October 10th is "Statistics Day." XICA uses statistical analysis to announce the impact of the COVID-18 pandemic on advertising

Improved cost-effectiveness for TV commercials and video ads

October 2021, 10 is Statistics Day. To coincide with Statistics Day, XICA Corporation (Headquarters: Chiyoda-ku, Tokyo; CEO: Yoshiaki Hirao; hereinafter, XICA) is offering a statistical analysis-based advertising solution calledADVA We will announce the impact of the COVID-19 pandemic on advertising, as revealed by Adva.

In order to clarify the impact of COVID-40 on advertising, we used statistics to analyze the change in cost-effectiveness of each advertisement before and after the COVID-XNUMX pandemic for over XNUMX companies. As a result, we found that advertisements were divided into two groups: those whose cost-effectiveness decreased and those whose cost-effectiveness improved.

[Background to this analysis]

Since January 2020, the unprecedented COVID-1 pandemic has caused advertisers to significantly change their advertising and promotional activities, such as postponing or canceling campaigns and various events. Furthermore, as consumer behavior changes amid the COVID-XNUMX pandemic, the opportunities and places where consumers come into contact with advertisements have also changed.
Even in this rapidly changing environment, advertisers are constantly seeking optimal advertising investments. However, it is difficult to grasp the extent to which COVID-19 is affecting their advertising, and many companies are struggling to optimally allocate their budgets to advertising media.
Since 2016, XICA has been the No. 1 advertising effectiveness analysis tool in Japan.ADVA MAGELLAN Adva Magellan's analysis utilizes statistical analysis, allowing the company to comprehensively analyze the effectiveness of advertising measures, including not only advertising strategies but also external factors such as the weather and the impact of COVID-19.
In order to clarify the impact that COVID-40 has had on advertising, we conducted a statistical analysis of changes in the cost-effectiveness of each type of advertising campaign before and after the pandemic for over XNUMX companies.

[Analysis of the impact of COVID-19 on advertising]

<Summary of Results>

Due to the impact of COVID-19, advertising has been divided into two groups: those whose cost-effectiveness has decreased and those whose cost-effectiveness has improved.

• The decline in advertising was mainly in offline advertising such as in-store promotions and transit advertising, which is thought to be largely due to the impact of people refraining from going out.
• The types of advertising that saw an increase were television commercials, video ads, and radio ads, suggesting that people are spending more time at home and that changes in the means of transportation they use when going out have led to a change in the media they use.

■ The impact of COVID-19 on advertising

<Details>

Advertising has become less cost-effective due to the COVID-19 pandemic

①POP/in-store advertising

The cost-effectiveness of in-store advertising has also declined, even excluding the impact of the decline in the number of customers visiting stores due to restrictions on activities such as refraining from going out. The reason for this is that customers visiting stores under restrictions on activities often have a clear product they want to purchase, so they are less affected by in-store advertising such as POP.

②Transportation advertising (under a state of emergency)

As a result of the state of emergency declaration, the number of people using public transport has decreased, resulting in a decline in the cost-effectiveness of public transport advertising.

Advertising has become more cost-effective during the COVID-19 pandemic

1) TV commercials and video ads

It is assumed that this is due to the fact that people are spending more time at home due to the stay-at-home trend, which has led to an increase in the amount of time they spend watching programs and videos on television and smartphones, as well as an increase in the amount of time people are spending gathering information on smartphones, which has led to an increase in opportunities to purchase products online.

②Radio advertising

This suggests that the shift from public transportation to automobile travel has led to more opportunities to hear radio advertisements. It is also speculated that the rise in radiko listenership due to people refraining from going out and the spread of remote work has also contributed to this.

3) Transportation advertising (after the state of emergency is lifted)

The cost-effectiveness of transit advertising declined during the state of emergency, but once the state of emergency was lifted and the number of transit users recovered, its cost-effectiveness improved.

The results of this analysis show that changes in people's behavior during the COVID-19 pandemic have had a significant impact on advertising effectiveness. It also became clear that not only changes in the number of people physically exposed to advertising (such as the number of customers visiting a store), but also changes in the characteristics of those who come into contact with the advertisement (such as their motivation for visiting a store) have an impact on advertising effectiveness.
XICA will continue to contribute to optimizing companies' advertising investments and maximizing business results through statistical analysis using Adva Magellan.

About ADVA

This is a service that utilizes data science to maximize the results of marketing, mainly TV commercials. We provide a one-stop service that includes visualization of advertising effectiveness, optimal budget allocation, creative analysis and production of TV commercials, and media planning and buying. By utilizing statistics in the field of marketing, ADVA aims to create a world where "everyone can make the right decisions based on data."

[COMPANY PROFILE]

Company name: XICA Co., Ltd.
Representative: Yoshiaki Hirao, CEO
Location: 2F, 5F, 2F TAS Building, 2-3-6 Nishikanda, Chiyoda-ku, Tokyo
Established: May 2012
URL: https://xica.net/

*The names and logos of XICA and ADVA are registered trademarks or trademarks of XICA Corporation in Japan and other countries.
*Other company names and product names mentioned are trademarks or registered trademarks of each company.

(*1) Shoppers Eye, Inc., a member of the Cross Marketing Group, conducted a survey of 10 marketing personnel from listed companies to find out their impressions of 149 marketing mix modeling tools and on-off integrated analysis tools.

• Survey period: October 2019-10, 16
• Survey overview: Image survey of 10 marketing mix modeling tools and on-off integrated analysis tools
• Survey method: Internet survey
• Survey participants: 22 people aged 69-149, male and female, nationwide, working in marketing positions at listed companies, and working for companies that advertise on TV commercials

[Customer Inquiries]
XICA Co., Ltd. Marketing Department
TEL: 03-6380-9357
E-MAIL: marketing@xica.net