1. Project Apollo
Focused Direction for Reaching Your Most Valuable Consumers

2. The Vision Deliver brand messages with greater relevance
Enable direct ROI measurement
Project Apollo:
National marketing research service
Multi-media and commercial exposure
Purchase behavior/sales results and attitudinal information
…..FROM A COMMON SAMPLE OF CONSUMERS

3. The Technology Foundation
PPM
Homescan
Online Surveys
Database Integration

4. Project Apollo Single-Source Pilot
5,000-Household (~11,000 Person) National Consumer Database
Multiple Media and Marketing Touch Points
Network TV, syndication, cable network TV, network radio media use
Commercial exposure
Magazine, daily/national newspaper, FSI/pre-print readership
Purchase Behavior
Product purchase information from either in-home scanner and/or online surveys
Retail store visits (via in-home scanner)
Lifestyles and Attitudes
Surveys or other sources such as Spectra Geo-demographic coding
Integration of proprietary databases
From The Same Consumer

5. Time Line for Media Measures Technology Advancements, Industry Cooperation and Potential Partnerships
Current
Next Steps
Future Capabilities
Store/Office Media Exposure
Network Radio
Broadcast Network TV
Cable Networks
Commercials
Streaming Media
Electronic Measurement
Consumer Magazines
Daily/National Newspapers
Retailer Circulars
Surveys
Electronic Print Measurement
Billboard/
Outdoor
Direct Mail
POP/In-Store
Video Games
Cinema
Internet

6. Project Apollo Single-Source Pilot Objectives
Superior Targeting
Return on Investment
Campaign Performance
Commercial Exposure
Competitive Advantage
Validate the technologies and methodologies which will be utilized as part of Project Apollo

7. Segmentation via On-Line Survey Capabilities
Q: What health conditions / ailments…. You or any member… over last 6 months?
Sample Size
1,499
1,387
1,046
878
633
610
597
Estimated sample size based on 5k panel, Individual level, media and respondent static applied.

8. Different Media Choices/Dayparts, Programs …
Different Media Choices/Dayparts, Programs ….. Using Behavior-Based Media Planning
“Idol” and “Housewives” move down on the list when buyers and spend levels are incorporated in to the planning process

9. Demo Targeted Campaign Behavioral Targeted Campaign
Targeting Dollars and a More Relevant Consumer Can Have a Significant Affect on Top-line Growth as well as ROI
Group
Percent Sales Impact
Pre-campaign
Campaign
Incremental
Sales
Demo Targeted Campaign 7%
$20.20
$21.61
28.2 Million
Behavioral Targeted Campaign
$24.03
$25.71
33.6 Million
$5.4 million difference from a slightly higher quality target – same reach of 20 million

10. Behavior- Based Target
Quantify ROI
Demo Target
Behavior- Based Target
Incremental Retail $ Sales Gain
$28.2
$33.6
Brand A Variable Profit (as% of Retail Selling Price)
39.5%
Gross Profit From Ad
$11.1
$13.3
Campaign Program Cost
5.8
6.1
Return-On-Investment
192
217
We can take that sales impact and by knowing the incremental sales associated with a campaign, you can calculate the direct ROI for a given campaign across whatever consumer target or segment you want to evaluate. Here we have an example of total retail sales gain, gross profit, campaign program cost and finally the return on investment across two distinct consumer segments.
Campaign had stronger ROI with Behavior – Based Targeting

11. Pilot Objective: Campaign Performance and Commercial Exposure
The campaign reached heavier brand buyers on ABC Primetime with a buying rate index of 145 compared to NBC and CBS where buyers who viewed the commercials were only average spenders

12. The Promise of Project Apollo
Efficient Targeting……better results for the same spend and the same reach
Effective Targeting…….reach a more relevant consumer with a much more targeted message
Sales Impact for each Campaign
Refinement of Marketing Program based on understanding of behavioral response to the program

13. Project Apollo
Thank you

14. Future of Audience Measurement
The “Future is Now”
Convergence of “discontinuous change” (Christiansen) and tipping point psychology (Gladwell)
Little change in media, and media research, in many decades
Rapid change now

15. Discontinuous Changes
No Yes
Media
Satellite Radio iPods/MP3s
DVR’s/HDTV, Plasma Screens Convergence of TV, Internet, Computer, Cell Phone, (later WiFi) distribution
Advertising
Consolidation/Media Buying Shops Advertiser leadership on database integration/analytics – media planning
Media Research
PPM, LPM Apollo (end of silos, performance CPMs, provable power of creative, ROI)

16. Why is Change Coming so Fast? A Tipping Point
The technology is available (unlike ScanAmerica)
Economics of status quo eroding
Slow growth in traditional media
Non ad supported media revenue exceeds ad supported (2004)
In 2005 “new media,” with performance metrics, took dollars
Radio has committed to change to reignite growth
LIM
Digital
Electronic Measurement

17. Why is Change Coming so Fast? A Tipping Point (continued)
Most important – advertiser taking direct role
Slowing unit growth, little pricing power
Marketing efficiency mandatory
SOX (role of CFOs, Purchasing)
Accountability (Stengel ANA Speech)
“Perfect” is the enemy of “better.”

18. What Does This Mean? Silo’d databases will recede
Media planning and buying will use adjusted CPMs
Planning will be more directive
EDI
New relationships
Bolder initiatives by media research
Industry acceptance of total quality/holistic metrics
Voluntary code of conduct for MRC (vs. legislation)
Acceptance of likelihood of rapidly evolving measurement
“perfect” is the enemy of “better”