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Nielsen's simple formula for measuring ad effectiveness

Posted by Kyle Montero on March 5th, 2013 at 8:00 am

At the (ridiculously beautiful) Terranea Resort, during the iMedia Video Summit, Randall Beard, the global head of advertising solutions at Nielsen, shared some fascinating insights in his address entitled, "Cross-Platform Measurement: The Current State and Future Opportunities."

In today's multi-device world, where consumers view content on several platforms, a marketer's ability to understand who is viewing ads and how the ads resonate with viewers is becoming more and more of a challenge. To begin to address this issue, Nielsen identified the top three questions clients ask regarding cross-platform campaign management, also known as "client pain points":

  • How much should I spend?
  • How do I allocate across platforms?
  • How do I optimize in real time?
To provide the information necessary to answer these questions, Beard discussed Nielsen's "3R framework" -- a simple formula to evaluate marketing success. The "3Rs" consist of reach, resonance, and reaction:
  • Reach: The initial goal of advertising is to reach the intended audience.
  • Resonance: After delivering the impression, the advertisement must break through to actually communicate with the audience and influence opinion.
  • Reaction: If the advertisement reaches and resonates with the consumer, a behavior change will occur likely resulting in an increase in sales.
By measuring the 3Rs across all screens and devices, Nielsen believes it is on the path to providing digital marketers with the foundational metric to increase the ROI of video ad spend by simplify measurement in a complicated cross-platform world. Beard finished his address with the following conclusions:
  • Traditional TV still dominates viewership (Americans watch nearly five hours of video each day, 98 percent of which they watch on a traditional TV set), but cross-platform viewing is growing (85 percent of mobile owners use their tablet or smartphone while watching TV at least once per month, while 40 percent do so daily).
  • Advertisers are still struggling with cross-platform allocation.
  • The main goals of clients are to extend reach and/or increase overlap.
  • There is a large opportunity to improve online audience delivery.
  • Cross-platform execution is not meeting marketers' needs.
Moving forward, Beard believes success will truly come to those marketers that measure their campaigns in real time. While tracking reach and resonance across multiple platforms, pay attention and optimize your campaigns to drive the best possible reactions.

"Grunge tablet pc, mobile phone, notebook" image via Shutterstock.

One Response to “Nielsen's simple formula for measuring ad effectiveness”

  1. The best way to measure the effectiveness of any kind of advertising is with some advertising math called “The Barrows Popularity Factor.” It shows you how you can actually QUANTIFY the relationship between your advertising and sales and it can help your company make a lot more money. Plus, the math is extremely easy to use and all of the calculations can be done by one person, in moments, with just a simple calculator. You can read all about it in a booklet called “The Barrows Popularity Factor.”

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