Linking Online Media to Offline Sales

Leslie Warshaw
Consultant
Interactive Media/Research

It is hard to believe that the Internet has only come onto the scene about 10 years ago. With its immense size, importance and influence, it is difficult to imagine life without it. From preschoolers to seniors, the Internet has become a way of life. Over 185 million people in the U.S. have Internet access and that number is growing rapidly. Grabbing an ever-expanding piece of the media consumption pie, the Internet now ranks #3-a growth rate of 23% versus year ago with a 13% share-behind radio (31%) and television (48%). Newspapers and magazines lag far behind with 5% and 3% shares, respectively [ See chart 1 ]. Perhaps more importantly, the Internet today reaches the most valuable consumer-the highly educated big spenders with kids.

The March to Broadband
Advances in technology have enabled 39 million Internet users to connect with a high-speed transmission—a 49% growth over last year. In addition, rich media (defined as the formats necessary to support, create and deliver online advertisements) is growing in importance. In the first quarter of this year, 28% of ads were served with rich media compared with 17% a year ago. Higher speeds are driving online usage. For example, with the use of a high-speed cable modem, users average almost 19 minutes per session, make about 35 different site visits and view 1,464 pages. Comparatively, with a 56K modem, users spend 11 minutes per session, make 19 visits per session and view only 625 pages. With a greater proportion of the population online regularly, including women 25­54 and parents, the Internet has been woven into the fabric of our lives.

Does Reach Equal Results?
While it is true that consumers are spending more time online and less time using traditional media, it is also true that online consumer packaged good (CPG) spending is estimated at a meager 0.4%. This begs the questions: Where are consumers surfing? Who are they? And what do they buy?
With just a 5.9% share of total impressions, up 27% in 2002, consumer goods are underdeveloped relative to other segments and media that advertise online. Consumer activity in the CPG arena will continue to grow and manufacturers are starting to see positive results in both messaging and sales activity. The reach and interactivity of the Internet alone make it a one-to-one marketing dream. The reality, however, is that without critical insights into the Internet surfing behavior of a brand's core consumer target—and where these segments can be reached online—the dream will remain dormant.

An Integrated Online Program
An established consumer packaged goods manufacturer wanted to drive sales and stimulate promotion participation. In addition, there was a need to enhance their customer relationship management (CRM) initiatives. Multiple ad units, landing and registration pages and recipes were developed. Using ACNielsen's Consumer Direct, the first scaled "closed loop" marketing tool available to CPG marketers, the company was able to serve advertisements and promotional offers directly to the target consumers.

With a permission-based matched panel that links ACNielsen's Homescan panel of 61,500 households with Yahoo!'s 100 million visitors, Consumer Direct creates a target thumbprint based on purchase behavior and/or key demographics. Using a Scoring Model to identify surfing behavior that is most associated with and predictive of the target, each Yahoo! visitor's Internet behavior is compared against the modeled thumbprint. Good matches are part of the desired target and poor matches are dropped [See chart 2].

Understanding the offline purchasing component is key since consumers are much more receptive to brands and categories they actually buy. While online, consumers are engaged to take action. Whether the drive is to the web site or the retail store or to the brand itself, since only the targeted consumers receive the offer, the likelihood of activity is greater.

Consumer Direct proved successful for the consumer packaged goods manufacturer. The campaign had a positive impact on sales. Volume gains resulted from additional purchases by existing buyers. Those who interacted with the ad found value in the recipe message, and a 31% lift in targeting efficiency was achieved. The next steps and immediate action items from the program were clearly defined. Continue to target through modeling and scoring of the Yahoo! user base. Commit to the Internet with a clear consistent message and ensure multiple ad units are in sync. Test "click free" rich media to engage a greater proportion of consumers. Keep frequency at five or less. Ongoing efforts are now in place to evaluate offline sales, determine the extent of future programs and to refine interactive marketing plans.

Reach, Relevancy, Frequency

The keys to delivering any message or incentive are reach, relevance and frequency. Reach the right audience. No simple task given the sheer size and scope of the Internet audience. Target your offers. Know who your most likely consumers are. Ensure multiple impressions based on your requirements. And communicate throughout the network without requiring the consumer to "come" to a site. In the end, an effective, integrated online approach will reach the right consumers, and a firm understanding of the sales impact of your online program will be established.