a paradigm shift in advertising effectiveness measurement
TRANSCRIPT
New Directions for
Ad Effectiveness Measurement
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Contents
1. Situation Assessment for advertising measurement
2. A new paradigm for measuring ad effectiveness: the ABX Creative Test System
3. ABX is Faster-Cheaper-Deeper and Better
4. The Total Ad Effectiveness Landscape: Good, Bad & Ugly
5. How Quick-Serve Restaurant Brands’ Ads compare to key peers and competitors
6. The range of effectiveness for all McDonald’s ads in 2016
7. What strong and weak McDonald’s ads look like
8. ABX online reporting portal
9. ABX Creative Scores Correlate to sales performance
10. Why all this is important
11. Next Steps and Offer
12. Thank you
Current Situation of Advertising Testing &
Measurement
• The majority of copy testing is presently done by “legacy” copy test regimes
• These legacy systems were designed in an era when there were few media channels and copy testing focused almost exclusively on TV
• These legacy systems also were labor intensive, expensive and slow, often taking 3-4 weeks from test to data reporting
• Presently, advertisers are producing many more ads for an expanded and much wider set of media channels.
• Because of the expanded complexity of this market place, legacy copy testing has not adapted. For the most part, there has been no significant changes in these legacy systems for the past 50 years. And because of the expense and slow turnaround, most ad inventory is not tested at all!
• We know that “creativity is the soul of advertising” and “message is the foundation of creative communication”. Without measurement, there can be no effective advertising strategy.
• Advertisers should find this situation unacceptable. Fortunately, a new alternative has come onto the market.
What changing the paradigm means
1. We are introducing a new system which will change the paradigm. We call it the ABX Creative Testing System
2. This is an ad testing system which goes beyond mere reporting and provides tools for actually improving ad creative effectiveness over time.
3. It is also an agile, near-real time reporting system geared for “actionability”
4. Finally, it is more than a bunch of numbers, but numbers which have been proven relevant via market mix models. For the first time, the creative element of advertising has been “monetized”. This makes copy testing far more relevant.
ABX: A Revolution for increasing ad
effectiveness through better creative.• THE ABX Ad Testing System
– Both Pre-testing and post-testing (in market)– Testing respondents based on national sample means all scores across all
media and brands are directly comparable. Custom samples can overlay national sample
– Conducts more ad tests than any company. Also, the largest database of ad normative testing data in the world.
– Has driven out a lot of the cost from copy testing. ABX is significantly less costly per test than other ad-test services
– Provides 24-48 hour guaranteed ad test results– Permits broad ad test coverage of all of your ads across all media channels:
TV, print, radio, outdoor, digital and FSI ads.– Provides syndication with post-test scores and tracking to compare your
brand’s test results versus competitors’ ads– Provides tool to improve ad creative. Through an online-portal, you can
always find strong performing ads and play their audio/video as critical information & as a guide to help you improve ad copy quality and effectiveness.
– ABX ad testing has been validated via marketing-mix models. Test scores are linked to in-market sales.
Faster-Cheaper-Deeper-Better
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ABX Creative Test System
Other Copy Test Services
Faster <=24- 48 hours 2 to 4 weeks
Cheaper < = $5K per test $20-30K per test
Deeper All Media Channels Coverage
Limited Coverage
TV, Radio, Print, OOH, Digital, FSI
TV and limited print
Better Links to Sales Performance
No direct validation
Validated with Marketing-Mix Models
None
The ABX Ad Testing System will give you proven better results, faster and at a lower cost than any other service.
The current advertising landscape. Messy and shows there are a
lot of under-performing ads. Consider that from an advertiser’s
perspective, most of these ads are not even tested!
Good Ads
Underperforming Ads
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Case Study: Quick Serve Restaurants
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All Ads Normative
Digital Ads
Print Ads
FSI Ads
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All Ads Normative
Radio Ads Outdoor Ads
TV Ads
Below shows McD’s produces a lot of ads. McDonald’s can save an
average of $47 million by rotating or Trading Strong Ads for Weak Ads.
The tragedy is that they don’t test most of these ads!
Strong performers
Weak performers
Answers in <= 48 hours
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Digital Ads
Print Ads
Radio Ads
TV Ads
Outdoor Ads
FSI Ads
DIAGNOSTIC REPORTS & DATA
DISPLAY
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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
McDonald’s - $47 Million
With ABX, you know which of your ads are resonating and which are not pulling their weight.
By substituting an “average” ad for an underperforming ad, we estimate McD’s creative effectiveness can be improved by more than $47 million annually.
In addition, by providing your creative team with a feedback loop you can expect to improve even your better performing ads. This has the ability to double these benefits over time.
Marketing-Mix modeling validates the more precise value
We estimate your ROI can exceed 100x the cost of ABX data and services.
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Where possible, substituting strongads for below-norm ads means moneyin the bank.
Real-Time Access
On the Desktop: Mobile:
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• ABX has online reporting portal where you have access to all of your tested
ad results. Actual ad clips for all tested ads enables you to review the full creative online.
• Ad data can be displayed as a detail grid and exported to Excel
• The portal contains all reels and copies of original ads
• Clicking on column headers reorders the data displayed by the column
Access to all KPIs – No Black Box
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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. The
true situation is most often highly inefficient and
wasteful!
R² = 0.1138
0
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SPEN
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Ad SALES LIFT SQRT
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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AB
X IN
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CR
EATI
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SQR
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AD SALES LIFT SQRT
Using the ABX metric to allocate media budget by ad would have generated + $21MM (2%) in incremental revenue for Neutrogena
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