IRI, Dynamic Logic Measure Impact of Digital Advertising on CPG Perceptions, Sales

Information Resources Inc (IRI) has announced a new measurement index that is designed to help consumer packaged goods and retail marketers understand how their online campaigns impacted consumer perceptions and ultimate sales of their brands.

The system, AdIndex Connects with IRI, is built on the foundation of Dynamic Logic’s AdIndex, which measures the impact of digital advertising.

“IRI’s rich purchase data and consumer insights combined with Dynamic Logic’s unique ability to measure the brand impact of digital advertising deliver an extremely powerful approach to fully understand the return on investment of their online media programs,” says Robert I. Tomei, president of consumer and shopper insights for IRI.

AdIndex Connects with IRI works by integrating with Dynamic Logic’s proprietary technology for determining exposure to digital advertising with IRI’s view of the consumer and shopper via its Consumer Network panels, which provide purchasing, demographic, attitudinal and usage information.

In addition to branding measures and short-term sales impact, the solution assesses how effective a campaign is at reaching specific behavioral targets such as high-volume shoppers in a brand’s category or frequent shoppers of a competitor’s brand, the companies say.

In a recent study for a consumer packaged goods company, for example, attitudinal data showed that online advertising had positive results on brand metrics but did not significantly impact the number of individuals intending to purchase.

Further investigation of IRI’s Consumer Network purchase data revealed that exposure to the ad campaign did result in incremental sales - although not among new buyers. Exposure to the online ad campaign drove existing buyers to make additional purchasing trips, thereby increasing sales. Dynamic Logic then investigated the specific creative executions that proved to be more effective at driving purchase intent among existing buyers and made recommendations on how to enhance the campaign to resonate with non-buyers.

Dynamic Logic already offers a proprietary method for tracking and improving online ad effectiveness, as does comScore, but IRI says its service is different because its allows companies to analyze online consumer behavior and exposure to ads across multiple sites, writes Adweek.

IRI claims the service will reach 90% to 95% of all unique visitors online. Currently, the platform is usable only for campaigns with impressions of at least 50 million.

A recent study by comScore and dunnhumbyUSA indicated that online advertising can be as effective as television advertising in lifting retail sales of CPG brands. The study, based on a panel of 200,000 consumers who were members of grocery store loyalty programs, indicated that online advertising lifts retail sales of CPG products by an average of 9%, compared to an average lift of about 8% from TV campaigns.