The Future of Financial Marketing Paul Rapino Sr Director Microsoft Advertising Vertical Industry Solutions Presented at the Journal of Financial Advertising and Marketing Conference December

FinancialServices.Gov

When the Economy is down, the focus on ROI goes up. When the Economy is down, people need to do more with less. Companies seek cost effective solutions for reaching the highest quality audiences with high quality experiences. Agencies and Advertisers must achieve increased efficiency without sacrificing results or innovation. How we are thinking about it

The Opportunity Connecting People & Technology PCWebPhone Console

Understand Emerging Technologies In-game advertising Mobile VOD Other IPTV & Interactive TV

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Telecom Measure What Matters Don’t optimize around the “last click” Test message and channel combinations Retail Target Your Audience Target every buy Experiment with different targeting schemes Seek statistical differences versus control (targeting vs. filtering) Align creative with target segments Financial Services Apply New Techniques Make television accountable Apply segmentation and targeting across channels SummaryIndustryInsight What You Can Do Packaged Goods Involve Your Customers Find your consumers, wherever they are Let them do your work for you Buzz marketing particularly effective for new product launch / encourage trial

Vertical Industry Observations Custom Targeting with Third Party Vendor’s –CPG using Nielsen’s off-line purchasing insights to create a custom behavioral targeting segment for CPG clients who run an online campaign on the Microsoft Advertising network. Engagement Mapping –Telco Tracking all of the touch points where users see ads, giving advertisers a more complete picture of the various ways they interact with consumers prior to an action such as a click or purchase. Online Video –Pharma to test creative and regulatory issues –Get your Story out New Platforms Emerge and Change the game of Marketing –Games –Mobile –Mobile Scanning Bars- POP, Displays, Packaging and Coupons –Social –Enterprise Ready Software in the Cloud

Final Observations Align to Invest in Public Interest –US has significant room to grow again but global footprint will be necessary –Road/Bridges –New Technology –Environment –Co-habit these “Social Spaces” Consumers are Saving –Encourage this Pursue and Embrace Financial Reform –Global Platform- Common Currency/Oversite/Risk –Operate like a Pharma and Market like the Post Office or Visa Versa –Regulated Networks “wikibanks”

Questions What does the current crisis mean, long term, to financial services marketing? Could it be a good thing? Beyond the impact of the current crisis, what changes are taking place in technology that will shape the future of financial marketing? What is changing culturally with financial customers? What is changing in the way consumers absorb media and marketing communications? Will the financial services marketing industry be vastly different in 2025?

Understand the Digital Lifestyle Digital Ad Serving Platform

Data Warehouse Data Warehouse aggregate, analyze, predict & target Sell-side Tools & Services Buy-side Tools & Services Microsoft Advertising Platform Advertisers & Agencies Maximize effectiveness & minimize costs Ad Networks/ Exchanges adCenter Atlas Enterprise DRIVEpm AdECN MSN Media Partners (Facebook, Viacom, etc) Windows Live XBOX Live Live Search Publishers

When the Economy is down, the focus on ROI goes up. Considering more holiday shoppers who use the Internet will buy online than in stores this year, clients should continue to focus their budgets on digital media so their brands are seen and messages delivered at each stage of the funnel, on the actual medium on which the purchases will be made. --eMarketer, October 2008 Align Media Strategies with Buying Behavior and Put your Money where the Decisions are Made. Customer Purchase Funnel AWARENESS DECISION BUY

When the Economy is down, Do More With Less. Media planners/buyers are under even greater pressure to be more creative and show more value. They need to find ways to execute on innovative, complex, strategic buys often with less staff and less budget. 1.Increase innovation, even while reducing resources 2.Savvy advertisers seek stable partners and consolidated solutions In a down economy, clients seek established, stable partners, and fewer vendors rather than risky, niche and often untested options.