Measuring and Improving Ad

Effectiveness

What Drives Advertising?

Creative

$Spend

• All advertising consists of two elements

1. The “noise” or penetration of the ad event, driven mostly by the level of spend or GRPs

2. The copy, creative or message, which convinces the customer to buy

Advertisers

• Invest millions to “copy test” ads in order to assess the relative effectiveness of ad creative or copy

• Yet, there has been little work to integrate these copy test data into a measurement framework that links these test scores to brand sales

• Bottom-Line Analytics/Global Analytics Partners have partnered with a key copy test partner, Advertising Benchmark (ABX), for the purpose of bringing disruptive change to the science of advertising measurement

• What if we could incorporate advertising copy test scores into marketing-mix models for the purpose of measuring and monetizing ad creative?

How this is Done

• Bottom-Line Analytics/Global Analytics Partnersand ABX have joined to work together to fulfill an innovative vision: that is to combine for purposes of developing systems and tools for monetizing and measuring the impact of advertising creative and providing a 360 degree view of advertising effectiveness based on validated brand revenue.

• By embedding copy-test scores within a marketing-mix model architecture & measurement framework, ABX’s copy test scoring system is uniquely able to help validate & monetize copy test scores.

Ad

Creative 1

Ad

Creative 2

Ad

Creative 3

Ad

Creative 4 Net Total

GRP 76 112 144 89

ABX Index 110 97 132 88

Net Score 8,360 10,864 19,008 7,832 13,265

ABX Index 110 97 132 88

Awareness 16% 18% 19% 16%

Message 20% 15% 20% 15%

Reputation 13% 20% 10% 17%

Relevance 18% 17% 17% 17%

Likeability 15% 13% 19% 19%

Call.to.Action 18% 18% 16% 16%

Visualize the ABX Copy Test System

• The 360 degree view

• Measuring all ads

• All Channels

• All competitors

• With deep diagnostics

• Validated and Monetized via predictive analytics

• Disruptive: Cheaper, Faster, Deeper and Better

• Following is a sample from one selected brand

The Result: Way Too Many Bad Ads

Good Ads

Underperforming Ads

6

360 Degree View: ABX Benchmarks EVERY Ad

So You Know What Works

• ABX provides a consistent metric for 14 KPIs that applies across every

media type measuring ad effectiveness for:

building awareness

communicating key messages

generating a call to action

enhancing reputation

Likeability

• Each ad is evaluated by a minimum of 150 GenPop respondents from a

representative and well-balanced consumer panel via the internet

• The sample is broadened to include target audience criteria.

• Results are available within 24-48 hours of the launch of the ad in the

marketplace

7

The Interviewing Experience

• All interviews are collected using

our patent-pending visual

‘ocular’ survey system.

• The ‘ocular’ survey insures every

respondent is presented with the

same interviewing experience.

• ‘Ocular’ interface creates an

improved ‘interviewing

experience’ leading to greater

engagement versus traditional

“text based” surveys.

8

What ABX Measures

14 key inputs

2 consumption metrics Level of category usage

(Frequent, Regular, Occasional, None)

Level of media consumption (all media; same frequency breaks)

Geographic data 4 census regions

Demographic data Gender, Age, Education, HHI

Brand Linkage

(Ad Recall)Clear Benefit

Feel About

Advertiser

Better

Worse

No Different

RelevantLike to See

Again

Contact

Company

Awareness Messaging Reputation Relevant Likeability Call to Action

Easily

UnderstoodLike Visit Website

Look For

Product

Purchase

Product

Recommend

Product

Talk to Someone

About it

None/Any

ABX Data is comprised of

Dislike

Awareness Messaging Reputation Relevant Likeability Call to Action

ABX Data is comprised of

Awareness Messaging Reputation Relevant Likeability

9

AD ID

Advertiser ABX Index

Brand

Linkage

Clear

Benefit

Easy to

Understand NPS

Any

Action

Contact

Company

Visit

Website

Look

for Purchase Recommend

Talk to

Someone Relevant

Like to See

Again Like Dislike

Vs. All Ads 127 120 110 111 156 142 59 101 184 211 103 80 160 130 82 31

Vs. Category 116 109 107 107 146 125 61 76 139 217 100 81 142 123 85 37

Vs. Medium 131 117 115 118 169 148 60 98 187 227 113 88 168 142 91 33

101212197

Note:• “Reputation” is net of “better” minus “worse”• “Any Action” is one or more calls-to-action, highlighted in yellow

• Arrow-highlighted data goes into current ABX Index calculation

• ABX data has been correlated to advertiser outcomes, such as sales or website traffic and has been shown to significantly improve market mix models

• ABX results are highly correlated with legacy copy test providers

ABXScore

The Advertising Benchmark Index (ABX)

ABX Index can be customized based on the unique combination of factors found to correlate with specific Client or campaign success!

10

Red Bull Ads Scores Not So High among

General Population & Competitors

Normative

But Red Bull Ads Score High among Target

Millenials

Normative

Red Bull TV Ads Score High among Target

General Population

Normative

ABX’s timeliness enables effective copy rotation and builds more effective advertising

High-Scoring Television Ad –GenPop & Deep Diagnostics

High-Scoring Television Ad –Millennials & Deep Diagnostics

Lower-Scoring Television Ad –GenPop & Deep Diagnostics

Average-Scoring Television Ad –Millennials & Deep Diagnostics

Dirty Little Secret about Conventional Ad Copy

Testing

• Too expensive– ABX testing costs at least 75% less than conventional ad testing services (~$25K per test)

• Too Slow– 48 hours instead of 2-3 weeks turnaround

• Too limited with respect to media channels– All channels including Outdoor and Digital/Online

• Limited in benchmarking to competitors– ABX provides all competitors’ test data for benchmark comparison

• No linkage to brand performance– BLA can impute ABX copy test scores in Marketing-Mix Models to validate and measure copy creative impact

• Not actionable– Timeliness permits effective copy rotation and significantly improves copy impact

Cheaper, Faster, Deeper + Better

Using the ABX Index with

Marketing-Mix Models to

Measure Creative Impact

Incorporating the Creative Element into

Marketing Mix Models

• Focusing management attention toward the creative process and execution

– Monetizing the creative element

– Measuring how creative drives growth and brand performance

• Providing explicit diagnostics of the 6 elements of the advertising creative

• Tangible metrics and tracking will drive significant improvement of ad creative over time

Marketing-Mix Decomposition

63

22

6

9

15

Baseline Customer Experience All Media GRPs All Media Creative

This model separates the investment impact from theadvertising creative contribution

Marketing Variance Growth Impact

-2.1%

-1.9%

-1.2%

-0.9%

0.1%

0.5%

0.9%

1.6%

2.4%

-2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

Radio Creative

Retail Price

TV Creative

Digital Creative

TV Spend

Digital Spend

Radio Spend

Baseline

Retail Penetration

And measure the full effect of ad creative on brand growth

Radio Creative Retail Price TV Creative Digital Creative TV Spend

Digital Spend Radio Spend Baseline Retail Penetration

In 3 out of 4 cases, advertising problems are due creative problems and not fromInsufficient ad investment.

We will be able to quantify the relative importance of creative

versus the level of ad investment

0

50

100

150

200

250

50 60 70 80 90 100 110 120 130

Sales

Activity Index

Sales Response Media GRPs and Creative

GRPs

ABX-I Creative

And for each ad, quantifying each creative

element

0

10

20

30

40

50

60

70

80

Radio Ad 1 Radio Ad 2 Radio Ad 3 TV Ad 1 TV Ad 2 TV Ad 3

Spend Creative.Awareness Creative.Message Creative.Reputation

Creative.Relevance Creative.Likeability Creative.CTA

The Value Proposition

• Strategic advantage: Full valuation of the marketing message & creative

• Effective copy rotation over time will significantly improve creative execution

• Copy quality will improve over time• Knowledge of which creative element is most

important for each ad will help improve creative development

• Managed improvement relative to competitors becomes a competitive advantage

• Stimulating accelerated business growth