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New Research Method Promises Higher ROI

New Research Method Promises Higher ROI Joe Pilotta

Recently, Rishad Tobaccowala of Starcom indicated his desire for an MRI reverse engineering solution to the media planning and ROI malaise of the industry.  MRI reports product consumption, and they also report some media habits.  But what if you started defining people by their media consumption behavior instead of their product consumption, as Mr. Tobaccowala wishes?

The Answer
Analysis by Martin Block and Don Schultz of the Medill School at Northwestern University has lead to the discovery of eight unique media consumption clusters in BIGresearch's Simultaneous Media Survey (SIMM VII) which may answer Mr. Tobaccowala's wishes. These newly identified clusters will enable advertisers to better allocate dollars in the planning process for increased returns on marketing campaigns.

Since SIMM measures the consumption of 31 different media, which are linked to marketplace consumption, a new triangulated communications allocation process has been developed which increases the probabilities of success for greater advertising ROI.

Each of the clusters was developed from a factor analysis of these three unique media consumption characteristics:

Experiential Time: the consumption of media by day parts,

  1. Simultaneity: the multitasking/overlapping of media consumption, and

  2. Media Influence: the influence various media have on purchase decisions by product categories.

(The clusters contain only media consumption data and are void of any demographic or geographic input.)

Most advertising ROI models only represent a scorecard of the past. Now the industry has a methodology and software that can be a planning tool, a communications tool, an intervention tool and a predictive tool to help marketers' better effect the ROI of their campaigns.

For instance, if you want to target "new mediacs" (people with high use of blogs, cell phones, video games), cluster-based research can tell you that:

  • Word of Mouth (via cell phones) has the most influence on their decisions to purchase electronics, apparel, grocery, telecom services, and dining out

  • Their favorite ISPs are Comcast and AOL

  • Google is their favorite search engine

  • Their videogame platforms of choice are PCs and the Playstation 2

  • And they plan on buying a Ford, Dodge, or Chevy in the next six months.

The eight media consumption clusters are:

  1. Old School: High mass media influence (TV, magazines, newspaper) and low in search media (online). Average overall media consumption and simultaneous usage.

  2. Active Explorers: High promotion (inserts, coupons, direct) and search media influence. Average media consumption.

  3. New Mediacs: Low mass media and promotional media influence. High electronics media consumption. Low print consumption.

  4. Simultaneous Readers: Average overall media influence. High network simultaneous usage. High print consumption.

  5. Independents: Average search media influence. Low media consumption.

  6. Ravenous: High overall media influence. High network, print and electronic consumption.

  7. Persuadables: High mass and search media influence. Average promotional media influence.

  8. Opportunity Minded: High promotional influence. Average to low media consumption.

On Wednesday, March 22, at the ARF National Conference, BIGresearch's Joe Pilotta will give a presentation on how the clusters can be integrated in the media planning process to increase advertising ROI.  The session is titled "The Engagement Transformation."

Joe Pilotta is vice president of BIGresearch, and a professor at Ohio State University, School of Communications. He holds two Ph.D.s from Ohio University (Communication Research) and from University of Toronto (Sociology), Canada. He is a member of the Word of Mouth Association (WOMMA) Standards and Metric Committee and the ARF Long Term Advertising Effects Committee.

Joe Pilotta was Vice President of BIGresearch, and a former professor at Ohio State University, School of Communications. He holds two Ph.D.s from Ohio University (Communication Research) and from University of Toronto (Sociology), Canada. Senior...

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