Crowdtap Paper Brand Influence
Crowdtap Paper Brand Influence
AUTHORS:
EXECUTIVE SUMMARY
The marketers job has become increasingly more difficult over the last five years, and the pace of change is accelerating. Successful marketing used to be a fairly clear formula that went like this: 1. Identify a core consumer insight 2. Develop an eye-catching advertising campaign 3. Identify mass media channels with high concentrations of your target market 4. Purchase those impressions as cheaply as possible
Today,
In addition to the traditional outlets of TV, radio, print and out-of-home, we now have digital, social media, word-of-mouth, mobile and countless variations on each of these. The staid metrics of reach and impressions simply lack the same clarity they once had when spread across a now endless myriad of channels and type of marketing activities. Smart marketers like Coca-Cola CMO, Joe Tripodi, see the need to move away from impressions as it no longer is a good barometer of the impact that marketers seek. While some other metrics have surfaced such as engagements, they have failed to help marketers understand the relative impact of their various marketing initiatives. For instance, an engagement has come to stand for everything from clicking on a banner ad, to watching a video, to spending two hours in a friends home learning about a new product. Clearly not all engagements or impressions are created equal. With the vast array of brand interactions that consumers now experience, marketers need to better understand their media purchases and the estimated impact before they spend, in real time.
INTENSITY
how involved is the audience in the message?
PROXIMITY
how close and trusted is the source?
EXPOSURE
how long is the audience exposed?
REACH
how large is the audience?
BRAND INFLUENCE
estimated brand impact of marketing spend
This new Brand Influence metric enables marketers, for the first time, to understand the overall impact of their intended marketing mix before implementation. When integrated into marketing platforms, marketers will also be able to monitor results in real time and evaluate post campaign to determine how they delivered against the estimated Brand Influence. This metric can be tracked across any marketing channel and can be directly linked to changes in brand equity and intent to purchase.
ThE BRAnD InFlUEnCE RESEARCh TEAM The Brand Influence metric was developed by Joanna Seddon, former CEO of Millward Browns marketing consulting practice, and her team of experts, in partnership with Brandon Evans, CEO and founder of Crowdtap, the first on-demand brand participation network. Over a period of nine months, the team explored the key factors that drive significant change to the core metrics for any marketer, brand equity and ROI. The research began by exploring the key channels frequently used by marketers to understand what factors most influence marketing impact. The three factors identified were proximity, intensity and exposure, each of which is detailed further in the body of this report. Through surveys, the researchers determined the weight of each factor by marketing channel. Through this understanding of both the qualitative (proximity/intensity) and quantitative factors (exposure and reach), marketers can now determine the total Brand Influence of nearly any marketing activity or media buy. This measure tells marketers how much any marketing channel or activity will likely influence the audience around their brand.
The last piece of the research focused on identifying how Brand Influence impacts ROI and the brand equity pyramid, which includes familiarity, favorability, purchase intent and advocacy. To understand this impact, five case studies were conducted on Crowdtap over a period of six months. This research focused on pre- and post-analysis to determine the impact that each Brand Influence point achieved to a marketers core metrics. Crowdtap was selected as the platform to conduct the research on, as it allowed the researchers direct access to a variety of social marketing activities on demand (e.g. peer-to-peer sharing of content, online discussions, product sampling and brand-sponsored house parties). This enabled the testing of discrete social marketing activities to gauge their performance vs. other media channels. Some key findings of this research are listed below. The in-depth findings and more detailed methodology of this research are summarized within the body of this report.
nEW METRIC EnABlES nEW FInDIngS On MARkETIng MIX AnD EFFECTIVEnESS While traditional media still provides great value due to its reach capability, most social channels deliver deeper consumer interactions, providing marketers with the greatest ROI and lift to key brand metrics. As Brand Influence measures the total weighted impact of a marketers spend, marketers should look at spend by how many Brand Influence points they can purchase, as this relates more directly to lifts in brand equity and ROI than channel agnostic measures such as impressions and engagements. Marketing channels that mix on and off line sharing, such as peer-to-peer sampling and branded house parties deliver on average 10,000 and 1,700 times more Brand Influence points per person reached than TV respectively.
hOW BRAnD InFlUEnCE IS CAlCUlATED The Influence metric is a composite measure based on a combination of message impact (quality of interaction) with exposure and reach (quantity of interaction).
INTENSITY
how involved is the audience in the message?
PROXIMITY
how close and trusted is the source?
EXPOSURE
how long is the audience exposed?
REACH
how large is the audience?
BRAND INFLUENCE
estimated brand impact of marketing spend
Intensity Proximity
TV ads
The survey results on quality of interactions with different types of media are combined with data relating to the quantity of interactions (Exposure and Reach), to provide a total measure of influence. Two metrics are used: Exposure, i.e. how long was the audience exposed, and Reach, i.e. how many consumers interacted with the message. For Crowdtap interactions, actual numbers can be pulled from the database for each action in a campaign. For comparison with other channels, industry averages are used. After conducting this research, the research team created standard metrics to look at Brand Influence across a variety or marketing activities. These metrics are provided below and the framework developed could easily be applied to any other marketing activities or extrapolated based on similar actions.
The takeawaytraditional media, such as TV, reaches more people, but social campaigns have a more significant influence on the audience.
lInkIng BRAnD InFlUEnCE TO BRAnD EqUITY AnD PURChASE InTEnT The next step of the research centered on tying Brand Influence to ROI. To do so, the research focused on tying Brand Influence points to lifts in direct impact and indirect impact. Pre- and postmeasurements of brand familiarity, brand favorability, purchase intent and brand advocacy were calculated across five client campaigns launched on the Crowdtap platform and were used to establish the linkage between ROI and Brand Influence. First, consumers attitudes toward the clients brand and product were established before the brand launched any actions on Crowdtap. This created a baseline against which increases resulting from the campaign could be quantified. Research was then conducted among people who have participated in each individual action (attended a house party, shared a video, received a sample etc.), to measure how attitudes and perceptions toward the brand and willingness to purchase the product have changed.
Brand pyramids: leading fashion retailer (pre and post Crowdtap Campaign)
The above graphic shows one client example of pre- and post analysis. Four case studies in total across various verticals were measured in order to establish the connection between Brand Influence and ROI. Post campaign, the brand equity pyramid was measured again and the uplift over the baseline measurements for Advocacy and Purchase Intent levels were calculated. While Crowdtaps database enabled measurement of g0s (Crowdtap members) and g1s (people influenced by g0s), the additional effect on g2s (people influenced by g1s) was calculated as a percentage, using a decay rate based on research norms.
hOW ROI IS MEASURED The financial inputs for calculating the ROI are profit per new customer and the cost of the marketing activity. These are combined with the calculations of uplift in the brand equity pyramid from the research analysis. These uplifts combine to produce a total uplift in willingness to purchase. The uplift in Purchase Intent metric equates to the Direct Impact or short-term increase in willingness to purchase; the uplift in Brand Advocacy equates to the Indirect Impact or increase in willingness to purchase (both short term and longer term) as a result of greater affinity for and loyalty to the brand. For the purpose of this analysis, the assumption is that the increase in willingness to purchase is equivalent to uplift in purchases. To determine the increase in number of units sold as a result of the campaign, we determine the total uplift for each action by multiplying the uplift percentage by the number of people reached by the action. We then simply apply the profitability number for each unit of the profit generated by a new customer to arrive at the total profits generated by each action and for the total campaign. The campaign costs are then deducted from the profit number to give us return on investment.
DIRECT
What is the immediate change in purchase behavior?
REACH
UNIT
ROI
INDIRECT
What is the impact on brand equity?
Measured by % change in advocacy.
now that we understand the linkage between Brand Influence, brand equity and ROI, we are able to show how various channels effect both brand equity and ROI based on the amount of Brand Influence marketers are able to achieve per $1,000 spent on that marketing activity. The below chart illustrates this correlation:
APPEnDIX
1. About the Researchers 2. Case Studies 3. glossary of Terms 4. Sources 5. Inquiries
lEADIng FEMInInE hYgIEnE BRAnD lEADIng FAShIOn RETAIlER lEADIng BEAUTY BRAnD lEADIng SnACk FOOD BRAnD
A feminine hygiene brand was looking to support their new product launch by connecting directly with their target consumers to get people talking on and offline about the brand. Their PR Agency identified Crowdtap as an ideal platform to identify and mobilize advocates around the new product launch and built out a campaign that maximized the platform for the brand. With Crowdtap, the brand was able to target and identify advocates in three distinct demographics and speak to each with separate communications: 13-17 year-old girls, 18-24 year-old girls, and moms with teenage daughters. In total, the brand engaged a crowd of over 13,000 from September 2010 through May 2011; the dates over which the campaign was measured. A crowd is the people a brand has engaged through Crowdtaps pay-per-action brand participation platform. This crowd could then be mobilized to share on and offline with their social networks. Over the 8 months measured, the brand tapped their crowd to test and iterate packaging designs, identify preferred product scents, spread the word on line around Facebook and Twitter promotions, as well as drive word-of-mouth on and offline via a sampling campaign with crowd members from each demographic receiving samples and communications materials to share with friends. During the period measured, the brand achieved 767,637 BIPs (Brand Influence Points) with a reach of over 4.8MM. The brand also saw lifts of 54% to purchase intent and 55% to brand advocacy for a total ROI of $1.76MM* or $4.41 ROI/$ spent, which equates to $2.3 of ROI per BIP, inclusive of estimates of all agency fees and non-Crowdtap spend. *An estimate based on industry data was also used for estimating the profit per customer
One of the countrys largest fashion retailers was searching for a solution to engage deeply with their advocates and most influential consumers. The brand had millions of Facebook fans, Twitter followers and CRM recipients but sought a way to mobilize and acknowledge their top supporters. Their agency worked with them to develop a brand influencer community of VIP customers on Crowdtap. leveraging Crowdtap, the brand created a crowd of passionate consumers in their core target demo of women 25-35. Participants poured in from the brands existing communities including CRM, Facebook and Twitter as well as pre-existing brand enthusiasts within Crowdtaps member base. From February 2011 May 2011 over 20,000 women joined the brands crowd and participated in the brands actions on Crowdtap. Over the four months measured, the brand tasked the Style Council with weighing in on new dress designs, promotion ideas and shopping habits. The brands crowd was also given their latest commercial first to share with friends before it aired on TV. The brands crowd was also among the first to hear about and receive samples for the brands newest and hottest products, which they shared with friends and even hosted sponsored parties in their homes to show off their latest line of accessories and in-store parties at their local retail location. During the period measured, the brand achieved 771,959 BIPs (Brand Influence Points) with a reach of 3.5MM. The brand also saw lifts of 57% to purchase intent and 48% to brand advocacy, for a total ROI of $3.75MM or $9.39 of ROI/$ spent which equates to $4.86 of ROI per BIP, inclusive of estimates of all agency fees and non-Crowdtap spend. *An estimate based on industry data was also used for estimating the profit per customer
A household name in beauty was looking to connect with girls 18-24 years old, an audience especially hard to reach via traditional channels. The brand needed more than just awareness but sought to connect with girls and get them using their products, in particular their new sunscreen and after-sun lotion. Their PR agency along, with the brand, sponsored in home parties or Beauty Soirees where girls participated in a variety of beauty-related activities. Through Crowdtap, the brand recruited 18-24 year-old girls to host the Soirees. Thousands of girls applied and 1,000 top applicants were selected to throw the parties. The selected party hosts received a kit full of free products from the brand and other fun goodies to share with their guests. The parties resulted in thousands of tweets, blog posts, Facebook posts and pictures showcasing the parties and new lotions. Close to 10 people attended each party on average and hosts submitted detailed recaps and pictures of their events. Through the sponsored parties, the brand achieved 515,714 BIPs (Brand Influence Points) and reached over 1.5MM people. The brand also saw lifts of 39% to purchase intent and 60% to brand advocacy, which equated to a total ROI of $422,442 or $3.38 of ROI/$ spent which equates to $.82 of ROI* per BIP, inclusive of estimates of all agency fees and non-Crowdtap spend. *An estimate based on industry data was also used for estimating the profit per customer
A classic American snack food brand sought to build their community of mom advocates for the healthy childrens snacks. The brand focused not just on their great snacks, but on helping moms raise healthy children in mind, body and spirit. The brand partnered with a leading child psychologist to develop content activities that these womencould share with their kids and fellow moms. looking to build a true network of advocates across the country, their social marketing agency along with the brand, developed a network of thousands of moms to spread this enriching content. Through Crowdtap as well as their existing newsletters and social communities, the brand recruited passionate moms to participate. These influential moms participated in discussions on a variety of topics around parenting helping to develop content for wider distribution, answered polls that helped inform the brand, and shared activities and content with their personal mom networks both on and offline. Through their marketing activities, the brand achieved 183k BIPs (Brand Influence Points) and reached over 1.9MM people. The brand also saw lifts of 24% to purchase intent and 14% to brand advocacy, which equated to a total ROI of $393,244 or $3.93 of ROI/$ spent, which equate to $2.15 of ROI* per BIP, inclusive of estimates of all agency fees and non-Crowdtap spend. *An estimate based on industry data was also used for estimating the profit per customer
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To learn more about this study, or invite Brandon or Joanna to speak at your next event, email us at:
info@branDinflUenCeMeTriC.CoM
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