Dynamic Logic Translates Purchase Intent into Estimated Sales with Conversion Index September 22, 2009
Posted by markblei in : Sales and Marketing , add a comment
We are pleased to announce the official launch of our ROI-driven solution — Conversion Index. Conversion Index allows our clients to further understand the branding impact of their campaigns by translating Purchase Intent into estimated sales.
In today’s economy, as the need for ROI grows, our clients often want a metric closer to actual sales. Through Conversion Index, an add-on to brand studies, clients can quantify impact of a digital advertising campaign by converting a Purchase Intent delta into an estimate of actual purchase or other KPI measures.
Conversion Index can be ideal for estimating sales impact of established or new products, line extensions, new formulations, etc. and can offer insight in these areas and more:
- How many people who say they are going to buy my product actually do?
- How many incremental purchasers were there? Incremental purchases?
- Where did I source my incremental purchases from? New customers? Existing customers?
- How can I convert a non-sales event, like intent to go see a doctor, into actual behavior?
To learn more about how Conversion Index can help you convert Purchase Intent into estimated sales, contact sales@dynamiclogic.com
Mention you saw it here firs,t and you wil win a prize ofl all the Chinese food menus that have been randomly stuck under our doors in the last seven years.
Christopher Bian Looks Behind the Scenes of the Not-So-Big Screen September 21, 2009
Posted by markblei in : Staff posts , add a commentHave you seen the latest “epic fail” video on YouTube? There’s an app for that.
Missed last night’s episode of “Lost”? Check out the Hulu link tweeted by @Lost_on_ABC.
Is it time for President Obama’s latest speech on healthcare reform? The CNN homepage is streaming it live.
Any way you cut it, video content, syndicated or not, is now readily available almost anywhere, or on anything that has an internet connection. The capability of today’s technology is a wide departure from several years ago, when “YouTube” had yet to become daily vernacular and “pre-roll” was all the rage. Now, you couldn’t run from a video stream even if you tried. But what does this mean for the world of media? Does the fact that I can stream a feature-length movie from Netflix onto my Playstation 3 to watch on my HDTV really provide marketers yet another way to hawk their wares? More importantly, “Do I want them to?”
As the methods and vehicles to consume online video become increasingly accessible, viewership of online video will move from access through a computer as it humbly began, to integrated mobile devices, gaming consoles, and even television sets. Consumption is changing; not necessarily how much, but how. I see 3 factors that play into the consumption shift:
1- Internet video usage – Viewership has increased over 12% in the last year, to nearly 134M users, compared to a .9% increase to 284M traditional TV viewers.
2- Timeshifted TV – Approximately 30% of US households own a DVR recorder and hour usage per month has increased 19.5% since the past year.
3- Video on mobile phones – while usage remains relatively low at 15M users this year, this is a 70% increase over 2008, keeping in mind mobile phones do not comprise all mobile devices capable of, or used for video.
Overall internet video usage is up, as is demand for timeshifted TV, which is an inherent characteristic of internet video. Each of these represents a separate trend, which may or may not be correlated, but serve as a guide to the direction in which consumption habits are heading. The widespread penetration of video-enabled mobile devices provides readily available “supply”, as consumers have access to video with relative ease. Nearly two-thirds of Americans ages 13 to 54 have at least one mobile device capable of video. Perhaps the most common video-enabled device, laptops are owned by 57% of Americans. Over one in five have a video-enabled iPod. Perhaps most markedly, 42% of users of all devices claim to use a mobile device to actually watch video.
Granted, there are key differences among the media used by consumers, such as consumption of long form vs. short form video, time spent watching with each medium, etc., but the point is that the evolution of video consumption is certainly not insubstantial, and quite the contrary. As these habits grow and change along with the technology that enables them, eventually, some will become the standard.
So how does one add value to consumer marketing initiatives? Guessing is one option, though probably not preferred or recommended. Consumer desires and pet peeves can be fleeting; what works one moment can change as the industry yet again shifts in another direction. Chalk it up to the quick pace at which our industry evolves! Consumers grow increasingly savvy, empowered by the internet. Gone are the days of passively watching commercials. Today’s consumers are not only engaging on a daily basis with one another, but with brands – something previously unheard of. Media plans are changing to incorporate the expanding marketing repertoire, such as social, viral, mobile, as well as video components. In order to harness the interplay of these efficiently, the approach to take is akin to tuning a musical instrument: pluck a string and listen for feedback; adjust accordingly; rinse, repeat. This does not mean your first foray into emerging media is a blind stab in the dark, nor should it be cause for you to fear utilizing it. This is where research comes into play; ensuring your approach provides you with information that can give you actionable, post-operative insights is crucial to long-term branding success.
Granted, not all parameters of your campaign, such as budget constraints, can allow for costly research. On the other hand, external normative data provides access to a wealth of information at a fraction of the cost. Based on consistently aggregated data, it can not only help guide campaigns in the planning stages toward the best chance of success, but it can be used after the fact to help diagnose issues, or explore any additional questions that may arise.
The following graphs and tables use creative format data from the MarketNorms® database. Using the entertainment industry as an example, video units typically outperform rich media units on awareness, isolated at an exposure of 1; however, rich media may be the better performer when it comes to Purchase Intent. Included below is a calculator that gives a potential cost-effectiveness scenario that not only reinforces this idea, but provides evidence that rich media may also be less expensive to impact each person. This calculator tool populates with MarketNorms® data, allowing for comparisons across various creative attributes, which can be particularly valuable in the planning stages of a campaign. A simple tool such as this can aid in controlling costs in the long run, freeing up resources to focus on the campaign’s value-driven proposition.
Source: Dynamic Logic MarketNorms®
Entertainment Industry ,Rich Media, frequency of 1: Last 3 Years, Q2/2009, N=35, n=46,396
Entertainment Industry, Video, frequency of 1: Full Dataset; N=20, n=29,798
Analysis Adjusted for Frequency
The upside to normative data can also be its downside; it needs to be collected over a length of time, and in a consistent, comparable manner. This takes considerable effort and time, not to mention financial investment. In the end, the best way to market to the consumer is to do it with the best tools available. Research is never the magic 8-ball we hope for. In this case, it’s more like a compass that’s pointing in the direction we should go, but it’s up to us to go out there, traverse the terrain, and gather data along the way, but with a long term goal in mind. Video can be great as a centerpiece or supplement to any campaign; normative research is the tool to help give it the best chance to succeed.
Sources:
1- Nielsen three screen report, Q2/2009
2- http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=112822
3- Dynamic Logic’s MarketNorms® database, Q2/2009
If you’re interested in how Dynamic Logic can help your next campaign perform optimally for you. We invite you to call us at 212-844-3700 or email us at answers (at) dynamic logic (dot) com. Tell them that you read about us here
Research Operations Manager Scott Kresge talks about the unique aspects of operating on a global scale September 4, 2009
Posted by markblei in : Staff posts , add a commentWith a degree in computer science as well as cognitive psychology, I’ve always enjoyed pushing around large collections of data particularly when they involve human behavior and demographics.
When I go to the office I live the vicarious life of a virtual tourist. Rather than stepping off a plane or a ship and being immersed in a different culture, I am exposed to a cacophony of out-of-context snapshots of other cultures every work day.
One of my first eye opening experiences in managing Global Operations was a study being run in China. I was keeping an eye on the recruitment levels as it went infield just out of curiosity. The number of survey respondents exploded instantly and grew at speeds that we would never see in the U.S. My first thought was to shut the survey down. Surely we were breaking some agreement with the publishers by commandeering all the available advertising real estate and then inviting every single visitor to take a survey. I naively envisioned 1.3 billion Chinese poised over their keyboards happily waiting to pounce on the next available survey.
Mercifully, one of my counterparts in Beijing explained what I was seeing. It’s not uncommon in China for even some the largest of portal sites to “lease out” their entire site to a single entity or a small group. For all practical purposes, you own all branding rights and advertising real estate on the site. There’s a catch of course. You can only “own” it for a few days at most. Imagine owning all the advertising real estate and data collection rights on a site like Yahoo.com or AOL.com…even for just a few hours.
Here are a few examples of some of those out-of-context, cultural snapshots. I’ve identified them by language since country borders are becoming less and less meaningful in the brave new internet landscape.
Chinese – Seeing this survey throws me every time I see it. This survey involves one of the largest American entertainment icons and is instantly recognizable by probably 99+% of Americans and here it’s mixed with a language that I imagine less than 1% of Americans can decipher. I find it pleasantly disorienting.
Russian – I was born into an era when the Soviet Union was planting nuclear missiles on Cuba and Nikita Khrushchev was saying “We will bury you!” (apparently speaking figuratively to capitalism in general). Now I’m helping to execute a study to determine how well the marketing efforts of one the largest American chip manufacturers are going in Russia.
Arabic – Written Arabic is a visually beautiful language. Of course, I wouldn’t even recognize it as a language of any kind if someone didn’t tell me it was so. In addition to the translation issue, Arabic has the additional technical challenge of being written and read from right to left.
I’ve presented three glimpses of data collection across three very different regions and cultures. To paraphrase a saying; the more things change, the more they remain the same. I won’t bore you with numerical results but you can take comfort from the fact that out of this cultural chaos comes one global truth: If you expose people from any culture to enough advertising, it’s going to affect their attitudes and behaviors
I’ll leave it to the advertisers and the philosophers to decide if this is a good thing or a bad thing.
- Scott Kresge
Research Operations Manager – Global
If you’re interested in how Dynamic Logic can help your next campaign perform optimally for you. No matter if you’re in New York, London, Paris Munich or anywhere else . We invite you to learn more by calling us at 212-844-3700 or email us at answers (at) dynamic logic (dot) com. Tell them that you read about us here!
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Dynamic Logic Study for redbox Reveals That In-Call Media Can Be Highly Effective For Raising Brand Awareness and Purchase Intent September 1, 2009
Posted by markblei in : Dynamic Logic Press Release , add a comment
Purchase likelihood increased almost 11 percentage points among occasional DVD renters following ad exposure
NEW YORK CITY, September 1, 2009 — As more marketers begin to leverage mobile display advertising (e.g., WAP display, mobile applications or SMS) as part of their media mix, new research suggests that audio ads deliver branding impact that marketers should take note of. Dynamic Logic, Safecount and VoodooVox — leading innovators in mobile measurement, recruitment and media, respectively — have teamed up on a new study to explore the branding effects of In-Call Media, the insertion of audio ads directly into the call stream of a targeted consumer. According to their research, In-Call Media can have a strong influence on both brand awareness and intent.
In the study, Dynamic Logic measured the branding impact of an In-Call Media promotional campaign for redbox, a subsidiary of Coinstar, Inc. and provider of fully automated kiosks featuring $1 per night new release DVDs. Results demonstrate that exposure to the redbox messages increased Aided Brand Awareness by over 9 percentage points among overall respondents — a significant increase for the brand and higher than typically seen with Dynamic Logic’s mobile display norms. Furthermore, among respondents whom occasionally rent DVDs, the campaign increased those saying they were very likely to rent from a redbox kiosk by almost 11 percentage points (10.7%).
“Dynamic Logic has always put a strong focus on digital innovation and marketing insight; therefore, we’re continuously working with clients to measure their newest mobile and new media marketing efforts,” says Ali Rana, vice president, digital strategy at Dynamic Logic. “As demonstrated by these results, In-Call Media can provide an opportunity for marketers to explicitly communicate brand propositions to an engaged audience while in a relevant mindset.”
The campaign was executed through VoodooVox, whose In-Call Advertising Network serves upwards of 100 million ads a month across dozens of call sources. In the campaign, callers who were on hold for a popular toll-free movie ticket line heard a variety of 10-second messages about redbox in an effort to build awareness and encourage trial of their movie kiosks. Interested callers could engage further to hear more or get a text message coupon.
“In-Call Media provides brands a targeted way to reach and engage consumers. On ad-sponsored services like movie ticket lines and dozens of other call publishers, advertisers continue to reap the benefits of the In-Call Media. It’s simply a highly effective way to engage the mobile consumer” said Gregory Wester, COO of VoodooVox.
Safecount, who led recruitment and data collection, usedVoodooVox’s In-Call Media technology to survey callers. Callers who opted-in received an SMS text message with instructions to access the telephone survey. VoodooVox’s technology identified which survey respondents had been exposed to the audio ads, and Dynamic Logic’s control-exposed research methodology was used to determine the overall impact on respondents who heard the redbox advertising.
Other findings from the study:
- Awareness of the redbox brand significantly increased after just one exposure to the advertising — it takes the average online campaign ten or more exposures to generate a similar increase, according to Dynamic Logic’s MarketNorms.*
- Direct communication of brand attributes in the audio ads, combined with multiple ad exposures, led to significant increases in respondents’ agreement that redbox is “the easiest way to rent a movie” and “the best value” among DVD renters.
- Among “Frequent DVD Renters,” Aided Brand Awareness increased 11.9%.
The redbox campaign was targeted to mobile phone users and ran throughout the month of December 2008, delivering 900,000 audio ad impressions during this time.
* NOTE: While the same control/exposed methodology is utilized, online MarketNorms is comprised of data collected via online interviews; therefore, different surveying techniques may play a role in differences when comparing to the redbox campaign.
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About Dynamic Logic
Dynamic Logic helps clients build brands and meet ROI objectives by providing marketing insight across all digital platforms and the broader media mix. As a Millward Brown company, Dynamic Logic offers advertisers, agencies and publishers the unique combination of world-class expertise on brand building and media coupled with normative insights from its database of thousands of digital campaigns, the largest in the industry. Founded in 1999, Dynamic Logic pioneered online ad measurement and has grown with the digital age, developing innovations across 27 digital platforms and establishing specialty practices in cross-media, social media, mobile, gaming and custom solutions. Responding to an industry need for data integration, Dynamic Logic established DLConnects™, a suite of solutions that provides clients synthesized insights from multiple sources including attitudinal, post-view behavioral, sales and tracking data. www.dynamiclogic.com
About Safecount
Safecount is a leading digital survey recruitment and data collection company that is dedicated to improving transparency for consumers, publishers and researchers. Having performed over 4,000 online studies for several clients, our patented live web recruitment technology delivers between 2 and 3 million respondents per year. This recruitment and data collection approach, as well as our online tracking technology, is available now to all research companies.www.safecount.net
About VoodooVox
VoodooVox is the leading provider of In-Call media, specializing in targeted insertion of ad-supported audio content into automated phone services, prepaid calling cards, directory assistance and other call streams.
Contact Information:
Vijay Chattha
For VoodooVox
tel: 415-305-6041
vijay@vscconsulting.com
Sara Beaty
Dynamic Logic
tel: 212-844-3743
sarab@dynamiclogic.com
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