WM3 2008

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WORLDWIDE MULTI MEDIA MEASUREMENT

How advertising effects loyalty

Leslie Wood

Abstract

Understanding and measuring advertising and buyer loyalty have both been on marketers’ agendas for many decades.  However, the act of bringing the two agendas together has been limited due to the data requirements associated with doing so appropriately.  While Project Apollo has ceased, it has left behind an incredibly valuable pure single source data set that allows us to explore individual’s loyalty and buying behaviour in relation to advertising exposure within different windows. 

We demonstrate a new approach to analysis, which focuses on a key parameter (Phi) from the Beta Binomial Distribution, which can be used to better understand the relationship between advertising and purchase probabilities (a measure of Latent Loyalty).  The new approach demonstrates that we have much to learn about advertising and that such data is incredibly powerful in terms of its ability to measure relationships that we could only guess at before this Single Source data was available.  

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Leslie Wood

Leslie Wood Research (LWR) is a media research consulting company offering two main areas of service: general media research consulting and programming and designing proprietary media systems that are simple to use and bring sophisticated thinking to communication planning and buying. LWR offers vast experience in media research, with programmers, statisticians, modelers, knowledgeable industry consultants, data processing/data entry staff and access to many industry services and data.

LWR is deeply involved in Project Apollo, a joint venture of Arbitron and VNU with substantial support from Procter & Gamble. LWR built the user interface and software applications for PPM’s National Marketing Panel test in Philadelphia. This included being responsible for many of the business rules regarding weighting, data integration, defining statics/intab criteria, media measurement and reporting for that test and designed the software to process that data.

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