ARF/SIMULMEDIA ONLINE LIVESTREAM SESSION
How to use television advertising to produce profit
DAVID POLTRACKChief Research Officer, CBS CorporationPresident CBS Vision
ARF/SIMULMEDIA ONLINE LIVESTREAM SESSION
How to use television advertising to reduce profit
DAVID POLTRACKChief Research Officer, CBS CorporationPresident CBS Vision
Since the turn of the century, many advertisers have changed their media strategies:
• They have “leaned the television mix” reducing or eliminating altogether high reach primetime and other premium content from their buys.
• More recently, they have begun moving money from their television budgets to support their growing digital investment.
Two Concerning Trends
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How do these actions reduce profits?
• They have “leaned the television mix” reducing or eliminating altogether high reach primetime and other premium content from their buys.
Two Concerning Trends
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Source: Nielsen Monitor+ , Jan-Dec Totals; $10mm+ Annual Spend
Top CPG Categories Long Term Spending Patterns
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2000 2006 2013 2014
40%28% 22% 21%
24%
17%15% 15%
9%
15%20% 20%
27%40% 43% 44%
Cable Other
Cable Prime
Broadcast Other
Broadcast Prime
NATIONAL MEDIA SHARE-ANNUAL
How do these actions reduce profits?
• They have “leaned the television mix” reducing or eliminating altogether high reach primetime and other premium content from their buys.
• More recently, they have begun moving money from their television budgets to support their growing digital investment
Two Concerning Trends
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Television Dollars Moving To Digital
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“Regardless, investors and analysts appear to like hearing that marketers, particularly CPG companies once viewed as heavily dependent on traditional media, are moving more money into digital”
Formula For Profit Reduction
Assuming that the exposure of a consumer to an effective ad increases the likelihood that the consumer will buy the product or service being advertised, then…
– Reducing the number of consumers effectively reached by the advertising campaign by cutting the reach-building, high-rated primetime portion of the campaign will reduce sales and profit.
– Stealing money from an effective television advertising budget to fund new digital efforts will result in a lower contribution to sales and profits coming from the smaller television component of the marketing effort.
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• How Do You Define “Effective”?• Is My Campaign “Effective”?
The Measurement Issue
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• How Do You Define “Effective”?• Is My Campaign “Effective”?
The Measurement Issue
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DELIVERS A POSITIVE ROI
The Current Scenarios:
• TV Advertising is Effective (Delivers a Positive ROI)
Television Dollars Moving To Digital
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The Current Scenarios:
• TV Advertising is Effective (Delivers a Positive ROI)• Sales from Digital – Lost Sales from Television
Television Dollars Moving To Digital
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The Current Scenarios:• TV Advertising is Not Effective (Does Not Deliver a Positive ROI)
• Why?• Messaging/Creative?• How Will That Impact Digital?
Television Dollars Moving To Digital
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CAMPAIGN PERFORMANCE AUDIT
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Campaign Program Audit Components
Step 1: Test Your Message
Step 2: Maximize Your Weekly Reach
Step 3: Get the Most out of “Recency”
Step 4: Precisely Target Your Customers
Step 5: Assess Your Context
ARF Re:Think 2015 PLATINUM PRESENTATION:
Who doesn’t need a good CPA?CAMPAIGN PERFORMANCE AUDIT
Tuesday, March 17, 2:00pmMain Stage Grand BallroomPresenters: David Poltrack/Leslie Wood
This past fall, CBS introduced the CPA, Campaign Performance Audit, a multistage program for measuring the effectiveness of a marketer’s television advertising. The CPA utilizes a full complement of Nielsen analytics to plan, execute and evaluate each television strategy from the creation of the ad to the calculation of the total ROI of the campaign.
Television advertising, done right, is the most effective marketing medium.
Are you doing television right?Learn how our CPA can answer that question for you and your top management.
PLATINUM PRESENTATION:
Long Term Effects of Television Advertising
LESLIE WOODChief Research Officer, Nielsen Catalina Solutions