CAN MULTI CHANNEL CAMPAIGNS MAXIMIZE MEDIA ROI IN AFRICA?

1. CAN MULTI CHANNEL CAMPAIGNS MAXIMIZE MEDIA ROI IN AFRICA? Andrzej suskihead of media solutions africa & ME PAMRO, Uganda 2012

2. Flow • Advertising – luxury or a necessity? • What is the right level of investment? • Optimising effective SOV: • Maximising reach • Paying less for intensity of exposure • Leveraging the nature of the media and creative synergy • Key things to take away

3. How do we do our research? Single source survey data Establish likelihood to be exposed to all the elements of the campaign Link level of exposure to uplifts in brand measures

4. Advertising: luxury or a necessity?

5. What happens when you don’t invest in the brand? R2 = 0.44 80% % losing share 0% -30% 0% 30% Share of Advertising Spend 2 - Market Share 1 354 brands grouped on the basis of relative ad spend

6. …and by not advertising you can undo years of building base sales! Estimated sales Seasonality 7.0% TV Advertising 3.5% 2,000 Temperature 1.8% Price 4.2% 1,800 Distribution 2.5% 1,600 Base 84% 1,400 1,200 Volume 1,000 800 600 400 200 0 2002 2003 2005 2006 2007 2004 2008 Most of advertising effectiveness can be seen in the long term base sales uplifts.

7. Base sales are driven by “brand impact” Mostly incremental sales to existing users Immediate, short term Total Sales Campaign The Sales Response Effect The Brand Effect Performance Emotion Popularity Dynamism Difference Value Salience Strengthens loyalty of existing users and brings new users into brand Brand Engagement Sustained, longer term

8. So what kind of investment is right?

9. Campaigns can fall into three areas Diminishing returns No cut through Effective range Not real data Not understanding the broad effective investment range can mean wasting resources

10. Over investment in any one channel creates inefficiency and wastage, reducing ROI 37% of campaign’s TV GRP’s were wasted here Weeks At traditional weights TV is often over delivered and so cost inefficient. Perhaps TV is not the best place to find “light’ or non TV viewers to grow our reach Case Study: Malaysia, hair care

11. My budget is fixed (and lower than I would like)… now what?

12. How to improve effective Share of Voice? Better creative Effective use of media Campaigns that resonate with the target audience and the most efficient ways to create opportunities to see that creative!

13. So how can integrated campaigns get the most out of your budget?

14. How can multi-media campaigns maximise my marketing ROI? Increased reach More exposure intensity for less money Creative synergies

15. Increased Reach

16. How did our campaign achieve its reach? Total campaign 1 + reach = 75% of the target audience Total Magazines Total TV 35% 68% Total Online 18% Reaching the entire target market with TV can be very expensive. Get unique reach using smaller, more targeted media!

17. Example 1: What would I have to spend to reach the same audience with TV only? TV & YouTube TV Only Delivered Reach: 75% + €250k To achieve the same reach with a TV only plan TV spend 2.75m TV and Outdoor plan TV spend 2.25m, Outdoor spend 0.25m Total 2.5m Including YouTube represents a €250k efficiency in generating the same amount of reach compared with a TV only plan

18. More exposure intensityfor less money

19. Example 2: TTV resonates in the same way that TV does! Where have you seen the campaign for brand XXX? In the example above, 2/3rds of the sample said they had seen the ads on TV when it only flighted on TTV!

20. Example 2: Video travels very well across channels! The same amount of money spent on TV would buy 27 AR’s assuming CPP (1AR) = +/- R6000 (R165 000 / R6000 = 27AR’s) Rate card monthly cost for a 30 second commercial on TTV is R165 000. This provides a reach of 75% of the sample on average with a frequency of 9.2 = 689 GRP’s. CPP = R240# • And it is not just TTV: • Cinema • Digital display • You Tube Light users of TV can be reached at a low cost with potentially enhanced targeting!

21. Example 3: What was the contribution of the different elements? % increase per RXmspend across 10 brand attributes % points uplift across 10 brand attributes (Contribution across whole sample) Reach 90% 17% 22% 16% 3% In this example, most media contributed to the uplifts on brand attributes, with the highest reach medium, TV, contributing the most, as you would expect. However, the online and print advertising over-delivered across 10 brand attributes relative to investment. CrossMedia Research ™Case Study – FMCG Impulse purchase

22. So mass media still rule!

23. but other media seem like great value for money…

24. …and build different areas for the brand!

25. Example 5: Exploring the role of the different channelsagainst KPIs... TV plays a major role in this campaign driving key metrics. On-trade visibility relies on Outdoor – linked to volume of activity and proximity to pos locations. Leadership relies on other media; Outdoor, Cinema and particularly Online versus spend $ ONLINE $ OOH $ PRESS $ TV Brand visibility generally Brand visibility at POS Advocacy Appeal Leadership Share of Spend %

26. Creative Synergies

27. Were there any media interaction synergy* benefits? % of campaign effect from each media and from synergy * Additional campaign effects, beyond the impact of the individual media used, due to people being exposed to more than one media.

28. Example 6: TV did the most work, but most other activities more cost efficient, especially through media overlap! • TV activity contributed most overall across all metrics (not all shown here) • Outdoor had high spend but with a effect limited as it was used before TV broke, during two weeks only and in limited regions (we see this channel work better when ‘hooked in’ once the campaign has become more established) • Online (excluding Facebook) shows little impact – however, it’s main focus was to drive interactions, mainly through Facebook Facebook and TV synergy, was very powerful, potentially because both media played very different roles in the campaign. Data: CrossMedia Research ™FMCG, Europe, 2010

29. Example 7: In this case 25% of impact on brand imagery came through synergies Case Study: China, dairy product

30. Example 8: Non TV media can perform alone but they do much better with TV priming Response within each Media Exposure group indexed on TV 135 100 59 Addition of TV doubled effectiveness! In this case the non TV media uplifts were about 60 percent of TV alone When TV was added to them they were 35 percent higher than TV alone; more than doubling their effectiveness Source: Case Study, Product Launch

31. Key things to take away

32. Optimising Integrated Campaigns Investing the entire budget in one medium can lead to diminishing ROI Embrace multi channel campaigns – the benefits outweigh the risks • Smaller media (like digital) can be very effective • There are different roles for different media. • Mass media can create a base that benefits other channels • Remember to keep your communication idea consistent throughout the campaign

33. Questions?Thank you!