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When marketing gives positive ROI!

3 minute read | September 2016

Marketing Effectiveness

Nielsen is one of Europe’s largest suppliers of marketing impact measurements and has one of the world’s best forecasting and planning tools, which we use to help branded suppliers and media agencies make the right decisions. Consulting “Above the line” media requires the preparation of econometric models, also called sales models or Marketing Mix modeling.

When Marketing Gives Positive ROI

Results from Nielsen’s European ROI Benchmark database show that the media settlement for FMCG brands has an ROI of 0.46. This means that the average brand in the short term only gets 46 øre back in revenue every time 1 DKK is spent on media. The importance of getting the most out of your media campaigns is paramount to success.

One of the biggest focus areas for branded suppliers right now is the question of how to allocate your media dollars – especially with a focus on online vs. offline. offline media. In Nielsen, we have a strong focus on quantifying the effect of the different media’s influence on each other. Cases show that there is a great deal of interaction between the different media, and that there is a lot of difference in where the effect of the different media comes from.

On average, FMCG brands in Europe have an ROI of 0.54. This means that one does not have to allocate one’s money very incorrectly before one’s media settlement will have negative ROI. When we look at performance across media, we see that online media overall performs with the best ROI. If you dive a little into the various online channels, it shows that Facebook and Google Search are the media that have the biggest ROI. More traditional media perform on average at the same level, and here it is more important to choose the media that suits the target group and ensure a sufficiently high coverage in the market.

NIELSEN’S FIVE ADVICE FOR A SUCCESSFUL CAMPAIGN:

  1. Always adjust your media based on an ROI consideration, which takes into account both direct and indirect effects, so that for example Search is not attributed all value, because this is typically the last used channel, just before a visit / purchase on an E-Commerce site .
  2. You should always ensure continuous evaluation of your campaigns and adjust from time to time.
  3. Despite high general performance from online, you must be aware of your “reach”. It will not always be possible to achieve high coverage only through online.
  4. Use your ATL communication in conjunction with your BTL activities. This creates synergy and lifts sales even more.
  5. Season is crucial for both media purchasing and your category’s sales index. Remember to quantify the seasonal impact of your category. It can have up to 40% change in your ROI.

At Nielsen, we help with independent advice and ensure that you get the most optimal campaign executed using some of the world’s best planning and forecast tools.

If you want to hear more about how Nielsen can help with advice and evaluation of your media plans, you are welcome to contact Søren Fromberg Nielsen, Head of Sales Effectiveness.

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