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Advertising Measurement. A Framework for Evaluating Impact & Results. Agenda. Context Considerations For Establishing Objectives & Goals Capturing Information Systematically Communicating Insights & Learning A Frame Of Reference Appendix. Executive Summary. - PowerPoint PPT Presentation
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©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics
1
Advertising Measurement
A Framework for Evaluating Impact & Results
©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics
Agenda
Context Considerations For Establishing Objectives & Goals Capturing Information Systematically Communicating Insights & Learning A Frame Of Reference Appendix
©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics
Executive Summary
Our measurement approach must readily enable business decisions. Comparability is essential for evaluating alternatives
Throughout campaign Across vehicles By segment By product
We will need to establish & capture common “Advergraphics” in order to evaluate relative business results
Apples to apples comparisons Most of the key questions posed by Marketing Leadership require rigorous attribution
capabilities While some metrics will be common and/or we will have the ability to
aggregate/disaggregate, others will be unique to a specific vehicle. Some of the metrics will also roll-up and down between advertising and the “Engagement Cycle” dashboard.
Advertising is relatively continuous & so too should be the metrics On-going sampling or tracking versus static periodic reads
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Marketing Dashboards
Best practices of successful marketing dashboards: Tie measures to strategy – aggregated & disaggregated.
Finance Customer relationships Brand health Internal efficiency
Focus on small set of metrics Organizational focus
Ensure stakeholder buy-in People who’s compensation and performance evaluation will be impacted Metric owners Finance
Tie to decision making process Design dashboard to feed the decision-making process Frame #’s within a qualitative context
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Activity Activity & Analyses Planned & Systemic
80%
15%
5%
Marketing Measurement Today
Activity Activity & Analyses Planned & Systemic
Ch
ara
cteristics
•Labor intensive•Single question or lens focused
•Premium associated with data gathering
•Measures are often defined “on the fly”
•Campaign-centric data accumulation and test design
•Labor intensive, low volume •Advanced analytic tools and techniques are leveraged
•Not limited by need to information gathering to be systematic
•Addresses questions or analyses that do not need frequent re-examination
•Designed to produce primary measurement and customer insight
•Process intensive•Well-established success metrics•Data provides analysis dexterity (ability to answer multiple questions or be viewed through multiple lenses)
•Customer-centric and relationship perspective•Supports single, multiple and ongoing contact streams•Comprehensive view of a complex business•Supports strategic decision-making systemically• Integrated with strategic planning process•Returns financial results
In general, companies should spend between 5-10% of their total marketing budget on measurement.1
1Source: Boston Consulting Group & Millward Brown2Source: Marketing Leadership Council
Measurement Relative Sophistication
% of US Companies2
Lo High
ROIQuestions
InsightGap
Today’s Capabilities
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Advertising Response Curves By Product
Financial Services has one of the most challenging consumer response curves1
The complexity of the decision-making process, financial magnitude & the extraordinary influence of external factors are certainly some of the many contributors to this.
Source: Millward Brown
Trial Rate
% Consumer Awareness
Trial Rate
% Consumer Awareness
Trial Rate
Financial ServicesPersonal CareImpulse Products
% Consumer Awareness
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Response Curves By Vehicle
The same weight produces different patterns in awareness build and decay
TV GRPs
TV
Magazine
MagazineGRPs
% A
war
enes
s
Time
Source: Millward Brown
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Advertising Effectiveness Framework
Clients are spending a significant amount of money on advertising and needs measurement insights in order to optimize the impact of these expenditures.
The Marketing Leadership Team has a need and desire to begin evaluating advertising effectiveness.
1. Establishing Clear Objectives & Goals
2. Capturing Information Systematically
3. Communicating Insights & Learning
Key Question:How Might We Think About Evaluating Advertising?
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Advertising Objectives & Goals
There are many considerations which need to be taken into account when establishing objectives & goals for an individual advertisement and they may vary based upon the strategic intent of each campaign.
Specify which part of the customer engagement cycle the advertisement is striving to influence Establish brand objectives (if any) as well as setting specific product objectives
Create/reinforce or change Perception or behavior
Select a specific target audience Prospect or customer Emerging, Engaged, Established, High Net Worth, Active Trader
Understand the context of the campaign as well as the marketplace Integrated stand alone Competitive activity Leading economic indicators & stock market performance
Create the learning plan Rigorous test design Data requirements Analytic framework
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Vehicle Impact Varies Across Engagement Cycle
As the strategy shifts from expansion towards acquisition, the marketing measurement and infrastructure must evolve.
ObjectivesVehicle
ExpansionInvestmentAwareness Consideration InquiryCustomer
Engagement Cycle
• Breakthrough • Relevance • Differentiate• Inform
• Activate • Engage
TV 4 •Effective Reach 3 •Delivers rich imagery & personality
2 •Product features/benefit
1 •Reinforces brand image
0 •No significant role
Radio 4 •Augments Reach & Frequency
3 •Reinforces key messages
1 •Product features/•benefit
1 •Reinforces brand image
0 •No significant role
Print 2 •More Targeted reach
3 •Readily enables comparisons
4 •Detailed explanation 1 •Offer inducement•Reinforces brand image
0 •No significant role
Internet 1 •Targeted but ext. limited reach
2 •Rich info/exp •Portal proliferation
4 •Extremely detailed•Self directed•Personalized
4 •Enabling tool• Immediacy•Personalized
3 •Ongoing source of value
•Loyalty mktg vehicle•Penetrate enhanced needs set
Direct Mail 1 •Targeted Reach 2 •High level comparisons
4 •Highly targeted message
4 •Offer inducement•Call to action
1 •Penetrate enhanced needs set
Call Center 0 •No significant role 1 •Prospecting 2 •Detailed experience•Product features/benefit
3 •Personalized offer•Real time dialing
4 •Customer experience
Sales Force 1 •Prospecting 2 •Enhanced credibility 4 •Can overcome specific barriers
•Real-time dialing
3 •Share of wallet•Depth of knowledge
3 •Rich customer exp.•Relationship may drive loyalty
Event/Sponsorship
4 •Effective reach•Positive Association (Halo)
1 •Can deliver some imagery & key message
1 •Deliver/sample experience
1 •Reinforces brand image
0 •No significant role
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End-to-End Measurement
Advertising metrics will need to span the “Engagement Cycle” and serve as inputs to modeling.
TIME
Exposure
PerceptionMessageImmediate RelevanceCredibility
Invest
ExperienceInterestStatusSalience
Use/Interaction
MemoryEnhancementBrand Interaction
AdvertisingCycle
Metrics
• An additional challenge is accounting for the “cumulative” effect of advertising as well as “latency” – Ad impressions accumulate to form brand equity.
• As relevance increases so does the time horizon for which the advertising has an impact.• Enhancement is the interaction between experience & expectations where associations are elevated
beyond purely functional attributes to beliefs bonding.
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Capturing Information
A “Cradle To Grave” approach is required and the measurement metrics and methodology need to be consistent throughout
Advertisement Development Execution Evaluation• Intercept interviews
– Branch– Call center– Web Site
• Standardized questions– Communication clarity– Relevance– Appropriateness– Likelihood of action
• Tracking– Enjoyment
• Business results• Return on marketing investment* (ROMI)
– CPI– CPA– Etc.
• Brand imagery & equity• Comparison to objectives• Media execution
• Ad strategy & theme– “What”
• Early in creative process• Qualitative & Quantitative• May be iterative; pre & post production• Standardized questions – “How”
– Main message– Persuasiveness– Likes/dislikes
• Clear action standards developed in advance
• Precisely specified target market• Evaluating copy & vehicles (integrated
campaign)
TIGHT LINKAGE• Awareness Index• Persuasion
• Imagery• Media Plan
• Recall• Message Retention
*Caution: Using ROI as a key performance metric for marketing is dangerous because:1) It gives excessive importance to the “I”2) Is easier to achieve by reducing costs than increasing revenue3) Leads to lower marketing spending and sub-optimal, relative to goals, performance
Source: Marketing Science Institute, “The Long & Short View of Marketing Metrics”, Tim Ambler
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Integrated Advertising Measurement
Holistic advertising measurement is an on-going cycle of testing & learning which requires considerable cross-team collaboration.
• Brand Equity
• Response Modeling
• Performance Measurement
In-Market Monitoring
Communication Strategy
Communication Assessment
BrandPositioning
• Qualitative & Quantitative Research
• Customer Segmentation
• Concept Testing
• Execution Insights
• Pre-Test Copy/Execution
• Tracking
Measurement Objectives
Project Point of Entry
CustomerData Mart
MRD
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Advergraphics
To enable robust analytics, companies must capture common “AdverGraphics” across all of its advertising – A process challenge
“AdverGraphics” -- Demographic type characteristics which describe in detail the nature of the ad itself AND all individual placements
Advertisement
? Show name/program? Media type: network, spot, cable, etc.? Position within commercial break: first,
last, other? Daypart? Audience: audited impressions &
demographics? Audited GRP’s? Run date(s)? Cost of airing Network TV; Ad position & Audited
AudienceMEETING WITH ARNOLD TO REVIEW
THEIR DONOVAN SYSTEM - Much of his type of data captured there
Network TV has much more robust data capture than other broadcast vehicles
Name Publication type
Newspaper: financial, national, regional
Magazine; business, lifestyle, etc.
Frequency; daily, weekly, monthly, quarterly
Publications Format; size, color/B&W
? Audited circulation? Audited GRP’s? Publication demographics Location within publication (timing
varies) Drop date Cost of insertion
Size – inches & % of page – Print Color or B&W – Print• Lenth of ad -- Broadcast• Proportion brand: product How many products Which products? Message category Proof points? Call to action: y/n, desired response
channel(s) & #s/URLs• Pre-test scores? Target audience; prop/cust.,
EM/EN/ES/AT/HNW; SD/V/D Planning doc• Target engagement cycle stage• Behavioral objective• Strategic intent Creative name, Oasis # Development cost? Incentive or promotion: y/n & specific
offer Integrated campaign: y/n & other
vehicles
Broadcast Placement Print Placement
• Need to evaluate the option of incorporating syndicated data such as Starch/Samms, MRI/Monroe Mendleson, Neilsen, Arbitron & potentially others
Currently available Planned or readily incorporated? Likely, pending detailed MRD questionnaire review
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Advergraphics
Internet AdverGraphics will vary somewhat based upon which Internet vehicles are used In addition to the standard advertisement AdverGraphics outlined on the previous page, for Internet
advertising we will also want to capture the degree of motion and the level of graphic delivery (flash & HTML)
Paid Search Engine Inclusion
• Subject line• Number of recipients• Response rate• HTML, Plain Text or both
• Size• Flash or other motion; y/n• Triggers for serving• Number of banner ads served• Proportion of click throughs
• Order in which Co is served up• Page location where it is placed• Ad or link• Size• Raw # of times served up• Proportion of click throughs
Email Banner
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Attribution
Attribution will manifest itself differently across the continuum of measurement options, however planned & systemic is what will be required to answer the insightful questions being asked by Marketing Leadership
ActivityMeasurement
Activity & AnalysesMeasurement
Planned & SystemicMeasurement
• Institute source coding on all marcom
• Can answer all of “What” & some of “Why”
• Precise understanding of market drivers
• A frame of reference for interpreting relative performance
• Can’t generalize learning• Ignores the cumulative effect
of advertising & attributes impact entirely to the most recent marketing event
• Limited understanding of interaction between marketing vehicles
• Institute source coding on all marcom
• Establish business rules for attribution across touchpoints
• Can answer all of the IMM questions; “What, Why & How”
• Can generalize & institutionalize learnings
• Able to quantify interactions between vehicles
• Remains dependent upon rigorous test design
• Must capture detailed “AdverGraphics”
• Scale the Call Center pilot
• Can answer some of the “What” happened
• Develop hypotheses about “Why”
• Ease of implementation• Short lead time to
implementation
• Can’t generalize learnings• Based entirely on consumer
recall which has been empirically proven as unreliable
• Assumes same response profile across channels
Characteristics
Disadvantages
Advantages
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Insight By Vehicle
A Combination of Media Generally Has A Greater Impact Than Any Individual Media Type.
TV Radio Print
• Impact per GRP tends to be lower than TV• Best if enjoyable and well branded• Benefits greatly from synergies w/TV and
can extend TV campaign• High level of targeting
• Print w/TV more likely to result in active consideration than TV alone
• Active consumption; fast wear out of individual execution
• Works best where reader is interested in category Otherwise need strong creative hook to overcome filters
• Messages perceived as more credible & less pushy
• Interest & prestige can be heightened by context
Internet Public Relations Event/Sponsorship• Active goal-seeking medium can help ads be
very effective• Recall on par w/TV1
• Can be effective even without click-through• ‘Rich Media’ #2 x’s more effective than
banners• High level of targeting & direct response• Possible irritation
Source: Millward Brown, Real-Time Marketplace Feedback
• Creative needs to be brand linked• Awareness responds to GRPs immediately• Position w/in commercial break• Flighting best when dispersed across
network/cable/spot & daypart• Need 100 GRPs/wk to breakthrough• Synergistic w/other media particularly when
there’s a schedule overlap
• Independent source creates greater credibility
• Works very effectively as a multiplier for other messages
• Tight linkage between event message and brand
• Can be effectively leveraged when part of brand multimedia campaign
• TV sponsorship can be as powerful as TV advertising
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Differences Between Media
Advertising Exposure Passive Active/selective
Product Category Effect Little Large
Attention-Getting Wearout Little Rapid
Need For Creative “Hook” Less High
Recall of Visual Elements Well remembered Less well remembered
Mental Processing Little High degree
TV Magazines
How Stored In Memory ST as Ad LT as Fact
Source: Millward Brown
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Brand Health Metrics
Consumer Engagement
Cycle
Top-of-mind awareness
• Presence Aided awareness Familiarity• Competitive
comparison Share of voice• Effective share of
voice
Hedonic evaluation• Understand positioning Recall key copy points Perceived rational
attributes & benefits Functional Process Consideration
? Relevance
Cognitive responses & judgments
• Factual recall Perceived emotional
attributes & benefits Purchase intent• Brand Portfolio Impact
– Family– Category
Current usage Usage trend Cross-utilization Frequency of consumer
interaction Brand strength Product performance
Attributes Advantages Deficits
Customer service satisfaction
• Customer loyalty Overall– Key proposition
elements Likelihood of switching
Next month With incentive
? Affinity? Relationship? Bonded
Brand Advocacy
Favorable AttitudesObjective
Brand Adv
Cognitive Responses & Consumer Judgments
“Brand Image & Equity”*
Factual Data & Recall“Brand
Salience/Relevance”
Measurement Considerations: Product Adv
Information & Action
*Note: Brand equity has a strong linear relationship for the next 2 years with Market Share (R2=5) & EBITDA (R2=.7)
Currently available Planned or readily incorporated? Likely, pending detailed MRD questionnaire review
ExpansionInvestmentConsideration InquiryAwareness
Source: Customer Ergonomics Analyses & MSI; “The Long & Short View of Marketing Metrics”, Tim Ambler
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Individual Advertisement Metrics
• Recall key elements• Content playback• Brand linkage• Communication clarity• Ease of understanding• Awareness index
– Cut Through– Branded
memorability– Enjoyment– Involvement
• Effective GRPs/TRPs• Effective “Share of
Voice”• Relative perception of
the amt. of advertising• Interest• Total Communication
Hedonic? Relevance• New news • Difference/
uniqueness Believability Trust/ confidence Reasonable
fees/value• Corp. values &
ethics• Persuasion Unaided & aided
consideration
• Perceived Advantage
Satisfaction w/customer service
• Likelihood to take action; call, click, or visit
Intention to invest• Previous
investment experience
• Knowledgeable Sales Reps
• Perceived advantage
• “Relative” wealth
• Brand affinity• Number of vehicles &
channels Frequency of
interaction• Perception of
relationship• Confidence & Security
− External Factors− Personal− Fidelity
Currently available Planned or readily incorporated? Likely, pending detailed MRD questionnaire review
Consumer Engagement
CycleExpansionInvestmentConsideration InquiryAwareness
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Unique Internet & Site Visit Metrics
Page & banner impressions
Unique visitors – Cookies 1 machine, logins for multiple pc’s
Total visitors Pgs viewed/visit• Effective GRP’s
Advertising & promotion click through
Visitor origin - Search engine - Paid Inclusion - Referral site• F.S. sites visited Time spent/ page
- calculated
? Visitors by ISP? Browser used - @
IP address level
Downloaded pages
Tool usage Site registration –
bare minimum
Repeat visitors Topics/categ
visited/session or /visitor
Page exited from Proportion
inquiries via Web
Trades Value of trade Opt-ins
Site registration – In depth & complete
Visit frequency Personalized Home
Page Alerts set up Elapsed time
between visits Time per visit Pages viewed per
visit Multi-channel
customers
• Many of the MRD metrics exclude Internet customers. This research will need to be supplemented or revised to reflect these customers too.
• Need to further explore syndicated metrics as Financial Services frame of reference; ComScore, Nielsen Net Ratings, Jupiter Media Matrix
All metrics #/%/$
Consumer Engagement
CycleExpansionInvestmentConsideration InquiryAwareness
Currently available Planned or readily incorporated? Likely, pending detailed MRD questionnaire review
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Communicating Insights
Communicating Insights Drives Organization Learning
Sequencing analytics Quick read vs. depth Standardized Deep dive
Establishing a frame of reference for objective interpretation Normative database Outside your industry
Creating institutional knowledge Best practices