Close
 

Why 20 percent of media touchpoints deliver 80 percent of the impact

  • News
  • November 16, 2016
  • Damien Venuto
Why 20 percent of media touchpoints deliver 80 percent of the impact

Speaking at a recent breakfast event, TNS group client director Emma Eichbaum revealed research showing that only 20 percent of the touchpoints being used by marketers were driving 80 percent of the impact.

What this suggests is that a relatively small number of touchpoints are driving a disproportionate percentage of the overall impact for brands.

While this certainly does lead to wastage, Eichbaum warns marketers against kneejerk reactions.

“This doesn’t mean that if we’re using 25 touchpoints we should only be using five and discarding the other 20, as appealing as that may sound from a budgeting perspective,” she says.

“The complexity of connected consumer experiences means that marketers cannot afford to pre-judge the role of any touchpoint, or dismiss its significance to their objectives out of hand.”

Eichbaum makes the point that different channels might be driving impact at different stages of customer journey, and that marketers need to set clear objectives at each stage to really determine effectiveness.

She says that when clear objectives are laid out along a customer journey, it follows that the effective 20 percent of channels might differ along the way, even when it comes to a single brand.  

“We’re seeing that some touchpoints are really good for building brand equity – the kind of equity that allows brands to sustain their market share into the longer term, because it provides the basis for future sales,” Eichbaum says.

“Other touchpoints are exceptional at driving an immediate short-term sales response – while not helping to build the brand over the long term, some touchpoints are very effective at moving product off shelves at pace, as brands might often require.”

While the phrase 'impact' is certainly open to interpretation, TNS measures it according to the reach of the channel and the quality of the experience.


(Image credit: Kantar TNS)

This entire approach is premised on behavioural economics and aims to give a more accurate reflection of how of consumers behave in the actual marketplace.    

Eichbaum elaborated on four different categories that are taken into consideration when determining the effectiveness of a category:  

  • Anchor heuristic: this reflects that we’re better at relative thinking than absolute thinking, in practice. A good example is negotiating the purchase of a second hand car; the initial price offered will be the anchor and set the standard for the rest of the negotiations
  • Diminishing marginal returns: best explained as an example, this category involves activities such as consuming chocolate or alcohol, or reaching your pizza and pasta limit on a touring holiday of Italy.
  • Loss aversion: we tend to favour avoiding losses over acquiring gains. The best example of this would be the way in which marketers create a sense of scarcity or urgency that means people will feel like they’ve missed out if they don’t take up the offer.
  • Availability heuristic: the thing that most easily comes to mind tends to affect our decision-making most. This explains why top-of-mind awareness is a better predictor of sales.

To elaborate further on this approach, Eichbaum delved into a case study of a European insurance company.

When the impact of all channels used was determined across various touchpoints, 17 percent were found to have no impact whatsoever. And these channels, described as wastage, could have been eliminated entirely without hindering the effectiveness of the brand’s comms strategy.

(Image credit: Kantar TNS)

Case studies such as these will no doubt pique the interest of marketers, who stand to save huge amounts by pulling budget out of unnecessary channels.

But there’s also an important story here for media owners that could potentially be caught on the wrong side of the effectiveness graph.

If a channel no longer drives any effectiveness for a brand, then it stands to be removed from the marketing mix.

In fact, we’ve already seen this over the past for years, with Skinny pulling out of TV, Tourism New Zealand shifting most of its spend to digital and Countdown pulling back on press advertising.

And as researchers become better at measuring channel effectiveness, we will no doubt see a few more channels jettisoned in the coming years.  

This story was originally published on StopPress.
​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Restaurant Brands turns 22

  • News
  • March 26, 2019
  • Sarah Dunn
Restaurant Brands turns 22

As it prepares to celebrate its 22nd birthday, the listed corporate franchisor foresees a sunny future for the three – soon to be four - multi-site branded food retail chains it manages in New Zealand.

Read more
 
 

Linwood businesses struggle in mosque attack aftermath

  • News
  • March 26, 2019
  • Radio New Zealand
Linwood businesses struggle in mosque attack aftermath

A group of Christchurch businesses are struggling to get back on their feet after the attack on their neighbouring Linwood Mosque. Photo: RNZ / Katie Todd

Read more
 
 

Farmers account awarded to Clemenger Group

  • News
  • March 26, 2019
  • StopPress Team
Farmers account awarded to Clemenger Group

99 and Colenso BBDO have won the creative and customer experience business for Farmers. The win, after a competitive pitch, sees the advertising account return to 99 after a six-year hiatus.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Hemp products go beyond the specialty shelves

  • News
  • March 25, 2019
  • Sarah Dunn
Hemp products go beyond the specialty shelves

Since hemp seeds’ legalisation for growing, manufacture and sale in November 2018, supermarkets have quickly pivoted to include hemp products such as protein powder in their health food and specialty sections, but the trendy ingredient has already found its way into mainstream product categories.

Read more
 
 

No longer just for hippies: Is hemp the next coconut oil?

  • News
  • March 25, 2019
  • Sarah Dunn
No longer just for hippies: Is hemp the next coconut oil?

The Naturally Good Expo, held over June 2 – 3 in Sydney, will bring retailers, brands and practitioners together to learn about all things healthy, organic and natural. Among the topics discussed by industry leaders at the expo is the recent legalisation of hemp – it’s popping up everywhere. We asked John Leith of supplier Hemp Oz and speaker Susan Tapper of Holistic Marketing Healthy Sales for more information about this exciting new product category.

Read more
 

Military-style semi-automatics ban announced

  • News
  • March 21, 2019
  • The Register team
Military-style semi-automatics ban announced

As of 3pm on March 21, a wide range of semi-automatic weapons have been reclassified under section 74A(c) of the Arms Act as requiring an E endorsement on a firearms license. This means they can no longer be sold to those with A-category gun licenses, and their purchase now requires police approval.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}