According to a "Super Bowl Media Study" from Brand Keys, Novartis, Volvo, and Go Daddy will be challenged to get a positive return on their Super Bowl advertising spend. Brand Keys developed a Return on Equity (ROE) model to measure which brands will be best reinforced by advertising during the big game.
Their analysis basically says established brands will garner a higher ROE than non-established brands for advertising during the Super Bowl. For example, Go Daddy (not them again) received the lowest ROE score (-6) and Consentino USA (-4) didn’t fair much better. On the other hand, Frito-Lay (+15) and Pepsi (+13) scored the highest on the Brand Keys Return on Equity measurement.
Now … I am really confused as to what this ROE score means or how exactly it was measured. The article (click here for the PDF) doesn’t address any specifics behind the ROE measurement.
Anyone able to school me on the intricacies behind the Brand Keys Return on Equity measurement?
Presuming that this ROE model is proprietary (hence the lack of detail re: how the scores were determined), I still found the article text informative enough as to why ROE is a big deal.
As a TV viewer, I am constantly bombarded with commercial advertising, but by and large, it serves only to annoy me. I understand that commercial TV is called that for a reason, and all that, but overall, I don't feel compelled to say, go eat at Burger King because they ran a slew of TV ads.
Thus, this study seems like someone has the right idea, which is to proactively determine whether your advertising is spurring any kind of positive action on the viewer's part, or if it is just "entertainment". (In terms of ROE vs ROI, I think they are trying to determine what harm/benefit might be realized to the company's brand identity by running the ads they chose during the Super Bowl.)
So I'd agree with the choice of the football movie getting high marks. The audience is clearly interested in football, so of course, they'll want to watch a movie about it! Same with the low marks for the mortgage commercial. Ho hum.
Posted by: Effern | January 28, 2005 at 11:00 AM
Yep, it's proprietary. But here is an overview of how they did it:
http://www.brandkeys.com/whatwedo/
And I was correct, this is measuring the harm/benefit to the company's Brand Equity in the course of running ads.
So this could mean those "objectionable" Quizno's ads a while back were bad both for ROI and Brand Equity, if it compelled people to not eat there (no positive action was spurred by the ads) but people also hard-wired their brains to never eat there because of those "objectionable" ads. Lose-lose, indeed.
Posted by: Effern | January 28, 2005 at 11:07 AM
Effern ... thanks for schoolin' us. Good stuff.
Posted by: johnmoore (from Brand Autopsy) | January 28, 2005 at 11:24 AM