How To Use TV Advertising To Produce Profit, Television Effectiveness Summit with David Poltrack, Dave Morgan, and Bill Harvey

1. ARF/SIMULMEDIA ONLINE LIVESTREAM SESSION
How to use television
advertising to produce profit
DAVID POLTRACK
Chief Research Officer, CBS Corporation
President CBS Vision

2. ARF/SIMULMEDIA ONLINE LIVESTREAM SESSION
How to use television
advertising to reduce profit
DAVID POLTRACK
Chief Research Officer, CBS Corporation
President CBS Vision

3. 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
3

4. How do these actions reduce profits?
• They have “leaned the television mix” reducing or
eliminating altogether high reach primetime and
other premium content from their buys.
Two Concerning Trends
4

5. Source: Nielsen Monitor+ , Jan-Dec Totals; $10mm+ Annual Spend
Top CPG Categories Long Term Spending Patterns
5
40%
28% 22% 21%
24%
17%
15% 15%
9%
15%
20% 20%
27%
40% 43% 44%
2000 2006 2013 2014
Cable Other
Cable Prime
Broadcast Other
Broadcast Prime
NATIONAL MEDIA SHARE-ANNUAL

6. How do these actions reduce profits?
• 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
6

7. Television Dollars Moving To Digital
7
“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”

8. 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.
8

9. • How Do You Define “Effective”?
• Is My Campaign “Effective”?
The Measurement Issue
9

10. • How Do You Define “Effective”?
• Is My Campaign “Effective”?
The Measurement Issue
10

11. The Current Scenarios:
• TV Advertising is Effective (Delivers a Positive ROI)
Television Dollars Moving To Digital
11

12. The Current Scenarios:
• TV Advertising is Effective (Delivers a Positive ROI)
• Sales from Digital – Lost Sales from Television
Television Dollars Moving To Digital
12

13. The Current Scenarios:
• TV Advertising is Not Effective (Does Not Deliver a Positive ROI)
• Why?
• Messaging/Creative?
• How Will That Impact Digital?
Television Dollars Moving To Digital
13

14. 14
CAMPAIGN PERFORMANCE AUDIT

15. 15
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

16. ARF Re:Think 2015 PLATINUM PRESENTATION:
Who doesn’t need a good CPA?
CAMPAIGN PERFORMANCE AUDIT
Tuesday, March 17, 2:00pm
Main Stage Grand Ballroom
Presenters: 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.

17. PLATINUM PRESENTATION:
Long Term Effects of
Television Advertising
LESLIE WOOD
Chief Research Officer, Nielsen
Catalina Solutions