Big Shifts in Advertising and Media ROI LandscapeHow to take advantage

Randall BeardGlobal Head,Advertiser Solutions, Nielsen

Real-time optimization presents significantopportunity to improve

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Big shifts in media landscape—Digital, Fragmentation, InnovationClients are feeling acute pain trying to optimize advertising“3 R” model is a simple, but powerful way to improve advertising performance

Solutions exist today to optimize Reach andResonance to earn the best Reaction

We measure what people Watch and Buy

Media UsageConsumer Purchase

US based example

We measure what people Watch and Buy

Media UsageConsumer Purchase

US based example

Rise of Digital

Fragmentation

Innovation

Broadcast and Satellite

Cable Mobile Apps Tablet

TV Tablet

FusionAdvanced Mix Modelling

TV Main Networks

Over-The-Top

Buyer Response Based Advertising

Real-time Measures

VODDVRMobileOnline

Clients voice key media pain points

How do I allocate my budget?

How do I optimize ROI in real-time?

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How much should I spend?

Ingredients for Success

REACHDid my intended audience see my campaign?

RESONANCEDid my campaign deliver the desired brand impact?

REACTIONDid my campaign deliver the desired consumer response?

Reach the right people Impact their behaviorInfluence their opinionX =

R E A L – T I M E

At the forefront of media

Joint VenturesAcquisitions Alliances

Our view of brand advertising effectiveness How to increase ROI

Solution

Nielsen Campaign

Ratings

Viewability (AdSafe)

Nielsen Brand Effect

Improvement Opportunity

15-30%

30-50%

15-30%

Business Question

Did the ad reach the right

audience?

Was the ad even seen?

Was the message effective?

60-110%Total opportunity for improvement:

Advertising Goal

Reach (Audience)

Reach (Viewability)

Resonance

Reaction(Sales)

Identify delivery problems in real-time

60%

41%

18%

46%

32% 31%

51%

28% 32%

Site 1 Site 3 Site 5 Site 7 Campaign

32%

68%Off-Target

US based example

R x R = RDigital | Placement

On-Target Delivery by Site

Optimize audience delivery by focusing on better placements and high performing sites

Daily On-Target DeliveryBeverage company

On TargetImpressions

Off TargetImpressions

16%on target

Daily Online Campaign Impressions

41% on target

R x R = RDigital | Placement

US based example

12

Optimize ROI by serving viewable adsR x R = R

Digital | Placement

US based example, Ad Safe

Assumed viewable ads

13

Optimize ROI by serving viewable adsR x R = R

Digital | Placement

US based example, Ad Safe

Actual viewable ads

14

Optimize ROI by serving viewable adsR x R = R

Digital | Placement

US based example, Ad Safe

Delivered viewable ads

15

Optimize ROI by serving viewable ads

$2.80

$1.40

Before After

ROI

R x R = RDigital | Placement

2X

US based example, Ad Safe

versus

Optimize based on creative performanceR x R = R

TV | Creative

Copy A Copy BBeverage Company

US based example

Beverage Company Copy A & Copy B

37%

15%

Copy A Copy B

Brand Recall

Optimize based on creative performance

57%

44%

Copy A Copy B

Breakthrough

100%

50%

Copy A Copy B

Media Weight

50%

Illustrative

R x R = RTV | Creative

US based example

Food Company

versus

Analyze performance of :15 v :30 spots to get the most from your television spend

R x R = RTV | Length

:15 spot :30 spot

US based example

Analyze performance of :15 v :30 spots to get the most from your television spend

0:15 vs. 0:30 Comparative Performance

General Recall

Brand Linkage

Shift :30s to :15s for

higherresults at

lower cost

:30

:15

49%

56%

:30

:15 77%

76%

R x R = RTV | Length

US based example

Optimize based on media placement

Brand X Ad Breakthrough by Program Genre

55%52% 51%

48%42% 41% 40% 40%

35%30%

Genre A Genre B Genre C Genre D Genre E Genre F Genre G Genre H Genre I Genre J

Media WeightAd Breakthrough

R x R = RTV | Placement

US based example

Increase in Brand Lift(CPG Example)

Source: Blinded Nielsen Online Brand Effect case

56% better

Original

23%34%

Optimize by reallocating budget to top performing creatives

R x R = RDigital | Creative

Optimized

Creative Units

Exposure Frequency

Site Performance

3 Key Opportunities for Improvement

Creative Units

US based example

Identify and optimize optimal frequency

Purchase IntentCosmetic Company and

Female-Focused Online Content Publisher

R x R = RDigital | Frequency

Optimal Frequency

14%

50%

Not Exposed Exposed

260%

1XUS based example

1.7x

2.5x

Ad Recall

Brand Recall

Compare mobile effectiveness across platforms

iAd: New Car BrandiAd Banner vs. Online Banner* performance

R x R = RDigital | Placement

New Car iAd

Mobile banners out-performed Online banners

*Online banners for PC US based example

Improve through Marketing Mix Models

Increase Sales Volume

Improve ROI

Reallocated spending

Identified best performing marketing

elements

Total Shipments +10%

Internet Paid TV TradePrint Open TV Promo PacksPR

Optimize based on:

R x R = RMMM

Objectives: Results:

Sales Return per Dollar Invested

Real-time optimization presents significantopportunity to improve

Creative Rotation:15 v. :30

Site Optimization

Exposure Optimization

TIME

BRA

ND

LIF

T

Illustrative

R x R = R

No real-time optimization

Real-time optimization presents significantopportunity to improve

Total opportunity60-150%

Opportunity for improvement:

Reach - Audience 20-40%

Reach - Viewability10-50%

Resonance30-60%

R x R = R

Real-time optimization presents significantopportunity to improve

1

2

3

4

Big shifts in media landscape—Digital, Fragmentation, InnovationClients are feeling acute pain trying to optimize advertising“3 R” model is a simple, but powerful way to improve advertising performance

Solutions exist today to optimize Reach andResonance to earn the best Reaction

Big Shifts in Advertising and Media ROI LandscapeHow to take advantage

Randall BeardGlobal Head,Advertiser Solutions, Nielsen