When it comes to successful ad targeting for consumer packaged goods brands (CPG), there are a lot of theories, but little data.
Until recently, that is. In June, Nielsen Catalina Solutions (NCS) released the results of a study on 50 CPG brands over 3-and-a-half-years at various stages of their life cycles called How to Build Brands. Recently, Reynolds Wrap, the venerable aluminum foil brand, took a deep dive into what this data means for the brand.
According to the study, advertising spend becomes more efficient when marketers can identify which consumer groups the messaging resonates with most. Ideally, marketers can double down on such targeting to improve return on ad spend (ROAS) and sales lift. For CPGs, efficient spending is imperative. The average food store in the U.S. is 7,500 square feet smaller than 10 years ago and has about 9,000 more products for sale. But 60% of shopping decisions are still made in store. Clearly, many shopping decisions are up for grabs.
By Leslie Wood, Chief Research Officer
If you Google “rules of advertising,” you’ll find that most of these golden rules focus on how to develop great creative. There isn’t a lot of data-driven direction for planning and delivering advertisements with the right messages to the right audiences. In the past, we didn’t have the tools and framework to understand the financial implications of messaging and targeting decisions. Today, we do.
Now, we can stop asking the following questions and start answering them.
- Does advertising really work or can I just cut the price?
- What are the best short- and long-term strategies for driving growth?
- Who should we target—current buyers or non-buyers?
- What are the roles of creative and media in driving brand growth?
- How should the life stage of my brand affect decisions?
NCS can help you navigate the new third-party audience requirements.
“The August 15th Deadline” is here and there are still so many questions looming in the minds of digital advertisers about the “post-Partner Categories” world of advertising on Facebook. Will there be less data to use for delivering targeted advertising? How will my existing campaigns and segments be impacted? Will I have to redo my entire advertising plan and budget? Are my campaigns at risk of becoming less efficient, or will I be able to maintain campaign performance?
According to AdAge, “An estimated $1 billion of ad spend on Facebook has gone through third-party partner program every year.” NCS is well prepared for this transition. Because safeguarding consumer privacy and advertising data integrity has always been a core value for us, very little will change in regards to how you can use our segments to reach your important audiences on Facebook.
Radio is stepping up its game by investing in innovations and research to help prove its value and get the respect it deserves. Erica Farber, President and CEO of the Radio Advertising Bureau (RAB) recently interviewed luminaries in the radio industry to talk about Data-Driven Insights and measuring radio to drive results for the business. She opens with John Wannamaker’s famous quote, “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Matt O’Grady, CEO Nielsen Catalina Solutions (NCS), can verify which half is working. He shares how the radio industry is adopting ROI Analytics to drive sales accountability. “We can prove that someone who is exposed to the advertising is actually going shopping. We have a one-to-one connection between the listener and the shopper.”
Radio is often heard right before someone is going shopping and is a fantastic time to reach someone. So the exposure to the ad can be matched to that person’s purchase data and shopping behavior. That’s what advanced analytics now means for radio—evaluating the sales performance of the campaign.
Matt O’Grady talks to Erica Farber about Advanced Analytics—RAB@Work: The Q Report – Data & Analytics
To learn more about these Radio ROI Analytics, read about our sales effect solutions.