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Optimizing television commercial and online video advertisement planning

Optimizing television commercial and online video advertisement planning

For this feature, we talked to Naoyuki Manabe and Azumi Nakayama of Dentsu Inc., and Yasuhiro Matsuno of NEXTAGE Dentsu Inc. (incorporated into Dentsu Digital Inc. on July 1, 2016), with whom we discussed the current status of TV commercials and online video advertisements, as well as future issues likely to affect these fields. Manabe is responsible for the development of Cross Media Planner*, a proprietary Dentsu optimization tool for integrating the placement of TV commercials, online video advertisements and display advertisements. Nakayama was involved in the tool’s development as a media planner, and Matsuno is involved in the field of performance advertising and the formulation of ad distribution strategies.

*

Cross Media Planner is a tool for optimizing the placement of integrated TV commercials, online video advertisements and display advertisements.

Optimizing television commercial and online video advertisement planning

From left: Matsuno, Nakayama, Manabe

Cross Media Planner is a revolution in planning

――: First of all, please give us the background to the development of Cross Media Planner.

Nakayama:

There have been significant changes in the structure of media contact by younger demographic groups in recent years. And since there has been an increase in the number of media types with which an individual comes into contact, it is now necessary to think about cross-device ad delivery capabilities. For this reason, we are seeing a growing need among clients for web reach vis-à-vis demographic groups that are difficult to reach through TV.
Furthermore, we have begun to receive allocation-related questions concerning, for example, the optimum volume of placements for an online video advertisement when a TV commercial has 1,500 gross rating points. Consequently, we felt the need for planning that is even more efficient and effective than that which had been employed to date.

Manabe:

From the perspective of digital media, to date we have done simulations of the reach of prebooked advertisements through such methods as the Yahoo! Brand Panel. However, when it came to performance advertising, we were not able to do simulations using traditional methods. The Cross Media Planner solves the problem. Using this tool, we are able to perform simulations encompassing performance advertising, including TV commercials, online video advertisements and display advertisements.

Optimizing television commercial and online video advertisement planning

――: Exactly what kind of tool is the Cross Media Planner?

Manabe:

Utilizing Dentsu’s d-holistics database, which can analyze media contact and purchasing behavior based on single-source data, we can immediately perform simulations of reach, campaign awareness, brand awareness, and other parameters. For example, we can even calculate such metrics as daily ad spend and ad reach, integrated figures for each ad type, and the extent of overlap between TV and digital.

――: So, you are now able to plan based on the results of precise simulations. What sort of reactions have you received from clients?

Nakayama:

Among the clients who have been very TV-focused until now, some have started to show an interest in digital advertising thanks to the impetus of the Cross Media Planner. With each campaign executed, research data have built up, and we are seeing the beginning of tangible moves to define norm values unique to each client.

Optimizing television commercial and online video advertisement planning

In addition, in competitive pitches focusing exclusively on online video advertisements, and with the maximization of campaign recognition defined as the key performance indicator (KPI), we have been appraised highly and have won some campaign accounts in connection with which our proposals included integrated planning for TV commercials combined with online video advertisements based on simulations using the Cross Media Planner.

Manabe:

In digital media, there is a tendency to make judgments based on the number of user click-throughs. However, in the case of online video advertisements, the fact that it is a video leads to brand-building. Through the Cross Media Planner, we are now able to plan based on simulations of not only reach, but also of such metrics as campaign awareness and purchasing intention. This is extremely significant.

Nakayama:

The Cross Media Planner is used to formulate budgets and allocate media. While monitoring the level of KPI attainment, the information is applied to the allocation process for the next campaign. Hence, the annual plan-do-check-act (PDCA) advertising program cycle has also become easier to manage.

What do we need to think about when looking at ways to increase the effectiveness of online video advertisements?

――: When carrying out planning and campaign execution that integrates TV commercials and online video advertisements, on what specific things should we focus?

Matsuno:

When planning and executing online video ad campaigns, managing the PDCA cycle based on the four key parameters of target reach, frequency, recency, and creative is crucial for maximum advertising effectiveness.

Optimizing television commercial and online video advertisement planning

With regard to planning and campaign execution based on the four key parameters, a deeper, multifaceted analysis can be achieved by combining TV commercials with online video advertisements than is possible with online video advertisements alone.

The Dentsu Group is working to solve issues through Dentsu Data Driver (D3), a cross-functional team of data-analysis professionals gathered from across the Dentsu Group. For example, in the case of online video advertisements used on their own, KPIs are determined from the reach attained by previous case examples. However, when such advertisements are run in combination with TV commercials, the KPIs that we should be targeting change. This becomes clear when one looks at such questions as what the impact is on total reach and frequency when TV and online are combined. This raises another key question, concerning what the impact is on the level of ad contact for each demographic target group when we cross-reference our data with a single-source panel.

We also need to address such issues as whether we should change the KPI for groups that do not watch much TV, even though this is the KPI we should target in online video advertisements for demographic groups that watch the average amount of TV. Among actual case examples, there have been those in which we determined a separate KPI for each target demographic group.

Optimizing television commercial and online video advertisement planning

――: Have there been other cases in which you needed to employ a different or novel approach when setting KPIs?

Matsuno:

Yes, there have been such cases. One thing that is particularly interesting is that when an audience comes into contact with several types of creative, combining TV and online, we see a phenomenon occurring whereby the target demographic group’s recall ratio and recognition ratio rise as a result. In such situations, we respond by setting a KPI to generate contact with various types of creative, and by working to design an ad distribution scenario to maximize this effect.

With regard to creative, we are sometimes asked by a client whether it would be better to use the same or a different creative for both online video advertisements and TV commercials. We respond on a case-by-case basis, based on multiple case examples and backed by quantitative data.

Providing solutions that suit changing times and client needs

――: Please tell us about the current issues you are facing and your outlook for the future.

Nakayama:

In the digital advertising and media sectors, we see a continuous stream of new products and trends, as well as the ongoing elimination of less successful products. It is a sphere in which the churn rate is very high. The issues we currently face include identifying the latest trends in the overall market and in media, as well as in the menu of online video formats; acquiring the latest knowledge; and constantly updating our planning tools in response to these trends. Furthermore, we have seen the shift toward mobile devices advance greatly in recent years. Driven by increasing smartphone contact time, we believe that reach measurement in smartphone advertising—including smartphone apps—is a matter that urgently needs to be addressed. Thus, we want to advance the development of a system that can measure reach even within smartphone apps, and build up a body of case examples.

Matsuno:

On the ad distribution management side, digital media to date has attracted attention because of the low unit price of cost per click and page view. However, it will become increasingly necessary to consider how digital can be effectively utilized for branding activities. One media company has launched a method for providing new added value by offering brand-lift research if an advertiser places ads over a certain volume.

For us, rather than simply focusing on selling ads with an apparently extensive reach, we need to make client proposals based on a dispassionate assessment of the situation. That includes examining how much should be spent on which medium in order to maximize branding-related KPI. Since utilization of online video advertisements for branding activities will still require cooperation with each media company, we intend to pursue this task, too.

Manabe:

Cross Media Planner has the advantage of being able to perform simulations across the range of ad types. To increase the menu of ad types available to us, we will need to cooperate with media companies. Consequently, it is vital that we advance this cooperation. Furthermore, since we have to think about the development of methods for media measurement and tools that are compatible with the data we are able to utilize, I believe that the issues we face are numerous. However, through the establishment of D3 as a cross-functional team, with data as a key focal point, we now have in place a structure through which we can provide one-stop solutions. Consequently, I believe that we are in a position to progress to the next stage quite rapidly.

Project members

Naoyuki Manabe

Naoyuki Manabe

Data Management Department
Digital Marketing Center
Dentsu Inc.
(From July 1, 2016, he has been transferred to
Data Technology Center, Dentsu Inc.)

Azumi Nakayama

Azumi Nakayama

Media Business Strategy Department
Media Business Innovation Office
MC Planning Division
Dentsu Inc.
(From July 1, 2016, she has been dispatched to Dentsu Digital Inc.)

Yasuhiro Matsuno

Yasuhiro Matsuno

Consulting Division
Digital Strategy Acceleration Department
NEXTAGE Dentsu Inc.
(From July 1, 2016, he has been transferred to Dentsu Digital Inc.)

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