Ad Spend Forecasts
GroupM offered their ad spending forecast during the ARF’s recent AxS conference.
GroupM offered their ad spending forecast during the ARF’s recent AxS conference.
Some analysts think that marketing jobs will be less affected by AI than many others. But that doesn’t mean the impact will be small.
Manuel Garcia-Garcia, Ph.D. – Global Lead of Neuroscience, Ipsos
Ariane Pol – Global Head of Research for Creative Works, Google
Geraldine Rodriguez – Client Manager Applied Research, Ipsos
Can YouTube help drive long-term brand building? How do you measure long-term brand building? When brands want to air strategic long-term campaigns, they typically revert to traditional media. Most people are not in need of a brand’s immediate offering, but they represent the biggest sales opportunity. Ten years ago, the IPA demonstrated that campaigns whose primary focus was emotional were the most effective. Emotions are the fuel that allow high conversion over time. Brands should tap into emotions of consumers that may not be interested in a product now but may be relevant in the future. Ipsos partnered with Google Creative Works to study the observed and declared behaviors. Methodology: A triangulation of methods were used. They were Creative/Spark (market validated KPIs of creative impact); Ipsos Bayesian Nets (models the impact of emotion); Ipsos Emotion Framework (captures emotional responses). Ipsos Emotion Framework defines emotions as physiological changes we experience in response to the environment. These are complex emotions that are heavily driven by culture and context, and they are therefore, not universal. This complicates measuring emotions. While emotions are not universal, we can explain emotions based on valence, arousal and control. This maintains the cultural authenticity but can be compared across cultures. The experimental approach to measuring long-term brand growth included a brand relationship index (BRI), comprised of brand performance = how would you rate [brand] in terms of what you are looking for in a [category] + brand closeness = how close do you feel to [brand]? Findings:Pedro Almeida – CEO, MediaProbe
Context matters—not all reach is equal, and so, we need a way to qualify each impression and valuate each of these impressions. Metric of valuation needs to be valid, reliable and have predictive power for business outcomes. The research focus: 1) What can we say about the value of emotional engagement (EE)? 2) Can we model the value of EE via its impact on memory? 3) Can we use EE to optimize and valuate content and ad positions? How? Methodology: MediaProbe used Galvanic Skin Response with participants who were exposed to content through a MediaProbe panel (U.S., 2,700 households). Data gets delivered second by second and data extracted goes toward creating an impact measure of how much people are reacting to what they are watching. The platform calculates an impact value that enables comparisons across media platforms. There was an added layer to see whether participants are leaning into the content and are engaged. U.S. TV dataset includes over 45,000 participants, reaching over 85,000 hours. More than 1,000 TV hours are monitored and over 42,500 ads. Using a subset of 16,351 ads and 329 “premium pod” formats, participants watch content and are then asked which ads they remember. Findings:Bill Harvey – Executive Chairman, Bill Harvey Consulting
Elizabeth Johnson, Ph.D. – Executive Director & Senior Fellow, Wharton Neuroscience Initiative, UPenn
Michael Platt, Ph.D. – Director, Wharton Neuroscience Initiative, UPenn
Audrey Steele – EVP Sales Research Insights & Strategy, FOX Corp.
The presenters discussed their study focused on the link between attention and sales. Attention is required for engagement. Eyes on screen do not predict sales well. However, three main brain measurement dimensions account for sales and branding effects: brand attraction/joy (=motivational signals in fMRI and EEG), memory (=Theta power in EEG) and synchrony (=collective resonance across audience brains, in fMRI and EEG)—all require more than 1-2 seconds to unfold and measure. Using neuroanalysis can help unmask hidden thoughts and feelings (via fMRI). Additionally, scaled up, other predictive bio and neuro metrics can be just as predictive. The research shows that patterns of brain activity predict sales best: the sum of all perceptual, attentional, emotional, social and memory processes. We can also use EEG to tell us about frustration, attention, memory, sleep/introspection. Research using EEG shows that EEG measuring brand attraction/joy can predict 80% variance in sales. Notably, brand attraction/joy takes 15 seconds to peak. Brain memory also predicts sales. Notably, memory encoding picks up after 10 seconds. Finally, synchrony—collective audience response—predicts more than 90% of sales but also has temporal dynamics, peaks at 5 seconds and picks up again after 15-20 seconds. Wharton Neuroscience investigated predicting how different content and platform impact sales lift. The study design: eight ads in eight verticals tested in each of the 10 experimental cells (7 TV, 2 smart phones, 1 control condition). Four ads at a time are shown between TV show. Each viewer will only see one kind of content. Findings from the 3% of total sample: attraction and memory are sustained for ads shown in premium channels compared to YouTube. Value of context is enormous! YouTube has a drop at 4 seconds whereas TV continues. Key takeaways:Dr. Matthias Rothensee – CSO & Partner, eye square
Stefan Schoenherr – VP Brand and Media & Partner, eye square
Speakers Matthias Rothensee and Stefan Schoenherr of eye square discussed the need for a human element and oversight of AI. Beginning their discussion on the state of attention and AI, Matthias acknowledge that race for attention is one of the defining challenges of our time for modern marketers. He quoted author Rex Briggs, who noted the "conundrum at the heart of AI: its greatest strength can also be its greatest weakness." Matthias indicated that AI is incredibly powerful in recognizing pattern from big data sets but at the same time there are some risks attached to it (e.g., finding spurious patterns, hallucinations, etc.). Stefan examined a case study using an advertisement for the candy M&Ms, which considered real humans using eye tracking technology and compared it to results using AI. The goal was to better understand where AI is good at predicting attention and where does it still have to optimize or get better. Results from a case study indicated areas for AI improvements in terms of gaze cueing, movement, contrast, complexity and nonhuman entities (e.g., a dog). The static nature of AI (e.g., AI prediction models are often built based on static attention databases) can become a challenge when comparing dynamic attention trends. Key takeaways:Spencer Lambert – VP, Product & Partnership Success, datafuelX
Matthew Weinman – Sr. Director, Advanced Advertising Product Management, TelevisaUnivision
Reach and frequency planning requires access to unique viewership data, which has become increasingly restricted due to identity restrictions. However, challenges exist with panel-only measurement, including the undercounting of Hispanic and Spanish language coverage, stated Matthew Weinman (TelevisaUnivision). Panel data undercounts Hispanics audiences by upwards of 20%, even for broad demographics. The benefits of big data exist across audience planning, viewership measurement and outcomes. Excessive frequency can be limited while maintaining or expanding reach, as well as improving ROAS. However, there are barriers to working with big data, including PII compliance. Additionally, the size and scale of big data leads to lengthy ID forecast times and computing costs. Spencer Lambert (datafuelX) presented details of their approach to ID-level forecasting which included their reach and frequency clustering methodology. Key takeaways:Karen Nelson-Field, Ph.D. – CEO, Amplified Intelligence
This presentation discussed the importance of nuance and interaction effects and how understanding interaction effects are critical in building products. There were four use cases—campaign strategy, planning, verification, buying. Two sets of data—inward and outward facing—looked at tag-based data through tags, outward facing—device based, panel data, gaze tracking, pose estimation, etc. One is observed while the other is human. Both are valuable. Each set has limitations. Looking at actual humans has a scale issue, whereas impression data has limited ability to predict behavior. Human behavior is complex. It is also varied by platforms. Metrics without ground truth misses out on this. Three types of human-attention were measured: active attention (looking directly at an ad), passive attention (eyes not directly on ad), non-attention (eyes not on screen, not on ad). Attention outcomes and attention are not always related. Underneath how attention data works there is a hierarchy of attention—the way ad units and scroll speeds and other interaction effects all mediate with each other. It is not as simple as saying look at this ad unit and we will get this amount of attention. If products don’t include these factors they fail. Amplified Intelligence built a large-scale validation model for interaction effects and “choice” using Pepsi. They employed logistic regression using Maximum Likelihood Estimation (MLE), analyzing observations and tested critical factors—brand size and attention type, to demonstrate strong predictive accuracy with CV accuracy. They found significant interaction effects, particularly brand size and attention type as key influencers of consumer brand choice. Key findings:Rachel Gantz – Managing Director, Proximic by Comscore
Amidst heightened regulations in the advertising ecosystem, Rachel Gantz of Proximic by Comscore delved into a discussion of diverse AI applications and implementation tactics, in an increasingly ID-free environment, to effectively reach audiences. Rachel highlighted signal loss as a "massive industry challenge," to provide a framework for the research she examined. She remarked that the digital advertising environment was built on ID-based audience targeting, but with the loss of this data and the increase in privacy regulations, advertisers have placed their focus on first-party and contextual targeting (which includes predictive modeling). In her discussion, she focused on the many impacts predictive AI is having on contextual targeting, in a world increasingly void of third-party data, providing results from a supporting experiment. The research aimed to understand how the performance of AI-powered ID-free audience targeting tactics compared to their ID-based counterparts. The experiment considered audience reach, cost efficiency (eCPM), in-target accuracy and inventory placement quality. Key takeaways:On January 23, Ken Roberts, Founder and President of Forethought™, Mary Wilson Avant, Senior Consultant of Forethought™ and Elizabeth Windram, EVP, Marketing & Communications of CLEAR discussed the seven answers every CMO should demand, ranging from predicting change in market share, creating internal alignment between marketing and the rest of the organization, how generative AI can be leveraged, and more. Currently this content is only available to event attendees.
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