measured for each combination of advertising variable and time

Latin Square Example

• Product: Checking account promotion for a national bank

• Venue: Doctor’s office waiting area video network

• Objectives: QR code scans direct to account application, new checking accounts opened

• Measures: Number of QR code scans

Latin Square Example:Comparing Outcomes

# QR Scans Week 1 Week 2 Week 3

Office I Creative A (15) Creative B (20) Creative C (10)

Office II Creative B (25) Creative C (15) Creative A (20)

Office III Creative C (20) Creative A (25) Creative B (30)

Total QR ScansCreative A: 60Creative B: 75Creative C: 45

Creative B is most effective!

John MorganFounder and President

Retail Media Insightsjohn@retailmediainsights.com

OUR SERVICES Audience Measurement and SegmentationAdvertising Sales and Marketing StrategyConsumer Insights for Content GuidanceAdvertising Campaign ROI Analysis

RESEARCH METHODSSyndicated Research SourcesMatched Panel AnalysesConsumer Intercept SurveysObservational Studies

CLIENTS WE SERVEAdvertisers and AgenciesMedia Network OperatorsRetailers and Venue OwnersInvestors

The Proof is in The Numbers

www.retailmediainsights.com