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RECIPES FOR EFFECTIVE BRAND BUILDING ONLINE

RECIPES FOR EFFECTIVE BRAND BUILDING ONLINE. January 27, 2011. Your Star Chefs. Host:  John Lambros, Savvian Partners  Star Chef #1:  Doug Chavez, Del Monte Foods  Star Chef #2:  Kevin King, MTV Networks  Star Chef #3:  Dan Beltramo, Vizu. GCA Savvian Advisors. January, 2011.

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RECIPES FOR EFFECTIVE BRAND BUILDING ONLINE

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  1. RECIPES FOR EFFECTIVE BRAND BUILDING ONLINE January 27, 2011

  2. Your Star Chefs • Host: John Lambros, Savvian Partners  • Star Chef #1: Doug Chavez, Del Monte Foods  • Star Chef #2: Kevin King, MTV Networks  • Star Chef #3: Dan Beltramo, Vizu

  3. GCASavvian Advisors January, 2011

  4. Online Brand Advertising Growth • Total domestic advertising market of $210 Bn(3) • Brand advertising represented 62% of total advertising spend in 2009, but only 25% of online advertising spend • With the growth in the time spent online, brands are following the audience and increasing the dollars they allocate to that channel • Online brand advertising forecast to grow from $8.5 Bn in 2010 to $12.8 Bn in 2013 • Today, there is a disconnect between online and offline brand spend • Only 3 of the top 10 brand advertisers are represented in the top 10 online brand advertisers • This imbalance will likely correct itself as online branding campaigns increase Brand Dollars vs. Direct Dollars(4) 25% 38% 75% 62% Online Brand Advertising(5) • Notes: • Source: Advertising Age; data reflects full year 2009 • Source: Nielsen Adrelevance: data reflects four quarters (Q4 2009 – Q3 2010) • Source: eMarketer • Source: Wall Street Research • Source: eMarketer 4

  5. Display Advertising Technology Landscape Ad Exchanges Media Buying Desks Ad Networks Agencies Sharing Data/ Social Tools DSPs ADVERTISERS PUBLISHERS Video / Rich Media AUDIENCE Yield Optimization Vertical Custom Creative Optimization DMPs and Data Aggregators Media Planning and Attribution Targeted Networks / AMPs Publisher Tools Performance Retargeting Ad Servers Measurement and Analytics Data Suppliers Ad Servers Verification Mobile Media Mgmt Systems Ad Operations

  6. Trading Desk The Importance of Data • The data market is evolving very rapidly • 1H10: Everyone became a DSP • Turn, Efficient Frontier, [X+1] repositioning themselves as DSPs • Peak reached when Google acquired InviteMedia • 2H10: It’s not enough to only be a DSP • Rise of the DMP • Increased cross-product / cross-data usage • Increased amount of deal activity in the data sector • Google / Teracent (acquisition) • Google / InviteMedia (acquisition) • Cisco / Quantcast (investment) • Yahoo! / Dapper (acquisition) • Microsoft / AppNexus (investment) • Adobe/Demdex (acquisition) • The fractured data marketplace is evolving into a integrated data platform Ad Exchanges Media Buying Platforms Ad Networks Agencies Sharing Data / Social Tools DSPs Horizontal ADVERTISERS PUBLISHERS AUDIENCE Yield Optimization Video / Rich Media Vertical Targeted Publisher Tools DMPs and Data Aggregators Data Optimization Creative Optimization Performance Ad Servers Ad Servers Verification / Attribution Mobile Analytics Data Suppliers Ad Ops / Infrastructure

  7. DSP Verification / Attribution Camp. Opt. / Retargeting SSP DMP Data Optimization Platforms Sit Between Data and Inventory Inventory Suppliers ADVERTISERS PUBLISHERS AUDIENCE Optimization Layer Creative Optimization Data Suppliers

  8. The Decade of the CMO: Navigating the Challenges • Ability to efficiently buy across multiple channels • Utilizes data to drive intelligent ad buying on a per impression basis CMO Integrated Display Advertising Optimization Solutions Provider Demand-Side Platforms Creative Optimization Vendors Retargeting Data Management Platforms Technology • Utilizes data to optimize message for maximum responsiveness • Improves marketing effectiveness • Utilizes data to find likely customers across the Web • Improves marketing effectiveness • Manages multiple data sets in one warehouse • Provides insight into campaign performance Benefits Vendors Integrated display advertising optimization provider efficiently enables the CMO to make critical marketing decisions across a rapidly changing landscape

  9. Online Analysis and Research Tools • Ad targeting / re-targeting • RTB / audience targeting • Brand feedback • A/B testing / creative optimization Analysis & Research Sources of Data Uses of Data • Cookies and traffic data • Search intent • Social sharing • Customer feedback • Offline sources • eCommerce • Brand measurement and insight • Online research / surveys • Customer intelligence • Marketing analytics and optimization • Attribution analysis Analysis is critical to making data valuable to marketers and extends beyond display advertising

  10. Online Analytics Competitive Landscape Online Research Online Analytics Survey Provider Market Research Website Marketing & Analytics Verification & Attribution Web Measurement & Testing Online Research/Survey Platform/Software Brand Measurement/Insights

  11. Del Monte Digital Vision • Create a unified marketing platform that drives ROI by INTEGRATING traditional and digital channels to: • Engage consumers’ emotions • Deliver brand experiences • Form ONGOING RELATIONSHIPS

  12. Del Monte Digital Vision Offline Online Source: Forrester Research

  13. Talk with Back-Office Talk between Front and Back Office Talk with Customers The Conversation Economy – Third Wave Industry size ($bb) Participants(mm) 5,000 1,000 100 500 50 10 (Web 2.0…) 1970 1980 1990 2000 2010 Source: US Gov, IDC

  14. Organizing to Engage

  15. Organizing to Engage Marketing C-Suite HR Legal Consumer Affairs IT

  16. Drive A Revised Strategy Search Display Email/CRM (DM Connect) Shopper Marketing Social

  17. The Brand Advertising Equation Brand Advertising Effectiveness = Reach the Right People + Influence Them As Planned Brand Lift

  18. Validated Microsoft and AOL’s abilities to reach dog owners and which targeting worked best Made an informed media buying decision Best Practice Case Study: Reach the Right People Digitas was looking for a way to validate Microsoft and AOL’s targeting abilities for a dog food ad campaign before including them on the media buy Background Digitas proved the effectiveness of their media buying and maximized return on advertising spend for Pedigree

  19. Showed that 1/3 of its site audience fit Pfizer’s target profile Showed incidence rate of the target audience was much higher than the national average Best Practice Case Study: Reach the Right People Caring.com needed to prove it could reach a micro-target, people with overactive bladders, to be included on a large Pfizer buy Background Caring.com proved that it could reach the target audience, closed a large opportunity, and developed an ongoing relationship with Pfizer

  20. Best Practice Process:Brand Advertising Effectiveness

  21. + 34.4% + 23.2% Optimized Best Practice Case Study: Measuring & Optimizing Effectiveness • Objective Agreement: Drive increased awareness of brand • Mid-Campaign: 23.2% brand lift • Optimize: Agency identifies opportunities to improve campaign results. Impressions reallocated to higher-performing creative and targeting segments. • Post Campaign: Increased brand lift to 34.4% for the entire campaign (a 48% increase in media efficiency)

  22. Best Practice Case Study: Measuring & Optimizing Effectiveness • Objective Agreement: Drive brand favorability • Mid Campaign: No brand lift! • Optimize: Agency proactively identified opportunities to improve campaign results. Impressions reallocated to higher-performing creative. • Post Campaign:Increased brand lift to 3.4% for the entire campaign (an infinite increase in media efficiency) + 3.4% Optimized 0%

  23. Best Practice: Partners on the Same Page Publishers / Networks Agencies Click Through Rates Engagement Time Spent View Through Impressions Share of Voice CTRs CPM Rates Click Through Rates Billable Hours Brand Lift Sales Market Share Share of Voice Brand Attributes Brands

  24. Engaging Research

  25. Campaign Objectives I want to determine the optimal creative mix and messaging I want to increase new product awareness I want to create buzz around my brand I want to position my product around a message I want to understand a website’s influence over brand perception I want to understand the influence of different media channels I want to increase interest and intent

  26. Campaign Parameters 29

  27. Campaign Parameters portfolio tribes kids & family music entertainment

  28. Research Opportunities “Halo Effect” Surveys Pre-Campaign Creative Testing Brand Impact Studies Earned Media “Halo Effect” Surveys Brand Impact Studies Traffic (Click and Non-Click) Point of Purchase Point of Purchase Multi-Platform Tracking Multi-Platform Tracking Shares Ongoing Creative Analysis Time Spent Real-Time Conversation Search Activity

  29. Campaign Optimization Creative Performance “Massive lifts in awareness during roadblocks. Video ads perform better than display on average.” Creative Frequency “Optimal frequency was five exposures to campaign creative.” Ongoing Campaign Optimization Site Performance “Comedy Central custom integration drove the most traffic and increases among key brand metrics.” Performance by Phase “Television worked best during Phase 1 at building awareness. Online amplified intent during Phase 3.”

  30. Post-Campaign Analysis

  31. Research Best Practices  Engage research from inception Always test your creative concepts and messaging prior to launch  Determine one key success metric per campaign  Know what’s needed from your campaign for optimal research results   Keep surveys short for a stronger sample

  32. Audience Q&A

  33. CONCLUSIONS

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