effectiveness & ROI

CMO Brief: 2019 Organizational Benchmark Survey, The Advertiser Report

Advertising and market research have seen significant changes in the last couple of years. ARF members have been inquiring about different aspects of these changes. To answer their questions, the ARF Analytics Council developed the very first Organizational Benchmark Survey of the industry. The aim was to see how companies collect research data, what departments conduct research, how they organize around research and data, and, if small advertisers differ from large ones. Read more.

KaH: The 2019 Organizational Benchmark Survey, The Advertiser Report

Advertising and market research have seen tremendous changes in the last couple of years. As a result, ARF members have been inquiring about different aspects of these changes, from what to call their departments to what tools and techniques are considered best practices. For instance, should it be called a “research department,” “data science” or “customer experience” department? Is it better to have a centralized or decentralized structure? Do such departments provide positive ROI, according to stakeholders? And should they use R, Python, SPSS or SAS?  Read more.

The 1st Annual Organizational Benchmark Survey—Advertiser Report (Summary)

The Organizational Benchmark Survey investigates the changes in advertising and marketing research over the past two years. This is the first of an annual series. The advertiser report covers a variety of subjects, including the name of advertisers’ research departments and their structures, spending and KPIs, what skills researchers need and what tools they employ, and even how satisfied they are with their department. Editor’s Note: The full report is available to members only.

Member Only Access

The Duality: Advertising in a Pandemic-driven Recession (Summary)

The current situation is unprecedented. Advertisers are scrambling to figure out how best to advertise in the context of a pandemic and a recession, what ARF CRO Paul Donato is calling: The Duality. While no research exists examining advertising in the context of both of these things, solid research, and ARF original research, examines advertising during a recession, when brands “go dark” and advertising adjacent to upsetting news. Editor’s Note: The full report is available to members only.

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The ARF’s 2020 Research Agenda (Summary)

  • ARF ORIGINAL RESEARCH

In order to offer members the insights they need to keep ahead of the curve, the ARF conducts original research that tackles the industry’s most pressing questions. Last year, the foundation changed its research project development process, creating a 401K approach in order to democratize it. Member organizations were able to vote with their dollars on what topic areas research funding should be allocated to.

Are Data Challenges Killing ROI Models?

  • Gian Fulgoni
  • JOURNAL OF ADVERTISING RESEARCH

Marketers have hit a wall in their ability to accurately measure ROI across their media mix—a result of limited access to consumer data by walled gardens such as Google, Facebook, and Amazon, as well as privacy constraints. Author Gian Fulgoni suggests two paths analysts can pursue to address this.

Member Only Access

Eyes on :06s: What Factors Predict Attention to Short Ads?

  • Henry G. Wolf and Paul Donato
  • JOURNAL OF ADVERTISING RESEARCH

TV commercials are getting shorter and shorter, mimicking their digital counterparts, but how good are they at capturing viewers’ attention? ARF research comparing the effectiveness of more than 3,000 short-form TV advertisements found that what drives visual attention to :06s differs from the drivers for :15s and :30s.

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Shifting Promo Dollars to Media Produces Higher ROI via MediaPost

Media company Turner Broadcasting commissioned a study showing that shifting as little as 10% of promotional dollars to media advertising can result in big return on media investment results for marketers.

The study—conducted with IRI, the consumer products/healthcare marketing analytics company—noted that consumer product marketers can spend as much as 66% of marketing dollars on promotion. Shifting 10% of that money can return in return on investment (ROI) gains of 10% to 25%.

Turner/IRI research looked at three years of data, across 62 brands representing $20 billion in sales and $3 billion in marketing spend across food, beverage, health care, beauty and home-care marketers.

The research indicates that the results are more dramatic when separating short-term and long-term ROI versus overall promo spending.

Source: Turner Broadcasting and IRI

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IAB: Tough To Prove ROI With Data-Driven Campaigns via MediaPost (source: IAB, Winterberry Group)

About 45% of marketers participating in a study by the Interactive Advertising Bureau (IAB) said they had difficulty proving a return on investment for their data-driven campaigns. That percentage rose from a mere 26% in 2016.

Lack of internal experience for functions and operations was at 45% in 2017 vs. 35% in 2016. Insufficient supporting technology was cited at 39% vs. 45%. Siloed organizational structures and poor data sharing protocols at 36% vs. 25%, and lack of volume and quality of first-party data sources at 25% vs. 33%, respectively, round out the top five.

Results from the Outlook for Data 2017: A Snapshot into the Evolving Role of Audience Insight report were based on an online survey of members of the IAB Data and Programmatic Councils. A total of 108 members responded to the survey.

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Here’s A Great Case Study On Radio’s Sales Power via Radio+TV Business Report (source: Nielsen)

A new Nielsen study, commissioned by Westwood One, paints a rosy picture for a major unnamed auto aftermarket retailer that engaged in a three-month national radio campaign from March to June 2016.

Nielsen matched the Nielsen Audio Portable People Meter (PPM) panel with credit and debit card spending data, so it could compare purchases of those exposed to the radio campaign with consumers who were not exposed. The results: the unnamed retailer generated $21 of incremental sales for every $1 spent on radio.

Nielsen calculated ROAS by dividing the total sales boost by the radio ad investment. It found that the radio campaign drove a 64% increase in new customers; and a 48% increase in total buyers. Additionally, those exposed to the radio campaign the most (seven or more times) represented nearly half of the total sales increase.

Access full article from Radio+TV Business Report