1. CAN MULTI CHANNEL CAMPAIGNS MAXIMIZE MEDIA ROI IN AFRICA? ANDRZEJ SUSKI HEAD OF MEDIA SOLUTIONS AFRICA & ME PAMRO, Uganda 2012

2. 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. 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. 4 Advertising: luxury or a necessity?

5. 5 What happens when you dont invest in the brand? 0% 80% -30%0%30% Share of Advertising Spend 2 - Market Share 1 % losing share R 2 = 0.44 354 brands grouped on the basis of relative ad spend

6. 6 …and by not advertising you can undo years of building base sales! Most of advertising effectiveness can be seen in the long term base sales uplifts. Volume 20022003200520062007 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 20042008 Estimated sales Base 84% Price 4.2% Temperature 1.8% Distribution 2.5% TV Advertising 3.5% Seasonality 7.0%

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

8. 8 So what kind of investment is right?

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

10. 10 Over investment in any one channel creates inefficiency and wastage, reducing ROI 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 Weeks 37% of campaigns TV GRPs were wasted here Case Study: Malaysia, hair care

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

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

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

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

15. 15 Increased Reach

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

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

18. 18 More exposure intensity for less money

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

20. 20 Example 2: Video travels very well across channels! Light users of TV can be reached at a low cost with potentially enhanced targeting! 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 GRPs. CPP = R240 # 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 GRPs. CPP = R240 # The same amount of money spent on TV would buy 27 ARs assuming CPP (1AR) = +/- R6000 (R165 000 / R6000 = 27ARs) The same amount of money spent on TV would buy 27 ARs assuming CPP (1AR) = +/- R6000 (R165 000 / R6000 = 27ARs) And it is not just TTV: Cinema Digital display You Tube

21. 21 Example 3: What was the contribution of the different elements? 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. % points uplift across 10 brand attributes (Contribution across whole sample) 90%17%22%16%3% Reach % increase per RXm spend across 10 brand attributes CrossMedia Research Case Study – FMCG Impulse purchase

22. 22 Example 4: The relatively low cost of advertising online is one of its biggest advantages % Reach of media Impact among those reached (average on all metrics) OOH TV Online Impact per ¥1m (average for all metrics) % Reach of media Online TV OOH Case Study: China, dairy product

23. So mass media still rule!

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

25. …and build different areas for the brand!

26. Example 5: Exploring the role of the different channels against 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 TV PRESS OOH ONLINE Share of Spend % Brand visibility generally Brand visibility at POS AdvocacyAppealLeadership $ $ $ $

27. 27 Creative Synergies

28. 28 Were there any media interaction synergy* benefits? * Additional campaign effects, beyond the impact of the individual media used, due to people being exposed to more than one media. % of campaign effect from each media and from synergy

29. 29 Example 6: TV did the most work, but most other activities more cost efficient, especially through media overlap! Facebook and TV synergy, was very powerful, potentially because both media played very different roles in the campaign. 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, its main focus was to drive interactions, mainly through Facebook Data: CrossMedia Research FMCG, Europe, 2010

30. 30 Example 7: In this case 25% of impact on brand imagery came through synergies Case Study: China, dairy product

31. 31 Example 8: Non TV media can perform alone but they do much better with TV priming 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 59 100 135 Response within each Media Exposure group indexed on TV Source: Case Study, Product Launch

32. 32 Key things to take away

33. 33 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

34. Questions? Thank you!