Magnit, with the participation of Beeline, created its own methodology for assessing the effectiveness of the impact of TV advertising on sales

2022: Creation of a methodology to assess the effectiveness of the influence of TV advertising

On October 27, 2022, Magnit announced that, with the participation of the beeline, it had created its own methodology for assessing the effectiveness of the impact of TV advertising on sales. It allows you to assess the audience of commercials and track its demand for advertised products. As part of the test, measurements were taken on brands that were promoted within Magnit's advertising TV campaigns. For some items, an increase in sales was more than doubled. The solution can help the retailer's suppliers reliably assess the effectiveness of their TV campaigns, improve the accuracy of working with the target audience and adjust content based on consumer perception.

Magnit transmits an on-air certificate of beeline broadcasting, which analyzes data on the dynamics of the provision of beeline TV services to users (aggregated statistical reports on the dynamics of the provision of IPTV communication services). Further, using its own analytical services and machine learning models, the beeline compiles an impersonal aggregated report with information about the target audience of users who are in contact and not in contact with advertising 1 = and transmits it to Magnit experts.

Based on the report, Magnit collects a segment of users with identical parameters according to its database of customers - loyalty card holders, resulting in two groups of users: those who saw advertising and those who did not see it. Next, the retail chain, based on its own purchase data from both groups, highlights users who have purchased the promoted product. Thus, two segments are formed: those who saw advertising and bought the advertised product (test group), and those who also bought the product but did not see advertising (control group). Sales indicators by group are compared and the presence of sales growth due to contact with advertising is detected.

With the help of this mechanics, the study was carried out on brands in different price segments. TV advertising of coffee and cheeses, as well as chocolate and semi-finished poultry products, had the greatest impact on the increase in offline sales as part of test measurements. Retail network partners can also regularly measure the influence of their own videos, including in the context of thematic TV channels.

To manage Digital Signage, Magnit is developing its own open platform, which provides FMCG brand marketers with access to impersonal structured data from retail audiences and partners. Users can form customer segments into more than 100 behavioral attributes and several thousand product categories, as well as upload audiences directly to advertising platforms. The presented methodology of Magnit with the participation of beeline complements the possibilities of evaluating the promotion of FMCG brands.

The TV segment remains a powerful driver for attracting audience attention to the product and motivation to buy. Now many Russian brands of the federal and regional level, against the background of a decrease in marketing activity on the part of international players, are actively involved in communication with buyers, for which they use coverage media advertising. Our tool will allow us to objectively assess the effectiveness of TV campaigns on the Magnit audience, optimize the marketing costs of brands and achieve the best effect for buyers and businesses, "said Mikhail Tarasov, Director of the Department for Development and Sales of Advertising Products of the Magnit retail chain.

Big data allows you to evaluate the effectiveness of traditional channels, including TV. Mechanics are designed not only to understand the contribution of TV advertising to targeted actions. It allows you to determine the time ranges, channels and programs for launching a new advertising campaign for CA or to analyze from these positions the optimality of an existing TV split. Similar approaches to measuring the contribution of advertising to sales are possible for outdoor advertising, local advertising within the network, digital advertising and other channels, - said Irina Tchaikovskaya, leading manager for the development of innovative beeline products.