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.
In the south of France at this year’s Cannes Festival, there was a lot of talk regarding the blurring of lines between TV and digital. Matt O’Grady, CEO of Nielsen Catalina Solutions, shares what’s on his mind regarding transparency and TV today.
CPG marketers have a need for faster and more frequent purchase signals. Not only must they prove that their advertising is providing a strong return on investment, but they need it yesterday. To help our clients know what’s working and make near real-time advertising decisions, NCS has launched Purchase Data Metrics or PDM for digital campaigns.
Designed to help CPG marketers identify the most effective strategies and tactics that optimize sales from their ad campaigns, PDM can be accessed on-demand, with data updated daily, making it the fastest and most frequent purchase signal available for the CPG industry today. PDM is currently being used in proprietary platforms developed by several publishers and portals to deliver more effective advertising across their properties.
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: