The document discusses the golden rules of measuring CPG advertising performance. It summarizes key principles such as optimizing for single exposures over frequency, measuring across the total ROI funnel, choosing the right measurement tools, evaluating both creative and media, selecting the proper metrics, accounting for purchase cycles, and understanding earned versus organic social media. Native advertising is also highlighted as being more impactful than traditional ad formats. The presentation was given by representatives from IRI and InsightExpress.
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
Golden rules tmre
1. The Golden Rules of Measuring
CPG Advertising Performance
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
Client Logo
Goes Here
1
2. An Introduction to Today’s Presenters
Phil Ripperger, Vice President New Media Solutions, IRI
IRI is a leader in delivering powerful market and shopper information,
predictive analysis and the foresight that leads to action.
Marc Ryan, Co-CEO, InsightExpress
InsightExpress a leading provider of media analytics and
marketing accountability solutions for brand marketers
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
2
3. Golden Rule:
Frequency is crabgrass
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
3
4. “Frequency – contacting one consumer three
times with a message, is not as good as reach –
contacting three consumers once, because that
one consumer will be far less likely to need that
product than any of the other three.”
- Erwin Ephron
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
4
5. Diminishing Returns on Upper Funnel
• Upper funnel metrics move
the most at a single
exposure.
3.0%
• Multiple exposures has less
of a net benefit to the
brand than does finding an
unexposed viewer.
Lift in Brand Awareness
2.0%
57%
54%
46%
1.0%
29%
7%
0.0%
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
5
6. Oversaturated Returns on Lower Funnel
• Lower funnel metrics move
sparingly at most frequency
levels with the exception of
the highest bounds.
• Seeking out 16+ exposures
may not be worth the
expense vs. finding new
viewers.
Lift in Message Association
3.0%
2.0%
108%
69%
54%
1.0%
35%
0.0%
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
4%
6
7. Golden Rule:
Measure the Multiple Return Objectives
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
7
9. Digital channels have disrupted consumer behavior and the traditional path-topurchase
Opens Shopkick app and checks in
Back to
computer to
check retailer
ads
Grabs phone to
add baby
items to
shopping
list app
Consumer
watches Beyonce
video that one of
her friends liked
on Facebook
at Target; excited to use coupons
she printed when directed to
Healthy Essentials website
7
5
9
3
8
1
6
4
2
Sees ad online
while reading
entertainment
content
Checks
“Just for U” app for
coupons; nothing
relevant
Completes list
and chooses
Purchase
made
from
Target
Cartwheel
At back yard
barbecue
posts picture
on Instagram
“#PepsiNext
rocks”
because a pop-up
appeared with a
customized
shopping list
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
9
10. Advertising Effect is Multi-dimensional
The complete picture of
how advertising works is not
always apparent by isolating
your measurement to one
part of the Total ROI funnel.
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
10
11. Peanut Butter Example
Unaided Awareness
25.0%
23.4%
22.5%
23.3%
20.3%
20.0%
18.1%
16.1%
14.1%
15.0%
13.9%
14.6%
12.4% 12.8%
10.8%
10.0%
10.0%
7.1%
6.9%
5.0%
0.0%
Control Online Print
ONLY ONLY
Radio
ONLY
TV
ONLY
Online Online Online TV +
+ TV + Print + Radio Print
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
TV + Print + TV + Online Online Online
Radio Radio Print + + TV + + TV + + TV +
Radio Print Radio Radio +
Print
11
12. Peanut Butter Example
Dollars/Household
ROI Calculation
Δ = 0.13
$0.13 / household
15,354,298 households
$1,966,059 sold
$2,116,500 media cost
$0.94 ROI
$1.03
$1.16
Un-Exposed
Exposed
Penetration
Occasions
+23%
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
Dollars/Occasion
-7.1%
12
13. Golden Rule:
Choose the Right Measuring Stick
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
13
14. Single Source vs. Models
Single Source Measurement
Modeled Measurement
• Pros:
• Pros:
•All media and sales effect attributable
at a viewer level – no guessing.
•Most media and behavior can be
incorporated.
•Quick turnaround on results and data.
•Few restrictions on what brands or
media are measurable.
•Incorporates attitudinal measures.
• Cons:
• Cons:
•Not all media or behavior is
measureable at viewer level.
•Sample size constraints.
•Few intra-media effects.
•Long turnaround times.
•Doesn’t account for attitudinal results.
•Requires assumptions.
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
14
15. Modeled Measurement - Example
Matched Market Measurement
Modeling is appropriate for determining
sales lift:
•
•
•
•
•
Hispanic
Search Behavior
Consumables
Alcohol
Outdoor
• Brands saw positive volume sales lifts in
markets where they increased search
support, ranging from 1.0% to 4.2%, with
the average impact 3.1%
• Brands saw an average decline of -1.3% to
volume sales in markets where search was
dark.
Volume % Changes by Treatment – All 4 Brands
Dark
Heavy Up Search
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
15
16. Single Source Measurement – Example: Targeting & ROI
Client Context and Objective
Results over 12 weeks
• Long-standing food client introduced a product
extension within a very popular, health-oriented
category
• Objective: increase household penetration without
cannibalizing sales within the brand portfolio
6% increase in the household penetration
Solution
30% increase in occasions among exposed
targeted households
• The IRI household panel was used to identify
new brand buyers with a high propensity to
purchase the new product by identifying buyers
of:
– Similar products from competitive brands
– Products with similar properties within the
client’s brand
– Products with similar properties among
competitor brands
• Look-alike modeling was used to translate target
consumers from the IRI panel to the media
partner’s database
• IRI’s panel’s purchase data was used to measure
sales results post-campaign, evaluate ROAS
4.9% 5.2%
Household Penetration
1.15
1.50
Occasions
30% increase in the average dollar spend
per exposed buying household
$0.27
$0.35
Dollars/Household
Targeted Households
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
Control Group
16
17. Golden Rule:
Creative & Media
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
17
18. Creative’s effect on performance
Creative
75%
25%
Media
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
18
19. Case Study: Frozen Pizza
• Campaign Summary
• Initial, directional results are positive
• Dollars per household are up 13.3%, penetration was up 17.5% offset a small
decrease in occasions vs. the control.
• Creative Performance
•“Soccer” only creative clearly outperformed
Creative
Interim Period - Index to Total Targeted
Dollars/HH
Penetration
Occasions
$ per
Occasion
Buyer
Count
# IRI HHs
Exposed
44047 - Soccer (Only)
148
140
103
103
81
626
44049 - 14 Min (Only)
72
90
88
92
58
644
119
134
88
101
69
647
44051 - Obstacle (Only)
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
19
20. Creative Guidelines
• Keep it simple:
• Clutter within an ad often results in poor brand performance. This happen with competing messages in
smaller ad units, or a convoluted storyline in storyline ad units (video & online display).
• Logo size & presence is important:
• For static imagery Logos should be larger than 14% or the total image size. Having the logo present and
viewable in as many frames of a storyline ad unit (video & online display) greatly increases top of funnel
performance.
• Ad size is important:
• For static imagery, the advertisements size relates to brand impact. The larger the percentage of the
media devoted to imagery, the greater the chance of success.
• Human faces draw our attention:
• Leverage our built in gaze detection systems. Advertising with the presence of a human face performs
better than without. Faces also add an element of relatability.
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
20
21. Golden Rule:
Choose The Right Metrics
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
21
22. Metric Saturation
• For large brands many metrics reach a saturation point:
Quintile 1
Quintile 2
Quintile 3
Quintile 4
Quintile 5
Awareness:
1% to 58%
Awareness:
59% to 79%
Awareness:
80% to 91%
Awareness:
92% to 95%
Awareness:
96% to 99%
Average
Increase:
6.0%
Average
Increase:
3.9%
Average
Increase:
3.0%
Average
Increase:
0.7%
Average
Increase:
0.4%
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
22
23. Customer Success: ROI
IRI’s analysis of OTC Allergy medication digital campaign helped quantify impact of various digital campaign tactics
Client Situation
Results
• Client/agency team wanted to induce product trial and
usage occasions among allergy sufferers.
• A digital campaign was launched across healthoriented and reach-based sites to reach potential
buyers
• +13% in dollar sales, +6% increase in HH
penetration and usage occasions
• 1 point category share decline for major competitor
• $1.15 ROI
9.3%
5.8%
Solution
• IRI’s panel’s used to measure sales results postcampaign, evaluate ROI and prove the efficacy of
digital ads.
• Measure household penetration and usage occasion
changes post-digital campaign to determine sales
impact
• Analyze share changes differences between test branc
and competitive brands to understand sales shifts due
to advertising exposure
HH Penetration
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
1.3%
1.9%
New
Retained
-1.4%
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
-1.8%
Lapsed
Brand NonBuyers
Changes in buyer type
23
24. Golden Rule:
Don’t forget the Purchase Cycle
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
24
25. Measure Now vs. Later
Sales
Sales
Sales
Sales
Sales
Pre-Campaign
Sales
Sales
Campaign
Audience
Consideration
Sales
Sales
Post Campaign
Sales Measurement
Brand
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
25
26. Golden Rule:
Social is not Social
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
26
27. Offline Beer Sales Spikes Correlate to Key Social Moments
•
Beer brand baseline sales (in blue) demonstrate impact from typical advertising and in-store activity. Green
spikes demonstrate impact directly from social media activity… above and beyond typical communications.
These sales spikes correspond to the four social media events.
Beer Baseline Sales Model Fit
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
27
29. Back to the future on sponsorships
TV’s first advertisements
were all sponsorships where
the commercial content was
embedded in the program:
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
29
30. What is Native Advertising
Banner
Lower
Tourist
Resident
Citizen
Advertising Effect
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
Native
Higher
30
38. Summary
• Optimize Frequency for Single Exposures:
• Multiple exposures providing diminishing returns, as such an advertiser is always better off seeking an
unexposed individual.
• Measure the Multiple Return Objectives of Advertising:
• Ever ad performs differently at each of the levels of the Total ROI funnel. Bias towards comprehensive
measurement or you may have misleading conclusions.
• Choose the Right Tool for the Job:
• Not all advertising can be measured most effectively via models, similarly not all can be effectively measured
by single source data.
• Measure Both Creative & Media:
• Creative is the most important aspect of the media plan and often the least understood. Always measure
both to fully understand campaign impact.
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
38
39. Summary
• Choose the Right Metrics:
• Saturation can result in some metrics being less useful than others. Pick the metrics that matter for the size of
the brand.
• Not all Measurement Needs to Happen in Real Time:
• In particular, sales effect is greatly influenced by purchase cycles. Measure at an appropriate interval to see
the effect on the metric under measurement.
• Understand Earned vs. Organic Social Media:
• Social media is rarely social these days, it’s another broadcast medium. Understand the appropriate metrics
to gauge the earning potential of your media activities.
• Push the Creative Boundaries:
• Native advertising is more impactful than typical creative types. Explore emerging Native platforms to scale
media efforts with less overhead.
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
39
40. Thank You.
Any Questions?
Phil Ripperger
Marc Ryan
VP New Media Solutions
Co-CEO
IRI
InsightExpress
(203) 845-6471
(203) 406-3220
phil.ripperger@IRIWorldwide.com
mryan@insightexpress.com
Confidential and Proprietary – Not for Public Distribution – Do Not Copy
40