Transcript Case Study How Kellogg’s Brands Work Their Digital Strategies Aaron Fetters Associate Director Global Digital Strategy & Analytics Kellogg’s Jeff Smith CMO & SVP Client Services Vizu.

Case Study
How Kellogg’s Brands Work Their
Digital Strategies
Aaron Fetters
Associate Director
Global Digital
Strategy & Analytics
Kellogg’s
Jeff Smith
CMO & SVP
Client Services
Vizu
The Online Advertising Outlook for 2012
Industry Study
• A survey of more than 450 digital marketing and media
professionals conducted in late 2011 by Digiday Media & Vizu
• Participants included Brand Marketers, Media Agencies, and
Media Sellers
• Questions covered both the online brand advertising outlook for
2012 in addition to best practices for online brand advertising
The Online Advertising Outlook for 2012
Online considered a powerful brand-building medium
• Direct Response Advertising Growing:
– 56% of brands respondents said they will increase spending
in 2012
– 15% said they will increase spending by more than 20%
• Brand Advertising Growing Even Faster:
– 64% of brand respondents said they will increase spending
in 2012
– 22% said they will increase spending by more than 20%
The Online Advertising Outlook for 2012
Brand Advertising surpassing Direct Response for 1st time
Brands: What type of digital advertising do you plan to use in 2012?
Direct
Response
41%
Branding
59%
The Online Advertising Outlook for 2012
Some channels growing faster then others
Brands: How will brand ad spending in the following channels compare to prior year?
Mobile Advertising
69%
Social Media Advertising
63%
Video Advertising
34%
57%
Rich Media Advertising
34%
29%
Standard Display Advertising
20%
Connected TV/IPTV
17%
0%
Increase
26%
57%
60%
37%
20%
40%
Stay about the same
60%
Decrease
80%
100%
Don't Use
120%
The Online Advertising Outlook for 2012
Brand’s Perspective: What would make it better?
Brands: Which of the following would lead you to increase spending on online brand
advertising? (Check all that apply)
Improved clarity around the actual return
on your brand advertising investment
68%
Ability to verify my brand advertising
created the desired result (e.g. increased
awareness of my product)
Ability to use the same metrics to evaluate
brand advertising effectiveness online as
are used offline
Purchasing efficiency (e.g. the ability to
reach audience at scale through fewer
outlets)
Ability to verify my online brand advertising
was actually delivered to my target
audience
56%
53%
50%
38%
Cleaning up the
“Metrics
Morass” in the
online medium
The Online Brand Advertising Outlook for 2012
Challenge: The online “metrics morass”
Commenting on the amount of data bandied around in
the online ecosystem, 34% of Brands stated:
“I’m drowning in data; I would prefer to focus on a
few meaningful metrics to evaluate the
performance of my campaign”
The Online Brand Advertising Outlook for 2012
Challenge: The online “metrics morass”
Asked what they typically
report, Media Sellers say:
Asked to what extent they would like to leverage
offline metrics in the online medium, brands say:
The exact same metrics, and nothing else
6%
10%
The exact same metrics, and a few
additional metrics specific to the online
medium
55%
Some of the metrics from the offline
medium, some metrics specific to the
online medium
14%
24%
Just metrics specific to the online medium
30%
15%
0%
10%
20%
47%
30%
40%
50%
60%
0%
10%
20%
30%
40%
50%
The Online Brand Advertising Outlook for 2012
Challenge: The online “metrics morass”
Asked specifically for the most appropriate metrics for brand advertising,
marketers responded:
Brand Lift generated as a result of the
advertising
80%
Sales generated as a result of the
advertising
57%
Interaction rates with the advertising
31%
Clickthrough rates on the advertising
29%
Shares or re-posts of the advertising
29%
Time spent / Dwell time (e.g. on a microsite)
20%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
The Online Brand Advertising Outlook for 2012
Additional challenges
Other key things brand advertisers are looking for:
• Proof on the front end: Only 6% of brand surveyed said they “Strongly
believe” media sellers claims they can reach the custom / niche audiences
the brands are looking for.
• Results on the back end: Nearly all respondents identified “in-market
optimization of campaigns against relevant Brand Metrics” and “Proof of
performance” as critical to maximizing ROI
The Online Brand Advertising Outlook for 2012
Conclusion
• In 2012, brand advertising is set to finally surpass performance based
advertising in the online medium
• That said, the outlook could be even better, if we work to clean up the
“metrics morass” in the online medium
• Use metrics that matter to maximize the return on your online brand
advertising investment
Download the full report
http://brandlift.vizu.com/knowledge-resources/research/2012-industry-outlook/
Benchmark Your Brand Advertising IQ based on this Survey
http://brandlift.vizu.com/knowledge-resources/brand-ad-iq/
Real Time Optimization Based on Metrics That Matter
Aaron Fetters – The Kellogg Company
It’s about getting the MOST
out of the $ you have
– We aren’t all the New York
Yankees (or Chelsea Football
Club)
Don’t buy players, buy wins
Identify stats indicative of
GAMES WON, vs. stats that
are easy to count
– On-base % vs. HR, RBI, etc.
– Wins Above Replacement
Digital Measurement – From a Brand’s Perspective
• Kellogg Company Background
• Where We’ve Been
– Challenges in Digital Measurement
• Where We Are
– Establishing Goals and KPIs
– What Have We Learned
• Where We Are Going
– Enhanced Planning
– Informed Buying
– Near-time Optimization
• What it Means for Media and Measurement Partners
Manufacturer and Marketer of some of America’s
favorite food brands
• Attracting more of our
consumers’ media time
• Attracting more of our
Brands’ media $$$
• But filled with endless
options – our Brands are
looking for guidance
Though broad, historical efforts to track and measure digital have
been disjointed
1.
In the past 6
months we have
focused on the
opportunities to:
2.
3.
Define a common set of Goals for
Digital Media
Establish the KPIs (metrics) that
REALLY matter to track against our
Goals
Develop and communicate a
Digital Measurement Framework,
along with Principles for how we
will track Digital and capture KPI
results
Establishing a model for Media Effectiveness – applied initially to
Online Media
PRE-MARKET QUALITY
Does my creative have the right
to succeed?
AUDIENCE DELIVERY
Did we efficiently reach our
Target?
IN-MARKET
EFFECTIVENESS
Are we moving the needle?
• Branded Recognition
• Brand Buy Next
•
•
•
•
% Impressions to Target
Frequency of Exposure
% Impressions in View
CPM
•
•
•
•
Brand Awareness
Purchase Interest
Message Association
Direct Response
Campaign targeted to a Hispanic
audience
“oh my gosh you are
the best ever totally re-worked my
plan just now. thank
you so
much!!!!!!!!!!!!!!!!!!!!”
One publisher delivering only 1.2%
of our Impressions to the
demographic Target audience (that’s
a 98.8% waste folks)
However, another publisher had a
Targeting Efficiency of 5.1 – meaning
their Targeting ability allowed us to
reach our Target 5X better than if we
bought Run Of Network
Let’s take a look at
a few of our biggest
campaigns from
2011
(Data provided is at an
individual publisher,
individual campaign
level)
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
These publishers
effectively delivered to
our target and efficiently
balanced the exposures
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
Conversely, this execution
is generating a great deal
of reach, but 75% is to
someone other than our
Target audience
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
And in this case
Impressions are virtually
being thrown away as the
wrong audience is
reached over and over
again
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
15.7
21.04%
24.68%
Publisher is doing a nice
job of finding our Target.
Did we ask for Frequency
capping with them?
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
15.7
21.04%
24.68%
14.5
69.57%
60.55%
Incredible targeting
results from a high reach
portal
Opportunity to shift $
here to reach more of our
target, at an increased
frequency
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
15.7
21.04%
24.68%
14.5
69.57%
60.55%
2.9
80.80%
80.48%
Near-Time
Decisions and
Optimizations
Cost per
Effective
Advertising
Effectiveness Audience
Impression
Insights
Online
Audience
Delivery
Insights
2011
2012
Cross-Media
measurement and
optimization?
2013
We have begun to build the foundation of our Digital Measurement needs. We now want
to move toward our vision of enabling near real-time decision making and optimization
based on knowledge and insights of what is working.
Efficiency/Effectiveness Publisher Overview
80.0%
% of Target
60.0%
40.0%
20.0%
0.0%
$0.00
$3.00
$6.00
$9.00
$12.00
CPM
•Improved DSP / Portal / Publisher evaluation based on historical performance
•Dig in deeper with Top Performers! – improve or eliminate buys far outside our KPIs
•Next step is to layer in Advertising Effectiveness
11/6/2015
Conversations previously NOT had with “Partner A”:
“in compliance with our 2011 RFP, we would like to
work with you to create makegoods for the following
campaigns:
•Special K Evening Snacking Q2/Q3
•Frosted Mini-Wheats
•Special K Fall Challenge
•Crunchy Nut”
Conversations needed with Partner X:
•What targeting approaches were used against Fiber
Plus and Special K but not applied to Nutri-Grain?
Publisher Performance Across Three Similar Campaigns
Partner X
Yahoo!
Fiber Plus OLM Q3
Nutri-Grain OLM Q3
Special K OLM
Target
F25-54
F25-54 w-kids
F25-54
Average of
Impressions % on Target
CPM
Sum of
Impressions Total
79.00%
24.80%
51.10%
$3.44
$3.83
$4.92
20,284
14,208
26,340
Combining Insights with costs to answer: HOW CAN I GET THE
BIGGEST BANG FOR MY BUCK?
At a campaign level we need
to drive optimization
decisions in near real-time
$
Media
Partner
Avg.
Frequency
Impressions
in Target
Impressions
in View
Lift in
Awareness
CPM
1
3.5
24.5%
83%
5.74
$2.44
2
3.0
16.9%
91%
0.55
$9.08
3
8.4
23.5%
71%
0
$8.62
•Opportunity to optimize - $ follow performance
•Multiple publishers, each with high reach potential
•Wide variance in performance observed real-time
Media Partners
Performance and results are the key to
increased investments – help us get
more!
Market Mix Models will reflect the
quality of what goes into them.
Measurement Providers
Need continued research and analysis of
which metrics matter!
Rigorous and diligent pursuit of Research
Quality
Don’t just win
Real Time Optimization Based on Metrics That Matter
Budweiser Tackles a New Approach to
Content"
Aaron Fetters – The Kellogg Company
It’s about getting the MOST
out of the $ you have
– We aren’t all the New York
Yankees (or Chelsea Football
Club)
Don’t buy players, buy wins
Identify stats indicative of
GAMES WON, vs. stats that
are easy to count
– On-base % vs. HR, RBI, etc.
– Wins Above Replacement
Digital Measurement – From a Brand’s Perspective
• Kellogg Company Background
• Where We’ve Been
– Challenges in Digital Measurement
• Where We Are
– Establishing Goals and KPIs
– What Have We Learned
• Where We Are Going
– Enhanced Planning
– Informed Buying
– Near-time Optimization
• What it Means for Media and Measurement Partners
Manufacturer and Marketer of some of America’s
favorite food brands
• Attracting more of our
consumers’ media time
• Attracting more of our
Brands’ media $$$
• But filled with endless
options – our Brands are
looking for guidance
Though broad, historical efforts to track and measure digital have
been disjointed
1.
In the past 6
months we have
focused on the
opportunities to:
2.
3.
Define a common set of Goals for
Digital Media
Establish the KPIs (metrics) that
REALLY matter to track against our
Goals
Develop and communicate a
Digital Measurement Framework,
along with Principles for how we
will track Digital and capture KPI
results
Establishing a model for Media Effectiveness – applied initially to
Online Media
PRE-MARKET QUALITY
Does my creative have the right
to succeed?
AUDIENCE DELIVERY
Did we efficiently reach our
Target?
IN-MARKET
EFFECTIVENESS
Are we moving the needle?
• Branded Recognition
• Brand Buy Next
•
•
•
•
% Impressions to Target
Frequency of Exposure
% Impressions in View
CPM
•
•
•
•
Brand Awareness
Purchase Interest
Message Association
Direct Response
Campaign targeted to a Hispanic
audience
“oh my gosh you are
the best ever totally re-worked my
plan just now. thank
you so
much!!!!!!!!!!!!!!!!!!!!”
One publisher delivering only 1.2%
of our Impressions to the
demographic Target audience (that’s
a 98.8% waste folks)
However, another publisher had a
Targeting Efficiency of 5.1 – meaning
their Targeting ability allowed us to
reach our Target 5X better than if we
bought Run Of Network
Let’s take a look at
a few of our biggest
campaigns from
2011
(Data provided is at an
individual publisher,
individual campaign
level)
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
These publishers
effectively delivered to
our target and efficiently
balanced the exposures
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
Conversely, this execution
is generating a great deal
of reach, but 75% is to
someone other than our
Target audience
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
And in this case
Impressions are virtually
being thrown away as the
wrong audience is
reached over and over
again
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
15.7
21.04%
24.68%
Publisher is doing a nice
job of finding our Target.
Did we ask for Frequency
capping with them?
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
15.7
21.04%
24.68%
14.5
69.57%
60.55%
Incredible targeting
results from a high reach
portal
Opportunity to shift $
here to reach more of our
target, at an increased
frequency
Average Frequency
Impressions
Unique Viewers
Total Campaign
% on Target
% on Target
6
71.79%
61.26%
4.6
61.55%
38.67%
2.5
25.55%
27.52%
15.7
21.04%
24.68%
14.5
69.57%
60.55%
2.9
80.80%
80.48%
Near-Time
Decisions and
Optimizations
Cost per
Effective
Advertising
Effectiveness Audience
Impression
Insights
Online
Audience
Delivery
Insights
2011
2012
Cross-Media
measurement and
optimization?
2013
We have begun to build the foundation of our Digital Measurement needs. We now want
to move toward our vision of enabling near real-time decision making and optimization
based on knowledge and insights of what is working.
Efficiency/Effectiveness Publisher Overview
80.0%
% of Target
60.0%
40.0%
20.0%
0.0%
$0.00
$3.00
$6.00
$9.00
$12.00
CPM
•Improved DSP / Portal / Publisher evaluation based on historical performance
•Dig in deeper with Top Performers! – improve or eliminate buys far outside our KPIs
•Next step is to layer in Advertising Effectiveness
11/6/2015
Conversations previously NOT had with “Partner A”:
“in compliance with our 2011 RFP, we would like to
work with you to create makegoods for the following
campaigns:
•Special K Evening Snacking Q2/Q3
•Frosted Mini-Wheats
•Special K Fall Challenge
•Crunchy Nut”
Conversations needed with Partner X:
•What targeting approaches were used against Fiber
Plus and Special K but not applied to Nutri-Grain?
Publisher Performance Across Three Similar Campaigns
Partner X
Yahoo!
Fiber Plus OLM Q3
Nutri-Grain OLM Q3
Special K OLM
Target
F25-54
F25-54 w-kids
F25-54
Average of
Impressions % on Target
CPM
Sum of
Impressions Total
79.00%
24.80%
51.10%
$3.44
$3.83
$4.92
20,284
14,208
26,340
Combining Insights with costs to answer: HOW CAN I GET THE
BIGGEST BANG FOR MY BUCK?
At a campaign level we need
to drive optimization
decisions in near real-time
$
Media
Partner
Avg.
Frequency
Impressions
in Target
Impressions
in View
Lift in
Awareness
CPM
1
3.5
24.5%
83%
5.74
$2.44
2
3.0
16.9%
91%
0.55
$9.08
3
8.4
23.5%
71%
0
$8.62
•Opportunity to optimize - $ follow performance
•Multiple publishers, each with high reach potential
•Wide variance in performance observed real-time
Media Partners
Performance and results are the key to
increased investments – help us get
more!
Market Mix Models will reflect the
quality of what goes into them.
Measurement Providers
Need continued research and analysis of
which metrics matter!
Rigorous and diligent pursuit of Research
Quality
Don’t just win