June 19, 2015 Last Updated 9:25 am

Nielsen Catalina Solutions introduces Choice Fragmentation, a new audience segmentation methodology

Approach was piloted with Starcom MediaVest Group and CBS Television using valuations of the various buying segments such as potential non-buyers to drive penetration

This press release below may seem like an odd one to reproduce on TNM, but it involves marketing measurements, something I’m finding many publishing ad pros just don’t understand. Let me explain.

In the days when print advertising ruled, it was easy to talk to marketers about their craft as the only major factors involved were price and results. Price is easy enough to understand, but results were murky (and still are) and only sometimes the responisbility of the media company to monitor. If you were a B2B publisher, you would sometimes count the number of reader response cards that came in and pass that information along. But, unfortunately, some B2Bs played games in this area, counting every card that came in even it the reader didn’t requet information about that specific advertiser. (That company just sold off the last of their titles and is now out of business.)

Today, digital advertising is evolving in ways many print publishers just don’t understand. They get banners and buttons, but many are having difficulty understanding the goals of their advertisers when they come to such things as brand and retail lift. For instance, who is the customer when an advertiser spends to drive sales at a specific retailer, like Walmart (the customer, in the eyes of the advertiser, is not the consumer, but Walmart).

The release below explans talks about what Nielsen Catalina Solutions is doing to provide advertisers more data on sales lift. It’s a bit vague, but hang with it.

NEW YORK, NY – June 19, 2015 — At ARF Audience Measurement 2015, Nielsen Catalina Solutions (NCS), a leader in enabling marketers to increase the sales impact of their advertising by powering cross-channel platforms with actual purchase data, announced a new approach to audience segmentation that allows brands to identify the most relevant audiences for any marketing objective. Based on purchase data, it’s now possible to identify the most likely buyers of a CPG product, and deliver advertising to the audience that will drive the highest sales.

CF-NCSChoice Fragmentation helps drive higher returns on ad spend for strategies and targets designed to build penetration. It is the component of this methodology that evaluates consumers who have not purchased a brand’s product in the last year and segments them into groups that are likely and unlikely to be converted into brand buyers. Driving penetration of consumers who haven’t purchased a brand, or non-buyers, is a key strategy for marketers looking to increase market share.

However, it’s difficult to achieve sales impacts against these non-buyers. As a total group, they tend to have very low sales lift. For instance, across an average of 13 brands tested so far, NCS saw a 51 responsiveness index (percentage of the sales lift against the percentage of reached households). For a sample brand, that means 40 percent of the households reached delivered roughly 20 percent of the advertising sales lift. With Choice Fragmentation applied, the average index across those 13 brands becomes 149 – a three times higher delivery of lift. This means that marketers can concentrate media spend on the non-buyers who would be most likely to convert to buyers.

This approach was piloted with Starcom MediaVest Group and CBS Television using valuations of the various buying segments such as potential non-buyers to drive penetration and high responding buyers to increase brand loyalty. These multiple targeting strategies were then analyzed based on the media buys.

“Just as data has revolutionized media activation and consumption, it has also impacted audience segmentation,” said Leslie Wood, chief research officer, Nielsen Catalina Solutions. “Marketers are reevaluating how they plan and buy television media, using ultra-focused audience segments. We’ve gone from demographics to buyergraphics, and this work takes the buyergraphic approach to a whole new level by identifying which non-buyer segments have the most sales potential through Choice Fragmentation.”

“As a leader in precision marketing, SMG is always honing its approach to audience segmentation,” said Jeff Chaban, global SVP, business integration and analytics, Starcom MediaVest Group. “Our systems can fully integrate with buyergraphic segments allowing us to select the programs that optimize sales, and align with our clients brand strategies.”

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