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Millward Brown: Point of View



Are You Getting Your Fair Digital Share?
Virtually all marketers are grappling with the question of how much time and
effort to invest in digital communications and where those investments should be
focused. The competitive landscape is an important aspect of these decisions.
Brands should consider how well they are competing across digital touchpoints,
just as they have historically done for other media. However, the multifaceted
nature of the digital environment has made it difficult for brands to understand
how well their efforts stack up against those of competitors.

                                     Share of voice (SOV) has been a common planning currency for many years in the world
                                     of TV and other traditional media. The argument that SOV matters is an established
                                     and validated one; there is clear industry evidence that higher TV SOV is likely to lead
                                     to increased market share.1 TV SOV analysis is also popular because the media spend
                                     metrics are readily available and easy to understand.

Duncan Southgate                     Until now, clear proof that digital A new Millward Brown analysis of BrandZ
Global Brand Director, Digital       SOV matters has not been available. data provides conclusive evidence that
Millward Brown
duncan.southgate@millwardbrown.com   Nor has there been an effective way
http://on.fb.me/MillwardBrown        to derive an appropriate metric that
                                                                              digital SOV is important to brand growth.
                                     aggregates the diverse array of digital channels. However, a new Millward Brown analysis
                                     of BrandZ data provides conclusive evidence that digital SOV is important to brand
                                     growth, and Millward Brown, together with Kantar Media and Kantar, has developed a
                                     new granular framework that makes digital share simple to monitor and diagnose.

                                     Why Digital Share Matters
                                     The new BrandZ analysis conducted by Millward Brown shows that brands that increase
                                     their digital SOV are more likely to grow their market share over time. We also found that
                                     brands that increase both their overall SOV and their digital SOV are particularly likely to
                                     grow market share. This suggests that digital SOV should be considered both an essential
                                     and complementary element of a brand’s overall SOV.

                                     Using the BrandZ database, we analyzed over 4,000 brands from 28 countries and
                                     56 different categories. For each brand, we calculated two measures: share of overall
                                     communications awareness (including digital) and share of digital communications
                                     awareness. We used share of awareness as a surrogate for share of voice because it gave
                                     us a good overall sense of how well a brand had cut through and lodged itself in consumer
                                     memories.


                                     1
                                         Mi hui Pak. “Share of Voice & Share of Market,” ARF - Knowledge at Hand, December 2009. Available on warc.com.
Millward Brown: Point of View: Are You Getting Your Fair Digital Share?                                                                                                                        2



We computed the changes in these SOV scores from 2009                      While correlation does not necessarily imply causation, these
to 201 and compared them with changes in the brands’
       0                                                                   results suggest that multimedia communications with a
Consumer Value (CV) scores over the same time period.                      significant digital element help to build brands. The French
(Consumer Value is a survey-based estimate of market share                 mobile phone market typifies what we are seeing generally.
that has proven to be highly predictive of actual share.) Both             The three brands that increased both overall and digital
correlations—r=0.29 for overall media share of awareness                   shares of awareness—Samsung, HTC, and the iPhone—also
with CV and r=0.22 for digital share of awareness with CV—                 grew their market share. On the flip side, Motorola and Nokia,
were statistically significant at the 99.9% confidence level.              the two brands with the biggest declines in digital SOV, both
Though the correlation for overall media awareness is higher               saw their market share fall.
than for digital awareness, it is clear that digital awareness has
                                                                           CHART 2:
a highly significant relationship with share growth.
                                                                           SOV vs. Share Growth (CV) in the French Phone Market
We conducted additional analysis to understand the
interaction between overall media SOV and digital SOV. We                                 6

allocated brands into four quadrants based on the changes                                                                                                                       Apple iPhone


in their overall and digital awareness shares over time: those                            4
                                                                                                                                                      Samsung
that increased on both measures, those that decreased on                                  2
                                                                                                                                                                HTC

                                                                                Growth in
both measures, and those that gained on one while losing                          Digital
                                                                                SOV: 2010           LG         Sony Ericsson        Alcatel    NEC
                                                                                          0
on the other. The percentages of brands in each group that                       vs. 2009                                           Sagem
                                                                                                                                              Panasonic
                                                                                                                                                                                  BlackBerry

showed gains in CV (market share) are shown in Chart 1.
                                                                                                                    Philips             Siemens
                                                                                         -2


Almost one-third of brands (32%) that gained both digital and                            -4
                                                                                                                                      Motorola
                                                                                                                                   Nokia
overall share showed increases in CV—a significantly higher                                              -4                   -2                  0         2         4     6            8

percentage than the other three groups, and almost double                                                                              Growth in Media SOV: 2010 vs. 2009
                                                                                                                                                                                CV growth (> 1%)



the proportion among the group that gained overall awareness                                  Source: Brandz
                                                                                                                                                                                No CV change



but lost in digital SOV (18%). A comparable number of brands                                                                                                                    CV decrease (> 1%)



(16%) gained overall share while increasing only their digital
share, while among brands that decreased on both measures,                 Many more interesting findings emerged from further detailed
just over one in 1 (1
                    0 1%) gained share.                                    analysis, including the following:

CHART 1:                                                                   •	      Among small brands, the correlation between gains in
    Increasein Overall vs. Digital SOV
     Increase in Overall vs. Digital SOV                                           both SOV measures and market share is stronger than
                                                                                   it is among larger brands. This corroborates and extends
    Percent of brands in in each group with increase in share (CV)
     Percent of brands each group with increase in share (CV)
                                                                                   work by Binet and Field, who found that increasing the
                                      +                                            level of SOV makes far more difference to the rate of
                                                                                   growth for small brands than for big ones.2
                            16%            32%
                            N = 781       N = 1240                         •	      The correlation between gains in both SOV measures
      Digital SOV:
     2010 vs. 2009
                      -                                +                           and market share is stronger for infrequently purchased
                                                                                   brands than for CPG brands. This makes sense when you
                            11%            18%
                                                                                   consider the critical importance of online researching and
                           N = 1548        N = 704                                 purchasing in categories such as automobiles, airlines,
                                      -                                            telecom providers, and mobile phone handsets.
                          Media SOV: 2010 vs. 2009

1




                                                                           2
                                                                            Les Binet and Peter Field. “Budget Setting in the Era of Accountability,” IPA
                                                                           dataMINE, Marketing in the Era of Accountability, 2008. Available on warc.com
                                                     ©201 Millward Brown
                                                        1
Millward Brown: Point of View: Are You Getting Your Fair Digital Share?                                                   3



•	   We also saw a significant correlation between market           Measuring digital share of voice is challenging
     share growth and a brand’s digital share of voice relative
                                                                    because it involves more than simply measuring
     to its market share. That is, when a brand’s digital share
     of voice exceeds its market share, it is more likely to gain   the exposure that brands pay for. A proper
     share in the next year. This implies that current market       measure of digital share of voice must reflect the
     share can be a good benchmark to aim at; if your digital       paid/owned/earned (POE) nature of digital, and
     share of voice trails market share, you may well need to
                                                                    requires the integration of many different online
     increase your digital presence.
                                                                    currencies.
Measuring Digital Share                                           for brands to accurately monitor and diagnose their digital
Measuring digital share of voice is challenging because it presence over time, they need a measure that is more precise
involves more than simply measuring the exposure that brands and comprehensive.
pay for. Brands are also trying to leverage the online assets
they own (their websites and social media pages) while trying Thanks to Kantar and our partnership with Kantar Media, we
to earn as much free exposure as possible through search, now have the ability to generate such a measure. Together,
viral, online news, and buzz. Therefore, a proper measure Kantar Media and MB have developed an ongoing monitoring
of digital share of voice must reflect the paid/owned/earned system called Kantar Digital Share, which takes data from eight
(POE) nature of digital, and requires the integration of many digital channels (listed in the table below) and combines them
different online currencies.                                      into a cohesive whole. Using a competitive context defined
                                                                  by the client, the Kantar Digital Share framework calculates
As stated earlier, we used digital share of awareness in the share of voice for each channel. Then the share metrics for
BrandZ validation analysis. As a surrogate for share of voice, it the eight channels are weighted together. The weighting
offered the advantage of providing us with the overall takeout scheme is based on overall channel reach and frequency, but
from digital communications—that is, not just how much a can be modified to account for a brand’s particular strategic
brand spent, but how effective that spend was. However, objectives.


                                                                     Channels measured by Kantar Digital Share
                                                                       Paid:	           Owned: 	             Earned:
                                                                       Online ads	      Brand website(s) 	   Viral video
                                                                       Paid search	     Social fan pages	    Natural search
                                                                                                       	     Online news
                                                                                                       	     Online buzz


                                                                    Kantar Digital Share is now being rolled out in selected
                                                                    markets. Using this framework, brand marketers can think
                                                                    more broadly and avoid falling into the trap of focusing
                                                                    solely on how their own brands are performing. The system
                                                                    might show, for example, that while one brand has increased
                                                                    online ad spend and improved its share of website traffic, a
                                                                    competitor has a larger fan base on Facebook and is engaging
                                                                    their consumers more effectively there.




                                              ©201 Millward Brown
                                                 1
Millward Brown: Point of View: Are You Getting Your Fair Digital Share?                                                       4



                                                                   Different brands will adopt different strategies in building their
                                                                   digital presence. Some brands aspire to an OEP strategy: they
                                                                   prioritize owned assets such as their websites and fan pages,
                                                                   try to earn as much engagement and virality from those
                                                                   assets as possible, and regard paid media as a last resort.

                                                                   More pragmatic for many brands is a POE strategy: to start
                                                                   with a clear, paid marketing communication objective, to use
                                                                   owned digital media as a way of engaging and deepening
                                                                   the message, and to consider any virality that is earned as a
                                                                   bonus.

                                                                   What’s right for any particular brand will vary by category,
                                                                   brand standing, and target audience. For example, insurance
                                                                   brands may need to rely more on paid media. Alcohol brands
                                                                   may find it particularly easy to build a social fan base. Auto
Implications for Marketers                                         brands may find that online news and buzz are especially
                                                                   important.
The knowledge that changes in digital SOV relate to market
share and that a comprehensive digital measurement system Different brands will adopt different strategies in
is available empowers marketers to systematically monitor building their digital presence; what’s right for
the digital health of their brands in the following ways:
                                                          any particular brand will vary by category, brand
  •	 Brand managers should seek first to understand their standing, and target audience.
       competitive position across all digital touchpoints. They
       can then make more informed decisions about where           However it is created, a strong digital presence relative to the
       to invest their digital marketing dollars to best grow      competition is a key element of brand growth. With tools that
       their brands.                                               provide a simple and comprehensive view, marketers can now
                                                                   bust through the jargon and the data deluge to see clearly
  •	   Comparisons of digital share with market share should       how digital builds their brands.
       be used periodically as a strategic input into budget
       setting, exactly as has been done for traditional             To read more about digital, please visit
       channels such as TV.                                          www.mb-blog.com
                                                                     If you liked “Are you Getting Your Fair Digital Share?”
  •	   Digital share should also be used as an ongoing monitor
                                                                     you might also be interested in:
       of digital activity to keep tabs on emerging competitive
       threats.                                                          “How Should Your Brand Capitalize on Social              	
                                                                         	 Media?”
  •	   Digital share should be compared with offline media               “Can I Make My Ad Go Viral?”
       share and correlated with brand tracking and sales
                                                                         “Using Websites as part of the Marketing Mix”
       measures over time to understand the role of digital in
       building the brand.
                                                                         Share




                                             ©201 Millward Brown
                                                1

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Are You Getting Your Fair Digital Share?

  • 1. Millward Brown: Point of View Are You Getting Your Fair Digital Share? Virtually all marketers are grappling with the question of how much time and effort to invest in digital communications and where those investments should be focused. The competitive landscape is an important aspect of these decisions. Brands should consider how well they are competing across digital touchpoints, just as they have historically done for other media. However, the multifaceted nature of the digital environment has made it difficult for brands to understand how well their efforts stack up against those of competitors. Share of voice (SOV) has been a common planning currency for many years in the world of TV and other traditional media. The argument that SOV matters is an established and validated one; there is clear industry evidence that higher TV SOV is likely to lead to increased market share.1 TV SOV analysis is also popular because the media spend metrics are readily available and easy to understand. Duncan Southgate Until now, clear proof that digital A new Millward Brown analysis of BrandZ Global Brand Director, Digital SOV matters has not been available. data provides conclusive evidence that Millward Brown duncan.southgate@millwardbrown.com Nor has there been an effective way http://on.fb.me/MillwardBrown to derive an appropriate metric that digital SOV is important to brand growth. aggregates the diverse array of digital channels. However, a new Millward Brown analysis of BrandZ data provides conclusive evidence that digital SOV is important to brand growth, and Millward Brown, together with Kantar Media and Kantar, has developed a new granular framework that makes digital share simple to monitor and diagnose. Why Digital Share Matters The new BrandZ analysis conducted by Millward Brown shows that brands that increase their digital SOV are more likely to grow their market share over time. We also found that brands that increase both their overall SOV and their digital SOV are particularly likely to grow market share. This suggests that digital SOV should be considered both an essential and complementary element of a brand’s overall SOV. Using the BrandZ database, we analyzed over 4,000 brands from 28 countries and 56 different categories. For each brand, we calculated two measures: share of overall communications awareness (including digital) and share of digital communications awareness. We used share of awareness as a surrogate for share of voice because it gave us a good overall sense of how well a brand had cut through and lodged itself in consumer memories. 1 Mi hui Pak. “Share of Voice & Share of Market,” ARF - Knowledge at Hand, December 2009. Available on warc.com.
  • 2. Millward Brown: Point of View: Are You Getting Your Fair Digital Share? 2 We computed the changes in these SOV scores from 2009 While correlation does not necessarily imply causation, these to 201 and compared them with changes in the brands’ 0 results suggest that multimedia communications with a Consumer Value (CV) scores over the same time period. significant digital element help to build brands. The French (Consumer Value is a survey-based estimate of market share mobile phone market typifies what we are seeing generally. that has proven to be highly predictive of actual share.) Both The three brands that increased both overall and digital correlations—r=0.29 for overall media share of awareness shares of awareness—Samsung, HTC, and the iPhone—also with CV and r=0.22 for digital share of awareness with CV— grew their market share. On the flip side, Motorola and Nokia, were statistically significant at the 99.9% confidence level. the two brands with the biggest declines in digital SOV, both Though the correlation for overall media awareness is higher saw their market share fall. than for digital awareness, it is clear that digital awareness has CHART 2: a highly significant relationship with share growth. SOV vs. Share Growth (CV) in the French Phone Market We conducted additional analysis to understand the interaction between overall media SOV and digital SOV. We 6 allocated brands into four quadrants based on the changes Apple iPhone in their overall and digital awareness shares over time: those 4 Samsung that increased on both measures, those that decreased on 2 HTC Growth in both measures, and those that gained on one while losing Digital SOV: 2010 LG Sony Ericsson Alcatel NEC 0 on the other. The percentages of brands in each group that vs. 2009 Sagem Panasonic BlackBerry showed gains in CV (market share) are shown in Chart 1. Philips Siemens -2 Almost one-third of brands (32%) that gained both digital and -4 Motorola Nokia overall share showed increases in CV—a significantly higher -4 -2 0 2 4 6 8 percentage than the other three groups, and almost double Growth in Media SOV: 2010 vs. 2009 CV growth (> 1%) the proportion among the group that gained overall awareness Source: Brandz No CV change but lost in digital SOV (18%). A comparable number of brands CV decrease (> 1%) (16%) gained overall share while increasing only their digital share, while among brands that decreased on both measures, Many more interesting findings emerged from further detailed just over one in 1 (1 0 1%) gained share. analysis, including the following: CHART 1: • Among small brands, the correlation between gains in Increasein Overall vs. Digital SOV Increase in Overall vs. Digital SOV both SOV measures and market share is stronger than it is among larger brands. This corroborates and extends Percent of brands in in each group with increase in share (CV) Percent of brands each group with increase in share (CV) work by Binet and Field, who found that increasing the + level of SOV makes far more difference to the rate of growth for small brands than for big ones.2 16% 32% N = 781 N = 1240 • The correlation between gains in both SOV measures Digital SOV: 2010 vs. 2009 - + and market share is stronger for infrequently purchased brands than for CPG brands. This makes sense when you 11% 18% consider the critical importance of online researching and N = 1548 N = 704 purchasing in categories such as automobiles, airlines, - telecom providers, and mobile phone handsets. Media SOV: 2010 vs. 2009 1 2 Les Binet and Peter Field. “Budget Setting in the Era of Accountability,” IPA dataMINE, Marketing in the Era of Accountability, 2008. Available on warc.com ©201 Millward Brown 1
  • 3. Millward Brown: Point of View: Are You Getting Your Fair Digital Share? 3 • We also saw a significant correlation between market Measuring digital share of voice is challenging share growth and a brand’s digital share of voice relative because it involves more than simply measuring to its market share. That is, when a brand’s digital share of voice exceeds its market share, it is more likely to gain the exposure that brands pay for. A proper share in the next year. This implies that current market measure of digital share of voice must reflect the share can be a good benchmark to aim at; if your digital paid/owned/earned (POE) nature of digital, and share of voice trails market share, you may well need to requires the integration of many different online increase your digital presence. currencies. Measuring Digital Share for brands to accurately monitor and diagnose their digital Measuring digital share of voice is challenging because it presence over time, they need a measure that is more precise involves more than simply measuring the exposure that brands and comprehensive. pay for. Brands are also trying to leverage the online assets they own (their websites and social media pages) while trying Thanks to Kantar and our partnership with Kantar Media, we to earn as much free exposure as possible through search, now have the ability to generate such a measure. Together, viral, online news, and buzz. Therefore, a proper measure Kantar Media and MB have developed an ongoing monitoring of digital share of voice must reflect the paid/owned/earned system called Kantar Digital Share, which takes data from eight (POE) nature of digital, and requires the integration of many digital channels (listed in the table below) and combines them different online currencies. into a cohesive whole. Using a competitive context defined by the client, the Kantar Digital Share framework calculates As stated earlier, we used digital share of awareness in the share of voice for each channel. Then the share metrics for BrandZ validation analysis. As a surrogate for share of voice, it the eight channels are weighted together. The weighting offered the advantage of providing us with the overall takeout scheme is based on overall channel reach and frequency, but from digital communications—that is, not just how much a can be modified to account for a brand’s particular strategic brand spent, but how effective that spend was. However, objectives. Channels measured by Kantar Digital Share Paid: Owned: Earned: Online ads Brand website(s) Viral video Paid search Social fan pages Natural search Online news Online buzz Kantar Digital Share is now being rolled out in selected markets. Using this framework, brand marketers can think more broadly and avoid falling into the trap of focusing solely on how their own brands are performing. The system might show, for example, that while one brand has increased online ad spend and improved its share of website traffic, a competitor has a larger fan base on Facebook and is engaging their consumers more effectively there. ©201 Millward Brown 1
  • 4. Millward Brown: Point of View: Are You Getting Your Fair Digital Share? 4 Different brands will adopt different strategies in building their digital presence. Some brands aspire to an OEP strategy: they prioritize owned assets such as their websites and fan pages, try to earn as much engagement and virality from those assets as possible, and regard paid media as a last resort. More pragmatic for many brands is a POE strategy: to start with a clear, paid marketing communication objective, to use owned digital media as a way of engaging and deepening the message, and to consider any virality that is earned as a bonus. What’s right for any particular brand will vary by category, brand standing, and target audience. For example, insurance brands may need to rely more on paid media. Alcohol brands may find it particularly easy to build a social fan base. Auto Implications for Marketers brands may find that online news and buzz are especially important. The knowledge that changes in digital SOV relate to market share and that a comprehensive digital measurement system Different brands will adopt different strategies in is available empowers marketers to systematically monitor building their digital presence; what’s right for the digital health of their brands in the following ways: any particular brand will vary by category, brand • Brand managers should seek first to understand their standing, and target audience. competitive position across all digital touchpoints. They can then make more informed decisions about where However it is created, a strong digital presence relative to the to invest their digital marketing dollars to best grow competition is a key element of brand growth. With tools that their brands. provide a simple and comprehensive view, marketers can now bust through the jargon and the data deluge to see clearly • Comparisons of digital share with market share should how digital builds their brands. be used periodically as a strategic input into budget setting, exactly as has been done for traditional To read more about digital, please visit channels such as TV. www.mb-blog.com If you liked “Are you Getting Your Fair Digital Share?” • Digital share should also be used as an ongoing monitor you might also be interested in: of digital activity to keep tabs on emerging competitive threats. “How Should Your Brand Capitalize on Social Media?” • Digital share should be compared with offline media “Can I Make My Ad Go Viral?” share and correlated with brand tracking and sales “Using Websites as part of the Marketing Mix” measures over time to understand the role of digital in building the brand. Share ©201 Millward Brown 1