Case StudyHow Kellogg’s Brands Work Their
Digital Strategies
Aaron FettersAssociate Director
Global Digital Strategy & Analytics
Kellogg’s
Jeff SmithCMO & SVP
Client ServicesVizu
• A survey of more than 450 digital marketing and media professionals conducted in late 2011 by Digiday Media & Vizu
• Participants included Brand Marketers, Media Agencies, and Media Sellers
• Questions covered both the online brand advertising outlook for 2012 in addition to best practices for online brand advertising
The Online Advertising Outlook for 2012Industry Study
The Online Advertising Outlook for 2012Online considered a powerful brand-building medium
• Direct Response Advertising Growing: – 56% of brands respondents said they will increase spending
in 2012– 15% said they will increase spending by more than 20%
• Brand Advertising Growing Even Faster: – 64% of brand respondents said they will increase spending
in 2012– 22% said they will increase spending by more than 20%
The Online Advertising Outlook for 2012Brand Advertising surpassing Direct Response for 1st time
Brands: What type of digital advertising do you plan to use in 2012?
Branding59%
Direct Response
41%
The Online Advertising Outlook for 2012Some channels growing faster then othersBrands: How will brand ad spending in the following channels compare to prior year?
17%
20%
29%
57%
63%
69%
37%
60%
57%
34%
34%
26%
0% 20% 40% 60% 80% 100% 120%
Connected TV/IPTV
Standard Display Advertising
Rich Media Advertising
Video Advertising
Social Media Advertising
Mobile Advertising
Increase Stay about the same Decrease Don't Use
The Online Advertising Outlook for 2012Brand’s Perspective: What would make it better?
Brands: Which of the following would lead you to increase spending on online brand advertising? (Check all that apply)
38%
50%
53%
56%
68%
Ability to verify my online brand advertising was actually delivered to my target
audience
Purchasing efficiency (e.g. the ability to reach audience at scale through fewer
outlets)
Ability to use the same metrics to evaluate brand advertising effectiveness online as
are used offline
Ability to verify my brand advertising created the desired result (e.g. increased
awareness of my product)
Improved clarity around the actual return on your brand advertising investment
Cleaning up the “Metrics
Morass” in the online medium
Commenting on the amount of data bandied around in the online ecosystem, 34% of Brands stated:
“I’m drowning in data; I would prefer to focus on a few meaningful metrics to evaluate the
performance of my campaign”
The Online Brand Advertising Outlook for 2012Challenge: The online “metrics morass”
Asked to what extent they would like to leverage offline metrics in the online medium, brands say:
Asked what they typically report, Media Sellers say:
15%
24%
55%
6%
0% 10% 20% 30% 40% 50% 60%
Just metrics specific to the online medium
Some of the metrics from the offline medium, some metrics specific to the
online medium
The exact same metrics, and a few additional metrics specific to the online
medium
The exact same metrics, and nothing else
47%
30%
14%
10%
0% 10% 20% 30% 40% 50%
The Online Brand Advertising Outlook for 2012Challenge: The online “metrics morass”
20%
29%
29%
31%
57%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Time spent / Dwell time (e.g. on a micro-site)
Shares or re-posts of the advertising
Clickthrough rates on the advertising
Interaction rates with the advertising
Sales generated as a result of the advertising
Brand Lift generated as a result of the advertising
Asked specifically for the most appropriate metrics for brand advertising, marketers responded:
The Online Brand Advertising Outlook for 2012Challenge: The online “metrics morass”
Other key things brand advertisers are looking for:
• Proof on the front end: Only 6% of brand surveyed said they “Strongly believe” media sellers claims they can reach the custom / niche audiences the brands are looking for.
• Results on the back end: Nearly all respondents identified “in-market optimization of campaigns against relevant Brand Metrics” and “Proof of performance” as critical to maximizing ROI
The Online Brand Advertising Outlook for 2012Additional challenges
• In 2012, brand advertising is set to finally surpass performance based advertising in the online medium
• That said, the outlook could be even better, if we work to clean up the “metrics morass” in the online medium
• Use metrics that matter to maximize the return on your online brand advertising investment
The Online Brand Advertising Outlook for 2012Conclusion
Download the full reporthttp://brandlift.vizu.com/knowledge-resources/research/2012-industry-outlook/
Benchmark Your Brand Advertising IQ based on this Surveyhttp://brandlift.vizu.com/knowledge-resources/brand-ad-iq/
Playing “Moneyball” with Digital MediaReal Time Optimization Based on Metrics That Matter
Aaron Fetters – The Kellogg Company
It’s about getting the MOST out of the $ you have– We aren’t all the New York
Yankees (or Chelsea Football Club)
Don’t buy players, buy wins
Identify stats indicative of GAMES WON, vs. stats that are easy to count– On-base % vs. HR, RBI, etc.– Wins Above Replacement
Lessons From Moneyball
Digital Measurement – From a Brand’s Perspective• Kellogg Company Background
• Where We’ve Been– Challenges in Digital Measurement
• Where We Are– Establishing Goals and KPIs– What Have We Learned
• Where We Are Going– Enhanced Planning– Informed Buying– Near-time Optimization
• What it Means for Media and Measurement Partners
Agenda
Manufacturer and Marketer of some of America’s favorite food brands
• Attracting more of our consumers’ media time
• Attracting more of our Brands’ media $$$
• But filled with endless options – our Brands are looking for guidance
At Kellogg, Digital Marketing has Momentum
Where We’ve Been – Challenges in Digital Measurement
Though broad, historical efforts to track and measure digital have been disjointed
In the past 6 months we have focused on the
opportunities to:
1. Define a common set of Goals for Digital Media
2. Establish the KPIs (metrics) that REALLY matter to track against our Goals
3. Develop and communicate a Digital Measurement Framework, along with Principles for how we will track Digital and capture KPI results
Where We Are – The KPI Framework (which statistics really lead to Wins?)Establishing a model for Media Effectiveness – applied initially to Online Media
• Branded Recognition • Brand Buy Next
PRE-MARKET QUALITYDoes my creative have the right
to succeed?
• % Impressions to Target• Frequency of Exposure• % Impressions in View• CPM
AUDIENCE DELIVERYDid we efficiently reach our
Target?
• Brand Awareness• Purchase Interest• Message Association• Direct Response
IN-MARKET EFFECTIVENESS
Are we moving the needle?
Where We Are - What Have We Learned?
“oh my gosh you are the best ever - totally re-worked my plan just now.
thank you so much!!!!!!!!!!!!!!!!!
!!!”
Campaign targeted to a Hispanic audience
One publisher delivering only 1.2% of our Impressions to the demographic
Target audience (that’s a 98.8% waste folks)
However, another publisher had a Targeting Efficiency of 5.1 – meaning their Targeting ability allowed us to
reach our Target 5X better than if we bought Run Of Network
What Else Have We Seen?
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
Let’s take a look at a few of our biggest campaigns from 2011
(Data provided is at an individual publisher, individual campaign level)
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%These publishers
effectively delivered to our target and efficiently balanced the exposures
There have been some clear top performances
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
Conversely, this execution is generating a great deal
of reach, but 75% is to someone other than our
Target audience
There are some clear opportunities
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
15.7 21.04% 24.68%
And in this case Impressions are virtually
being thrown away as the wrong audience is
reached over and over again
Sometimes BIG opportunities
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
15.7 21.04% 24.68%
14.5 69.57% 60.55%
Some data leads to important questions
Publisher is doing a nice job of finding our Target.
Did we ask for Frequency capping with them?
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
15.7 21.04% 24.68%
14.5 69.57% 60.55%
2.9 80.80% 80.48%
Incredible targeting results from a high reach portal
Opportunity to shift $ here to reach more of our target, at an increased
frequency
And some data reveals Potential
Where We Are Going – Our Vision
Online Audience Delivery Insights
Advertising Effectiveness Insights
Cost per Effective Audience Impression
Near-Time Decisions and Optimizations
We have begun to build the foundation of our Digital Measurement needs. We now want to move toward our vision of enabling near real-time decision making and optimization based on knowledge and insights of what is working.
2011 2012
Cross-Media measurement and
optimization?
2013
$0.00 $3.00 $6.00 $9.00 $12.000.0%
20.0%
40.0%
60.0%
80.0%
Efficiency/Effectiveness Publisher Overview
CPM
% o
f Tar
get
04/07/2023
Where We Are Going – Enhanced Planning
•Improved DSP / Portal / Publisher evaluation based on historical performance•Dig in deeper with Top Performers! – improve or eliminate buys far outside our KPIs•Next step is to layer in Advertising Effectiveness
The
Sweet
Spot
Where We Are Going – Informed Buying (Driving Partner Accountability and Return of Value on Our Investments!)
Conversations previously NOT had with “Partner A”: “in compliance with our 2011 RFP, we would like to work with you to create makegoods for the following campaigns:•Special K Evening Snacking Q2/Q3 •Frosted Mini-Wheats•Special K Fall Challenge •Crunchy Nut”
Conversations needed with Partner X:•What targeting approaches were used against Fiber Plus and Special K but not applied to Nutri-Grain?
Publisher Performance Across Three Similar Campaigns
Yahoo! Target
Average of Impressions - % on Target CPM
Sum of Impressions -
Total
Fiber Plus OLM Q3 F25-54 79.00% $3.44 20,284
Nutri-Grain OLM Q3 F25-54 w-kids 24.80% $3.83 14,208
Special K OLM F25-54 51.10% $4.92 26,340
Partner X
Where We Are Going – In-Market Optimization Based on Cost and EffectivenessCombining Insights with costs to answer: HOW CAN I GET THE BIGGEST BANG FOR MY BUCK?
At a campaign level we need to drive optimization
decisions in near real-time
1
2
3
Avg. Frequency
Impressions in Target CPM
3.0
3.5 24.5% $2.44
8.4
16.9% $9.08
23.5% $8.62$•Opportunity to optimize - $ follow performance•Multiple publishers, each with high reach potential•Wide variance in performance observed real-time
Lift in Awareness
5.74
0.55
0
Brand X
Q3/Q4
Media Partner
Impressions in View
83%
91%
71%
What it Means – For Media and Measurement Partners
Media Partners Measurement Providers
Performance and results are the key to increased investments – help us get
more!
Market Mix Models will reflect the quality of what goes into them.
Need continued research and analysis of which metrics matter!
Rigorous and diligent pursuit of Research Quality
Final Lesson From Moneyball
Don’t just win
CHANGE THE GAME
THANK YOU
Playing “Moneyball” with Digital MediaReal Time Optimization Based on Metrics That Matter
Aaron Fetters – The Kellogg Company
Budweiser Tackles a New Approach to Content"
It’s about getting the MOST out of the $ you have– We aren’t all the New York
Yankees (or Chelsea Football Club)
Don’t buy players, buy wins
Identify stats indicative of GAMES WON, vs. stats that are easy to count– On-base % vs. HR, RBI, etc.– Wins Above Replacement
Lessons From Moneyball
Digital Measurement – From a Brand’s Perspective• Kellogg Company Background
• Where We’ve Been– Challenges in Digital Measurement
• Where We Are– Establishing Goals and KPIs– What Have We Learned
• Where We Are Going– Enhanced Planning– Informed Buying– Near-time Optimization
• What it Means for Media and Measurement Partners
Agenda
Manufacturer and Marketer of some of America’s favorite food brands
• Attracting more of our consumers’ media time
• Attracting more of our Brands’ media $$$
• But filled with endless options – our Brands are looking for guidance
At Kellogg, Digital Marketing has Momentum
Where We’ve Been – Challenges in Digital Measurement
Though broad, historical efforts to track and measure digital have been disjointed
In the past 6 months we have focused on the
opportunities to:
1. Define a common set of Goals for Digital Media
2. Establish the KPIs (metrics) that REALLY matter to track against our Goals
3. Develop and communicate a Digital Measurement Framework, along with Principles for how we will track Digital and capture KPI results
Where We Are – The KPI Framework (which statistics really lead to Wins?)Establishing a model for Media Effectiveness – applied initially to Online Media
• Branded Recognition • Brand Buy Next
PRE-MARKET QUALITYDoes my creative have the right
to succeed?
• % Impressions to Target• Frequency of Exposure• % Impressions in View• CPM
AUDIENCE DELIVERYDid we efficiently reach our
Target?
• Brand Awareness• Purchase Interest• Message Association• Direct Response
IN-MARKET EFFECTIVENESS
Are we moving the needle?
Where We Are - What Have We Learned?
“oh my gosh you are the best ever - totally re-worked my plan just now.
thank you so much!!!!!!!!!!!!!!!!!
!!!”
Campaign targeted to a Hispanic audience
One publisher delivering only 1.2% of our Impressions to the demographic
Target audience (that’s a 98.8% waste folks)
However, another publisher had a Targeting Efficiency of 5.1 – meaning their Targeting ability allowed us to
reach our Target 5X better than if we bought Run Of Network
What Else Have We Seen?
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
Let’s take a look at a few of our biggest campaigns from 2011
(Data provided is at an individual publisher, individual campaign level)
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%These publishers
effectively delivered to our target and efficiently balanced the exposures
There have been some clear top performances
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
Conversely, this execution is generating a great deal
of reach, but 75% is to someone other than our
Target audience
There are some clear opportunities
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
15.7 21.04% 24.68%
And in this case Impressions are virtually
being thrown away as the wrong audience is
reached over and over again
Sometimes BIG opportunities
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
15.7 21.04% 24.68%
14.5 69.57% 60.55%
Some data leads to important questions
Publisher is doing a nice job of finding our Target.
Did we ask for Frequency capping with them?
Average Frequency Impressions Unique Viewers
Total Campaign % on Target % on Target
6 71.79% 61.26%
4.6 61.55% 38.67%
2.5 25.55% 27.52%
15.7 21.04% 24.68%
14.5 69.57% 60.55%
2.9 80.80% 80.48%
Incredible targeting results from a high reach portal
Opportunity to shift $ here to reach more of our target, at an increased
frequency
And some data reveals Potential
Where We Are Going – Our Vision
Online Audience Delivery Insights
Advertising Effectiveness Insights
Cost per Effective Audience Impression
Near-Time Decisions and Optimizations
We have begun to build the foundation of our Digital Measurement needs. We now want to move toward our vision of enabling near real-time decision making and optimization based on knowledge and insights of what is working.
2011 2012
Cross-Media measurement and
optimization?
2013
$0.00 $3.00 $6.00 $9.00 $12.000.0%
20.0%
40.0%
60.0%
80.0%
Efficiency/Effectiveness Publisher Overview
CPM
% o
f Tar
get
04/07/2023
Where We Are Going – Enhanced Planning
•Improved DSP / Portal / Publisher evaluation based on historical performance•Dig in deeper with Top Performers! – improve or eliminate buys far outside our KPIs•Next step is to layer in Advertising Effectiveness
The
Sweet
Spot
Where We Are Going – Informed Buying (Driving Partner Accountability and Return of Value on Our Investments!)
Conversations previously NOT had with “Partner A”: “in compliance with our 2011 RFP, we would like to work with you to create makegoods for the following campaigns:•Special K Evening Snacking Q2/Q3 •Frosted Mini-Wheats•Special K Fall Challenge •Crunchy Nut”
Conversations needed with Partner X:•What targeting approaches were used against Fiber Plus and Special K but not applied to Nutri-Grain?
Publisher Performance Across Three Similar Campaigns
Yahoo! Target
Average of Impressions - % on Target CPM
Sum of Impressions -
Total
Fiber Plus OLM Q3 F25-54 79.00% $3.44 20,284
Nutri-Grain OLM Q3 F25-54 w-kids 24.80% $3.83 14,208
Special K OLM F25-54 51.10% $4.92 26,340
Partner X
Where We Are Going – In-Market Optimization Based on Cost and EffectivenessCombining Insights with costs to answer: HOW CAN I GET THE BIGGEST BANG FOR MY BUCK?
At a campaign level we need to drive optimization
decisions in near real-time
1
2
3
Avg. Frequency
Impressions in Target CPM
3.0
3.5 24.5% $2.44
8.4
16.9% $9.08
23.5% $8.62$•Opportunity to optimize - $ follow performance•Multiple publishers, each with high reach potential•Wide variance in performance observed real-time
Lift in Awareness
5.74
0.55
0
Brand X
Q3/Q4
Media Partner
Impressions in View
83%
91%
71%
What it Means – For Media and Measurement Partners
Media Partners Measurement Providers
Performance and results are the key to increased investments – help us get
more!
Market Mix Models will reflect the quality of what goes into them.
Need continued research and analysis of which metrics matter!
Rigorous and diligent pursuit of Research Quality
Final Lesson From Moneyball
Don’t just win
CHANGE THE GAME
THANK YOU