How Media Works: Advertising and the Purchase Funnel for Department/Discount Store Advertising A Yankelovich Study for the Television Bureau of Advertising

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

for Department/Discount Store Advertisingfor Department/Discount Store Advertising

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

for Department/Discount Store Advertisingfor Department/Discount Store Advertising

A Yankelovich Study for the Television Bureau of Advertising

Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives

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 2

Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodologyMethodologyMethodology

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.

Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded.

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.

3Source: TVB/Yankelovich “How Media Works,” April 2009

A Majority of Respondents are In the A Majority of Respondents are In the Market Market

A Majority of Respondents are In the A Majority of Respondents are In the Market Market

4

“Are you currently considering a purchase in a Department or Discount Store?”

(Asked of those who recalled seeing a TV ad for a department or discount store in the last 2 months)

Source: TVB/Yankelovich “How Media Works,” April 2009

Yes64.1%

No35.9%

Customer Profile: Customer Profile: Department/Discount StoresDepartment/Discount Stores

Customer Profile: Customer Profile: Department/Discount StoresDepartment/Discount Stores


Saw a Department or Discount Store Ad that Made an Impression

Currently Considering a

Purchase in this Category

Made a Purchase

in this category in the

past 6 months

Made a Purchase

in this category

in the last 2 weeks

Male 44.7% 42.4% 44.4% 44.7%

Female 55.3% 57.6% 55.6% 55.3%

18-34 31.8% 35.2% 32.9% 30.5%

18-49 59.5% 66.0% 60.5% 60.1%

25-54 54.2% 58.5% 55.0% 57.2%

55+ 34.6% 28.0% 33.3% 31.8%

Urban 35.9% 34.0% 35.2% 31.8%

Suburban 42.7% 41.2% 43.1% 45.0%

Rural 21.4% 24.8% 21.7% 23.2%

HHI <$30K 24.8% 25.4% 23.9% 25.1%

HHI $30-$70K 40.1% 40.6% 40.7% 38.6%

HHI $70K+ 27.7% 28.0% 28.4% 28.9%

HHI $100K+ 10.0% 10.4% 10.2% 10.3%

Four in Ten Consumers Saw an Advertisement for a Four in Ten Consumers Saw an Advertisement for a Department or Discount Store That Caught Their Department or Discount Store That Caught Their

AttentionAttention

Four in Ten Consumers Saw an Advertisement for a Four in Ten Consumers Saw an Advertisement for a Department or Discount Store That Caught Their Department or Discount Store That Caught Their

AttentionAttention


Saw an ad that got your attention:

55%

46%

46%

46%

41%

40%

40%36%

36%

34%

34%

33%

28%

27%

25%

80%Any (NET)

Restaurants

Vehicles or auto dealers

Telecommunications or electronic products

Entertainment activities

Automobile or life insurance

Department stores or discount stores

Food, convenience, or grocery stores / supermarkets

Furniture, mattress, or carpeting / flooring stores

Travel or travel websites

Financial services

Healthcare products or services

Home improvement stores or services

Services

Schools / colleges / learning centers / vocational schools

Commercial websites

Those Who Saw Dept./Disc. Store TV Those Who Saw Dept./Disc. Store TV Ads Were Likely to Have Made Recent Ads Were Likely to Have Made Recent

PurchasePurchase

Those Who Saw Dept./Disc. Store TV Those Who Saw Dept./Disc. Store TV Ads Were Likely to Have Made Recent Ads Were Likely to Have Made Recent

PurchasePurchase


Last time made a department/discount store purchase:

58%

18%

12%

5%

2%

2%

2%

1%

0%

1%

Within the last 2 weeks

3-4 weeks ago

1-2 months ago

3-4 months ago

5-6 months ago

7-11 months ago

1-2 years ago

3-5 years ago

6 or more years ago

I have never purchased in this categoryDepartment/ Discount stores

Department/Discount Store Ads Made Department/Discount Store Ads Made Positive Impressions on ConsumersPositive Impressions on Consumers

Department/Discount Store Ads Made Department/Discount Store Ads Made Positive Impressions on ConsumersPositive Impressions on Consumers


Type of impression made by TV ad for department/discount store:

32%

38%

26%

3%

1%

33%

40%

25%

2%

0%

Very positive

Somewhat positive

Neither positive nor negative

Somewhat negative

Very negativeTotalDepartment/ Discount stores

73% of those who saw these advertisements rated them positively

Department/Discount Store TV Ads Seen as More Department/Discount Store TV Ads Seen as More Relevant Than Average; Also Called Attention-Getting Relevant Than Average; Also Called Attention-Getting

and Informativeand Informative

Department/Discount Store TV Ads Seen as More Department/Discount Store TV Ads Seen as More Relevant Than Average; Also Called Attention-Getting Relevant Than Average; Also Called Attention-Getting

and Informativeand Informative


Ratings of Department/Discount Store Ad:

53% total

55% dept./discount

How informative was it?

How much did it get your attention?

How relevant was it?

42% total

53% dept./discount

19.6%

15.4%

18.9%

15.6%

12.2%

9.0%

3.6%

2.8%

1.3%

1.5%

20.0%

15.0%

18.0%

15.0%

14.0%

10.0%

4.0%

3.0%

1.0%

1.0%

10 -Completely

9

8

7

6

5

4

3

2

1 - Not at all

54% total

53% dept./discount

Total Department/Discount Stores

Those Who View TV Ads in This Category are Those Who View TV Ads in This Category are Likely Likely

to Consider or Make a Purchase, or Visit a Store to Consider or Make a Purchase, or Visit a Store

Those Who View TV Ads in This Category are Those Who View TV Ads in This Category are Likely Likely

to Consider or Make a Purchase, or Visit a Store to Consider or Make a Purchase, or Visit a Store


Actions Taken After Seeing TV Commercial for Department/Discount Stores

Total

Department/

Discount Stores

Index to Total

Any (Net) 49% 59% 120

Considered purchasing the product or service 17% 24% 141

Talked with others about the advertisement 16% 13% 81

Went online to learn more about the product or service advertised 14% 10%

71

Remembered you had seen the product or service advertised before 11% 8%

73

Purchased the product or service in a store 10% 24% 240

Visited a store or location to learn more about the product or service 8% 21%

263

Tried to find the advertisement on the Web 5% 4% 80

Looked in a newspaper or magazine to learn more about the product or service

4% 4% 100

Purchased the product or service online 3% 4% 133

Contacted the company in the advertisement 3% 1% 33

Sent someone an Email about the product or service 3% 2% 67

Sent someone a Web-site link about the product or service 2% 1% 50

Other action 3% 3% 100

Did nothing 51% 41% 80

Half of Respondents Saw The Same Ad 1-3 Half of Respondents Saw The Same Ad 1-3 Times; Times;

Half Saw Ad 4 or More TimesHalf Saw Ad 4 or More Times

Half of Respondents Saw The Same Ad 1-3 Half of Respondents Saw The Same Ad 1-3 Times; Times;

Half Saw Ad 4 or More TimesHalf Saw Ad 4 or More Times


Number of times saw TV commercial for department/discount store in past 2 months:

14%

33%

26%

14%

13%

16%

34%

26%

13%

11%

Just this one time

2-3 times

4-5 times

6-9 times

10 times or more

TotalDepartment/ Discount stores

Increased Frequency = Greater Likelihood of Increased Frequency = Greater Likelihood of Action: Higher Purchase Levels and Store Visits, Action: Higher Purchase Levels and Store Visits,

and More and More

Increased Frequency = Greater Likelihood of Increased Frequency = Greater Likelihood of Action: Higher Purchase Levels and Store Visits, Action: Higher Purchase Levels and Store Visits,

and More and More


Among those who recently saw a TV ad for Department/Discount Stores

# TV Ad Exposures

Department or Discount

StoreRecall 1-3 ad

exposuresRecall 4+ ad exposures

Any (Net) 59% 56% 63%

Considered purchasing the product or service 24% 24% 25%

Purchased the product or service in a store 24% 18% 29%

Visited a store or location to learn more 21% 17% 26%

Talked with others about the advertisement 13% 10% 16%

Went online to learn more 10% 9% 11%

Remembered you had seen the product/service advertised before (i.e., the newspaper, radio, or the Internet) 8% 6% 11%

Purchased the product or service online 4% 3% 5%

Looked in a newspaper or magazine to learn more 4% 4% 4%

Tried to find the advertisement on the Web 4% 4% 3%

Sent someone an Email about the product or service 2% 2% 2%

Sent someone a Web-site link about the product or service 1% 2% 0%

Contacted the company in the advertisement 1% 0% 1%

Other action 3% 2% 4%

Did nothing 41% 44% 38%

Actions taken after seeing a Department/Discount Store TV ad

In Addition to TV Ads for Department/Discount In Addition to TV Ads for Department/Discount Stores, Many Consumers Recall Newspaper and Stores, Many Consumers Recall Newspaper and

e-Mail Adse-Mail Ads

In Addition to TV Ads for Department/Discount In Addition to TV Ads for Department/Discount Stores, Many Consumers Recall Newspaper and Stores, Many Consumers Recall Newspaper and

e-Mail Adse-Mail Ads


Saw ad for same product or service in a media other than TV:

Total

Department/Discount Stores

Index to Total

Any (Net) 46% 51% 111

On the Internet 20% 15% 75

In a newspaper 18% 30% 167

On the radio 12% 7% 58

In a magazine 11% 8% 73

In an Email offer 8% 11% 138

On a billboard or other outside sign 7% 3% 43

Other media 3% 4% 133

Did not see, hear, or read in any other media 35% 29% 83

Not sure 19% 19% 100

Department/Discount Stores Department/Discount Stores Advertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel

Department/Discount Stores Department/Discount Stores Advertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe 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

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

Index =95

Index = 97

Index =113

Index =113

Index = 119

Index =109

Department & Discount StoresDepartment & Discount Stores Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel

Department & Discount StoresDepartment & Discount Stores Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel


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

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%

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

Television Newspaper Internet Email Other No Media Influence

ConclusionsConclusionsConclusionsConclusions

A high percentage of consumers exposed to television ads in this category are in the market for Department and Discount Store shopping.

Commercial awareness and recall are above average.

Due to high levels of in-market consumers, ad relevance is highly rated.

Television ads are major action drivers, leading to store and website visits and purchases.

The greatest pay-off of higher frequency of exposure to TV ads was in the bottom of the purchase funnel: product purchase was much higher.


Documents

How Media Works: Advertising and the Purchase Funnel for Department/Discount Store Advertising A Yankelovich Study for the Television Bureau of Advertising