Specific Media FMCG Presentation (Aug 2011)

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  • SECTION 1:Fairly daunting to stand up in front of FMCG marketers and talk about this industry when you invented Marketing & Branding at Scale – Built on consumer insight and buyerbehaviour or, in less technical terms, on understanding people. For over half a century…You have made low-involvement brands differentiated, relevant and exciting to consumers. Driving up sales.ONE ENTITY? With so many different brands, products and objectives it can be hard to talk about FMCG as one entity. However, fact remains that although sizable in value…generally speaking less than 10% of your budgets go into digital. Digital is yet to wholly convince you. But momentum is building as success stories grow. With people at the heart of your planning you go where your audience is.
  • The Rallying Cry!For the digital industry, much discussion in the last 3-4 years has been in this area – “we’re good for response, but can’t seem to attract the brands”Why? Historically we’ve probably been more transactional, fragmented and less brand safe. 40m people online – even ‘digital’ as a term is becoming obsolete.More about how you blend these channels with offline and each other – not if. What can digital do for you? PROVE HOW WE BUILD BRAND AWARENESS – DRIVE SALES & HABITUALISE PURCHASEWhat can you do for digital? - Bringing your heritage and marketing rigour into this space will embed good practice, research and measurement (amongst others)How can we “bake in” digital for FMCG marketing objectives?
  • There have been recent high profile success stories of MAJOR SALES GROWTH Some have been TV led (Old Spice) & some that haven’t (Skittles) – but both have dramatically upped sales by 50 and 30 % respectively.BRAND BUILDING is still very much the domain of the TV – with digital generally used to support offline activity.Further changes in the ecosystem will disrupt this significantly e.g.. By 2015 there will be over 10 million “Connected TV’s” in UK Living Rooms.SOCIAL - 2/3 of FMCG brands are participating in Social Media (US Pivot Conference) with Facebook & Twitter being key areasHowever, not easy to be Skittles & Old Spice – can be difficult generate success in Social Spaces with relatively low engagement products.Away from pure Social other areas gathering momentum are:Mobile (Foursquare & Location Based Technologies & MICRO Payment through NFC/RFID set to boom this area)Group buying like Groupon & Living SocialDigital OOHSearchGamingDisplayVideo$2 Billion Coupons----------------------------------------------SkittlesA need to drive salesPartnership with FacebookDrive salesNo TV“The Super Mega Rainbow Updater”Drove interactions and fansGrew sales by 30%Old SpiceDrove massive brand interaction across You Tube/Facebook/TwitterGrown sales by 27% YOY – peaked at 55%Number 1 body wash for Men in USIsaiah & Fabio
  • 85% of people in the UK don’t know how many teeth they have so it’s very difficult to get them to ‘care’ about brands and reach out to them in social media (most people who do generally do it for discounts).FAIRLY CHALLENGING FOR BRANDS TO BUILD RELATIONSHIPS
  • Key Question: What do you want to achieve from digital? To deliver REACH & FREQUENCY objectives within key audience types? To SELL STUFF in store – to harness Research Offline Purchase Online & sell directlyOnline?To CONNECT with audiences and BUILD BRAND AWARENESS?To create content that people want to SPEND TIME WITH?To GEL WITH OFFLINE MEDIA and amplify your message?To ENCOURAGE AND FACILITATE EARNED MEDIA?The choices are multiple but the challenge is how we demonstrate VALUE to you.
  • E-COMMERCEIn the US we are seeing evidence of FMCG companies heavily investing in eCommerce (e.g. P&G, L’Oreal, Estee Lauder,.. )both direct to consumers and e-sales via e-retailers partnersE.g. Use of “Buy Now” buttons in Display that link to product pages where consumers can purchase.sites AND integrating with sites like Coupons.com to drive sales ($2bn dollars redeemed last year in US alone) – combine this with Mobile and Location Based Tech and explosive growth is a strong possibility. CONNECTING ON & OFFLINEShopper based targeting is one appealing way we can enable this and target online purchasers of brands (we are working on solutions with Nielsen) Key challenges, among others, for FMCG: GLOBAL CAMPAIGNS: one global brand and one global digital business partnerBRAND SAFETY – how do I ensure that my brand is safe? 
  • 20 years ago on Saturday6th August 1991TimBerners Lee launched the WWWOnly really at the turn of the century where adoption hits its stride. Explosive transformation in that time – not exactly news! Ripped up the newspaper, music and publishing businessesE-commerceAND HAVING A HUGE impact on marketing & commsEVOLUTIONThe digital and communications ecosystem has undergone transformational change in the two decades.Not exactly news!I’d imagine we are going to see a lot of reference to this in articles & presentations as we approach 20 years since the emergence of the web and browsers and digital advertisingEvolution in how the web is used fromFunctional to Transactional toEntertainment toSocial to Semantic
  • Display ecosystemWe don’t make it easy for you! And this is just DISPLAY. There can be too much focus on technology and a lot of digital introspection.However, not putting people at the centre – where’s the consumer in this?We need to be less about the technology & more about where people are…DISPLAY - Display growth predictions are big. 954m last year - up 34%Facebook a big drive - c. £100m UKJust short of a quarter of a £4bn marketVideo about £54m/Mobile £89m (all PWC Numbers) Today, online display is worth a mere $17bn globally. Relatively few publishers buy the story that Mr Schmidt is selling. When Eric Schmidt argued recently that online display advertising could become a $200bn industry within the next decade, his words triggered thousands of bullshit detectors across the media industry. Trading PlatformsDSP/SSP/Exchanges Need scaleRoughly 20% of market  In 2010 Google made revenues of $30bn, with display estimated to have contributed just $2.5bn.Last year in the UK, Google's second largest market, the total display advertising sector grew by a staggering 27.5% year-on-year to £1bn while search grew just 8%, albeit to £2.35bn, with much of it lining the US company's pockets.Enders Analysis reckons that Google UK made £100m in display advertising last year – a small sum compared with total net UK revenues of £1.53bn, but a 65% year-on-year rise.  
  • BUILD SURFACE DISTRIBUTEBy placing people at the centre of planning we start to simplify this ecosystem – Building a clearer picture of how we can use the range of platforms, channels & technologies to connect with audiences And enable brands to TELL & SELL their stories.Advertisers and Agencies are now challenging us to put our product offering in context of the communications landscape.Commentators like Nick Burcher/David Armano have spoken about the properties of Paid-Owned-Earned media – in fact nearly everyone has. The new (ish) communications landscape divides the landscape up and allows us to make sense of it and focus on people. Solutions for Brands are based upon a combination of “Non Matching Luggage” across platforms – DIFFERENT RULES & ROLES.Not necessarily one creative message.Evolution in the concept of the network – we used to intelligently place display in front of audiences. Now we are leveraging strong publisher relations, audience insight, data and creativity to BUILD SURFACE & DISTRIBUTE content in this new ecosystem.
  • The problem with storytelling in advertising is that we have a very traditional, comfortable way of doing it – ie. 30 seconds (TV Ad)Don’t have to try and tell the whole story in this timeUse multiple platforms to seed the story
  • Some brands doing it well.Deliver a clear brand story across multiple platforms and channels – embrace technology, data and insight. Put people at the heart of their planning and delivery.Waitrose = celebrate the enjoyment of food through ‘essentials’. Bring together online & offline touchpoints (in-store, youtube channel, digital magazine, email, video, TV etc).Red Bull = soft drink synonymous with Extreme Sports – festivals, games, sportsDomino’s = use technology to deliver pizza – Foursquare, Facebook, through TV, Apps
  • Why is a guy from Specific Media (a performance network) talking about landscapes & ecosystems & platforms?!Ok, I’ll return to type and we can talk about funnels - Very rare that I get to do a presentation without a funnel. Historically,Specific Media have operated in the lower levels of this – action/purchase/performance. Based on a large data network (understand web journeys) that powers how we then place ads in front of people. Historically this has been on PC – moving multi platform. Evolution in our product offering means that we now operate at all levels of the funnel and can offer a complete service to FMCG brands wishing to connect with audiences in digital spaces.Awareness – Favourability – Consideration – PurchaseFrom banners and interruption to content marketing, video, platforms and new canvasWE NOW DELIVER DIGITAL MEDIA SOLUTIONS FOR BRANDSAudience Based Targeting across multiple platformsVic Catalfamo
  • This is still about the technology but the point is when Underpinned by SERVED MEDIA it is then about how you deploy Products, Platforms to Reach Key AudiencesMeasuring effectiveness is key.With people at the heart of this the single customer view becomes all important.
  • MAXIMISING RETURN – 2 x Gillette brand videosFMCG companies are tapping into digital video in a bid to increase brand loyalty, encourage trial, sampling and to drive sales (eMarketer)Brand TV hasn’t evolved that much in 50 years.OnlineVideo offers a great canvas to bridge TV & Digital.We back and believe in pre-roll however, just putting pre-roll in this environment is Digital Video 101. It doesn’t use the medium and technology to its fullest.
  • An example of Video 2.0/3.0 = Frito Lay Dips.
  • Creativity to date (99% of it) revolves around re-purposed TV adsWE SHOULD COMPLEMENT TV RATHER THAN RECREATE IT.This is a TV led approachNot a digital oneNew formats you to truly combine the creative canvas of TV with the flexibility and interactivity of digitalGreat for brands – allows you to use the power of digital to drive action.
  • We’ve spoken about the need to match on & offline...Network partnership with Experian to enable us to apply MOSAIC Targeting across the network and reach your offline audiences online.We have used this to reach custom MOSAIC groups with Experian – in this example we are able to separate Aspirational from Actual audiences.
  • So what have we been up to with FMCG brands?A recent Specific Media campaign in the US saw sales of a cereal brand increase 24% amongst those exposed to digital vs identical control group. Incremental sales were 200,000 units - dollar value of $630k – @ an ROI of 2.6We know digital grows offline sales. Something we are looking to explore in UK with Nielsen Homescan. Ready to test with any FMCG advertiser... Yahoo & NectarLarger FMCG advertisers will have their own bespoke tools.
  • USING DUNNHUMBY IN US, COMSCORE HAVE SEEN THAT 82% OF FMCG CAMPAIGNS LEAD TO AN UPLIFT VS CONTROL GROUP. THIS AVERAGE UPLIFT IS 22%
  • WORKED WITH AN FMCG BRAND AND DROVE A SUBSTANTIAL INCREASE IN SITE TRAFFIC...
  • ...SEARCH TRAFFIC...
  • ...AND SHARE OF VOICE AMONGST COMPETITORS
  • We ran some research with a UK retailer into the combined impact of Video & Display – key takeaway was that this drove the CPA down by 46% vrs running display alone.
  • FMCG advertisers are using more immersive creative formats to deliver results:Interaction with Social SpacesCouponing & Product Sampling
  • Ran this to in-market behaviours on Cooking & FoodUnderpinned by data
  • This has a US focus but we now have a London based team with a wealth of Original Production experience plus a Purpose built studio onsiteEnabling brands to tell stories through Original ProgrammingORIGINATE SURFACE DISTRIBUTE – MODELViral nature of OP adding additional reach
  • There is no point in having the perfect environment, perfect audience, perfect planning if the creative is overlooked. Millions spent on TV pre testing and digital should be no differentEye tracking studies showing the power of Creativity & that display works.
  • It is also important to understand how we should evaluate thisI don't want to get into a CLICK/ CPM / VIEW THROUGH debate – its a race to the bottom.Initially advertising on the web was all about instantaneous response from consumers through banners & search however, evolution has brought about maturity in how people respond to comms. They are interacting with brands in real time through FB/Twitter etc but ‘interruptive’ advertising plays a different role. We know only 10% of people click on display however, it is clearly playing a huge role in the overall ecosystem. We just need to apply some logic. On the TV screen, we wouldn't look to ‘click’ on the mayonnaise jar – so why would we online?We don't for TV or a 48 sheet, but we do know they deliver valueInstead....
  • ...we should talk the language of marketers. Bain report analyses the metrics marketers want (traditional tv, brand led metrics – awareness, consideration, favourability) compared to what they get from digital – clicks, impressions, view throughsAttribution
  • Managing delivery of impression across multiple screensOptimum delivery of media
  • New canvasSocial spaceBring a lot of this together
  • USE DIGITAL TO DRIVE SALES ON & OFFLINEUSE OFFLINE TOOLS TO REACH CUSTOMERS ONLINEDELIVER VIDEO & DISPLAY TOGETHERCOMBINE TV & DIGITAL TO RELEASE POTENTIALMAKE CONTENT PEOPLE WANT TO SPEND TIME WITHBUILD ROBUST ATTRIBUTIONFOCUS ON CREATIVEMANAGE DELIVERY ACROSS MULTIPLE SCREENSUSE ALL PARTS OF THE ECOSYSTEM
  • http://www.vimeo.com/23627164
  • USE DIGITAL TO DRIVE SALES ON & OFFLINEUSE OFFLINE TOOLS TO REACH CUSTOMERS ONLINEDELIVER VIDEO & DISPLAY TOGETHERCOMBINE TV & DIGITAL TO RELEASE POTENTIALMAKE CONTENT PEOPLE WANT TO SPEND TIME WITHBUILD ROBUST ATTRIBUTIONFOCUS ON CREATIVEMANAGE DELIVERY ACROSS MULTIPLE SCREENSUSE ALL PARTS OF THE ECOSYSTEM
  • Specific Media FMCG Presentation (Aug 2011)

    1. 1. BRANDS, Daniel Stephenson MAXIMISING RETURN THE DIGITAL ECOSYSTEM & Senior Director Category Development1 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    2. 2. MASTERS OF MARKETING DIGITAL CONVINCING UNDERSTANDING PEOPLE LOW INVOLVEMENT BRANDS2 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    3. 3. THE RALLYING CRY DRIVE SALES HABITUALISE PURCHASE BUILD BRAND AWARENESS3 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    4. 4. EITHER/OR? MOMENTUM SUCCESS STORIES4 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    5. 5. DIGITAL MENUS MULTIPLE CHOICES5 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    6. 6. FMCG DEVELOPMENTS E-COMMERCE BRAND SAFETY GOING GLOBAL SHOPPER BASED TARGETING6 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    7. 7. AN EVOLVING ECOSYSTEM TV & BRANDS WEB EVOLUTION7 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    8. 8. TECHNOLOGY FOCUS8 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    9. 9. PEOPLE @ THE CENTRE
    10. 10. JOINED UP PEOPLE PRODUCTS PLATFORMS10 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    11. 11. THROUGH THE FUNNEL DELIVERY Video AWARENESS Dynamic Display Rich Media Display FAVORABILITY IPTV Standard Display CONSIDERATION Original Programming PURCHASE Retargeting Mobile
    12. 12. ALL MODELS ARE WRONG! NON-MATCHING BUILD SURFACE DISTRIBUTE
    13. 13. The classic TV experience – survival of the fittest? MAXIMISING RETURNS BRIDGING TV & DIGITAL
    14. 14. Evolution of the television USE THE MEDIUM! TV + DIGITAL = X
    15. 15. DIGITAL VIDEO 2.0, 3.0 +... CAPTURE INTEREST OR INTENT
    16. 16. USING OFFLINE TOOLS TO REACH ONLINE CUSTOMERS
    17. 17. SPECIFIC MEDIA & R.O.P.O DIGITAL DRIVING OFFLINE SALES SHORT TERM ROI 2.6 – UNIT SALES 24% GREATER17 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    18. 18. DIGITAL DRIVING OFFLINE SALES 82% OF FMCG CAMPAIGNS EXPERIENCE UPLIFT COMSCORE US AVERAGE – 22% UPLIFT IN SALES18 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    19. 19. DISPLAY DRIVES... ...SITE VISITS – UP 106% WEEK ONE19 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    20. 20. DISPLAY DRIVES... ...SEARCH TRAFFIC – UP 202% WEEK ONE20 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    21. 21. DISPLAY DRIVES... ...TRAFFIC SHARE – UP 11 PTS WEEK ONE21 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    22. 22. DELIVER VIDEO & DISPLAY TOGETHER! 46% PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners. The DR CPA for retailer was 46% lower when video advertising was combined with display compared to solus display activityDISPLAY CPA 46% LOWER WHEN VIDEO IS RUN 22
    23. 23. CONNECT DISPLAY WITH SOCIAL SPACES! DEPLOY COUPONING & SAMPLING
    24. 24. USE ALL PARTS OF THE ECOSYSTEM TO DRIVE A SUCCESSFUL CAMPAIGN
    25. 25. TELL STORIES! Brands: Package: Pre-roll, product integration into episodes, microsite and syndicated distribution Target: Female 25-45 Concept: The story of two real-life moms, Jennifer Pate and Barbara Machen, that gives practical insight and perspective on modern motherhood Stats: • Drew +94MM video streams and 52MM unique viewers • 2010 Webby Award Winners: Best Reality/Variety Host • 2011 Webby Award Honorees: Best Web Personality/Host • Aired over 70 episodes, integrating over 30 brandsMAKE CONTENT THAT PEOPLE WANT TO SPEND TIME WITH
    26. 26. HOW DO CONSUMERS INTERACT WITH DIGITAL? PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners. 93% SEE THE AD AT THE TOP OF THE PAGE THEY SPEND 3 SECONDS FIXATED ON THE AD IT TAKES THEM JUST 2 SECONDS TO FIXATE ON THE ADFIRST PART OF THE PAGE CONSUMERS FIX ON 26
    27. 27. ATTRIBUTIONWhat is the best way to evaluate effectiveness? SHOULD WE MEASURE THE CLICK? JUST BECAUSE WE CAN...IS THERE VALUE?
    28. 28. Talk the language marketers talk MEASUREMENT DEBATES Source: Bain and Company
    29. 29. MANAGE DELIVERY ACROSS MULTIPLE SCREENS • Linear TV ad insertion • Video on Demand (VOD) • Audience targeting ad insertion • Content monetization • Innovative formats • Video publishing • Sequential messaging • Original show production • Branded entertainment • Program syndication • Campaign analytics CROSS-MEDIA PLATFORM Industry’s only integrated cross-media platform powered by proprietary data to connect consumers, content and brands based on relevance
    30. 30. EXPANDING THE ECOSYSTEM NEW CANVAS30 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.
    31. 31. THANK YOU!31 PROPRIETARY & CONFIDENTIAL © Specific Media. Names and logos are trademarks or registered trademarks of their respective owners.

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