how are statistics applied in advertising

HOW ARE STATISTICS APPLIED IN ADVERTISING17 April 2020 Presented by Riska Rahmawati

1

Hi, My Name Riska I currently work at Dentsu Indonesia,21 years of working experience in Advertising Agency

Brand handling : Unilever , CCI, Danone, Ultra Jaya, JTI, Garuda Food, Honda, RB, Generali, Kalbe, CIMB Niaga

Graduated from IPB in 1999 (STK-32, NIM : G03-495-042)

What I want to share today…

• Understanding of Marketing’s Needs

• How are Statistics applied in Advertising

Understanding Marketing Needs

Interaction Between Brand & Its Consumers

Brand Consumer

The interaction between brand to the consumers will determine the consumer to consider, To purchase and to stick using the brand

The interaction between brand and consumers is very challenging

brandconsumers

Contact

Points

*Contact point = Point of interaction between brand and consumers and it’s vice versa

What brand should win in this interaction process ?

BRAND

Marketing Mix

Product

Packaging

Price

Promotion

PlacePositioning

People

PR

System

Challenge #1 :

A Complex Marketing Mix

What is the challenge for a marketer ?

A Marketer has a big responsibility to make sure that every single component of Marketing Mix will be well

implemented to enable the brand to be bought/used/consumed by the consumers

Challenge #2 :

Advertising is a small cell of the brand

Brand

Marketing

Promotion

Advertising

Media

Challenge #3 :

takes huge* marketing’s budget

* Industry survey

Brand

Marketing

Promotion

Advertising

Media

50%-60%*of marketing budget goes

to media investment


A Marketer has big responsibility to make sure that the marketing investment through advertising is effective and efficient

#4 : People is bombarded with options

Being bombarded with options in anywhere &anytime


Marketer is facing a very competitive environment and it’s getting tougher to ask consumer to purchase

their product

Challenge #5 :

Consumer Behavior is Changing

“Consumer is actively searching”

Complex Decision Making Process

Aware Interest Desire Action

Trigger

NeedsConsider Search Choose Action Experience Recommend

Old Paradigm : Consumer is an object (AIDA)

Current Paradigm : Authoritative Consumers (extension from AISAS)


Marketer is facing a bigger challenge to build and find a way on how to interact and connect to the

consumers effectively and efficiently

Consumers & Media is Changing (Landscape)

Growing Urban Area

20

2009

49.5%URBAN

2029

54.4%URBAN

Source : RoyMorgan/2009-2019

More educated people in the market(Senior High School & Up)

2009

46.8%Graduated

High School + University

2020

52.5%Graduated

High School + University


White Collars & Professional is Growing

2009

14.4%White Collars &

Professional

2020

29.7%White Collars &

Professional


Upper & Middle Class is Growing


2009 2020

Huge increase in Internet PenetrationPe

rcen

tage

(%

)


Time spent to the internet* Sp

ent

Tim

e (M

inu

tes)


24H consumer’s day in a life* is important !

*Habits, Activity, interest, pshycography info, etc

24H potential Contact Points

Radio

Newspaper

TV

Mobilephone

Socmed

Magazine

InternetWOM

Street HawkersModern Market

Trad’ Market

Poster

Mass Transportation

Café Restorants

Hangout places

Billboard

Wheelcover

SPTeam

Poster

T-shirt

CalendarExhibition

ConcertBazaar

DIGITAL DRIVE EVERY ACTIVITIES

>30 active local TV stations

13 National TV stations

> 1500 radio stations all

over Indonesia

>25K influencer

>1.7 Billions of website

5+ pay TV provider

> 10 OTT Platform

Social Media

> 100 e-commerces

> 1500 Billboard (Jakarta)

Challenge #6 :

Media Clutter continues

Newspapers

Magazines emails

PassionsCinema

E-Music Platform

Hangs out places

Stores

Modern TradeProducts PackagingTransportation


A Marketer has to ensure that the most fit media mix to interact and connect with the consumers

Challenge #7 :Commercial Clutter is increasing

90,000+ TV Commercials

in a week

900,000+ radio Commercials in JKT in a week

1,000,000+ digital

contents in a day

2000+ OOH Sites exposed

in a day


How to ensure every message delivered to consumers is easy to be recalled and well memorized

For sure there are still lots of challenges which faced by the

marketers…

Now we know….To win the mind & heart of consumers is not an easy job !

Advertising as a brand’s vehicle to interact

with the consumers take a very BIG ROLE

*Contact points

…and to understanding the consumers & media landscape’s changing is very important in order to

deliver the most fit Planning Strategy !

What is Media Planning Strategy :

Media are vehicles to communicate a message to the right group at the right time in the right place and the right price

Media Planning is a process that allows advertisers to select the most appropriate medium to communicate the message

effectively to their potential consumer

How Statistics applied in Advertising?

Statistics play a vital role in Planning Strategy in all aspects of advertising starting the market research,

planning, implementation and measurement

#1. Cluster Analysis

Develop segmentation using relevant statement

around social, lifestyle and attitudes

towards brands

#2. Correspondence Analysis

Identify the interest of each cluster

towards content

#3. Regression Analysis

Identify the correlation between TV

Investment & Ad Awareness

#4. Regression Analysis

Identify the correlation

between TV Ad Awareness &

Purchase

#5. Ad stock Modelling

Identify campaign pattern

recommendation e-commerce

campaign

#6. Correlation Analysis

Finding the correlation between TV

Investment vs Market Share

#7. Correlation Analysis & Path

Analysis

Finding the consumer journey

for e commerce

#8. Research

Pre/Post TVC Campaign

#9. Time Series

TV Investment Projection

T H A N K Y O U

how are statistics applied in advertising

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