NEW YORK--(BUSINESS WIRE)--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.
Choice 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.”
About Nielsen Catalina Solutions
Nielsen Catalina Solutions provides the most comprehensive single-source view of advertising to help consumer package goods marketers, agencies and media companies measure and improve advertising performance by precisely linking what consumers watch and what they buy.
The joint venture between Nielsen and Catalina integrates “watch” information from industry-leading Nielsen People Meter, Portable People Meter and Nielsen online, set-top-box and multi-media viewing data from Nielsen Catalina Solution’s channel partners. The “watch” data is matched with the “buy” data from more than 70 million shopper households enhanced by Nielsen Homescan®. This single-source view provides the retail sales impact of TV, online, mobile, CRM, radio and print advertising. Nielsen Catalina Solutions is headquartered in Cincinnati, Ohio, USA. Visit www.ncsolutions.com/digital/ to learn more.