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    Pepsi Lipton Number Work

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    Sachin Kamra
    The company generated $340 million in net revenue last year. They are considering whether to continue advertising Lipton Brisk in the Super Bowl or shift funds to online ads. Online ads have lower CPM costs and allow for more control over impressions. Based on conversion rates and costs, online ads provide a more cost-effective option to reach customers.

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    © All Rights Reserved
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    Pepsi Lipton Number Work

    Uploaded by

    Sachin Kamra
    258 views16 pages
    The company generated $340 million in net revenue last year. They are considering whether to continue advertising Lipton Brisk in the Super Bowl or shift funds to online ads. Online ads have lower CPM costs and allow for more control over impressions. Based on conversion rates and costs, online ads provide a more cost-effective option to reach customers.

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    Pepsi Lipton case study

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    The company generated $340 million in net revenue last year. They are considering whether to continue advertising Lipton Brisk in the Super Bowl or shift funds to online ads. Online ads have lower CPM costs and allow for more control over impressions. Based on conversion rates and costs, online ads provide a more cost-effective option to reach customers.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    258 views16 pages

    Pepsi Lipton Number Work

    Uploaded by

    Sachin Kamra
    The company generated $340 million in net revenue last year. They are considering whether to continue advertising Lipton Brisk in the Super Bowl or shift funds to online ads. Online ads have lower CPM costs and allow for more control over impressions. Based on conversion rates and costs, online ads provide a more cost-effective option to reach customers.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 16

    340 Million $ net revenue

    industry is growing at an CAGR of 8%.

    Already bidded for lipton Brisk in Super Bowl, now key decision is whether to continue it or not?

    Chose Lipton brisk over lays and mountain dew becayse they wanted to give a chance to the new brand.

    Social media was something new for the Pepsi. Everytime they advertised with the the TV ads and nothing new.

    746 million sales, 340 m profts. High margins.

    50% people skip ads while watching TV and 29% people skip ads while watching Ads on Internet.

    increased time spending ads online is 28% and inceeased money spent is only 13%.
    scope for spending more money in order to get more attention from the customers.

    for online ads in 2010 data.


    22% of the customers who watched the AD will purchase the product.
    6% of the people who watched the ad online will order an subsription.

    86% of US mobile interent users watched tv and used phone at the same time.

    prime time shows and super bowl were activities which were associated with social media activity the most.

    average 12,000$ offered to the bloggers.

    12.5 million ad impressions at a cost of 3,00,000. possible to add more influencers and increase the reach if more m
    on an average one influencer is bringing 5,00,000 impression after spending average 12,000$ offered to an influence

    youg male wants 1) entertainment 2)humore 3) interactivity

    if we go online
    one impression is costing
    0.024
    24
    cost per thousand impression will be 24$ here if we choose to advertise via onlline medium
    as of Jan 2010, 75% of the millenials use social media networking sites.
    Impression and CPM.
    1,95,000 spent in the online ads in the last year by brisk. 120
    Parent company spent 1,11,35,000 in online ads last year.
    100

    charges and details of ads in the TV 80

    60

    40

    20
    120

    100

    80
    100 Million views in super bowl 60
    network prime time cost per thousand impressions is 23$
    super bowl cost per thusand impression is 28$ 40

    20

    0
    Super Bowl Prime Time

    Impressions(in M) CPM

    Final decision.
    Go with the online ads.
    Cheaper CPM.
    Calculatable customer accquisition cost.
    total impressions can be increased If needed.
    Measurement of TV vs. Internet

    V 

    et 

    0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

    Time Spent Money Spent 

    real cost would be 33.8$ because 29% people skip ads while watching the ad.

    0.15 0.15$ is the customer acquisiton cost for the online ads.
    Updated Impression and CPM.

    120

    100

    80

    60

    40
    120

    100

    80
    but real cost would be
    60 46$ because 50% people skip ads while watching the TV ads
    but real cost would be 56$ because 50% people skip ads while watching the TV ads
    40

    20

    0
    Super Bowl Prime Time Internet

    Impressions(in M) CPM

    sales in 2010 249098200


    per package cost 0.99
    total unique purchases made 251614343.434343
    Time Spent Money Spent 
    Internet  28 13
    TV  31 39

    Internet  TV 
    Time Spent 28% 31%
    Money Spent  13% 39%

    Medium Impressions(in M) CPM


    Super Bowl 100 28
    Prime Time 90 23
    Internet 12.5 24
    sales target for 2011
    per package cost
    total unique purchases made
    Medium Impressions(in M) CPM
    Super Bowl 100 56
    Prime Time 90 46
    Internet 12.5 33.8
    Conversion 100% 50% 25% 12.50%
    Cost 300,000 300,000 300,000 300,000
    Impressions 12500000 6250000 3150000 1575000
    Views 8875000 4437500 2236500 1118250
    Purchases 1952500 976250 492030 246015
    Sales 1932975 966487.5 487109.7 243554.85
    Gross Profit $ 869,838.75 $ 434,919.38 $ 219,199.37 $ 109,599.68
    3rd Factor $ 289,946.25 $ 144,973.13 $ 73,066.46 $ 36,533.23
    Calculation

    71%
    22%
    Purchases*0.99$
    45% average margin
    3rd factor
    Cost 300,000 600,000 1,200,000
    Impressions 12500000 18750000 28125000
    Views 8875000 13312500 8875000
    Purchases 1952500 2928750 1952500
    Sales 1932975 2899462.5 1932975
    Gross Profit $ 869,838.75 $ 1,304,758.13 $ 8,69,838.75
    TV Online Ads
    Time (in seconds) 15 37.002 37.002

    Time (in seconds)


    40 37.002
    35

    30

    25

    20
    15
    15

    10

    0
    TV Online Ads

    TV Online ads
    CPM per second(in $) $ 1.53 $ 0.65

    CPM per second(in $)


    $1.80
    $1.60 $1.53

    $1.40
    $1.20
    $1.00
    $0.80
    $0.65
    $0.60
    $0.40
    $0.20
    $-
    TV Online ads

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