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Wir bewegen Marken
November 2014
THE ROI FROM TV ADVERTISING
Fundamental insights into the sales-promoting effect of TV
ROI
ANALYZER
CONTENTS
03 Editorial
04 Problem to be solved
The brand is king
08 Methodology
Long-term vs. short-term impact
18 Basic findings
Cha-ching!
22 Umbrella brand effects
Is a little extra OK?
26 Merchandise categories
Apples or oranges? As long as it’s fruit!
34 Campaign strategy
Sliced or whole?
40 Retail stores
The bill is right
48 Documentation of methodology
Not just bean-counting
62 Validation
No complaints
EDITORIAL
Dear readers,
In today’s fragmented and complex digital media world, the question
of advertising effectiveness is more important than ever.
Wir bewegen Marken November 2014
CONTENTS 03 Editorial 04 Problem to be solved
EDITORIAL Dear readers, In today’s fragment
investment (ROI). ROI is the most precise indicat
PROBLEM TO BE SOLVED 4 PROBLEM TO B
THE VALUE OF ADVERTISING It pays to invest in TV
70 PERCENT OF SALES ARE TO FIRST-CHOICE BUYERS T
ADVERTISING CREATES LOYALTY Another GfK study fo
METHODOLOGY Long-
LONG-TERM DRIVERS OF MARKET SUCCESS ARE DECISIVE
ANALYSIS OF A BROAD DATA BASE The ROI Analyzer m
DATA BASIS AND MODELING FOR THE ROI ANALYZER Data
BRAND LOYALTY AS THE KEY VARIABLE So-called “loy
MARKET SHARE, SALES ATTRIBUTABLE TO PROMOTIONS AN
MODELING THE ADVERTISING EFFECT FOR A ONE-YEAR PE
Regression model Simulation of purchases i
These two paths yield different numbers of purcha
ROI UMBRELLA BRAND ROI BRAND
BASIC FINDINGS Cha-ching! M
TELEVISION ADVERTISING PAYS OFF Our findings are
20 BASIC FINDINGS
WIDE RANGE OF ROI VALUES The sales effect of adv
UMBRELLA BRAND EFFECTS Is a
UMBRELLA BRAND EFFECTS OF ADVERTISING First, the
STRONG SPILL-OVER EFFECTS The average results fo
ROI UMBRELLA BRAND ROI UMBRELLA BRAND ROI BRAND
MERCHANDISE CATEGORIES Apple
The question of whether or how often a consumer p
ADVERTISING PAYS OFF FOR PRODUCTS IN ALL MARKET S
SHORT-TERM BRAND ROI BY
VARYING LOYALTY LEVELS IN THE MERCHANDISE CATEGOR
PURCHASE PROBABILITIES BY LOYALTY LEVEL AND MERCH
The models employed for calculating ROI also reve
In summary, we can note that brand loyalty is the
CAMPAIGN STRATEGY Sliced or
The success of the campaigns studied in the ROI A
A somewhat different result is produced when we c
DISTRIBUTION OF ADVERTISING INVESTMENTS The next
CAMPAIGN PRESENCE AND PERCENTAGE OF LOYAL BUYERS
TOTAL ROI BY NUMBER OF ADVERTISING THEMES EMPLOYE
RETAIL STORES The bill is r
RETAIL STORES AS ADVERTISERS Retail stores play
MODEL EXPANSION The dependent variable in this e
RETAIL STORES 43
TV ADVERTISING PAYS OFF FOR RETAILERS We analyze
ROI OF FULL-RANGE RETAILER
SUMMARY OF FINDINGS, OUTLOOK As the marketing ar
than 40 percent of total ROI. This is an importan
DOCUMENTATION OF METHODOLOGY
In the Methodology section at the start of this b
MERGING THE DATA In general, data merging refers
By contrast, specific characteristics only pertain
MERGER OPTIMIZATION No matter how sophisticated
An adjustment can be made for this measurement er
CALCULATION OF ADVERTISING EXPOSURES The P val
The P value is calculated as follows: P value of
WEIGHTING OF EXPOSURES Obviously, an advertising
At the lowest discount factor α = 1.00, advertisi
BRAND LOYALTY LEVELS Brand loyalty levels are of
EXAMPLE DETERMINATION OF MARKET SHARE All purchas
PERCENTAGE OF SALES ATTRIBUTABLE TO PRICE PROMOTI
SOCIO-DEMOGRAPHIC VARIABLES The ROI Analyzer als
VALIDATION No complaints A
VALIDATION After the advertising effectiveness m
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