The EIAA Presents European Online Advertising Effectiveness Study October 2004

200 European online advertising campaigns consolidated into this study Study finds that key branding metrics (awareness, message association, favourability and purchase intent) were positively impacted by online ad campaigns Brand Awareness +5.4% Ad Recall +45.3% Message Association +21.6% Brand Favourability +5.6% Purchase Intent +5.0% European results mirror US results Effectiveness continues to increase with exposure frequency (even at 10 exposures) Insights by Sector Autos: Auto ads impact all branding metrics except purchase intent – most likely the result of long purchase cycle and highly considered purchase FMCG FMCG ads impact all branding metrics European FMCG effectiveness exceeds Europe online averages Executive Summary

Objective and Methodology Objective Quantify the average impact that European online ad campaigns have on traditional branding metrics Create ‘benchmarks’ for Autos (22 studies) and FMCG (33 studies) verticals Methodology Dynamic Logic exposed versus non-exposed methodology 200 European campaigns studies (Q1:2002 – Q2:2004) 160,000 individuals surveyed

Online Advertising Builds Brands Online Ad Effectiveness European Averages +5.4% Which of the following [brands, products] have you heard of before?” Of those who had not seen the online ad, 68.9% were aware of the brand Of those who had seen the online ad, 72.6% were aware of the brand So, the ad caused a 5.4% increase in awareness Source: Dynamic Logic MarketNorms MarketNorms data through June 30, 2004; N=199 European campaigns, n=163,262 respondents Percent

Online Advertising Builds Brands Online Ad Effectiveness European Averages +5.4% +45.3% +21.6% +5.6% +5.0% Source: Dynamic Logic MarketNorms MarketNorms data through June 30, 2004; N=199 European campaigns, n=163,262 respondents Percent

European and US averages are equal European versus US Average Ad Effectiveness Point Change

Effective Frequency: Awareness Additional ad exposure increases brand awareness Awareness in 2.5 X higher among those with ten exposures versus those with one exposure Exposure Frequency Point Change Effective Frequency For Brand Awareness

Effective Frequency: Message Association Additional ad exposure increases message association Message association is 40% higher among those exposed to ad 10+ times versus those with only one exposure Exposure Frequency Point Change Effective Frequency For Message Association

Online Advertising Builds Car Brands Online Ad Effectiveness European Automobile Averages Source: Dynamic Logic MarketNorms-EU-Automotive, data through Q2/04; N=22 campaigns, n=19,372 respondents; *not statistically different from zero 5.6% 65.6% 13.7% 6.8% 3.5% Percent

Online Advertising Builds FMCG Brands Online Ad Effectiveness European FMCG Averages Source: Dynamic Logic MarketNorms-EU-FMCG, data through June 30, 2004; N=33 campaigns, n=25,273 respondents 5.9% 107% 33.7% 9.0% 5.9% Percent

FMCG Outperforms EU Averages FMCG Averages versus EU Averages Source: Dynamic Logic MarketNorms-EU through Q2/04, N=199, n=163,262 Dynamic Logic MarketNorms-EU-FMCG through Q2/04, N=33, n=25,273 Point Change

Conclusions and Recommendations Conclusions: Online advertising builds brands! When measured in isolation, online advertising has a positive impact on traditional branding metrics like awareness, message association, etc. –All 5 branding metrics positively impacted EU online ad effectiveness results are similar to US Branding metrics continue to increase with additional exposures Online advertising works in FMCG – a category whose adoption of the Internet trails other industries Recommendations: It is no longer a question of why use online but when and how much Know your marketing objective and track performance relative to industry averages and your own internal data Don’t assume that effective frequency is 3 – because it is not. Effectiveness continues to increase with additional exposures Cycle times are short online, so live and learn in real time