Upload
chloe-lee
View
220
Download
3
Embed Size (px)
Citation preview
XMOS Research ReviewXMOS Research ReviewThe New Marketing MixThe New Marketing Mix
Rex Briggs, Marketing Evolution
We are a people of tradition, but the past no longer serves us. Learn from the present and focus on the future.
Have you re-evaluated Have you re-evaluated your marketing mix?your marketing mix?
The Media Landscape Has ChangedThe Media Landscape Has Changed
The Past is OutdatedThe Past is OutdatedOur conceptual models of media
and advertising are outdated
1. Media and advertising in context2. XMOS learning3. Closing thoughts
Our conceptual models of media and advertising are outdated
Old WayMedia Magnetism
Active Attention
Learning Theory
New WayAdvertising Wallpaper
Passive Attention
Absorption Theory Brand salience & enhancement
The Past is OutdatedThe Past is OutdatedIn the Beginning, Media Mesmerized UsIn the Beginning, Media Mesmerized Us
We have learned more in the past We have learned more in the past 10 years about how the brain 10 years about how the brain works than we learned in the works than we learned in the
previous 100 yearsprevious 100 years
Learning theory is rarely Learning theory is rarely applicable in today’s media applicable in today’s media
environmentenvironment
Advertising’s effect is more Advertising’s effect is more subtle, and impossible for subtle, and impossible for
consumers to accurately gauge consumers to accurately gauge on their ownon their own
Our conceptual models of media and advertising are outdated
Old WayMedia Magnetism
Active Attention
Learning Theory
New WayAdvertising Wallpaper
Passive Attention
Absorption Theory Brand salience & enhancement
Orange Juice Case ExampleOrange Juice Case Example
Control group:
Branded OJ Taste Test
Exposed group:
Ad exposure, then
Branded OJ Taste Test
5.1
1 5 10
Overall taste rating:
7.6
1 5 10
Overall taste rating:
Illustrative data, see JAR 2004 for case example
It takes a lot of courage to release the familiar It takes a lot of courage to release the familiar and seemingly secure, to embrace the new. and seemingly secure, to embrace the new.
Alan CohenAlan Cohen
But there is no real security in what is no But there is no real security in what is no longer meaningful. longer meaningful.
The Key To Understanding The New Landscape:
Implication to marketers:
Set aside your assumptions and see what works.
Implication to research:Measure the effect through observation
- Don’t guess at it.
- Don’t ask consumers to guess at an ads influence!
Measuring AdvertisingMeasuring Advertising
• Never ask respondents if they took a certain action because of advertising– Instead, observe the effect
– Advertising is a low involvement communication and is not generally perceived as a cause for action (even when it is)
42.0%
64.0%
Measuring Advertising EffectMeasuring Advertising Effect
Brand Image: Considering everything you have seen or heard about the All New 2004 Ford F-150 and your own personal opinions, please indicate the degree to which you Agree or Disagree with the following statements. (Top-Two box- 5 Point Scale)
“Good looking”
BeforeCampaign
AfterCampaign
++22%22%++22%22%
*significant value are at a 95% confidence level
XMOS 1.01. Unilever’s Dove
XMOS Branding - 1st wave2. McDonald’s3. Colgate Total4. Kimberly Clark Kleenex 5. AstraZeneca NexiumXMOS Branding - 2nd wave6. Universal Pictures Home Video 7. ING8. VeriSign9. Sensodyne (UK)10. Carlsberg (Denmark)11. Charlie’s Angels (Denmark)
XMO$ Sales & Branding12. Ford F-15013. P&G’s Olay14. Kraft’s Jell-O15. Nestlé's Coffee-mate
15 Public Studies to Date15 Public Studies to Date
Online Advertising ImpactOnline Advertising Impact
• Online achieves direct response• Online builds awareness• Online communicates brand image• Online builds preference• Online sells products offline
Better ResultsBetter ResultsBetter ResultsBetter ResultsSame BudgetSame BudgetSame BudgetSame Budget
The Headline Conclusion
Results in a Results in a 14% increase14% increase in purchase intent in purchase intent
Same Budget, Same Budget, Better ResultsBetter Results
Results in a Results in a 14% increase14% increase in purchase intent in purchase intent
Same Budget, Same Budget, Better ResultsBetter Results
Optimizing OnlineOptimizing Online
Summary Of XMOS ResultsSummary Of XMOS Results
Brands
DoveChickenFlatbread
Total Kleenex NexiumET Home
Video ING Verisign Jell-OCoffee-mate
Olay F150
Reco’d % Online 15% 13% 11% 10%
10-15% 19% 15% 11% 4% 5%
TBD
**** 6%*
Brand Awareness -- +8% -- -- -- -- ** *** -- -- -- --
Brand Image -- -- +34% +7%
+10-20%
-- -- -- -- -- -- --
Purchase Intent +14% -- +20% -- +1-5% +1491% -- -- -- -- -- --
Sales-- -- -- -- -- -- -- -- +4% +7%
In Field
+5%
** Not the optimized level, but considered an interim stepNot the optimized level, but considered an interim step
**** Brand ran Optimal level so there was no gain from more online spendingBrand ran Optimal level so there was no gain from more online spending
****** Because of differing objectives, cross media comparison was inconclusiveBecause of differing objectives, cross media comparison was inconclusive
**** **** Results based on three months of analysis, full analysis is six months, and is still in progressResults based on three months of analysis, full analysis is six months, and is still in progress
Why does increasing Online produce better Why does increasing Online produce better results within the same budget?results within the same budget?
Online advertising affects branding metrics
Online advertising is typically more cost efficient at producing branding gains
Online reaches those who would otherwise not get the advertising message
CoverageCoverage
EffectivenessEffectiveness
ValueValue
Why does increasing Online produce better Why does increasing Online produce better results within the same budget?results within the same budget?
Online advertising affects branding metrics
Online advertising is typically more cost efficient at producing branding gains
CoverageCoverage
EffectivenessEffectiveness
ValueValue
Build awareness, reinforce key image attributes and boost purchase intent
Generate sales
Brand differentiation and sales
Generate purchase intention and sales
Marketing ObjectivesMarketing Objectives
Universal Home Video – E.T. DVD ReleaseUniversal Home Video – E.T. DVD Release• Launch Goals:
Communicate the release of E.T. DVD
Position brand as one of the most beloved movies of all time, with new footage & enhanced visual effect, a must buy DVD
• Primary Objective: Generate purchase interest
Summary of branding gainsSummary of branding gains
An unforgettable masterpiece for the whole family
37.5%
38.9%
43.0%
47.9%
10% 20% 30% 40% 50%
Stat sig.
Stat sig.
TV + Rich Media Overlay
TV + Online
TV Only
Pre-Campaign
Based upon what you have seen or heard, how much would you say each statement describes the movie E.T. The Extraterrestrial on DVD and video…(Describes completely/Describes somewhat)
Thinking about E.T. The Extraterrestrial, how likely are you to buy the DVD or Video
However, TV & Online do Drive Purchase IntentHowever, TV & Online do Drive Purchase Intent
Definitely will/Probably will buy (net)
21.4%
19.9%
22.7%
25.4%
0% 10% 20% 30%
Stat sig.
Stat sig.
TV + Rich Media Overlay
TV + Online
TV Only
Pre-Campaign
Findings: TV alone does not affect purchase intent
However, the combination of Online advertising and TV does produce a statistically significant impact
Moreover, TV and the overlay Online execution makes an even bigger impact
TV Built Awareness but Not Purchase IntentTV Built Awareness but Not Purchase Intent
0
10
20
30
40
50
60
70
80
Brand Awareness
Purchase IntentPurchase Intent
% Pre-TVTV
Campaign Post TV Campaign
Rich Media 6½x More Cost Effective TVRich Media 6½x More Cost Effective TVBased on Relative Cost Index against EffectivenessBased on Relative Cost Index against Effectiveness
Summary
Rich Media
OverlayOnline
Banners TV
DVD Release Awareness 100 1079 192
Brand Image Avg (top box) 100 339 648
Purchase Intent (def/probably) 100 315 No liftN.A.
However, the CPM was only 2X However, the CPM was only 2X Online Online 100100TV TV 169169 Rich Media OverlayRich Media Overlay 299299
However, the CPM was only 2X However, the CPM was only 2X Online Online 100100TV TV 169169 Rich Media OverlayRich Media Overlay 299299
Universal: Major Gains with OnlineUniversal: Major Gains with Online
0%
2%
4%
6%
8%
10%
12%
14%
Before After
PurchaseIntent
Brand Image
ReleaseAwareness
+31%
+1491%
+107%
Absolute gains (bar chart) and % lift
2%
81%
17%6%
94%
TV
Online
Rich Media
Offline Sales ResultsOffline Sales Results
• XMOS:– Ford– AstraZeneca– Procter & Gamble Olay– Kraft Jell-O– Nestle Coffee-mate
• Other sales studies– A dozen CPG/FMCG studies by IRI– Ten CPG/FMCG studies by AC Nielsen– Pharma marketing mix by DoubleClick
70.4%
77.4%
The Addition of Online Builds BrandThe Addition of Online Builds Brand
Control n= 468; Branded n=469; Coupon n= 465
Purchase Intent: The next time you buy dry gelatin mix that comes in a box, what is the probability that you will buy Jell-O gelatin mix? (Top 2 box- 11 point Juster Scale)
All significant values are at a 95% confidence level
• Online advertising increases purchase intent by 7 points
Offline Offline +
Online
Purchase Purchase Intent Lift: Intent Lift:
++7%7%
Purchase Purchase Intent Lift: Intent Lift:
++7%7%
Online Sells Product OfflineOnline Sells Product Offline
*All volume numbers above are weekly volume per 100 Households
0.920.99
Control* Exposed to Online Ad
Average Weekly Volume per 100 HouseholdsMeasured in Ounces
Sales Lift: Sales Lift:
++7.5%7.5%
Sales Lift: Sales Lift:
++7.5%7.5%
Incremental Volume
+.1 oz •Online advertising resulted in a 7.5% sales volume lift
Jell-O Sales ROIJell-O Sales ROI
23
53
-4
-21
-51
30
83
Online frequency
=9.8
Online frequency
=7.0
Calculated National Theoretical Recommended
frequency level
ROI: Payback of Each Media Vehicle per Dollar Spent
Above average
ROI
Below average
ROI
Direct TV
Direct Print
Radio Trade FSI
Online
43.0%
50.0%
The Addition of Online Builds BrandThe Addition of Online Builds Brand
Brand Image: Considering everything you have seen or heard about Coffee-mate Non-Dairy Liquid Creamer and your own personal opinions, please indicate the degree to which you Agree or Disagree with the following statements: (Top-Two box- 5 Point Scale)
• Online advertising increases five out of eight key metrics
Offline Offline +
Online
Average Average increase increase
++7%7%
Average Average increase increase
++7%7%
Control n= 468; Branded n=469; Coupon n= 465
Results shown are for branded campaign using an average of all attributes
*All significant values are at a 95% confidence level
And Again, Online Builds SalesAnd Again, Online Builds Sales
*Control Panel=606 Exposed Panel=1,127. All volume numbers above are weekly volume per 100 Households**Statistically Significant at the 95% confidence level
12.914.2
Control* Exposed to Online Ad
Average Weekly Volume per 100 HouseholdsMeasured in Ounces
Sales Lift: Sales Lift:
++10%10%
Sales Lift: Sales Lift:
++10%10%
•Online advertising resulted in a 10% sales volume lift
Incremental Volume
+1.3oz
Coffee-mate Sales ROICoffee-mate Sales ROI150
-20-29
28
Online Recommended
Level
ROI: Payback of Each Media Vehicle per Dollar Spent
TV
Consumer Promotions Trade
Online
Above average
ROI
Below average
ROI
TV and Online RoadblocksTV and Online Roadblocks(Purchase Intention)(Purchase Intention)
Both are effective
But the roadblock
is more cost efficient
Individual Media Effects Led by OnlineIndividual Media Effects Led by OnlineBranding Metrics SummaryBranding Metrics Summary
TVMaga-zines
Road-block Online
Ad Recall +3pts +13pts +6pts +15pts
Familiarity Not Sig +11pts Not Sig +10pts
Avg Brand Image Attributes Not Sig +8pts Not Sig +9pts
Purchase Consideration +5pts +6pts +4pts +6pts
Shopping Not Sig +4pts +6pts +6pts
Purchase Intention (unaided) +2pts +3pts +5pts +12pts
Online is a MAJOR contributor to successOnline is a MAJOR contributor to success
Intern
etIn
ternet R
eachR
each
55%55%
or2.22.2
MillionMillion Consumers Consumers interested in interested in buying F-150 buying F-150 because of because of Online adsOnline adsOnline’s ImpactOnline’s Impact
==P
urch
aseP
urch
ase In
tentio
n In
tentio
n
+6.8%+6.8%
•Weighted average of Roadblock and Online (impact of roadblock x reach of roadblock + impact of online in-market + reach of in-market) / sum of reach = weighted impact
Purchase Consideration Impact Efficiency Purchase Consideration Impact Efficiency Relative Cost IndexRelative Cost Index (ROMO)(ROMO)
Brand Metric:Purchase Consideration (top 2)
Relative Cost Index
Sample Cost
TV 2153 $21.53
Magazine 354 $3.54
Roadblock 196 $1.96
Online 100 $1.00
Interpretation: If it cost Online $1 (indexed of 100) to increase purchase consideration, then it cost $1.96 for the roadblock, $3.54 for magazine and $21.54 to TV to achieve the same increase.
Online’s contribution to Online’s contribution to salessales
Roadblock
In-market ads
21% sales lift over control group**
That’s 6% of total sales caused by Online advertising
** 28% actual lift, 21% represents a more conservative figure to account for heavier media delivery. 21% lift accounts for 6% of total all new F-150 trucks during measurement period.
Ford Sales AnalysisFord Sales Analysis
• 500,000 F-150’s sold annually
• Online was 6% of sales, or 30,000 trucks
• Results in $750,000,000 annual F-150 sales
Tracked Buying of Control & Exposed Group
Tracked Buying of Control & Exposed Group
@ $25,000 per Truck
@ $25,000 per Truck
What if Ford Ran Increased Online?What if Ford Ran Increased Online?
• Online included Roadblocks & In-Market
• Plan would then sell +5%, or 25,000 trucks
• Results in additional $625,000,000 annual sales
Optimization and Judgment suggested
+6% increase in Online
Optimization and Judgment suggested
+6% increase in Online
@ $25,000 per Truck
@ $25,000 per Truck
Brand Tracking And ROI ModelingBrand Tracking And ROI Modeling
SalesHiLow
Branding
Hi
Low
Sales lift:Sales lift:NexiumNexium 6.0% 6.0%Jell-OJell-O 7.5% 7.5%Coffee-mateCoffee-mate 10.0%10.0%OlayOlay 12.5%*12.5%*Ford F-150Ford F-150 21.0%**21.0%**
*Mid-point data only. Campaign is still in field, Reported % increase in household buy-rate. Actual volume increase were higher.** 28% actual lift, 21% represents a more conservative figure to account for heavier media delivery
Jell-O
OlayCoffee-mate
Room for improvementRoom for improvement
• Of the last 5 XMOS program, creative testing was done prior to the study launch
– 2 brands found 1/2 the ads were not effective
• Diluting the effectiveness of the campaign
– 2 brands discarded ALL ads, starting all over
• Both developed better ads that scored much better
– Only 1 brand’s ads required no adjustment
Measuring Effectiveness:Measuring Effectiveness:Creative TestingCreative Testing
Branding Metrics #4
Awareness- Unaided not sig
Awareness- Aided +3%
Purchase Probability (top 2 box)* not sig
Average Branding Attributes not sig
Message Association (love the skin your in) +4%
* Ad 5 show directionally positive increases in purchase probability
Point difference over control
Individual Media EffectsIndividual Media EffectsBranding Metrics
Online (revised)
Awareness- Unaided +11%
Awareness- Aided not sig
Average Branding Attributes +9%
Purchase Probability (top 2 box) +12%Offline n =573
Offline +Online n =547
Point difference over control
Why does increasing Online produce better Why does increasing Online produce better results within the same budget?results within the same budget?
Online advertising affects branding metrics
Online advertising is typically more cost efficient at producing branding gains
Online reaches those who would otherwise not get the advertising message
CoverageCoverage
EffectivenessEffectiveness
ValueValue
The Old Marketing Mix Is The Old Marketing Mix Is NO LONGER OPTIMALNO LONGER OPTIMAL
Billions are lost due to sub-optimal marketing mix
The Key To Improving Marketing ROIThe Key To Improving Marketing ROI
• Set aside old, outdated assumptions and measure what produces the best ROI
• If you hope to make advertising more profitable, you had better measure what’s working, and what’s not
Applying the New Learning:Applying the New Learning:
• What is the quality of your ads? – Do you run a live pre-test to optimize them?
• BEWARE of norms (make sure the comparisons are meaningful)
– The financial value of strong creative can’t overstated
The Art and Science of The Art and Science of Developing a Strategy is Developing a Strategy is
SIMPLESIMPLE
SIMPLE– Strategic – Insights, – Measurement, – Planned – Learning by – Experimentation
SIMPLE - ExplainedSIMPLE - Explained
• Strategic Insights– Research provided knowledge about the consumer’s motivations– Research provided insight about competitive positioning– Defining and segmenting your audience based on motivations and
reachability through media– Understanding and developing the soul of your brand
• Measurement– Advertising delivery and effectiveness measurement
• Strategic (XMOS) versus tactical measurement (GRPs)
• Planned Learning by Experimentation – Planned learning is different from ad hoc research. – It begins by pin-pointing knowledge gaps, prioritizing learning and
taking a longer-view of addressing these issues
4 stage approach to using research to understand the impact and value of Online in your media mix.
Phase 1: Online campaign branding effectivenessPhase 2: XMOS Branding or Online Sales impactPhase 3: XMOS: Online in Marketing Mix ModelsPhase 4: XMOS: Ongoing Marketing Mix and Brand Tracking Measurement
Research Roadmap for Integrating Online MediaResearch Roadmap for Integrating Online MediaB
rand
’s T
otal
O
nlin
e S
pend
Time
$1,000k
$500k
$100k
Phase 1 Phase 2
Phase 3
Phase 4
RecommendationsRecommendations
What can you do?Form a working group
• Include key brand, agency and measurement team members
1. Examine your key target audience share of time with each media
2. Make measuring relative effectiveness a priority – Ensure that online is properly quantified -- Old RDD tracking
studies fail at measuring online
3. Review and update marketing mix annually
Applying the New Learning:Applying the New Learning:
Identify Leaders and Curmudgeons• Engage them both
– Example: Marketing Evolution’s Scenario planning
Consider re-vamping the entire marketing metrics and decision process
• Do you measure the right things?• Is everyone trained on marketing measurement?• Is there a process for changing based on research
learning?
A bit of advice given to a young Native A bit of advice given to a young Native
American at the time of his initiationAmerican at the time of his initiation::
‘As you go the way of life, ‘As you go the way of life, you will see a great chasm. you will see a great chasm.
Joseph CampbellJoseph Campbell
Jump. Jump.
It is not as wide as you think.’It is not as wide as you think.’