How Media Works: Advertising and the Purchase Funnel 1 A Yankelovich Study for the Television Bureau of Advertising

How Media Works:How Media Works:Advertising and Advertising and

the Purchase Funnelthe Purchase Funnel

How Media Works:How Media Works:Advertising and Advertising and

the Purchase Funnelthe Purchase Funnel

1

A Yankelovich Study for the Television Bureau of Advertising

© 2009 Yankelovich, part of The Futures Company 2

The Impact of Television AdvertisingPrepared for: The Television Bureau of Advertising

April 15, 2009


Study Objectives

Yankelovich, part of The Futures Company, conducted a survey among US adults on behalf of the Television Bureau of Advertising to determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand:

– The role of television advertising in driving consumer actions throughout the purchase decision process

– How television interacts with other media platforms, including new media such as the Internet

– How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle


Methodology

• Vehicles or auto dealers

• Financial services

• Restaurant

• Department or discount store

• Automobile or life insurance

• Schools, colleges, or trade/vocational schools

• Furniture, mattress, or carpeting / flooring stores

• Healthcare products or services

• Entertainment activities

• Services

• Telecommunications or electronic products

• Travel or travel website

• Food, convenience, or grocery stores / supermarkets

• Home improvement stores or services

• Commercial website

This study was designed to measure responses to ads seen across 15 different consumer categories:


Methodology

– Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them

– Each respondent then completed an ad survey for up to three of these categories.

– The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc.

– The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied.

– Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them, and include a total of 8,109 ad category surveys.

• Interviews took place January 29 to February 10, 2009


Methodology

• Gender

• Age

• Urban

• Suburban

• Rural

• Income

• TV Viewing (hours)

• Internet Use (hours)

• Number of Media Ad Exposures

• Actions Taken After TV Exposure

• Relevance of Ads

• Media Combinations

In addition to what we will review today, additional information from this study will be available for the following:


The Geometry of the Yankelovich Study

MediaPlatform

ProductCategory

PurchaseFunnel


The Purchase Funnel

Awareness

Considerati

on

Preference

Purchase


Purchase Funnel:Awareness

Media Platform

TV

Internet

Newspapers

Magazines

Radio

E-mail

Billboards/Outdoor

Other

None

Norm

43

14

8

4

4

4

2

2

20

44(102)

45(105)

44(102)

32(74)

47(109)

37(86)

47(109)

50(116)

48(112)

19(136)

13(93)

9(64)

9(64)

12(86)

20(143)

6(43)

11(79)

20(143)

6(75)

4(50)

4(50)

19(238)

3(38)

11(138)

3(38)

4(50)

6(150)

5(125)

1(25)

2(50)

5(125)

1(25)

3(75)

7(175)

2(50)

4(100)

7(175)

1(25)

3(75)

7(175)

6(150)

0(0)

5(125)

5(125)

8(200)

3(75)

3(75)

4 (200)

2(100)

2(100)

1(50)

2(100)

2(100)

1(50)

5(250)

3(150)

19(95)

22(110)

24(120)

Aut

o

Fin

anci

alR

esta

uran

tsD

ept./

Dis

c.A

uto-

Life

Ins.

Sch

ools

-Col

l.F

urni

ture

Hea

lthca

reE

nter

tain

men

t

Tel

ecom

-Ele

ct.

Ser

vice

s

Com

. Web

site

Tra

vel

Foo

d S

tore

Hom

e Im

p.

Category

Percentages shown for the question: “What media most increased your awareness of the advertised product, service or offer.” Index to norm in parentheses.


Advertising Impact on Various Stages of the Consumer Purchase Funnel

80% 75%67%

61% 59%53%

20% 25%33%

39% 41%47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest Consider Purchase Want to Purchase Visit Store/Website Make Purchase

Media Influence (Any) No Media Influence


Travel & Travel WebsitesAdvertising Impact at Various Stages of the Consumer Purchase Funnel

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

87% 84%76% 73%

63% 59%

13% 16%24% 27%

37%41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.

Media Influence (Any)Travel & Travel Websites No Media Influence-Travel & Travel Websites

Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase


Department/Discount Stores Advertising Impact at Various Stages of the Consumer Purchase Funnel

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

76% 73% 76%69% 70%

58%

24% 27% 24%31% 30%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.

Media Influence (Any)-Dept/Disc Store No Media Influence-Dept/Disc Store



80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

83% 80% 82%77% 75% 73%

17% 20% 18%23% 25% 27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Fd Str/Sprmkt No Media Influence-Fd Str/Sprmkt


Food/Convenience/Grocery Stores and Supermarkets Advertising Impact at Various Stages of the Consumer Purchase Funnel


Furniture/Mattress/Flooring Stores Advertising Impact at Various Stages of the Consumer Purchase Funnel

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

76%68%

59%51% 53%

38%

24%32%

41%49% 47%

62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Furn/Matt/Flrg Store No Media Influence-Furn/Matt/Flrg Store



Entertainment & Activities Advertising Impact at Various Stages of the Consumer Purchase Funnel

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

86% 88%

75% 73%

59%64%

14% 12%

25% 27%

41%36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Entertainment/Activities No Media Influence-Entertainment/Activities



Restaurants Advertising Impact at Various Stages of the Consumer Purchase Funnel

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

76% 76% 73% 74%

62% 65%

24% 24% 27% 26%

38% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Restaurants No Media Influence-Restaurants



Automotive Advertising Impact at Various Stages of the Consumer Purchase Funnel

80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

81%74%

59% 55% 51%41%

19%26%

41%45%

49%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Automotive No Media Influence-Automotive



TV’s Overall Impact Through the Purchase Funnel“What Media Most Increased or Prompted…”

43% 40%35% 33% 32%

26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest ConsiderPurchase

Want toPurchase

VisitStore/Website

Make Purchase


Television’s Contribution to Total Media Impacts

43% 40% 35% 33% 32%26%

37%35%

32%28% 27%

27%

20% 25%33%

39% 41%47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television All Other Media Combined No Media Influence


TV’s Share of Media Impact Remains Relatively Flat Through All Phases of Purchase Funnel

54% 53% 52% 54% 54%49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest ConsiderPurchase

Want toPurchase

VisitStore/Website

Make Purchase


Travel & Travel Websites Media Impact at Various Stages of the Consumer Purchase Funnel

42% 42%31% 28% 32%

22%

26% 24%28% 28% 16%

26%

7% 6%

7% 6%

8% 8%6% 6%

5% 6%

9% 9%

9% 5%

13% 16%24% 27%

37% 41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television Internet Magazine Email Other No Media Influence

Media cited by less than 3% of respondents were incorporated into the total for “other.”


Department & Discount StoresMedia Impact at Various Stages of the Consumer Purchase Funnel

32% 34% 33% 34% 34%26%

19% 19% 21% 16% 13%16%

9% 7% 8%8% 8%

8%

8% 7% 7%6% 8%

4%

7% 6% 7%5%

4%

24% 27% 24% 31% 30%42%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television Newspaper Internet Email Other No Media Influence



Food/Grocery Stores and Supermarkets Media Impact at Various Stages of the Consumer Purchase Funnel

44% 38% 38% 37% 40%32%

22%26% 26% 28% 22%

25%

4% 4% 6% 4%4%

5%

4%4%9% 8% 12% 8% 9% 11%

17% 20% 18% 23% 25% 27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television Newspaper Internet Radio Email Other No Media Influence



Furniture/Mattress/Flooring Stores Media Impact at Various Stages of the Consumer Purchase Funnel

47%39% 43%

34% 35%22%

11%10% 7%

7% 6%

7%

6%8%

4% 6%

4%

6%5%

6%6%

9%6%

5%

24%32%

41%50% 47%

62%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television Newspaper Internet Radio Other No Media Influence



Entertainment Media Impact at Various Stages of the Consumer Purchase Funnel

48% 51% 46% 49%40% 39%

20% 19%15% 12%

10% 12%

4% 5%

5% 3%

3% 4%

14% 13%

9% 9%

6% 10%

14% 12%25% 27%

41% 36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television Internet Newspaper Other No Media Influence



Restaurants Media Impact at Various Stages of the Consumer Purchase Funnel

44%51% 48% 49%

38% 42%

9%6% 7%

7%6%

5%6%

7%4%

4%

5%5%

4% 4%

4%4%

4%

12% 7%9% 10%

10%7%

24% 24% 27% 26%38% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television Internet Newspaper Radio Email Outdoor Other No Media Influence



Automotive Media Impact at Various Stages of the Consumer Purchase Funnel

44% 40% 35% 34% 30%22%

19%17%

12% 11%11%

12%

6%7%

4% 3%3%

6%3%

4%4%

3%

6%

5%3%

4%

19%26%

41% 45% 49%59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Television Internet Newspaper Magazine Radio Email Outdoor Other No Media Influence



Key Take-Aways

• Media impacts 80% of the Awareness phase of the funnel and declines to 53% at the Transaction phase.

• There is no single pattern to the Purchase Funnel.

• Different consumer categories behave differently in terms of overall ad impact.

• Consumers perceive that different media provide different impacts, both by category and by Purchase Funnel phase.

• Two consistently strong contributors in most categories and Purchase Funnel phases are television and the internet.

• Other media experience a wider range of impact based on category and Purchase Funnel phase.

• Television is impactful at all stages of the consumer Purchase Funnel.

Why is this Important?Why is this Important?Why is this Important?Why is this Important?

The New Media MatrixThe New Media MatrixThe New Media MatrixThe New Media Matrix

The playing field has gotten longer and wider

Awareness Activation

Niche

Mass


The playing field has gotten longer and wider


Niche

Mass

You Are HereYou Are Here


Niche

Mass

2008 Top 15 Media Categories2008 Top 15 Media Categories2008 Top 15 Media Categories2008 Top 15 Media Categories

Newspaper $38,441 19.5Local TV stations 25,686 13.0Terrestrial radio 19,643 10.0Broadcast networks 18,368 9.3Cable networks 18,223 9.2Consumer magazines 12,673 6.4Yellow pages 12,346 6.3Search advertising 10,691 5.4Branded ent./product placement 8,948 4.5Out of home 7,184 3.6Local/regional cable 6,409 3.3Online display ads 4,629 2.4Broadcast syndication 3,193 1.6Online classified 3,139 1.6Online video/rich media 2,475 1.3

Total $192,000

Source: Jack Myers Business report 12/08: eMarketer 12/08

$ in Millions %

2008 Remaining Media Categories2008 Remaining Media Categories(less than 1% share)(less than 1% share)

2008 Remaining Media Categories2008 Remaining Media Categories(less than 1% share)(less than 1% share)

Online lead generation $1,645 0.8Video games 875 0.4Cinema 819 0.4Mobile 655 0.3Online sponsorship 514 0.3Email 488 0.3Satellite radio 296 0.2

Source: Jack Myers Business report 12/08: eMarketer 12/08

$ in Millions %



The New Media MatrixThe New Media MatrixThe New Media MatrixThe New Media Matrix •

Aw

aren

ess

• M

ood

• Im

age

• B

rand

ing

• F

eatu

res

• P

rice

-Ite

m •

Cal

l-to-

Act

ion

• D

irec

t Res

pons

e

(Act

ivat

ion)

The Purchase FunnelThe Purchase FunnelDrives the Media MatrixDrives the Media Matrix

The Purchase FunnelThe Purchase FunnelDrives the Media MatrixDrives the Media Matrix

Source: Wordpress.com

Awareness

Considerati

on

Preference

Purchase

Popular AssumptionsPopular AssumptionsPopular AssumptionsPopular Assumptions

Traditional media – especially broadcast – is a top-of-the-funnel-choice

Interactive media is a bottom-of-the-funnel choice … “The Last Click”

Middle-of-the-funnel is open season for all media … interest, consideration and preference are variables

Yankelovich Report on Yankelovich Report on 15 Consumer Categories15 Consumer CategoriesYankelovich Report on Yankelovich Report on

15 Consumer Categories15 Consumer Categories

Awareness

Considerati

on

Preference

Purchase

TV 43%Newspaper 8%Magazine 4%Internet 14%




Take AwaysTake AwaysTake AwaysTake Aways

TV Still Rules

The research has been consistent and reinforcing:

Council for Research Excellence Video Consumer Mapping Study

Nielsen Annual Report on Time Spent with Television

Nielsen Quarterly Three-Screen Report TVB Media Comparison Study

In today’s media environment, match marketing goals to the right media drivers.

Thank YouThank YouThank YouThank You

Documents

How Media Works: Advertising and the Purchase Funnel 1 A Yankelovich Study for the Television Bureau of Advertising