Research for CBS examines the effect of TV Advertising on CPG Products based on the purchase behavior from 60 Million frequent shopper households.
New research conducted by Nielsen Catalina Solutions for CBS Corp. shows that consumer packaged goods (CPG) marketers can increase sales with television advertising by identifying and delivering consumers based on the products they purchase at retail. These new insights build and expand on the use of demographics to provide CPG advertisers with a higher return on investment and a level of accountability not possible in the past.
A joint venture of Nielsen and Catalina, Nielsen Catalina Solutions helps CPG marketers and media companies measure and improve advertising performance with single—source analytics on all three screens—television, online and mobile.
CBS joins several other major organizations, including a number of CPG companies that have entered into agreements or strategic alliances with Nielsen Catalina Solutions.
Advertising ROI by Consumer Group
For CBS, Nielsen Catalina Solutions examined sales lifts generated by television campaigns across 18 different CPG categories to validate the hypothesis that using single-source data to link television viewing with purchaser data provides new insights that could be incorporated into the media planning and buying process.
The categories included snacks, prepared dinners, dairy, condiments, soft drinks and frozen items. The campaigns’ sales impacts were analyzed through two different lenses: the demographic group of women aged 18-49, and behaviorally defined heavy-category consumers.
The Nielsen Catalina Solutions research demonstrated that improving campaign delivery to top category buyers— such as heavy detergent purchasers —can deliver 2.5 times more ROI leverage, or sales lift, than improving the delivery to a specific demographic, such as women aged 18-49.
The outcome will be a positive for the networks, which strive to achieve sales accountability for the media purchases made by their advertising clients in large part by having the ability to measure the return on investment among specific consumer groups.
“Buyergraphics” leverage buyer segments based on purchase behavior just as demographics use age, gender and income to define an audience. Buyergraphics build on demographics rather than replace them, sometimes including a demographic as an element of the definition.
“CBS is pleased to work with Nielsen Catalina Solutions to offer clients a new way to grow their return on investment by factoring in brand purchasers as opposed to just looking at age/sex-defined demographics,” said David Poltrack, chief research officer, CBS Corp., and president, CBS Vision. “The results point to an advancement that establishes brand purchaser segments as a new, valuable, additional resource for measuring and improving television advertising effectiveness.”
“This work helps our clients gain new insights to drive advertising performance and accountability,” said Mike Nazzaro, CEO of Nielsen Catalina Solutions. “For television planning and buying, leveraging shopper data, ‘buyergraphics’ enhance and complement demographics to optimize total results.”
This new single-source capability allows CPG marketers to identify the most valuable customers, more precisely select media that reaches them, and measure the ROI at a very granular level. The CBS deal follows a series of milestones by Nielsen Catalina Solutions in its first year, including:
• Signed alliances with a national cross-section of retailers to secure 60 million frequent shopper households and set-top box data.
• Engaged with several large CPG firms on projects to define their highest potential customers and the ideal plan for reaching them.
• Expanded the media footprint by entering into a strategic alliance with a leading mobile advertising company with 70 million subscribers and extended online offerings by integrating the shopper data with several key Internet portals, ad exchanges and online networks.
“Nielsen Catalina Solutions is creating the gold standard for precisely measuring advertising performance and providing guidance for improving that performance. We are uniquely positioned to set this new standard because our data assets link to Nielsen’s TV panel, and we have the ‘scale’ to be actionable, across all three screens,” Nazzaro said.
“Our single-source solutions will provide tremendous value for CPG marketers as well as media companies, online networks and mobile advertising companies,” he said. “CBS has been an innovator and leader in driving accountability and the effectiveness of television advertising. Our work together will lead us to new frontiers in consumer marketing.”
Source: Nielsen Catalina Solutions