Dynamic Logic : Dynamic Logic Best Practices in Cross-Media Advertising Measurement Return on Marketing Investment 2005
The New Era of Accountable Marketing
January 2005 Outline: Outline Background On Dynamic Logic
Trends That Can No Longer Be Ignored
CrossMedia Measurement Overview
Media Synergy Case Studies
General Motors XUV
Cost Effectiveness Case Study
Philips Dynamic Logic Background: Dynamic Logic Background Founded in 1999
New York, London, San Francisco, Los Angeles, Chicago
Independent market research company
Focus on measuring marketing effectiveness
We have conducted studies for:
47 of the top 50 U.S. advertisers
Top US Agencies like Carat, FCB, JWT and Ogilvy
Major Media Companies like Dow Jones, AOL, Disney, Viacom, Yahoo!, Meredith
Millions of surveys and over 1600 studies in all as of Dec 2004 Dynamic Logic CrossMedia Experience: Dynamic Logic CrossMedia Experience We have conducted more than 75 CrossMedia studies to date for leading U.S. and European brands. Including 8 of the Top 10 Advertisers.
What People are Saying about DL Research: What People are Saying about DL Research "Developing CrossMedia research tools and insights is the number one research issue among advertisers today", said Bob Barocci, president of the ARF, "and we support unequivocally the intelligent work of Dynamic Logic, a premier marketing effectiveness research company, who has done more crossmedia studies than any other company."
Trends: Trends 'Frasier' Finale: Amid Nostalgia, A Product Plug “May 12, 2003. In tomorrow night's final episode of the NBC sitcom "Frasier," one guest star is crisp, sweet and inanimate -- and symbolizes the lengths to which marketers and media are going these days to capture consumers' attention.”
Magazine (TV Guide)
http://online.wsj.com/article/0,,SB108432262147108863-email,00.html Media Consumption : Total Media Audience By Daypart
At Work Users Media Consumption Source: Online Publishers Association/MBIQ Media Consumption Study, May 2003
Q. M1-2/M2-2/M2-5b/M3-2/M4-2: How much time did you spend on the following <media> yesterday between <daypart>? Base: At Work (1053) Radio Internet Television Newspaper
Multi-Tasking : Multi-Tasking 70% of consumers, at one time or another, use media simultaneously:
Radio: 57.3% simultaneously go online, 46.9% read newspaper and 17.7% watch TV.
TV: 74.2% read the newspaper simultaneously, 66.2% go online
Newspapers: 52.4% watch TV and 49.6% listen to radio
Online: When waiting to download something 52.1% listen to radio, 61.8% watch TV, and 20.2% read the newspaper. Source: The Media Center and BIGresearch Oct 2003 Survey, n=13,414
Does this look like you?: Does this look like you? TV Radio Magazine Online Media Planning Organizational Structure Media and Marketing Trends We Can No Longer Ignore: Media and Marketing Trends We Can No Longer Ignore Media Fragmentation
Emergence of digital and “new” media
Clutter and consumer push back
Time-shifting and commercial avoidance
The “A” word
Demand For Branding Measurement: Demand For Branding Measurement "We need a method to determine the effectiveness of our efforts. We need to measure
how effective our advertising is at influencing purchase intent -- the ultimate goal.”
“We must find a way of measuring holistic marketing...I see e-mails every week on better
decisions we're making because of [marketing-mix modeling]," Mr. Stengel said. But while
marketing mix does a ‘great job of refining what you know’ he notes that the analysis still
primarily looks at how each part of the mix works independently rather than at
optimizing how all parts work best together”.
Jim Stengel, Global Chief Marketing Officer, Procter & Gamble Source: Wall Street Journal, February 12, 2004 Cross Media and Holistic Measurement Today: MSS and CES: Cross Media and Holistic Measurement Today: MSS and CES Media Synergy Studies
What was the branding effect of the various media components? How well did they work together?
How did that differ across objectives and audiences?
Recommendations for improving integrated campaigns
Cost Effectiveness Studies includes the above, plus:
What was the ROI in various media and in combination?
Cost per impact
Return on Marketing Investment
Recommendations for optimizing budget allocation MSS: Synergy Focus
CES: Cost and Optimization Focus Slide13: The Hierarchy of Advertising Effects Brand Awareness
Measures the level of familiarity respondents have with the brand (aided and unaided) Message Association
Measures the extent to which respondents can match the message in the creative to the brand Brand Favorability
Measures the extent to which respondents have a positive or favorable opinion of the brand How do you measure where consumers are in the continuum? First, consumers need to be aware of a brand Then they need to understand the value to them, or what the product is used for The consumer forms an opinion about the brand Finally, the consumer considers whether he or she is likely to consume or use the brand 1. 2. 3. 4. Purchase Intent
Measures the likelihood of respondents to purchase the brand in the future CrossMedia Methodology: CrossMedia Methodology Respondents are recruited via web intercepts, reflective of the audience reached by the integrated campaign
Recruitment can be supplemented using phone interviews and subscriber lists
Cross-media measurement is based on opportunity to see (OTS) advertising
Reported media consumption data determines offline exposure opportunity
When Internet advertising is a component, electronic data is used as OTS measure
Comparison of brand attitudes of different respondent groups (cells) is made to determine impact of advertising campaign
Media Synergy Studies (focus on the media, audience, and combinations)
Cost Effectiveness Studies (cost and ROI focus, media mix)
Slide15: Cross Media Methodology: Schematic Control Magazine-
Only Web-Only NO Magazine Exposure Opportunity Web+
Magazine NO NO Web Exposure Opportunity NO Cell Assignment/Analysis: Cell Assignment/Analysis General Motors – Envoy XUV: General Motors – Envoy XUV GM was promoting the introduction of a new model of SUV, the Envoy “XUV” which has a special retractable roof. GM ran a multimedia campaign with TV, Magazine, Online and Out of Home There was a relatively heavy and targeted magazine schedule when compared to the other media.
Because TV ran first and with a relatively heavy weight our analysis focused on the combinations of other media in addition to TV. GM Envoy XUV Case Study – Sample Learning : GM Envoy XUV Case Study – Sample Learning It was somewhat surprising that the impact of Online Advertising seemed to impact Heavy TV viewers (over 25 hours per week) more than Light TV viewers (less than 7 hours per week) GM Envoy XUV - Persuasion Metrics (Magazines): GM Envoy XUV - Persuasion Metrics (Magazines) Brand Favorability, Purchase Consideration and Brand Attributes impacted the most by the addition of Magazines in the mix.
While we saw that all combinations of media impacted Brand Favorability positively – the biggest increase was seen by those exposed to TV and Magazine. In terms of purchase consideration, Magazine had the biggest impact when combined with TV – however even in this case the biggest lift still came from those exposed to all three media.
Slide20: Levi’s Case Study – Excerpt from ESOMAR, Geneva 2004 In the Summer of 2003 Levi’s Celebrated it’s 150th birthday with the launch of “Levi’s Type 1 Jeans”. Levi’s incorporated television, cinema, print and online (Yahoo!) to attract the 13-24 year old target. The media elements included:
Network TV: That 70’s Show, Friends, Will and Grace, and Saturday Night Live.
Cable: MTV, Fox Sports, and ESPN.
Magazines: Cosmopolitan, FHM, YM, Maxim and Vibe.
Cinema: Nationwide ran prior to feature films.
Online: Yahoo! Network
Levi’s Various Analysis Matrices: Levi’s Various Analysis Matrices Control TV + Print NO NO TV, Print + Online NO NO Cinema only Online only Cinema+Online Control NO NO TV + Print + Cinema TV, Print +Cinema + Online NO NO NO NO Cinema/Online TV+Print/Online TV+Print+Cinema/Online TV (with and without other offline) TV + Online Control NO NO NO TV/Online Control Levi’s TV+Print+Online: Awareness Metrics : Levi’s TV+Print+Online: Awareness Metrics Message Association Advertising Awareness Online advertising provided significant value in getting respondents to link the brand with the message
While TV+Print created a substantial increase in Ad Awareness; online did not add significant incremental value to this combination of media A/B/C = Statistically significant difference at a 90% confidence level n= 1210
C n= 1210
C Levi’s Cinema/Online: Female Target Audience: Levi’s Cinema/Online: Female Target Audience A/B/C = Statistically significant difference at a 90% confidence level
Purchase Intent (Females 18-24) n= 497
D In this example when looking at the female 18-24 target audience it appears that exposure to either cinema or online alone has little impact, but the combination of the two created the desired effect, lifting purchase intent by 8.7 points (17% lift) . Quaker Oats Case Study – Excerpt from ESOMAR, Geneva 2004 : Quaker Oats Case Study – Excerpt from ESOMAR, Geneva 2004 Online Magazine In August 2003, Quaker launched the Oatmeal Breakfast Squares – the first no bowl oatmeal. It unveiled a multi-platform program to present this product as the nutritious, hand held oatmeal ideal for the on-the-go lifestyle. Primarily targeting 35-54 year old adults. The media elements included:
Network TV: Third Watch, West Wing, Friends, Alias,Today Show, and Good Morning America.
Cable: Food Network, History Channel, TV Land, Sci-Fi, American Movie Classics.
Magazines: Good Housekeeping, Redbook, Southern Living, Newsweek, Time, Men’s Journal, and Jet.
Online: Yahoo! Network
Quaker: Awareness Metrics : Quaker: Awareness Metrics Unaided Brand Awareness (Quaker) Combination of all 3 media created strongest brand awareness metrics
After exposure to all three media, average Brand Awareness was at 76% Aided Brand Awareness n=2082
C AB AB A A/B/C = Statistically significant difference at a 90% confidence level Quaker - Target Audience: Cumulative Effect Of All Media Purchase Intent: Quaker - Target Audience: Cumulative Effect Of All Media Purchase Intent As with the awareness scores, online created a sizable increase Purchase Intent after exposure for those who have purchased a cereal bar within the last 3 months. Purchase Intent n=396
B AB A/B/C = Statistically significant difference at a 90% confidence level
*Purchased Cereal/Breakfast bar in the past 3 months Slide27: ESPN/J&J Case Study – Tylenol 8 Hour and the Weekend Warrior In May 2003, Tylenol launched a new product extension, Tylenol 8 Hour specially formulated for the extended relief of aches and strains associated with active pains. They partnered with ESPN to reach the critical “Weekend Warriors” men 18-34 who exercise. The media elements included:
ESPN Television Networks
ESPN the Magazine
ESPN Radio Slide28: * Control = 501, ESPNMedia = 243 ESPN/Tylenol 8 Hour Case Study: Overall Results Percentage % This particular study highlights the potential benefits of working with a dedicated media partner to pull together a program of various assets or channels. Cumulative means at least one exposure to each ESPN media: TV, Magazine, Radio and Online.
Minimal freq. = 4 Cost Efficiency Calculation: Cost Efficiency Calculation Spend in Medium or Media Combination Branding Effect x Target Reach Cost Per Person =
Branding Effect = Exposed minus Unexposed brand scores
Target Reach = Reach X Target market size
Media Mix Recommendations: Overall Spend and ROI Based Media Decisions: Media Mix Recommendations: Overall Spend and ROI Based Media Decisions Campaign Allocation Recommended Allocation Recommendations are provided for different objectives and target audiences Holistic Measurement:
ROMI, BCPP Dependent Variables: Branding Metrics: Dependent Variables: Branding Metrics Impact of various combinations of media on traditional branding measures
This data can complement brand tracking and media mix modeling Demonstration Data Brand Metrics by Media Channel: Brand Metrics by Media Channel A/B/C/D/E/F/G = Statistically significant difference at a 90% confidence level A
n=354 Pre-Control Online Print TV TV + Print TV + Online TV + Print + Online 0% 20% 40% 60% 80% 100% 39% 41% 35% 40% 51% 51% 59% ABCD ABCD A-DF Awareness by Media Exposure Question: Which of the following brands have you heard of before?
Exposure to two or more media was necessary to produce increases in “Awareness A” Metric Results: Cost Per Person $$$Dollars Indexed to Average of Media Sums (100): Results: Cost Per Person $$$ Dollars Indexed to Average of Media Sums (100) Television was generally ineffective when working by itself
Print advertising was extremely cost-effective in this campaign, alone and in combination
Online advertising alone was not cost efficient, but delivered good results when working with other media
Combination of all media (TV+Print+Online) was cost efficient and had highest overall reach CrossMedia Learning: Magazines, Television, and Online: CrossMedia Learning: Magazines, Television, and Online Effect of Medium on Brand Metrics Average Percentage Point Increase over Unexposed Baseline in 8 CrossMedia Campaigns Average Delta Increase (Percentage Points) Excerpt: Good News for Magazines - By Wayne Eadie, SVP Research for MPA
“Importantly, they show that...magazines increase advertising ROI. The Dynamic Logic results support prior studies that speak to how magazines add value to the mix, specifically in their ability to influence purchase behavior.” Think of the CrossMedia Challenge Like a Cake: Think of the CrossMedia Challenge Like a Cake The Right Ingredients:
Don’t Guarantee the Best Results: Think of the CrossMedia Challenge Like a Cake: You need the right MEDIA PROPORTIONS:
1 ¼ cups 2 1 stick 2 cups 3 oz. 1 tsp. 2 tsp. 1 cup MEASUREMENT makes it work! Think of the CrossMedia Challenge Like a Cake Thank You! : Thank You! Tom Deierlein
Chief Operating Officer
WIFM: Measurement Breeds Success: WIFM: Measurement Breeds Success “Companies that measure marketing results increased their annual marketing budgets an average 11.2% this year, while companies that don’t measure marketing results increased their budgets by only 6%.”
B to B Magazine, March 8, 2004. Source: Black Friars Communications (n=100 Executives surveyed) LESSON: Those marketing professionals that measure their efforts get budget increases nearly DOUBLE their counterparts who do not regularly measure marketing effectiveness.