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Leadership and Marketing Excellence
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IS NEW AGAIN
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MARKETING WITH LIMITED RESOURCES
NOVEMBER 2015
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CONTENTS
Leadership and Marketing Excellence
NOVEMBER 2015
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Board of Directors
ROGER ADAMS, USAA
DANA ANDERSON, MONDELEZ INTERNATIONAL
MARK BAYNES, KEURIG GREEN MOUNTAIN LINDA BOFF, GENERAL ELECTRIC
03
CHRIS BRANDT, TACO BELL
GAURAV CHAND, DELL
DAVID CHRISTOPHER, AT&T
14
CHRIS CURTIN, VISA
JERRI DEVARD, ADT
ROEL DE VRIES, NISSAN
PAUL EDWARDS, GENERAL MOTORS
DEANIE ELSNER, KELLOGG
ALICIA ENCISO, NESTLÉ
ANDREW ENGLAND
NATALIA FRANCO, CALIFORNIA PIZZA KITCHEN
SANJAY GUPTA, ALLSTATE
JACK HABER, COLGATE-PALMOLIVE
JOHN HARROBIN
JACK HOLLIS, TOYOTA
JON IWATA, IBM
BRADLEY JAKEMAN, PEPSICO
GERALD JOHNSON II, AMERICAN HEART ASSOCIATION
JEFFREY JONES II, TARGET
JOHN KENNEDY JR., XEROX
PAGE
02
RICH LEHRFELD, AMERICAN EXPRESS
KRISTIN LEMKAU, JPMORGAN CHASE
CHANTEL LENARD, FORD
#ANALOG
Bud Light’s cool new product; Mercedes-Benz creates uncrashable
toy cars; key stats; upcoming events; quick facts; and more.
ALISON LEWIS, JOHNSON & JOHNSON
BOB LIODICE, ANA
ROB MASTER, UNILEVER
PAGE
04
TONY PACE
MARC PRITCHARD, PROCTER & GAMBLE
STEPHEN QUINN, WALMART
DOING MORE WITH LESS
How brands like King’s Hawaiian, City Year, f ’real, and others
perform magic on a limited marketing budget. // BY ANNE FIELD
DIEGO SCOTTI, VERIZON
JAMES SPEROS, FIDELITY INVESTMENTS
ROBERT TAS, PEGASYSTEMS
PAGE
SPECIAL SECTION:
09 BOOSTING THE SIGNAL ON LINEAR TV ADVERTISING
JOHN TRAVIS, ADOBE SYSTEMS
JIM TREBILCOCK, DR PEPPER SNAPPLE
5IZSM\MZ[KIVVW_LMÅVQ\Q^MTa\ZIKMW‫ټ‬QVM[ITM[\W\ZILQ\QWVIT
television advertising. Here’s how. // BY PETER GIORDANO
MEREDITH VERDONE, BANK OF AMERICA
DEBORAH WAHL, MCDONALD’S
VERCHELE WIGGINS
RODNEY WILLIAMS, MOËT HENNESSY
PAGE
@ANAMARKETERS
Executive Editor
DUKE FANELLI
Production Director
FREDERICK KNECHT
Editorial Director
KEN BEAULIEU
Publisher
KRISTINA SWEET
ksweet@ana.net
Editor
ANDREW EITELBACH
aeitelbach@ana.net
Art Director
SORAE LEE
COLOSSAL MEDIA
FACEBOOK.COM/ANA
ANA
708 THIRD AVE., FLOOR 33
NEW YORK, NY 10017
212.697.5950
14
PAGE
17
THE WRITING ON THE WALL
Hand-painted murals may be old fashioned, but the art form is
making a comeback with a number of brands. // BY UREY ONUOHA
#ANALYSIS
or
Here’s a
, if someone is on a , they’re probably using emojis.
, by the numbers. // BY ANDREW EITELBACH
Copyright © The ANA (Association of National Advertisers) 2015.
All rights reserved. Reproduction in whole or in part without express
written permission of the publisher is strictly prohibited.
Opinions expressed within are not to be considered official expressions of the ANA. The ANA assumes no responsibility for errors or
omissions appearing within. The ANA reserves the right to accept
or reject all editorial and advertising matter. The ANA does not
assume any liability for unsolicited materials.
// COVER PHOTOGRAPHY: ALEX NABAUM
ANA.NET //
1
#ANALOG
COOL IDEA
Internet of Things Slowly Finding a Home
U.S. consumers who have at least one smart-home device.
AGE RANGE
18–37
38%
38–49
34%
50–68
29%
69-plus
34%
source: 2015 Harris Poll
2
// ASSOCIATION OF NATIONAL ADVERTISERS
“Our motto is
‘be scrappy,
not crappy.’”
— ALLISON LEWIN, vice president of
marketing at f’real, talking to ANA for
this month’s cover story.
$800
The 2020 digital
revenue goal of
The New York
Times. In 2014,
the storied newspaper reported
digital revenue of $400 million.
MILLION
BUD-E FRIDGE/BUDWEISER; WATCH/SHUTTERSTOCK
CONSUMERS WITH A THIRST FOR INNOVATION will drink up
the new Bud-E Fridge from Bud Light, or so hopes AB InBev. The WiFienabled refrigerator, which holds 78 beers, keeps tabs on its own inventory
IVLX][PM[IZMIT\QUMVW\QÅKI\QWV\WIUWJQTMIXX_PMVQ\¼[Z]VVQVOTW_<W
leverage Bud Light’s sponsorship of the NFL, the fridge can track a person’s
NI^WZQ\M\MIUIVL[MVLIOIUMLIaVW\QÅKI\QWVQN Q\VMML[ZMXTMVQ[PQVO<PM
fridge went on sale last month, just a few weeks into the current NFL season.
Currently only available for sale in California, the fridge and its mobile
app coordinate with alcohol-delivery company Saucey, so ordering more
brews is as easy as possible. “With the Bud-E Fridge, we’ve created something that shows how we continue to push the boundaries in technology
and innovation, particularly in the connected home of the future, and provide beer drinkers with a new level of convenience to better enjoy Bud
Light with their friends,” said Lucas Herscovici, vice president of consumer
connections at Anheuser-Busch, in a statement.
Part of the brand’s forward-looking “Up for Whatever” campaign, the
fridge comes on the heels of a successful Bud Light initiation rolled out this
past January in Washington, D.C., which let thirsty consumers order a beer
delivery via the Bud Light Button mobile app.
— Andrew Eitelbach
FOOD FOR THOUGHT
The major brands at which
adults ages 18 to 34 are
most likely to eat two to
four times per month:
Arby’s
Five Guys
CHIPOTLE
TACOJack
BELL
in
Calendar
Pizza Hut
the Box
ANA DIGITAL & SOCIAL MEDIA
CONFERENCE (EAST)
source: 2015 Resonate
December 2–4
Amelia Island, Fla.
Try This On for Size
7 IN 10
CMOs who said in a
survey they would not
recommend their
current agency of
record. Respondents
cited poor client
service as the main
reason why.
source: 2015 BTI Consulting Group
International Data Corp.
estimates that global
shipments of wearable
devices will hit
173.4 million by 2019.
56 PERCENT
of global
respondents
said they
completely or
somewhat trust
brand emails
they opted in to.
source: 2015 Nielsen Global Trust in
Advertising Report
2016 ANA BRAND MASTERS
CONFERENCE
February 3–5
Hollywood, Fla.
2016 ANA MEDIA
LEADERSHIP CONFERENCE
March 2–4
Hollywood, Fla.
2016 ANA ADVERTISING
LAW & PUBLIC POLICY
CONFERENCE
April 6–7
Chicago, Ill.
2016 BAA BRAND ACTIVATION
ANNUAL SHOWCASE
April 18–20
Chicago, Ill.
// WATCH IT
Mercedes-Benz
created a pair
of toy cars that
won’t crash into
each other to
promote the
anti-collision
brake assist
technology in its
new vehicles.
2016 ANA ADVERTISING
FINANCIAL MANAGEMENT
CONFERENCE
May 1–4
Boca Raton, Fla.
// Learn more, visit ana.net/events Click to watch.
ANA.NET //
3
4
// ASSOCIATION OF NATIONAL ADVERTISERS
MAKING
EVERY
PENNY
COUNT
NINE WAYS
MARKETERS
WITH LIMITED
BUDGETS CAN
DO MORE
WITH LESS
The results have been stellar: Unaided awareness has inWhen Erick Dickens became vice president of marketcreased 75 percent since late 2013, household penetration is up
ing at King’s Hawaiian in 2013, he met with a creative agency
15 percent, and consumers who agree that King’s Hawaiian is
to discuss his marketing plans for the Torrance, Calif.–based
“one of my favorite brands” rose by 26 percent. “We’re a relamaker of sweet bread and rolls. His objective was to boost
tively small company with a relatively small marketing budget,”
brand awareness, customer engagement, and household pene,QKSMV[[Ia[¹*]\_M¼^MUILM[WUMZMITTa[QOVQÅKIV\OIQV[QV
tration, and he had a lot of ideas for how to do it. The agency
consumer awareness levels.”
folks, however, practically laughed in his face: On his limited
Of course, it’s nice to have a multimillion-dollar budget,
budget, they couldn’t possibly do all the things he was asking.
but, as Dickens proved, it’s not necessary for marketers to
;W,QKSMV[LMKQLML\WPMTT_Q\P\PMU#PM¼LÅO]ZMW]\PW_
achieve their goals. What is required is a
to do it on his own. He hired a team with the
smart and creative use of resources, allowing
[XMKQÅK[SQTT[PMLMMUML\WJM^Q\IT\W[]KKM[[
marketers to stretch their money as much
and launched a budget-conscious campaign
By Anne Field
as possible.
using everything from King’s Hawaiian–
Illustration by
When working with a small budget, Allison
themed Oscar-viewing parties to savvy prodLewin, vice president of marketing at f ’real,
uct placement and strategic social media use.
Alex Nabaum
ANA.NET //
5
the Emeryville, Calif.–based maker of
frozen milkshakes, smoothies, and other
beverages, takes a similar approach to
Dickens. “Our motto is ‘be scrappy, not
crappy,’”
she says. Translating that
philosophy into action, however, takes
ZMIT[I^^aIVLOMVMZITTaUMIV[LQ‫ٺ‬MZMV\
[XMKQÅK[NWZLQ‫ٺ‬MZMV\KWUXIVQM[
Here are nine lessons from marketers
who have operated on a small marketing
budget with successful results.
ONE
START WITH YOUR
COMPANY’S KPIS
<PMÅZ[\[\MXQ[]VLMZ[\IVLQVO\PMWZOIVQzation’s goals, so marketing activities address what’s most important. For example,
when Kristi Gloppen joined The Nerdery,
sales continue to generate high growth.
To her, that meant “going broad and
wide, and bringing more prospects into
the funnel.”
Trouble was, such an approach could
be expensive. She decided to emphasize
tactics most able to provide insights into
the type of content clients and prospects
needed most, such as white papers with
plenty of easy-to-understand infographics
and useful research, and use that to help
build relationships. “We wanted to create
an ongoing conversation,” Gloppen says.
She developed content on topics like how
to choose the right content management
system for a website, with a worksheet to
walk readers though the requirements,
and how to make the most of a use-it-orlose-it budget. Her team posted the items
AGENCIES FOR ¢HANGE
Hiring an agency isn’t usually the lowest-cost route to take, but there are ways to
keep the price-tag low.
Hire them for the plan. For Chris Steenstra, managing partner at Eric Mower & Associates, agencies are particularly useful when developing a master plan. So, while one
might not hire the outside firm to execute every step of the way, marketers might
consider using an agency to come up with a holistic overview. “They’d give you a road
map for the marketing journey ahead,” she says. “That’s typically where agencies excel.” In addition, if there’s a specific deliverable a marketer can’t produce in-house
effectively — a high-end video, say, or complex set of online tools — then hiring an
agency to take care of those can be a smart move.
Focus on metrics. Another likely place to use an agency is in helping to establish
the metrics necessary to measure the performance of a campaign and then do the
analysis, suggests Steenstra. That’s particularly important for those on a small budget, since it allows them to understand what’s providing a return or whether a tactic
should be dropped.
Opt for a smaller shop. Chances are, a marketer with an insignificant budget isn’t
going to be a priority at the typical large agency. But if they were to go with an upstart
or a small outfit, they might be much more important to company revenues. Erick
Dickens, vice president of marketing at King’s Hawaiian, for example, recently started
using a new firm headed by the former creative director of a large advertising agency.
In fact, the man launched the enterprise in consultation with Dickens, he says. King’s
Hawaiian is the new firm’s largest client — and gets plenty of attention.
— A.F.
a Bloomington, Minn.–based custom software design and development company,
last year as a vice president of marketing,
she learned her focus had to be on helping
6
// ASSOCIATION OF NATIONAL ADVERTISERS
to the company website and promoted
it through social and other means, and
prospects who downloaded the content
traded their basic contact information for
access. Then her team could contact
anyone who downloaded a report to try
to strike up a relationship. Plus, feedback
from prospects could be used for developing other content.
Gloppen also attends small trade
shows costing $5,000 or less, rather than
just going to one or two major extravaganzas. “It allows us to have conversations with people, learn about their
software problems, and how we can solve
them,” she says.
TWO
FOCUS ON THE
CHANNELS THAT
LIVE WHERE YOUR
CUSTOMERS ARE
At World Surf League, which organizes
XZWNM[[QWVIT[]ZÅVOKWUXM\Q\QWV[IZW]VL
the globe and also broadcasts them live
\PZW]OPQ\[_MJ[Q\M_WZTL[]ZÆMIO]MKWU
the user experience primarily happens
online or through an app. For that reason, Christopher Culbertson, vice president of marketing, eschews traditional
channels in favor of social media posts
and targeted campaigns on Facebook or
Instagram. “It’s a longer step to convert
the user into a consumer of our media
with other channels than if we reach
them in a digital space,” he says.
At the same time, Culbertson pairs that
IXXZWIKP _Q\P M‫ٺ‬WZ\[ \W KWUU]VQKI\M
with consumers primarily when there’s
content of value that will quickly draw
them to the site and provide an immediate
reward for engagement. For example, he
tries to drive downloads of the app when
the company is streaming live competitive
[]ZÅVOM^MV\[_PQKPZ]VI\LQ‫ٺ‬MZMV\\QUM[
IVL I\ LQ‫ٺ‬MZMV\ TWKI\QWV[ IZW]VL \PM
world. “If you say, ‘Download this now to
get something happening now,’ people are
much more apt to act,” he says. That also
makes it easier to measure how many fans
are tuning in and for how long.
The approach is also crucial because
Culbertson needs a way to alert viewers in
real time when an event is about to take
place. The reason: While competitions are
[KPML]TMLL]ZQVOI[XMKQÅK\QUMNZIUM\PM
exact moment they occur depends on the
weather. Through social media and app
alerts, he can tell viewers when it’s time to
visit the site or their app and start tuning in.
THREE
CONDUCT SMALL
TESTS AND MAKE
FREQUENT TWEAKS
Spending small amounts of resources on
IV]UJMZWN LQ‫ٺ‬MZMV\IXXZWIKPM[\W[MM
which one works best, then devoting
UWZM UWVMa \W ZMÅVM \PM _QVVMZ[ Q[ I
strategy that has worked well for f ’real’s
Lewin. As an example, she points to the
f ’real Reese’s Peanut Butter Cup Milkshake, which was originally produced in
a limited quantity. After several months
of testing, analyzing results, and “getting
the kinks out,” says Lewin, the company
decided it was time to introduce the
drink nationally.
Even when small tests don’t succeed,
they contain valuable lessons for future
pilots. Recently, Lewin worked with
?ITUIZ\\WZ]VIXQTW\QVÅ^M,ITTI[[\WZM[
According to Lewin, the results haven’t yet
met the retail giant’s requirement for velocity and Walmart is considering the pilot’s future. Still, she learned so much from
the experience that the next time she
works with a grocery channel — or even
tries another round with Walmart — she
knows her team will be ready.
FOUR
CITY YEAR
BE IN PLACES
OTHERS ARE NOT
If marketers don’t have the resources to
outgun their competitors, they should try
to locate promotional assets where they’ll
PI^M\PMÅMTL\W\PMU[MT^M[<ISM/QTTQIV
;UQ\PKPQMN UIZSM\QVOW‫ٻ‬KMZI\+Q\aAMIZ
I*W[\WVJI[MLVWVXZWÅ\\PI\XTIKM[aW]VO
adults in schools as educators and uses
marketing to target potential recruits. It
NIKM[IXIZ\QK]TIZTaLQ‫ٻ‬K]T\KPITTMVOM[QVKM
most donors don’t want the organizations
that receive their charitable giving to spend
a lot of it on marketing. To that end, several years ago in Columbia, S.C., Smith
worked with the city government to place
the City Year logo on the street in the middle of an intersection outside city hall.
That’s also near the University of South
Carolina, a useful target, since the organization recruits college students and recent
OZIL]I\M[<PIVS[QVXIZ\\W[]KPM‫ٺ‬WZ\[
City Year has doubled revenues and the
V]UJMZWN ZMKZ]Q\[W^MZ\PMXI[\Å^MaMIZ[
FIVE
PUT YOUR TEAM ON
A VERY LONG LEASH
For best results, allow marketing teams
room to run, make important decisions,
and have an impact. It’s especially important for Millennials, for whom such
responsibility tends to be crucial. “I don’t
micromanage them,” says Dickens of
King’s Hawaiian. That also helps in encouraging his team to take risks, because
they’re directly and personally invested in
a particular activity, and can’t hide behind
bureaucratic layers. “When you’re more
accountable for something, you’re going
to do everything you can to make it a big
success,” he says.
SIX
DO AS MUCH AS YOU
CAN IN-HOUSE
Agencies can be expensive so, of course,
marketing dollars will go further if spending can be kept to a minimum. How to do
that? For Dickens, it all rests on the exper\Q[MWN PQ[Å^MXMZ[WV\MIU¹:I\PMZ\PIV
the typical playbook of hiring candidates
from the top business schools, I looked for
a diversity in skill sets,” he says. He likens
it to building a sports team, but one where
colleagues have complementary strengths
in such areas as analytical forecasting and
social media. As a result, Dickens says he’s
been able to use outsiders less.
Similarly for Lewin, the key is only
\]ZVQVO\WIOMVKQM[\WXZW^QLM[XMKQÅKM`pertise she doesn’t have in-house with her
20-person team, or for which she can’t
ÅVL[]Q\IJTMNZMMTIVKMZ[¹?M][MIOMVKQM[
for skill sets we can’t hire for or when we
need new ideas we can’t wrap our head
around on our own,” she says. For example, earlier this year she hired a digital
agency to help her do more paid digital
content, including testing various initiatives, conducting the buying, and measuring the results. Lewin also ensures her team
members are constantly learning new skills
by attending seminars or even learning
from their experience with agencies.
Dickens has another trick up his
sleeve to avoid relying on media buying
IOMVKQM[[XMKQÅKITTa0MK]T\Q^I\M[ZMTItionships with TV show producers and
movie studios — think United Artists
5MLQI /ZW]X +PQMN -`MK]\Q^M 7‫ٻ‬KMZ
Mark Burnett or NBC’s TODAY — so he
can work directly with them on product
placement and sponsorships. That involves taking advantage of his personal
network, which includes the friendly and
professional relationships he originally
formed in previous jobs.
SEVEN
FORM SMART
PARTNERSHIPS
Smith’s approach also rests on forming
M‫ٺ‬MK\Q^MIVLTW_KW[\ITTQIVKM[_Q\PW\PMZ
organizations — as she did with city government. Likewise, Lewin partners with
ZM\IQTMZ[\WXZWUW\MM`KT][Q^MÆI^WZ[.WZ
example, f ’real recently worked with convenience store brand Cumberland Farms
\W KZMI\M I KW‫ٺ‬MM UQTS[PISM ][QVO \PM
ANA.NET //
7
ROBERT TAS,
chief marketing officer
at Pegasystems,
on optimizing spend
Q. What would you suggest marketers
with limited ad budgets do to maximize
their marketing ROI?
A. Being data driven is a pretty good
start, as well as understanding what outcome metrics you really want. I think we
often do things based on history or what
we think marketing is supposed to do.
Instead, focus on the outcomes you want
and the tools you need to achieve them.
Also, really helpful customer-centric content is going to serve you well.
At Pegasystems, we’re focused on
creating content that’s easy to understand and tells a great story. Great content is powerful, and it’s a game-changer.
Pega’s website, for example, includes a
lot of customer testimonials, which we
repurpose. They are more powerful than
anything I can write. I’m a big advocate
of bringing stories to life, being data
driven, and measuring success. Don’t
get attached to something you kind of
wish would work. Focus on being true to
yourself and to the brand.
Q. How do you monitor your marketing
activities to ensure you’re using your
budget as efficiently as possible?
A. In today’s digital world, we can be
more efficient in our targeting and in our
personalization. But you have to pick
your battles, as opposed to spreading
yourself too thin. For example, when we
first launched our “Pega Can” ad campaign this year, we focused all our efforts
on North America. Then we expanded it
to Europe because we showed all our
stakeholders that we could execute the
campaign brilliantly. And now we’re taking it to the rest of the world, instead of
first trying to do something that was just
too big to bite off all at once.
Q. What is the one piece of advice that
has served you well throughout your
career?
A. If you’re going to do something, do it
right. I tell this to my team all the time.
If you do the best you possibly can, it
will reflect well on you personally, on
the marketing function, and on the
brand. If you’re not going to do it right,
don’t do it because it will come back to
bite you.
— Ken Beaulieu
ZM\IQTMZ¼[ KW‫ٺ‬MM M`\ZIK\ 4M_QV XWQV\[ \W
the added bonus of such an arrangement, where she’s been able to piggyJIKSW‫\ٺ‬PMTIZOMZKWUXIVa¼[UIZSM\QVO
M‫ٺ‬WZ\[ )KKWZLQVO \W 4M_QV I\ TI]VKP
8
// ASSOCIATION OF NATIONAL ADVERTISERS
KW‫ٺ‬MM_I[\PM6WÆI^WZNWZITT+]Uberland Farms’ f ’real milkshakes. “They
are promoting it like gangbusters and it’s
really done well,” she says.
EIGHT
PAIR OFFLINE AND
DIGITAL ACTIVITIES
King’s Hawaiian ran a commercial during
the last Oscars. To get the most from that
investment, the company
had paid and organic promotions on Facebook and
Twitter. In addition, working with the event company
House Party, the brand
sponsored 3,000 Academy
Award–season soirees, supplying each one with a
starter kit that included
rolls, kitchen aprons, and
Hawaiian shirts. Party attendees promoted the King’s Hawaiian
products through social media. “We genMZI\MW]ZI_IZMVM[[W‫ټ‬QVMIVLUI`QUQbM
our engagement online,” Dickens says.
NINE
CREATE AUTHENTIC
CONTENT
In some cases, authentic material means
encouraging user-generated content, especially if there is a highly engaged, passionate base. At City Year, the young and
digitally savvy recruits are made-to-order
providers of content about the success
and rewarding nature of the volunteer
experience. After teaching social dos and
don’ts, such as never sharing names of
their students, Smith encourages recruits
to tell their stories over Twitter and Facebook, using the hashtag #makebetterhappen. “We’re trying to reach young
people and that positive, authentic word
of mouth coming from peers, rather than
IVWVXZWÅ\Q[\ZMUMVLW][TaQUXWZ\IV\º
Smith says. Her team also has turned
some tweets into posters.
Of course, marketers can also generate their own digital content, instead of
paying for media. “If I were to use my
media budget to buy media, I would be a
whisper in a hurricane,” says Amanda
Brinkman, chief brand and communica\QWV[ W‫ٻ‬KMZ I\ ;\ 8I]T 5QVV·JI[ML
Deluxe Corp., a check printer. “We’re
constantly outspent by our competitors.”
Therefore, the content has to stand out.
More than a year ago, when faced with
the challenge of promoting the company’s
relatively new thrust into small-business
marketing consulting, Brinkman decided
on a unique content marketing strategy.
;PM TI]VKPML I LWK]UMV\IZa ÅTU IVL
photo series, accessible on a website
called smallbusinessrevolution.org, that
celebrated the company’s 100 years in
business with the stories of 100 small
businesses and rolled the content out over
the course of a year.
That approach allowed her to attract
attention on national, regional, and local
levels. According to Brinkman, Deluxe
Corp. recently reached 1.3 billion impressions, including everything from articles to
social shares. “We’ve had over 430 stories
written about the small business revolution,” she says. “There’s no way we would
have attracted that much coverage if we
were just promoting the fact we were turning 100 and doing it the usual way.”
Ultimately, however, it all comes down to
keeping one’s nose to the proverbial
grindstone. “If you know you’re going to
be outspent by competitors, you need to
raise the bar on your creative,”
Smith
says. “You just have to work harder.”
SPECIAL SECTION
TELEVISION’S
HOLY
GRAIL
MOMENT
CLOSING THE LOOP ON LINEAR
TELEVISION ADVERTISING, FROM
IMPRESSION TO IMPACT
BY
PETER
GIORDANO
ANA.NET //
9
TO
SET THE
STAGE,
[WUM NIK\[ IVL ÅO]ZM[ IJW]\ \MTM^Q[QWV" 3IV\IZ
Media puts 2015 television ad spend at $70 billion.
According to Nielsen, the average adult watches 36
hours of TV per week, and Millennials spend as
much time watching television as they do using all
digital devices combined. Still, when one starts
entering the phrase “Is TV advertising …” into a
Google search, the suggested autocompletes are
¹[\QTTM‫ٺ‬MK\Q^Mº¹LMILºIVL¹LaQVOº
Why are the prevailing opinions of
television and the reality of TV advertising and TV consumption so at odds with
each other? Sure, there is chatter about
KWZLK]\\MZ[_Q\P6M\ÆQ`)UIbWVIVL
Hulu disrupting the ecosystem that has
been a walled garden for decades, but
television also has never been so popular,
and the medium is arguably having a
Golden Age.
While providers of on-demand streaming grow in usage, they are not entirely
ad supported, and that’s an important
consideration for marketers. The consumer may be winning, but the marketer
cannot take advantage of this growth. As
with anything, innovation must come to
linear — traditional time- and channelbased — television for it to stay relevant
and competitive. Television advertising
needs to evolve and take a page from the
digital playbook
by adapting to new
\MKPVWTWOa ][QVO LI\I IVL ÅVLQVO \PM
right consumers.
If television content is experiencing a
Golden Age, then the advertising medium is ready for its Holy Grail moment as
well. The data and technology are here,
IVLQ\Q[ÅVITTa\QUM\WUISM\PMU_WZS
for marketers.
10
// ASSOCIATION OF NATIONAL ADVERTISERS
TV ADVERTISING
THEN AND NOW
TV viewers are out there, but they are no
longer all in the same place. The days of
the big three networks are long gone.
<_MV\aÅ^MaMIZ[IOW\PMJITIVKMJMtween a given TV advertising campaign’s
reach and frequency was fairly equal, ensuring wide reach without oversaturating
any particular segment. Today, most campaigns tip heavily toward frequency, leaving many brands’ potential consumers on
the table because their TV viewing habits
have eclipsed the status quo buying methods. According to Nielsen data, to deliver
100 gross rating points (GRPs) in 1991 to
1992, the four major broadcast networks
combined needed to serve 58 ads. In 2013
to 2014, those networks had to serve 170
ads to deliver the same 100 GRPs. The
top-rated show 20 years ago was Seinfeld,
averaging a 15.7 rating among 18- to
49-year-olds in 1995. For the 2014/2015
season, Sunday Night Football ruled with only
a 7.3 rating in the same age group.
In 2014, according to data from Nielsen and Kantar Media, 50 percent of all
TV ad dollars were spent on 11 networks.
Those 11 networks delivered 27 percent
of TV viewers, meaning half of all TV
ad spend — $35 billion — delivered
less than one-third of all available
viewers. And in general, according
to Simulmedia’s VAMOS platform,
75 percent of a given advertiser’s
impressions only reach 40 percent of
the target audience.
In the age of digital accountability, it seems strange that the behemoth of advertising spend is still
governed by GRPs, the most archaic
of metrics. It’s time for that to
change, especially since the advantages of television are alive and well.
For example, The Big Bang Theory generI\M[ UQTTQWV IL UQV]\M[ XMZ ÅZ[\Z]V
episode, while all the content on YouTube
combined yields only 28 million premium
ad minutes per week, according to a 2014
report by RBC Capital Markets.
DIGITAL APPROACH
TO TELEVISION
PLANNING
For quite some time digital advertising has,
by and large, abandoned homepage takeovers and contextual buying in favor of
audience targeting. Now that television
has an abundance of channels, viewers
are equally as fragmented and scattered
as they are on the web.
Sophisticated data methods can now
tie set-top-box viewing data to Nielsen
data, panel data, survey data, and other
behavioral and psychographic data sets.
/ZIV]TIZ I]LQMVKM XZWÅTM[ KIV JM KWVstructed, and most importantly, their behaviors can be tracked, analyzed, and
predicted. This means that advertisers
can make better, more informed assumptions than they previously could about
where viewers are, and ads might be
UWZMM‫ٺ‬MK\Q^MW]\[QLMWN \PMKWV\M`\]IT
SPECIAL SECTION
environments that have historically ruled
the TV roost.
Advertisers have invested heavily in
building up robust CRM databases for
all other channels; if that data can be
matched to television data, then it can be
used for TV planning as well. Modeling
the behaviors of all these segments can
steer future placements to reach current
and potential customers through television. Whether an advertiser’s objective is
new customer acquisition or increased
engagement from existing customers,
these segments can all be activated on
linear television by using data.
PROVING TV’S
SALES IMPACT
Many TV marketers know the number of
GRPs they need to run every week, and
they know their sales will dip if they pull
back. But do they really know exactly
what television is doing for them? The
challenge has been matching a TV exposure to a sale on another platform. Until
ZMKMV\Ta\PMTQVSJM\_MMV<>IVLW‫ټ‬QVM
sales remained elusive. It’s now possible to
directly match what a consumer sees with
what he or she buys. Through set-top-box
data, viewing behavior can be matched —
in a privacy-compliant way — to an
IL^MZ\Q[MZ¼[ ÅZ[\XIZ\a +:5 LI\I WZ
third-party credit card and transaction
data to see if the person who saw an ad
subsequently took an action. The ability
to do a direct match — not with fusions or
lookalike models of the past — can disclose whether someone saw a TV ad and
then made a transaction during whatever
\QUMXMZQWL\PMIL^MZ\Q[MZQLMV\QÅM[I[\PM
window of attribution. Therefore, the total revenue attributed to television can be
compared to the TV budget in order to
establish a true return on ad spend.
With the ability to see all TV viewing
data, and all transaction data, this type of
Q& A
Q. How do you see data integrations enQ. How has the connection of online and
tering the TV advertising ecosystem?
offline data evolved in the past few years?
A. What may be the most interesting and
A. The initial scenarios were mostly about
with Alexander Hooshmand,
immediate opportunity is closing the
connecting third-party offline data to the
vice president of product
loop on the ROI impact of TV advertising.
desktop display ad channel. More refor the Oracle Data
Other opportunities include using online
cently, there has been an explosion of
Management
Platform
and offline data for targeting of TV ads,
both offline data sources (such as CRM
or using TV data for targeting in digital.
data and purchase data), and destination channels, where the data is used
Q. Is this data-driven, targeted approach
(such as social, mobile, and search).
Once the connection is made, the data is used not only for to television here to stay?
targeting but also for closing the loop between advertising A. Absolutely. The long-term trend in advertising has been
and results in different channels. For example, did my online toward more data, targeting, and accountability. Recent deads increase my store sales? Did my TV ads increase my velopments in TV are inline with overall marketing trends and
e-commerce revenues? We believe that making this connec- should only accelerate as the worlds of linear and digital TV
start to merge. Scaling all of this will be the next challenge.
tion is a core part of how we add value for our clients.
Q. What are your clients looking for in terms of accountability
in their overall marketing spend?
A. Prior to the last three to four years, most clients were focused on the challenge of tracking marketing ROI across a
single channel. In the last few years, the focus has squarely
shifted to tracking results over multiple, if not all, marketing
channels. Additionally, interim metrics (such as viewership
and clicks) have been de-emphasized in favor of direct ROI
and sales metrics.
Q. What excites you about the ability to connect digital metrics with linear TV advertising?
A. What is most exciting is the sheer magnitude of the opportunity for clients to improve their marketing results. We are
just starting to scratch the surface in terms of bringing some
of the capabilities discussed above to bear on the TV advertising market. In a way, it’s like creating a whole new ad
channel the size of the entire digital ad market today.
— P.G.
ANA.NET //
11
analysis is not limited to only those customers who made transactions. It’s possible to discern who saw an ad, who did not,
who made a purchase, and who did not.
By comparing those four groups, one can
determine who made a purchase without
[MMQVOIVILIVLÅVL\PM\Z]MQVKZMUMV\IT
lift of TV advertising.
This type of insight begets a fundamental shift in how marketers think about
their TV spend, transforming it from a
VMKM[[IZaM^QTQV\WIXZW^MVXZWÅ\KMV\MZ
<PMZM IZM \PZMM [QOVQÅKIV\ QUXTQKItions that come from television’s closed
loop reporting:
1. Competitive Market
Intelligence
Every brand’s campaign can be evaluated
by matching television viewing data with
third-party credit and debit card data.
Advertisers can see how they are stacking
up against the competition, and who is
stealing more share.
CHART 1 September 2015 Total TV Campaign Reach for Competing Brands A and B
Target: Adults 18-plus
Unique reach by
Brand A
Brand A
126 Million
18 Million
126 Million Brand A
campaign reach
90 Million Brand B
campaign reach
98 Million Available
shoppers
Duplicated reach
25 Million
98 Million
5 Million
Brand B
90 Million
Unique reach by
Brand B
source: 2015 Simulmedia’s VAMOS Platform
CHART 2 Attributable Purchases by Cost Per New Seasonal Customer
Target: Adults 18-plus
Existing seasonal
customers
New seasonal
customers
Cost per new
seasonal customer
$80
1.4M
$67.52
1.2M
$60
25%
1.0M
$50
800K
$40
600K
$30
$21.09
$20
400K
200K
$10
18%
Brand A
note: rounded values displayed
source: 2015 Simulmedia’s VAMOS Platform
12
$70
// ASSOCIATION OF NATIONAL ADVERTISERS
Brand B
Cost Per New Seasonal Customer
Number of Attributable Purchases
1.6M
For hyper-competitive categories, the
majority of advertising spend goes toward keeping up with the competition
and staying top of mind, and true sales
are often impacted only at the margin.
This type of granularity can allow advertisers to track their performance against
the rest of their category, and ensure
they are staying competitive. (See charts
1 and 2.)
2. Campaign Insights
On an individual campaign level, there
IZM XTMV\a WN IL^MZ\Q[MZ[XMKQÅK QV[QOP\[
that can enable future optimization toward the best business return. This reporting can include metrics like conversion
rate, average basket size, frequency impact, lift from exposure, and cost-per\ZIV[IK\QWV<PMZMIZM[M^MZIT[QOVQÅKIV\
applications of these learnings:
• Targeting. Because the nature of linear television is such that an ad reaches
people both in and outside of a desired
target, it’s possible to measure the impact that it had on everyone. Marketers
can discern which people are responding better than others. If an advertiser
sees that custom segment X is generating twice the return for half the investment, compared to its primary target
custom segment A, the next campaign
can be better optimized toward those
most responsive customers.
Œ +ZMI\Q^M M‫ٺ‬MK\Q^MVM[[ Major national advertisers are often running multiple creative pieces simultaneously, and
the impact of each one can now be separated. Return on ad spend by creative
and by customer type allows a marketer
to see which creative piece is working
and what message is driving business.
• Flight optimization. These insights
can be drilled down to the spot level, so
ÆQOP\ TMVO\P IVL UMLQI _MQOP\ Ja LIa
and daypart can all be attributed back
to sales.
Some advertisers have seen that daytime ads tend to drive the highest spend,
Q& A
SPECIAL SECTION
Q. How do you see television advertising
Q. How would you describe your relaand, more specifically, your TV strategy
tionship with television advertising, and
changing in the next year?
what’s your opinion of it?
A. We are moving toward thinking about
A. It’s the Golden Age of TV content but
with Yin Rani,
vice
president
of
marketing
video across screens. TV is still critical
not the Golden Age of TV advertising.
activation at
to drive reach broadly, as we seek to reThe variety of screens that matter no
Campbell Soup Co.
frame some of our core brands, and conlonger resides in the living room only.
tinue to launch new products and
Digital channels can now deliver sight-,
platforms. However, it is being complesound-, and motion-driven content by
mented by video on other screens that
repurposing TV conventions of brand
benefits, emotional power, and reach, but also a wider variety is more targeted and adjusted to different lengths to fit the
of video-based content like instructional content, entertain- platforms. The company is significantly stepping up its investment, and user-generated content — with many of the target- ment in digital media this year, which will shift to be around
ing and optimization capabilities that digital has taught the 40 percent of the media buy, up from 22 percent last year —
with a significant amount of video within digital channels.
industry to expect.
At Campbell’s, mass channels like TV play an important
role in awareness for our brands, but not every campaign has Q. As a marketer, what excites you about the future of
it as the core or sole objective. The distinction between TV, television?
digital, and not-digital will get increasingly blurry, so we con- A. I think TV is on the verge of a major marketplace disruptinue to focus on the optimal touchpoints along a multichan- tion that will better mirror consumers’ expectations and behaviors. TV content has never been more compelling and
nel consumer journey.
competitive, but there is also an insatiable appetite for other
kinds of content that entertain, inform, and engage. The goal
Q. Is this data-driven, targeted approach to TV here to stay?
A. The data-driven targeted approach to TV is not only here to for TV advertising content is similar to all other kinds of marstay, but long overdue. Marketing investment is becoming keting — to be useful and entertaining enough to earn attenincreasingly data-driven and it’s necessary to optimize every tion and be shareable and “unskippable.” The challenges for
dollar spent — so given the magnitude of the TV market- the industry are tremendous, but I believe we are ripe for the
place, the channel needs to be at least as accountable, if not opportunities to raise the bar on creative content and customized targeting.
— P.G.
more so.
or that weekends perform twice as well as
weekdays. These insights can inform fu\]ZMÆQOP\QVOUISQVO\MTM^Q[QWV[KPML]TM[
responsive to real business outcomes.
3. Brand Impact
<PM JMVMÅ\ WN ZWJ][\ K][\WUMZ IVL
sales data is the ability to look beyond
the aggregate transaction and actually
see inside the consumer’s basket, and
see how its contents tie back to the television ad the consumer saw.
As an example, think about the implications for a big box retailer. A cobranded creative spot for a toothpaste
brand can be tracked to not just the
store’s total sales, but also to the sales of
\PI\ [XMKQÅK JZIVL <PM QUXIK\ WN \PM
ad can also be tracked against sales of
\WW\PJZ][PM[ÆW[[IVL[]OIZNZMMO]U
The co-marketing insights give both
brands and retailers valuable knowlMLOM IJW]\ \PM JZWILMZ ZQXXTM M‫ٺ‬MK\
their television ads have on sales.
unclear on its evolution and its true impact on their company’s bottom line.
With data advancements and technology
evolutions tying exposure and purchase
data together, the gap between cause and
M‫ٺ‬MK\Q[[PZQVSQVO<MTM^Q[QWVQ[ZMILaNWZ
its real Holy Grail moment
— one
where advertising on screens is understood as a truly predictable, powerful,
IVLXZWÅ\IJTMUIZSM\QVOKPIVVMT
KKKKKK
Most marketers still agree on the power
of television. However, they might be
Peter Giordano is the vice president of marketing
at Simulmedia. You can reach him by email at
peter@simulmedia.com.
ANA.NET //
13
STROKE OF
nnovative ideas for out-of-home advertising often take the shape of massive digital displays
and interactive billboards. And rightly so, as an
QVKZMI[QVOV]UJMZWN JZIVL[IZMÅVLQVOKTM^MZ
ways to go beyond a large-scale static image. At
a time when digital continues to dominate marketing,
outdoor advertising has managed to remain relevant:
According to Kantar Media and the Outdoor Advertising Association of America, ad spend on out-ofhome advertising grew 3.8 percent year-over-year in
9IÅVIVKQITY]IZ\MZ_PMZM\W\ITIL[XMVLQV
the U.S. was down almost 7 percent.
For many, the key to this continued success is in the
introduction of digital elements to traditional outlets.
;WUMW\PMZ[\PW]OPPI^MTWWSMLMT[M_PMZM\WÅVLQVnovative solutions. In the past few years, more and more
brands have taken to commissioning hand-painted mural ads,
not only because of their aesthetic appeal,
but because of the human element that a billboard,
interactive or not, can’t provide.
THE ART OF
TRANSFORMATION
Up until a few years ago, hand-painted billboards had
stopped being a popular option for advertisers. “At
ÅZ[\\PMaLQLV¼\IXXMIT\WJZIVL[º[Ia[8I]T4QVLIPT
who co-founded the New York–based hand-painted advertising company Colossal Media in 2004 with his
partners Adrian Moeller and Patrick Elasik. “Hand
painting came with a stigma that the process was complicated and the work was inconsistent. And, to be
honest, there was a point in time where that was true.
… We’ve had to convince people that there was a value
beyond just the actual execution.”
The process hasn’t been easy, but Lindahl and artists like him have worked hard to change that negative
perception. The biggest challenge used to be trust, says
14
// ASSOCIATION OF NATIONAL ADVERTISERS
Brands are turning to
old-fashioned, handpainted murals to
connect with consumers
By Urey Onuoha
Lindahl, especially when dealing with photorealistic
creative. “It used to be a scary thing for brands to hand
over their creative and hope that we can recreate it by
hand, with precision, without imperfection,” he recalls.
*]\_Q\P\QUM+WTW[[ITMIZVMLKTQMV\KWVÅLMVKM<PM
company’s success is evident in the number of murals
it executes. “These days we’re producing more than
400 murals a year from New York to L.A.,” he says.
For Don Rockwell, this change in trust also rings
true. As founder of Seattle-based Rockwell Outdoor
Advertising, he used to spend a lot of time selling busiVM[[ \W KTQMV\[ J]\ VW_ PM ÅVL[ \PMa IXXZWIKP PQU
ready to make a purchase. “Most often, they already
know us by reputation and they’ve seen our portfolio
online,” he says. “So what they want when they call is
\WÅVLW]\_PI\_MKIVLWNWZ\PMU[XMKQÅKITTaº)Tthough brands still deliver creative to be recreated,
they also trust the artists to be able to design pieces, or
W‫ٺ‬MZQVX]\WN PW_JM[\\WUWLQNaKZMI\Q^M\W[]Q\\PM
somewhat unique format of hand-painted walls.
One of the biggest selling points for brands is the
connection with consumers who see the mural at every step of its development, from its creation to completion. “Brands know that this type of thing attracts a
lot of attention, not just when the ad is up, but during
the process,” Rockwell says. Each ad takes between
two to four days to complete and creates a buzz in the
neighborhoods where they go up. Lindahl
also sees the performance aspect as an
advantage. “We believe that there is a life,
a performance, and a story being told on
each project while it unfolds,” he says.
.M_JZIVL[PI^MZMIXML\PMJMVMÅ\WN this performance as much as Snickers,
whose mural earlier this year went on to
win two Bronze Lions at Cannes. In looking for a teaser for its Super Bowl XLIX
spot, part of the “You’re Not You When
You’re Hungry” campaign, the brand
found that it could tell its transformation
story perfectly through a hand-painted
ad. The idea to run a spot around The
Brady Bunch was set and the brand knew
that having a successful ad in the game is
just as much about what happens leading
up to the game as it is about the ad itself.
“We had two teaser campaigns — the
mural and an online video,” says Allison
Snickers used a hand-painted mural that went through several transformations to tease its Super Bowl XLIX spot.
ANA.NET //
15
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16
// ASSOCIATION OF NATIONAL ADVERTISERS
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#ANALYSIS
Sign of
the Times
THE NUMBER OF MOBILE
phone users in 2016 will grow to 4.6
billion, according to eMarketer —
that’s 61 percent of the world’s population — and nearly half of them will
be using smartphones. For marketers,
the text message is on the wall: Mobile
marketing is here and it’s critical for
brands to up their game. To do that,
brands need to adopt the language
of mobile, which, increasingly, is written in emojis,
those small pictographs that come programmed into
device keyboards.
Some brands have already begun
playing with emojis, including them
in email subject lines, or if you’re
Domino’s, letting consumers place a
delivery order just by tweeting the pizza emoji. In September, Verizon did
something similar to heighten awareness for its new brand identity, sending
cheeseburgers to consumers in select
cities who tweeted at the brand with a
burger emoji. (In full disclosure, I got
one of those burgers — it was delicious.) And IHOP, which hadn’t updated its logo in more than 20 years,
debuted a new one this past June that
features a smiley face.
But it’s not always about food. At
the 2015 ANA Masters of Marketing
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talked about GE’s Emoji Table of Experiments (emojiscience.com), which
uses emojis to explain science in a way
that’s approachable and will engage
tomorrow’s scientists and engineers.
Clearly, emojis are already at work
in B-to-C and B-to-B, and understanding them will be a big thumbs up for
marketers.
— Andrew Eitelbach
ANA.NET //
17
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