Brand Dynamics

1
Riding out the Storm During a Recession
2
Advertising Investment Reduces Risk
354 brands grouped on the basis of relative ad
spend.
3
In Fact We Have Seen That Investing
Disproportionately To Market Share Can Have
Significant Gains Both Long And Short Term
2
R
0.77
100
gaining share
0
Media Pressure (Share of Voice - Share of Market)
-10
0
10
(354 brands grouped on the basis of relative ad
spend)
4
But Are The Rules Of The Game The Same During A
Recession?
Previous research (2001, 1000 business units)
looked at recessions and the subsequent
recoveries. PIMS (Profit Impact of Marketing
Strategies) looked for markets undergoing the
following 5-year pattern, and looked at three
measures for performance
Recession
Recovery

• Average inflation-corrected return on capital
  employed (ROCE) during recession
• Increase in inflation-corrected ROCE in first two
  years of recovery
• Market share change in first two years of recovery

5
During The Recession, Cutting Or Increasing
Marketing Budget Is Likely To Have A Very Similar
Effect On Capital Returns, But During Market
Recovery The Differences Are Staggering.
ROCE During
ROCE After
Market Share After
6
But What Does Become More Important Is To Defend
The Value Of, And Optimize, Marketing Spend
The mar bud
ketingget
7
There Is No Question That The Stronger The
Consumer Relationship The Greater The Brand Share
Strong relationship /Image
8
Building Brand Equity has never been more
important since a strong brand is vital to
corporate wealth
9
Strong Brands Also Protect The Business In A
Downturn And Recover Faster And More Strongly
10
Even During Economic Downturns The 4 Broad
Drivers Of Brand Success Remain Vitally Important
Brand success
Great product experience
How many Starbucks in your city?
11
Communication is one of the major contributors to
building and sustaining the brand
relationship (and ad spend is a vital component)
12
Millward Brown Data Shows That 60 Of Brands
Going Dark Decline On At Least One Key Brand
Metric (I.E. Relationship Suffers)
85 Brands with no TV spend for 6mths
13
In The Longer Term Effective Share Of Voice
Best Explains Changes In Share
It is not just how much you spend, but how
visible that spend is, relative to the
competition, that counts most.
of share change explained
Effective SOV Raw SOV Effective GRPs Raw GRPs
Source MB study into share change in 101 brands
over 3 years
14
And To Optimize The Marketing Opportunity
fn
x
Changing Consumer Demand
x

Quality Marketing pressure
Brand proposition
Marketing pressure
Media weight vs competition vs brand size
x
Efficient and effective deployment of the media
spend
15
At The Core Of All Great Advertising Is Having
The Right Brand And Communication Strategy.
fn

x
Changing Consumer Demand
x

Quality Marketing pressure
Brand proposition
Marketing pressure
Media weight vs competition vs brand size
Strategy Finding something credible, relevant and
motivating to say about your brand to your target
consumer
16
The Right Strategy Is Not One Size Fits All.
It Has To Reflect The Brands Reality In Terms Of
Development
14
12
10
8
6
Voltage
4
2
0
-2
-4
-6
-8
-10
0
10
20
30
40
50
Presence
17
But Making The Most Of The Marketing Opportunity
Goes Beyond Having The Right Strategy
Ensure the advertising is going to work hard for
every Turkish Lira spent in promoting the brand
Checking the communication is on strategy
and will elicit the right response from consumers
Deploying the media spend efficiently
and effectively
18
Tracking Study Data Shows That Some Ads Can Be 10
Times More Efficient Than Others In Generating
Branded Impact
The same GRPs can generate very different levels
of awareness
Awareness Indices range from 0 to over 20,
depending on copy and audience
Advertising awareness
AI 6
AI 4
AI 2
Branded impact
GRPs
19
Across All Media The Best Ads Are Many Times More
Memorable Than The Weakest
Branded impact
AIs Indexed on average for each medium
200
50
100
Internet
TV
Strongest quintile
Print
Weakest quintile
Radio
20
This argues for using research early on in the
Advertising Development process to gain from
learnings
Increased efficiency achieved makes budget
equivalent to 1.45m
4.7 6.8
Assuming a 1m advertising budget for one of
these ads
Analysis of 122 ads
Average Awareness Index
Initial ad/animatic Link tested MB
recommended changes Final finished film Link
tested again
Link would have been worth 450k to the client!
This represents a 45 increase in efficiency
Base European ads
21
Cadburys Seker Bayram Re-Edit
ORIGINAL EDIT
RE-EDIT
AI
3
6
Persuasion
18
30
Short Term Sale Effect
Good
Average
22
Checking the Communication has been captured
1 in 3 of all ads we test fail to communicate on
strategy
Often because the message is not integral to
whats interesting in the ad
Communication
23
Success In Communication Of Key Benefit Varies
Greatly
No. of ads
0
10
20
30
40
50
60
70
80
90
100
communication
Communication
Source TVLink database
24
In fact the more messages ads attempt to
communicate the weaker each message is likely to
come through
Total Communications MBI Turkish Database Average
Ads with
1 2 3 Message Messages Messages Message
1 40 36 34 Message 2 26 17 Message 3 25
Turkish database 2009
25
So its important to remember to keep things
simple and not be overambitious in what we ask of
consumers
Keep the ad premise simple!
Consumers do not like to work to
understand ads. If the ad is difficult to
understand, enjoyment and branding suffer.
Milward Brown Turkish LinkTM Database N800 ads
26
And what about the media laydown - Finding the
right channel and optimizing the mix is an even
tougher task


F i r e w a l l
27
In this case a multi media campaign was deployed
to strengthen key message take out

• New campaign designed to push unique, different
  (primary) fun with friends (secondary)
• TV Link showed that planned TV ad could be
  impactful and communicate fun but did not
  clearly deliver unique, different
• Other media deployed to strengthen the key
  message take out

57 of the investment was non TV, 3 additional
media were used
28
Using more and varied channels is a good strategy
since communicating on multiple platforms offers
brand building benefits
Relative media contributions to campaign uplifts
CrossMedia Research TM Case studies
29
Cross Media results showed that key message
obtained the most significant increase
Average 1 to 5 scale Totally Disagree-Totally
Agree
Baseline
Exposed
Is a brand I love
2.7
2.9
6.0
Is for someone like me
2.9
3.1
6.6
2.1
2.4
Attribute t
2.6
2.8
7.2
Offers something different from other brands
3.0
3.1
4.8
2.6
2.9
Attribute x
3.2
3.3
2.6
Attribute y
3.2
3.2
1.6
CrossMedia Research TM Case Study European Food
and Drinks Brand Significant increases
30
While have fun with friends was mainly
increased via TV spend, unique different is
predominantly increased due to spend in
alternative media
CrossMedia Research TM Case Study European Food
and Drinks Brand
31
And the alternative media in this case were
efficient in achieving this uplift in relation to
spend
Share of spend
Contribution to unique
CrossMedia Research TM Case Study European Food
and Drinks Brand
32
Understanding diminishing returns on frequency
levels can be relevant to deciding how much to
move to other media or how to increase efficiency
Frequency analysis TV
of TBCA obtained
OTS
Over 9 OTS insignificant ad awareness
growthAfter wk 10 of the campaign gt22 people
over exposed to TV
33
The learnings were relevant to future laydown of
the campaign

• Did it work?
• TV, Magazines and Internet worked as hoped
• Use of alternative media strengthened
  communication of the key message
• Outdoor did not contribute
• How did it work?
• TV hit diminishing returns early
• The timing of Outdoor could not optimise synergy
• Recommendation
• In future use lighter TV
• Re-consider outdoor
• Save or use budget in other media like magazines
  internet or move outdoor later to optimise
  synergies

Relevant proportion of overall budget was spent
inefficiently potential for huge future
improvement
34
Measurement helps demonstrate the value as well
as driving action. With that much at stake would
you not want to give yourself the best chance of
winning?
35
Considerations for 2009

• Dont let your SOV drop below your SOM
• Make sure your creative will maximise the value
  of your spend
• Good potential of branded impact
• Communicating on strategy
• Make sure your media plan will maximise consumer
  engagement and achieve your objectives
  efficiently
• Are you optimising your media spread to achieve
  your objectives
• Are the media working together in the most
  efficient way
• Measurement helps you demonstrate the value as
  well as guiding action

36
Increasing your effective share of voice by
making your budget work harder

Make sure your creative will maximise the
marketing opportunity and the value of your spend
37
Are the media working together to optimise the
opportunity efficiently

Make sure your media plan maximises engagement
and is efficient
GroupMs ThisYearNextYear report predicts
greatest growth in 2009 digital marketing spend
will be in Europe AAP
38
Measurement helps demonstrate the value as well
as guiding action

Revive the insight
39
Considerations For 2009

And above all don't get discouraged
Marketing is not the problem, its the solution
40
THANK YOU