Among the findings:
- Messaging and creative quality is key – particularly for Video.
- Creative quality is a multiplier for media exposure to deliver ROIs. But impact of Creative Score on sales ROIs varies by CPG vs. Non-CPG category.
- Ad requires sufficient airing time to create in-market effect, but needs to avoid being aired for too long when diminishing return occurs.
- Flighting patterns matter: Tapered flighting yield 5% incremental sales ROIs compared to Uniform or On-Off 3 week flighting schedule.
- Copy Wear-out can Reduce Advertising Response by 30%+.
- Advertisers should balance Cable/Network mix to maximize cost effective reach.
- Category differences. ROAS variation is best explained by brand presence factors (including size, category share, media incrementality), not necessarily by the industry they play in. Focus on individual brand, not industry, for optimization opportunities.
- CPG and Non-CPG. Long-Term (brand characteristics) and Short-Term (controllable media) factors have similar influence on ROAS variation across both CPG and Non-CPG brands with Long-Term accounting for an average of 56% for CPG and 58% for non-CPG. This suggests that ability to control short term ROI at a higher level is comparable in both groups.
- Short-Term factors drive ROAS. While brand Long-Term factors account for more than half of variation of ROAS, opportunities exist for brands and categories to optimize ROAS 5+% through adjusting key factors such as Ad Quality (non-CPG) and reach (CPG) in the short term.
- Long-Term factors still matter – explaining and controlling for brand differences across categories. When considering potential for TV ROAS, brands should take their size into perspective – massive brands will always have an advantage in driving returns, even when execution is similarly optimized.
Presented at AUDIENCExSCIENCE, June 12-13, 2018