Study links TV ad responses to CPG purchases
Consumer packaged goods (CPG) marketers could increase their sales with TV advertising by identifying consumers based on the products they purchase at retail checkouts, according to research by Nielsen Catalina conducted for CBS.
The technique suggests would build and expand upon the use of standard consumer demographics to provide CPG advertisers with a higher return on investment (ROI) and a level of accountability that has previously been difficult to achieve, according to CBS.
For CBS, Nielsen Catalina examined sales lifts generated by television campaigns across 18 different CPG categories to validate the hypothesis that using single-source data to link television viewing with purchaser data provides new insights that could be incorporated into the media planning and buying process.
The categories included snacks, prepared dinners, dairy, condiments, soft drinks and frozen items. The campaigns' sales impacts were analysed through two different lenses: the demographic group of women aged 18 to 49, and behaviourally defined heavy-category consumers.
The research found that improving campaign delivery to top category buyers - such as heavy detergent purchasers - can deliver 2.5 times more ROI leverage, or sales lift, than improving the delivery to a specific demographic, such as women aged 18 to 49.
The outcome will be positive for the networks which strive to achieve sales accountability for the media purchases made by their advertising clients, in part by having the ability to measure the return on investment among specific consumer groups. So-called "buyergraphics" are buyer segments based on purchase behaviour in the same way that ordinary demographics use age, gender and income to define an audience.
According to David Poltrack, chief research officer for CBS and president for CBS Vision, "These results point to an advancement that establishes brand purchaser segments as a new, valuable, additional resource for measuring and improving television advertising effectiveness."
Sources: Nielsen Catalina Solutions; CBS / The Marketing Factbook.
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