©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics 1 Advertising Measurement A Framework for Evaluating Impact & Results

©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics

1

Advertising Measurement

A Framework for Evaluating Impact & Results


Agenda

Context Considerations For Establishing Objectives & Goals Capturing Information Systematically Communicating Insights & Learning A Frame Of Reference Appendix


Executive Summary

Our measurement approach must readily enable business decisions. Comparability is essential for evaluating alternatives

Throughout campaign Across vehicles By segment By product

We will need to establish & capture common “Advergraphics” in order to evaluate relative business results

Apples to apples comparisons Most of the key questions posed by Marketing Leadership require rigorous attribution

capabilities While some metrics will be common and/or we will have the ability to

aggregate/disaggregate, others will be unique to a specific vehicle. Some of the metrics will also roll-up and down between advertising and the “Engagement Cycle” dashboard.

Advertising is relatively continuous & so too should be the metrics On-going sampling or tracking versus static periodic reads


Marketing Dashboards

Best practices of successful marketing dashboards: Tie measures to strategy – aggregated & disaggregated.

Finance Customer relationships Brand health Internal efficiency

Focus on small set of metrics Organizational focus

Ensure stakeholder buy-in People who’s compensation and performance evaluation will be impacted Metric owners Finance

Tie to decision making process Design dashboard to feed the decision-making process Frame #’s within a qualitative context


Activity Activity & Analyses Planned & Systemic

80%

15%

5%

Marketing Measurement Today

Activity Activity & Analyses Planned & Systemic

Ch

ara

cteristics

•Labor intensive•Single question or lens focused

•Premium associated with data gathering

•Measures are often defined “on the fly”

•Campaign-centric data accumulation and test design

•Labor intensive, low volume •Advanced analytic tools and techniques are leveraged

•Not limited by need to information gathering to be systematic

•Addresses questions or analyses that do not need frequent re-examination

•Designed to produce primary measurement and customer insight

•Process intensive•Well-established success metrics•Data provides analysis dexterity (ability to answer multiple questions or be viewed through multiple lenses)

•Customer-centric and relationship perspective•Supports single, multiple and ongoing contact streams•Comprehensive view of a complex business•Supports strategic decision-making systemically• Integrated with strategic planning process•Returns financial results

In general, companies should spend between 5-10% of their total marketing budget on measurement.1

1Source: Boston Consulting Group & Millward Brown2Source: Marketing Leadership Council

Measurement Relative Sophistication

% of US Companies2

Lo High

ROIQuestions

InsightGap

Today’s Capabilities


Advertising Response Curves By Product

Financial Services has one of the most challenging consumer response curves1

The complexity of the decision-making process, financial magnitude & the extraordinary influence of external factors are certainly some of the many contributors to this.

Source: Millward Brown

Trial Rate

% Consumer Awareness

Trial Rate


Trial Rate

Financial ServicesPersonal CareImpulse Products



Response Curves By Vehicle

The same weight produces different patterns in awareness build and decay

TV GRPs

TV

Magazine

MagazineGRPs

% A

wa

ren

ess

Time



Advertising Effectiveness Framework

Clients are spending a significant amount of money on advertising and needs measurement insights in order to optimize the impact of these expenditures.

The Marketing Leadership Team has a need and desire to begin evaluating advertising effectiveness.

1. Establishing Clear Objectives & Goals

2. Capturing Information Systematically

3. Communicating Insights & Learning

Key Question:How Might We Think About Evaluating Advertising?


Advertising Objectives & Goals

There are many considerations which need to be taken into account when establishing objectives & goals for an individual advertisement and they may vary based upon the strategic intent of each campaign.

Specify which part of the customer engagement cycle the advertisement is striving to influence Establish brand objectives (if any) as well as setting specific product objectives

Create/reinforce or change Perception or behavior

Select a specific target audience Prospect or customer Emerging, Engaged, Established, High Net Worth, Active Trader

Understand the context of the campaign as well as the marketplace Integrated stand alone Competitive activity Leading economic indicators & stock market performance

Create the learning plan Rigorous test design Data requirements Analytic framework

©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics ©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics

Vehicle Impact Varies Across Engagement Cycle

As the strategy shifts from expansion towards acquisition, the marketing measurement and infrastructure must evolve.

Objectives

Vehicle

ExpansionInvestmentAwareness Consideration InquiryCustomer

Engagement Cycle

• Breakthrough • Relevance • Differentiate• Inform

• Activate • Engage

TV 4 •Effective Reach 3 •Delivers rich imagery & personality

2 •Product features/benefit

1 •Reinforces brand image

0 •No significant role

Radio 4 •Augments Reach & Frequency

3 •Reinforces key messages

1 •Product features/•benefit



Print 2 •More Targeted reach

3 •Readily enables comparisons

4 •Detailed explanation 1 •Offer inducement•Reinforces brand image


Internet 1 •Targeted but ext. limited reach

2 •Rich info/exp •Portal proliferation

4 •Extremely detailed•Self directed•Personalized

4 •Enabling tool• Immediacy•Personalized

3 •Ongoing source of value

•Loyalty mktg vehicle•Penetrate enhanced needs set

Direct Mail 1 •Targeted Reach 2 •High level comparisons

4 •Highly targeted message

4 •Offer inducement•Call to action

1 •Penetrate enhanced needs set

Call Center 0 •No significant role 1 •Prospecting 2 •Detailed experience•Product features/benefit

3 •Personalized offer•Real time dialing

4 •Customer experience

Sales Force 1 •Prospecting 2 •Enhanced credibility 4 •Can overcome specific barriers

•Real-time dialing

3 •Share of wallet•Depth of knowledge

3 •Rich customer exp.•Relationship may drive loyalty

Event/Sponsorship

4 •Effective reach•Positive Association (Halo)

1 •Can deliver some imagery & key message

1 •Deliver/sample experience




End-to-End Measurement

Advertising metrics will need to span the “Engagement Cycle” and serve as inputs to modeling.

TIME

Exposure

PerceptionMessageImmediate RelevanceCredibility

Invest

ExperienceInterestStatusSalience

Use/Interaction

MemoryEnhancementBrand Interaction

AdvertisingCycle

Metrics

• An additional challenge is accounting for the “cumulative” effect of advertising as well as “latency” – Ad impressions accumulate to form brand equity.

• As relevance increases so does the time horizon for which the advertising has an impact.• Enhancement is the interaction between experience & expectations where associations are elevated

beyond purely functional attributes to beliefs bonding.


Capturing Information

A “Cradle To Grave” approach is required and the measurement metrics and methodology need to be consistent throughout

Advertisement Development Execution Evaluation

• Intercept interviews– Branch– Call center– Web Site

• Standardized questions– Communication clarity– Relevance– Appropriateness– Likelihood of action

• Tracking– Enjoyment

• Business results• Return on marketing investment* (ROMI)

– CPI– CPA– Etc.

• Brand imagery & equity• Comparison to objectives• Media execution

• Ad strategy & theme– “What”

• Early in creative process• Qualitative & Quantitative• May be iterative; pre & post production• Standardized questions – “How”

– Main message– Persuasiveness– Likes/dislikes

• Clear action standards developed in advance

• Precisely specified target market• Evaluating copy & vehicles (integrated

campaign)

TIGHT LINKAGE• Awareness Index• Persuasion

• Imagery• Media Plan

• Recall• Message Retention

*Caution: Using ROI as a key performance metric for marketing is dangerous because:1) It gives excessive importance to the “I”2) Is easier to achieve by reducing costs than increasing revenue3) Leads to lower marketing spending and sub-optimal, relative to goals, performance

Source: Marketing Science Institute, “The Long & Short View of Marketing Metrics”, Tim Ambler


Integrated Advertising Measurement

Holistic advertising measurement is an on-going cycle of testing & learning which requires considerable cross-team collaboration.

• Brand Equity

• Response Modeling

• Performance Measurement

In-Market Monitoring

Communication Strategy

Communication Assessment

BrandPositioning

• Qualitative & Quantitative Research

• Customer Segmentation

• Concept Testing

• Execution Insights

• Pre-Test Copy/Execution

• Tracking

Measurement Objectives

Project Point of Entry

CustomerData Mart

MRD


Advergraphics

To enable robust analytics, companies must capture common “AdverGraphics” across all of its advertising – A process challenge

“AdverGraphics” -- Demographic type characteristics which describe in detail the nature of the ad itself AND all individual placements

Advertisement

? Show name/program? Media type: network, spot, cable, etc.? Position within commercial break: first,

last, other? Daypart? Audience: audited impressions &

demographics? Audited GRP’s? Run date(s)? Cost of airing Network TV; Ad position & Audited

AudienceMEETING WITH ARNOLD TO REVIEW

THEIR DONOVAN SYSTEM - Much of his type of data captured there

Network TV has much more robust data capture than other broadcast vehicles

Name Publication type

Newspaper: financial, national, regional

Magazine; business, lifestyle, etc.

Frequency; daily, weekly, monthly, quarterly

Publications Format; size, color/B&W

? Audited circulation? Audited GRP’s? Publication demographics Location within publication (timing

varies) Drop date Cost of insertion

Size – inches & % of page – Print

Color or B&W – Print• Lenth of ad -- Broadcast• Proportion brand: product How many products Which products? Message category Proof points? Call to action: y/n, desired response

channel(s) & #s/URLs• Pre-test scores? Target audience; prop/cust.,

EM/EN/ES/AT/HNW; SD/V/D Planning doc• Target engagement cycle stage• Behavioral objective• Strategic intent Creative name, Oasis # Development cost? Incentive or promotion: y/n & specific

offer Integrated campaign: y/n & other

vehicles

Broadcast Placement Print Placement

• Need to evaluate the option of incorporating syndicated data such as Starch/Samms, MRI/Monroe Mendleson, Neilsen, Arbitron & potentially others

Currently available Planned or readily incorporated? Likely, pending detailed MRD questionnaire review


Advergraphics

Internet AdverGraphics will vary somewhat based upon which Internet vehicles are used In addition to the standard advertisement AdverGraphics outlined on the previous page, for Internet

advertising we will also want to capture the degree of motion and the level of graphic delivery (flash & HTML)

Paid Search Engine Inclusion

• Subject line• Number of recipients• Response rate• HTML, Plain Text or both

• Size• Flash or other motion; y/n• Triggers for serving• Number of banner ads served• Proportion of click throughs

• Order in which Co is served up• Page location where it is placed• Ad or link• Size• Raw # of times served up• Proportion of click throughs

Email Banner


Attribution

Attribution will manifest itself differently across the continuum of measurement options, however planned & systemic is what will be required to answer the insightful questions being asked by Marketing Leadership

ActivityMeasurement

Activity & AnalysesMeasurement

Planned & SystemicMeasurement

• Institute source coding on all marcom

• Can answer all of “What” & some of “Why”

• Precise understanding of market drivers

• A frame of reference for interpreting relative performance

• Can’t generalize learning• Ignores the cumulative effect

of advertising & attributes impact entirely to the most recent marketing event

• Limited understanding of interaction between marketing vehicles

• Institute source coding on all marcom

• Establish business rules for attribution across touchpoints

• Can answer all of the IMM questions; “What, Why & How”

• Can generalize & institutionalize learnings

• Able to quantify interactions between vehicles

• Remains dependent upon rigorous test design

• Must capture detailed “AdverGraphics”

• Scale the Call Center pilot

• Can answer some of the “What” happened

• Develop hypotheses about “Why”

• Ease of implementation• Short lead time to

implementation

• Can’t generalize learnings• Based entirely on consumer

recall which has been empirically proven as unreliable

• Assumes same response profile across channels

Characteristics

Disadvantages

Advantages


Insight By Vehicle

A Combination of Media Generally Has A Greater Impact Than Any Individual Media Type.

TV Radio Print

• Impact per GRP tends to be lower than TV• Best if enjoyable and well branded• Benefits greatly from synergies w/TV and

can extend TV campaign• High level of targeting

• Print w/TV more likely to result in active consideration than TV alone

• Active consumption; fast wear out of individual execution

• Works best where reader is interested in category Otherwise need strong creative hook to overcome filters

• Messages perceived as more credible & less pushy

• Interest & prestige can be heightened by context

Internet Public Relations Event/Sponsorship

• Active goal-seeking medium can help ads be very effective

• Recall on par w/TV1

• Can be effective even without click-through• ‘Rich Media’ #2 x’s more effective than

banners• High level of targeting & direct response• Possible irritation

Source: Millward Brown, Real-Time Marketplace Feedback

• Creative needs to be brand linked• Awareness responds to GRPs immediately• Position w/in commercial break• Flighting best when dispersed across

network/cable/spot & daypart• Need 100 GRPs/wk to breakthrough• Synergistic w/other media particularly when

there’s a schedule overlap

• Independent source creates greater credibility

• Works very effectively as a multiplier for other messages

• Tight linkage between event message and brand

• Can be effectively leveraged when part of brand multimedia campaign

• TV sponsorship can be as powerful as TV advertising


Differences Between Media

Advertising Exposure Passive Active/selective

Product Category Effect Little Large

Attention-Getting Wearout Little Rapid

Need For Creative “Hook” Less High

Recall of Visual Elements Well remembered Less well remembered

Mental Processing Little High degree

TV Magazines

How Stored In Memory ST as Ad LT as Fact



Brand Health Metrics

Consumer Engagement

Cycle

Top-of-mind awareness

• Presence Aided awareness Familiarity• Competitive

comparison Share of voice• Effective share of

voice

Hedonic evaluation• Understand positioning Recall key copy points Perceived rational

attributes & benefits Functional Process Consideration

? Relevance

Cognitive responses & judgments

• Factual recall Perceived emotional

attributes & benefits Purchase intent• Brand Portfolio Impact

– Family– Category

Current usage Usage trend Cross-utilization Frequency of consumer

interaction Brand strength Product performance

Attributes Advantages Deficits

Customer service satisfaction

• Customer loyalty Overall– Key proposition

elements Likelihood of switching

Next month With incentive

? Affinity? Relationship? Bonded

Brand Advocacy

Favorable AttitudesObjective

Brand Adv

Cognitive Responses & Consumer Judgments

“Brand Image & Equity”*

Factual Data & Recall“Brand

Salience/Relevance”

Measurement Considerations:Product Adv

Information & Action

*Note: Brand equity has a strong linear relationship for the next 2 years with Market Share (R2=5) & EBITDA (R2=.7)


ExpansionInvestmentConsideration InquiryAwareness

Source: Customer Ergonomics Analyses & MSI; “The Long & Short View of Marketing Metrics”, Tim Ambler


Individual Advertisement Metrics

• Recall key elements• Content playback• Brand linkage• Communication clarity• Ease of understanding• Awareness index

– Cut Through– Branded

memorability– Enjoyment– Involvement

• Effective GRPs/TRPs• Effective “Share of

Voice”• Relative perception of

the amt. of advertising• Interest• Total Communication

Hedonic? Relevance• New news • Difference/

uniqueness Believability Trust/ confidence Reasonable

fees/value• Corp. values &

ethics• Persuasion Unaided & aided

consideration

• Perceived Advantage

Satisfaction w/customer service

• Likelihood to take action; call, click, or visit

Intention to invest• Previous

investment experience

• Knowledgeable Sales Reps

• Perceived advantage

• “Relative” wealth

• Brand affinity• Number of vehicles &

channels Frequency of

interaction• Perception of

relationship• Confidence & Security

− External Factors− Personal− Fidelity


Consumer Engagement

CycleExpansionInvestmentConsideration InquiryAwareness


Unique Internet & Site Visit Metrics

Page & banner impressions

Unique visitors – Cookies 1 machine, logins for multiple pc’s

Total visitors Pgs viewed/visit• Effective GRP’s

Advertising & promotion click through

Visitor origin

- Search engine

- Paid Inclusion

- Referral site• F.S. sites visited Time spent/ page

- calculated

? Visitors by ISP? Browser used - @

IP address level

Downloaded pages

Tool usage Site registration –

bare minimum

Repeat visitors Topics/categ

visited/session or /visitor

Page exited from Proportion

inquiries via Web

Trades Value of trade Opt-ins

Site registration – In depth & complete

Visit frequency Personalized Home

Page Alerts set up Elapsed time

between visits Time per visit Pages viewed per

visit Multi-channel

customers

• Many of the MRD metrics exclude Internet customers. This research will need to be supplemented or revised to reflect these customers too.

• Need to further explore syndicated metrics as Financial Services frame of reference; ComScore, Nielsen Net Ratings, Jupiter Media Matrix

All metrics #/%/$

Consumer Engagement

CycleExpansionInvestmentConsideration InquiryAwareness



Communicating Insights

Communicating Insights Drives Organization Learning

Sequencing analytics Quick read vs. depth Standardized Deep dive

Establishing a frame of reference for objective interpretation Normative database Outside your industry

Creating institutional knowledge Best practices

Documents

©2008-9 Customer Ergonomics. Confidential property of Customer Ergonomics 1 Advertising Measurement A Framework for Evaluating Impact & Results