1. © 2008 Ipsos ASI – All rights reserved. Contains Ipsos' Confidential and Proprietary information and shall not be disclosed or reproduced without the prior written consent of Ipsos. Ipsos ASI Specificities of advertising in Eastern Europe Abstract of learnings presentation Contacts : Jennifer Hubber, President Ipsos ASI Western Europe Jennifer.hubber@ipsos.com Benoit Tranzer, Marketing Director Ipsos ASI Europe Benoit.tranzer@ipsos.com Chloé Desrosiers, Comm & Mktg Executive Ipsos ASI Europe Chloe.desrosiers@ipsos.com

2. 2 © 2008 Ipsos ASI – All rights reserved. Learnings from the Ipsos copy testing database n Ipsos has tested and databased over 60.000 ads worldwide: this allows us to dig into the drivers of advertising efficiency. n We have learnt that some types of ads, using specific message contents or execution elements, tend to show a higher percentage of success. n The relative importance of these successful features may vary from one region to another, based for example on advertising history or cultural differences. n In this excerpt we will share a few diagnostic findings on what drives advertising effectiveness in Eastern Europe compared to Western Europe.

3. 3 © 2008 Ipsos ASI – All rights reserved. n 8500 ads selected from the European Next*TV database are considered in the analysis, including different consumer packaged good categories within food, household care and health and beauty care Basis for the analysis Food Household HBC

4. 4 © 2008 Ipsos ASI – All rights reserved. The philosophy behind the findings EFFECTIVE ADVERTISING Short-term response on sales and/or Brand equity REACH The ad needs to cut through the clutter to get noticed and the brand must get credit. CONSUMER RESPONSE The ad needs to trigger a rational and/or emotional consumer reaction to the brand.

5. 5 © 2008 Ipsos ASI – All rights reserved. What drives the ability of an ad to be recalled and to generate a response? n Message and execution elements can strongly influence an ad’s performance both in terms of recall results and of consumer response. For example clarity, believability and relevance are message elements which can make a big difference. n The ad’s style or tone, the branding cues used, the characters featured are examples of execution elements that may impact results. n These are the kind of dignostic elements that we have taken into account when looking for differences within our European database.

6. 6 © 2008 Ipsos ASI – All rights reserved. Differences between East and West: more in drivers of consumer response n A first key finding when comparing results between Eastern and Western Europe, is that not all dimensions show the same degree of geographic sensitivity. n Indeed, although some differences can be seen, RECALL appears to be influenced by a relatively similar pattern of message and execution features both in the East and in the West. n On the contrary, differences are obvious in the area of CONSUMER RESPONSE and, in particular, in the area of what drives persuasion, as shown in the following charts

7. 7 © 2008 Ipsos ASI – All rights reserved. Impact of information content on persuasion n Pure information content plays a lesser role in Eastern Europe compared to Weatern Europe n Ads that are informative, say something new and different about the brand and are believable tend to perform on average in terms of persuasion in the East, whereas they boost persuasion in the West, East West informativeSomething newBrand differenceBelievable

8. 8 © 2008 Ipsos ASI – All rights reserved. Impact of bonding on persuasion n In Eastern Europe it is important to convey a positive feeling about the brand advertised and to portray it in a way that is consistent with consumers’ own way of relating to the brand. n Ads that are perceived as unique have a positive lever effect on persuasion, but uniqueness should not be pushed too far: an irritating ad is a very strong barrier to persuasion. East West Feel good about the brand Fits the way I feel about brand Unique adIrritating ad

9. 9 © 2008 Ipsos ASI – All rights reserved. To recap… n In Eastern Europe, creating a bond between brands and consumers is relatively more important than delivering “new news” or detailed information on product features. – Brands are relatively younger – Brand sensitivity, meaning the role the brand itself plays in the choice of a product, is higher. n When analysing ad diagnostics, it is thus important to check the level of attributes that by-pass rational promises and focus on the essence of brand experience.