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Sales Impact of Online Advertising
for a Dairy Product
GfK Media Efficiency Panel
Yahoo! Research
All data from one source

Single source panel: A worldwide unique panel for performance
analysis of FMCG campaigns




                                            Sales Data
                                              (home-
                                             Scanning)




            TV                                                             Internet
        (Audio Sound                                                       (Browser
          Matching)             Consumer
                                            Print Media                     Plug In)
                                                (MA
                                           questionnaires)




                                 MEP
                                                Yahoo! Deutschland | GfK Panel Services   5/16/2011   2
Total campaign: TV has the largest budget
share
Viewed media and time periods                                                                      Gross spendings by medium
                                                                                                   in million €
                            Television*
                            classic TV spots
                            (01.10. – 28.11.2010)

                                                                                                                                                      0.42 €
                                                                                                                                                                 16%
                            Print*/**
                                                                                                            1.98 €      2.60 Mio €
                            full-page ads
                            (01.11. – 19.12.2010)                                                                                                 0.21 €
                                                                                                                                                                 8%
                                                                                                       76%

                            Internet
                            standard advertising &
                            mail roadblock in the
                            Yahoo! Network                                                                   Television*              Print*            Internet

                            (01.10. – 06.12.2010)
• Target group: People aged 14 and over

         * Source: Thomson Media Control; ** Analyzed print placements: Bild der Frau, Brigitte,            Yahoo! Deutschland | GfK Panel Services            5/16/2011   3
         Stern, Tina Koch & Backideen, Freundin, Für Sie, Öko-Test
Online advertising boosts sales by 50%,
more than any other media
Uplift factors by media channel
Average increase in the number of purchases in terms of households with contact vs.
households without contact (= 1.0)




                                                                                             1,49



                        1,10                                                                                                             1,09

                                                                                                                                         not
                                                                                                                                     significant!




                 Benchmark:                                                           Benchmark:                                    Benchmark:
                    1,17                                                                 1,40                                          1,13


                   Television                                                             Internet                                       Print



      When viewing all contacts, the uplift factor for the Internet even increases by 2.13 or even 2.18.   Yahoo! Deutschland | GfK Panel Services   5/16/2011   4
One in three buyers of the advertised
product is a new buyer
Proportion of new and repeat customers of the product
Period: purchase 6 months before or after start of campaign




                                 32.3




          67.7




    new buyer houshold   repeat buyer houshold




                                                       Yahoo! Deutschland | GfK Panel Services   5/16/2011   5
Each Euro used for online advertising
brings EUR 0.16 sales in the short term
Short-term return on investment (ROI) by media channel
additional revenue/ gross expenditure


                                                         Short-term effects! Due to high number
                                         0.16             of loyalty shoppers long-term effect
                                                          expected to be significantly higher.




                     0.11

                   51,0




                Television              Internet                                  Print*




       * No effect measurable                      Yahoo! Deutschland | GfK Panel Services   5/16/2011   6
Three percent of sales are directly to due
  to the campaign
  Sales decomposition: breakdown of sales by component
  in %

       Internet
          0.4
3,0   Television                          Additional revenue through advertising
         2.6              Promo
                           15.4                                                      14%

                                                                            33,965 $




                          Loyalty                                242,549 €
                           66.4



                                                           208,584 $
                                                   86%


                           Base
                           15.3                        Internet                  Television

                   Total Revenue = 100%


                                                 Yahoo! Deutschland | GfK Panel Services      5/16/2011   7
Summary
• Although TV is the dominant medium of the campaign, additional people
  can be reached via print and online advertising..

• One in three buyers of the advertised product is a new buyer. The campaign
  thus opens up new markets..

• The number of purchases is increased more by online advertising than by
  all other media..

• The short-term return on investment for online advertising is 0.16 –
  significantly higher than for television advertising..

 Advertising in traditional media is necessary to build up campaign range,
 but a higher budget share for online has a positive effect on sales...

 The direct effect of online advertising on sales is clearly proven.



                                                                               8
Thank you!



             Bernd Vehlow
             Senior Trade Research Manager

             vehlow@yahoo-inc.com
             Tel: +49 (0)89 23197-151
             Mobile: +49 (0)162 288 99 34

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Yahoo! Germany MEP Study Dairy Product (English)

  • 1. Sales Impact of Online Advertising for a Dairy Product GfK Media Efficiency Panel Yahoo! Research
  • 2. All data from one source Single source panel: A worldwide unique panel for performance analysis of FMCG campaigns Sales Data (home- Scanning) TV Internet (Audio Sound (Browser Matching) Consumer Print Media Plug In) (MA questionnaires) MEP Yahoo! Deutschland | GfK Panel Services 5/16/2011 2
  • 3. Total campaign: TV has the largest budget share Viewed media and time periods Gross spendings by medium in million € Television* classic TV spots (01.10. – 28.11.2010) 0.42 € 16% Print*/** 1.98 € 2.60 Mio € full-page ads (01.11. – 19.12.2010) 0.21 € 8% 76% Internet standard advertising & mail roadblock in the Yahoo! Network Television* Print* Internet (01.10. – 06.12.2010) • Target group: People aged 14 and over * Source: Thomson Media Control; ** Analyzed print placements: Bild der Frau, Brigitte, Yahoo! Deutschland | GfK Panel Services 5/16/2011 3 Stern, Tina Koch & Backideen, Freundin, Für Sie, Öko-Test
  • 4. Online advertising boosts sales by 50%, more than any other media Uplift factors by media channel Average increase in the number of purchases in terms of households with contact vs. households without contact (= 1.0) 1,49 1,10 1,09 not significant! Benchmark: Benchmark: Benchmark: 1,17 1,40 1,13 Television Internet Print When viewing all contacts, the uplift factor for the Internet even increases by 2.13 or even 2.18. Yahoo! Deutschland | GfK Panel Services 5/16/2011 4
  • 5. One in three buyers of the advertised product is a new buyer Proportion of new and repeat customers of the product Period: purchase 6 months before or after start of campaign 32.3 67.7 new buyer houshold repeat buyer houshold Yahoo! Deutschland | GfK Panel Services 5/16/2011 5
  • 6. Each Euro used for online advertising brings EUR 0.16 sales in the short term Short-term return on investment (ROI) by media channel additional revenue/ gross expenditure  Short-term effects! Due to high number 0.16 of loyalty shoppers long-term effect expected to be significantly higher. 0.11 51,0 Television Internet Print* * No effect measurable Yahoo! Deutschland | GfK Panel Services 5/16/2011 6
  • 7. Three percent of sales are directly to due to the campaign Sales decomposition: breakdown of sales by component in % Internet 0.4 3,0 Television Additional revenue through advertising 2.6 Promo 15.4 14% 33,965 $ Loyalty 242,549 € 66.4 208,584 $ 86% Base 15.3 Internet Television Total Revenue = 100% Yahoo! Deutschland | GfK Panel Services 5/16/2011 7
  • 8. Summary • Although TV is the dominant medium of the campaign, additional people can be reached via print and online advertising.. • One in three buyers of the advertised product is a new buyer. The campaign thus opens up new markets.. • The number of purchases is increased more by online advertising than by all other media.. • The short-term return on investment for online advertising is 0.16 – significantly higher than for television advertising..  Advertising in traditional media is necessary to build up campaign range, but a higher budget share for online has a positive effect on sales...  The direct effect of online advertising on sales is clearly proven. 8
  • 9. Thank you! Bernd Vehlow Senior Trade Research Manager vehlow@yahoo-inc.com Tel: +49 (0)89 23197-151 Mobile: +49 (0)162 288 99 34