BrandScience
Proof of Cinema Advertising ROI
Results of our Analysis
Total Europe
April 2012
Contents
1. Introduction and our Meta data
2. Cinema effectiveness vs. other media – RROIs by medium – Category by Category
3. What % of cinema is best? Cinema Effectiveness Tertile Analysis
4. How Cinema helps overall campaign (Total Communications) Effectiveness
2
1
1. Introduction, Econometrics case study and our Meta data
2. Cinema effectiveness vs other media – RROIs by medium – Category by Category
Introduction
and
our
Meta
data
3. What % of cinema is best? Cinema Effectiveness tertile analysis
4. How Cinema helps overall campaign (Total Comms) Effectiveness
3
What is econometrics?
Econometric modelling is a statistical method, which identifies and measures the inputs that have
caused something to change. ‘Something’ could be awareness levels, website traffic, or most usually a
measure of sales. If brand sales are a cake, then econometrics determines the recipe. So we can
determine how a dollar of advertising spend in Cinema vs. TV vs. Print drives sales by looking at the
“weight” in the econometric equation
Base
TV
Economy
Outreach
2000
1000
0
Cinema
Press
Ingredients:
Advertising x Medium
Digital
Sponsorship
Direct Mail
PR
Promotions
Pricing/Distribution
Brand Health
In-store merchandising
Product Changes
Competitor Pricing/Availability
Seasonality
Economic Change
R2 R-squared tells us how well we have reproduced the cake recipe. It is a measurement of goodness of fit. 100% being
perfect.
4
Econometric models
What is an econometric model?
• A simple statistical transparent method for examining the relationship between one
dependent variable and a set of several explanatory variables – called multiple
regression analysis
• Originally used to analyse economy, now to analyse marketing mix
• Create a formula or recipe for your sales:
– Sales = C + X*Distribution + Y*Price + Z*Market trend + W*Advertising +
Why are they useful?
They help understand all the factors driving sales (not just communications), and not just
factors under your control.
Brands can make informed decisions on budget allocation, media mix, marketing activity,
channels.
5
What econometrics on your brand can’t do
• Tell you the impact of something you haven’t done before
• Tell you accurately the impact of doing something at levels way beyond that already
experienced
• Overcome problems with the data
• Always tell you a positive story, it may bring bad news
6
What econometrics can do
• Provide accountability
• Objectively and fairly quantify
– What is important
– When it affects sales (short and long term)
– How much it affects sales
– Factors outside of your control
• Provide a starting point
– For the strategic planning process
– For investment allocation:
• Country/regional portfolio
• Brand/product portfolio
• Media/communication portfolio
7
Understanding econometric terms – a glossary
Return on Investment (ROI)
Return on investment - or ROI – measures the incremental profit return generated by a €1/£1/$1
investment. So in marketing terms, it measures the incremental profit return from €1/£1/$1 investment in
advertising.
So a €1.00 ROI means that €1.00 invested in media will generate €1.00 incremental profit return, e.g.
breakeven after the cost of the media is subtracted. A higher than €1.00 ROI means immediate payback of
the investment.
Or a €5.00 ROI means that for every €1 invested in media, €5.00 incremental profit return will be generated.
Revenue Return on Investment (RROI)
The BrandScience results vault measures Revenue ROI as it is often hard to get profitability information
from clients. So, a €5.00 RROI means each €1 delivers €5.00 of incremental revenue.
8
Understanding econometric terms – a glossary
Adstocks (Carryover Rates)
160
Advertising carryover rates measure the time period
140
over which a media will continue to drive a sales
120
response. A 50% weekly carryover rate means that if 100
80
TVRs
there were 100 impacts in a week of advertising, then
60
there would be an effect of 50 in the next week
40
20
(100 impacts x 50%) & 25 impacts in the week
0
after that (50 impacts x 50%). The higher the
carryover rate, the longer media drives a sales response
9
TVRs
80% carryover rate: typical
of a long term branding
message
30% carryover rate a week:
lagged impact of advertising
is short
Sales
Understanding econometric terms
Diminishing Returns
The law of diminishing returns is a classic economic
concept that states that as more investment in an area is
made, overall return on that investment increases at a
declining rate, assuming that all variables remain fixed.
To continue to make an investment after a certain point is
to receive a decreasing return on that input.
Cinema
10
Understanding scatter graphs
Scatter graphs
Scatter graphs let us “see” relationships in data – by
plotting a performance metric (e.g. sales effect) on
the vertical axis vs. a media metric (e.g. % spend on
a medium) on the horizontal axis.
All scatter graphs within project 1 relate to brands
within our Results Vault.
Average Revenue ROI vs spend
€ 8.00
€ 7.00
Average Revenue ROI
€ 6.00
€ 5.00
€ 4.00
€ 3.00
€ 2.00
€ 1.00
€€0.00
€0.50
€1.00
€1.50
€2.00
€2.50
€3.00
spend (millions)
€3.50
€4.00
€4.50
€5.00
€4.00
€4.50
€5.00
Average Revenue ROI vs spend
€ 8.00
€ 7.00
A line of best fit can be added to scatter graphs to
show the overall trend within a market.
The R-squared statistic tells us how well a line
fits the points
Average Revenue ROI
€ 6.00
€ 5.00
€ 4.00
€ 3.00
€ 2.00
€ 1.00
€€0.00
11
€0.50
€1.00
€1.50
€2.00
€2.50
€3.00
spend (millions)
€3.50
Understanding tertile analysis
Tertile analysis splits horizontal data points
into three groups of equal size,
LOW, MEDIUM & HIGH
for a metric (e.g. % of Cinema Spend).
By plotting the three groups we can see if there
is a linear or hump result, which we infer is “due
to” the levels of the metric.
12
Results from one single econometric model
Media used: Cinema, TV, Online
UK FMCG Impulse product
Cinema delivers a greater revenue return on investment than TV
Introduction to campaign and KPI
In 2009, BrandScience presented the findings of two models built to determine the drivers of an FMCG – Impulse brand’s sales. The
brand had recently begun to incorporate more engaging and salient content in their marketing and were utilising strong brand ATL
media with sponsored online space.
€ 4.00
€ 3.50
€ 3.00
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€-
€ 3.50
€ 2.46
RROI
€ 1.10
TV 69%
Online 7%
Cinema 24%
Relevant Cinema findings
Cinema was the most effective ATL media in both of the models, driving RROIs twice that of TV.
Although Online sponsorship was the most effective media at driving sales returns, modelling could not find a strong longer term
effect. Cinema continued to deliver strong returns over the longer term.
13
Understanding meta-analysis
We can use meta analysis to determine
rules across campaigns on media
mixes, spend levels, and media
synergies.
The SAWA meta-analysis project
explores results from the many
individual econometric models built by
the global BrandScience network in
order to:
• Understand how cinema affects the
performance of a campaign
• Identify the rules to improve the use
of this medium in future campaigns.
Meta-analysis enables us to identify
patterns across campaigns and
determine the factors responsible.
We have results on both Cinema direct
effectiveness, and the contribution of
Cinema to total Campaign effectiveness
Meta analysis is the “analysis of
individual analysis results”, pooled and
re-analysed so as to gain deeper
insights from wider experience
14
The BrandScience Results Vault
The BrandScience Results Vault contains RROI findings for hundreds of products across
multiple clients going back to 2001. Over 1500 hundred cases across the world, the
majority in Europe. But not all our cases have Cinema included in the campaign, or are
measurable via econometrics.
Market
Results Vault with Cinema RROI
measured
Total Results Vault
Total Europe
1,019
111
This deck focuses on findings from models built for brands within Europe. Each Project
1 sponsor receives further detail on Europe, on a region within Europe relevant to them
(e.g. Nordics) and in some cases on their individual market. Results meetings are
scheduled for early May 2012
15
2
1. Introduction, Econometrics case study and our Meta data
2. Cinema effectiveness vs other media – RROIs by medium – Category by Category
Cinema effectiveness vs. other media – RROIs by
medium
3. What % of cinema is best? Cinema Effectiveness tertile analysis
Category
level:
All Services
vs. Fast
Consumer
Goods (FMCG)
4. How Cinema
helps
overall
campaign
(Totalmoving
Comms)
Effectiveness
Subcategory level:
Service sector - Leisure + Entertainment
FMCG subsectors - Health + Beauty, Impulse, Grocery – food + drink
16
In the FMCG market, Cinema outperforms other media
when used as a secondary/tertiary medium
Europe – FMCG. RROI
€ 3,50
€ 3,00
€ 2,50
€ 2,57 € 2,48
R-Squared (average) : 89.90%
€ 2,88
TV
Print
Outdoor
Radio
Online
Cinema
€ 2,09 € 2,16
€ 2,00
€ 1,50
€ 1,11
€ 1,00
€ 0,50
€65%
0%
20%
7% 9%
40%
60%
8% 5% 6%
80%
In the European goods
market, Cinema usually
accounts for around 6% of
the media mix.
100%
BrandScience Results Vault – Europe ‘FMCG’ Campaigns using Cinema – Feb 2012
17
Cases: 39
In the whole FMCG market, Cinema accounts for only 1% TV dominates at 81% of the media mix
81%
0%
20%
40%
TV
Print
Outdoor
7%
60%
Radio
Online
80%
Cinema
BrandScience Results Vault – Europe ‘FMCG’ Campaigns – Feb 2012
18
6% 3%2%
1%
100%
In the FMCG market, Cinema has a strong carryover rate –
along with TV
Av. Carryover Rate
100%
80%
60%
57%
51%
40%
28%
20%
33%
28%
33%
0%
TV
Print
Outdoor Radio
Online Cinema
Cases: 39
BrandScience Results Vault – Europe ‘FMCG’ Campaigns using Cinema – Feb 2012
19
Maximum
Minimum
Average
For service brands, Cinema is underused vs. Outdoor so
does not achieve its potential
Here TV is the star medium – Cinema is the least invested of all media
€ 6,00
€ 5,66
Europe – Services. RROI
€ 4,89 € 5,05
€ 4,84
€ 5,00
R-Squared (average) : 86.87%
€ 4,00
TV
Print
Outdoor
Radio
Online
Cinema
€ 3,43
€ 3,00
€ 2,29
€ 2,00
€ 1,00
€56%
0%
20%
12%
40%
60%
12%
6% 11% 3%
80%
In the European services
market, Cinema
advertising accounts for
3% of the overall media
budget.
100%
BrandScience Results Vault – Europe ‘Services’ Campaigns using Cinema – Feb 2012
20
Cases: 19
In the whole Services market, Cinema accounts for only
1% again - although TV accounts for less of the overall
media mix
60%
0%
20%
10%
40%
TV
Print
Outdoor
9%
60%
Radio
Online
8%
80%
Cinema
BrandScience Results Vault – Europe ‘Services’ Campaigns – Feb 2012
21
12% 1%
100%
In the Services market, BRAND media such as TV and
Cinema have the strongest carryover rates
Average Carryover Rate
60%
52%
50%
43%
37%
40%
30%
20%
20%
25%
Average
15%
10%
0%
TV
Print
Outdoor
Radio
Online
Cinema
Cases: 19
BrandScience Results Vault – Europe ‘Services’ Campaigns using Cinema – Feb 2012
22
Cinema performs extremely well on Direct RROI in the
FMCG sub-category of Health & Beauty
We have no Radio cases in the Health & Beauty industry
€ 3,50
Europe – Health & Beauty. RROI
R-Squared (average) : 91.96%
€ 2,97
€ 3,00
Print
€ 2,50
€ 2,00
€ 2,00
Outdoor
Radio
€ 1,50
€ 1,00
€ 0,50
TV
€ 0,54
€ 0,38
Online
€ 0,69
Cinema
€71%
0%
20%
40%
14%
60%
80%
7% 3%5%
Cinema is
more effective
than any of
the other
media in the
Health &
Beauty
Industry.
Typically it
accounts for
5% of the
media mix.
100% Cases: 11
BrandScience Results Vault – Europe ‘Health & Beauty’ Campaigns using Cinema – Jan 2012
23
In Health & Beauty, Cinema accounts for only 1% again TV dominates at 81%
81%
0%
20%
40%
TV
Print
Outdoor
9%
60%
Radio
Online
80%
Cinema
BrandScience Results Vault – Europe ‘Health & Beauty’ Campaigns – Feb 2012
24
3%4%1%
1%
100%
For Health & Beauty, Cinema’s carryover rate is less
strong - although still in the top three media
Average Carryover
Rate
100%
95%
80%
61%
60%
Maximum
Minimum
40%
Average
44%
40%
34%
20%
0%
TV
Print
Outdoor Radio
Online Cinema
Cases: 11
BrandScience Results Vault – Europe ‘Health & Beauty’ Campaigns using Cinema – Feb 2012
25
Leisure and Entertainment is a challenging industry for
Cinema - Cinema out-performs outdoor here
We think this is because it is not being used enough in this industry.
Note our analysis does not include any cases of Film products
Europe – Leisure & Entertainment. RROI
€ 7,00
€ 6,00
€ 5,00
€ 4,00
€ 3,00
€ 2,00
€ 1,00
€-
€ 5,87
€ 5,21
€ 4,75
R-Squared (average) : 79.07%
TV
Print
Outdoor
Radio
Online
Cinema
€ 4,81
€ 3,08
€ 1,86
61%
10% 7% 6% 12% 3%
Our analysis
suggests optimal
results for
Cinema in this
industry when it
accounts for 5%
of the mix.
The brands in our
Results Vault are
only using it at
3%.
Cases: 16
0%
20%
40%
60%
80%
100%
BrandScience Results Vault – Europe ‘Leisure & Entertainment’ Campaigns using Cinema – Jan 2012
26
Brands should
take money out
of Outdoor and
put into Cinema.
Leisure and Entertainment has a more varied media mix –
online accounts for 15% - Cinema is still at 1%
63%
0%
20%
9%
40%
TV
Print
Outdoor
60%
Radio
Online
6%
7%
80%
Cinema
BrandScience Results Vault – Europe ‘Leisure & Entertainment’ Campaigns – Feb 2012
27
15%
1%
100%
Average Carryover
Rate
There is less variation in carryover rates in the Leisure
and Entertainment industry
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
51%
43%
35%
20%
TV
Print
24%
Outdoor Radio
Maximum
Minimum
Average
13%
Online Cinema
BrandScience Results Vault – Europe ‘’Leisure & Entertainment’ Campaigns using Cinema – Feb 2012
28
Cases: 16
FMCG - Impulse – Cinema delivers better than Print and
Outdoor
TV, Radio and Online have higher ROIs
€ 3,50
Europe – FMCG – Impulse. RROI
€ 3,09
Print
Outdoor
Radio
Online
Cinema
€ 3,03 € 3,02
€ 3,00
€ 2,50
R-Squared (average) : 85.68% TV
€ 2,12
€ 2,05
€ 2,00
€ 1,37
€ 1,50
Cinema accounts for
6% of the media mix
in the FMCG –
Impulse category.
€ 1,00
€ 0,50
€65%
0%
20%
5% 10% 9% 6% 6%
40%
60%
80%
100%
Brands should move
money from Outdoor
into Cinema.
Cases: 18
BrandScience Results Vault – Europe ‘FMCG Impulse’ Campaigns using Cinema – Jan 2012
29
Cinema is larger proportion of media mix in Impulse
category – accounting for 4% of the media mix
86%
75%
1%
80%
85%
TV
Print
Outdoor
4%
3%
2%
90%
Radio
Online
95%
Cinema
BrandScience Results Vault – Europe ‘Impulse’ Campaigns – Feb 2012
30
4%
100%
Average Carryover
Rate
TV and Cinema are the standout media in this category –
almost twice the carryover rates of other media
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
55%
51%
22%
TV
Print
28%
24%
Outdoor Radio
24%
Online Cinema
Cases: 18
BrandScience Results Vault – Europe ‘IImpulse’ Campaigns using Cinema – Feb 2012
31
Maximum
Minimum
Average
In the FMCG Food & Drink category, Cinema is the most
effective media
Cinema is the standout media for this industry,
but is never a primary medium
Europe – FMCG – Food & Drink. RROI
€ 6,00
€ 4,80
€ 5,00
TV
Print
Outdoor
Radio
Online
Cinema
€ 4,00
€ 3,00
€ 2,42
€ 2,00
€ 1,81
€ 1,86
€ 1,21
€ 1,00
R-Squared (average) : 89.17%
€ 0,76
€63%
0%
20%
8% 10% 4% 7% 7%
40%
60%
80%
100%
The average % of Cinema
used in this industry is 7%.
Cases: 7
BrandScience Results Vault – Europe ‘FMCG - Food & Drink’ Campaigns using Cinema – Feb 2012
32
In Food & Drink, Cinema accounts for 2% of the media
mix
79%
0%
20%
40%
TV
Print
Outdoor
6%
60%
Radio
Online
80%
Cinema
BrandScience Results Vault – Europe ‘Food & Drink’ Campaigns – Feb 2012
33
9% 3%
1%
2%
100%
Cinema has the strongest carryover of all media in the
FMCG (non impulse) category
100%
80%
60%
61%
54%
40%
68%
Maximum
Minimum
Average
55%
42%
40%
20%
0%
TV
Print
Outdoor
Radio
Online
Cinema
Cases: 7
BrandScience Results Vault – Europe ‘Non - IImpulse’ Campaigns using Cinema – Feb 2012
34
Conclusions – Cinema
RROI section
Cinema is one of the more effective non primary media in
every category. We can prove the RROI, and suggest which
media money should move out of, and into Cinema
35
3
1. Introduction, Econometrics case study and our Meta data
What % of cinema is best?
2. Cinema effectiveness vs other media – RROIs by medium – Category by Category
Cinema Effectiveness: Scatterplots and
Tertile analysis
4. How Cinema helps overall campaign (Total Comms) Effectiveness
3. What % of cinema is best? Cinema Effectiveness tertile analysis
36
Scatterplots show us the relationship with levels of
spend. First Services. And Cinema RROI
The optimum level of Cinema spend for
maximum RROI is 4% of the media mix
We fit a line of best fit to
the services model
points.
15,00 €
10,00 €
5,00 €
0,00 €
0%
2%% Cinema
4%spend in6%
media mix8%
10%
12%
The optimal % of Cinema
appears to be 4%.
The revenue chart shows
that revenue levels are
still strong past this level.
Revenue
Cinema average
revenue ROI
Europe – Services. Cinema RROI vs % cinema in mix
0%
2%
4%
6%
8%
% Cinema spend in media mix
10%
12%
Cases: 19
Each point represents a services
model in a market
37
Scatterplots show us the relationship with levels of
spend. Now Goods. And Cinema RROI
Relationship between % Cinema in the media mix and
Cinema RROI is not very strong
Europe – FMCG Cinema RROI vs % cinema in mix
We fit a line of best fit to
the FMCG model points.
5,00 €
0,00 €
0%
2%
4%
% Cinema in media mix
6%
8%
% Cinema 4%
in media mix
6%
8%
Revenue
Cinema Average
Revenue ROI
10,00 €
0%
2%
Although Cinema RROI is
fairly stable as % Cinema
increases, the Revenue
chart shows the optimal
investment level is around
6%, and that cinema
should always be used at
at least 2%
Cases: 39
BrandScience Results Vault – Europe ‘FMCG’ Campaigns using Cinema (no outliers) – Feb 2012
38
Scatterplots show us the relationship with levels of
spend. Now Services. And TV RROI
The optimum level of TV spend for
maximum RROI is 55% of the media mix
TV average revenue ROI
Europe – Services. TV RROI vs % TV in mix
20,00 €
18,00 €
16,00 €
14,00 €
12,00 €
10,00 €
8,00 €
6,00 €
4,00 €
2,00 €
0,00 €
We fit a line of best fit to
the services model
points.
The optimal % of TV
appears to be 55%.
0%
20%
40%
60%
80%
% TV spend in media mix
Cases: 18
Each point represents a services model in a market
39
Scatterplots show us the relationship with levels of
spend. Now Goods. And TV RROI
The optimum level of TV spend for
maximum RROI is 60% of the media mix
Europe – FMCG. TV RROI vs % TV in mix
TV average revenue ROI
8,00 €
7,00 €
We fit a line of best fit to
the goods model points.
6,00 €
5,00 €
4,00 €
The optimal % of TV
appears to be 60%.
3,00 €
2,00 €
1,00 €
0,00 €
0%
20%
40%
60%
80%
100%
120%
% TV spend in media mix
Cases: 36
Each point represents a goods
model in a market
40
Understanding tertile analysis
Scatter plots help us to see patterns in the data quickly, but sometimes it
isn’t always clear what the key take outs should be.
Tertile analysis simplifies the chart , it splits data points into three groups
(of equal size) based on the proportion of Cinema spend – LOW, MEDIUM
& HIGH,
Positive Result
Potential Result
Negative Result
Colour Coding for the result
(shown in the title bar)
41
Understanding tertile analysis
Tertile analysis splits horizontal data points
into three groups of equal size,
LOW, MEDIUM & HIGH
for a metric (e.g. % of Cinema Spend).
By plotting the three groups we can see if there
is a linear or hump result, which we infer is “due
to” the levels of the metric.
42
For service brands, Cinema effectiveness improves as
its proportion increases in the media mix
Campaigns where Cinema accounts for 1 – 4% of the mix are
most effective – but high is still better than low
€ 5,00
€ 4,50
€ 4,00
€ 3,50
€ 3,00
€ 2,50
€ 2,00
€ 1,50
€ 1,00
€ 0,50
€Cinema Average
Revenue ROI
Tertiles based on % of
Cinema in the media mix
Europe - Services
Tertile
Low
Medium
High
€ 2,65
€ 4,37
€ 3,12
Band
Cases
Low
0 – 1%
6
Medium
1 – 4%
7
High
5– 10%
6
Tertiles suggest that Cinema
experiences diminishing
returns somewhere in the
medium/high tertile – i.e from
4% onwards.
BrandScience Results Vault – Europe ‘Services’ Campaigns using Cinema (no outliers) – Feb 2012
43
FMCG total : Cinema delivers high ROI but increasing
the % of Cinema does not improve effectiveness
FMCG campaigns with lower % Cinema
deliver higher total comms RROIs
Europe – FMCG
€ 6,00
Tertiles based on % of
Cinema in the media mix
€ 5,00
Tertile
€ 4,00
€ 3,00
€ 1,00
€Cinema Average
Revenue ROI
Low
Medium
High
€ 5,25
€ 3,58
€ 2,02
Cases
Low
0 – 2%
13
Medium
2 – 6%
13
6 – 20%
13
High
€ 2,00
Band
Tertiles suggest that
Cinema experiences
diminishing returns quickly
in the goods market.
BrandScience Results Vault – Europe ‘FMCG’ Campaigns using Cinema (no outliers) – Feb 2012
44
Leisure/Entertainment: As % of Cinema increases, so
does its effectiveness
High tertile RROI is highest– RROI three times that
of the low tertile
€ 4,50
€ 4,00
€ 3,50
€ 3,00
€ 2,50
€ 2,00
€ 1,50
€ 1,00
€ 0,50
€Cinema Average
Revenue ROI
Europe – Leisure & Entertainment
Tertiles based on % of
Cinema in the media mix
Tertile
Band
Low
0 – 1%
6
Medium
1 – 3%
5
4 – 10%
5
High
Low
Medium
High
€ 1,37
€ 3,98
€ 4,24
Cases
Medium and High tertiles
perform considerably
better than low tertiles.
BrandScience Results Vault – Europe ‘Leisure & Entertainment’ Campaigns using Cinema (no outliers) – Jan 2012
45
FMCG IMPULSE Strong performance from relatively
low % Cinema campaigns skews results
Some strong campaigns from the Nordics are skewing
the results towards lower % Cinema
€ 3,00
Europe – FMCG – Impulse
€ 2,50
Tertiles based on % of
Cinema in the media mix
Tertile
€ 2,00
€ 1,50
€ 0,50
€Cinema Average
Revenue ROI
Low
Medium
High
€ 2,51
€ 1,96
€ 1,90
Cases
Low
0 – 2%
6
Medium
3 – 6%
6
7 – 17%
6
High
€ 1,00
Band
Results suggest in FMCG –
Impulse industry, % of Cinema
should account for under 2%
of media mix to be at its most
efficient.
BrandScience Results Vault – Europe ‘FMCG (Impulse)’ Campaigns using Cinema (no outliers) – Feb 2012
46
FOOD & DRINK Strongest performance for Cinema in the
low tertile, but high tertile has strong performance too
Unclear results for Cinema’s own effectiveness – Low and Medium
perform differently but have similar % of Cinema
Europe – FMCG – Food & Drink
€ 7,00
€ 6,00
€ 5,00
€ 4,00
€ 3,00
€ 2,00
€ 1,00
€Cinema Average
Revenue ROI
Tertiles based on % of
Cinema in the media mix
Tertile
Medium
High
€ 6,55
€ 3,43
€ 5,10
Cases
Low
4 – 5%
2
Medium
5 – 6%
3
12–17%
2
High
Low
Band
Mixed results in the FMCG Food & Drink category, the
optimal % of Cinema could be
4 – 5% but might be over 12%.
BrandScience Results Vault – Europe ‘FMCG - Food & Drink’ Campaigns using Cinema (no outliers) – Feb 2012
47
4
1. Introduction, Econometrics case study and our Meta data
2. Cinema effectiveness vs other media – RROIs by medium – Category by Category
How Cinema helps overall campaign (Total
Comms)
Effectiveness
3.
What % of cinema
is best? Cinema Effectiveness tertile analysis
4. How Cinema helps overall campaign (Total Comms) Effectiveness
48
Integrated Effects
So far we’ve looked at the direct effectiveness of Cinema
relative to other medium in the media mix
But how does Cinema synergise with other media and
impact the overall campaign effectiveness?
49
Turning to Total Campaign RROI vs Cinema in the mix,
first Services
The optimum level of Cinema spend is
again 4% of the media mix
Total comms
revenue ROI
Europe - Services
€ 12,00
€ 10,00
€ 8,00
€ 6,00
€ 4,00
€ 2,00
€ 0,00
0%
2%
4%
6%
% Cinema spend in media mix
8%
10%
Increasing the proportion of
Cinema in the media mix
contributes positively to the
overall effectiveness of the
comms activity
Revenue
The maximum campaign
RROI is delivered when
cinema is around 4% of the
media mix.
0%
2%
4%
6%
% Cinema spend in media mix
8%
10%
Cases: 19
BrandScience Results Vault – Europe ‘Services’ 50
Campaigns using Cinema (no outliers) – Feb 2012
Total Campaign RROI, so Cinema total effects, a clear
result in the Goods analysis
Up to a certain point – after Cinema advertising accounts
from around 6% of the mix, it becomes less effective
Europe - FMCG
Total comms
revenue ROI
8,00 €
6,00 €
4,00 €
2,00 €
0,00 €
5%
10%
15%
% Cinema spend in media mix
20%
25%
Revenue
0%
0%
5%
10%
15%
% Cinema spend in media mix
20%
25%
Increasing the proportion
of Cinema in the media
mix contributes positively
to the overall
effectiveness of the
comms activity up to
around 6% of the media
mix.
Cinema % should be less
than 12% for highest
revenue effect
Cases: 39
BrandScience Results Vault – Europe ‘FMCG’ Campaigns using Cinema (no outliers) – Feb 2012
51
Scatterplots show us the relationship with levels of
spend. Now Services. And Total Campaign RROI
The optimum level of TV spend for
maximum RROI is 55% of the media mix
Europe – Services. Total Comms RROI vs % TV in mix
Total Comms revenue ROI
30,00 €
25,00 €
We fit a line of best fit to
the services model
points.
20,00 €
15,00 €
10,00 €
The optimal % of TV
appears to be 55%.
5,00 €
0,00 €
0%
20%
40%
60%
80%
% TV spend in media mix
Cases: 18
Each point represents a services model in a market
52
Scatterplots show us the relationship with levels of
spend. Now Goods. And TV RROI
The optimum level of TV spend for
maximum RROI is 60% of the media mix
Europe – FMCG. Total Comms RROI vs % TV in mix
Total Comms revenue ROI
7,00 €
6,00 €
We fit a line of best fit to
the goods model points.
5,00 €
4,00 €
3,00 €
The optimal % of TV
appears to be 60%.
2,00 €
1,00 €
0,00 €
0%
20%
40%
60%
80%
100%
120%
% TV spend in media mix
Cases: 36
Each point represents a goods model in a market
53
For Goods, it appears that spending below 2% on
Cinema drives the best Total Comms RROI
The Low % tertile delivers the highest overall comms return
€ 5,00
€ 4,50
€ 4,00
€ 3,50
€ 3,00
€ 2,50
€ 2,00
€ 1,50
€ 1,00
€ 0,50
€Total Comms
Revenue ROI
Tertiles based on % of
Cinema in the media mix
Europe - FMCG
Tertile
Low
Medium
High
€ 1,37
€ 4,49
€ 2,70
€ 1,69
Cases
Low
0 – 2%
13
Medium
2 – 6%
13
6 – 20%
13
High
No
cinema
Band
Spending on Cinema always
drives a positive effect on
Total Comms, but this is much
greater when spend is lower.
BrandScience Results Vault – Europe ‘FMCG’ Campaigns using Cinema (no outliers) – Feb 2012
54
For services increasing % of Cinema from Low to High
always improves the overall comms effect
Although diminishing returns do set in in the high spend tertile
Tertiles based on % of
Cinema in the media mix
Europe - Services
€ 7,00
€ 6,00
Tertile
Band
Cases
€ 5,00
Low
0 – 1%
6
€ 4,00
Medium
1 – 4%
7
€ 3,00
High
5– 10%
6
€ 2,00
Medium % almost twice as
effective as low % tertile.
Low % tertile is always the
least effective.
Our set of services not using
Cinema, deliver high RROI but
these are generally financial
service cases
€ 1,00
€Total Comms
Revenue ROI
No
cinema
Low
Medium
High
€ 6,23
€ 3,34
€ 6,59
€ 4,68
BrandScience Results Vault – Europe ‘Services’ Campaigns using Cinema (no outliers) – Feb 2012
55
There is a mixed picture when we look at the overall
comms effect of Health & Beauty
Total RROIs are low, but high % Cinema tertile delivers greatest returns
€ 0,70
Tertiles based on % of
Cinema in the media mix
€ 0,60
Tertile
Europe – Health & Beauty
Band
Cases
€ 0,50
Low
0 – 1%
3
€ 0,40
Medium
1 – 2%
4
€ 0,30
High
5 – 18%
4
€ 0,20
€ 0,10
€Total Comms
Revenue ROI
No
cinema
Low
Medium
High
€ 0,65
€ 0,36
€ 0,29
€ 0,49
Most effective tertile is high %
of Cinema in the mix. There is
however an unexpected dip in
the medium tertile.
BrandScience Results Vault – Europe ‘Health & Beauty’ Campaigns using Cinema (no outliers) – Feb 2012
56
But there is a strong clear relationship in the Leisure &
Entertainment category
Medium and High tertile much more effective than low. Diminishing
returns experienced in the High tertile
€ 7,00
Europe – Leisure & Entertainment
Tertiles based on % of
Cinema in the media mix
€ 6,00
€ 5,00
Tertile
Band
Cases
€ 4,00
Low
0 – 1%
6
€ 3,00
Medium
1 – 3%
5
€ 2,00
High
4 – 10%
5
€ 1,00
€Total Comms Revenue
ROI
No
cinema
Low
Medium
High
€ 4,24
€ 3,08
€ 6,62
€ 6,11
It is likely that the optimal % of
Cinema for overall comms
effect is between medium and
high tertile, maybe around
3.5%
BrandScience Results Vault – Europe ‘Leisure & Entertainment’ Campaigns using Cinema (no outliers) – Jan 2012
57
Low % tertile is best but diminishing returns are not as
strong as in other markets
Increasing % Cinema into Medium and High tertile reduces Cinema RROI
€ 3,50
Tertiles based on % of
Cinema in the media mix
€ 3,00
Tertile
Europe – FMCG - Impulse
Band
Cases
€ 2,50
Low
0 – 2%
6
€ 2,00
Medium
3 – 6%
6
€ 1,50
High
7 – 17%
6
€ 1,00
€ 0,50
€Total Comms
Revenue ROI
No
cinema
Low
Medium
High
€ 1,69
€ 3,16
€ 2,74
€ 2,30
FMCG - Impulse category
benefits from increases in %
of Cinema up to 6% of the mix.
BrandScience Results Vault – Europe ‘FMCG - Impulse’ Campaigns using Cinema (no outliers) – Feb 2012
58
Overall Food & Drink comms effect also improves as %
of Cinema increases
Total Comms RROI improves as % Cinema increases – high tertile is
much more effective
Europe – FMCG – Food & Drink
€ 3,00
Tertiles based on % of
Cinema in the media mix
Tertile
€ 2,50
€ 2,00
€ 1,50
Band
Cases
Low
4 – 5%
2
Medium
5 – 6%
3
12–17%
2
High
€ 1,00
€ 0,50
€Total Comms
Revenue ROI
No
cinema
Low
Medium
High
€ 1,35
€ 1,95
€ 1,96
€ 2,62
Optimal % of Cinema for Total
Comms RROI is 12 – 17% in
the FMCG - Food & Drink
industry.
BrandScience Results Vault – Europe ‘FMCG – Food & Drink’ Campaigns using Cinema (no outliers) – Feb 2012
59
Another way of showing the effect of Cinema on total campaign effect
Comparing the overall campaign RROI, and
of brands who use cinema, with that of those who don't
60
TV RROI
We report the Campaign RROI for a peer group of brands
NOT using cinema, and compare with our set of brands
that do use Cinema
€ 6,00
Total Comms RROI for each sub category group
€ 5,00
€ 4,00
€ 3,00
€ 2,00
€ 1,00
€Health & Beauty
FMCG
Impulse
Food & Drink
Leisure & Entertainment
Brands not using Cinema
€ 0,65
€ 1,05
€ 1,69
€ 1,35
€ 4,24
Brands using Cinema
€ 0,38
€ 2,91
€ 4,84
€ 2,14
€ 5,13
All sub-categories (apart from Health & Beauty) have
stronger total media effect when Cinema is used
61
Repeating the exercise looking at TV effectiveness
€ 7,00
€ 6,00
€ 5,00
€ 4,00
€ 3,00
€ 2,00
€ 1,00
€Health & Beauty
FMCG
Impulse
Food & Drink
Leisure & Entertainment
TV RROI
Brands not using
Cinema
€ 0,71
€ 1,24
€ 2,49
€ 1,48
€ 5,10
Brands using Cinema
€ 0,38
€ 2,09
€ 3,09
€ 2,42
€ 5,87
Our analysis finds that TV needs Cinema to work
well – again, apart from
Health & Beauty
62
Summary of conclusions – SAWA Project 1 Europe
Across nearly all categories, total media effect is strongest when Cinema
is included in the media mix
There is also strong evidence that TV advertising needs the support of
Cinema to perform at its best
Cinema is one of the more effective non primary media in every
category. It delivers direct effect BUT ALSO HELPS BOOST
EFFECTIVENESS OF THE OVERALL CAMPAIGN
We recommend 6% for FMCG brands, 5% for Leisure/Entertainment
brands, and 4% for Services brands
63
That was Total Europe!
We have regional or individual results for all
Project 1 sponsors
And lots more learnings and case studies to
share in individual session
64
Sector: Germany - FMCG – Impulse
Brand Status: Established
Media used: Cinema, TV, Online,
Radio, Outdoor, Magazines
Cinema delivers a greater revenue return on investment than TV
Introduction to campaign and KPI
In 2009, BrandScience presented the findings of a model built to determine the drivers of an FMCG – Impulse brand’s sales. The brand
had recently begun to incorporate more engaging and salient creatives in their marketing and were utilising strong brand ATL media
with sponsored online space.
€ 4.00
€ 3.50
€ 3.00
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€-
€ 3.50
€ 2.46
€ 1.10
TV 69%
Relevant Cinema findings
Cinema 24%
Online 7%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
RROI
% Spend
Cinema was the most effective ATL media in the model, driving RROIs twice of that of TV.
Although Online sponsorship was the most effective media at driving sales returns, modelling could not find a strong carryover effect.
Cinema however delivered a carryover rate of 60% for the 2nd model –it continued to deliver strong returns over the longer term.
65
Appendix
Categories included within the analysis
Categories
FMCG
Goods
Services
Sub Categories
Drink
Food
Health+Beauty
Household
Impulse
Media
Automotive
Durable goods
Software
Directories
Government
Information
Leisure/Entertainment
Personal finance
Recruitment
Retail
Software
Telecoms
Travel
Included in this analysis
Yes – created into food and drink
Yes
Yes
Yes
No
No
No
No
Yes
No
No
Yes
No
No
Yes
No
No
No
66