Where advertising budgets went in Q1
The chart above is from MarketingCharts showing the Top 10 Advertising Categories in Q1 2020 using Nielsen Worldwide data. MarketingCharts adds: “Figures show the percentage share of advertising spend across 21 countries: Australia; Belgium; France; Germany; Indonesia; Ireland; Italy; Luxembourg; Malaysia; Netherlands; New Zealand; Norway; Phillipines; Portugal; Puerto Rico; Singapore; South Africa; Spain; Thailand; UK; USA.”
What was written in the past 3 months
Knowing where ad dollars went from January to end March 2020, we decided to compare with our AI-powered classifications in the past 3 months (3/3-6/3) to gauge if there was a correlation. TrustedOut, at this point of its development, solely focus on the US and France.
Reminder: the goal of this post is to match numbers between what is spent and what is written.
1/ Matching Nielsen’s categories and TrustedOut’s taxonomy
The 10 categories from Nielsen, representing 72% of the ad budget spent in Q1 must be compared to TrustedOut’s taxonomy of 24 branches and 292 classifications.
We use this method of matching 2 taxonomies with large accounts so they can continue to use their own.
For this exercise, we asked our Head of Information and Editor in Chief to do the work.
2/ Editorial weights per country over a period of time
Each and every article is profiled to get its weight in the relevant classification (here’s how TrustedOut works).
Example: This article from CNN: American Airlines expands its US flight schedule for July is classified as:
59.6% Industries › Transportation › Air
40.4% People › Entertainment And Leisure › Tourism And Travel
3/ What is spent and What is written
The cumulation of those weighted classifications over a period of time gives the Editorial weights as shown in the table below
A dry run to demo capabilities.
We are comparing 2 different periods of time, January-March for Nielsen and March-May for TrustedOut and 2 different geos, 21 countries (including France and the US) for Nielsen, and 2, France and the US, for TrustedOut to showcase what can be read from this exercise.
Of course, we offer these analytics to customers with selected set of data.
72% bought vs 36-40% of what is written
Or, another way to say it, 60+% of what is written is NOT within 70+% of budget spent.
According to Nielsen, Food attracts 8.9% on Ad Spent but the Editorial Offer is only 1-1.3%.
Yes, we are talking ad revenues that have to do with page views. But when the discrepancy is so important it might be a good idea to boost exposure of those pages and since dollars are coming in, to have more pages to satisfy the demand.
… and Crowdy areas
To the contrary, Entertainment gets 7.5% of the budgets but has 12.4-14.6% of Editorial offer. Might be a good idea to switch to more ad-opportunistic classifications
An interesting case is the Top1: Healthcare. More than 1 USD over 10 spent on this Nielsen category. And, again, that’s for January-March 2020. In the past 3 months, TrustedOut measured 6.8-7.2% which high compared to normal times before Covid-19.
To gauge if this focus did last over time, we looked at the numbers for the past month (compared with past quarter):
+91% articles on Healthcare in the US. +53% in France.
Actions from here.
Our goal is to help make greater decisions with greater insights.
For Ad buyers: Be Nielsen in this example.
Contact us with customer budgets and let’s map the Editorial opportunities. Basically, you will replace Nielsen in this example and compare your numbers with ours, updated daily to optimize your ROI.
For Publishers: Get more inventory where budgets are.
Contact us with the projection you have on ad spent trends and let us map how to be best positioned in terms of inventory and competitive offering.
Interested? Contact us!