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Insight Address: "Cross-Media Marketing Synergies: Spreading Dollars Across Channels"

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iMedia Brand Summit - Sept 2010
With consumers adapting rapidly to a cross-media “way of life,” it is now more important than ever for traditional and digital advertisers to understand the value of leveraging multiple media channels to achieve the greatest impact and strongest ROI. In order for this to occur, marketers need to spread their branding budgets across channels to benefit from some of the cost efficiencies that the Internet provides, while capitalizing on the inherent synergies of cross-media advertising.

comScore EVP Erin Hunter, and Doug Chavez, director, digital marketing, Del Monte Foods, will present a brief overview of the current state of the advertising industry, and will highlight advertising across platforms to gain synergy, actively coordinating traditional and digital marketers to capture these incremental gains, and using sound, consistent measurement to evaluate the effectiveness of cross-media campaigns.

Hunter and Chavez will present a detailed analysis of cross-media effectiveness results from a recent campaign. The presentation will include an overview of study objectives, methodology/design and key findings, providing audience members with actionable cross-media insights and a strong argument for considering cross-media strategies.

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Insight Address: "Cross-Media Marketing Synergies: Spreading Dollars Across Channels"

  1. 1. Cross-Channel Marketing & Measurement<br />
  2. 2. Cross-channel is a media property, service, story or experience distributed across media platforms using a variety of media forms<br />
  3. 3. The landscape has changed<br />
  4. 4. <ul><li>According to IAB, it took 38 years for Radio to reach 50mm users, 13 years for TV, 10 years for Cable,less than 5 years for Internet and less than 2 years for Internet Video.
  5. 5. Study by IDC says average American spends half-an-hour w/ magazine a day, 2.7 hours with TV, and twice that, 5 hours, with Internet.
  6. 6. comScore says over 84 million people watch Internet video in a day; average Facebook users spend over 4.5 hoursa month on the site.
  7. 7. YETwe spend 21.3% of our Ad budgets on print, 65.8% on TV, and only 6.4% on Internet. (4.1% among Top 100!)</li></li></ul><li>Just Over 1% of Online Video Time is Spent Watching Ads, Compared to 25% of Television Time<br />Source: Video Metrix March 2010 Data<br />All Online Video<br />Television<br />
  8. 8. Even When The Analysis is Limited to Premium Content, TV’s Ad Load is Far Higher<br />Source: Video Metrix March 2010 Data<br />Online Long-Form Premium<br />Television<br />
  9. 9. 6 to 7 Minutes of Advertising Per Hour is Acceptable; 35% More Than is Currently Being Delivered<br />Desired Length of Commercials<br />Source: ‘The future of original TV Viewing and the new digital consumer’’ survey conducted by comScore in December 2009<br />
  10. 10. Brands Going For High Audience Reach with TV Only Hit A Plateau<br />Reach and Effective Reach for a TV campaign as a function of cost<br />
  11. 11. Adding Internet Builds Reach with Identical Investment<br />Impact of a 90/10 budget allocation <br />
  12. 12. Del Monte Digital Vision<br />Offline<br />Online<br />Source: Forrester Research <br />
  13. 13. Marketing Mix Model Outputs<br />% Contribution To Sales<br />TV<br />Print<br />Radio<br />Effectiveness<br />Trade<br />Where does Digital fit?<br />$$$<br />
  14. 14. Marketing Mix Modeling has Limitations<br />Digital’s curve hasn’t been seen long enough and spend is not high enough for high degrees of variance to appear<br />Moving curve – not all impressions are the same<br />Eg. How do you measure social?<br />Synergistic and ordered effects<br />
  15. 15. How do we measure New World fairly?<br />
  16. 16. Display Advertising’s Early Mistake<br />Does this one person’s click effectively reflect the branding impact of exposing the other 999 people to the same ad?<br />
  17. 17. Traditional Marketing Mix Modeling, alone, is not enough<br />Two Methods will work<br />Marketing Mix Modeling + digital-driver analysis<br />Integrated panels with “opportunity-to-see” survey<br />Digital must fix it’s creative problem<br />
  18. 18. Campaign Impact on Brand Effectiveness, Online Behavior and Sales<br />Attitudes about the Brand<br />Online Site Visitation and<br />Trademark Search<br />Exposure to advertising in<br />TV, Online, Print channels<br />Transactions and<br />Retail Purchases<br />
  19. 19. Synergistic and Ordered Effect<br />From GroupM Search/M80/comScore study released in October 2009<br />Searchers involved with branded social media more likely to search lower in purchase funnel<br />Consumers exposed to brand’s social media and paid search 2.8x more likely to search for that brand than those who only saw paid search alone<br />50% CTR increase in paid search when exposed to branded social media<br />Among searchers using branded terms in query, CTR increased from 4.5% to 11.8% when searcher was exposed to both branded social media AND paid search<br />For more information please contact: <br />Cindy Kerber Spellman <br />Director, Corporate Communications <br />T: +1 314 682 2055 <br />E: cindy.spellman@groupmsearch.com<br />
  20. 20. Multi-stage Modeling spreads credit appropriately.<br />Example: Impact of Offline Media on Search (Retail)<br />Transactions (000’s)<br /><ul><li>Source: Media Management Analytics</li></li></ul><li>Accurate ROI measurement through search reattribution…<br />Example: Reattributed Search ROI (Retail)<br />ROI after reattribution of upstream media effects<br /><ul><li>Source: Media Management Analytics</li></li></ul><li>Traditional Marketing Mix Modeling, alone, is not enough<br />Two Methods will work<br />Marketing Mix Modeling + digital-driver analysis<br />Integrated panels with “opportunity-to-see” survey<br />Digital must fix it’s creative problem<br />
  21. 21. Single-Source Panel + Survey<br />Internet Ad Exposure<br />TV Ad Exposure<br />Survey for Opportunity<br />to See Other Media<br />
  22. 22. Brand Perceptions: Specific Attributes<br /><ul><li>Cross Media and TV + Print impact every brand attribute measure</li></ul>=significantly greater/less than not-exposed at the 95% confidence level<br />=significantly greater/less than not-exposed at the 90% confidence level<br />Source: Cross Media Brand Survey Lift<br />
  23. 23. Early results are very consistent … <br /><ul><li>TV provides stronger lift and contribution than Digital
  24. 24. Digital provides stronger ROI (driven by lower cost)
  25. 25. Part of the problem is the creative</li></li></ul><li>Display advertising early mistake #1: Clutter<br />Brand advertisers tell stories. They don’t want to compete with other advertisers. This is a better model for display.<br />Clutter<br />Can you imagine?<br />
  26. 26. Over 50% of the Impact of Advertising is Driven by the Strength of the Creative<br />% Influence on Market Share ShiftsSource: Source: comScore ARS Global Validation Summary<br />Creative is 4x More Impactful in Influencing Sales Than <br />Planning Variables<br />
  27. 27. Pre-qualifying Creative Has Been Proven to Drive Better Advertising Results and Lower Upfront Development Costs<br />Lower testing and production costs<br /><ul><li>Stronger First-time Success Rates</li></ul> Volume increases<br /><ul><li>Ad Scores Go Up</li></li></ul><li>
  28. 28.
  29. 29. Implications:<br /><ul><li>Traditional MMM alone won’t work, but there are scalable ways
  30. 30. MMM + digital drivers analysis
  31. 31. Cross-channel panel plus survey
  32. 32. We have a creative problem … pre-qualify digital like you would TV</li></li></ul><li>Thank You!<br /><ul><li>Doug Chavez Doug.Chavez@delmonte.com</li></ul>follow @dougchavez<br /><ul><li>Erin Hunter ehunter@comscore.com</li></ul>follow @ comScore<br />