By Rob Newton Measuring the impact of online video is something of a passion for us at Google. It’s been three years since we unveiled Brand Lift for YouTube and brands have seen great success. But the last piece of the puzzle has been how does online video drive offline sales? This is particularly true for consumer packaged goods (CPG) companies, for which the vast majority of sales – over 90% – happen offline. Thanks to our new integration with Oracle Data Cloud – a leader in the emerging Data as a Service (DaaS) industry that measures the sales impact of digital media – we now have a solution to answer that question. Today we’re announcing the availability of sales lift studies in the US, for CPG advertisers using TrueView video ads.
The value of video We’ve been testing this capability for a while, and have seen promising early results: 78% of TrueView campaigns we studied on YouTube showed an increase in offline sales, with 61% driving a statistically significant lift in sales of the advertised brand.1
To build this solution we worked with Oracle Data Cloud to develop the first in-depth application of their DLX ROI product on video formats, and we studied a range of CPG video campaigns running TrueView ads across food, health and beauty, beverage and homecare. We built this with privacy at the center, and no personal data is exchanged between the companies.
Early client successes One campaign we measured, Gatorade’s “We Love Sweat,” earned $13.50 sales in return for every dollar spent on TrueView (return on ad spend, or ROAS). This stunning success was due in part to persistent branding and strong creative geared specifically for driving sales. Gatorade’s campaign was also interesting because it delivered a remarkable 16% lift in sales among new buyers that had seen the video vs. new buyers that had not – according to Oracle Data Cloud a typical lift in this metric hovers around 2.5%.
Similar to Gatorade, parent company PepsiCo also saw sales lift success with their campaign for Doritos. Not only did our DLX ROI solution show that their 30-second creative drove higher lift in sales among exposed households than a 15-second version, but they saw particular targeting techniques – namely topic targeting and remarketing – drove greater sales lift compared to a demographic target.
Mars also participated in our DLX ROI test for their Pedigree pet food brand, and the sales lift studies helped them make key creative decisions. They tested a video that opened with strong branding against one that saved their branding for the end, and learned that the video with strong upfront branding drove nearly 7x greater sales lift. As Laurent Larguinat, Global Director of Mars Consumer and Market Insights said, “With this new offering, YouTube is rounding out a full funnel measurement solution for video. We’re excited to continue to see these results for all of our campaigns.”
This new sales lift offering drops the last piece into place for full funnel measurement of CPG campaigns on YouTube, and we’re excited to bring you new creative and media strategy insights that drive incremental sales as we scale these studies.
Posted by Mark Thomas, Brand Measurement Product Manager
1. Google/Oracle Data Cloud Sales Lift Meta Analysis, US (TrueView CPG campaigns tested between April 2015 and March 2016)