Aesthetic design significantly affects consumer evaluation of products. Nowhere perhaps is this truer than for the automotive category. However, in this industry, development cycles can be lengthy. As a result, mid-generation “facelifts” periodically occur to maintain appeal. However, this process can be expensive. Recent breakthroughs in machine learning may help speed up the process in an efficient and scalable manner. Not only is this option cost-effective, but it is customizable. For those who wish to infuse nature-inspired elements into an aesthetic design, deep machine learning offers many advantages.
The Attribution & Analytics Accelerator returned for its eighth year as the only event focused exclusively on attribution, marketing mix models, in-market testing and the science of marketing performance measurement. The boldest and brightest minds took the stage to share their latest innovations and case studies. Modelers, marketers, researchers and data scientists gathered in NYC to quicken the pace of innovation, fortify the science and galvanize the industry toward best practices and improved solutions. Content is available to event attendees and ARF members.
Amobee’s Alexander Knudsen covered the benefits of cross-screen measurement in a fragmented media landscape and the insights it provides for planning and buying teams with a client case study from Toyota and H&L Partners. Addressing marketers’ key issues with a converged planning approach, Alexander detailed how cross-screen analysis worked with Amobee’s 4Screen Experience measurement product as well as how Toyota used the resulting insights to optimize in real-time.
In the evolving privacy landscape, companies are continuing to look for solutions that offer cookieless targeting. Advertisers seek cross-platform targeting options enabling scale and KPIs to drive campaign performance. However, potential solutions have weaknesses:
Mark Loughney of Hub Entertainment Research unveiled the results of an online survey which looked at U.S. consumers’ media consumption patterns while in transit. Hub’s survey was of 2,566 U.S. consumers ages 16 – 74. There were no exclusions. It included TV and non-TV homes, pay subscriptions and non-pay subscriptions and so on. They weighted to U.S. census data, including age, gender, ethnicity, income and size. The data was collected from mid/late November 2022.
Audrey Steele (FOX) introduced this presentation by highlighting the objectivity of the years-long study focused on the relative value of different platforms and impression quality, with the brands involved amassing close to $3 trillion in sales. While many in the industry are focusing on maximum reach, this study looked at sales as the most important measure of impressions, quality and value between media platforms.
Podcasts offer strong value for advertisers as the result of the growing amount of content, audience diversity and high engagement levels, including increased brand recall. Opportunities for monetization of podcast ads have increased and MAGNA expects U.S. podcast ad revenues to reach $2.4 billion in 2023.
Mark Loughney – Senior Consultant, Hub Entertainment Research
Mark Loughney of Hub Entertainment Research unveiled the results of an online survey which looked at U.S. consumers’ media consumption patterns while in transit. Hub’s survey was of 2,566 U.S. consumers ages 16 – 74. There were no exclusions. It included TV and non-TV homes, pay subscriptions and non-pay subscriptions and so on. They weighted to U.S. census data, including age, gender, ethnicity, income and size. The data was collected from mid/late November 2022.
Over the air (OTA) radio is still overwhelmingly the most used device and medium in the car, with two-thirds using it “all” or “most” of the time. Smart phones were the most common mobile device present and music overwhelmingly the most popular genre. Commuter numbers look nearly identical to drivers. One-third of drivers claim that their passenger will use a different device in the car “all or most” of the time. That jumps to 50% for those with children. Also, the presence of a tablet nearly doubles when a child is present. Even though today, OTA radio remains king of the road, mobile hotspot usage and the streaming of music will likely increase as people retire older vehicles. The biggest change in media consumption habits came with flying, where books, followed closely by personal music, are the media most often consumed.
Key Takeaways
In the car, OTA radio is the most used built-in option (81%), followed by CD players (50%) and satellite radio (41%). This makes sense if you consider that about half of the cars on the road are five years old or older, many 10 years or older.
OTA radio is the most frequently used medium in the car (83%) and smart phones are the most common portable device on hand (73%). A tablet’s presence goes from 20-35% when a child is present.
Typically, one-third of drivers said their passenger is using a different device while they travel.
When flying, print was the most common “ever use,” followed by personal music and streaming. Magazines were about average, with at least half saying they use them sometimes.
Across all platforms, creative continues to have the dominant effect ranging from 46% to 49% of the effect of the campaign. The proportional effect of media and brand vary by platform depending on the targetability of the medium, the ability to build reach and the appeal to younger audiences such as is the case for social media.
Key Takeaways
NCS uses a framework of five keys: Creative, Brand, Media (Targeting, Reach and Recency). Going back to 2006, Project Apollo found that creative, media and other factors contributed 65%, 15% and 20% to the success of a campaign. In 2017, a similar study yielded 49%, 36% and 15% contribution for creative, media and brand. Of course, in 2017, digital media provided for vast improvements in targeting over 2006.
In the current 2022/23 analysis, NCS broke up the composition of impact into the five expanded keys allocating the effects on campaign success as follows: creative 48%, brand 21%, reach 14%, targeting 11% and recency 4%.
Looking at the brands contribution, over half comes from loyalty. When comparing linear and digital, brand is much more important for digital, 25%, and media turns out much more important for linear, 39%, likely driven by reach and frequency. Creative is roughly the same for both at 49% and 48%.
Within social media advertising, the distribution is 46% for creative, 28% for media and 26% for brand. Targeting accounts for most of the media effect and loyalty accounts for most of the brand effect.
Lloyd Darbonne – Senior Director Research, Insights, & Strategy, FOX Corp.
Bill Harvey – Executive Chairman, Bill Harvey Consulting, Inc.
Audrey Steele – EVP Sales Research & Strategy, FOX Corp.
Audrey Steele (FOX) introduced this presentation by highlighting the objectivity of the years-long study focused on the relative value of different platforms and impression quality, with the brands involved amassing close to $3 trillion in sales. While many in the industry are focusing on maximum reach, this study looked at sales as the most important measure of impressions, quality and value between media platforms.
Bill Harvey (BHC) detailed the study’s methodology of implementing a standard multiple regression analysis with ROI optimization using SMI’s real ad spend numbers and Circana’s and S&P Global’s sales spend across the top ten brands in each of QSR, CPG and Auto verticals over nine years of data.
Lloyd Darbonne (FOX) covered how the thousands of iterations of their ROI optimizer selected the media mix that predicted the highest share for each company studied. Concentrating on entertainment (inclusive of TV sports & news, TV cable entertainment, TV Big 4 entertainment and premium digital video TV), the optimizer then measured the optimal allocation for maximum ROI in each vertical. Results across verticals documented higher ROIs with significant reallocations and rebalancing of ad spends in TV and premium contexts.
Key Takeaways
Brands that increased their spend in non-premium digital lost sales and market share, much of it due to misallocation of advertising spend. There are opportunities for 20-40% ROI increases by reallocating non-premium digital dollars to TV.
TV has 2.6x the sales effect of non-premium digital. There is a 14.6% incremental sales lift added by advertising, on top of the baseline 85% sales without advertising. TV generated 69% of the added 14% across the combined three verticals, with non-premium digital at 27%. In all three verticals studied, broadcast entertainment still has a good amount of headroom—increasing share of ad spend will increase sales effects.
Buyer focus on CPM and rush to oversaturated lower-priced media and non-premium digital inventory has served to suppress the sales effects of overall campaigns.
Focusing on ROAS instead of reach, and using standard multiple regression analysis gives advertisers an advantage over slower-moving competitors.
