ad effectiveness 2.gap
TRANSCRIPT
What Drives Advertising?
Creative
$Spend
• All advertising consists of two elements
1. The “noise” or penetration of the ad event, driven mostly by the level of spend or GRPs
2. The copy, creative or message, which convinces the customer to buy
Advertisers
• Invest millions to “copy test” ads in order to assess the relative effectiveness of ad creative or copy
• Yet, there has been little work to integrate these copy test data into a measurement framework that links these test scores to brand sales
• Bottom-Line Analytics/Global Analytics Partners have partnered with a key copy test partner, Advertising Benchmark (ABX), for the purpose of bringing disruptive change to the science of advertising measurement
• What if we could incorporate advertising copy test scores into marketing-mix models for the purpose of measuring and monetizing ad creative?
How this is Done
• Bottom-Line Analytics/Global Analytics Partnersand ABX have joined to work together to fulfill an innovative vision: that is to combine for purposes of developing systems and tools for monetizing and measuring the impact of advertising creative and providing a 360 degree view of advertising effectiveness based on validated brand revenue.
• By embedding copy-test scores within a marketing-mix model architecture & measurement framework, ABX’s copy test scoring system is uniquely able to help validate & monetize copy test scores.
Ad
Creative 1
Ad
Creative 2
Ad
Creative 3
Ad
Creative 4 Net Total
GRP 76 112 144 89
ABX Index 110 97 132 88
Net Score 8,360 10,864 19,008 7,832 13,265
ABX Index 110 97 132 88
Awareness 16% 18% 19% 16%
Message 20% 15% 20% 15%
Reputation 13% 20% 10% 17%
Relevance 18% 17% 17% 17%
Likeability 15% 13% 19% 19%
Call.to.Action 18% 18% 16% 16%
Visualize the ABX Copy Test System
• The 360 degree view
• Measuring all ads
• All Channels
• All competitors
• With deep diagnostics
• Validated and Monetized via predictive analytics
• Disruptive: Cheaper, Faster, Deeper and Better
• Following is a sample from one selected brand
360 Degree View: ABX Benchmarks EVERY Ad
So You Know What Works
• ABX provides a consistent metric for 14 KPIs that applies across every
media type measuring ad effectiveness for:
building awareness
communicating key messages
generating a call to action
enhancing reputation
Likeability
• Each ad is evaluated by a minimum of 150 GenPop respondents from a
representative and well-balanced consumer panel via the internet
• The sample is broadened to include target audience criteria.
• Results are available within 24-48 hours of the launch of the ad in the
marketplace
7
The Interviewing Experience
• All interviews are collected using
our patent-pending visual
‘ocular’ survey system.
• The ‘ocular’ survey insures every
respondent is presented with the
same interviewing experience.
• ‘Ocular’ interface creates an
improved ‘interviewing
experience’ leading to greater
engagement versus traditional
“text based” surveys.
8
What ABX Measures
14 key inputs
2 consumption metrics Level of category usage
(Frequent, Regular, Occasional, None)
Level of media consumption (all media; same frequency breaks)
Geographic data 4 census regions
Demographic data Gender, Age, Education, HHI
Brand Linkage
(Ad Recall)Clear Benefit
Feel About
Advertiser
Better
Worse
No Different
RelevantLike to See
Again
Contact
Company
Awareness Messaging Reputation Relevant Likeability Call to Action
Easily
UnderstoodLike Visit Website
Look For
Product
Purchase
Product
Recommend
Product
Talk to Someone
About it
None/Any
ABX Data is comprised of
Dislike
Awareness Messaging Reputation Relevant Likeability Call to Action
ABX Data is comprised of
Awareness Messaging Reputation Relevant Likeability
9
AD ID
Advertiser ABX Index
Brand
Linkage
Clear
Benefit
Easy to
Understand NPS
Any
Action
Contact
Company
Visit
Website
Look
for Purchase Recommend
Talk to
Someone Relevant
Like to See
Again Like Dislike
Vs. All Ads 127 120 110 111 156 142 59 101 184 211 103 80 160 130 82 31
Vs. Category 116 109 107 107 146 125 61 76 139 217 100 81 142 123 85 37
Vs. Medium 131 117 115 118 169 148 60 98 187 227 113 88 168 142 91 33
101212197
Note:• “Reputation” is net of “better” minus “worse”• “Any Action” is one or more calls-to-action, highlighted in yellow
• Arrow-highlighted data goes into current ABX Index calculation
• ABX data has been correlated to advertiser outcomes, such as sales or website traffic and has been shown to significantly improve market mix models
• ABX results are highly correlated with legacy copy test providers
ABXScore
The Advertising Benchmark Index (ABX)
ABX Index can be customized based on the unique combination of factors found to correlate with specific Client or campaign success!
10
Red Bull TV Ads Score High among Target
General Population
Normative
ABX’s timeliness enables effective copy rotation and builds more effective advertising
Dirty Little Secret about Conventional Ad Copy
Testing
• Too expensive– ABX testing costs at least 75% less than conventional ad testing services (~$25K per test)
• Too Slow– 48 hours instead of 2-3 weeks turnaround
• Too limited with respect to media channels– All channels including Outdoor and Digital/Online
• Limited in benchmarking to competitors– ABX provides all competitors’ test data for benchmark comparison
• No linkage to brand performance– BLA can impute ABX copy test scores in Marketing-Mix Models to validate and measure copy creative impact
• Not actionable– Timeliness permits effective copy rotation and significantly improves copy impact
Cheaper, Faster, Deeper + Better
Incorporating the Creative Element into
Marketing Mix Models
• Focusing management attention toward the creative process and execution
– Monetizing the creative element
– Measuring how creative drives growth and brand performance
• Providing explicit diagnostics of the 6 elements of the advertising creative
• Tangible metrics and tracking will drive significant improvement of ad creative over time
Marketing-Mix Decomposition
63
22
6
9
15
Baseline Customer Experience All Media GRPs All Media Creative
This model separates the investment impact from theadvertising creative contribution
Marketing Variance Growth Impact
-2.1%
-1.9%
-1.2%
-0.9%
0.1%
0.5%
0.9%
1.6%
2.4%
-2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%
Radio Creative
Retail Price
TV Creative
Digital Creative
TV Spend
Digital Spend
Radio Spend
Baseline
Retail Penetration
And measure the full effect of ad creative on brand growth
Radio Creative Retail Price TV Creative Digital Creative TV Spend
Digital Spend Radio Spend Baseline Retail Penetration
In 3 out of 4 cases, advertising problems are due creative problems and not fromInsufficient ad investment.
We will be able to quantify the relative importance of creative
versus the level of ad investment
0
50
100
150
200
250
50 60 70 80 90 100 110 120 130
Sales
Activity Index
Sales Response Media GRPs and Creative
GRPs
ABX-I Creative
And for each ad, quantifying each creative
element
0
10
20
30
40
50
60
70
80
Radio Ad 1 Radio Ad 2 Radio Ad 3 TV Ad 1 TV Ad 2 TV Ad 3
Spend Creative.Awareness Creative.Message Creative.Reputation
Creative.Relevance Creative.Likeability Creative.CTA
The Value Proposition
• Strategic advantage: Full valuation of the marketing message & creative
• Effective copy rotation over time will significantly improve creative execution
• Copy quality will improve over time• Knowledge of which creative element is most
important for each ad will help improve creative development
• Managed improvement relative to competitors becomes a competitive advantage
• Stimulating accelerated business growth