Digital Marketing Brief

1. Digital Marketing Brief digitalmarketingteam September 10, 2009 Confidential

2. Presentation Flow • Rationale for Pitch • Objectives of the Pitch • Selection Criteria • Rules and Timelines • Agency Briefing

3. Rationale for Digital Agency Pitch • Strategic focus of Smartbro in 2009-10: youth segment primary and young professional secondary • These two segments use the internet more than any other segments. • Research also shows online drives affinity and improves awareness. • Media spend in online has increased from 2005 in a drive to bring overall marketing costs down and deliver results. • Social media, web 2.0, user-generated content, social networks – an opportunity for Smart to own the space • Further fragmentation of media and the consumer’s attention require careful use of media

4. ABCDE 13-29 vs. ABC 13-29:TV (98) remains highest to deliver reach while internet delivers highest affinity (224) Going digital 179 213 149 148 224 222 119 130 106 106 Source: Media Index Q2 2008 (Top 10 Media)

5. Among internet activities Chatting, Social Networking and Email registers highest penetration to ABC 13-29 Video Conference Making a Purchase Events Guide/Cinema Listing Newspaper Online banking Personal Research (Gen Browsing) Affinity Index vs. ABCDE Youth Sports Software Download Health Info Video Download Game Download Social Networking Blogs Email Online Radio MP3 Download Chat Business Info Picture Download Online Gaming Employment Opportunity Academic Research Internet Phone Weather Forecast Internet Fax Others Going digital Reach Source: Media Index Q2 2008

6. Going beyond reach and affinity, WOM is key to engaging the youth Going digital TV Bubble Sizes = Influence OOH Internet Magazines Newspaper Radio POS Word of mouth Transit Memorability Events Cinema Product sampling DM SMS Source: Intuition among the ABC Youth Jan 2009 Engagement Scores Memorability – I often remember the name of products that advertise Favorability – I feel more favorable towards products that advertise Influence – I am tempted to buy or have bought products Favorability

7. Objectives of the Pitch • To drive Smartbro into the social media, web 2.0 space through creative, high-impact and results-oriented campaigns complementing current and future consumer marketing activities • To clearly identify and implement roles of digital communications – mobile and web – in delivering acquisition, usage and retention targets effectively aiding Smartbro to hit its revenue targets • To provide Smartbro with the agility required to launch campaigns on-time and on-spec • To execute breakthrough, WOW-of-the-industry marketing innovations through creative, cost-efficient, high impact, and results-oriented digital media campaign • To cause a tipping point change in the industry powered by creative social media executions effectively giving Smartbro ownership of the space

8. Digital marketing, scope of work • Use of new media channels in marketing • User-generated content • Blogging/Microblogging • E-mail marketing • Portals • Mobile advertising • Display • Search engine marketing • Online reputation management • Online games • Digital sponsorships • Widgets and applications • Affiliate marketing • Three key considerations to run digital marketing programs • Community • Content • Context • Six marketing values • Quality of creative content • Innovation and strategic value • Price/Cost • Sophisticated analytics and measurement systems • Proficiency in emerging, interactive, or digital media • Traditional offline media cooperation

9. Digital Marketing ecosystem • 1 Search marketing • Search engine optimization • Paid search: PPC • Paid for inclusion / feeds • 2 Online PR • Portal representation • Social media: blogs and • Feeds and communities • Media alerting services • Online rep management • 3 Online partnerships • Affiliate marketing • Sponsorship • Co-branding • Link-building • Widget marketing • Offline communications • Advertising • Personal selling • PR • Sponsorship • Sales promotion Offline communications 6. Direct mail 7. Exhibitions 8. Merchandising 9. Packaging 10. WOM Smartbro • 4 Display • Site-specific media buys • Ad networks • Sponsorship • Behavioral targeting • Branded portals • Advergaming • 5 Email marketing • DM/CRM campaigns • List marketing • Co-published emails • Newsletters • 6 Viral marketing • WOM • Buzz marketing • Viral mechanisms • Viral media • Community

10. Digital marketing activities Operating processes Performance improvement including management information, web analytics, and customer analysis Design guidelines and operating procedures Technical infrastructure including service level management Management processes

11. Selection Criteria

12. Selection Criteria Details: Communications strategy proposal and buying efficiencies (60%) • BRAND/PRODUCT • Understand business/marketing objectives • Understand brand/product/service imagery • Understand brand/product/service usage • Manage product/service portfolio/messages • CATEGORY/COMPETITION • Understand what the competition is doing • Analyze media usage by the competition • Detect media opportunities • TARGET MARKET • Understand the target market deeply • Able to translate marketing targets to campaign targets • Identify unique, compelling and relevant insights • COMMUNICATIONS STRATEGY • Innovate digital media resourcefully and creatively • Able to translate business objectives to communication objectives and strategies • Flexibility of the agency to develop and implement defense plans • Exhibit digital media innovations, massive use of social media and web 2.0 tools • Demonstrate flexibility in executing across different platforms whilst managing carefully messages delivered • BUYING EFFICIENCIES • Negotiation policy and approach • Able to consolidate total buying for digital media • Cost efficiency of proposed executions • TECHNICAL/TOOLS APPLICATIONS • Availability and maximizing the planning, buying, monitoring tools

13. Requirements from the Agency • Credentials presentation • Company information • Detailed CVs of key executives, managers and staff to service Globe • Full disclosure of past and current accounts • Recent works on digital marketing • Communications Objectives and Strategies presentation which should include the following: • Available tools and applications • Planning and buying/negotiation process • Fully-costed communications plan • Provide leave-behind materials • Printed copies of all materials above • DVD of all materials

14. Rules • To protect confidential information, all agency members present during the briefing will be mandated to sign non-disclosure agreement forms • Information from Smart will be given in identical conditions among the participating agencies • Information requested by one agency will also be given to other participating media agencies

15. Smart / Rogue Contact Persons • Rupert Japlit – GM, Rogue Digital • Paolo Avila – Business Dev’t Director, Rogue Digital • Eleanor Modesto – President, Rogue Digital

16. Agency Briefing • Smartbro: Background • SmartBro: Brand Architecture and Positioning • Communications Brief

17. Mobile phones have enabled Filipinos to become connected Telecom Penetration Rates

18. IDD Tariff Drop GSM Prepaid SIM-Swap OTA Reloading Unlimited Use Tariffs From 3 million to 71 million sims sold in 10 years Mobile Industry Sims (in 000’s)

19. Liberalization gave rise to competition

20. New mobile players were backed by strong principals • First Pacific Group • NTT Communications Capital • Filipino shareholders • PLDT • Public • Singapore Telecom • Ayala Corporation • Deutsche Telekom • Filipino shareholders

21. Consolidation has led to a virtual duopoly in the mobile segment Share of Mobile Industry Sims Digitel 14% Extelcom 6% Islacom 6% Globe 6% Globe Mobile 35% Piltel36% PLDT Mobile 51% Smart 37%

22. Two mobile operators capture almost all of market subscribers and revenues 2008 Outlook Mobile Revenues 2008 Outlook Mobile Industry Sims

23. In 2009, wireless market to grow by +19% with SIM penetration nearing saturation at 92% of total population SIMs/ Subscribers (MM) Penetration Rate (%) +19% +31% +30% *Multi-SIM rate coming from Vector, no industry data available Source: Industry 2005 - 2008, Vector 2005 – 2008, NSO

24. Broadband/internet market rapidly growing Landline Subscribers – In 000 Industry Broadband Subscribers – In 000 +2% YoY +77% YoY 2,948 3, 023 450 450 335 390 412 410 1,751 1,773 • Globe currently with 21% share of the DSL segment, and 15% share of the over-all market • Globe’s share of broadband net adds increased to 18% in 3Q from 9% in 2Q * Broadband subs as of 3Q08 based on estimates for Bayantel and Digitel.

25. Growth Strategies towards 2010 aspirations • Accelerate rollout of cost-efficient wired and wireless broadband infrastructure • Provide the best experience for customers in accessing Internet content Make Internet available to all Filipinos Enter the Digital Space • Drive step change in VAS, music and gaming • Tap digital media opportunities Develop new lines of business • Explore enablers outsourcing opportunities and develop new business models

26. Agency Briefing • Smartbro: Background • Smartbro: Brand Architecture and Positioning • Communications Brief

27. Background • Smartbro has grown aggressively through the years • The consumer broadband market is very competitive • Products are almost homogenous • Consumer broadband is fast become a commodity • Competitive activities and market evolution dictated the need for change – with convergent services expected to come in the near future

28. Smartbro Brand Position Objective • Review and define/ refine the Smartbro positioning • Develop/ refresh the required brand experiences (positioning, personality and touch-points) to deliver the revised brand architecture

29. Final Brand Positioning Statement Providing the best and most value-for-money broadband service to the Filipino consumer • Encapsulates the essence of Smartbro • Represents how the brand is to be perceived • Drives all our communications • Inspires the physical touch-points of our brand

30. Attributes • Best • We make the experience of communication hassle free.. • We are very easy to understand and very easy to use. • We speak in our customers language and simplify technology, never complicating life. • We are knowledgeable, confident and clear in our customer interactions. • The quality of our communications is clear and consistent. Brand Attributes: The building blocks for the Brand Positioning; defining the way we behave Benefit • Happy Consumer • We understand that our customers have aspirations in life. • Our role is to remove the obstacles in communication technology so that we help bring our customers closer to what matters most to them. • Value-for-Money • We deliver only products and services that are bang-for-the-buck for our customers. • They go to us for services that give them the best value. + =

31. Brand Identity • Extending communication through the online space • Providing online connection anywhere in the country • The best value-for-money broadband service for every filipino.

32. Online Marketing of Smartbro

33. Mechanics • Basic question: Using online as primary medium, how can Smartbro continue its dominance of the market and continue to increase market share? • Target consumer markets: • Primary: Youth, 15-25 years old • Secondary: Young Professionals, 26-35 years old • In the proposal, the following should be identified: • Problem • Marketing objective • Target market • Key consumer insight • Campaign Strategy and Solution • Budget and timing • Must be product centric • Use all available resources online and demonstrate role of digital in achieving basic objective of share-grab. • Zero-based planning.

34. Some current executions

35. Communications Plan Requirements

36. Communications Plan Requirements • Establish role of digital communications in achieving marketing objectives. • Demonstrate full understanding of business and marketing requirements through a clear, actionable, effective and cost-efficient communications plan • Exhibit mastery of web 2.0 marketing techniques, tools, and possibilities in the creative executions presented to support strategy • A fully costed digital media plan including efficiency metrics (ROI, ROCI) that demonstrate planning, negotiation, and buying capabilities • Identify never been done before tactics, strategies employed and how Smartbro can take advantage of a leadership brand attitude in continuing its dominance in the RP scene.

37. Good Luck!