Sales correlation analysis for LOral

Executive Summary

January 2014

Research Key Findings

Digital media was particularly effective to optimize LOral TV advertising reach and
frequency: it guaranteed that all those exposed to advertising has at least 5 OTS.

Shift in penetration among those exposed to TV (5+OTS) + Digital was +10% vs.
the shift among those exposed to TV (5+OTS) only

Shift in market share in value among those exposed to TV (5+OTS) + Digital was
+37% vs. the shift among those exposed to TV (5+OTS) only

This analysis under real environment conditions can not definitely attribute the
observed shifts to the presence of digital since other factors that could not be
totally controlled (price, promotions, ...) may have had an impact: this is a stopgap solution until more advanced methodologies (being developed in US and some
EU markets) are available in Spain

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Scope of the analysis

All display and online video LOral campaigns in H1 2013 were measured

Month 1

Month 2

TV campaign

Month 3

Month 4

Month 5

TV campaign

Other digital campaign

YouTube
campaign

Month 6

TV campaign

Other digital campaign

GDN campaign

GDN campaign

YouTube
campaign

GDN = Google Display Network

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Scope of the analysis

All the campaigns for these four categories with display or online video were measured

Hair Care

Facial Skin Care

7 campaigns

9 campaigns

Hair Colorant
3 campaigns

Make-up
5 campaigns

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Methodological Highlights
How is individual purchase measured?
Kantar WorldPanel (KWP) operates a longitudinal individual purchase panel where 4900 representative Spanish online panelists are reporting their
individual offline purchases daily via product scanning (barcodes).
How is digital ad exposure measured?
The panelists connect weekly to the KWP online panel portal. During that connection KWP determines whether the panelist was exposed or not to
the tags previously inserted in the digital ads.
How is TV ad exposure measured?
Kantar Media (KM) panel is the Spanish currency measurement panel that provides TV exposure data at individual level based on a household TV
meter where each individual has to identify him/herself via a remote control .
KM panelists are fused with the KWP individuals to assign them the TV exposure data (to all TV content as well as to advertising). This is operated via
a fixed fusion 4 times per year.

How were the different exposure groups created?

Only TV (5+OTS)

Light TV (<5OTS) +Digital

TV (5+ OTS)+Digital

How is sales correlation calculated?

The analysis compares the evolution of each metric among different exposed groups (period prior to the campaign vs period during the campaign).
The evolution in each metric among those exposed to Only TV (5+OTS) is established as the baseline and fixed at 100 to index comparisons between
groups.
What are the analysis period for purchase behavior measurement?
PRE measurement: 7 months (from June to December 2012)
POST/ DURING measurement: 7 months (from January to July 2013)
What is the sample size?
Purchase behavior was analyzed at category level and results were aggregated for a total L'Oral brand. Final sample size was:
Hair care:
Only TV exposed: 901
TV+Digital exposed: 617
Hair colorant:
Only TV exposed: 199
TV+Digital exposed: 120
Facial skin care:
Only TV exposed: 485
TV+Digital exposed: 524
Make up:
Only TV exposed: 279
TV+Digital exposed: 208

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Two thirds of those exposed to LORAL TV campaigns received

less than 5 TV OTS
Exposed to LOral TV campaigns were split in terciles with same size by their level of exposure to these campaigns

The highest 3rd had x7.5 TV OTS more than the lowest 3rd
1/3
100

11.6 TV OTS

1/3
1.5 TV OTS
4.1 TV OTS

1/3
0.0
Total
Exposed to LOral
TV campaigns

High TV exposed

Medium TV exposed

Low TV exposed

Non TV exposed

The 1/3 of those

exposed to TV LOral
campaigns that were
most exposed to them

The 1/3 of those

exposed to TV LOral
campaigns that were
medium exposed to them

The 1/3 of those

exposed to TV LOral
campaigns that were
less exposed to them

Non exposed to
LOral TV
campaigns

OTS = Opportunity To See = one single contact with the ad in a given media
Average TV GRPs: 434 (max: 769; min: 137)
Average TV reach: 71.3%

Source: Kantar Worldpanel 21 L'Oral campaigns including TV+Digital from January to July 2013

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Digital optimized frequency, making it possible to deliver at least 5

campaign OTS also to the 2 thirds less exposed to TV
Average number of media OTS impacting viewers by their level of exposure to the TV campaigns
Average TV OTS received by each group

Average Digital OTS received by each group

11.6
5.7

5 OTS

5.3

6.3

5.3

4.1
1.5

Total

High TV exposed

Medium TV exposed

Low TV exposed

4.8
0.0
Non TV exposed

Source: Kantar Worldpanel 21 L'Oral campaigns including TV+Digital from January to July 2013

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More than 75% of digital GRPs were delivered out of the high TV
exposed group
Share of media GRPs received by each group based on their level of exposure to the TV campaigns
100

TV GRPs

100

Digital GRPs
76.1% of digital GRPs delivered out of
High TV exposed

64.9

23.9

24.8

28.1

24.3

23.8
10.4
0.0

Total

High TV exposed

Medium TV exposed

Low TV exposed

Non TV exposed

Source: Kantar Worldpanel 21 L'Oral campaigns including TV+Digital from January to July 2013

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Shift in penetration among those exposed to TV + Digital was 10%

higher vs. the shift among those exposed to TV only
Shift in penetration comparing the campaign period vs. the period prior to the campaign
Penetration definition: Percentage of individuals who purchased LOral beauty products at least once throughout a specified period
Sign. increase compared to Only TV exposed (test Z; confidence level: 95.5%)

110
100

102

min=92
max=124

Only TV
(5+OTS)

Light TV
(<5OTS)

+Digital

min=99
max=145

TV (5+ OTS)
+Digital

Baseline (100) = shift in penetration during the campaign period vs. the period prior to the campaign among those exposed to Only TV (5+OTS)

Weight of analyzed groups (Total online households exposed

=100%): Only TV 5+OTS (47.1%); Light TV + Digital (21.3%); TV 5+OTS
+ Digital (31.6%)

Source: Kantar Worldpanel 21 L'Oral campaigns including TV+Digital from January to July 2013
TV exposure defined as 5+OTS according to Spanish market conventions on effective TV reach

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Shift in market share in value among those exposed to TV + Digital

was 37% higher vs. the shift among those exposed to TV only
Shift in market share in value comparing the campaign period vs. the period prior to the campaign
Market share in value definition: Brand spend as % of the total market value
Sign. increase compared to Only TV exposed (test Z; confident level: 95.5%)

137
124
100

min=97
max=161

Only TV
(5+OTS)

Light TV
(<5OTS)

+Digital

min=115
max=145

TV (5+ OTS)
+Digital

Baseline (100) = shift in penetration during the campaign period vs. the period prior to the campaign among those exposed to Only TV (5+OTS)

Weight of analyzed groups (Total online households exposed &

category purchasers=100%): Only TV 5+OTS (43.8%); Light TV +
Digital (21.6%); TV 5+OTS + Digital (34.6%)

Source: Kantar Worldpanel 21 L'Oral campaigns including TV+Digital from January to July 2013
TV exposure defined as 5+OTS according to Spanish market conventions on effective TV reach

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thank you!
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