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:
You asked for more yogurt case studies, you got ’em.
Okay… so no one really asked for more yogurt case studies, but the work we’ve done here with TNT is well worth the second serving.
In a recent TV study for a major yogurt brand, TNT leveraged NCS buyergraphic audiences and Sales Effect measurement for a closed-loop solution that drove nearly $5MM in retail sales above and beyond what consumers would have spent had the ads not run.
A big part of that success came from TNT’s TargetingNOW technology. In their words:
Turner uses an in-house, proprietary model called CAE (Competitive Audience Estimation) in order to optimize the schedule. CAE is a predictive model that ingests a variety of data sets and builds 30 minute impression level estimates against the target – it is the most granular audience estimation tool in the industry.
One of the unique finds of this particular study was the high ratio of sales driven by non-loyal buyers; a somewhat rare outcome in the CPG world, and a testament to great alignment between the campaign goal, the creative, and the target audience.
Are you looking for a smarter approach to this year’s upfronts? See the full TNT case study to learn how buyergraphic audiences and measurement at the register can boost your in-house research.
In our second industry-first case study this month, NCS paired up with Yahoo and Chobani to measure the incremental sales impact of search advertising, and the resulting 1.3% conquest of market share was enough to sweeten anyone’s day.
This was a closed-loop campaign, meaning that Chobani not only used NCS to measure results at the cash register, but also took a smarter approach to its media plan from the very beginning by targeting NCS’ buyergraphic audiences (Chobani buyers, in this case) on the Yahoo search platform. An incremental sales lift to the tune of 9% was the reward for a job well done on everyone’s part, optimizing the media plan and quantifying the outcomes.
If you’re a bit hazy on how incremental sales are measured, read the AdAge coverage or allow our friend Marty to drop ninety seconds of knowledge:
This was an especially interesting study for us, not only because it was the first to tie influencer marketing to attributable sales lift at the cash register, but because it blurred the line between what traditional media would consider a pageview vs. an impression.
To test the TapInfluence platform and influencer content, WhiteWave selected over 250 bloggers to create recipes themed around “Meatless Monday Nights”, wherein a Silk product would be featured among the ingredients. NCS then measured the in-store behavior of consumers who read the articles vs. a control group who did not, resulting in a 10% incremental sales lift and $285 of incremental sales per 1,000 pageviews.
Even more interesting was the fact that WhiteWave did not ask to have the Silk brand mentioned in any of the bloggers’ social shares linking to their articles — so while the audience made a conscious decision to read the content, their exposure to Silk was unsolicited, much like a traditional impression.
Kellogg’s has released notable results from a holiday cross-device mobile campaign powered by Opera Mediaworks, LiveRamp, and Nielsen Catalina Solutions.
The Rice Krispies® brand wanted to stay top-of-mind as a key ingredient to the wide world of holiday treats a mom could cook up with her kids, and moms responded to the tune of a 28% incremental sales lift, driven primarily by increased store trip frequency. The campaign simultaneously succeeded in extending the brand’s equity and driving in-store sales, with a Kellogg’s overall return on ad spend (RoAS) surpassing 62%.
The 28% incremental sales lift was realized through NCS’ industry-leading test-and-control methodology, analyzing over 500 variables to extract the consumer dollars influenced by the campaign, above and beyond what dollars would have been spent independent of the ad.
Rice Krispies® success came at the expense of its primary competitors, which not only serves as a short-term win, but informs future campaigns of the potential for competitive conquest. Download the full case study for more details.
Learn more about measuring mobile campaign performance at the register:
Most metrics in the advertising world suffer from being bland and uninspiring. In other words… tastes like chicken.
Campbell’s Swanson wasn’t satisfied subjecting their holiday campaign to such a grim outcome, and so they cooked up a much bolder recipe for campaign insights with the help of Millennial Media and Nielsen Catalina Solutions (NCS).
What’s the secret ingredient, you ask? Well, if we told you, then it wouldn’t be a secret… but you look like a trustworthy person, so perhaps we can let it slide this just this once. The secret ingredient is: people. More specifically, the actual incremental sales dollars generated by those people at the cash register.
NCS and Millennial delivered Swanson a 7% lift in incremental sales and a 4x return on their ad spend, outperforming CPG campaign benchmarks by 43%. These sumptuous insights were the result of a measurement methodology which isolated the behavior of buyers exposed to the ad vs. the control group of unexposed buyers.
Check out the full case study here.
In today’s fast-paced world, it’s no surprise that many of us are quick to seek out immediate gratification in our daily lives. From a marketing perspective, particularly as digital media engage with us in an ultra-real-time fashion, it’s easy to lose sight of the long game when it comes to the effect of advertising. Truth be told, however, advertising can be just as effective—if not more so—over the long haul than it is at the time it launches.
And in that respect, it’s critical for marketers to understand how advertising affects brand value over time, as well as how it’s connected to brand loyalty. Short-term sales are wonderful, but the true testament of an ad is its ability to cultivate loyalty among consumers who ultimately identify themselves through the brand behind it.
Most advertising models show that loyalty is the largest driver of brand choice. Loyalty influences three key things: the price a consumer is willing to pay; the degree to which a competitor’s marketing activities can change consumers’ behavior; and how regularly the consumer buys the brand. The data from a recent study by Nielsen Catalina Solutions (NCS) makes it clear that the higher the loyalty, the higher the future brand sales will be.
Beyond Rules of Thumb
While the discussion around measuring the long-term effects of advertising often focuses on a rule-of-thumb equation, marketers can gain a much deeper understanding by examining how advertising builds sales—both in the short and long-term. The NCS study measured the contribution that advertising makes in building a brand over time. The work focused on segmenting consumers in a way that discriminated and differentiated them based on how much they will spend in the next year, and understanding some what drives repeat purchases. Advertising that builds strong emotional and behavioral consumer connections that drive sales in the long term, also drives brand loyalty and total brand value.
The research, which NCS conducted in collaboration with CBS Corp., involved 31 studies that looked at the factors that drove the long-term effectiveness of ads for 23 U.S. packaged-goods brands. To conduct the studies, NCS tracked purchases from households that were exposed to advertising for one year after the end of the short-term period. The research found that while long-term effectiveness metrics vary by brand and ad campaign, factors like purchase cycle, frequency of purchase and weekly spend are among the critical elements that drive long-term effectiveness.
To assess long-term ad-driven buy and repeat behavior in the market, marketers typically double their short-term sales, a technique known as the “2x multiplier.” The multiplier is the relationship between the sales lift generated in the “long term” and the sales lift generated in the “short term.”
Marketers typically view short-term sales as the sales that are directly influenced by the advertising, which is generally within 12 weeks of exposure, while the long-term perspective includes the indirect purchases that were influenced by increased by loyalty with spans one to two years thereafter. Findings from the new NCS study support the premise that the average multiplier for the long-term effect of advertising is approximately twice that of the short-term effect. While this may help marketers understand how advertising works in general, it doesn’t offer any brand-specific insight.
That’s where the granularity of single-source data comes in. Unlike general knowledge, it allows advertisers to better understand the actual drivers of this long-term effect, and how it varies by brand. When brands know their actual long-term multiplier, they gain critical to insights into:
- The actual differences between short-term marketing tactics and the total impact of advertising
- The value of advertising to different brands in the same portfolio
- The differences between different marketing/advertising campaigns, and
- The general health of a brand
The Long- and Short-term Ad Effect by the Numbers
The size of the long-term effect has a direct impact on the return an advertiser can achieve through advertising. Learning how to increase the effect will therefore help advertisers understand how their advertising will perform now and in the future.
In looking at the long- and short-term effect of a recent Kellogg’s Special K ad campaign, Kellogg’s found that the short-term advertising effect drove the first sale, or 1.0. Comparatively, the long-term effect drove $1.80 for each short term dollar sale, yielding a total multiplier of 2.8x of total advertising driven sales. The short-term lift was $0.14 of sales per exposed household, and the total was $0.39 per exposed household, or 2.8 times more during the year following the campaign.
Brands and advertisers now have a way to quantify the full value of their advertising. They can also make more informed decisions about their marketing strategies.
Campaign Goal: Increase sales of Pop Tarts by delivering relevant content to teenagers of a household so they consider Pop Tarts as a breakfast option.
Campaign Result: Pop Tarts saw a 7% lift in incremental sales and a whopping 3X+ return on advertising spend. Yes, that’s right, 3X+ ROAS.
And now you’re wondering how’d they do that?
Pandora ran this campaign across multiple device types (tablet, mobile, and desktop to be specific). Pandora’s unique ability to deliver on demographic segments and lifestyle preferences for every individual login allowed NCS to measure the total sales of the household and the incremental sales specifically related to Pandora’s delivery, in addition to what the household would typically spend.
Which device performed the best?
Cross-device measurement showed that households only exposed to the ad on mobile devices contributed to 70% of the total incremental impact.
How impressive are these results though?
Not only did Pop Tarts see amazing incremental lifts and ROAS, they also outperformed the average benchmarks when compared to similar campaigns.
Want to know more?
There are some ideas in life that are so logical, it would be extremely difficult –nearly impossible, really – to refute their validity. For example, if you pay for someone to cut your grass on a weekly basis, you have every reasonable expectation that the job will get done for the agreed upon price. This is the basic premise of commerce: people barter for goods and services and then exchange them for a “fair” price as determined by our free market economy in the good old U S of A.
The digital advertising industry, however, seems to have managed to complicate our premise of commerce slightly. The hottest buzzword in the digital ecosystem right now is viewability, which refers to whether or not a paid advertisement (an message that someone pays to have shown to people) is actually being seen by the totality of the audience a publisher is purporting to have shown the ad to.
To fully grasp the absurdity of this issue, let’s return to our grass cutting analogy. What if you found out that your local grass cutting service wasn’t actually cutting your grass, but instead was taking your agreed upon fee, and only cutting a section of your lawn, or not showing up at all? Certainly this type of business practice would not stand.
When it comes to the vast amounts of inventory that make up the advertising opportunities on the internet, noticing that ads aren’t viewable is not as straight forward as noticing that your grass is now knee-high. Let’s break it down in this infographic, wherein we made the robots as cute as possible to keep the peace in the adtech sector. Enjoy: