Background
In China, advertisers face the problem of low inventory and high inflation from TV stations. With the emergence of multiple screens, it becomes even more difficult for marketers and their media-agency partners to rely heavily on TV and avoid other media.
The question is how to obtain the most effective combination of media according to consumer habits.
Johnson & Johnson employed a tool called MixReach, a cross-media optimisation tool developed by Miaozhen Systems, a Beijing-based technology company. The brief was to effectively redistribute Neutrogena media investments across two key markets: Beijing and Chengdu.
Execution
Consumer habits in Beijing and Chengdu differ significantly, so Johnson & Johnson used MicReach to analyze different plans based on various combinations of multiple screens.
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Analysis for Beijing (click to enlarge) Analysis for Chengdu (click to enlarge) |
It was found that Beijing consumers reflected more affinity toward consumption of a combination of TV and online videos. Adding more screens to the mix did not result in significant increment in reach. Based on the above results, a two-screen combination was used for Neutrogena advertisements in Beijing.
On the other hand, Chengdu consumers showed less dependence on a combination of TV and online video, with reach around 50 per cent. To get incremental reach in Chengdu, other screens needed to be added to the media mix.
Adding more than three screens would enhance reach to 60 to 80 per cent but would also negatively affect ROI, as multi-screen often calls for more investment.
The analysis also showed that TV alone could deliver reach at a maintenance level. Hence the brand decided to employ a multi-screen combination for the new product launch period only and support later with TV.
Results
The applied media strategies not only helped Johnson & Johnson reach more target consumers, but also resulted in savings on media spending.
The brand is estimated to have saved RMB1 million (about US$157,000) in one month (March 2012) and in just two cities (Beijing and Chengdu).
MixReach was introduced in 2010 by Miaozhen Systems and its partner Millward Brown. In 2012, the company launched MixReach Professional, which expand the number of cities and sample sizes to 38 cities in China. In addition to Johnson & Johnson, P&G and Microsoft are using MixReach to help them enhance their return on cross-media investment.