Welcome!

News Feed Item

The Long-Term Effect of Television Advertising Greater than Previously Thought

CBS Corporation (NYSE: CBS.A and CBS), Kellogg Company, and Nielsen Catalina Solutions (NCS) announced today the results of a ground-breaking study that challenges a long-held industry rule of thumb that has been used for over 20 years: that the long-term effect of advertising on revenue is, on average, two times the short-term effect.

At the Advertising Research Foundation’s Audience Measurement Conference today, CBS, Kellogg’s and Nielsen Catalina Solutions presented new findings on the long-term impact of advertising on revenues. The study shows that the long-term impact may well be greater than two times the short-term impact, and that it can vary substantially from brand to brand and campaign to campaign.

Through this collaboration, five brands in the Consumer Packaged Goods category, including Kellogg’s Special K, were studied to determine the specific “multiplier” for each of the brands, using true single-source methodology that integrated television exposure with actual retail sales in a single-source dataset.

For certain Kellogg’s Special K advertising, it turns out that the multiplier to get from the short-term effect to the long-term effect on sales is actually higher than the industry norm, “multiplier of 2.” The multiplier that is developed using the single source methodology is then added to the short term sales impact to get the complete value of advertising.

“We’ve always known that advertising builds long-term sales and brand equity, not just short-term sales, though we didn’t know the full extent,” said Jeff Doud, Director of Marketplace Analytics at Kellogg Company. “Kellogg got involved in this study to better understand the longer-term impact of advertising on retail sales. This type of research helps us to make well-informed decisions on marketing strategies.”

“The industry has watched marketing budgets gradually shift from paid advertising to promotions, often due to the short-term sales effect and measurability of promotions,” said David Poltrack, Chief Research Officer, CBS Corporation and President of CBS VISION. “In the past, research confirmed that television advertising provided a long-term, brand-building value that had not been captured by these short-term measures. Through new single-source data we are finally able to precisely measure the long term effects of television advertising. CBS is dedicated to helping advertisers employ these new measurement resources to ensure our client’s advertising reaches its full potential. This research is an important first step in that process.”

“Current analytic methods tend to capture short-term incrementality well, but this does not give full value to brand-building efforts. Understanding mid-to-longer-term impacts allows a more precise assessment of the true value of advertising, which leads to more intelligent investment and to stronger brand equity over time,” said Leslie Wood, Chief Research Officer, Nielsen Catalina Solutions. “When advertising’s full value is measured – short and long-term together – advertising wins.”

Future phases of the Nielsen Catalina Solutions work will include more CPG brands and additional industry verticals, as well as developing insights into long-term effects of all types of campaigns across different media and different types of advertising. Further, the Council for Research Excellence will be conducting a major industry-wide effort to build on these findings in order to help advertisers measure long-term advertising effects on an ongoing basis.

About CBS Corporation

CBS Corporation (NYSE: CBS.A and CBS) is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. The Company has businesses with origins that date back to the dawn of the broadcasting age as well as new ventures that operate on the leading edge of media. CBS owns the most-watched television network in the U.S. and one of the world’s largest libraries of entertainment content, making its brand – “the Eye” – one of the most recognized in business. The Company’s operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, outdoor advertising, and interactive and socially responsible media. CBS’s businesses include CBS Television Network, The CW (a joint venture between CBS Corporation and Warner Bros. Entertainment), Showtime Networks, CBS Sports Network, TVGN (a joint venture between CBS Corporation and Lionsgate), Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio, CBS Outdoor, CBS Television Studios, CBS Global Distribution Group (CBS Studios International and CBS Television Distribution), CBS Interactive, CBS Consumer Products, CBS Home Entertainment, CBS Films and CBS EcoMedia. For more information, go to www.cbscorporation.com.

About Kellogg Company

At Kellogg Company (NYSE: K), we are driven to enrich and delight the world through foods and brands that matter. With 2013 sales of $14.8 billion and more than 1,600 foods, Kellogg is the world's leading cereal company; second largest producer of cookies, crackers and savory snacks; and a leading North American frozen foods company. Our brands – Kellogg's®, Keebler®, Special K®, Pringles®, Frosted Flakes®, Pop-Tarts®, Corn Flakes®, Rice Krispies®, Kashi®, Cheez-It®, Eggo®, Mini-Wheats® and more – nourish families so they can flourish and thrive. Through our Breakfasts for Better Days™ initiative, we're providing 1 billion servings of cereal and snacks – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. To learn more about Kellogg, visit www.kelloggcompany.com or follow us on Twitter @KelloggCompany.

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 Solutions’ channel partners. The “watch” data is matched with the “buy” data from Nielsen Homescan® and nearly 70 million shopper households from Catalina. 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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
FinTech is the sum of financial and technology, and it’s one of the fastest growing tech industries. Total global investments in FinTech almost reached $50 billion last year, but there is still a great deal of confusion over what it is and what it means – especially as it applies to retirement. Building financial startups is not simple, but with the right team, technology and an innovative approach it can be an extremely interesting domain to disrupt. FinTech heralds a financial revolution that...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).