Evaluating The ROI Of Radio And Billboards

A fast moving consumer goods case study

Brian Cusick
ACNielsen
Rick Abens
Kraft Foods

Introduction

All too often, analytic suppliers present marketing mix results that focus on volume decomposition and neglect actionable recommendations. As ROI (return on investment) becomes the key business decision criterion, the supplier-user relationship is more focused on actionable recommendations that the business team can more readily leverage.

This paper is a case study which reviews a billboard and radio advertising analysis that produces ROI based recommendations. The advertising campaign was for Kraft Foods' Bull's-Eye Barbeque Sauce, which is a meat enhancer product and part of the United States FMCG (fast moving consumer goods) industry. Of important note in this case is the fact that recent industry consolidation has resulted in manufacturers holding more brands in their portfolios. Currently, multiple brands are fighting to justify their marketing budgets within the company's and the category's portfolio. An important implication of this trend is the need for smaller brands to find creative low cost options for equity-building marketing. Finding themselves in this situation, the brand team turned to radio and billboard advertising as a low cost equity driver. Determining the payback of the advertising campaign is the primary goal of this analysis.

 
Background