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The session will start in a few minutes.
#AdvProfitability
Maximize Brand Impact
to Create Value
Special Event – IAB Forum 2020
November 10th 2020
#AdvProfitability Maximize Brand Impact to Create Value November 10th 2020
Your speakers today
You can submit your questions, if any, via mail to: roberto.rossi@kantar.com – subject: IAB 2020
We’ll answer your questions in the last part of the session, or will follow up via email in the next days
Roberto Rossi Julia Nikolaeva Fabio Da Col
Head of Media Head of Media Head of Unit Finance, Tech, Communication, Utilities
Kantar - Insights Division Kantar - Insights Division Kantar - Insights Division
Italy Continental Europe Italy
3
#AdvProfitability across
channels | Think people first!
Roberto Rossi
Head of Media
Kantar - Insights Division
Italy
4
An accumulation of short-term effects does not translate into higher brand affinity
and profitable growth potential
Market Spending Base Sales
Year 1 Year 2 Year 3 Year 4 Year 1 Year 2 Year 3 Year 4
Performance Brand building brands 5
Advertisers are confident in strategies for building brand equity, but balancing short-term
and long-term is not as straightforward
How confident are you that your org… (Net positive | Advertisers)
Italy Global
55
44
22
12
Has marketing strategies that build brand equity Has balance between brand building and performance marketing
Source: Kantar Media Reactions 2020 survey of global marketers
6
According to Italian marketers, budges are too much driven by short-termism, and this
tendency has increase over the last 3 years
How do you feel about the % of investment dedicated to long term activities? How has the balance between short-long term changed in the last 3 years?
Italy Italy
1% Long term %
25%
has increased
Too high
43%
Short term %
45% OK has increased
54% Too low
32% No change
Source: Branding e-volution survey of Italian marketers, UPA (2020) 7
There are many factors that impact media budget allocation
Italy Global
Easily measurable ROI 50% 48%
Appropriate for campaign objectives 47% 55%
Consumer receptivity to brand content 43% 56%
Cost/budget 42% 24%
New/innovative 36% 42%
Consumer preference 35% 43%
Highest conversion rates 33% 50%
Past success 19% 16%
Our management trusts/prefers 13% 34%
Source: Kantar Media Reactions 2020 survey of global marketers, n=581 8
A minority of touchpoints deliver the majority of impact – so which should a brand focus on?
20% 80%
of touchpoints impact
Source: global Connect database, Kantar 9
Consumers prefer offline media channels, whereas
marketers’ top choices are online
There’s a #receptivity gap
Global preference Consumers Marketers
1 Cinema ads Online video ads
2 Sponsored events TV ads
3 Magazine ads Social media news feed ads
4 Digital OOH ads Streaming TV ads
5 Newspaper ads Social media stories
Source: Kantar Media Reactions 2020 10Offline media channels’ ad equity is higher among consumers
Fun and
entertaining
Relevant
Better quality
and useful
Trustworthy Innovative
Offline Channels
Online Channels
Excessive Too much
targeting advertising
Repetitive Intrusive
Dull and
boring
11However, not all online channels have such negative
perceptions among consumers
Global ad equity ranking Within online channels
1 Influencer branded content
2 Podcast ads
3 Streaming TV ads
4 Online display ads
5 Social media story ads
Source: Kantar Media Reactions 2020 12Both consumers and marketers prefer online platforms,
with consumers leaning towards the newer ones
Global preference Consumers Marketers
1
2
3
4
5
Source: Kantar Media Reactions 2020 13Try to ensure that no media commands more than 50% of spend:
TV is more likely to be cost-effective at lower share levels than digital
% of campaigns which are cost effective by share of spend
Up to 30% share of spend 30%- 50% share of spend 50%+ share of spend
TV 75% 55% 27%
Digital 64% 43% 13%
Source: Kantar CrossMedia database 2019
Number of campaigns for TV: 55 / 99 / 444 14
Number of campaigns for Digital: 449/ 98/ 67COVID-19’s impact on digital spend is here to stay, with the increase expected
to be even higher in 2021
Changes in budget/resource allocation (% net +ve)
Italy | Covid-19 Italy | 2021
63
55 54
46 44 44 46 46
41 38 41 36
27 26
9 12
5 7
1 1
Ads in social Online Branded Ads in Ads in TV ads Online display TV ads
media stories video ads content online social media podcasts on streaming ads (images + -5 -7
by influencers news feeds text)
Radio TV program -16
Ads sponsorship -24 -27
-33 -31
-39
-45 -45 -47
Digital Magazine Outdoor ads Newspaper Events
outdoor ads ads (posters) ads sponsored -65
by a brand
Cinema ads
(before
movies)
Source: Kantar Media Reactions 2020 survey of global marketers
COVID-19 impact: Due to the impact of COVID-19-19, have you changed your budget and/or resources for the following channels to…?
2021 impact: In 2021, do you expect your budget and/or resources for the follow ing channels to…? 15
Response options for both questions w ere increase/ stay the same/ decrease. Figure show n is the difference between “increase” and “decrease”.Both digital and TV have shown positive short-term ROI figures in the recent years
Radio also stands out, though with smaller investment share
avg Direct ROI (past 3 years)
4.78
3.97
1.99
1.74
0.81
0.39
0.17
TV Digital OOH Print Radio Others Total
Source: Kantar TMROI database 16Short-term ROI figures are dropping across time, while the only exception is TV,
due to the decrease in investment that this media has faced in the recent years
ST-ROI ACROSS TIME
5.01
4.55
3.97
ROI ($/$)
1.59 1.99
1.74
2011 2013 2015 2017 2019
Source: Kantar TMROI database Radio Print Digital Total St. OOH TV Othes 17Larger brands obtain higher ROI – leveraging a higher predisposition level
avg Direct ROI (past 3 years) per brand size
7.14
5.89
3.51
2.96
2.16
1.92
1.05 1.12
0.59 0.47
0.17 0.36 0.28
0.00
TV Digital Print Radio OOH Others Total
Source: Kantar TMROI database Large brands Medium/Small brands 18It is not a matter of ‘either / or’ it is all about ‘balance’
Short term Long term
ꟷ leverage sales fast ꟷ demands time to leverage sales
ꟷ accurate to target ꟷ difficult to track and measure
ꟷ cheaper and good ROI
ꟷ pay per performance It ensures future and sustainable demand
ꟷ easy to track and measure
19Balancing channels to optimize your short & long term strategy
Effectiveness index
TV/OLV 2,2x
Social 2,8x
Sponsor
Short Term PR Long Term
1,9x Print
OOH 3,4x
2,5x Radio
Search
3,1x
Trade
6,7x
20#AdvProfitability across channels | It’s all about people!
Key takeaways
Receptivity Short & Long: Orchestrate
matters! better together channels
21Why context is crucial
to improve #AdvProfitability
Julia Nikolaeva
Head of Media
Kantar - Insights Division
Continental Europe
2216%
Online Video is less effective than
TV when high campaign spend
Case study: Agile Budget Allocator, FMCG, Russia
23What factors lie beneath the effectiveness of channels?
Brand Impact and Campaign Effectiveness
24Integrated campaigns are more effective globally and channel customisation further
improves impact
Overall campaign contribution by campaign type
157
131
100
Not well integrated Integrated – similar ads, Integrated AND
but NOT well customised most media were
to individual media customised well
Base: (57) (64) (102)
Data Source: Kantar global CrossMedia studies 25Nike – Spark Brilliance in Turkey is a well integrated and customized campaign
Technology-driven campaign integration ensures that different screens and different media channels
tell a seamless, connected story
Mobile 3D experience Online 360 experience TV advert
26Marketers agree that custom content is important, but need to better understand context
Digital measurement is a challenge
64% 32% 81%
of marketers say it is important to of advertisers are not confident that their of marketers say it’s tough to assess
develop custom content today organisation understands the impact digital channels given blind spots
of context on creative executions in measurement
Source: Kantar Getting Media Right 2019 survey of global marketers 27Video platforms have different requirements to social platforms
Online setting Online setting
A mission based mindset while A personal and social environment
waiting for content to play with many distractions
Considerations Considerations
Positively engaging with enjoyable Content which makes people stop
content is important to delay and look
the skip
28You can’t assume all ads will perform equally well in all digital formats
Smart For Four
“Reverse Parking”
UK
Pre Roll Social
Context Context
Impact (Percentile) 77 57
Played whole ad 63% 24%
73% 32%
Average of ad viewed
23 sec 10 sec
29If you get it wrong, your digital campaign could have a negative impact on the brand
% difference Exposed versus Control
9.9 9.5
2.1 1.8
-4.6 -4.8
Brand Favorability Purchase Intent
Best (top 20%) Average Worst (bottom 20%)
Source: Kantar global Brand Lift Insights Marketnorms database (19,060 campaigns), Nov 2019 30Both YouTube and Facebook outperform norms. YouTube is particularly strong at driving
Awareness and Message allocation, and FB on Brand Favourability
Online Ad Awareness Message Association Brand Favorability Purchase Intent
YouTube Facebook Average
Source: Kantar Global Market Norms Database 2019, n=16,075 studies 31You might be surprised: the best context is not always the one you’d expect
Testing theories can ensure you’re getting the most from your media investment
Source: Airbnb and Teads 32Optimise your digital placements to improve campaign effectiveness in 72 hours
Now you can test how your digital
ads perform in different media contexts
with Context Lab solution accessed via
Kantar Marketplace.
Our realistic testing will recommend the optimal
contexts to drive your brand through digital,
sometimes before it has even run, and compare
between platforms for greater success.
33#AdvProfitability
The power of TikTok
Fabio Da Col
Head of Unit Finance, Tech,
Communication, Utilities
Kantar - Insights Division
Italy
34Award
35Ads on TikTok are the top choice for consumers: they are more fun, entertaining
and innovative than other media brands, and perceived advertising volume is currently low
Fun and
entertaining
Relevant and
Better quality
useful
Trustworthy Innovative
Average
TikTok
Excessive Too much
targeting advertising
Repetitive Intrusive
Dull and
boring
Q. Which of these formats of advertising do you think…?
Base: Exposed to advertising on channel // *Average is an average of the 13 multi-market (mainly digital) brands included in the study 36
Source: Kantar Media Reactions 2020What we did
To understand the impact of user-generated content (UGC) on TikTok and how to get it right
Expert Interviews TikTok Hashtag Challenge Kantar TGI Global Quickview
37What is the
secret sauce?
38The 10 Truths for Driving Breakthrough, Brand-Building UGC at Scale
Practical and actionable guidance
Truth 1 Truth 2 Truth 3 Truth 4 Truth 5
TikTok, it’s just different Creators are Music hits the right key Simple is best Allow users creative
the foundation freedom
Truth 6 Truth 7 Truth 8 Truth 9 Truth 10
TikTok may shorten The TikTok audience is Link Branded Hashtag Use TikTok as part TikTok is for all brands, in
the funnel broader than you think Challenges to offline / of the marketing every category
online events ecosystem
Full deck available here Kantar/The-Power-of-TikTok
https://www.kantar.com/uki/inspiration/advertising-media/The-power-of-TikTok
39Truth 5 – Allow users creative freedom
Be prepared to let go, pass the torch
“ There's a willingness to participate with
brand activity on TikTok that isn't seen
”
as much on other platforms.
Lewis Steele
Head of Social and Content, Connecting Plot
40Truth 6 – TikTok may shorten the funnel
Great creative UGC is helping to drive brand value from awareness to intent
Uplift on brand KPIs
TikTok Kantar norm
5.1
4.6
3.4
3.2
2.8 2.8
1.8 1.8
Aided Brand Awareness Message Association Brand Favourability Purchase Intent
Source: Kantar Brand Lift Insights norms used as a benchmark comparison versus 24 Kantar-measured TikTok campaigns
TikTok Survey Sample Size (test: 95.1k, control 79.9k) 41Truth 7 – The TikTok audience is broader than you think
And it varies across regions and markets
% of TikTok Users Aged 25+ by Region
25-34 35+
43%
34% 35%
32% 32% 32%
30% 31%
28% 28%
19% 20%
Global North America LATAM APAC EMEA Nordics
25-34 35+
Source: Kantar TGI Global Quickview , 2020. Sample: 60,000 connected consumers. Read: 32% of Global TikTok users are aged 25-34 42Truth 9 – Use TikTok as part of the marketing ecosystem
Simple. Branded Effects. Creator Led = Extend TV to engage harder to reach audiences
The results
The increase from other sports was
immediate with the campaign exceeding
all KPIs.
Over 13 million video views
22,000 comments
43Truth 10 – TikTok is for all brands, in every category
Brands will need to invest more in creative curation
“ I think TikTok is suitable for almost
any brand.
”
Peter Petermann
Products and services our experts said are either enjoying success
with TikTok or ought to be considering using the platform:
Beauty / Personal grooming Clothing / fashion Sports goods
Chief Strategy Officer,
Wavemaker Soft drinks Fast food Candy, cereals, snacks
Household products OTC Medication Music labels and Artists
“
Movies Entertainment Baby care
All brands that are active in social
media should include TikTok as part Toys Education / learning Telco’s
”
of their marketing mix.
Mobile (Cell) phones Apps
Beckie Turnbull
Social Media Manager
PrettyLittleThing
44Key questions to ask to improve Three things to remember…
#AdvProfitability…
A. 1.
Am I developing the right creative and It’s all about people
media plan?
B. 2.
Which touchpoints have the greatest Media is not straightforward
impact and how do they work together?
C. 3.
How do I optimize my media mix Context is key
across channels?
45Thank you! Q&A
You can submit your questions, if any, via mail to: roberto.rossi@kantar.com – subject: IAB 2020
We’ll answer your questions in the last part of the session, or will follow up via email in the next days
Roberto Rossi Julia Nikolaeva Fabio Da Col
Head of Media Head of Media Head of Unit Finance, Tech, Communication, Utilities
Kantar - Insights Division Kantar - Insights Division Kantar - Insights Division
Italy Continental Europe Italy
46#AdvProfitability Maximize Brand Impact to Create Value Roberto Rossi Head of Media, Italy Roberto.Rossi@kantar.com
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