Monday, January 6, 2014

Bravo Media and Nielsen Reveal Results of Study Showing Viewer Loyalty Linked to Consumer Purchasing

According to a new Nielsen study commissioned by Bravo Media, television advertising seen on networks whose audience is highly loyal has a significant and heightened impact on purchase occasions and sales. The custom study which measured 75 cable entertainment networks during 1Q13 revealed that NBCUniversal Cable Entertainment ranks on top with USA at #1 and Bravo at #2 for network loyalty among adults 18-49.

"Viewer loyalty is harder to come by as content options have proliferated across screens, but we do know that viewers of certain media properties are more passionate than others," said Dave Kaplan, Vice President, Research, Bravo Media. "This study allows us to quantify just how committed these viewers are, and a multi-phase validation demonstrated that viewing loyalty is linked to what matters most of all to our advertisers: high-spending consumers and a lift in actual sales."

Bravo also instituted an additional study with Insight Strategy Group in an effort to establish the benefits of reaching a passionate and committed audience and to identify specific ways to build deeper brand connections with consumers through media and marketing.

Network Loyalty Boosts Sales Impact

Based on the custom Nielsen study, almost 20% of Bravo's and USA's audience is defined as being "high loyal," or those that watch the network 10+ days in primetime in the quarter. Then, to assess the impact of advertising in loyal environments such as Bravo and USA on actual sales lift, Nielsen matched TV viewing data with single-source purchase data from Nielsen Catalina Solutions and Nielsen Buyer Insights for four consumer packaged goods and retail campaigns airing in 4Q12-1Q13. Results showed that:

· Advertising on high loyal networks including Bravo and USA generated a +1.55X greater lift in purchase occasions than low loyal networks for the first measured retail advertiser

· Advertising on high loyal networks including Bravo and USA generated a +3.14X greater lift in spend per purchasing occasion than low loyal networks for the first measured consumer packaged goods advertiser

· Advertising to more loyal Bravo viewers generated a +2.38X greater lift in purchase occasions than less loyal viewers for the second measured retail advertiser

· Advertising to more loyal Bravo viewers generated a +3.16X greater lift in spend per purchasing occasion than less loyal viewers for the second measured consumer packaged goods advertiser

Loyal Viewers Are The Heaviest Spenders

The Nielsen study also revealed additional robust evidence connecting loyal viewers and purchasing decisions across an array of product categories. A fusion with product expenditure data for 74 categories from GfK MRI demonstrated a consistently positive relationship between the level of loyalty viewers have for a particular network and their propensity to be the highest spenders across industries - from automotive to quick service restaurants to consumer electronics and beyond (114 index on average).

Taken together, the MRI fusion, Nielsen Catalina Solutions and Nielsen Buyer Insights analyses reveal that high loyal networks attract the heaviest consumer spenders from the start, and then these consumers respond more favorably to advertising seen on these networks as sales lift is boosted to a substantially greater degree.

Loyalty Extends To Individual Programs

In addition to measuring the impact of viewer loyalty to the overall networks, Nielsen also examined 538 individual programs across cable entertainment in 1Q13, ranking them by loyalty (% of viewers who watched four to five of the most recent five episodes were considered "High Loyals"). This evaluation found strong results for a number of Bravo series, with five of the network's primetime shows ranking in the top 60 including: "Top Chef," "The Real Housewives of Beverly Hills," "Vanderpump Rules," "The Real Housewives of Atlanta" and "Flipping Out." Additionally, USA had several primetime original series ranking in the top 50 including: "Suits," "White Collar," "Covert Affairs," "Psych" and "Burn Notice."

Survey Confirms High Passion Environments Equate To Increased Brand Impact

On a parallel track, and as part of a two-phase project, Insight Strategy Group (ISG) led a large-scale, nationally-representative survey of nearly 2,200 people to provide robust quantification of what consumer passion is, what it means financially for brand marketers and how specifically it can be fueled. Insight Strategy Group also conducted a series of in-depth, face-to-face and phone/video interviews in four markets with 50 individuals to qualitatively understand the origin and impact of a variety of product category passions in their lives and how they cascade to those around them.

Findings from the ISG survey corroborated that messaging to viewers on high-passion networks such as Bravo is directly linked to an upsurge in advertising receptivity and reported purchase behavior. Key observations from the study include:

· 49% of Bravo viewers pay more attention to commercials on Bravo (vs. 39% of viewers of low-passion networks)

· 51% believe products featured on Bravo are more trustworthy (vs 42% on low-passion nets)

· 54% are more likely to buy brands/products they see on Bravo (vs. 44% on low-passion nets)

· 49% are more likely to spend more for products/brands featured on Bravo (vs. 40% on low-passion nets)

The full results from the study can be found here: Data should be accredited to Nielsen and Insight Strategy Group as appropriate.


Nielsen: In this custom study conducted by Nielsen Entertainment Television (NETV), Nielsen has identified a framework for developing loyalty metrics for individual programs and whole networks, utilizing 1Q13 as the proof of concept test period. For programs, Nielsen quantified loyalty as the % of viewers who watched 4-5 of the most recent 5 episodes. For networks, Nielsen labeled loyalty as the % of viewers who watched the network 10+ days in a quarter. The proof-of-concept study used a three-tier approach based on the number of discrete days in which a network is watched or number of episodes in which a program is viewed. Those loyalty tiers were then fused with 74 product categories through GfK's MRI service in order to measure the relationship between network loyalty and consumer expenditure. Additionally, four national television advertising campaigns were analyzed based on actual consumer buying behavior through Nielsen Catalina Solutions and Nielsen Buyer Insights, to quantify the link between exposure on high-loyal networks and subsequent product sales impact. Interested in further validating and defining this framework, Nielsen is conducting additional due diligence around this metric with plans to launch a loyalty metric to the broader marketplace by early Q1 2014.

Insight Strategy Group: ISG conducted a nationally-representative online quantitative survey with 2,186 A18-54 during August 22-29, 2013, as well as 60- and 30- minute qualitative face-to-face and phone/video interviews with 50 A24-45 in five US markets (NYC, LA, Chicago, Dallas, Houston) during July-Sep 2013.

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