Better Advertising Effectiveness Measurement

Better Measures of

Advertising Effectiveness

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ABXAdvertising Benchmark Index

“Half the money I spend on

advertising is wasted; the trouble

is, I don’t know which half.”

John Wanamaker, 1838-1922,

the father of modern advertising

A Paradigm Shift from an Age-

Old Problem to Current Day

Solution!

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THE PROBLEM

Finding out Which Half Works

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In the early days of advertising, 90% of America was reached by

just a few networks. Nearly all ads were tested to protect

investment. Today, less than 2% of ads are tested.

In Wanamaker’s Day, the Problem had just Begun

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In Today’s World, Billions of Dollars go down the

Drain Because 98% of ads are Untested

According to a study by Proxima Consulting in 2015, “up to 60% of

global marketing budgets are being wasted every single year!”

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Today’s Ad Landscape is Messy; Most Ads are Wastefully

Underperforming

Good Ads

Underperforming Ads

AB

X C

reat

ive

Sco

re In

dex

The Explosion of Media Channels and Creative

Produced has led to Woeful Ignorance

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THE SOLUTION

There must be a way to fix this!

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Is there an Answer?

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Imagine if?

• You could test ALL ads in ALL media from ALL competitors?

• You would know how any ad performed in just 24-48 hours?

• You were provided with the tools & insights to improve the creative effectiveness of your ads on an ongoing basis?

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& What if?

• You could achieve all of this at significantly reduced costs?

• You could link ad test scores to in market sales and revenue via marketing mix models?

• And you could predict the outcome of your ad placements, in real dollars & cents?

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Changing the Paradigm – the ABX Creative

Improvement System

• 100,000 normative ads for creative brainstorming

• 24-48 hour low-cost Pre-tests enables revisions & retests

Stage One Creative

• In-market Post-Tests on ALL client and competitive ads across ALL media are measured

• Results enable media plan refinement and MMM

Stage Two

Creative Benchmarks

• Continuous in-market tracking measures success

• Quarterly deep-dives provide additional detailed insights

Stage Three In-Market Tracking

The Interviewing Experience – 40% Better

• Interviews collected using ABX

patent-pending visual ‘ocular’

survey system.

• Improved ‘interviewing

experience’ leads to greater

engagement vs traditional “text

based” surveys.

• A vastly improved data

collection process which reduces

a lot of the cost

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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

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Note:• “Reputation” is net of “better” minus “worse”• “Any Action” is one or more calls-to-action, highlighted in yellow

• “Blue” data is included in The ABX Index

• The ABX Index correlates MMs

• ABX data correlates with legacy testers

• ABX Index is customizable based on factors

that correlate w/client needs.

ABXIndex

ABX ID

AdvertiserABX

Index

Brand

Linkage

Clear

Benefit

Easy to

UnderstandReputation

Any

Action

Contact

Company

Visit

Website

Look

ForPurchase Recommend

Talk to

SomeoneRelevant

See

AgainLike 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

The Advertising Benchmark Index (ABX)

Case Study: Quick Serve Restaurants

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Case Study: Quick Serve Restaurants

How Your Company can Reclaim the Waste

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All Ads Normative

Digital Ads

Print Ads

FSI Ads

Where does your brand

stand versus peers & competitors?

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All Ads Normative

Radio Ads

Outdoor Ads

TV Ads

Where are your brand’s

strengths, weaknesses,

opportunities & threats?

Strong performers

Weak performers

$47 million opportunity

through ad substitution

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Digital Ads

Print Ads

Radio Ads

TV Ads

Outdoor Ads

FSI Ads

The ad inventory is immense & daunting! (>100 ads)We measure it all, on your desktop in 24-48 hours

Highest-Scoring TV – 30s

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Lowest-Scoring TV – 15S

Low-Scoring OOH

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Highest-Scoring FSI

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Highest-Scoring Online Video

Financial Opportunity - $47 MillionA Fast Food Company like McDonald’s can see which ads are

resonating with ABX. Creative effectiveness is improved $47 million

annually by substituting “average” ads for “underperforming” ones.

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IT ALL CORRELATES

Market Mix Models and Predictions become Possible

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In the ideal world, spend on an ad-by-ad basis would align

perfectly with ad sales lift, but this is not the case. In fact, it is

most often highly inefficient and wasteful!

R² = 0.1138

0

20

40

60

80

100

120

140

160

3 5 7 9 11 13 15

SPEN

D P

ER A

D S

QR

T

Ad SALES LIFT SQRT

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However, ABX has proven to align and correlate extremely well

with individual ad sales lifts. This provides a great resource for

allocating marketing funds across individual ads!

R² = 0.5527

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5

6

7

8

9

10

11

12

13

3 5 7 9 11 13 15

AB

X IN

DEX

CR

EATI

VE

SCO

RE

SQR

T

AD SALES LIFT SQRT

Using the ABX metric to allocate media budget by ad would have generated + $21MM (2%) in incremental revenue for this Brand.

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The Importance of Ad Creative

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Baseline Store Promotions Short-Term.Media Spend

Short-Term.Media Creative Long-Term Media

Media Creative

is 60-80% of the full

ad effect

It’s 3 p.m. on Wednesday. The CMO of the world’s largest retailer needed feedback on which of 3 ads to run by Friday. ABX tested the ads and served a recommendation of a spot which scored 20% stronger than the other ads. Ad selected and ran that weekend!

The creative staff of a major beer brand utilized consistent messaging across out-of-home, online video, and radio. But while online video and out-of-home were performing well, ABX benchmarks for the radio ad showed this ad was underperforming. ABX comparative data further revealed that the most effective radio ads in their competitive set used simple voiceover with minimal background effects. The radio ad was remixed, simplifying the presentation. With no change in copy, the insights delivered by ABX improved the remixed radio spot 68%.

One of the world’s largest retailers wanted to place a new symbol/logo on all of their ads, but was concerned of possible detrimental impact on their reputation. ABX tested the concept within one week and had the assurance that this move would actually improve the effectiveness of their ads.

Mini Case Studies

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All Data and Insights Delivered in

Real-Time Access

On the Desktop: Mobile:

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All Creative Data with Easy-to-Use Filtering Tools

If John Wanamaker could See us Now!

• Insights on EVERY ad

• Across ALL media types

• Against ALL competitive ads

• Single methodology for cross-media comparison

• Robust metrics for market mix models and other

• Complete feedback loop for creatives

• Results in 24-48 hours

• All for a fraction of what is charged by legacy providers

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What’s Next & the Offer

• We invite you to investigate yourself. Find out if

what we claim is true. We are open to discussion.

• We offer to show you “real & current” data on your

own brands & categories. We can show you how

your ads stack up versus peers and competitors.

• Give us a call and lets arrange a no-obligation

conference to discuss how ABX can change the

paradigm and give you significantly better, faster

and more complete feedback on your own

advertising effectiveness.

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Gary Getto

President,

Advertising Benchmark Index

E: Gary@adbenchmark.com

M: 347.443.8869

http://blog.adbenchmark.com

Michael Wolfe

CEO

Bottom Line Analytics Global

E: mjw@bottomlineanalytics.com

M: 678.314.8446

www.bottomlineanalytics.com

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Thank You!!

Angela Jeffrey

Vice President,

Advertising Benchmark Index

E: Angie@adbenchmark.com

M: 347.443.8869

http://blog.adbenchmark.com

Contact us for questions & further information

Are you ready for something new that is quicker, cheaper, deeper in coverage and better?