ZO status on Microsoft partnership<br />Redmond , 29 March 2011<br />
Agenda<br />Upfront comments<br />Processes in place in markets per region/ market<br />“Game changing” briefs in the works<br />Other opportunities<br />
Agenda<br />Upfront comments<br />Processes in place in markets<br />“Game changing” briefs in the works<br />Other opportunities<br />
Upfront comments <br />1. Good relationship across markets <br />Microsoft remains overall ZO number 1 media partner across all key markets (excluding search)<br />2. Across ZO markets we identify a clear trend of spend towards 3 key areas<br />Performance/DR campaigns<br />Online video<br />Social media<br />
Upfront comments - continued <br />Microsoft weaknesses to be addressed for ZO to increase spend* across all major markets:<br />Pricing is a major concern<br />Information gathered is that MSN is 10%+ more expensive than its competitors<br />Need a more efficient MSN network with<br />Better targeting / retargeting solutions <br />Lower CPAs:<br />Average CPAs are higher than competition in all markets <br />Average CPAs are 10%+ higher Vs year ago<br />Need more online video inventory <br />At more competitive CPM<br />Need stronger deeper content offering against 15+ target groups<br />Currently spend are shifting to Facebook and local social media properties (Deezer in France, Twenti in Spain...)<br />*Weaknesses discussed at EMEA Microsoft / ZO quarterly steering committee meeting, 2 March 2011 <br />
Lack of VoD inventory for required target – Aviva, Emirates, Chase
Unavailable content for endemic alignment – Nestle, Chase, Puma
Failure to deliver desired volumes - RB</li></ul>Figs are $000s<br />
Agenda<br />Upfront comments<br />Processes in place in markets<br />“Game changing” briefs in the works per region / market<br />Other opportunities<br />
Processes /relationships in place in all major markets<br /><ul><li>We have put in place a number of initiatives over the last 12 months, to ensure we are maximising investment into MSN</li></ul> <br /><ul><li>Quarterly steering committee at regional level in place to review overall business opportunities
Bi-weekly local market meetings between trading teams with attendance from both senior ZOG and Microsoft personnel</li></ul>Forecasts, performance and opportunities/potential growth areas are main agenda points<br /><ul><li>Microsoft are receiving first call and last call on all digital briefs/campaigns
Microsoft given opportunity to re-pitch proposals in the event of their original proposal not meeting client requirements
Specific feedback to Microsoft at a campaign level
A number of client specific days have been set up with Microsoft to discuss client specific challenges
Microsoft invited as key partner on first day of ZO WW Digital and Technology on 13 April 2011</li></li></ul><li>Processes/relationships in place in APAC<br /><ul><li>In 2010 – ZO and MSFT had quarterly F2F meetings and monthly finance calls
Main purpose 1H 2010 was to increase the spend figures, 2nd half to drive training, education and local MSN adoption.
Targeting key clients were discussed but never materialised – Nestle in India, L’Oreal in China, Toyota in Singapore.
MSFT is not a major publisher in APAC, but we worked on a plan to increase growth in ZO’s major markets and spend increased in CY2010:</li></ul>ZO’s spend on MSFT - USD 2.7m (’09) to USD 4.5m (‘10) – 69% YOY growth<br />India – 149% YOY growth<br />China – 81% YOY growth<br />Singapore – 55% YOY growth <br /><ul><li>2011 – Slow start as MSFT has changed their leadership, Richard Dunmall moved to NYC, Jason Scott has replaced him.
Gareth has now (w/c 7th March) met Jason and there will be a Regional finance call on 21st March 2010.
Followed by a F2F VivaKi meeting on 8th April, with country heads attending. Attention will be made on how to grow ZO’s bigger clients on the MSFT platforms. But also discuss, where MSFT are small and expensive compared to the local or global competitors.</li></li></ul><li>Agenda<br />Upfront comments<br />Processes in place in markets<br />“Game changing” briefs in the works per region / market<br />Other opportunities<br />
Summary of all ZO major briefs in the works with Microsoft<br /><ul><li>WORLD PLAN $6.2m
Concept: Microsoft creates the world’s biggest interactive fashion shoot using the Croisette as a stunning backdrop<br />
Toyota – A Long Way from Kansas - €500k to €1.2m <br />Film Aid International uses the power of film and video to reach the world’s most vulnerable communities with messages that inspire them, address their critical shared needs, and effect social change<br />
Multi market activation across all Microsoft platforms<br />
Electrolux “Le Menu de Cannes” – €0.5m <br /><ul><li>Bespoke presence on local MSN sites, including:</li></ul>Editorial content around Food/Style/Design, (all markets), recipes (FR and RU only)<br />‘Live from Cannes’ – video content and photo galleries (all markets)<br />Interactive quizzes (all markets)<br />Competition for to win a VIP trip to Cannes (all markets)<br /><ul><li>Supporting display activity across the MSN network, including Women’s, Lifestyle, Entertainment, Hotmail and Messenger (all markets)</li></li></ul><li>Main Page – Mock Ups<br />21<br />
Chase $0.5m</li></ul>Optimedia:<br /><ul><li>T mobile $1.8m</li></ul>Moxie: $1.4m<br />Microsoft briefed on a total of $4.5m + opportunities<br />
Zenithmedia US – RB – $200k<br />PROGRAM OVERVIEWGlo will create custom editorial galleries which focus on the themes of Fashion & Beauty and the Mother’s Day Holiday in order to create a highly contextualized and relevant environment for Woolite. Woolite will have the opportunity to reach their target audience through their alignment with this custom content, as well as make an impact with visually stunning large-scale ad units. Beginning in April and continuing through June, Glo will create the following custom content to elevate the Woolite brand among consumers: <br /><ul><li>GLO CUSTOM PROGRAM100% SOV Custom Full-Screen Editorial Galleries – Large scale 935x600 Ad Unit
Glo Sitewide Rotation</li></ul>Note: Only one ad per page vs. competition’s 2-4 per page*<br />
Purchase Based Targeting In partnership with comScore<br />Goals<br />Drive trial & awareness of Finish Quantum by targeting consumers who have a high propensity to purchase mono dose dishwasher detergents<br />Strategy<br />Targeting: Microsoft will create a audience model for Finish, based on offline purchase data and online research behavior, in partnership with comScore<br />Post Campaign Research: Finish will receive a Campaign Essentials report that provides valuable insight on consumers who purchase Finish Quantum & Cascade All-in-1 ActionPacs<br />Timeline<br />Approval required by 2/18/11 for a 4/1 launch. Approval by 2/25 will allow for a 4/5 launch, etc. <br />Zenithmedia US – RB - $300k<br />Purchase Based Targeting: Mono-Dose Dishwasher Detergent Purchasers<br />For Finish, Microsoft will build a custom lookalike model using a sample of consumers who are:<br /><ul><li>Purchasers of Cascade All-in-1 ActionPacs & of Finish Quantum</li></li></ul><li>Zenithmedia US –Nestle - $100k<br />Nestle to Leverage MSN Video High Impact Contextual Alignment + Mass Reach MSN Video Network<br />Goals<br />Generate awareness of Pizza Plus new product launch by utilizing Online Video assets:<br /><ul><li>:15 sec spots recommended to run in front of Short Form Content
High-Impact placements around video – to be created by vendors</li></ul>Tactics<br /><ul><li>Content Targeted Pre-roll Video across MSN Entertainment, Lifestyle, Sports (Fox Sports)
Demo-Targeted Pre-roll Video across MSN Video Ad Network to maximize reach
Companion banners negotiated as added value </li></ul>Timeline<br />Awaiting client approval for 4/4 launch<br />Flight scheduled for April – June 2011<br />
Zenithmedia US –Nestle – $200k<br />Nestle to Take Over MSN Wonderwall<br />Program Details<br />Showcase new Skinny Cow products and packaging using fun, engaging, rich media units on MSN Wonderwall:<br /><ul><li>Site Takeovers
Custom slideshow integration 6x’s throughout flight </li></ul>Product Launches<br />Skinny Cow Ice Cream Clamshell packaging Skinny Cow Confections<br />Timeline<br />Approved and preparing to launch <br />April – August 2011<br />$200,000 Net<br />
Zenithmedia US – Chase– $500k<br />Xbox Live Advertising: Thought-Starters for Chase<br />Within Xbox LIVE, users will be compelled to interact with custom content by…<br />For a spend of $500k+, we can also include a research study to support the campaign. Research study will require a signed release form and a 5-week lead time prior to campaign launch.<br />For the entire month of April<br />– when finances are top of mind – Xbox LIVE users will have 3 reasons to thank Chase!<br />Pending Xbox Marketing approval<br />1. Xbox LIVE users who opt-in and purchase 2000 or more Microsoft points ($25 value) with their Chase credit card will receive a free 3-month Gold subscription to Xbox LIVE!*<br />This Flash BDE can also contain any relevant video content (including commercials) for that time frame, as well as animation, sound and custom downloadable content in the form of theme packs and gamer pics that are both free to Chase and the user! <br />2. Messaging on Xbox will also encourage users to sign up for a Chase card to earn a full year Gold subscription.**<br />With a Chase Flash-Enabled Branded Destination Experience (BDE) – the Xbox LIVE equivalent of a microsite – users will learn valuable information about the usage and acquisition promotions on separately branded tabs within the Experience.<br />3. Chase card holders that make any purchases on Xbox LIVE using their Chase credit card will receive 3% cash back.***<br />Awaiting approvals/confirmation on:<br />*Ability to identify Chase CC users on Xbox LIVE – MS purchases cards/manages/fulfills<br />**Requires MS to supply Chase with 12-month Gold subscriptions – Chase to set up unique URL (i.e. chase.com/Xbox), Chase manages/fulfills<br />***Chase manages/fulfills using Chase numbers/reporting<br />
Optimedia US Clients Summary - T mobile $1.8m<br /><ul><li>T-Mobile Spring Window</li></ul>Affordability: $400K<br />Network: $400K<br />Device: $1MM<br />A total of $1.8MM in opportunities for Microsoft<br />
Moxie clients summary of briefs in the works<br /><ul><li>Verizon Wireless– Custom BDE – Xbox Integration: National, $250,000</li></ul>Purchased<br /><ul><li>L’oreal - Custom BDE – Xbox Integration: National, $500,000</li></ul>Under consideration<br /><ul><li>20th Century Fox – Custom BDE – Xbox Integration: National, $300,000</li></ul>Under consideration<br /><ul><li>20th Century Fox – Sweepstakes program: National, $100,000</li></ul>Under consideration (smaller portion of above program)<br /><ul><li>AutoTrader – Custom BDE – Xbox Integration: National, $250,000</li></ul>Not moving forward at this time<br />A total of $1.4MM of opportunities for Microsoft<br />
France key opportunities <br />PMU<br />Good partnership, to be renewed (circa m1€+) <br />CPA disappointing on MSN network and a lot of missed opportunities: CTR and CVR divided by 2 in Jan 11 Vs Jan 10! <br />Volumes of impressions not delivered to objective:<br /> In 2010 average monthly spend: €85K<br /> In 2011 average monthly spend: €36K<br />Bouygues Telecom<br />MSN is first partner for branding opportunities. <br />Short term opportunities will continue to come up on a very competitive market... <br />However loss opportunities on performance campaigns<br />evaluated at circa €30K of loss per month due to declining CPA Vs yag<br />Innovation opportunities: Xbox, Kinect (under discussion ...)<br />Missed opportunity: €50K / Month<br />
France - Other opportunities<br />Budgets not yet defined, but Microsoft will be briefed<br />
France<br />L’Oreal<br />Big issue around launch of “Glo” (woman/luxury channel of MSN)<br />ZO proposed to Lancôme clients the exclusive sponsorship around the launch - no possible negotiation<br />MSN goes to Lancôme direct with a negotiated offer for same package! (lower CPM)<br />Client agrees on price and ask ZO to book<br />MSN discovers that Dior had put an “option 1” and confirmed booking<br />Big clash scaled up to MD of Lancôme.<br />ZO now negotiating with MSN for compensation<br />Annual brief for global partnership to come in March : might be endangered by the Lancôme issue<br />
Finalising agency trading agreement within the next two weeks.
Actual payfactor is not competitive with Yahoo! (index 115) – therefore still in negotiations with MSN.</li></li></ul><li>Postbank – €400k / $0.6m<br /><ul><li>In the works: cooperation for IE9 launch, where Postbank would be exclusive partner.
100 k€ on top of regular branding budget. </li></li></ul><li>Toyota - €350k / $0.5m<br /><ul><li>Finalising the trading agreement (April 2011 – March 2012)
Launch: Only Yaris NG in september – still no brief available, probably focus on women target group
Shift to Online Video – lack of inventory then might be an issue</li></li></ul><li>Post/DHL - €300k / $0.4m<br /><ul><li>„E-Post Brief“: Branding potential (150 k€)
Mein Paket: new marketplace like ebay / Amazon. Planning to sign performance deal in combination with E-Post and DHL Branding budget - potential 50 k€ - 100 k € depends on performance.</li></li></ul><li>Congstar - €200k / $0.3m<br /><ul><li>Performance disappointing: 15% under average competitors
2010 Order-Forecast per month not achieved = overall commitment of 500.000€ could not be spent generating a 325 k€ lost revenue!
2011 even more focus on performance</li></li></ul><li>Generali - €150k / $0.2m <br /><ul><li>Cosmos: Performance disappointing: 20% under average (100 k€ lost revenue)
Central: Requested targeting (AOS) not available (60 k€ lost revenue)</li></li></ul><li>Italy - update<br />
Italy - €250K / $0.35<br /><ul><li>Swarovski: </li></ul>St. Valentine promotional campaign: €35K<br /><ul><li>Puma: </li></ul>Social media: €40K <br /><ul><li>Manneti & Roberts: </li></ul>Video adv: €20k<br /><ul><li>GNV- GrandiNaviVeloci: </li></ul>Performance: €35K<br /><ul><li>HTC: </li></ul>Video Marvel --> young target (18-24 anni), overlay and full screen hp and messenger. <br /> Budget: €50K<br />Flyer --> welcome to new tablet htc. Hp takeover. Budget: €40K<br /> Saga --> 25-54 yo, video advertising. Budget: €30K<br />
Spain -€3.75m / $5.3m<br />ZENITHMEDIA <br />1. P&G 900.000 €<br />2. MERCEDES 375.000 €<br />3. CAJA MADRID New client with a minimum 100.000€ to spend on MSN<br />4. SYMIO 10.000 €/ month but we only achieved 5.000 € / month with the same CPL than last year, Vs 20.000€/month at the beginning of 2010<br />5. GENETSIS 200.000 € DR action<br />6. IBERDROLA 50.000 € DR action<br />7. OPENBANK 150.000 € <br />8. LDA (DirectLine) Not in the media plan due to too high CPL , there would be opportunities if the price matched with 100€ brief<br />OPTIMEDIA<br />1. TOYOTA / LEXUS 450.000€ <br />2. MUTUA 60.000 € - potential to increase if CPL improves<br />3. HEINEKEN 325.000 €<br />4. PERNOD RICARD 300.000€<br />5. YOIGO 175.000 €<br />ZO BARNA<br />1. WEIGTHWATCHERS 25.000€<br />2. NESTLE 220.000€<br />3. MEDIAMARKT 300.000€<br />4. NESPERESSO 60.000€<br />
ZOG Q4 Opportunities <br />O2’s second quarter spend is currently being re-forecasted<br /><ul><li>Experian performance currently weak. MSN currently delivering £1000 CPA vs target of £75. O2 keen to get this working.
Take That Campaign late Mar-May close to sign off, potential of £100k+ investment to MSN.
Spend expected to go up versus the Q1 spend.</li></ul>Exclusive access to O2 container tags<br />Microsoft have more scope to re-target and capture potential O2 customers than their competitors<br />British Airways<br /><ul><li>Planning is now ad-hoc as majority of funding comes from tourist boards</li></ul>Meeting took place on 15th Feb to take MSN through previous poor performance issues, spend could be up to £200k Q2 if you can make the activity work<br />Transitions Optical Lenses Campaign<br /><ul><li>Brief has just come in for April-May activity. MSN currently on the plan for £35k</li></ul>Activity likely to be predominantly VOD.<br />
HTC<br /><ul><li>Three handset briefs expected for Q2, potential to MSN up to £40k</li></ul>Aviva/RAC<br /><ul><li>Aviva Life budget has moved to Search due to continued poor performance. RAC budget dependent on MSN delivery. Currently projected at £50-£100k</li></ul>Mars Petcare<br /><ul><li>Client is starting to buy into Digital. Hopeful of up to £60k’s worth of VOD investment with MSN. Currently awaiting client sign off</li></ul>LG<br /><ul><li>Currently working through a new business brief. Xbox and standard display with possible microsite production in the pipeline. Investment potential of £90k</li></ul>ZOG Q4 Opportunities <br />
Armani – Jeans and underwear: China, $75K</li></ul> Please note that MSN is a JV in China, so it is advertising only as they don’t <br /> provide bespoke content. The above spends are small compared to other regions, but large for their respected markets.<br /> ASEAN (Singapore) and India have no current big projects in the pipeline. <br />
Honda Jazz launch in Australia – $100k<br />Timing: 8 May – 15 June<br />
Qantas – Rugby World Cup Sponsorship – $100k<br />Timing: TBC<br />Qantas is a proud supporter of Australian Rugby Union and is the official airline of the Qantas Wallabies. 2010 saw improved results in the Tri-Nations series, with two wins against South Africa awarding the Qantas Wallabies the Mandela Challenge Plate and ensuring they retained second place both in the 2010 Tri-Nations competition and IRB World Rankings.<br />The Qantas Wallabies will play four matches in 2011 in the Southern Hemisphere's toughest competition, the Tri-Nations. They will kick off their international campaign against South Africa on 23 July in Sydney before taking on the traditional rival New Zealand in Auckland on 6 August. Next the Qantas Wallabies will play against the Springboks in South Africa on 13 August before the team return to Australia to play on home soil against the All Blacks in Brisbane on 27 August.<br />The Qantas Wallabies will then launch into their campaign on rugby's grandest stage at the World Cup in New Zealand on 11 September, competing throughout the month against Ireland, Italy, Russia and the USA in the group stages of the tournament.<br />We wish the Qantas Wallabies the best of luck in their quest for glory in New Zealand.<br />