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WARSAW, JUNE 2014 TV DOES BETTER AT BUILDING BRAND AWARENESS WHILE ONLINE ADVERTISING DOES MORE TO BOOST PURCHASE INTENT: MEC PRESENTS AD QUANTUM MEC Poland launches Ad Quantum, an analytical project to measure the impact of the TV and the Internet on campaign effectiveness and help determine the optimum budget allocation among those media channels. An online pre-roll video and a TV commercial have a comparable impact on brand awareness, yet the former has by 18 per cent more influence on average on the willingness to buy FMCG brands. The advantage of an online video appears to be significantly greater in young groups as demonstrated by the results of Ad Quantum, the new analytical project of MEC Media House. The effectiveness of over a dozen TV and online campaigns has been analysed so far in the research on a sample of more than 20,000 Internet users. “With Ad Quantum, we were able to investigate how much TV commercials and particular online formats had affected the brand equity KPIs: awareness, recommendation intent and purchase intent. When averaged out, the results for the analysed campaigns showed that while contact with TV ads is more effective at building brand awareness, it is online advertising that drives willingness to buy more efficiently,” says Tomasz Kolanowski, Poland and CEE Director, Analytics and Insight at MEC. How do TV and online increase campaign indicators? Using the new research method, MEC has also calculated how many contacts with online and TV ads are necessary to achieve the goals. MEC Sp.z o.o. 02-593 Warsaw, ul.Żaryna 2B , building D, Tel.22 11 33 000 Fax: 22 11 33 006 www.mecglobal.com A GroupM company WARSAW, JUNE 2014 “Apparently, in the dimension of both building awareness and influencing willingness to recommend and willingness to buy, the advertiser must reach prospective customers with twice as many messages online as on television,” says Tomasz Kolanowski. How many times can the ad be viewed? In the Ad Quantum research, MEC analysts also assessed the effectiveness of the particular display and online video ad formats in building key indicators for brands. The research revealed that a pre-roll (a video commercial played, e.g., before video content), followed by a screening (an ad covering the whole screen) and a wideboard come top of the list of the most effective formats. Format effectiveness – impact on brand awareness MEC Sp.z o.o. 02-593 Warsaw, ul.Żaryna 2B , building D, Tel.22 11 33 000 Fax: 22 11 33 006 www.mecglobal.com A GroupM company WARSAW, JUNE 2014 The effectiveness of a pre-roll appears to be nearly identical to that of a television commercial in building awareness of the brand being advertised (the comparison was based on 3 airings of each of the formats). However, the impact of a pre-roll on willingness to buy exceeded that of a TV commercial by as much as 18 per cent, and for willingness to recommend a pre-roll was by 15 per cent more effective. “Those differences run significantly deeper for young and urban consumers. Here, the advantage of a pre-roll over a regular TV commercial as regards the impact increases to even 70−100 per cent,” says Tomasz Kolanowski. He adds: “The greatest advantage of online video in building awareness was observed for the new technology category, where the difference in favour of a pre-roll was 120160 per cent.” BETTER TOGETHER – AND BY AS MUCH AS 13 PER CENT SO! Moreover, thanks to Ad Quantum, MEC measured the effect of dual influence of television and online advertising on key marketing indicators. The research reinforced the results of previous measurements, including the Polish and UK projects “TV and Online: Better Together” which showed the synergy effect between online and TV. Apparently, using those media in tandem to reach the consumer with an ad results in as much as 13 per cent more campaign effectiveness in terms of building brand awareness compared to the reach with television alone. TV and online: synergy in numbers “Based on Ad Quantum, we have also developed an optimum budget allocation among TV and online for the brands and categories under analysis. The results suggest that digital media are still underinvested, including by FMCG marketers,” says Tomasz Kolanowski. MEC Sp.z o.o. 02-593 Warsaw, ul.Żaryna 2B , building D, Tel.22 11 33 000 Fax: 22 11 33 006 www.mecglobal.com A GroupM company WARSAW, JUNE 2014 The optimization of the budget allocation among TV and online took into account such factors as the impact of the channel on brand indicators, reach in the target group and costs. The Ad Quantum project allows to monitor Internet user behaviour and preferences based on the studies of brand indicators performed before and after the campaign. In the research, MEC examines Internet users who have had contact with online ads and those who have not been the audience of online advertising. Using probabilistic models, the Agency then estimates which respondents have had contact with TV ads. Next the impact of the particular factors (contact with ads, demographic variables) on the campaign effects (brand indicators) is measured with the use of econometric modelling. Ad Quantum is offered to MEC clients in Poland and abroad, on markets where a technology exists to enable a study into brand awareness and image using the ‘Exposed’ vs. ‘Control’ method. Notably, the Polish branch of MEC Analytics and Insight is one of the four MEC global research centres. More information: [email protected] About the Company: MEC is the largest media house in Poland with a 16.2 per cent market share (RECMA, July 2013). In addition to media planning and measuring effectiveness for advertising campaigns, the Company offers a wide range of specialist services, from creation and branded content to research and econometric support. MEC works with several dozen clients and the major advertisers in Poland who use the Company’s services include Henkel, IKEA, Jeronimo Martins, Mercedes, Nestle, NIVEA, Orange, PKN Orlen and SAB Miller. MEC is a member of GroupM, a media negotiation operation, and part of WPP, a multinational advertising and communications company. MEC Sp.z o.o. 02-593 Warsaw, ul.Żaryna 2B , building D, Tel.22 11 33 000 Fax: 22 11 33 006 www.mecglobal.com A GroupM company