How a Smaller-Spending Brand Can Punch Above Its Weight – Bill Harvey and Barbara Connors

Much is made of digital39s ability to target down to the consumer and measure the sales impact Some scoff at TV39s broad reach and inability to target and measure sales lift Others whisper than some TV money is coming out of the upfront destined for digital Here39s a true life story that flies in the face of all that quotconventional wisdomquot A small brand COMES INTO TV targets smartly with purchase data rather than agesex and then quantifies sales lift and ROI Well played Bravo Constellation and Horizon Media Pierre Bouvard TiVo ResearchThere are many brands even within the largest corporations that do not have a TV budget These brands have burning questions that are knottier than those faced by their larger siblings because whatever they do they have less to do it with This case study is valuable for all advertisers but especially for those brand managers with smaller or no TV budgets We estimate that about a thousand CPG brands fall into this classification Every large CPG advertiser has some of them This is a story about two of those brands Woodbridge by Robert Mondavi and Black Box both popular winesConstellation Brands the world39s leading premium wine company launched its first very modest national TV campaigns for these brands in the summer of 2012 While pleased with the sales results Constellation and its agency Horizon believed it must be possible to do even better if there were a way to improve the targeting Constellation39s visionary management and its agency partners looked at the targeting field very closely and decided the most promising approach would be Big Data single source Using real purchase data directly matched not indirectly fused plus a huge sample size sounded logically as if it had to be the most robust solutionTiVo Research utilized its Media TRAnalyticsamp174 software to conduct an overlap analysis between the agesex target utilized during the summer 2012 TV campaign and three potential purchaserbased targets Brand Purchasers Category Purchasers and Competitive Brand Purchasers The analysis showed that the current agesex buying target only covered about 60 of purchasing households and even less of the volume The observations made during this phase had another benefit Given the brands39 growth objectives it was determined that reaching competitive brand purchasers would be the priority in 2013In Phase 2 TiVo Research reviewed the summer 2012 TV brand schedules to identify placements to be avoided in summer 2013 Phase 3 provided Horizon with current NetworkDaypart TTIs True Target Indices ie the indices of purchaser concentration to identify new opportunities for placementsPhases 4 and 5 were multivariate analyses performed by dunnhumby Using the TiVo Research TV viewership data combined with consumer purchase behavior data dunnhumby was able to determine the sales lift of the Woodbridge and Black Box TV advertising campaigns in the summers of 2012 and 2013The summer 2012 analysis would provide a basis of comparison to quantify the impact of utilizing the competitive purchaser target in place of straight demographic based targeting The summer 2013 campaigns utilized virtually the same budget the same creative and the same flight dates as the summer 2012 campaigns The only difference was the networkdaypart allocation Business Results 20X ROI improvement and 50 Sales Lift Results of shifting to purchaserbased targets were impressiveWoodbridge by Robert Mondavi9 fewer W2554 TRPs Targeted Rating Points against Women 2554 while increasing the brand W2554 reach by 21 The ROI analysis reported doubledigit sales lifts across the board Woodbridge outpaced its competitors by increasing dollars spent per household by 56 while competitors only experienced a 4 sales lift Increases were also seen in volume per household 49 and purchase frequency 27 Even more exciting absolute sales lift increased by 28 vs the demobased summer 2012 performance Household penetration grew 32 during the campaign while competitors only saw 2 growthBlack BoxHalf of the networks used in 2012 were dropped in 2013 and replaced with networks that performed better against the competitive brand purchasers Dollars per household and purchase frequency lifts in exposed households were 233 higher than their matched control group Volume per household also saw a 219 sales lift Household penetration was up 183 while the competition only saw 5 growthWhat this case study shows is that smallbudget TV brands can enjoy the sales lift of what would normally require a substantial budget increase eg doubling the media budget amp8212 but without spending more than a small research cost equivalent to less than 5 of the incremental sales producedThis is surely good news not only for the hundreds of smaller brands in the stables of the corporate giants but also for the small and midsized CPG businesses across AmericaBarbara Connors is dunnhumby Director of Media Capabilities Thanks also to Sheryl Harkins who leads the TiVo Research CPG practice after a similar role at Nielsen Sheryl contributed significantly to the success of this project by her leadership and participated in the interpretation of all study findings Bill Harvey is a wellknown media researcher and inventor who cofounded TRA Inc and is its Strategic Advisor His nonprofit Human Effectiveness Institute runs his weekly blog on consciousness optimization Bill can be contacted at billbillharveyconsultingcomRead all Billamp8217s MediaBizBloggers commentaries at In Terms of ROICheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBlogger The opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries amp160

Become a Thought Leader. Share your thought leadership article with industry professionals & have them archived in Thought Leadership

How a Smaller-Spending Brand Can Punch Above Its Weight – Bill Harvey and Barbara Connors

Author

Publish date

Channel

Bill Harvey

"About That with Carl Mayer:" Alaina Donnellon (Episode 10: Political Spending) - By Carl Mayer

More Videos:

Become a Thought Leader. Share your thought leadership article with industry professionals & have them archived in Thought Leadership

How a Smaller-Spending Brand Can Punch Above Its Weight – Bill Harvey and Barbara Connors

Enjoying This Commentary? There's More to Love

Bill Harvey

"About That with Carl Mayer:" Alaina Donnellon (Episode 10: Political Spending) - By Carl Mayer

The payment was successful

Cookies