Five Keys To Advertising Effectivenes

Lucio Ribeiro
Lucio RibeiroPartner Founder um Lucio Ribeiro
Five Keys To Advertising Effectiveness
Nielsen examined 863 campaigns that ran on both linear TV and digital platforms and were tagged by Nielsen
Total Audience Ratings (TAR) and Nielsen Digital Ad Ratings (DAR). These included ALL cross- media campaigns
that ran in Q4, 2016 and Q1, 2017, regardless of vertical or television network. While the intended targets for
these campaigns varied, the reach curve for these analyses are shown for people 13+
This research represents the most comprehensive analysis of the television/digital advertising landscape to
date, quantifying the sales contribution of the five key drivers of advertising’s effectiveness—creative, reach,
targeting, recency and context—and how the relative balance has changed over time
KEY TAKEAWAYS:
1. As in 2006, creative quality is the most important factor for driving sales, but most likely due to
new breakthroughs in data and technology, media is playing a much larger role than before.
2. Less than half of all campaigns are doing a good job of targeting buyers of the brand or category
— 80% of TV campaigns are On-Buyer Target and 31% of digital campaigns are On-Buyer Target.
3. TV ads generally have consistently high quality creative—as opposed to digital ads, which have a
wider range of quality, including both much higher and much lower.
4. For large cross media campaigns, reach still comes primarily from television.
5. Understanding consumer purchase cycles and timing advertising closer to purchases can boost
sales dramatically.
Five Keys To Advertising Effectivenes
Creative
Creative
Creative quality is still is the most important factor for driving sales. But thanks to new breakthroughs
in data and technology, media is playing a much larger role than ever before, especially on television,
where creative quality has become very consistent.
When we focus on TV campaigns in our study (both linear and addressable), the contribution from
creative is substantially lower (37%) than the contribution from media (50%). On the other hand, for
the digital campaigns in this study, the contribution from creative is much higher (56%) than the
contribution from media (30%), with very consistent results across video, display and mobile
campaigns
In the case of digital campaigns, the gap between really good and really bad ads remains significant.
Creative
Targeting
Less than half of all campaigns are doing a good job of reaching
category or brand buyers.
When a campaign is Off-Buyer Target, creative has to work even
harder to drive sales.
Targeting
Reach
For cross media campaigns, reach still comes primarily from
television. It may seem obvious, but reaching a large number of
consumers with advertising is critical to the success of a
campaign: only consumers exposed to an ad can be influenced.
The average reach of the TV portion of a typical cross media
campaign is 58% of the target, vs. 2% for the digital portion.
Only when digital campaigns are “large,” meaning reach that is
greater than 60%, do we see that digital does sometimes add
incremental reach.
Reach
Recency
Understanding consumer purchase cycles and timing
advertising closer to purchases can boost sales dramatically.
For products most often bought on a Saturday or Sunday,
advertising on Thursday or Friday has a dramatic effect on
sales. Advertisements that run on Thursdays outperform
Fridays (3.5× vs. 2.3×), but together they deliver almost three
times more incremental sales lift than ads running on other
days of the week.
Recency
Thank you!
Lucio Ribeiro
1 von 14

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Five Keys To Advertising Effectivenes

  • 1. Five Keys To Advertising Effectiveness
  • 2. Nielsen examined 863 campaigns that ran on both linear TV and digital platforms and were tagged by Nielsen Total Audience Ratings (TAR) and Nielsen Digital Ad Ratings (DAR). These included ALL cross- media campaigns that ran in Q4, 2016 and Q1, 2017, regardless of vertical or television network. While the intended targets for these campaigns varied, the reach curve for these analyses are shown for people 13+ This research represents the most comprehensive analysis of the television/digital advertising landscape to date, quantifying the sales contribution of the five key drivers of advertising’s effectiveness—creative, reach, targeting, recency and context—and how the relative balance has changed over time
  • 3. KEY TAKEAWAYS: 1. As in 2006, creative quality is the most important factor for driving sales, but most likely due to new breakthroughs in data and technology, media is playing a much larger role than before. 2. Less than half of all campaigns are doing a good job of targeting buyers of the brand or category — 80% of TV campaigns are On-Buyer Target and 31% of digital campaigns are On-Buyer Target. 3. TV ads generally have consistently high quality creative—as opposed to digital ads, which have a wider range of quality, including both much higher and much lower. 4. For large cross media campaigns, reach still comes primarily from television. 5. Understanding consumer purchase cycles and timing advertising closer to purchases can boost sales dramatically.
  • 7. Creative quality is still is the most important factor for driving sales. But thanks to new breakthroughs in data and technology, media is playing a much larger role than ever before, especially on television, where creative quality has become very consistent. When we focus on TV campaigns in our study (both linear and addressable), the contribution from creative is substantially lower (37%) than the contribution from media (50%). On the other hand, for the digital campaigns in this study, the contribution from creative is much higher (56%) than the contribution from media (30%), with very consistent results across video, display and mobile campaigns In the case of digital campaigns, the gap between really good and really bad ads remains significant. Creative
  • 9. Less than half of all campaigns are doing a good job of reaching category or brand buyers. When a campaign is Off-Buyer Target, creative has to work even harder to drive sales. Targeting
  • 10. Reach
  • 11. For cross media campaigns, reach still comes primarily from television. It may seem obvious, but reaching a large number of consumers with advertising is critical to the success of a campaign: only consumers exposed to an ad can be influenced. The average reach of the TV portion of a typical cross media campaign is 58% of the target, vs. 2% for the digital portion. Only when digital campaigns are “large,” meaning reach that is greater than 60%, do we see that digital does sometimes add incremental reach. Reach
  • 13. Understanding consumer purchase cycles and timing advertising closer to purchases can boost sales dramatically. For products most often bought on a Saturday or Sunday, advertising on Thursday or Friday has a dramatic effect on sales. Advertisements that run on Thursdays outperform Fridays (3.5× vs. 2.3×), but together they deliver almost three times more incremental sales lift than ads running on other days of the week. Recency