Online2Store

Understanding the
offline sales impact of
online advertising

L’Oréal Nutrigloss
September – October, 2010
Google Confidential and Proprietary
L’Oréal Nutrigloss – Main Findings
1. YouTube made L’Oréal’s media spend
more efficient, as swapping some TV for YT
achieved equivalent sales for 13% less
budget
2. Adding a YouTube campaign after your
TV burst is over paid off, with sales up to
17% above their post-TV level
3. Up to 35% of those exposed to the
YouTube & display campaign were not
reached by TV
4. The YouTube & Display campaign was
very effective in complementing TV, over-
exposing those least exposed to the TV
campaign

Source: MarketingScan – Google, France

Google Confidential and Proprietary
Base: Total Households
 O2S In partnership

Geo Lab
with

Google & MarketingScan, a

high-value partnership:
• The GeoLab platform is a
French exclusivity, unique in
Europe
• Market currency, used by
major brands such as Coca-
Cola, Danone, Mars, Ferrero,
etc.
• Established in 1994

Google Confidential and Proprietary

 O2S In partnership

Geo Lab
with

Methodology
3 statistically identical test markets
In-store sales are measured
Possibility to differentiate advertising stimuli from
market to market in order to isolate the specific
impact of your media campaign on in-store sales

Angers Le Mans Poitiers

298 000 households 193 000 households 127 000 households

Google Confidential and Proprietary

 O2S In partnership

Geo Lab
with

Special features:
-Cut or heavy-up TV / radio /
outdoor
-Measure the reach of TV
campaigns (using state-of-the art
TV meters) at the household level
-Measure the reach of online
campaigns using smart tagging
(measures time spent watching)
-Account for in-store promotion

Google Confidential and Proprietary

 O2S In partnership

Geo Lab
with

How sales are

measured
• Sales data collected from 34
points of sales at the purchasing
basket level
• In-store promotion collected by
MarketingScan employees
• Measured stores account for
about 95% of the total sales of
FMCG products in the test
markets

Google Confidential and Proprietary

 O2S In partnership

Geo Lab
with

How campaign reach is

measured
• State-of-the art TV audience
measurement
•TV usage collected using the
same set-top box as Médiamétrie
(market currency in France)
• Online ad exposure collected using
Alenty tags:
• Measures time spent watching
ads in addition to ad impressions
• Measures both home and work
usage
Google Confidential and Proprietary
Nutrigloss Test design

3 scenarii:
1. Control (Poitiers)
TV: 443 GRPs

Net Impact of the

2. Budget Swap (Angers) Web
campaign on top of a
TV: 319 GRPs YT&Display reduced national TV

3. Online on Top (Le Mans) Net Impact of the

Web campaign on
TV: 443 GRPs YT&Display top of national TV

Google Confidential and Proprietary

Nutrigloss campaign
timeline

Aug 30 Sep 6 Sep 13 Sep 20 Sep 27 Oct 4 Oct 11

TV Target group: 25-34 yo

women
9 weeks pre-period
YouTube + GDN 2 weeks post-period

Google Confidential and Proprietary

YouTube 60%
-Homepage
Autoroll
Expandable
-Partner Watch
-ROS

GDN 40%

Google Confidential and Proprietary

Nutrigloss TV
campaign
details

Gross TV spend
Source: Kantar Media Intelligence
Share of
Medium TOTAL spending Week no.

34 35 36 37 38 39

TELEVISION 1 259 277 100 326 394 441 968 475 752 15 163
TV NAT
THEMATIQUES 84 841 6,74 24 588 24 936 28 011 7 306

TV NATIONALE 1 174 436 93,26 301 806 417 032 447 741 7 857
Google Confidential and Proprietary
Main results

Google Confidential and Proprietary

 Swapping TV for YouTube achieved equivalent
amount of sales for 13% less budget
Budget
Control
Swap
YouTube: 12% of national TV

Cost -13%
TV: 100% of national TV: 75% of national

Sales
(vs pre-
campaign) +13% +15%
Source: MarketingScan – Google, France
Base: in-store sales (measured at the POS level) Google Confidential and Proprietary
 YouTube & GDN helped maintain sales at a high
level after the TV campaign had ended

Base Volume Sales / Week (100 = pre-period)

128 Between +14% Control
and +17%

124 120
117 Budget
Swap

102 Web on
100 Top

Before campaign During TV After TV

Source: MarketingScan – Google, France

Base: in-store sales (measured at the POS level) Google Confidential and Proprietary
 Up to 1/3 of the audience reached by
YouTube was pure incremental reach
Example: Budget Swap scenario (Angers)
80%

70%
5%
60%
12%
50%

40% Total audience reached

30%
by the YT campaign: 17% 70%
20%
53% YT exclusives: 5% (1/3 of
total YT)

10%

0%
TV only TV + YouTube / Display YouTube / Display only Total campaign reach

Source: MarketingScan – Google, France

Base: online households in Angers Google Confidential and Proprietary
 Up to 1/3 of the audience reached by
YouTube was pure incremental reach
Example: Budget Swap scenario (Angers)
80%

70%
5%
60%
12%
50%

40%

30%
60% of YouTube
exclusives are « CSP+ » 70%
20%
53% (ie: high-revenue)
households
Ind. 127 vs TV-only
10%

0%
TV only TV + YouTube / Display YouTube / Display only Total campaign reach

Source: MarketingScan – Google, France

Base: online households in Angers Google Confidential and Proprietary
 YouTube has been very effective in
complementing TV by over-exposing those least
exposed to the TV campaign
Example: Online on Top scenario (Le Mans)

30% % of YT ad
impressions

19%

12% 11%
7%
5% 5% 5% 4%
2%
0%

# of TV OTSs 0 1 2 3 4 5 6 7 8 9 10+

Avg.=3.6 OTSs

Source: MarketingScan – Google, France

Base: online households in Le Mans Google Confidential and Proprietary
 YouTube has been very effective in
complementing TV by over-exposing those least
exposed to the TV campaign
Example: Online on Top scenario (Le Mans)

30% % of YT ad
72% of YouTube ad impressions
impressions landed on
households with 3 or less
19% TV OTSs

12% 11%
7%
5% 5% 5% 4%
2%
0%

# of TV OTSs 0 1 2 3 4 5 6 7 8 9 10+

Source: MarketingScan – Google, France

Base: online households in Le Mans Google Confidential and Proprietary
Thank You

Google Confidential and Proprietary