Case study
Southeast Asia: CPG Marketing Mix Modeling Meta Analysis
Nielsen + TikTok: MMM accurately measures the impact of TikTok advertising
Introduction
Measure the full funnel impact of TikTok advertising
TikTok, a global entertainment platform, captures the attention of users across Southeast Asia. With its full-screen, sound-on video formats, it has led to an explosion in users and time spent with the platform across the region.
With Nielsen’s Marketing Mix Modeling solution, TikTok explored the full funnel impact of its advertising campaigns across the lower funnel (sales), middle funnel (purchase intent) and upper funnel (brand awareness).
Objective
Quantify effectiveness and return on advertising spend (ROAS) of TikTok activities
The objective was to evaluate the overall value of TikTok, including its short- and long-term impact on advertising formats, brand equity metrics, synergy with other advertising channels, and effectiveness of diverse creative advertising.
Challenge
Harness the power of Marketing Mix Modeling
As advertising investment increases on TikTok, there is a growing need to demonstrate its business impact, yet measuring this influence poses a challenge.
Advertisers’ approach to this question is as diverse as the region itself, from short- to long-term sales, through to long-term brand equity and how TikTok works with other channels.
To understand the value of a TikTok investment, all of these perspectives must be considered and analyzed.
Solution
Use Marketing Mix Modeling techniques to identify the sales and brand equity impacts
Marketing Mix Modeling studies have been the established method for measuring efficiency and effectiveness for more than 30 years.
TikTok commissioned Nielsen to analyze 10 consumer packaged goods (CPG) brands spanning the Food & Beverage and Health & Personal Care categories across Indonesia and Thailand to measure marketing mix impacts from sales to brand equity for these TikTok campaigns.
Key findings
$2.3
Strong ROAS in both short- and long-term
The study yielded $1.7 short-term return for every advertising dollar spent in Southeast Asia from TikTok Paid ads. Compared to other channels* in the study, TikTok gave 2.0 times better results.
Beyond direct sales outcome, TikTok delivered 2.2 times more long-term sales for brands via its impact on brand equity than other channels* measured in this study.
When taking into account both short-term ROI and long-term brand equity, TikTok outperformed other channels* by 1.4 times, with a total ROAS of $2.3 for every advertising dollar.
9.4%
Synergistic impact between television and TikTok advertising
Nielsen found 9.4% incremental sales when TikTok ads are executed together with television ads for at least 4 weeks in Southeast Asia, which is highest among all other media channels* in this study.
$2.3
Leverage In-Feed ads as core and boost with high-impact formats during key moments
Nielsen measured TikTok ad products, revealing that In-Feed ads drove high short-term ROAS of $2, long-term ROAS of $2.8, and showed the highest sales response against other ad products. Thus, In-Feed ads should be preferred as the base ad product on TikTok platform.
For key moments, consider high-impact reservation formats like Branded Effect, which revealed short-term ROAS of $2.3, and long-term ROAS of $3.0, driving amplification with higher efficiency.
$2.0
Utilize a combination of creator and brand ads to maximize effectiveness
Both creator and brand ads drove returns more than their spends, with brand ads delivering short-term ROAS of $1.5, and creator ads driving even higher ROAS at $2.
Note: Modeled with two year historical data in 2023.
*Other Nielsen measured media includes TV, Radio, OOH, Cinema, Digital Display & Video (excluding Facebook & Google).
Non-TikTok spends are based on rate card (monitored) and not actual spends from advertisers.
How it works
Nielsen Marketing Mix Modeling offered a comprehensive evaluation of TikTok’s campaigns through tailored econometric models. These models established connections between detailed sales data spanning 2-3 years and a wide range of TikTok’s campaign activities, as well as other media platforms such as TV, digital video, digital display, print, out-of-home (OOH), and non-marketing factors like distribution, price, competition, seasonality, macroeconomic effects, and more.
The complete Marketing Mix Modeling solution involves data validation, metric calculation (e.g., revenue and profit), and a final insights presentation with recommendations to enhance marketing return on investment. Additionally, Nielsen executes several secondary modeling solutions including synergy analysis and long-term effects.
Conclusion
Unlock advertising’s full potential with Marketing Mix Modeling
Nielsen’s Marketing Mix Modeling solution demonstrated its effectiveness in providing a complete picture of sales and brand equity impacts across the Southeast Asia market for TikTok advertising. By leveraging Marketing Mix Modeling principles and historical data, the study shed light on the untapped impacts of campaigns, presenting advertisers with actionable recommendations to harness higher returns from TikTok investments.
Advertisers today expect more insights than just ROI from their brand investments. They are eagerly seeking to understand the impact on short-term returns and long-term equity. We commissioned a study with Nielsen and are happy to share how TikTok delivers ROI across the full funnel.
Balendu Shrivastava
Head of Measurement
TikTok, AMA
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