CBS and NCS present highlights from over 30 studies
NEW YORK – Nielsen Catalina Solutions (NCS), in conjunction with CBS Corporation (NYSE: CBS.A and CBS), demonstrated the value of advertising’s long-term effectiveness through the results of their latest research collaboration, “Long-term Ad Effectiveness Measurement – Phase 2.” Findings highlight that advertising’s long-term effects drive brand loyalty, equity and higher future brand sales. Further, the long-term effectiveness metrics vary by brand and ad campaign.
NCS and CBS presented a body of work in 2014 at the ARF Audience Measurement 9.0 Conference on the long-term effects of advertising studying nine brands, including Kellogg’s Special K. This study took a fresh look at a topic that had not undergone thorough review since 1991. In an effort to continually evolve and improve this work, nine industry experts led by NCS Chief Research Officer Leslie Wood and David Poltrack, chief research officer, CBS Corporation and president of CBS VISION collaborated on “Long-term Ad Effectiveness Measurement – Phase 2.”
Phase 2 incorporated the industry suggested enhancements, such as validation and seven additional improvements. The research included 23 brands measured multiple ways across 31 studies, including replicating Leonard Lodish’s methodology from 1991 for 10 of the studies. Results show long-term effectiveness multipliers range from 3.5 to 1.2, with the majority between 1.5 and 2.5; they can also vary substantially from brand to brand and campaign to campaign.
“Measuring a brand’s long-term advertising effects quantifies the full value of advertising and leads to a clearer understanding of advertising’s value among the marketing variables,” said Leslie Wood, chief research officer, Nielsen Catalina Solutions. “While the discussion often focuses on the actual metrics of the brand-specific multipliers, the true value of this work is the understanding that advertising builds short-term sales, and more importantly builds stronger emotional and behavioral consumer connections that drive sales in the long term. This in turn drives brand loyalty and total brand value.”
“Kellogg wants to better understand the impact of promotional vehicles and advertising in particular,” said Jeff Doud, director of marketplace analytics at Kellogg Company. “This study provides insight into the longer-term impact of advertising and will help us make more informed decisions about our marketing strategies.”
“The contribution of advertising, as well as all other marketing and selling activities, to brand value is something we have begun to explore to help inform spending decisions across our portfolio of brands,” said Jim Meier, senior director of marketing finance at Miller-Coors, and co-leader of the Marketing Accountability Standards Board (MASB) Brand Investment & Valuation Project finance sub-team. “MASB has been involved with this important work for several brands in an effort to develop a framework to help understand the connections between advertising and brand value.”
“With single-source data, we are able to precisely measure the long-term effects of television advertising and determine the most valuable audiences for specific brands,” said David Poltrack, chief research officer, CBS Corporation and president of CBS VISION. “In this increasingly fast-paced business environment, it is imperative not to get caught up in short-term thinking. This work helps reinforce the critical, long-term brand equity value of television advertising.”
About CBS Corporation
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. The Company has businesses with origins that date back to the dawn of the broadcasting age as well as new ventures that operate on the leading edge of media. CBS owns the most-watched television network in the U.S. and one of the world’s largest libraries of entertainment content, making its brand – “the Eye” – one of the most recognized in business. The Company’s operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, outdoor advertising, and interactive and socially responsible media. CBS’s businesses include CBS Television Network, The CW (a joint venture between CBS Corporation and Warner Bros. Entertainment), Showtime Networks, CBS Sports Network, TVGN (a joint venture between CBS Corporation and Lionsgate), Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio, CBS Outdoor, CBS Television Studios, CBS Global Distribution Group (CBS Studios International and CBS Television Distribution), CBS Interactive, CBS Consumer Products, CBS Home Entertainment, CBS Films and CBS EcoMedia. For more information, go to www.cbscorporation.com.
About Nielsen Catalina Solutions
Nielsen Catalina Solutions provides the most comprehensive single-source view of advertising to help consumer package goods marketers, agencies and media companies measure and improve advertising performance by precisely linking what consumers watch and what they buy.
The joint venture between Nielsen and Catalina integrates “watch” information from industry-leading Nielsen People Meter, Portable People Meter and Nielsen online, set-top-box and multi-media viewing data from Nielsen Catalina Solution’s channel partners. The “watch” data is matched with the “buy” data from more than 70 million shopper households enhanced by Nielsen Homescan®. This single-source view provides the retail sales impact of TV, online, mobile, CRM, radio and print advertising. Nielsen Catalina Solutions is headquartered in Cincinnati, Ohio, USA. Visit www.ncsolutions.com/digital/ to learn more.
