The Path to Purchase Extending the Brand Through the Entire Purchase Funnel

Leadership and Marketing Excellence

OPTIMIZING DIGITAL MARKETING

SPECIAL SECTION:

CONNECTING VIDEO AD SPEND TO SALES THE PATH TO PURCHASE EXTENDING THE BRAND THROUGH THE ENTIRE PURCHASE FUNNEL

JULY 2016 CMY CY MY CM K Y M C A Leading Oral Care Brand ChallengedUsTo SELL MORETOOTHPASTE WITHVIDEO Results Speak Louder. Period. Oral_Care_ROI-ANA3.pdf 16/21/165:40PM $4.43 WE DELIVERED www.eyeviewdigital.com On Ad Spend RETURN

SHUTTERSTOCK.COM Leadership and Marketing Excellence CONTENTSJULY 2016 Board of Directors Get more out of this issue ROGER ADAMS, USAA at ana.net/julymag16, PAUL ALEXANDER, EASTERN BANK with tweets, links, video, a full PDF download, and more. DANA ANDERSON, MONDELEZ INTERNATIONAL LINDA BOFF, GENERAL ELECTRIC CHRIS BRANDT, BLOOMIN’ BRANDS ROB CASE, NESTLÉ 03 GAURAV CHAND, DELL DAVID CHRISTOPHER, AT&T CHRIS CURTIN, VISA JERRI DEVARD DEANIE ELSNER, KELLOGG SANJAY GUPTA, ALLSTATE JACK HABER, COLGATE-PALMOLIVE JON IWATA, IBM BRADLEY JAKEMAN, PEPSICO GERALD JOHNSON II, AMERICAN HEART ASSOCIATION JEFFREY JONES II, TARGET JOHN KENNEDY JR., XEROX RICH LEHRFELD, AMERICAN EXPRESS 14 KRISTIN LEMKAU, JPMORGAN CHASE CHANTEL LENARD, FORD ALISON LEWIS, JOHNSON & JOHNSON BOB LIODICE, ANA PAGE #ANALOG ROB MASTER, UNILEVER NADINE McHUGH, L’ORÉAL 02 Something’s brewing between Outlook and Starbucks; the current TONY PACE and future rates of ad blocker use in the U.S.; momondo proves MARC PRITCHARD, PROCTER & GAMBLE traveling is in our DNA; upcoming events; quick facts; and more. RAJA RAJAMANNAR, MASTERCARD TONY ROGERS, WALMART DIEGO SCOTTI, VERIZON PAGE WHAT BRANDS HAVE IN STORE JAMES SPEROS, FIDELITY INVESTMENTS 04 Thanks to new technology and the opportunities it affords brands MEGAN STOOKE, GENERAL MOTORS MARC STRACHAN, DIAGEO to reach consumers, marketers are finding more opportunities to NUNO TELES, HEINEKEN deliver messaging all along the path to purchase. // BY DAVID WARD JIM TREBILCOCK, DR PEPPER SNAPPLE MEREDITH VERDONE, BANK OF AMERICA PAGE SPECIAL SECTION: DEBORAH WAHL, McDONALD’S RODNEY WILLIAMS, MOËT HENNESSY 10 PROVING VIDEO ROI More and more, marketers need to prove business results. Now, with the right tools, marketers can connect video ad spend to // CONTRIBUTED BY OREN HARNEVO @ANAMARKETERS FACEBOOK.COM/ANA product sales. Executive Editor Production Director DUKE FANELLI FREDERICK KNECHT PAGE PULLING VALUE FROM ATM Editorial Director Publisher KEN BEAULIEU KRISTINA SWEET 14 How marketers can optimize their digital marketing through [email protected] // Editor appropriate time marketing. CONTRIBUTED BY J. R. BADIAN ANDREW EITELBACH ANA [email protected] 708 THIRD AVE., FLOOR 33 NEW YORK, NY 10017 Art Director PAGE Q&A 212.697.5950 SORAE LEE 17 NFL VP of Social Media and Emerging Programming Copyright © The ANA (Association of National Advertisers) 2016. Tom Brady on adding value to social conversations, content All rights reserved. Reproduction in whole or in part without express // BY KEN BEAULIEU written permission of the publisher is strictly prohibited. creation, measurement, and more. Opinions expressed within are not to be considered official expres- sions of the ANA. The ANA assumes no responsibility for errors or omissions appearing within. The ANA reserves the right to accept SHUTTERSTOCK.COM or reject all editorial and advertising matter. The ANA does not assume any liability for unsolicited materials. COVER ILLUSTRATION: GARY WATERS GETTY IMAGES

ANA.NET // 1 #ANALOG

TRANSPARENCY AND WHAT’S NEXT

ikely by now you’ve at least heard of the in- dependent study on media transparency that the ANA commissioned late last year. Conducted by the investigative firm K2 In- Ltelligence, the report, which was released in early June, has some serious findings. From 143 interviews and 150 individual sources, the investigation found non-transparent business practices are pervasive across the industry. K2’s research uncovered evidence of such practices in a number of media, including digital, out-of-home, print, and TV. In an internal meeting with staff, Bob Liodice, president and CEO at the ANA, said the study “is likely the most significant thing we have done as an organization.” Certainly, the report has cast a sobering light on a dark corner of the industry. A second report, based on the first, which was released earlier this month, aims to shed even more light media-buying processes and find a way to move for- on the subject and provide marketers with guidelines ward with their agency partners. Until then, readers and recommendations. In August, ANA will cover the can find more information on both reports at ana.net/ findings of both reports and give marketers actionable transparency steps to address the lack of transparency in their — Andrew Eitelbach

LET’S GET COFFEE Sometimes getting a meeting in person takes some convincing. In cooperation with Microsoft, Starbucks is aiming to make it a little 32% The amount of internet users easier. Last month the coffee company released a new add-in for in the U.S. who will be using Microsoft’s Outlook email client that lets users schedule meetings at ad blockers in 2017. Currently, local Starbucks coffee shops and send gift cards directly over email. 26.3 percent of internet users Starbucks first announced the feature in March at Microsoft’s Build in the U.S. (69.8 million people) conference. It’s currently available for PC users, with plans to roll it are using ad blockers. out for Apple and mobile devices in the coming months.

source: 2016 eMarketer SHUTTERSTOCK.COM

2 // ASSOCIATION OF NATIONAL ADVERTISERS // WATCH IT “There would be no such thing as extremism in the world if people knew their heritage,” says one of the participants in a powerful spot from travel company momondo. In the campaign, “Let’s Open Our World,” the Danish brand interviews consumers about their heritage and then offers DNA tests to identify their ancestry and uncover from where those participants truly originated. For many in the video, the results challenge their sense of national pride and make them rethink their world views. It ends in offering them a trip to any country found in their DNA. As part of the campaign, momondo is running a contest online for free DNA tests and a chance to travel to an ancestral country. To watch it, visit ana.net/julymag16.

SHELF LIFE EDITOR’S NOTE: HALLELUJAH! Millennials aren’t entirely turning up their Magazines have a higher return on advertising noses at print in favor of digital; here’s media spend than other media. how respondents answered a question Calendar $1.53 DIGITAL VIDEO $2.63 DISPLAY about whether books on a shelf were more $3.94 MAGAZINES $2.55 LINEAR TV ANA MASTERS OF accessible than digital files. MEASUREMENT $2.62 CROSS MEDIA $2.45 MOBILE CONFERENCE The values, which come from a 2016 Nielsen September 14–16 18% Naples, Fla. NO OPINION Catalina Solutions study that looked at data from 2004 through 2015, are not all on the 58% 24% same scale, as ad spend varied by channel. ANA MULTICULTURAL DISAGREE AGREE Average spend for display was $500,000; TV MARKETING & DIVERSITY CONFERENCE was just under $10 million; mobile $300,000; October 9–11 digital video $500,000; magazines $2 million; Los Angeles, Calif. source: 2016 Omnipress Millennials and Print Survey and cross media $1 million.

ANA MASTERS OF MARKETING CONFERENCE October 19–22 “We’re in a world today where the things Orlando, Fla. you learned in college 15 years ago are no

ANA/BAA MARKETING longer the skills that you need for your LAW CONFERENCE next job. Many of those skills — like data November 9–11 Chicago, Ill. science or digital marketing — didn’t

even exist 15 years ago.” // For more, visit ana.net/events. — DAPHNE KOLLER, PRESIDENT AND COFOUNDER AT COURSERA, ON THE RECODE DECODE PODCAST, DISCUSSING THE IMPORTANCE OF CONTINUAL LEARNING AND SKILL DEVELOPMENT

ANA.NET // 3 THROUGH THE PURCHASE FUNNEL GARY WATERS GETTY IMAGES WATERS GARY

4 // ASSOCIATION OF NATIONAL ADVERTISERS

THE PURCHASE

Extending FUNNEL brand presence through the entire shopping journey

BY DAVID WARD GARY WATERS GETTY IMAGES WATERS GARY

ANA.NET // 5 ntil recently marketing and sales were often consid- online retailers — before they were com- ered two distinct silos, and any branding that took fortable enough to purchase one of the brand’s high-end televisions. place at brick and mortar retail was often limited to “Five years ago there were only seven a good package design or a clever end-cap display. shopping trips and five of those hap- Thanks largely to the combination of new technol- pened to be in-store,” Munk adds. “This year there are nine trips, only three of Uogy and consumers who are open to actively engaging with a which are in-store. The relationship be- brand virtually anywhere or any time, marketers are finding tween whether the shopper starts online, increasing opportunities for delivering messaging all along the or starts physically in-store, or starts on a mobile device, is almost unpredictable path to purchase, including as shoppers stand in the store aisle and so the brand has to be able to antici- finalizing their selections. pate when the mobile event ends, for “The division between marketing and to purchase, especially for big-ticket items whatever reason, and gets picked up sales is blurred, and it’s now a much more that aren’t an impulse buy. again by the shopper at physical retail.” integrated approach,” says Morgan “Brands are now looking to under- Adding to that challenge are the vast McAlenney, EVP of Digitail, a division stand how a shopper makes their way to differences between retail chains, not just of the shopper marketing agency The In- purchase — both in-store and online — all in the type of shoppers they’re looking to teger Group that focuses on e-commerce. with the goal of personalizing that shop- attract, but also in the types of advertis- “Marketing is still there in support of ping experience,” says Rich Butwinick, ing collateral, including in-store signage sales, but now sales is becoming much founder and president at shopper mar- and wireless messaging, they’re willing to more nuanced when it comes to branding keting agency MarketingLab in Minne- accept. “We have certain retailers who all the way to the register.” apolis. The one thing working in many won’t even take a POP [point of pur- The growth of online and mobile marketers’ favor is that, increasingly, the chase retail display] or who organize by commerce is providing new ways for path to purchase now includes an online category and not necessarily by brand,” companies, particularly those in CPG, to or mobile component, which provides explains Mary Rodgers, director of mar- better control the purchase funnel. If more opportunities for engagement be- keting communications at Cuisinart, who marketers can drive the consumer to the fore any in-store decision is finalized. adds that even the use of QR codes on right site, there is the opportunity to de- According to a report from creative packaging can be curtailed by a retailer’s liver content, recommendations, or even consultancy Deloitte Digital, 84 percent desire not to include links that provide an promotions that can keep that shopper of customers reported using a digital opportunity for the product to be pur- engaged all the way until they click the source for shopping-related activities be- chased elsewhere. purchase button. For most brands, online fore or during their most recent visit to a Liz Crawford, SVP of strategy and sales alone won’t be enough for the fore- brick and mortar store. insights as well as head of the ShopLab seeable future; they still need to win in a “The interaction between mobile, on- at MatchMG, adds that brands may also brick and mortar environment where line, and brick and mortar is becoming increasingly find themselves directly their direct competitors are often only a more complicated,” says Curt Munk, competing with the retailer in many shelf away. That means to succeed at re- SVP and head of strategy at Chicago- product categories. “Retailers are getting tail, brands not only need great products, based FCB/RED. As an example he much smarter,” she says. “They know messaging, and pricing, they also need cites a consumer electronics client that how to use their data and are increasingly insights on what exactly motivates their found its shoppers needed nine distinct savvy about using buying contexts, mer- target consumer to go from consideration shopping trips — including visits to chandising, and pricing to give their

6 // ASSOCIATION OF NATIONAL ADVERTISERS private-label brands an advantage. Store Brands also need to make sure that all collateral was tailored not only to differ- brands are better than ever; they are a that collateral is right for not only their ent cultures, but also to retailers ranging real and present danger to national shopper but for the specific retail environ- from convenience stores to big-box brands and today’s Millennial shoppers ment as well. Shelf-talkers and end-cap chains. In addition to net global sales aren’t as brand loyal as their parents, displays that work well in a Walgreens, for growth of 3.3 percent, the campaign making private label a viable choice for example, may not be nearly as effective in generated huge growth in the brand’s most categories.” a Costco. “It’s the same consumer and the key metrics, including share points, key Given this ultra-competitive brick same product, but the retail environment retailer lift, redemption, and basket size. and mortar retail world, marketers are is different and therefore you’ll have dif- (ANA members can read more and see a finding that brand equity may be more ferent messaging,” explains Butwinick, video case study on “So Much More,” a important than ever to close the sale with adding any branded in-store collateral has 2016 REGGIE Awards Gold winner, at savvy shoppers. They’re also realizing to fit the store’s overall vision. “Brands ana.net/somuchmore16.) that it pays to be nimble in their in-store and retailers have to work collaboratively approach, and that a little bit of every- to create an exciting and engaging experi- thing — including new technologies such ence for the shopper,” he says. as beacons, a healthy dose of data, and Johnson & Johnson and brand agency BEACONS AND THE the continued use of more established TPN recently proved the value of in-store GROWTH OF DIGITAL tools like end caps, printed signage, and signage and displays with this year’s “So IN-STORE BRANDING compelling package design — is essential Much More” campaign. Rolled out world- For several years QR codes seemed like the for brands to thrive on store shelves today. wide in both emerging and developed mar- answer to the in-store branding challenge, kets, the campaign focuses on educating but ultimately too many shoppers either and inspiring Millennial moms with the didn’t like them or didn’t use them enough, simple message that a bath using J&J’s so marketers are already turning to what’s TWEAKING THE TRADITIONAL products can help stimulate their baby and next. Much of that interest is now focused IN-STORE APPROACH help in their early development. on in-store beacons — wireless devices, Perhaps the biggest misperception out That message was reinforced with installed and controlled by the retailer, there is that every shopper in a store now shelf-talkers, POP displays, aisle take- that use Bluetooth to push ads, coupons, has a smartphone in-hand to aid them in overs, and other in-store displays cen- or supplementary product information to the purchase process. While it’s more than tered on images of adorable J&J babies, consumers’ mobile devices. likely most consumers will have their phone which helped establish an emotional Because beacons don’t drive the shop- nearby, McAlenney points out, “The ones connection with shoppers. Campaign per to a company website, Dean Forbes, that have a smartphone in their hand could use it for double-checking shopping promotions; they also may be texting friends or looking at something else. It’s like direct marketing, if only 1 percent use it while shopping they may be the most valuable shoppers for that brand, but it’s still a small segment of the overall group.” That means, at least for the time-being, brands — even those targeting a younger consumer — can’t completely abandon what’s worked at retail in the past (i.e., printed signs and displays). “What research is showing us is that marketers in-store are not abandoning the printed material for digital,” Butwinick says. “Instead brands are figuring out ways to make these printed materials work better with digital.”

ANA.NET // 7 CEO at Minneapolis-based agency Curb don’t feel like they’re being attacked by generate recommendations for purchase Crowser, suggests they have the potential these new technologies,” Rodgers warns. while also helping the consumer navigate to be far more effective than QR codes, Like any kind of push messaging the store. Forbes says that participating especially if they’re combined with other technology, beacons have to be used judi- in these retail mobile shopping list pro- digital programs that can target shoppers ciously, Munk says, adding, “Large re- grams can drive incremental sales, but well before they reach the store entrance. tailers haven’t really been leveraging notes that because many of these lists “Consumers now expect brands to beacons because they’re still trying to focus on sales and discounts, participat- know what they want to ask next,” say figure out the right way to engage the ing CPGs can wind up engaging in price Forbes, whose company specializes in shopper. But if used right, beacons can wars rather than building brand engage- shopper- and customer-centric market- be live-optimized for shoppers, noting ment. “The brands can find themselves ing. He suggests developing beacon pro- where they’ve been in the store, what’s in being commoditized,” he says, adding grams that deliver customized messages their cart, and at what time they’re shop- that participating in these smartphone to customers entering a brick and mortar ping. [The technology] can also end up shopping lists has to be part of an in- store based on their previous visits to a eventually lowering the costs for brands store brand strategy that also includes retailer’s site. “Remind them about cer- looking to have an in-store presence be- print signage and other digital outreach. tain products they showed interest in cause they can replace end caps and other “If you’re not weaving it into an overall through a beacon: ‘Hey this brand was signage.” brand story then it becomes disconnected part of that shopping list you were put- Brands also have opportunities to par- and this digital strategy ends up being ting together or that recipe you like.’” ticipate in the growing number of mobile just a price promotion.” Rodgers takes a more cautious ap- shopping list apps developed by third- One brand that seems to be gaining proach to beacons. Saying Cuisinart is party startups such as Coupons.com, as some early traction with an app-based currently not using beacon technology, well as retailer-specific shopping list gen- in-store brand engagement program is she admits it could be something that her erators from largescale brick and mortar Marysville, Ohio–based Scotts Miracle- brand experiments with in the future. retail chains. Gro, which used the 2016 SXSW Inter- “We still don’t know how resistant con- The store-based shopping list apps can active Festival this past spring to unveil sumers are going to be, so you need to leverage proprietary data on the individual its new Gro Connected Yard smart- ensure that shoppers going into stores shopper’s previous purchase history to phone app.

// CASE STUDY

SUMMER HAPPY HOUR The most effective in-store engagement programs end up serving Walgreens customers coming into stores were met with Coca- the goals of both the brand and the retailer. In 2015 Coca-Cola Cola Happy Hour Contour Bottle Racks, portfolio displays in the executed just such a program at Walgreens with a campaign aimed summer seasonal aisles, point-of-sale end caps, shelf-talkers, and at boosting the chain’s late afternoon grab-and-go other signage. Coca-Cola also brought experiential live traffic, which was being eroded by convenience stores Share-a-Coke events to Walgreens stores across the and fast-food restaurants. country where shoppers could, among other things, Leveraging the concept of happy hour at bars, get personalized Coke cans printed with their names which remain popular with Millennials, Coca-Cola or the name of a friend. created the Coca-Cola Happy Hour at Walgreens, The Coca-Cola Happy Hour program delivered where every Wednesday through Friday from 4 p.m. to where it counts, resulting in a 12 percent increase in 7 p.m. during the summer, customers could buy one sales of Coke products at the chain, while total cus- 20-oz. bottle Coke product and get a second one free. tomer visits to Walgreens rose by more than 10 per- The program kicked off by targeting influencers cent. The retailer also reported that digital redemptions with social/digital messaging that included prizes and tied to the campaign were double its typical rates. discounts. USA Woman’s Soccer player Alex Morgan was enlisted The program also greatly exceeded social and digital metrics to tout Coca-Cola Happy Hour to her social network followers. with a 3.5 percent Facebook click-through rate and 6 percent Walgreens also used its Facebook and Twitter presence to pro- Twitter engagement rate. The Happy Hour Twitter Parties alone vide offers and incentives on Coke products during the late after- drove 21.3 million impressions, while Alex Morgan’s posts about noon and evening. the promotion reached more than two million followers. — D.W.

8 // ASSOCIATION OF NATIONAL ADVERTISERS McAlenney explains. “For us, the negoti- ated middle may involve bringing the retailer into the brand process.” Forbes says one way for brands to THE MAJOR BENEFIT OF ANY BRAND-RETAIL drive partnerships with retail is to provide compelling content for the store’s PARTNERSHIP ISN’T JUST A BETTER STORE own marketing and e-commerce initia- PRESENCE, BUT ALSO ACCESS TO THE tives. “Companies like Walmart are already going hard at all of the brands VALUABLE DATA MANY OF THESE CHAINS they deal with, telling them, ‘You need to give us digital content that we’re go- HAVE ON THEIR LOYAL SHOPPERS. ing to feed into walmart.com,’” he explains. “Walmart understands that the shopper may not be purchasing every- Gro uses massive amounts of data, in different color options, providing an thing online, but they’re doing much of including local weather reports, to pro- immersive experience right in the aisle. their research online. What Walmart vide advice on things like watering and The high costs of some of this in-store wants them to do is come to their site for feeding tailored to an individual’s area. branding technology may limit adoption, that research, look at branded content, The company’s app is compatible with a especially in categories where margins are and form their shopping list before they number of smart-water controllers and slender. But even if only a few of them head into their stores. It ends up being a soil-sensors to help users get even more ultimately succeed, McAlenney says, they win-win, and the brands that have gotten customized information specific to the all can be seen as indicative of a future on board early are seeing good incre- conditions in their own yards. This is where shoppers have a lot more control mental sales, not just online but in-store part of Scotts Miracle-Gro’s strategy to over the purchase funnel. “Whether it’s a as well,” Forbes says. lure 18- to 35-year-olds into gardening QR code or augmented reality or some The major benefit of any brand-retail and lawn care. recognizable tag or beacon, the underly- partnership isn’t just a better store pres- “We see the Gro app as way to help ing notion is that the shoppers are relying ence, but also access to the valuable data create a deeper engagement with garden- more on an ‘electronic second opinion’ many of these chains have on their loyal ing, and see that as an important way to rather than just what they see on the shoppers and the promotions and pricing both drive them and guide them at retail shelf,” he says. “Brands and retailers that truly drive sales. “Retailers can be re- and e-commerce,” says Patti Ziegler, should be testing a lot of these things to luctant to open up all of their data, so if a chief digital and marketing services offi- figure out what’s really motivational in chain or store does say, ‘We can share cer at Scotts. Ziegler adds the app does terms of moving of the sales needle and some of our data, but you have to help have a brick and mortar component, then, secondarily, what might have real with the right content,’ the brand should which provides purchase suggestions staying power.” have something ready to offer in return,” while shoppers are in the store mapping Forbes says. out their lawn and gardening needs. “We MatchMG’s Crawford agrees that are also partnering with our retail part- brand managers will increasingly have to ners to ensure the Gro program works to IN-STORE BRANDING AND integrate their messaging and consumer grow their business too,” she says. THE RETAIL PARTNERSHIP engagement with the retailers’ own Like highly customized mobile appli- Virtually all in-store branding requires at brand-building objectives, if they want cations, there are some flashier technolo- least some cooperation from participat- to keep a brand presence throughout the gies already helping to reinforce brands ing stores, but marketers need to realize purchase funnel. “Amazon and others in-store. Take, for example, “magic mir- they won’t always see eye-to-eye with the are proving that the retailer is often the rors,” which let shoppers try on different retailer when it comes to these programs. brand choice in the shopper’s mind and outfits virtually. The mirrors, which are “If a retailer is trying to lift the whole that a store may be bricks or digital,” she already a feature at Rebecca Minkoff category and the brand is trying to differ- says. “So it’s contingent on the brand to stores in New York, Los Angeles, and San entiate itself within that category, those figure out ways to gain mindshare in that Francisco, let the consumer see themselves can end up being competing objectives,” environment.”

ANA.NET // 9 n 2016, marketers are demanding medium eMarketer reports U.S. adults merely as a way to drive awareness, can, accountability like never before. will spend an average of 5.5 hours watch- in fact, be a powerful driver of sales. The They have access to endless tools ing every day, marketers’ expectations re- trick comes in proving it, which is possible to connect with consumers, but main limited. Despite video’s deep level if marketers have the right tools. knowing what actually drives sales of engagement, the majority of marketers remains essential. Matt O’Grady, haven’t figured out how to leverage it to CEO at Nielsen Catalina Solutions, a drive sales and still focus on traditional icompany that helps CPG marketers mea- awareness and brand equity metrics. Sales, the True ROI sure and improve advertising perfor- “In today’s world, marketers just can’t Marketers are ever-evolving. According to mance, hit the nail on the head when he survive not knowing which 50 percent of The Economist, about 70 percent of mar- said, “You need to connect the consumers’ their marketing strategy is working, and keters say their role has recently shifted to response to an ad to their actual in-store that applies to video as well,” says Brian being a driver of revenue. By changing purchases — that’s nirvana.” Pozesky, chief product officer at Eyeview, their focus to sales-driven outcomes, mar- The future of ads is about business a video advertising technology company keters are held more directly accountable outcomes, not media metrics. To get those focused on improving the return on video for their strategies. outcomes, marketers are driving sales by ad spend. “There is incredible value to measur- innovating how messages are bought, tar- In order to build the most effective mar- ing how well a particular campaign per- geted, and delivered across many chan- keting programs, marketers must focus forms,” says Arianne Walker, senior nels, such as search, email, display, and on the strategies that deliver outcomes — director of marketing analytics at J.D.

retargeting. But as it pertains to video, a specifically, sales results. Video, often seen Power. “The value is in understanding SHUTTERSTOCK.COM

10 // ASSOCIATION OF NATIONAL ADVERTISERS SPECIAL SECTION

achieving How to connect video ad spend to product sales

contributed by Oren Harnevo

performance beyond online KPIs, in how path (albeit one overgrown with data) toothpaste with a map to the nearest re- specific messaging and execution helps to from a customer viewing content to mak- tailer can be the difference between a sell product. That’s true ROI.” ing a purchase. As daunting as that path spot that drives awareness and a spot In 2014, a study by the CMO Council may seem, it’s essential that marketers that drives actual sales. and Nielsen found that 95 percent of begin to make their way down it. “The relevance of the product is driv- CMOs are hesitant to spend money on “If you deliver the right ad to the audi- en through consumer personalization,” digital because of the inability to mea- ence that is most likely to purchase a Pozesky says. “To make something rele- sure ROI. Today, just two years later, product, it’s going to have a tangible im- vant to the consumer, you have to know available technology is allowing brands pact,” O’Grady says. “If you bombard something about them: their history, to see the true value of their advertising shoppers with ads that aren’t relevant to wants, needs — their profile. This allows dollars. As a result, traditional media the end purchase, that will be a waste.” you to create an ongoing and relevant metrics, like impressions, clicks, and en- In an overly cluttered and fragmented dialogue, and that’s what makes a gagement, are losing value as sales be- advertising universe, relevance remains difference.” comes the metric that matters most. the only way to win people’s attention. Relevant advertising is able to tie to- The effectiveness comes from using the gether consumer, retailer, and manufac- vast amount of data and information turer information into a message that available to not only find the right per- engages an audience, wherever they may Relevance Is the Way son but to deliver the right message on be, instead of annoying and distracting So, how do marketers connect their an individual level. For example, show- an audience with an irrelevant message

SHUTTERSTOCK.COM strategies with sales results? There is a ing an in-market consumer an ad for in an irrelevant location. ➞

ANA.NET // 11 SPECIAL SECTION

are starting to face some undeniable digital video itself will account for $30 changes. They will all, likely sooner than billion annually. Let’s Be Honest, later, reach a point of diminishing return. J.D. Power’s Walker has seen the trend It’s Worked Before While print coupons and circulars firsthand: “We have been monitoring The code for seeing a return on advertis- have seen success in converting shoppers video usage among new-vehicle buyers ing spend has been cracked before. Mar- into buyers, weekday newspaper circula- since 2012. At that point, 14 percent of keters have used data-driven methods to tion has fallen 17 percent, and the ad rev- vehicle buyers told us they were using enable personalized, local, real-time pro- enue that comes with it is down 50 videos in their online shopping process,” motional messaging in print circulars, percent, according to the Pew Research she says. “Today, 45 percent of these online search, display, and other media. Center. This is a fall-off that marketers buyers tell us they use video content to They’ve delivered their message through cannot afford to ignore. help them make decisions about their these tactics in a relevant way and tracked Furthermore, with the proliferation of vehicle purchase.” their campaigns back to sales. display and search ads, many consumers Video is very clearly a medium that There’s no doubting the effect of print are becoming immune to these messages, captures people’s attention. “With video, on consumers — it was, after all, the first with 73 percent of Americans ignoring it’s more engaging and human,” says John form of mass advertising, using beautiful these ad formats, according to eMarketer. Stremel, director of digital media at ad- pictures to create emotional connections That dreaded banner blindness is resulting vertising agency Innocean. “It can convey with readers. In 2015, U.S. advertisers in a loss of effectiveness, with a measly 0.17 so much information in a dynamic way. I were still putting 15 percent of their over- percent average click-through rate for ban- get 300 emails a day, so between that and all investment into the medium, accord- ner ads, according to research compiled by a video, a video will get my attention. It’s ing to TechCrunch. Smart Insights. here to stay, and it’s growing and strong.” With the invention of the internet In addition, a marketer can face a loss Marketers have used video to drive came digital display advertising, and it of consumer trust when an ad message awareness since the invention of televi- quickly became one of the fastest — and chases a customer around the web as a re- sion due to its ability to use sight, sound, easiest — ways to personalize advertising sult of reckless retargeting. and motion to drive an emotional con- to a specific consumer. Right now, digital nection with consumers. But, as the display advertising is a $32 billion indus- shift to more accountable advertising try in the U.S., according to eMarketer, grows, using video as a sales tool has and it’s projected to hit $46 billion by So Where Exactly Has been a difficult transition to make. 2019. Search advertising is hot on its Everyone Gone? Personalizing video based on the heels at $29 billion, taking advantage of U.S. adults spend 22 percent of the complex data sets needed to impact what’s at the forefront of consumers’ day, or more than 34 hours a week, sales, and on the scale required to move minds when they take to the web. watching television, Personalized and localized advertising according to Niel- executions can happen within these media, sen. Research firm as well as other channels, like email mar- Syndacast predicts keting — a strong tactic for marketers that by 2017, 74 reaching out to their current customers in percent of all inter- order to upsell. These ads are shown in real net traffic will be time and are very relevant. video. So, why mess up a good thing by add- No matter how ing video to the mix? you cut it, that’s a lot of time consuming media, and many marketers have The Decline of the caught on. Between Status Quo 2011 and 2017, Marketers need to acknowledge the facts: eMarketer reports, ad spend on digital the needle, has seemed like an insur- advertising media that worked in the past video will hit $8.04 billion. By 2020, mountable feat. Until now.

12 // ASSOCIATION OF NATIONAL ADVERTISERS SPECIAL SECTION

J.D. Power, these brands show how mea- Stremel of Innocean. “Video has flexibil- suring sales’ impact has become standard ity — the content can be optimized de- Video for Sales rather than just an afterthought. “We are pending on where consumers are on the Is Here, Now able to measure actual online behavior path to purchase, and we’ve seen strong Smart marketers are tapping into techno- and tie it to sales, in some cases seeing a ROI with it. We see its power, and we’re logical innovation to use video the same profit of seven to one,” Walker says. “We embracing it and learning from it.” way they’ve used performance tactics in capture exposure to an ad campaign and Even internet behemoths Google and the past. Combine this with the high vol- Facebook are beginning to focus on using ume of people consuming video — across video to deliver measurable sales results. desktop, tablet, television, and mobile — In April, Google reported that Gatorade and you have a recipe for success. checklist for ways to earned $13.05 in sales for every dollar the “Good video advertising, in the most get your money’s worth brand spent (or put toward) YouTube’s simplest of terms, is adding effectiveness TrueView ads, as well as a 16 percent lift and efficiency to traditional video using Eyeview uses this checklist to help brands in new buyers who saw the commercial. drive sales via digital video and advanced TV. all of the new screens that are available to Facebook has prioritized measuring How many are you using in your video consumers today,” Pozesky says. marketing strategy? sales lift for brands using video as well. Marketers are marrying data-driven Identify and know your consumers Utilizing Facebook’s Custom and Looka- techniques with the time-tested magic of Leverage your CRM data to target and like Audiences tools, brands like Acura TV to create one-to-one video marketing. personalize your message and Eggo have seen more than four times Measurement of previously elusive offline Implement tracking pixels on your website the return on ad spend and a significant sales is now not only effective, but becom- Incorporate real-time feeds to highlight increase in topline revenue. ing the norm for leading marketers at top product and price offers, sales countdowns, brands like Honda, Lowe’s, and P&G. and product features TriHonda Dealers, a regional group Target based on distance to the retailer and At the end of the day, a medium needs to of Honda dealerships located in New use a localized map to direct people on be adaptable to be effective, and video is where to go to complete a purchase York, New Jersey, and Connecticut, has finally able to deliver on that requirement. Use all screens and channels (e.g., desktop, firsthand experience in seeing incremen- mobile, advanced TV, Facebook) It can be configured and reconfigured to tal sales from the use of video. Leveraging Measure sales using test and control appeal to niche audiences at scale. creative from Honda’s national advertis- methods “Every campaign is different, and every ing campaign, TriHonda Dealers targeted Work with verified third-party measurement run of media and target audience that local in-market auto shoppers by incorpo- companies you decide to pursue or create will impact rating brand, product, and consumer data Learn from and optimize your campaigns as the campaign,” says O’Grady of Nielsen to create and deliver personalized video they run Catalina Solutions. “We know from thou- ads across screens. The videos targeted — O.H. sands of case studies that using purchase shoppers interested in competitor models data to target your audience provides with messaging that compared key differ- higher returns on ad spend than other ap- entiated features of Honda’s model inven- connect that experience to detailed trans- proaches, which is why it is important to tory against competitors’. Each video action data using our online-to-offline an- do in-flight optimization as well as back- variation included a local map of the alytic solutions. This type of measurement end analysis of your video campaigns.” shopper’s closest dealerships, along with allows automakers to put a real value on With its astronomical growth, power local pricing and offers. With the creation their marketing efforts.” to connect emotionally, and advance- of more than 8,000 video variations Now, marketers can draw a clear line ments made in targeting, personaliza- shown to 8 million viewers, TriHonda between the customers who viewed an ad tion, and measurement, video has saw a 29 percent increase in car sales, and those who then purchased their prod- become the biggest opportunity for per- moved an incremental 912 vehicles off its uct. “We can actually take videos meant formance marketers tasked with deliver- lots, and saw a return on ad spend of for branding and make them work harder ing sales. $7.83, as measured by J.D. Power. across the mid- and lower-funnel by add- Partnering with measurement compa- ing more specific content to that video Oren Harnevo is the CEO at Eyeview. You can nies like Nielsen Catalina Solutions and that’s going to drive people to buy,” says email him at [email protected].

ANA.NET // 13 TIMING IS EVERYTHING

Four key elements for delivering the perfect message to the right consumer at the most appropriate time

CONTRIBUTED BY J. R. BADIAN

14 // ASSOCIATION OF NATIONAL ADVERTISERS WHAT“ TIME DO

Years ago, that question was YOU creates a valuable exchange, and asked often. Its frequency has if successful, allows for personal waned over the past 15 years endorsements of the brand from with the advent of the mobile HAVE? consumer to consumer. phone, which acts as much as a timepiece for most people as it does a APPROPRIATE communication device. Even though we 2 CONTEXT as consumers don’t ask the question When I went to Babson College for my much anymore, as marketers, we must is integral to each element, creating the M.B.A., the teachings were mostly cen- keep an eye on the time. If we are to opportunity to significantly affect busi- tered on entrepreneurial thinking. Bab- truly think with a consumer-first mental- ness objectives.” The idea is to discover son is a top entrepreneur training ground ity, then we must deploy in-market digi- insights around trends, demand map- for startups. The two words I remember tal messages at the most appropriate ping, and nascent cultural conversations most from my time at Babson were “value time for the consumer. so digital campaigns can co-opt these creation.” While many people reference real- elements. Social listening for insights can In business models creating value for time marketing as a way to connect with help create a well-timed core creative the consumer is the first step (of many) to consumers at a specific, spontaneous idea (CCI), provide for in-the-moment ROI. We are taught to think of the con- moment, personal experience has shown enhanced engagement, and allow mar- sumer pain point, and why they care me that to actually execute in real time keters to further amplify and optimize about our offering. We can apply the same one needs a significant level of planning. the CCI while in market. business logic to digital marketing models. A better way to get noticed — and for When consumers see an advertising mes- your digital content to break through — APPROPRIATE AUDIENCE sage, cognitive skills allow them to search is something I call appropriate time mar- 1 The first element of ATM is identify- for value in the message. Marketers need keting (ATM). ing the appropriate audience by adjust- to consider the context of their advertising ATM is a strategic approach to digi- ing a traditional target demographic to and ask themselves, “Why should the con- tal content and performance marketing include any potential “communities.” sumer care about my message?” and that offers meaningful ways to increase There are often a number of communi- “When does the consumer need it most?” the value and efficacy of advertising ties within a given target demographic, Those are important questions to ask, and messages. By creating a contextually and identifying their direct interests (or why considering the appropriate context timed content plan — informed by social whatever common thread connects the is the second element of ATM. listening, which helps determine the members of those communities) can be Appropriate context means under- right course of action — ATM allows for of great value to a brand. For example, a standing consumer behavior in digital and a holistic, consumer-focused strategy. In well prepared brand that knows the tar- social media and applying that under- essence, ATM serves up advertising mes- get’s interests will find a consumer’s sud- standing to your well-timed message. If sages as the consumer would want them. den conversation about sports spurs a you take the consumers’ circumstances into ATM is comprised of four elements — valuable opportunity to engage or glean account when marketing to them, includ- appropriate audience, appropriate con- information relating to that very same ing the appropriate context of the message text, appropriate message, and appro- subject at the very moment the consumer they interact with, you create incremental priate channel — but each element starts thinking about it. Delivering a con- value for them. Native advertising is a begins with key insights. Social listening textually relevant message in that moment good example. Consumers are in the

ANA.NET // 15 PAR FOR THE COURSE

As MasterCard studied the market months be there. We compiled rare footage of to our cardholders with reaction video organic conversion to outperform paid prior to the 2015 Open Championship, we Watson that we were able to obtain from tweets (his own video content to our conversion. noticed through our social listening that the Royal and Ancient Golf Club of St followers). The content was so good and consumers were taking great interest in Andrews (R&A), one of golf’s governing Why did this work? Because every consumer-appropriate that it allowed pro golfer Tom Watson when talking about bodies that puts on The Open, and part of the campaign considered us to identify earned media oppor- The Open. It seemed that 2015 might be #HatsOffToTom — our core creative the four elements of appropriate tunities in real time. Our Tom Watson’s last British Open. concept — was born. As consumers time marketing. There was the Watson farewell video content MasterCard, a Patron of The Open watched on TV and using dual screens, attention of a very specific golf ended up running on the Golf and a Watson sponsor for 18 years, felt we created enough value during the community; there was contextually Channel during The Open; the R&A like it was appropriate for us to help lead event that our typical offering, timed relevant content that led to consumer went to live coverage of our private host- the Tom Watson farewell conversation. We well, experienced increased value. participation; the message was well ing event; and even other news outlets set out to provide value to the consumer Our timed message — wishing timed to when The Open was on TV; and picked up the branded content work, ex- through content and conversations, with Watson a joyous farewell — asked cus- it created an emotional connection with tending the content’s value even further. an objective to support commerce through tomers to share their favorite moments our brand by giving fans access and The campaign succeeded because promoting “Priceless” golf experiences. from his career. In return, MasterCard the opportunity to say farewell to Wat- the content went to the right audience, in It did turn out to be Watson’s last would share those messages with Wat- son at the appropriate time. That en- the right context, on the right channels, at Open, and many of his loyal fans couldn’t son (our value exchange) and he’d reply hanced connection to the brand allowed the appropriate time. — J.R.B. mindset of reading and consuming con- dull moment, car broke down.” Then, to serve. Considering what is “appropriate” tent. If we don’t deliver content experi- right then and there, you see outreach from for the consumer, in his or her channel, is ences, native advertising will lose its ABC Auto for 24/7 roadside assistance. a serious matter. A voluntary video view, effectiveness. Or take an authentic influ- You click and get on-demand service. Your for example, should be considered against encer piece supporting your brand, placed request is geo-located, and within 15 min- a forced view. Also, a story narrative most in the Facebook Newsfeed. What’s more utes help arrives. In this example, what did likely needs to be tweaked. Finally, the appropriate to a consumer looking at her the ABC Auto brand offer beyond their length of a video should be adjusted and feed: a linear TV commercial, or an au- everyday 24/7 message? Not much. It was optimized for the channel. thentic influencer piece showing her peers the social listening and data driven response By far, the hardest element of ATM for using your product? When thinking about that created a contextual message — led by marketers is pivoting in real time. ATM re- the answer, remember the context — the astute timing — and created incremental quires brands keep pace with consumers, actions customers are taking while they value for you, the consumer. which means there is a need to move fast are in the Newsfeed, like catching up with Traditionally, there is a good chance and find value where others have not yet. friends and sharing stories. Hint: How that we reach consumers when they are Most marketers have issues here because it would a consumer answer? cold prospects (i.e., core message, wrong involves investing in less-proven content Another consideration is contextual time). But if you consider the pacing of ideas and platforms. Simply put, most peo- relevancy. If we choose a target with an the consumer journey and sales funnel, ple don’t like change, but ATM calls for affinity, and discover a future potential you can create search marketing and digi- constant change, pivots, and same-time consumer discussion (as long as we have tal out-of-home messages that make con- adjustments based on social-listening data. authority to involve ourselves), we can add nections with contextually relevant, timed In our industry, change is necessary for incremental value to our message. The messages (i.e., core message, appropriate growth and keeping your brand relevant. brand message should stem from the cur- time) for additional emotional value. If you’ve got a campaign approaching, rent consumer insight connecting your apply these four elements across your ef- brand to the consumer conversation. If APPROPRIATE CHANNEL forts to increase the effectiveness of your you plan appropriately, and provide access 4 Channel planning in digital is ex- digital marketing messages. or information related to the discussion tremely important. With ATM, it is less ATM creates incremental emotional the consumer is engaged in, your message about efficiencies and more about impact value and allows for more effective digital may increase its value. and effectiveness. It’s important to analyze advertising. It’s a change that will add value context to determine which channels will and drive results for your campaign, and APPROPRIATE MESSAGE work best for your content, and which will while change can be difficult, it’s about 3 The third element of ATM is the ap- give the most optimized value. Content time we try something new. propriate message. This is easiest explained planning in ATM involves identifying the by example. Imagine you’re stuck on the right content for each appropriate channel J. R. Badian is VP of digital marketing and side of the road at 2:00 a.m. in a strange based on behavioral data, context, and social media at MasterCard. You can email him town. You send a post or tweet, “Never a whatever specific need the brand is trying at [email protected]. OF THE NFL COURTESY

16 // ASSOCIATION OF NATIONAL ADVERTISERS Q&A The NFL Ups Its Social Game

TO KEEP THE MOST POPULAR professional sports league in the U.S. at the fore- consider the use of a great quote or front of social media, the NFL last year elevated Tom Brady (not the Tom Brady you’re memorable sound bite from a player. For thinking of) to the position of vice president of social media and emerging programming. immediacy, we may post the quote to Among his myriad duties, Brady shapes the NFL’s social strategy, content, voice, and Twitter. For Instagram, we may create a messaging across platforms; maximizes the use of social at a league, club, and player stylized image with the quote overlaying level; and leverages social to drive awareness of programming and content on the NFL it. For Snapchat, we may show real-time Network, NFL Mobile, NFL.com, and other NFL Media Group properties. fan reaction to the quote or sound bite. Here, Brady describes how his team adds value to social conversations and handles For YouTube or Facebook, we may post negative stories, his approach to content creation and measurement, and more. a video clip or stylize it around game — Ken Beaulieu action. We have to take the tremendous content we see each week and treat it How does your team add value for maximum consumption on each Q to the conversation online with- social channel. out coming across as obtrusive? We have to use each social plat- How do you measure social A form as it was intended, not Q media success? shoehorn one piece of content into It’s all about using data wisely. each platform. In other words, con- A We have an outstanding busi- tent we publish on Snapchat should ness intelligence team that provides be different than what we put on Face- us with deep dives on content perfor- book, and what we post on Twitter mance for each social platform. We should be different than what we put are constantly benchmarking perfor- on Instagram. When we publish content, There are so many positive, interest- mance versus the average and looking at we always think about how it can benefit ing storylines and reasons to celebrate all the variables — not just video views, the fan. Is it entertaining? Does it provide our game, our teams, and our players. We but completion rates; not just impres- inside access to our players and our game? have first-class teams with tremendous sions, but engagement. We also look at Does it give them a different way to look pride in their organizations. Every day, the conversation rates from our posts. at stats, trends, or breakdowns of our those teams are looking to find great foot- The data guides us, but it’s our responsi- teams and our games? Will it spark con- ball players, and even better men — peo- bility to fuel the flames on a good post. versation on social and drive people back ple of high character like Anquan Boldin, Finally, there are the intangibles that we to our properties to learn more? We often Thomas Davis, and Larry Fitzgerald. seek: Are we creating content that more say that we don’t have to own the splash, Our players also have great personalities. fans are sharing and emulating? just the ripple. Our fans want to know as much about them off the field as they do about their What advice would you give to What are some of the challenges performance on the field. That is a huge Q younger marketers looking to pur- Q you face in generating positive initiative for us, giving our players a big- sue a career in social media? word of mouth for the league when ger stage via our social reach. Use the different platforms often, and non-football-related issues arise? A think about how they work as both When negative stories arise, we What are the tried-and-true prin- business and communication tools. Then A don’t shy away from them. We give Q ciples that guide your team? apply that thinking to the subject matter our fans the information they want to We want a team that knows the so- you are pursuing. Also, take an immersive know. At the same time, there is plenty of A cial space, knows our game inside dive into the core tenets of the brand or conversation, speculation, and opinion and out, thinks like our fans, and is over- organization. What will set you apart is that we cannot control. We make sure flowing with creative ideas. We then make your passion for the brand and your for- our posts are accurate and timely, and sure that we create the right content for ward thinking ideas for how to grow the

COURTESY OF THE NFL COURTESY then put the focus back on the game. the right platform. It seems simple, but business and engage consumers.

ANA.NET // 17 ANA | 708 Third Avenue | 33rd Floor | New York, NY 10017

2016 ANA Masters of Measurement Conference presented by

September 14–16 | The Ritz-Carlton | Naples, Fla. | #ANAMetrics

Driving better business decisions through better measurement.

SPEAKERS INCLUDE:

Jeff Chen Pam Forbus Tanya Franklin Vaibhav Gardé Greg Revelle Chief Data Scientist SVP, PepsiCo Global Insights Director, Trends and Marketing Principal, Chief Marketing Officer U.S. Department PepsiCo Marketplace Insights Digital Intelligence Team Best Buy of Commerce Lowe’s Companies, Inc. FedEx

For more speakers, additional information, or to register, visit www.ana.net/metrics16.