In an era when it is increasingly difficult to capture consumers’ attention, the world leader in small domestic appliances decided to test the effectiveness of YouTube and the relevance of a branding/performance mix between YouTube and TV in order to boost sales of its Moulinex Companion food processor. Feedback from Guillaume Planet, Vice President of Media and Digital Marketing at the Seb Group.
Measuring marketing ROI: more than a need, an absolute necessity
Not all marketing approaches are equal. Some are more profitable than others. Having the right indicators helps to focus on the levers that have a real impact and to invest more wisely. “We are convinced that analytics needs to be at the heart of marketing and advertising,” explains Guillaume Planet. “We must look beyond the usual indicators (e.g. exposure) by including action and attitude indicators.” The Seb Group, supported by the 1000Mercis, Artefact and KR Media agencies, relies on short- and long-term monitoring tools. Every day, the French domestic appliance group tracks the performance of its campaigns using a dashboard. In the long-term, Seb is working with Ekimetrics, a strategy consultancy, and pioneer and leader in Data Science, to accurately measure the contribution of each of its marketing approaches (TV, YouTube, Display, searches, email, social media and other OLVs) on its business KPIs.
In order to do this, Ekimetrics adopted a Marketing Mix Modelling (MMM) approach to model total online and offline sales of the Companion, iCompanion, Companion XL and iCompanion XL food processors since 2016 in France. Ekimetrics took into account all the variables (digital media, offline media, CRM activity, promotions, sponsoring, price, etc.) and their indirect impact on sales to create a realistic and comprehensive picture of the various media actions.
Cook more for less!
Why cook for two when you can just as easily cook for ten? Why work on different types of media separately when they are more effective together? To prove this, Ekimetrics analysed the ROI by lever and by KPI and also measured the impact of YouTube on sales of the Moulinex Companion. From lessons learned to recommendations: follow this perfect five-step media mix recipe.
#1. YouTube – effective for the entire conversion tunnel. YouTube represents 3% of media investments and has a 4.1% impact on reputation and a 4.7% impact on sales. In other words, YouTube influences attention as much as buying, and its contribution to sales is greater than its share of voice.
#2. Increased profitability of YouTube. In terms of the investments studied, YouTube is three times more profitable than TV and 1.4 times more profitable than other OLVs.
#3. Exploring YouTube and TV synergies. Since mid-2016, Seb has triggered YouTube during key market times, taking advantage of TV and YouTube synergies. According to Ekimetrics, this optimisation generates 1.3 times more ROI (or 17% of additional ROI) on video (TV+YouTube). This is because YouTube has an incremental reach able to target users at a lower cost.
#4. Searches – a ROI generator to focus on. While a generic search is 5.5 times more effective than TV, a brand search is 8 times more effective. If Seb can optimise its bids and get top billing in terms of generic searches, Ekimetrics forecasts a 77% improvement in performance. And a 33% increase for brand searches.
#5. Adopting the right media mix to maximise business impact. If, as suggests Ekimetrics*, Seb multiplies its YouTube investment by 2.5, its generic search budget by 3 and its brand search budget by 1.3, the impact of this media mix on sales will be a 19.7% increase (in the period). Searches will account for 4.4% and YouTube 5.1%.
At the end of the trial, Seb compared the results of the MMM approach using the monitoring indicators of its campaigns and found a contradiction: “Our indicators suggested we should drop YouTube. However, when we used modelling techniques and completed the analysis, we actually found that it works very well. So, we changed our monitoring indicators. ”
Seb’s philosophy when it comes to measuring performance can be summed up in three words: creativity, clarity and agility. “Because our indicators were outdated, we had to find new ways of measuring our marketing performance. We also had to clearly structure our objectives and KPIs to make a distinction between strategic indicators and operational ones. We also had to become agile. Thanks to digital, we can measure performance in real time, as well as develop our communication approaches and indicators. ”
Measure ROI, add a mix of traditional and digital media and then savour the results.