International: Study: TV Spots Reduce Consumers' Sensitivity to Price Change
Latest Apollo Findings Come as Project Looks to Move Out of Pilot Stage
BATAVIA, Ohio (AdAge.com) -- TV ads really do reduce sensitivity to price differences, particularly when consumers are frequent buyers in a category, according to new research from the Apollo pilot project, which is tracking consumers' media and shopping habits.
The study by Apollo, which combines media-exposure data collected from consumers using Arbitron's Portable People Meters with purchase data culled from Nielsen Co.'s ACNielsen Homescan consumer panel, found exposure to TV ads decreases consumers' tendency to react to price changes.
The study, involving an unnamed "Brand X," broke consumers down into heavy, medium and light category purchasers, finding that heavy purchasers were most likely to have their price sensitivity reduced by exposure to TV ads.
Cumulative effect
Exposure to the ads also had a cumulative effect, the study found. Even one or two exposures to TV ads for the brand produced some reduction in price sensitivity. Consumers exposed to the brand's ad four or more times showed even less sensitivity, "with behavior changes tapering off at between seven and eight exposures," according to a statement by the joint backers of Apollo, Arbitron and Nielsen.
Though it's unclear what brand was involved, it's likely to be a high-household-penetration brand from one the Apollo pilot's charter clients, which include seven advertisers with a combined $6.8 billion in measured U.S. ad spending. They include Procter & Gamble Co., Unilever, Kraft Foods, Pfizer and SC Johnson. It would need to be a fairly widely purchased brand to produce statistically meaningful results in the pilot group of 11,000 of PPM-equipped consumers.
The Modeling Group, a unit of ACNielsen that does marketing-mix modeling for clients that include P&G, conducted the pricing analyses. Research based on such modeling long has suggested that advertising reduces price sensitivity, but the Apollo backers noted that such a detailed analysis of purchases and consumer segments isn't possible using conventional marketing-mix modeling.
Apollo will release more complete results of the study at the Association of National Advertisers conference later this week in Scottsdale, Ariz., a spokesman said.
Aiming for national rollout
The latest data come as Apollo makes a final try at building enough client support for a full national rollout of the service, whose plans initially called for a nationwide single-source panel of 30,000 households. Arbitron and Nielsen said they, along with the seven client members of the Apollo steering committee, had agreed to extend the pilot period into the first quarter of 2008 after Arbitron Chairman-CEO Stephen Morris said on a July investor conference call that the pilot could conclude as soon as this month.
"There's a lot of excitement about the potential of the data to drive market and decision-making, but there is also the reality of price-value and other alternatives," Mr. Morris said.
In its statement yesterday, Apollo said the additional quarter of research will aim at building "the strongest possible business case for the commercialization of the proposed single-source marketing-information service." The additional time also will allow further testing and analysis of the commercial-detection capabilities of the PPM, which earlier this week Arbitron said would include coding ads on several radio networks for detection, and additional development of software and systems to make data more easily accessible.
Non-TV advertising
Apollo backers also said they would conduct additional tests on the impact of non-TV advertising, including print and internet ads. Apollo uses web surveys of the Homescan panel to track exposure to such things as magazine ads and newspaper circulars.
Through the first two quarters of this year, Arbitron racked up losses of $1.8 million on its half of the project, Chief Financial Officer Sean Creamer said on the July conference call.
Since its inception in 2005, Apollo has intrigued marketers, but its potential price tag has made them wary. Initially, Apollo sought 0.5% of clients' marketing budgets, amounting to seven figures annually even for midsize advertisers. After some clients balked, Arbitron and Nielsen agreed to launch the pilot instead last year.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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