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Better Measures of
Advertising Effectiveness
1
ABXAdvertising Benchmark Index
“Half the money I spend on
advertising is wasted; the trouble
is, I don’t know which half.”
John Wanamaker, 1838-1922,
the father of modern advertising
A Paradigm Shift from an Age-
Old Problem to Current Day
Solution!
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THE PROBLEM
Finding out Which Half Works
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In the early days of advertising, 90% of America was reached by
just a few networks. Nearly all ads were tested to protect
investment. Today, less than 2% of ads are tested.
In Wanamaker’s Day, the Problem had just Begun
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In Today’s World, Billions of Dollars go down the
Drain Because 98% of ads are Untested
According to a study by Proxima Consulting in 2015, “up to 60% of
global marketing budgets are being wasted every single year!”
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Today’s Ad Landscape is Messy; Most Ads are Wastefully
Underperforming
Good Ads
Underperforming Ads
AB
X C
reat
ive
Sco
re In
dex
The Explosion of Media Channels and Creative
Produced has led to Woeful Ignorance
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THE SOLUTION
There must be a way to fix this!
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Is there an Answer?
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Imagine if?
• You could test ALL ads in ALL media from ALL competitors?
• You would know how any ad performed in just 24-48 hours?
• You were provided with the tools & insights to improve the creative effectiveness of your ads on an ongoing basis?
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& What if?
• You could achieve all of this at significantly reduced costs?
• You could link ad test scores to in market sales and revenue via marketing mix models?
• And you could predict the outcome of your ad placements, in real dollars & cents?
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Changing the Paradigm – the ABX Creative
Improvement System
• 100,000 normative ads for creative brainstorming
• 24-48 hour low-cost Pre-tests enables revisions & retests
Stage One Creative
• In-market Post-Tests on ALL client and competitive ads across ALL media are measured
• Results enable media plan refinement and MMM
Stage Two
Creative Benchmarks
• Continuous in-market tracking measures success
• Quarterly deep-dives provide additional detailed insights
Stage Three In-Market Tracking
The Interviewing Experience – 40% Better
• Interviews collected using ABX
patent-pending visual ‘ocular’
survey system.
• Improved ‘interviewing
experience’ leads to greater
engagement vs traditional “text
based” surveys.
• A vastly improved data
collection process which reduces
a lot of the cost
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What ABX Measures
▪ 14 key inputs
▪ 2 consumption metrics▪ Level of category usage
(Frequent, Regular, Occasional, None)
▪ Level of media consumption (all media; same frequency breaks)
▪ Geographic data▪ 4 census regions
▪ Demographic data ▪ Gender, Age, Education, HHI
Brand Linkage
(Ad Recall)Clear Benefit
Feel About
Advertiser
Better
Worse
No Different
RelevantLike to See
Again
Contact
Company
Awareness Messaging Reputation Relevant Likeability Call to Action
Easily
UnderstoodLike Visit Website
Look For
Product
Purchase
Product
Recommend
Product
Talk to Someone
About it
None/Any
ABX Data is comprised of
Dislike
Awareness Messaging Reputation Relevant Likeability Call to Action
ABX Data is comprised of
Awareness Messaging Reputation Relevant Likeability
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Note:• “Reputation” is net of “better” minus “worse”• “Any Action” is one or more calls-to-action, highlighted in yellow
• “Blue” data is included in The ABX Index
• The ABX Index correlates MMs
• ABX data correlates with legacy testers
• ABX Index is customizable based on factors
that correlate w/client needs.
ABXIndex
ABX ID
AdvertiserABX
Index
Brand
Linkage
Clear
Benefit
Easy to
UnderstandReputation
Any
Action
Contact
Company
Visit
Website
Look
ForPurchase Recommend
Talk to
SomeoneRelevant
See
AgainLike Dislike
Vs. All Ads 127 120 110 111 156 142 59 101 184 211 103 80 160 130 82 31
Vs. Category 116 109 107 107 146 125 61 76 139 217 100 81 142 123 85 37
Vs. Medium 131 117 115 118 169 148 60 98 187 227 113 88 168 142 91 33
101212197
The Advertising Benchmark Index (ABX)
Case Study: Quick Serve Restaurants
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Case Study: Quick Serve Restaurants
How Your Company can Reclaim the Waste
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All Ads Normative
Digital Ads
Print Ads
FSI Ads
Where does your brand
stand versus peers & competitors?
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All Ads Normative
Radio Ads
Outdoor Ads
TV Ads
Where are your brand’s
strengths, weaknesses,
opportunities & threats?
Strong performers
Weak performers
$47 million opportunity
through ad substitution
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Digital Ads
Print Ads
Radio Ads
TV Ads
Outdoor Ads
FSI Ads
The ad inventory is immense & daunting! (>100 ads)We measure it all, on your desktop in 24-48 hours
Highest-Scoring TV – 30s
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Lowest-Scoring TV – 15S
Low-Scoring OOH
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Highest-Scoring FSI
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Highest-Scoring Online Video
Financial Opportunity - $47 MillionA Fast Food Company like McDonald’s can see which ads are
resonating with ABX. Creative effectiveness is improved $47 million
annually by substituting “average” ads for “underperforming” ones.
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IT ALL CORRELATES
Market Mix Models and Predictions become Possible
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In the ideal world, spend on an ad-by-ad basis would align
perfectly with ad sales lift, but this is not the case. In fact, it is
most often highly inefficient and wasteful!
R² = 0.1138
0
20
40
60
80
100
120
140
160
3 5 7 9 11 13 15
SPEN
D P
ER A
D S
QR
T
Ad SALES LIFT SQRT
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However, ABX has proven to align and correlate extremely well
with individual ad sales lifts. This provides a great resource for
allocating marketing funds across individual ads!
R² = 0.5527
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5
6
7
8
9
10
11
12
13
3 5 7 9 11 13 15
AB
X IN
DEX
CR
EATI
VE
SCO
RE
SQR
T
AD SALES LIFT SQRT
Using the ABX metric to allocate media budget by ad would have generated + $21MM (2%) in incremental revenue for this Brand.
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The Importance of Ad Creative
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Baseline Store Promotions Short-Term.Media Spend
Short-Term.Media Creative Long-Term Media
Media Creative
is 60-80% of the full
ad effect
It’s 3 p.m. on Wednesday. The CMO of the world’s largest retailer needed feedback on which of 3 ads to run by Friday. ABX tested the ads and served a recommendation of a spot which scored 20% stronger than the other ads. Ad selected and ran that weekend!
The creative staff of a major beer brand utilized consistent messaging across out-of-home, online video, and radio. But while online video and out-of-home were performing well, ABX benchmarks for the radio ad showed this ad was underperforming. ABX comparative data further revealed that the most effective radio ads in their competitive set used simple voiceover with minimal background effects. The radio ad was remixed, simplifying the presentation. With no change in copy, the insights delivered by ABX improved the remixed radio spot 68%.
One of the world’s largest retailers wanted to place a new symbol/logo on all of their ads, but was concerned of possible detrimental impact on their reputation. ABX tested the concept within one week and had the assurance that this move would actually improve the effectiveness of their ads.
Mini Case Studies
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All Data and Insights Delivered in
Real-Time Access
On the Desktop: Mobile:
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All Creative Data with Easy-to-Use Filtering Tools
If John Wanamaker could See us Now!
• Insights on EVERY ad
• Across ALL media types
• Against ALL competitive ads
• Single methodology for cross-media comparison
• Robust metrics for market mix models and other
• Complete feedback loop for creatives
• Results in 24-48 hours
• All for a fraction of what is charged by legacy providers
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What’s Next & the Offer
• We invite you to investigate yourself. Find out if
what we claim is true. We are open to discussion.
• We offer to show you “real & current” data on your
own brands & categories. We can show you how
your ads stack up versus peers and competitors.
• Give us a call and lets arrange a no-obligation
conference to discuss how ABX can change the
paradigm and give you significantly better, faster
and more complete feedback on your own
advertising effectiveness.
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Gary Getto
President,
Advertising Benchmark Index
M: 347.443.8869
http://blog.adbenchmark.com
Michael Wolfe
CEO
Bottom Line Analytics Global
M: 678.314.8446
www.bottomlineanalytics.com
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Thank You!!
Angela Jeffrey
Vice President,
Advertising Benchmark Index
M: 347.443.8869
http://blog.adbenchmark.com
Contact us for questions & further information
Are you ready for something new that is quicker, cheaper, deeper in coverage and better?
