Introduction More Than 600 Case Studies Don’t LieOver the past six years, Nielsen Catalina Solutions and parent company Nielsen have completed more than 600 case studies, collaborating with almost 300 CPG brands and 80 manufacturing clients, to measure the correlation between online advertising and offline consumer purchases. These findings provide a simple, comprehensive view of how online advertising influences consumer behavior across multiple brands and product categories. In addition, our research serves as a guide to identify a brand’s best customers and measure their response to specific campaigns and creative messages.

The Effects of Online Advertising on Offline SalesNielsen Catalina Solutions provides the most comprehensive single source view of online advertising to help consumer packaged goods (CPG) marketers, agencies and media companies improve advertising effectiveness by directly linking what consumers watch with what they buy.

From Clicks to Cashiers

Television | Online | Mobile | Print | CRM

ROI | Audience Consultancy | Buyergraphics | Custom Analytics

These findings provide a

simple, comprehensive view

of how online advertising

influences consumer behavior

across multiple brands and

product categories.

Case Study Compilation

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements

Online Advertising Works In Lifting Offline Sales!

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements

Sales Lifts Vary By CPG Category

Findings Online Advertising WorksIf there was ever a doubt, the results of our 600 case studies put it to rest: Online advertising works. The research demonstrates that a direct link exists between online advertising and sales at the cash register, using single source analytics. Among our key findings:

• Online advertising contributes to higher offline brand sales by an average of 22%, with the buying rate rising by 12% and the penetration rate rising by 10%

• Different sales categories have different degrees of sales lift. Over-the-counter (OTC) drugs experienced the largest sales gain of 28%, while general merchandise sales lifted 23% and 21% for the food category

• Items that are new to market generally see a greater benefit from online advertising rising an average of 30%, compared with 20% for existing lines

• Both small and large brands fare well online. While smaller brands tend to see a bigger sales increase as a result of online advertising, larger brands experience greater returns on ad dollar investments

From Clicks to Cashiers | The Effects of Online Advertising on Offline Sales

“

“

Having the ability to

measure the return on

investment among

specific consumer groups,

we can equip both

advertisers and media

companies with the data

to make media buys more

effective and efficient.

—Mike Nazzaro

CEO, Nielsen Catalina Solutions

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements

Small Brands Get Big Lifts; Big Brands Get Big Returns

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements

New Items Typically Get Bigger Lifts And Drive Value For The Parent Brand

From Clicks to Cashiers | The Effects of Online Advertising on Offline Sales

In Summary Don’t Rely on Click-Throughs, Count on the SalesAdvertisers are continuously monitoring their spending to achieve the maximum return for every ad dollar spent across an increasing number of competing channels. While consumers spend 26% of their media time online, only 18% of total ad dollars were allocated to this medium. Online advertising’s reduced share of spending is attributed in part to a lack of confidence in the channel and unfamiliarity with its measuring tools; our research shows online advertising drives offline sales.

Key Takeaways:

• The click-through rate is not the right metric to gauge brand awareness; it has virtually no relationship to return on investment (ROI), brand awareness or offline sales*

• Offline sales, a key metric for advertising effectiveness, can accurately be measured using a single source panel linking ad exposure directly to the households that purchased the product

• All brands, in all product categories are not created equal. Depending on the product category, they behave differently. There will be different results based on the product category, whether the brand is new or existing, based on its existing market penetration and other specific marketing situations

* Source: Nielsen, “Beyond Clicks and Impressions: Examining the Relationship between Online Advertising and Brand Building,” September 2011

Source: eMarketer

Advertisers Are Not Spending Online Proportionately To Time Spent

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements

Clicks Have No Relationship To ROI – Look, No Pattern!

Source: eMarketerer; STRATA, “2nd quarter survey results”; July 26,2011

Lack Of Advertising Accountability Is A Barrier To Growth

Copyright © 2011 Nielsen Catalina Solutions. All rights reserved. Nielsen is a trademark or registered trademark of CZT/ACN Trademarks, LLC Catalina is a registered trademark. Other product and service names are trademarks or registered trademarks of their respective companies. 11/2011

For more information, contact Nielsen Catalina Solutions Sales@NCSolutions.com 800-226-7505 www.ncsolutions.com

How Nielsen Catalina Solutions WorksWe create the “gold-standard” in advertising performance and accountability analytics. Only Nielsen Catalina Solutions provides a single source view into how advertising influences purchase behavior for multiple platforms — TV, Online, Mobile, CRM and Print. This joint venture between Nielsen and Catalina integrates buyer data from the Nielsen Homescan® panel and 60 million households from Catalina’s shopper data warehouse of participating retailers, representing:

• 33% of all-commodity volume (ACV) for the grocery trade channel

• 11 of the top grocery retailers

The purchase data is linked to audience data sourced from:

• Television — Nielsen People Meter panel, Nielsen Set Meter panel, and cable set top box (STB) households

• Online, Mobile and Print — Nielsen Online panel and directly from media companies

• CRM — directly from Proprietary databases

From Clicks to Cashiers | The Effects of Online Advertising on Offline Sales

Equity And Promotional Campaigns Impact Sales Similarly

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements

Dollar Return Per 1000 Impressions Is Trending Upward

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements

Case Study Methodology

Source: Nielsen Catalina Solutions, 600+ digital ROI campaign measurements