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ROI

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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Editor’s Note: This piece has attracted more “Recommendations” than any MediaPost article in memory. Why Most Agencies Stay Away from ROI Metrics – via MediaPost (Michael Li, contributing editor)

In many of the RFPs and proposals submitted by agencies to these clients, the focus is still primarily on items such as impressions, clicks or “engagement” metrics.

If sales are the key metric that CEO/CMOs care about, the campaign focus should be on solid conversions where a direct action is taken on a webpage such as a user making a purchase or signing up for a newsletter.

With a focus on influencing the “right” audience, building brand awareness or being “top of mind” in the eyes of the consumer, many agencies skirt around providing clients with more concrete quantitative-driven results. They peddle the belief that a “deeply affected” and ‘influenced’ audience will be more likely to make a purchase later by simply getting the brand in front of them.

The honest answer is that achieving true conversion metrics is difficult. It is much harder to achieve conversion goals, and much harder to explain.

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Timing IS Everything: Purchase-Driven Planning – the New ROI Paradigm

 

Discover how to use a totally new approach to media planning and evaluation that Nielsen Catalina Solutions calls Purchase-Driven Planning. Learn how to drive ROI and why this new approach differs from current concepts such as Recency, so you will gain a greater understanding of how media works. This new approach can be utilized to maximize ROI across TV and Digital ad campaigns for CPG products — before the media is purchased.

Advertisers can also determine if their creative is driving sales, and which audience segments are most responsive to it.  We’ll share our roadmap, which includes expanding this solution to additional media platforms and more! Led by Leslie Wood Chief Research Officer, Nielsen Catalina Solutions.

 

One Marketing Metric to Rule Them All? Group Believes It Has One.  Lengthy Test Across 100 Brands is a Step Toward Linking Marketing to Cash Flow

The Marketing Accountability Standards Board (MASB) has developed a method to measure brand value and predict movements in market share.  Jack Neff, writing for Advertising Age, analyzes this Brand Choice” metric.

MASB was established seven years ago by a coalition of academics, market researchers, and marketers. It recently concluded Phase I of its Brand Investment & Validation project.  MASB tested a “Brand Choice” metric based on surveys of approximately 500 people per brand. These consumers were asked to select among several competing brands in a category as if they were winners of a prize drawing.

According to David Stewart, Marketing Professor at Loyola Marymount University in Los Angeles and MASB chair, “We believe by linking this Brand Choice metric to some pretty simple metrics like market share, price premium and distribution coverage, we can actually generate estimates of future operating cash flow, which allows you to get at the value of a brand.”

He also pointed out that this is the first time the Brand Choice Metric has been studied across such a broad array of brands in consumer packaged goods and automotive.

Phase II of the project involves comparing how the MASB’s metric compares to other brand valuation and evaluation models.  MASB will also study what factors reliably drive its Brand Choice metric – including marketing spending, advertising quality, and social media. Study parameters are still in development, and will likely take 18 months to test.  As a result, Mr. Stewart doesn’t expect results until 2018.

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