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1© TNS 2010
December 8, 2010
Nevada Governor’s Conference Measuring Advertising Return on Investment
2© TNS 2010
TNS
World’s largest custom research business
Company owned offices in over 90 countries
Revenue exceeding $2.1 Billion (2009)
Largest travel research practice in the U.S
Over 14,500 employees
5© TNS 2010
The Special Sauce
One part…Talking to the right peopleOne part…Asking the right questionsOne part…Using the right toolsOne part…Making sure you are accurate
Talking to the right people
7© TNS 2010
Talking to the Right People
Advertising equals online researchBut not only online panels are equalHundreds but only threeManages equals maintenance equals representative equals trust Fortune 100 companies only use the top online panelsYou deserve the bestTop three spend millions a year in maintenance—biggest assetRather have 200 managed interviews than 500 unmanaged interviews
9© TNS 2010
Asking the right questions
We are not asking we are trickingBoth art and scienceQRE connects the left and rightIt is not brain surgery but close
11© TNS 2010
Using the right tools for the job
Trick and tease at the same time Teasing using means modelingHardware is complex but the outcomes are insightful
12© TNS 2010
Successful Ads Speak to the Mind and HeartA brand creates a series of expectations an unbranded product cannot. Expectations of a brand are driven by some combination of:
Performance benefits and judgments (Mind)Psychological benefits and social esteem benefits: “badge value” (Heart)
The emotional aspects of the relationship between consumers and brands are the crucial drivers of usage and commitment.
Our charter is to understand the balance between the mind and the heart. To optimize your marketing efforts it is critical to identify and understand the factors that need to be communicated and delivered to nurture commitment to your brand.
Strong Motivation /
Relationship
Brand Features
Functionality
Price/Value
Social Identity
Personality Aspirations
The Experience
mind heart
13© TNS 2010
Easy for competitors to duplicate
Not so easy; intrinsic to the brand
Features, Functionality, Value, Image
EMOTIONAL
How it makes me feel, how I want to
be perceived
Creating a Head and Heart Link Makes It Harder For Others To Compete With You
RATIONAL
Motivating Selling Proposition
Strong Brand Relationship
14© TNS 2010
Planning toolsMeasures and
understands consumer needs and how brands
satisfy them with interactive analysis
software
Identifies layers of need
and brandRecognizes there are
many layers of consumer needs and
brand image
Projective approachUses projective
photosets/collages qualitatively and
quantitatively to access the emotive layer
NeedScope©
Psychological framework
Uses a psychological model to provide a
framework for understanding needs
and brand image
NeedScope™
Receptivity
Affiliation
Dominance
Individuality
Outward directedExtroverted
Inward directedIntroverted
CONSUMER NEEDS
BRAND IMAGE
But How Do You Do This?...Groups Are Not Enough…NeedScope™
17© TNS 2010
reliable, solid
practical, suitableMore for women
Makes you feel well
good for families
ideal for leisure
warm, caringdown to earth, practical
composed, balanced
secure, protectedcalm, relaxed
sociable, friendlyoffers much space
Strategic insights: How the ad positions the brandVW Case study
FeelingPersonalitySocial Image
Product
18© TNS 2010
+ 3
Golf Plus overview
82%
High Motivation
47
35
6Recall Only
Involvement
Motivation
above Norm + 11
Average recall belowNorm -
Key Findings:Although recall of the ad is within the norm, Intrusive Interest is above norm, indicating that the ad has potential to break through the clutter.
The creative idea involves the target and motivation and involvement are clearly above the norm.
The ad shows the Golf Plus as a versatile, spacious family car.
The brand image conveyed by the ad is in line with the intended positioning. It is positioned as affiliative and depicted as open, caring down to earth.
Though the ad can be aired as it is there is room for improvement: As the last scene (the kangaroo) is a hindering element and respondents miss fun to drive,the last scene could be replaced by a scene demonstrating ‘fun to drive’.
reliable, solid
practical, suitableMore for women
Makes you feel well
good for families
ideal for leisure
warm, caringdown to earth, practical
composed, balanced
secure, protectedcalm, relaxed
sociable, friendlyoffers much space
reliable, solid
practical, suitableMore for women
Makes you feel well
good for families
ideal for leisure
warm, caringdown to earth, practical
composed, balanced
secure, protectedcalm, relaxed
sociable, friendlyoffers much space
reliable, solid
practical, suitableMore for women
Makes you feel well
good for families
ideal for leisure
warm, caringdown to earth, practical
composed, balanced
secure, protectedcalm, relaxed
sociable, friendly
reliable, solid
practical, suitableMore for women
Makes you feel well
good for families
ideal for leisure
warm, caringdown to earth, practical
warm, caringdown to earth, practical
composed, balanced
secure, protectedcalm, relaxed
sociable, friendlyoffers much space
20© TNS 2010
Traditional Media
(TV, Print,Radio)
Marketer
Customer
Push
Full Control
Passive, but can turn it off
Internet(Banners,Websites,
Micro-sites)
Push/Pull
Full Control
Interactive, but consumer is still reacting a controlled media
User Generated
Content andadvertising
Push
Less Control
In some cases a partnership, in others consumer has complete control
Social Networking(YouTube, Facebook,MySpace)
No control, but can Influence
Complete Control
Blogs &Editorializing
No control, but can Influence
Complete Control
WOMBuzz
(Traditional& Digital)
No control, but can Influence
Complete Control
Digital Media(Mobile,
Podcasts,Email,
Etc), In-store,Sports,Events
Push/Pull
Full control of content
Consumer has more power to tune out
BRAND GENERATEDMEDIA
CONSUMER GENERATEDMEDIA
22© TNS 2010
How do you measure effectiveness…
When only 1 out of 1000 people who views an online ad will actually click on that ad… What about the impact of the ad on the other 999 people…If we go to www.yahoo.com today at 3 PM, we will probably see different ads on the pageHow exposures are needed…
23© TNS 2010
TNS Panel Tracking for Digital Media Effectiveness
Digital Campaign TrackingWe know every time a TNS panelist sees one of our client’s tagged ads, websites or e-newsletters.
Pop-Ups
Ad or page served with TNS tag
Exposed TNS panelists complete survey TNS reports on campaign and brand metrics
24© TNS 2010
Control & Test Samples are collected & later
compared to measure the effectiveness of the
campaign.
Both groups of panelists are invited to
take the exact same survey.
Campaign Effectiveness: TNS uses groups of control vs. exposed panelists to ISOLATE the impact of the digital campaign
CONTROL GROUP (Have NOT seen the campaign)
Same demographics
TEST GROUP(Exposed to the campaign)
25© TNS 2010
Optimum, 3.66
Average, 1.42
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8Exposures
Perfo
rman
ce
“Provides good featured deals”
Frequency of exposure to the online ads is the key
Actual average exposure for this campaign: cost-
ineffective
Spending more, but not getting
much more
The sweet spot: best bang for the buck
The optimal frequency of exposure typically ranges from 3 to 8, depending on the metric and the campaign.
Typical response curve analysis for a “message association” by frequency of exposure to the ads
Are you Listening to What Travelers are Saying?
27© TNS 2010
Through Social Media …
Understand whether your ad campaign is workingIs your positioning Is their an amenity that you are forgetting aboutAre your competitors winning or losing the destination selection process and why
28© TNS 2010
Making sense of so many voices is a challenge…
Monitoring conversations…but from which sites? Can you filter all the noise: spam and dupes? What matters?
Quantifying trends…what does total volume and sentiment really tell you? Is there a way to assess and analyze in a meaningful way?
Obtaining qualitative insights… how do you derive actionable information from the data?
Amassing posts…how far back in time? Which voices are more influential?
29© TNS 2010
Cymfony is an option
Traditional & social media – radio, tv, blogs, discussion boards, reviews, magazines, newspapers, trades
Select information most relevant for each client
Cleanse of spam and duplicates -and-Apply value-added data
Segment/analyze automatically by brand, concept, person, theme thru
advanced text mining
10M pieces of content every day
Additional human analysis
Minutes
30© TNS 2010
What negative messages are present for Premium Hotel and competitors?
(n=765)Comfort Inn
Room Quality & Features
Price/Value
Staff/Service Quality
Location & Convenience
Hotel Features & Functions
Room Cleanliness
Food/Drink
General Hotel Cleanliness
Policies
Check In/Out
Brand Reputation
Hotel Appearance
Safety & Security
Reservation System
Rewards
6%
4%
3%
3%
3%
2%
2%
2%
1%
1%
1%
1%
1%
1%
0%
0% 10% (n=241)Comfort Suites
3%
3%
0%
3%
3%
0%
2%
1%
0%
0%
0%
0%
1%
0%
0%
0% 10% (n=679)Holiday Inn Exp.
2%
3%
1%
3%
3%
1%
1%
0%
0%
0%
0%
0%
0%
0%
1%
0% 10%
Negative Message Presence(Among Rated Documents, Jan-Jun08)
(n=405)La Quinta
5%
3%
1%
2%
3%
2%
1%
2%
1%
0%
0%
1%
0%
0%
1%
0% 10%(n=584)
Fairfield Inn
4%
2%
1%
2%
3%
1%
2%
1%
0%
0%
0%
0%
0%
0%
0%
0% 10%
Consumers discussed negative-tone dimensions less frequently, and pickup across the brands was highly fragmented as compared to the same dimensions with positive tone. Though Premium Hotel’s negative comments were distributed fairly uniformly across the various hotel attributes, the brand received slightly more negative comments about Room Quality and Staff Quality than the competition.
Premium Hotel Premium Suites Resort Place Modern B&BVictorian Inn
31© TNS 2010
Best Practices in Social Media Drive Business ResultsAberdeen study found that companies with “Best-in-Class” social media programs have seen significant business benefits
Improved time to marketing information*
86%Improved customer satisfaction levels
94%
Improved ability to identify and reduce risk
84%Improved number of actionable insights
84%
Source: Aberdeen Group* Time between marketing activity and delivery of results to decision-makers
33© TNS 2010
Why Measure
They drove their marketingResulting in sound accountability
34© TNS 2010
The NCOT Used the Right Ingredients
They leverage a managed online panelSpent time and resources designing the right questionsUsed tools to provide insightsMeasured holistically to be as accurate as possible
Advertising Awareness
36© TNS 2010
0.30.21 0.18
0.49
30%
19% 19% 21%
10%
43%40%
16%22%
18%
7%
49%
Nevada Colorado Arizona Utah Oregon California
Advertising awareness: Trends
Q5a. Please indicate which of the following states you have seen any advertising for in the past 3 months.
66% 64% 67%
Any Ad Awareness (6 States)
Spring 2008 Spring 2009 Spring/Summer 2010
WESTERN MARKET / TOTAL 7 DMAs (n=3,621)
Specific Ad Recall: NCOT Ads
38© TNS 2010
NCOT ad awareness/exposure by market
47%54% 56%
42%33%
38%
72%
38%
12%14% 11% 14%
7% 8%
22%14%
27% 31%27% 27%
21% 24%
37%
23%22%
31% 33%
12% 12% 12%
48%
11%
Total 7 DMAs Los Angeles Las Vegas San Francisco Phoenix Salt Lake City Reno Sac/Stkn/Modesto
Saw Any NCOT Ad Saw Print Ad Saw/Exposed to Online (Internet/Banner/Email/Mobi) Ad Saw TV Commercial
NCOT Ad Awareness
n= 3,621 1,539 198 682 488 268 65 381
Abridged: QI-1a. Which, if any, of these five different print ads that advertise Nevada as a leisure destination have you seen before? Tagged Ads: 13 different types of Internet/banner/email ads were tagged as respondents viewed them.QI-1a105. Have you seen the mobile phone (mobi) ad before?Q52a; Q58. Have you seen one of these three commercials before on TV?
39© TNS 2010 QI-1a. Below you will see five different print ads that advertise Nevada as a leisure destination. Please indicate which, if any, of these ads you have seen before.
NCOT print ad awareness
NCOT Print Ad Awareness(Base Noted in Legend)
NV GolfHOG
9% 10%5%
9%5% 5%
12%9%
1% 2%0% 1% 0% 0% 2% 1%
5% 5% 4%7%
3% 2%
8% 8%
1% 2% 1% 1% 0% 1% 2% 0%2% 3% 1% 2% 2% 3% 2% 1%1% 2% 0% 1% 0% 0% 0% 0%
4% 4% 6% 5%2% 3%
9%5%
Total 7 DMAs Los Angeles Las Vegas San Francisco Phoenix Salt Lake City Reno Sac/Stkn/Modesto
Saw Any NCOT Print Ad Saw HOG Saw Geyser Saw Golf_purse Saw HWY50 Saw NVgolf Saw, Don't Remember Which
n= 3,621 1,539 198 682 488 268 65 381
Geyser Golf Purse HWY 50
40© TNS 2010 QI-1a105. Below you will see one mobile ad used to advertise Nevada as a leisure destination. Please indicate if you have seen it before.
NCOT mobile phone (mobi) ad awareness
6%
10%
3%5%
3%0% 0%
2%
Total 7 DMAs Los Angeles Las Vegas San Francisco Phoenix Salt Lake City Reno Sac/Stkn/Modesto
Saw Mobi IPHONE300
NCOT Mobile Phone Ad Awareness
41© TNS 2010
NCOT online (tagged) ads(used by multiple publishers unless marked as Elead)
Not a survey question. Software tags respondents who view the ads at the time that they see them.
Elead
Elead
Ad Impact
43© TNS 2010
22%33%
23%33%
11%18%
13%
23%
11% 12%
3%
14%
3% 6%13%
10%
PHOENIX n=204 SALT LAKE CITY n=91 RENO n=30 SAC/STKN/MODESTO n=94
32%38%
18%28%
18% 21%15% 16%13% 16%
5%11%9%
13%
2%8%
TOTAL 7 DMAs n=1,433 LOS ANGELES n=681 LAS VEGAS n=83 SAN FRANCISCO n=250
NET POSITIVE Sought More Information Convinced to Visit Lengthen Stay/Add Attractions
Perceived impact of Nevada’s advertising
Q8a. How has the advertising you’ve seen affected your leisure travel plans?
Perceived Positive Impact of NEVADA’s Advertising by Market (Unaided)(2010 Ad Aware Base Noted in Label)
44© TNS 2010
15% 8% 11% 3% 7%22%
3% 4%
30%23%
16%
3%8% 7%
23%33% 34%
42%
27% 26%
4% 7% 10%
27%
7%
SAN FRANCISCO n=250 PHOENIX n=204 SALT LAKE CITY n=91 RENO n=30 SAC/STKN/MODESTO n=94
14% 17% 16% 17%7%15% 17% 19% 16% 18%
11% 14% 13% 10% 11%
36%
49%
38% 42%
12%7% 10% 9% 6%
22%
TOTAL 7 DMAs n=1,433 Past Year NV Visitor n=704
Aware NCOT Ads n=787 LOS ANGELES n=681 LAS VEGAS n=83
Consider Summer Trip in NV Plan Trip to Lake Tahoe Plan Trip to Reno/Sparks Plan Trip to Las Vegas Plan Trip Elsewhere in NV
Advertising Inspiration (Nevada Only)
Q8b. Did advertising for travel to the state of Nevada inspire you to...
NEVADA RESULTS: Advertising Inspired Respondents to . . . (2010 Ad Aware Base Noted in Label)
Advertising Byproducts
46© TNS 2010 Q6b. For each of the attributes mentioned below, please select the destinations you prefer . . . % selecting Nevada.
Preference for NV by ad awareness(Rank: Importance in Western Market)
75%28%
45%41%40%
32%38%
24%39%
32%34%
44%64%
38%61%
36%25%
55%50%52%
38%46%43%40%
50%46%
Can Gamble There (2.2)
Offers Winter Sports/Activ ities (2.4)
Experience Western History/Culture (2.9)
Great Place to Shop (3.1)
Outdoor Terrain/Adventure (3.1)
Easy to Use State Travel Web site (3.2)
Summer Sports/Activ ities (3.2)
Good for Family/Children (3.2)
Interesting Small Towns (3.4)
Accurate State Travel Web site (3.5)
Truly Different Destination (3.5)
Offers Unique Activ ities (3.6)
Variety of Entertainment (3.7)
Explore/ Sightsee by Car (3.7)
Variety of Dining Options (3.8)
Preferred O/N Leisure Vacations (3.8)
Clean/ Unspoiled (3.9)
Is Easily Accessible (4)
Good Service (4.1)
Lots to Do (4.1)
Beautiful, Scenic (4.2)
For Someone Like Me (4.2)
Friendly/ Welcoming Place (4.2)
Can Relax (4.3)
Reasonable Hotel/ Meal Costs (4.3)
Good Value for Money (4.4)Good Value for Money (4.4)
Reasonable Hotel/Meal Costs (4.3)
Can Relax (4.3)
Friendly/Welcoming Place (4.2)
For Someone Like Me (4.2)
Beautiful, Scenic (4.2)
Lots to Do (4.1)
Good Service (4.1)
Is Easily Accessible (4.0)
Clean/Unspoiled (3.9)
Preferred O/N Leisure Vacations (3.8)
Variety of Dining Options (3.8)
Explore/Sightsee by Car (3.7)
Variety of Entertainment (3.7)
Offers Unique Activities (3.6)
Truly Different Destination (3.5)
Accurate State Travel Website (3.5)
Interesting Small Towns (3.4)
Good for Family/Children (3.2)
Summer Sports/Activities (3.2)
Easy to Use State Travel Website (3.2)
Outdoor Terrain/Adventure (3.1)
Great Place to Shop (3.1)
Experience Western History/Culture (2.9)
Offers Winter Sports/Activities (2.4)
Can Gamble There (2.2)
Aware of NCOT ads Not Aware of NCOT ads
77%24%
40%37%35%
25%33%
21%32%
27%30%
42%62%
35%57%
29%19%
51%43%48%
31%41%38%
34%45%
41%
Can Gamble There (2.2)
Offers Winter Sports/Activ ities (2.4)
Experience Western History/Culture (2.9)
Great Place to Shop (3.1)
Outdoor Terrain/Adventure (3.1)
Easy to Use State Travel Web site (3.2)
Summer Sports/Activ ities (3.2)
Good for Family/Children (3.2)
Interesting Small Towns (3.4)
Accurate State Travel Web site (3.5)
Truly Different Destination (3.5)
Offers Unique Activ ities (3.6)
Variety of Entertainment (3.7)
Explore/ Sightsee by Car (3.7)
Variety of Dining Options (3.8)
Preferred O/N Leisure Vacations (3.8)
Clean/ Unspoiled (3.9)
Is Easily Accessible (4)
Good Service (4.1)
Lots to Do (4.1)
Beautiful, Scenic (4.2)
For Someone Like Me (4.2)
Friendly/ Welcoming Place (4.2)
Can Relax (4.3)
Reasonable Hotel/ Meal Costs (4.3)
Good Value for Money (4.4)
Ad awareness strengthens image:
Specific NCOT ad aware travelers more often prefer Nevada on every attribute than those not aware.
47© TNS 2010
Amount of travel
Q1. How many leisure trips that required an overnight stay have you taken in the past 12 months?Q10b. Please indicate the total number of leisure trips you have made to Nevada in the past 12 months (overnight).
0.9 1.11.5
0.8 0.7 0.7
1.9
0.81.6
2.41.5 1.1
2.7 2.81.3 2.8 2.7 2.7
2.0
2.6
2.4
2.0
2.62.8
3.63.9
2.8
3.63.4 3.4
3.93.4
4.04.4
4.1 3.9
Total 7 DMAs
Los Angeles Las Vegas San Francisco
Phoenix Salt Lake City
Reno Sacra-mento/
Stockton/ Modesto
NV Visitor: Past 3 Years
NV Visitor: Past Year
Future Nevada Visitor
Saw/Heard Any NCOT
Ads
Elsewhere
To Nevada
Total (Top of Bars)
Average Number of Overnight Trips in Past 12 Months (If Any)
n= 3,621 1,539 198 682 488 268 65 381 2,136 1,415 2,049 1,687
Return on Investment (ROI)Spring/Summer 2010
49© TNS 2010
ROI FY 2010: NCOT print/online/.mobi/TV ads
NCOT Ad awareness based to print ads, TV ads, and mobile phone ads shown to respondents plus tagged online exposures; impact based to Q8a or b. Market = 7 DMAs: Los Angeles, Las Vegas, San Francisco, Phoenix, Salt Lake City, Reno, and Sacramento/Stockton/Modesto.* Liberal calculations use the number of leisure travel HH who saw/heard ads and visited Nevada** Mid-Point calculations use the sum of the Liberal HH plus Conservative HH (saw/heard ads, visited, positive impact) divided by two
FISCAL YEAR 2010 Conservative Liberal* Mid-Point**Total Households 15,340,020 15,340,020 15,340,020% Taking a Leisure Trip in Past 12 Months 69.7% 69.7% 69.7%Base: Qualified HH Taking a Leisure Trip 10,684,324 10,684,324 10,684,324% Seen or Heard NCOT Ad for Nevada: 42.9% 42.9% 42.9%# Leisure Travel HH Who Recall NCOT Ad 4,583,575 4,583,575 4,583,575% NCOT Ad: Net Seen/Visited 16.4% 16.4% 16.4%# Leisure Travel HH Seen & Visited 1,752,229 1,752,229 1,752,229% NCOT Ad: Net Seen/Visited/Positive Impact (Q8a/b) 5.0%# Leisure Travel HH Seen & Visited & Positive Impact 528,874$ from Leisure HH (Non-Gaming/Non-Lodging/Non-Transport TO/FROM). $670,397,813 $2,221,115,988 $1,445,756,900$ from Leisure HH (Lodging) $252,942,467 $838,031,609 $545,487,038$ from Leisure HH (Gaming) $384,239,412 $1,273,035,629 $828,637,520$ from Leisure HH $1,307,579,693 $4,332,183,226 $2,8819,881,459Direct Visitor Spending per NCOT Ad $ $365.89 $1,212.23 $789.062009 Direct visitor Spending per NCOT Ad $ for Comparison $220.53 $716.29 $468.412008 Direct Visitor Spending per NCOT Ad $ (for Comparison) $257.32 $740.76 $499.04Tax Revenue (Non-Gaming/Non-Lodging Taxes) – State Tax Rate 8.1% $54,302,223 $179,910,395 117,106,309
Tax Revenue (Lodging Taxes) – 12% -- Conservative Average $30,353,096 $100,563,793 $65,458,445Tax Revenue (Gaming Taxes) = 6.599% $25,355,959 $84,007,621 $54,681,790Total Tax Revenues $110,011,278 $364,481,809 $237,246,544
Operating Budget $10,591,800 $10,591,800 $10,591,800Net Effect on State $99,419,478 $353,890,010 $226,654,744Tax Revenue (State & Local Taxes) per NCOT Ad $ (NCOT Ad Production + Placement Costs) $30.78 $101.99 $66.392009 Bottom Line (for Comparison) $16.61 $53.95 $35.282008 Bottom Line (for Comparison) $19.50 $56.14 $37.82
Closing Remarks…
51© TNS 2010
Takeaways …
It is the right peopleYou need to trick themYou need the right toolsAccuracy means accountabilityI love numbers but most people don’tTurn the numbers into jobsTurn the numbers into amenities or lack their ofTurn the numbers into dollars that people can relate to
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