Real Returns: What Matters Most in Digital Advertising

Report
REAL RETURNS
WHAT MATTERS MOST IN DIGITAL ADVERTISING
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
THE EVOLUTION OF THE MEDIA LANDSCAPE
#Consumer360
2
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
PRESENTATION SPEAKERS
Kathy French
Ross Link
Scott McKinley
Bob Rupczynski
Nielsen
Advertiser Solutions
Nielsen
Global MROI Solutions
Nielsen
Advertiser Solutions
Kraft Foods Group
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3
MORE PRECISE MEDIA CREATING MORE GRANULAR DATA
SMALL DATA
TV, Radio, Print
NATIONAL
MARKET
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
MEDIUM DATA
STORE
In-store Merchandising
BIG DATA
Direct Mail, Digital, Social & Mobile
HOUSEHOLD
INDIVIDUAL
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
BRIDGE TRADITIONAL & NEW MARKETING REALITIES
EMERGING
CURRENT
Enhanced Marketing
Mix Modeling
Full outlet &
touchpoint
CONTEXT
with enhanced
digital inputs
Multi-touch
Attribution Modeling
Deep digital
granularity
FUTURE
Enhanced Marketing
Mix Model
ONE
VERSION
OF
TRUTH
Full outlet &
touchpoint
context
INTELLIGENT PRIORS CALIBRATION
Next Generation
Marketing Mix Model
Full outlet &
touchpoint
CONTEXT with
DEEP DIGITAL
GRANULARITY
DIGITAL MEDIA CONSORTIUM
MULTI-TOUCH ATTRIBUTION
MODELING
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5
THE MOST COMPREHENSIVE STUDIES OF THEIR KIND
MORE
ACCURATE
12
Brands
3.79
536
2.4
132
11.3
Billion
Million
Billion
Google
Impressions
Mix
Models
Million
Total
Sales
Facebook
Impressions
Data
Observations
OUTCOMES
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
DIGITAL MEDIA CONSORTIUM
BETTER
METHODOLOGY
GREATER
EFFICIENCY
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NETWORK PATH ILLUMINATES PATH TO PURCHASE
THE INFLUENCE OF ONE ACTIVITY ON ANOTHER
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
NETWORK PATH EXAMPLE
TV
TV GRPs Drive
Facebook Impressions
FACEBOOK
Facebook Impressions
Drive Search Clicks
GOOGLE
SALES
Google Search Clicks
Drive Sales
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A SAMPLING OF WHAT WE LEARNED
other digital
3%
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
60%
h
Facebook
37%
Direction of arrows indicates how volume shifted from one node to another as a result of Network Analysis
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A SAMPLING OF WHAT WE LEARNED
other digital
online video
14%
13%
4%
15%
87%
a
67%
d
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
g
1%
93%
15%
2%
80%
broadband
halo tv
5%
3%
60%
h
4%
f
other digital
6%
sampling
PR
7%
37%
j
4%
84%
online video
3%
5%
k
2%
93%
47%
PR
0%
40%
50%
l
m
Direction of arrows indicates how volume shifted from one node to another as a result of Network Analysis
4%
2%
58%
n
3%
93%
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9
Mean Relative Contributions*
Recommended vs. Other Variants
UNDERESTIMATION
OF ROI FROM
VARIOUS METHODS
31%
OUTCOME
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
RECOMMENDED METHODS YIELD BETTER MODELS
& GREATER CONTRIBUTIONS
16%
AVAILABLE TODAY
Facebook
* Brands that could not be read using recommended method are excluded
Google
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THE BASICS OF ATTRIBUTION MODELING
WHAT IS IT?
OUTCOMES
• ROI
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
• Big data
• Connects person-level
exposure to purchase
• Real time
• What’s working or not
• Path to purchase
• Predictive optimization
• 1:1 precision
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
THE PROMISE OF MTA
MAPPING THE NEW CONSUMER JOURNEY FROM THE IMMENSE MEDIA LANDSCAPE
MEDIA TOUCHPOINTS
SHOPPING BEHAVIORS
Search
Out of Home
PURCHASE BEHAVIOR
E-commerce Purchase
Mobile
Online
Tablet
Website
TV
Store
In-store Purchase
Direct Mail
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
NEW TOOLS ARE ACCELERATING THE SPEED WITH WHICH
WE CAN ACQUIRE, PROCESS & ANALYZE DATA
Panels
Big data
PPTs
Dashboards
Manual
Machine
learning
Aggregate
Granular
Insights
Action
Weekly/
Monthly
Real-time
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
MAKING SENSE OF THE NEW WEALTH
OF INFORMATION
Identified new
opportunities
Partnered with
the best modelers
Created the
solution
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
MTA ATTRIBUTES SALES TO CAUSES, GOING DEEP ON DIGITAL
Intended
customer
Display
ad
Video
ad
Social
Email
Search
Brand
web site
E-commerce Physical
store
store
Purchase
$88
$134
$48
$32
$0
$64
Real-time Analytics: Attribution Value (incremental sales)
$93
$60
$30
$51
$57
$9
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MARKETING INTELLIGENCE PLATFORM
CLIENT DATA
MARKETING DATABASE
DASHBOARDS
MTA PLATFORM
x
x
x
x
Exposure Data
Ecom
In-Store
Promo
x
Price
x
x
x
x
x
x
PROGRAMMATIC BUYING
•
•
•
•
Marketing ROI
Attribution by touchpoint
Allocation recommendation
“What if” scenario planning
Sales Data
Buying
Instructions
x
x
x
Media Cost
R
…
x
x
Mail
R3
j@.com
x
Radio
C. Ko
R2 x
x
Print
R2
x
TV
I. Smith i@.com
R1 x
Sales
Email
R1
Web site
j@.com
Offline
Social
J. Doe
Search
UID
Behavior
sDisplay
Email
UID
Demos
Name
Remove Personal
Identifying Information
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
Aud. Digital
Marketing
Mix Model
MMM
INTEGRATION
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ROI SUMMARY
$#.##M
$#.##M
+10k%
#.##k%
-1k%
#.##m
###k
$$$
$$
$
Masked for example purposes
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ROI BY DISPLAY SITE & DEVICE
Digital
Source 1
Digital
Source 3
Digital
Source 2
Digital
Source 5
Digital
Source 4
Masked for example purposes
Digital
Source 7
Digital
Source 6
Digital
Source 9
Digital
Source 8
Digital
Source 10
PPC brand/ PPC brand/ PPC brand/
Device 1
Device 2
Device 3
Videocom…/
Device 4
Videocom…/
Device 5
Videocom…/
Device 6
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ROI OF SEARCH
Masked for example purposes
keyword combination1
##,###
$0.##
$##,###
keyword combination2
##,###
$0.##
$##,###
keyword combination3
##,###
$0.##
$##,###
keyword combination4
##,###
$0.##
$##,###
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
PROJECTED ROI
+##.#%
Masked for example purposes
+$###,###
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
WHAT THIS MEANS FOR KRAFT
Revenue contribution for every touchpoint
Total ROI, Channel, Device & Exposure
Synergy
Predictive optimization
Programmatic, rules-based precision
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WHERE WE’RE HEADED
Integration
with mix
modeling for
non-digital
touch points
Experimentation
with
set-top box,
over-the-top &
addressable
TV data
Addition
of other
variables
Integration of
Online
Campaign
Ratings, brand
equity
& others
OUTCOMES
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ROI FOR EVERY
TOUCHPOINT
FORWARD-LOOKING
OPTIMIZATION
RULES-BASED
PRECISION
MARKETING
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
KRAFT: REVOLUTIONIZING MARKETING
MISSION
JOURNEY
OUTCOME
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AUDIENCE Q&A

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