does it move soap off the shelves?

®
CPG
DOES IT MOVE SOAP
OFF THE SHELVES?
MEASURING DIGITAL VIDEO ADVERTISING’S
IMPACT ON OFFLINE CPG SALES
“
Television is still
king for CPG
marketers. They
know exactly how
many television
GRPs it takes to
move detergent
off the shelves.
We need to
similarly define
video’s specific
value proposition
by showing how
we can directly
equate video
ad exposure to
sales success.
”
–Scott Ferber, Chairman and
CEO, Videology
When brand advertisers launch advertising
campaigns, particularly in the digital space,
agencies and other partners are asked to track
metrics ranging from reach and frequency,
to brand affinity. Brand CMOs, however, are
ultimately judged on one criteria—product sales.
This is particularly true for the consumer packaged
goods category.
CPG ADVERTISERS are typically some of the highest television
spenders—and for good reason. After 50 years of television-centric
marketing, they know the right television equation to move product off
the shelves. But data has the potential to bring this same level of ROI
confidence to other media—including digital video, the natural complement
to a brand’s television spend.
To help CPG brands integrate digital video into their ROI-based media
strategies, Videology developed Sales ImpactSM to link online and
mobile in-stream video advertising to offline purchases using multiple
measurement sources.
The following research report highlights some of the key findings
culminated from our work with Kantar Shopcom and major CPG brands
using Sales Impact over the past year. These directional results offer an
example of the type of insights possible for CPG marketers interested in
incorporating video into their advertising mix.
®
CPG HIGHLIGHTS
Those exposed to
Digital Video Campaign
vs. Control Group
DIGITAL VIDEO DRIVES SALES
FOR CPG BRANDS
Videology analyzed over 186 million video impressions served
across online and mobile video for CPG advertisers to determine
overall findings about digital video’s ability to drive key sales
metrics including Penetration Lift, Units Velocity Lift and Sales
Velocity Lift.
OUR TOPLINE FINDINGS:
lA
ll online video campaigns analyzed drove an increase in sales for those exposed to
the message versus the control group. Sales Velocity Lift ranged between 4% to
35%
Highest Sales lift in
single campaign
an impressive 35%. However, since the brand campaigns often corresponded to a
promotional effort, such as couponing or temporary price reductions, Sales Lift on its
own does not tell the whole story, and may under-represent campaign success.
l Because of these pricing variations, lift in household penetration is an important,
and in some ways, truer factor in gaging campaign performance. An increase in
the number of households purchasing a product after exposure to a brand’s
ads ranged from 9% to as high as 28% across all CPG campaigns analyzed.
l Penetration Lift correlates positively to another important metric, Unit Velocity
Lift. In other words, when the number of households buying the brand increases
(Penetration Lift), more units are sold (Unit Velocity). In our study, lift in Unit
Velocity ranged from 8.5% to as high as 30%.
l Interestingly, the number of units purchased per shopping trip, as well as
9%-20%
Range in Household
Penetration lift
across campaigns
20%
Increase using
purchase-based
data targeting
compared to
demo targeting
Source: Videology Sales Impact,
186 Million Impressions
the frequency of purchases, showed little variation between the exposed
and control group across all products analyzed. So while one might purchase
dairy products more frequently or in greater quantity than, for instance, cleaning
products, these patterns and behaviors were not influenced by exposure to a
brand’s messaging.
lA
udience targeting based on purchase data performed 20% better in
driving lift than demo targeting. (Purchase data might include any number
of factors, including heavy purchasers in a given category, brand purchasers, or
competing brand purchasers.)
Demo-targeted ads, however, also performed well and drove stronger lift on average
compared to the control group. Overall, both targeting sets play a role in successful
online video campaigns, as demo targeting is generally needed to provide scale,
while purchase-data targeting can be leveraged to drive specific lift metrics.
l Completed views and total reach were the two most important metrics for increasing
product penetration and driving units sold. It’s also worth noting that click through
rate was not associated with a higher lift in sales metrics.
CASE STUDY:
RESULTS:
SECTOR:
Health & Beauty
NEW PRODUCT LAUNCH*
VIDEO DRIVES 35%
SALES LIFT FOR
NEW PRODUCT LAUNCH
CAMPAIGN GOAL:
Drive Awareness and Trial for
New Product Launch
BRAND CHALLENGE:
When a major brand introduced a new skincare product
earlier this year, a three-pronged targeting approach utilizing
online video pre-roll ads drove spectacular results. Demo
data ensured reach against their female audience base.
Purchase data allowed the brand to reach purchasers of
competing products. And, finally, Nielsen data was employed
to retarget those exposed to the brand’s television ads.
CASE STUDY:
VIDEO DRIVES
HOUSEHOLD
PENETRATION FOR
REGIONAL EFFORT
SECTOR:
Food
CAMPAIGN GOAL:
Drive Market Share in Specific Regions
BRAND CHALLENGE:
A packaged-food brand wanted to boost its market share
within its weaker performing markets. The brand turned
to online video to better focus its media spend. Using a
combination of geo-targeting and 3rd party data, Videology
focused ads on the brand’s designated low BDI markets,
coupled with purchase data and psychographics data on
consumers interested in a healthy lifestyle.
Those exposed to the video ad purchased 30% more
units (unit velocity lift) than the control group, and also
saw similar increases in the number of units sold per
100 households, as well as in-household penetration.
Moreover, the campaign also produced a “brand halo”
effect, driving lift in unit sales and household penetration
across all the brand’s products.
30%
21%
35%
UNIT
VELOCITY
HOUSEHOLD
PENETRATION
DOLLAR
VELOCITY
BRAND’S TOTAL PRODUCTS*
34%
28%
28%
UNIT
VELOCITY
HOUSEHOLD
PENETRATION
DOLLAR
VELOCITY
*Compared to control group not exposed to video advertisements
Source: Videology Sales Impact, Q4 2012, Q1 2013, 35 Million Impressions
RESULTS:
Within this reach-driven campaign, those exposed to
the online video ad drove a household penetration lift
of 14%, while unit velocity and sales velocity both rose
11% in the targeted regions. Those who completed the
video ads, echoing overall CPG trends, spent the most
dollars per 100 households. Among the brand insights
discovered, age did not appear to have any impact on
the average dollars velocity, which could inform future
demographic buys.
PRODUCT LIFT*
11%
14%
11%
UNIT
VELOCITY
HOUSEHOLD
PENETRATION
DOLLAR
VELOCITY
*Compared to control group not exposed to video advertisements
Source: Videology Sales Impact, Q3 2012, 24 Million Impressions
®
FYI:
CPG advertisers spend the
most ad dollars of all
categories in digital video
Source: Videology Q1 2013
CASE STUDY:
CHALLENGER BRAND USES
VIDEO TO DRIVE 4X ROI
SECTOR:
Cleaning Product
CAMPAIGN GOAL:
Increase Share in Competitive Category
BRAND CHALLENGE:
A challenger brand in a saturated category needed to make its
media dollars work harder and smarter to grab share from its higher
spending competitors. The key—target core consumers with
online video using complementary data sources. The strategy was
designed to focus on the brand’s high potential buyers—familyoriented women 25-49 with children—as well as to target heavy
category users and to conquest purchasers of competing brands
with online video pre-roll ads using offline retail data.
VIDEO AD SPEND BY CATEGORY
22.2%
14.5%
11.7%
FINANCIAL ENTERTAINMENT
SERVICES
CONSUMER
GOODS
RESULTS:
In addition to relatively rapid double-digit lift in unit
velocity, household penetration and dollar velocity
within a notoriously slow moving category, the big
story here was ROI. Specifically, there was over
a $7 lift per 100 households for those exposed to
the video advertisements—equating to almost $1
million in incremental sales over the course of the 6
month campaign. The result—almost a 4X ratio of
sales lift to media spend!
PRODUCT LIFT*
13%
14%
13%
UNIT
VELOCITY
HOUSEHOLD
PENETRATION
DOLLAR
VELOCITY
ROI=
4:1
Incremental Sales
Lift to Media Spend
*Compared to control group not exposed to video advertisements
Source: Videology Sales Impact, Q1-Q3 2012, 21 Million Impressions
Research was conducted using Sales ImpactSM, Videology’s ROI attribution and tracking
tool for brand advertisers. Through first-to-market partnerships with major data providers,
Videology can connect in-stream video advertising, as well as mobile video and display
advertising, to specific offline purchases in the CPG, retail and automotive sectors. Sales
Impact allows advertisers to determine how many users who saw an advertisement actually
purchased the product and how different engagement metrics influenced sales.
ABOUT VIDEOLOGY
Videology is an enterprise media technology for agencies and advertisers. The company provides end-to-end, holistic,
cross-device and cross-format solutions to improve ROI for brands.
Videology, Inc., is a privately-held, venture-backed company whose investors include NEA, Valhalla Partners and
Comcast Ventures. Videology is headquartered in Baltimore, USA, with key offices in New York, Austin, Toronto, London,
Paris, Madrid, Singapore and Sydney.
For more information, please contact Michele Skettino, [email protected].