NCS and Nielsen are proud to present the most comprehensive analysis of what drives advertising effectiveness—creative, reach, targeting, recency and context—based on nearly 500 studies from 2016 and 2017 and over a decade of experience in linking advertising to sales results: Five Keys To Advertising Effectiveness.
This report evaluates the sales contribution of these five key drivers—and how their roles have changed since the ambitious Project Apollo studies of 2006. It also incorporates a separate study that examines the reach of TV & digital for nearly 900 cross-media campaigns.
- 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.
- 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.
- 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.
- For large cross media campaigns, reach still comes primarily from television.
- Understanding consumer purchase cycles and timing advertising closer to purchases can boost sales dramatically.
While yacht-hopping in the French Riviera can’t be part of everyone’s job descriptions, getting the download from Cannes is always just a play button away, thanks in part to Beet.TV. See what NCS had to share with the adtech world:
Outcomes-Based Measurement: Andrew Feigenson reflects on the increasing authority of the almighty dollar as advertisers’ KPI of choice, and how publishers are in turn using ROAS to improve their products and inventory:
Bringing Buyergraphics To OTT & CTV: Matt O’Grady expands on our latest integration with Innovid to power dynamic campaign creative for Advanced TV based on consumers’ actual purchase history:
Cord-cutters. Cord-nevers. The myriad ways in which consumers can get their media fix grows larger every day. Is the linear TV audience slipping through your fingers? Not if you’ve got the right tools in your toolbox.
Innovid has launched a new twist in their leading video marketing platform to deliver real-time personalization and addressability to OTT and connected TV audiences. But what exactly is being personalized and addressed? That’s where NCS comes in.
Innovid’s dynamic ad targeting is powered by Nielsen Marketing Cloud and NCS’ industry-leading 90MM-household purchase dataset, so CPG brands and their agencies can customize creative based on each individual consumer’s past purchase behavior in real time. Why does purchase behavior matter? It is the #1 predictor of future behavior when it comes to CPG media planning and buying.
GroupM’s Modi Media get it. They’ll be running a campaign to dynamically serve up creative, so cat food buyers get cat creative, and dog food buyers get — you guessed it — dog creative. It’s a no-brainer considering just how precisely and effectively you can reach an audience that is, in many ways, incremental to linear TV.
Spotify asked NCS to run cross-platform Sales Effect for eleven major CPG brands, in order to measure the efficacy of Spotify For Brands to drive results at the register. The results are in, and they’re music to an advertiser’s ears.
After a very positive 2016, with many successes – the launch of our first Multimedia ROAS Benchmarks, the availability of our purchase data to reach CPG category and brand buyers on Facebook, and the industry’s first case study with Yahoo and Chobani to measure the incremental sales impact of search advertising – 2017 is off to an equally exciting start.
NCS has been the innovator in our space since 2009 and we’ve been fortunate to work with innovative clients who want to be on the leading edge of precision marketing and return on ad spend measurement. But the pace of change taking place in the industry today has us realizing that these practices are no longer the domain of the risk takers but the mandate of CPG marketers large and small. Our focus on purchase based targeting and sales outcomes, and our pursuit of consistent cross-media measurement, have us sitting right at the heart of where the industry is wants to be. We wanted to take a minute and share what we’ve been up to.
We sat down with AdExchanger to talk programmatic activation and addressable TV…
Here are some highlights, read the full interview here:
“Two years ago, NCS data could be activated programmatically on 12 ad platforms. Today, that number is at 170… including direct relationships with DSPs like Turn, The Trade Desk and AppNexus, WPP’s Xaxis unit and DMPs or data onboarders like LiveRamp/Acxiom, Neustar and Nielsen Marketing Cloud. Each onboarding partner has around 40-70 ad tech integrations where it can send NCS audience segments.”
“NCS is an early measurement partner for addressable TV buying with Comcast, Charter, Altice (which bought Cablevision in 2016), Dish and AT&T.”
“More media is becoming addressable and more accountable, and NCS is well-positioned to grow on the back of that trend,” said Nicole Monteleone, executive director of analytics and modeling for the video ad tech company Eyeview, where she’s overseen some work with NCS on addressable TV measurement.
We announced a new cross-media sales measurement solution with Facebook…
To help our clients answer the question “but did it work?”, we set out to create a new cross-media solution that could identify: the unduplicated reach delivered by a campaign, how Facebook and TV contribute to sales results individually, and the synergy resulting from combining two or more media for a campaign. Currently, we’re measuring advertising campaigns that run across TV and Facebook (or Instagram or Facebook Audience Network), and in the future we’ll also do this for campaigns that cross TV, Facebook and other digital publishers.
We debuted the NCS Learning Lab, and our first project on viewability and attention…
NCS is fortunate to work with many agencies, advertisers and media companies who welcome the opportunity to test & learn alongside us, with the goal of creating better advertising and advertising solutions. This year we launched the NCS Learning Lab to further the industry’s understanding of advertising effectiveness. The first project we’re working on, with Moat, Yahoo and Kellogg’s, is aimed at connecting viewability and attention metrics to in-store sales. This will help marketers understand the correlation between attention and outcomes.
And we’re working on even more this quarter…
Over the coming months, we will have more exciting research and solutions to share with you. Currently, we’re analyzing hundreds of TV and digital campaigns to understand the impact of each campaign element (reach, creative, recency, targeting, context) on driving sales. We’re also planning Learning Lab projects related to addressable and data driven TV, and a meta-study furthering our viewability and attention work. We look forward to sharing more with you next quarter.
In concert with Viant and Joel Rubinson, NCS purchase data has unearthed further evidence of the value in targeting actual brand buyers, and the impact of reaching them at the right moment.
Dubbed “the Persuadables”, this three-brand CPG study crafted a consumer segment composed of heavy brand buyers who were about to mature in their purchase cycles, and pitted their results at the register against an array of other, more traditional consumer segments. The outcome was nothing short of incredible:
- The Persuadables (heavier volume shoppers who are close to their next purchase) generated a 16x greater ROAS than the other exposed audiences
- Targeting heavy brand buyers provided a significant lift in ROAS; proof that targeting brand buyers vs. non-brand buyers is uniformly a better strategy
NCS and our clients have long-known that heavy buyers bring the lion’s share of incremental sales, and The Persuadables study is one more proof point to that argument. What makes this body of work unique is how it quantifies that which many of us have always suspected: recency plays a significant role in the success of a campaign.
And so, we find new wrinkles still tell the same tales: in CPG, past purchase behavior is the #1 predictor of future purchase behavior… and timing is everything.
At this year’s ARF Re!Think Conference, NCS debuted its Learning Lab on Viewability and Attention to extend the industry’s understanding — and opportunity — around the effectiveness of viewable ads.
Along with an all-star cast including Kellogg’s and Yahoo, Nielsen Catalina Solutions worked with Moat to reveal how two-second standards for video viewability don’t tell the whole story. Using in-store incremental sales as the KPI, early results illustrate the correlation between attention and outcomes: as Time In View increased, so did Sales Impact. Further, the 0-2 second window which would not qualify as a viewable impression did indeed drive some return.
What’s the implication for brands and publishers? For one, it means not looking beyond the current viewability standards leaves a lot of effectiveness on the table. Brands should (and can, with NCS and Moat) assess inventory performance second-by-second to optimize the sweet spot for future creative and media buys. In the same breath, publishers can more accurately inspect and promote the value of their inventory against results at the register.
To expand your campaign’s view into attention metrics, get in touch with NCS here.
In an age where the phrase “cross media” is used as a business development buzzword masquerading for innovation, the industry has eagerly awaited a solution that truly crosses the major arenas of ad spend: linear TV and digital. NCS Cross Media Sales Effect On Audience Link — announced at ARF Re!Think 2017 — is that solution, measuring the campaign’s results at the register, as always.
To understand the effectiveness of advertising across TV and digital (including mobile), it’s critical to be aware of the following:
- The unduplicated reach delivered by your campaign
- How each media contributes to sales results individually
- The synergistic effect of the combined media that drives higher sales
The insights revealed thus far through studying several Facebook campaigns show, above all else, that brand characteristics and creative have a major impact on cross media synergy. In short: every media campaign is different, so every measurement matters.
CINCINNATI, OHIO – Sept 22, 2016 – Nielsen Catalina Solutions (NCS), the leader in purchase-based targeting and return on ad spend measurement for the CPG industry, today announced an agreement with Facebook that will allow marketers to use CPG purchase data from NCS to measure the in-store sales impact of their Facebook ads.
NCS has the largest, most representative CPG purchase dataset in the industry, with in-store purchase data from over 90 million U.S. households, across more than 18,000 retail and drugstore locations. This shopper data is calibrated with Nielsen Homescan® and Retail Measurement Services (RMS) data to effectively cover nearly 100% of all-outlet U.S. CPG spend. Combining this purchase data with ad exposure information from Facebook will allow CPG marketers to identify their most responsive consumers and understand the impact their advertising has on in-store sales.
“Together, Facebook and NCS are collaborating to provide the industry with a closed-loop solution that helps marketers better understand the sales impact of their advertising on Facebook, Instagram and Audience Network”
– Brad Smallwood, VP Measurement & Insights, Facebook
“The ability to measure results using the deep CPG expertise of NCS is beneficial to our clients.” “The most important thing to understand about data – in the context of advertising – is that the quality of the audience segments and the measurement can only be as good as the data itself,” said Matt O’Grady, CEO, Nielsen Catalina Solutions. “Combining the highest quality purchase data with the huge reach and the resulting ad exposure data from Facebook, we can get a deep understanding of how these ads are driving consumers to purchase. This only scratches the surface of what we will be able to do together in the future.”
NCS (Nielsen Catalina Solutions) is a purchase-based ad targeting and ROAS measurement firm serving the CPG industry. We integrate in-store purchase data from over 90 MM households with media exposure data from TV, online, mobile, print, radio and CRM to help consumer packaged goods advertisers, agencies and media companies define their most valuable audience, reach them with advertising and measure incremental sales from the campaign. The joint venture between Nielsen and Catalina has helped over 200 advertisers and 450+ brands optimize ad performance to drive revenue growth and increase return on ad spend.
At ARF’s Audience Measurement Conference, we shared the stage with an esteemed research group spanning CBS, Meredith and Sequent Partners to present the CPG industry with advertising metrics they can take to the bank: Multimedia Advertising ROAS Benchmarks.
We assembled these results from the analysis of 1,400 NCS Sales Effect measurement studies and 450 brands across the past decade, yielding insights around incremental sales and return on ad spend — core drivers of media efficiency for the CPG sector.
Measurement at this scale is not without its challenges, to be sure. Controlling for microeconomic factors means having an understanding of clients’ budgetary shifts, brand and product changes, among many others. Then there are the macroeconomic factors around consumer confidence and recession/boom behavior. Add to all this the morphing of the media landscape into something increasingly harder to classify with satisfactory distinction, and the challenge of driving insights across media becomes quite real. It is for those reasons that few data providers have been able to generate actionable benchmarks on a broad scale, making this ROAS Benchmarks report an indispensable reference point for CPG advertisers.
How do media types stack up? Where are their strengths and weaknesses showing at the register? How do specific media types drive results for particular CPG categories? What do the figures mean for your brand? All these questions and more are answered in the downloadable PDF of our Multimedia ROAS Benchmarks here.
Curious as to how these numbers can inform your next steps? We’d be glad to walk you through them. Just want to know more about the stories this report tells? Watch the recording of our CPG Benchmarks Webinar here: