REAL RETURNS WHAT MATTERS MOST IN DIGITAL ADVERTISING Copyright ©2014 The Nielsen Company. Confidential and proprietary. THE EVOLUTION OF THE MEDIA LANDSCAPE #Consumer360 2 Copyright ©2014 The Nielsen Company. Confidential and proprietary. PRESENTATION SPEAKERS Kathy French Ross Link Scott McKinley Bob Rupczynski Nielsen Advertiser Solutions Nielsen Global MROI Solutions Nielsen Advertiser Solutions Kraft Foods Group #Consumer360 3 MORE PRECISE MEDIA CREATING MORE GRANULAR DATA SMALL DATA TV, Radio, Print NATIONAL MARKET Copyright ©2014 The Nielsen Company. Confidential and proprietary. MEDIUM DATA STORE In-store Merchandising BIG DATA Direct Mail, Digital, Social & Mobile HOUSEHOLD INDIVIDUAL #Consumer360 4 Copyright ©2014 The Nielsen Company. Confidential and proprietary. BRIDGE TRADITIONAL & NEW MARKETING REALITIES EMERGING CURRENT Enhanced Marketing Mix Modeling Full outlet & touchpoint CONTEXT with enhanced digital inputs Multi-touch Attribution Modeling Deep digital granularity FUTURE Enhanced Marketing Mix Model ONE VERSION OF TRUTH Full outlet & touchpoint context INTELLIGENT PRIORS CALIBRATION Next Generation Marketing Mix Model Full outlet & touchpoint CONTEXT with DEEP DIGITAL GRANULARITY DIGITAL MEDIA CONSORTIUM MULTI-TOUCH ATTRIBUTION MODELING #Consumer360 5 THE MOST COMPREHENSIVE STUDIES OF THEIR KIND MORE ACCURATE 12 Brands 3.79 536 2.4 132 11.3 Billion Million Billion Google Impressions Mix Models Million Total Sales Facebook Impressions Data Observations OUTCOMES Copyright ©2014 The Nielsen Company. Confidential and proprietary. DIGITAL MEDIA CONSORTIUM BETTER METHODOLOGY GREATER EFFICIENCY #Consumer360 6 NETWORK PATH ILLUMINATES PATH TO PURCHASE THE INFLUENCE OF ONE ACTIVITY ON ANOTHER Copyright ©2014 The Nielsen Company. Confidential and proprietary. NETWORK PATH EXAMPLE TV TV GRPs Drive Facebook Impressions FACEBOOK Facebook Impressions Drive Search Clicks GOOGLE SALES Google Search Clicks Drive Sales #Consumer360 7 A SAMPLING OF WHAT WE LEARNED other digital 3% Copyright ©2014 The Nielsen Company. Confidential and proprietary. 60% h Facebook 37% Direction of arrows indicates how volume shifted from one node to another as a result of Network Analysis #Consumer360 8 A SAMPLING OF WHAT WE LEARNED other digital online video 14% 13% 4% 15% 87% a 67% d Copyright ©2014 The Nielsen Company. Confidential and proprietary. g 1% 93% 15% 2% 80% broadband halo tv 5% 3% 60% h 4% f other digital 6% sampling PR 7% 37% j 4% 84% online video 3% 5% k 2% 93% 47% PR 0% 40% 50% l m Direction of arrows indicates how volume shifted from one node to another as a result of Network Analysis 4% 2% 58% n 3% 93% #Consumer360 9 Mean Relative Contributions* Recommended vs. Other Variants UNDERESTIMATION OF ROI FROM VARIOUS METHODS 31% OUTCOME Copyright ©2014 The Nielsen Company. Confidential and proprietary. RECOMMENDED METHODS YIELD BETTER MODELS & GREATER CONTRIBUTIONS 16% AVAILABLE TODAY Facebook * Brands that could not be read using recommended method are excluded Google #Consumer360 10 THE BASICS OF ATTRIBUTION MODELING WHAT IS IT? OUTCOMES • ROI Copyright ©2014 The Nielsen Company. Confidential and proprietary. • Big data • Connects person-level exposure to purchase • Real time • What’s working or not • Path to purchase • Predictive optimization • 1:1 precision #Consumer360 11 Copyright ©2014 The Nielsen Company. Confidential and proprietary. THE PROMISE OF MTA MAPPING THE NEW CONSUMER JOURNEY FROM THE IMMENSE MEDIA LANDSCAPE MEDIA TOUCHPOINTS SHOPPING BEHAVIORS Search Out of Home PURCHASE BEHAVIOR E-commerce Purchase Mobile Online Tablet Website TV Store In-store Purchase Direct Mail #Consumer360 12 Copyright ©2014 The Nielsen Company. Confidential and proprietary. NEW TOOLS ARE ACCELERATING THE SPEED WITH WHICH WE CAN ACQUIRE, PROCESS & ANALYZE DATA Panels Big data PPTs Dashboards Manual Machine learning Aggregate Granular Insights Action Weekly/ Monthly Real-time #Consumer360 13 Copyright ©2014 The Nielsen Company. Confidential and proprietary. MAKING SENSE OF THE NEW WEALTH OF INFORMATION Identified new opportunities Partnered with the best modelers Created the solution #Consumer360 14 Copyright ©2014 The Nielsen Company. Confidential and proprietary. MTA ATTRIBUTES SALES TO CAUSES, GOING DEEP ON DIGITAL Intended customer Display ad Video ad Social Email Search Brand web site E-commerce Physical store store Purchase $88 $134 $48 $32 $0 $64 Real-time Analytics: Attribution Value (incremental sales) $93 $60 $30 $51 $57 $9 #Consumer360 15 MARKETING INTELLIGENCE PLATFORM CLIENT DATA MARKETING DATABASE DASHBOARDS MTA PLATFORM x x x x Exposure Data Ecom In-Store Promo x Price x x x x x x PROGRAMMATIC BUYING • • • • Marketing ROI Attribution by touchpoint Allocation recommendation “What if” scenario planning Sales Data Buying Instructions x x x Media Cost R … x x Mail R3 j@.com x Radio C. Ko R2 x x Print R2 x TV I. Smith i@.com R1 x Sales Email R1 Web site j@.com Offline Social J. Doe Search UID Behavior sDisplay Email UID Demos Name Remove Personal Identifying Information Copyright ©2014 The Nielsen Company. Confidential and proprietary. Aud. Digital Marketing Mix Model MMM INTEGRATION #Consumer360 16 Copyright ©2014 The Nielsen Company. Confidential and proprietary. ROI SUMMARY $#.##M $#.##M +10k% #.##k% -1k% #.##m ###k $$$ $$ $ Masked for example purposes #Consumer360 17 Copyright ©2014 The Nielsen Company. Confidential and proprietary. ROI BY DISPLAY SITE & DEVICE Digital Source 1 Digital Source 3 Digital Source 2 Digital Source 5 Digital Source 4 Masked for example purposes Digital Source 7 Digital Source 6 Digital Source 9 Digital Source 8 Digital Source 10 PPC brand/ PPC brand/ PPC brand/ Device 1 Device 2 Device 3 Videocom…/ Device 4 Videocom…/ Device 5 Videocom…/ Device 6 #Consumer360 18 Copyright ©2014 The Nielsen Company. Confidential and proprietary. ROI OF SEARCH Masked for example purposes keyword combination1 ##,### $0.## $##,### keyword combination2 ##,### $0.## $##,### keyword combination3 ##,### $0.## $##,### keyword combination4 ##,### $0.## $##,### #Consumer360 19 Copyright ©2014 The Nielsen Company. Confidential and proprietary. PROJECTED ROI +##.#% Masked for example purposes +$###,### #Consumer360 20 Copyright ©2014 The Nielsen Company. Confidential and proprietary. WHAT THIS MEANS FOR KRAFT Revenue contribution for every touchpoint Total ROI, Channel, Device & Exposure Synergy Predictive optimization Programmatic, rules-based precision #Consumer360 21 WHERE WE’RE HEADED Integration with mix modeling for non-digital touch points Experimentation with set-top box, over-the-top & addressable TV data Addition of other variables Integration of Online Campaign Ratings, brand equity & others OUTCOMES Copyright ©2014 The Nielsen Company. Confidential and proprietary. ROI FOR EVERY TOUCHPOINT FORWARD-LOOKING OPTIMIZATION RULES-BASED PRECISION MARKETING #Consumer360 22 Copyright ©2014 The Nielsen Company. Confidential and proprietary. KRAFT: REVOLUTIONIZING MARKETING MISSION JOURNEY OUTCOME #Consumer360 23 AUDIENCE Q&A