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CRACK THE CODE ON CROSS PLATFORM PLANNING, BUYING, AND MEASURING MULTISCREEN CAMPAIGNS

JANUARY 6, 2014 – PROFESSORS’ INSTITUTE – UNIVERSITY OF CINCINNATI Joe Stagaman Ad Effectiveness Analytics Joe.stagaman@nielsen.com


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

TOPICS FOR TODAY

1. Current State of Cross-Platform Media Consumption – Focus on Video

2. Nielsen / ANA Multi-Screen Advertising Survey Highlights

3. The Promise and the Reality of Cross-Platform Advertising Today

4. Some Ways to Take Cross-Platform to the Next Level

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THE CURRENT STATE OF CROSS-PLATFORM MEDIA CONSUMPTION

3

Copyright ©2012 The Nielsen Company. Confidential and proprietary.


Copyright Š2012 The Nielsen Company. Confidential and proprietary.

TRADITIONAL TV VIEWING STILL DOMINATES VIDEO CONSUMPTION Video viewing across screens for the average P2+ Traditional TV 84% 38+ hrs video viewing / week 34+ hrs watching linear TV 2+ hrs with gaming and DVD devices 1 hr watching video on PC/Smartphones 1% 2% 4% Watching Video on a Mobile Phone Watching Video on the Internet

3%

7% Time-shifted TV

Using a Game Console Using a DVD / Blu-Ray Device

How representative will this be of the average consumer in 3 years ? Source: Cross-Platform Report Q2 2013

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Copyright Š2012 The Nielsen Company. Confidential and proprietary.

TOP IN-HOME STREAMERS CONSUME MEDIA DIFFERENTLY Media consumption for online video viewing quintiles

Average daily minutes Online video usage quintiles

# of people (000s)

Streaming video online

Using the internet overall

Watching TV

OV quintile 1

28,553

26.8

62.3

243.0

OV quintile 2

28,569

3.3

39.5

273.9

OV quintile 3

28,555

1.1

25.5

287.8

OV quintile 4

28,540

0.3

16.7

274.0

OV quintile 5

28,562

0.0

9.5

284.5

Non-streamers

95,283

n/a

1.7

258.1

The future of media consumption or niche? Source: Nielsen Npower Q2 2013, Video Census Q2 2013, Mobile Video Report Q2 2013

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Daily minutes Ranked consumingby TVIn-Home and using Internet on a PC, by TV viewing quintile Television Viewing Behavior 30

TV

29

Internet

700

644

25

600

20 20

16

15

500

17

15

400

331

12

300

10

TV Consumption

Internet Consumption

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

HEAVY TV VIEWERS ARE HEAVY ONLINE USERS

207 200

118

5

0

0 Non-TV Viewers

Source: Cross-Platform Report Q2 2013

100

36

0 TV Quintile 1

TV Quintile 2

TV Quintile 3

TV Quintile 4

TV Quintile 5

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VIDEO IS GROWING AT THE EXPENSE OF NON-VIDEO Monthly time spent online by the average consumer P2+

28:29

27:21

Non-Video

22:38

20:53

Video

5:51

6:28

Q2 2012

Q2 2013

Source: Cross-Platform Report Q2 2013

-8% yoy

+11% yoy

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MORE SCREENS, FAST ADOPTION

% of US TV households owning one or more of each screen-enabled device 89%

87%

83% 74%

77%

79%

62%

39%

43%

46%

44% 38%

31%

29%

24% 14%

DVD

PC w/Internet

Video Game

Q4 2008

DVR

Q4 2010

Source: All devices except Smartphone and IPTV - Nielsen NPOWER based on scaled installed counts for the entire quarter, HHLD IPTV – Nielsen Custom Data, HHLD Smartphone based on Nielsen Mobile Insights for the quarter, P13+ Nielsen Q2 2013 Cross Platform Report

Smartphone

Tablet

Q2 2013

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Copyright Š2012 The Nielsen Company. Confidential and proprietary.

NIELSEN/ANA CROSS-PLATFORM SURVEY RESULTS

Nielsen worked with ANA to survey marketers, agencies, and publishers on their attitudes around cross-platform. We found that marketers believe that importance of Integrated Multi-Screen Advertising is rising. In effect, marketers believe a consistent metric to measure reach and resonance is needed.

9


Copyright Š2012 The Nielsen Company. Confidential and proprietary.

INTEGRATED MULTI-SCREEN ADVERTISING WILL GROW IN IMPORTANCE Marketers see the continuing rise of video across platforms 2013

2016 85%

55%

38%

12% 6% 1%

1%

Very Unimportant

0%

0%

Somewhat Unimportant

2%

Neither Important nor Unimportant

Somewhat Important

Very Important

Q: Thinking of today and three years from now, indicate the importance of integrated multi-screen campaigns in effectively delivering a marketing message

Source: Nielsen / ANA Cross Platform Survey 2013

10


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

INTEGRATED MULTI-SCREEN SPENDING WILL GO UP •

Driven by video moving across platforms

2013

2016 None: 2%

None, 14%

(26-100%), 29% (0-25%), 57%

(0-25%), 35%

(26-100%), 63%

Q: In relation to your total media spend, what % can be attributed to integrated multi-screen campaigns today and how much do you think it will be 3 years from now?

Source: Nielsen / ANA Cross Platform Survey 2013

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Copyright Š2012 The Nielsen Company. Confidential and proprietary.

MARKETERS WANT COMMON METRICS But currently struggle with different metrics across screens

Current Preferred

70%

Use variety of metrics specific to individual screen

21%

16%

Use one set of metrics across all screens

Don't measure effectiveness/ROI

79%

14% 0%

Q: How are you currently measuring the effectiveness/ROI of your integrated multi-screen campaigns and how would you prefer to measure the effectiveness/ROI of your integrated multi-screen campaigns? Source: Nielsen / ANA Cross Platform Survey 2013

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Copyright ©2012 The Nielsen Company. Confidential and proprietary.

A WAY OF THINKING ABOUT ADVERTISING EFFECTIVENESS (AND MEASURING IT)

WHO DID MY CAMPAIGN REACH?

WHAT IMPACT DID IT HAVE ON MY BRAND?

WHAT DID IT MOTIVATE THEM TO DO?

13


Copyright Š2012 The Nielsen Company. Confidential and proprietary.

MARKETERS CARE ABOUT MORE THAN JUST AUDIENCE Resonance and Reaction are almost as important Somewhat Important

Which audience was reached

Very Important

75%

22%

97%

32%

Effectiveness of advertising in influencing opinion

29%

66%

95%

46%

Ultimate sales outcome

29%

63%

92%

35%

Q:. How important is it to understand each of the following for your integrated multi-screen campaigns? Source: Nielsen / ANA Cross Platform Survey 2013

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THE PROMISE AND REALITY OF CROSS-PLATFORM ADVERTISING TODAY

15

Copyright ©2012 The Nielsen Company. Confidential and proprietary.


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

THE CROSS-PLATFORM REACH ISSUES WE ARE SOLVING Making TV and Online work more effectively together •

How do I maximize unduplicated reach ?

TV 70%

Online 30%

» How do I maximize audience overlap ?

TV 70%

*Illustrative Example

Online 30%

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THE OPPORTUNITY: EXTENDING REACH Smart planning and buying can drive incremental reach

»

» 2/3 duplication – near Random Overlap

TV Only 49%

79% *Illustrative Example

Both 21%

Online reach half duplicated – yields significant overall incremental reach

TV Only 55%

Online Only 9%

Incremental Reach

Both 15%

Online Only 15%

85% 17


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Most digital campaigns are small relative to TV

TV TOTAL REACH –

68%

ONLINE TOTAL REACH –

7%

What was the “TV only, Online only, both” reach ? Source: Nielsen, US Cross-Platform Campaign Ratings

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Copyright ©2012 The Nielsen Company. Confidential and proprietary.

ONLINE CAN GENERATE HIGH LEVELS OF REACH But, GRP’s associated with a given reach level vary significantly

Reach

GRP’s Source: Nielsen Online Campaign Ratings

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Copyright ©2012 The Nielsen Company. Confidential and proprietary.

TV/ONLINE/BOTH REACH FOR AVERAGE CAMPAIGN MEASURED BY NIELSEN CROSS-PLATFORM CAMPAIGN RATINGS Most of the Online reach is overlap with TV TV ONLY –

63%

BOTH

-

5%

ONLINE ONLY –

2%

On average, 71% of online reach overlapped with TV Source: Nielsen Cross-Platform Campaign Ratings

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Copyright ©2012 The Nielsen Company. Confidential and proprietary.

AVERAGE CAMPAIGN OVERLAP MEASURED BY NIELSEN CROSS PLATFORM CAMPAIGN RATINGS IS ALMOST “RANDOM” Regardless of whether objective was to extend reach or maximize overlap

Projected Random Overlap –

5%

Actual Audience Overlap –

5%

>50% of Nielsen Cross Platform Campaign Ratings measured campaigns show close to random overlap Source: Nielsen Cross-Platform Campaign Ratings

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Copyright Š2012 The Nielsen Company. Confidential and proprietary.

THE PICTURE DIFFERS ACROSS DEMOS Online over delivers against both younger men and women

Demo

Avg. % of Online Impressions Incremental Reach Index

Male 18-29

208

Male 35+

43

Female 18-29

205

Female 35+

48

Source: Nielsen Online Campaign Ratings

22


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

DRIVING INCREMENTAL REACH WITH ONLINE CAMPAIGNS Key factors: •

Size of the TV campaign •

Size of the online campaign •

Harder to drive incremental reach points with online if TV already has a high level of reach

The amount of incremental reach an online campaign is of course a function of amount of reach the online campaign has in the first place

Key is understanding concept of “random duplication” of reach between media types •

We think that’s the right focal point

Delivering duplication much less than random = better incremental reach, given the above

Delivering duplication much more than random = less incremental reach

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CROSS-PLATFORM SOLUTIONS

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Copyright Š2012 The Nielsen Company. Confidential and proprietary.


Copyright Š2012 The Nielsen Company. Confidential and proprietary.

BETTER PLANNING, BUYING AND MEASUREMENT TOOLS

Improved ability to drive incremental reach or maximize overlap

Planning

Buying

Measurement

Build digital plans based on TV viewing behavior

Fuel Real Time Bidding for digital audiences based on TV viewing behavior

Measure who you actually reached on TV, online, and on both

Data Fusions for Planning + TV Audience Segments for Real Time Bidding

Optimization

Learn how to improve xplatform audience performance

Cross-Platform Campaign Ratings (Nielsen Cross-Platform Campaign Ratings)

25


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

CROSS-PLATFORM CASE STUDY •

Driving incremental reach by using TV and online video assets together What they did: Campaign background:

Client: service software company, large TV spend

Demo: P18-29

Plan with “Share Shift” (TV/Online data fusion) 83.9%

Original (all TV)

Shifting budget from spot TV to Online Video

Specific Media in-target guarantee for Online Video

Nielsen Cross-Platform Campaign Ratings as the basis for the audience guarantee

86.2%

5% Online

Buy using Nielsen Audience SegmentsTV Viewing

86.6%

10% Online

86.6%

15% Online

Measure using Nielsen CrossPlatform Campaign Ratings Unduplicated Reach 88.8%

TV-Only 70.8%

Light TV viewers

OnlineOnly 2.8% CrossPlatform 15.2% 26


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

CROSS-PLATFORM TAKEAWAYS

1. TV still dominates, but cross-platform is growing quickly, especially younger demos

» 2. Advertisers expect cross-platform importance to increase, and plan spending accordingly » 3. Advertisers want standard cross-platform metrics for reach, resonance and reaction

» 4. Most Nielsen Cross-Platform Campaign Ratings measured cross-platform campaigns show “random duplication”

» 5. Online can drive high levels of reach » 6. A few leaders are successfully extending reach or maximizing overlap

» 7. New planning, real time bidding and measurement tools fuel successful cross-platform campaigns

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THANK YOU

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Copyright Š2012 The Nielsen Company. Confidential and proprietary.


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

HOW WE MEASURE CROSS-PLATFORM WITH NIELSEN CROSS PLATFORM CAMPAIGN RATINGS™

TV ads encoded with Nielsen Audio Watermark NPM panel

1. Identify the ads

2. Measure Reach and Frequency

3. Identify overlap

4. Calibrate results

Digital ads tagged with Nielsen tag Online Ratings

Nielsen CrossPlatform Homes Panel

TV-Only Reach

CrossPlatform Reach

DigitalOnly Reach

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Copyright ©2012 The Nielsen Company. Confidential and proprietary.

YOUNGER DEMOS ARE BIGGER CONSUMERS OF ONLINE

Monthly time spent watching video, by screen

Persons 18-24

Persons 25-54 5:14

Mobile+ Online

TV

6:07

7:13

Mobile+ Online

143:59

TV

11:20

114:06

Q2 2013

Q2 2013

Clear shifts in behavior, with younger consumers embracing more screens more quickly Source: Nielsen Cross-Platform Report, Monthly Time Spent (hh:mm), *Online and Mobile data based on different methodology

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Copyright Š2012 The Nielsen Company. Confidential and proprietary.

AUDIENCE-FOCUSED MEASURES MATTER

Somewhat Important On target percentage audience delivery

Audience measures (reach, frequency, GRPs)

Brand lift

Viewability of creative

Click through rates (CTR)

Server based impressions

Very Important

55%

38%

93%

66%

25%

91%

59%

31%

90%

53%

36%

30%

48%

52%

11%

89%

78%

63%

Q. How important are each of the following measures in enabling your media planning and buying process for integrated multi-screen advertising?

Source: Nielsen / ANA Cross Platform Survey 2013

31


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

THE OPPORTUNITY: MAXIMIZING OVERLAP Online exposure makes TV Ads work harder (and vice versa)

TV + Internet Ad Exposed

TV Ad Only Exposed

80%

57% 44%

36%

General Recall Source: Nielsen, US based example – TV Brand Effect

Brand Linkage 32


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

DRIVING INCREMENTAL REACH – IT CAN BE DONE Beverage company uses digital to reach consumers TV did not

Expanding reach for M 18-34

17% TVONLY

17% ONLINEONLY

85% of online impressions incremental to TV

3% CROSS-PLATFORM OVERLAP

Source: Nielsen Cross-Platform Campaign Ratings

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Copyright ©2012 The Nielsen Company. Confidential and proprietary.

DRIVING TV / ONLINE OVERLAP – IT CAN BE DONE Telecom company drives TV / Online overlap

Maximizing overlap for M 18-34

15% ONLINE ONLY

35% TV ONLY

48% Of TV viewers also saw Online ads

33% CROSS-PLATFORM OVERLAP Source: Nielsen Cross-Platform Campaign Ratings

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Nielsen presentation