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WHAT MATTERS MOST IN DIGITAL ADVERTISING REAL RETURNS.

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Presentation on theme: "WHAT MATTERS MOST IN DIGITAL ADVERTISING REAL RETURNS."— Presentation transcript:

1 WHAT MATTERS MOST IN DIGITAL ADVERTISING REAL RETURNS

2 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 2 THE EVOLUTION OF THE MEDIA LANDSCAPE #Consumer360

3 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 3 PRESENTATION SPEAKERS Scott McKinley Nielsen Advertiser Solutions Ross Link Nielsen Global MROI Solutions Bob Rupczynski Kraft Foods Group Kathy French Nielsen Advertiser Solutions #Consumer360

4 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 4 MORE PRECISE MEDIA CREATING MORE GRANULAR DATA SMALL DATA MEDIUM DATA BIG DATA NATIONAL MARKET STORE HOUSEHOLD INDIVIDUAL TV, Radio, Print In-store Merchandising Direct Mail, Digital, Social & Mobile #Consumer360

5 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 5 INTELLIGENT PRIORS CALIBRATION DIGITAL MEDIA CONSORTIUM MULTI-TOUCH ATTRIBUTION MODELING BRIDGE TRADITIONAL & NEW MARKETING REALITIES Full outlet & touchpoint CONTEXT with enhanced digital inputs Full outlet & touchpoint CONTEXT with DEEP DIGITAL GRANULARITY Deep digital granularity Full outlet & touchpoint context ONE VERSION OF TRUTH CURRENT Multi-touch Attribution Modeling Enhanced Marketing Mix Model EMERGING Enhanced Marketing Mix Modeling Next Generation Marketing Mix Model FUTURE #Consumer360

6 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 6 DIGITAL MEDIA CONSORTIUM THE MOST COMPREHENSIVE STUDIES OF THEIR KIND 12 Brands 3.79 Billion Facebook Impressions 536 Million Google Impressions 2.4 Billion Total Sales 132 Mix Models 11.3 Million Data Observations MORE ACCURATE BETTER METHODOLOGY GREATER EFFICIENCY OUTCOMES #Consumer360

7 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 7 NETWORK PATH ILLUMINATES PATH TO PURCHASE THE INFLUENCE OF ONE ACTIVITY ON ANOTHER TV FACEBOOK GOOGLESALES TV GRPs Drive Facebook Impressions Facebook Impressions Drive Search Clicks Google Search Clicks Drive Sales NETWORK PATH EXAMPLE #Consumer360

8 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 8 A SAMPLING OF WHAT WE LEARNED Direction of arrows indicates how volume shifted from one node to another as a result of Network Analysis #Consumer360

9 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 9 A SAMPLING OF WHAT WE LEARNED Direction of arrows indicates how volume shifted from one node to another as a result of Network Analysis a g d h f j klmn 13% 87% 15% 14% 4% 67% 15% 4% 2% 80% 6% 1% 93% 60% 3% 37% 7% 5% 4% 84% 5% 2% 93% 47% 3% 0% 50% 40% 2% 58% 4% 3% 93% sampling other digital broadband halo tv PR online video PR online video other digital #Consumer360

10 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 RECOMMENDED METHODS YIELD BETTER MODELS & GREATER CONTRIBUTIONS * Brands that could not be read using recommended method are excluded 16% FacebookGoogle Mean Relative Contributions* Recommended vs. Other Variants 31% UNDERESTIMATION OF ROI FROM VARIOUS METHODS AVAILABLE TODAY OUTCOME #Consumer360

11 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 THE BASICS OF ATTRIBUTION MODELING WHAT IS IT?OUTCOMES Big data Connects person-level exposure to purchase Real time ROI What’s working or not Path to purchase Predictive optimization 1:1 precision #Consumer360

12 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 12 THE PROMISE OF MTA MAPPING THE NEW CONSUMER JOURNEY FROM THE IMMENSE MEDIA LANDSCAPE MEDIA TOUCHPOINTSSHOPPING BEHAVIORS E-commerce Purchase In-store Purchase PURCHASE BEHAVIOR Out of Home Online TVDirect Mail Tablet Mobile Search Website Store #Consumer360

13 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 13 NEW TOOLS ARE ACCELERATING THE SPEED WITH WHICH WE CAN ACQUIRE, PROCESS & ANALYZE DATA Panels Aggregate Big data Granular PPTs Insights Dashboards Action Weekly/ Monthly Manual Machine learning Real-time #Consumer360

14 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 14 MAKING SENSE OF THE NEW WEALTH OF INFORMATION Identified new opportunities Partnered with the best modelers Created the solution #Consumer360

15 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 MTA ATTRIBUTES SALES TO CAUSES, GOING DEEP ON DIGITAL Display ad Intended customer Video ad Real-time Analytics: Attribution Value (incremental sales) SocialEmailSearchBrand web site E-commerce store Physical store $88 $134 $48 $32 $0 $64 Purchase $30 $60 $9 $51 $93 $57 #Consumer360

16 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 16 Marketing ROI Attribution by touchpoint Allocation recommendation “What if” scenario planning Aud.DigitalOfflineSales UID Demos Behavior s Display Search Social Web site Email TV Print Radio Mail Price Promo Ecom In-Store R1xxxxxxxx R2xxxxxxxxx R…R… xxxx NameEmailUID J. Doej@.comR1 I. Smithi@.comR2 C. Koj@.comR3 Exposure DataSales Data MARKETING INTELLIGENCE PLATFORM CLIENT DATAMARKETING DATABASE Media Cost Buying Instructions Marketing Mix Model MTA PLATFORM Remove Personal Identifying Information DASHBOARDS MMM INTEGRATION PROGRAMMATIC BUYING #Consumer360

17 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 17 ROI SUMMARY #Consumer360 Masked for example purposes $$$ $$ $ $#.##M$#.##M +10k% #.##k% -1k% #.##m###k

18 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 18 ROI BY DISPLAY SITE & DEVICE #Consumer360 Masked for example purposes Digital Source 1 Digital Source 2 Digital Source 4 Digital Source 6 Digital Source 8 Digital Source 10 Digital Source 3 Digital Source 5 Digital Source 7 Digital Source 9 PPC brand/ Device 1 PPC brand/ Device 2 PPC brand/ Device 3 Video- com…/ Device 4 Video- com…/ Device 5 Video- com…/ Device 6

19 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 19 ROI OF SEARCH Masked for example purposes keyword combination1 keyword combination2 keyword combination4 keyword combination3 ##,### $0.## $##,### #Consumer360

20 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 20 PROJECTED ROI Masked for example purposes #Consumer360 +$###,###+##.#%

21 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 21 WHAT THIS MEANS FOR KRAFT Revenue contribution for every touchpoint Total ROI, Channel, Device & Exposure Synergy Predictive optimization Programmatic, rules-based precision #Consumer360

22 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 22 WHERE WE’RE HEADED ROI FOR EVERY TOUCHPOINT FORWARD-LOOKING OPTIMIZATION RULES-BASED PRECISION MARKETING 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 #Consumer360

23 Copyright ©2014 The Nielsen Company. Confidential and proprietary. 23 KRAFT: REVOLUTIONIZING MARKETING MISSIONJOURNEYOUTCOME #Consumer360

24 AUDIENCE Q&A

25

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