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.
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.
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:
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: