£3 made for every £1 spent

(Article Source: New Media Age, Jan 12th, 2010. By Gina Lovett)

Some good news for Digital…as reported in New Media Age, Cadbury have made between 2-3 pounds on every 1 they are spending on digital advertising. Certainly one of the challenges digital faces is how to attribute sales, especially of FMCG products, to digital activity. This article shows how digital is effective and how Cadbury’s measured results.

Juliet Du Vivier, digital strategist at Cadbury’s media agency PHD Media, who worked with Consumer Connect to track sales of Creme Egg, says that the  “GfK MEP and Consumer Connect show real sales, helping the market move and increase investment.”

According to PHD Media group manager and Cadbury account manager Katrin Schlenzka, this is the first time that a brand has been able to attribute uplift in sales to specific channels, as well as indicating the relationship between channels.

“While Cadbury has had its own econometric model for a while, it hasn’t been consistent and hasn’t looked at the role between each media,” she said. “What the Google study did was drill down by media to see the relationship between TV and digital, as well as breaking down the channels themselves.”

Online activity for the Cadbury Dairy Milk campaign, evaluated through GfK NOP’s 7,800-strong Media Efficiency Panel, used TV, Facebook, YouTube Promoted Videos, YouTube home-page takeovers and display banner advertising. Such activity delivered more than £2 of short-term sales for every £1 spent.

GfK NOP divisional director Babita Earle said, “Cadbury got it right because of the complementary fashion it planned it. There was less reach through TV, so the online ads could make more of an impact.”

Piers North, Yahoo UK head of strategy said that the industry still has a way to go, however, before such studies have a wider impact

“The money will often come from other traditional media so it’s seen as a risk,” he said. “There’s always the concern that the investment won’t pay off. The nature of online is instant – we’re so used to implementing a search campaign or doing DR in real time – but a sense of longer-term vision and co-operation between media agencies and clients that allows you to plan across platforms is needed if this is to really take off.”


Read the Full Article Here

(Article Source: New Media Age, Jan 12th, 2010. By Gina Lovett)


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