Digital Media Briefing Marketing Landscape for Wine & Spirits Bill Youstra, Halogen Network

Agenda What’s Happening Now Implications for Consumer Marketers Specifically: Wine & Spirits Summary

What’s Happening Now

Implications for Consumer Marketers

Specifically: Wine & Spirits

Summary

What’s Happening Now

Big Changes Underway Media offerings Consumer behavior Consumer devices Web technologies Marketing technologies

Media offerings

Consumer behavior

Consumer devices

Web technologies

Marketing technologies

Digital Media Landscape Traditional digital media Blogs User-generated content Email Blended models & microsites Social media Social networks Real-time web/TXT Gaming

Traditional digital media

Blogs

User-generated content

Email

Blended models & microsites

Social media

Social networks

Real-time web/TXT

Gaming

Content, Communication, Community

Real-time Web vs 3-day old Web

Consumer Behaviors Expressive & open Personal sharing Extended connections Public reputations Shorter attention span Always-connected Constantly interacting

Expressive & open

Personal sharing

Extended connections

Public reputations

Shorter attention span

Always-connected

Constantly interacting

So that’s what’s new

But is it all legit? How much of this is noise, time-wasters and narcissism run amok?

It depends. Not everything will stick.

How can you tell the difference?

Watch your kids.

Here’s what they say: Broadcast radio sucks. CDs are dead. What’s a newspaper? I love movies but not so much commercial TV Magazines are great at the hair salon…oh never mind…I’m texting Facebook is a nonstop responsibility…almost a job Gaming is a daily thing Twitter is neither Ads annoy me

Broadcast radio sucks.

CDs are dead.

What’s a newspaper?

I love movies but not so much commercial TV

Magazines are great at the hair salon…oh never mind…I’m texting

Facebook is a nonstop responsibility…almost a job

Gaming is a daily thing

Twitter is neither

Ads annoy me

I can’t imagine my life without Laptop Facebook iPod/MP3 player TXT/smartphone

Laptop

Facebook

iPod/MP3 player

TXT/smartphone

Digitally speaking, adults are becoming more childlike

At a faster rate than ever before

It’s not a “kid thing” Fastest-growing FB segment: women over 55 More in 26-44 age bracket than 18-25 Women dominate casual gaming More 33 yr old women own Nintendo DS than 13 yr old boys Expect similar behavior on mobile apps/games US Facebook Audience Growth, June ‘09

Fastest-growing FB segment: women over 55

More in 26-44 age bracket than 18-25

Women dominate casual gaming

More 33 yr old women own Nintendo DS than 13 yr old boys

Expect similar behavior on mobile apps/games

What adults will say I can’t imagine my life without: Ubiquitous web Handheld apps TXT On-demand digital media An excellent beverage

I can’t imagine my life without:

Ubiquitous web

Handheld apps

TXT

On-demand digital media

An excellent beverage

And if you want to “message” me…

… you’d better do it on my terms.

What This Means for Brands

It’s All Good More powerful More effective More efficient Better metrics

More powerful

More effective

More efficient

Better metrics

You can now reach prospects… more precisely than ever, with more compelling vehicles, highly-targeted appeals, greater leverage, cleaner metrics, and the ability to close the sale online or in the store.

more precisely than ever,

with more compelling vehicles,

highly-targeted appeals,

greater leverage,

cleaner metrics,

and the ability to close the sale

online or in the store.

In short: You can engage your target like never before. If you play by the new rules.

What you can do now

Format: Horizontal Expandable 300x600  600x600 Expands on rollover Closes with roll-off Pae / 3

300x600  600x600

Expands on rollover

Closes with roll-off

Format: Pushdown Starts as a strip across the top of site Upon rollover, expands to 990 x 250 When open, ‘pushes down’ content and becomes a big screen delivery vehicle Stays open until the user clicks to minimize Pae / 3 PUSH DOWN 990x250

Starts as a strip across the top of site

Upon rollover, expands to 990 x 250

When open, ‘pushes down’ content and becomes a big screen delivery vehicle

Stays open until the user clicks to minimize

Dedicated Email Publisher partners send out dedicated e-mails Large, exclusive canvas Message includes offer with clear click to purchase Pae / 3

Publisher partners send out dedicated e-mails

Large, exclusive canvas

Message includes offer with clear click to purchase

Sponsored Post Create awareness & drive sales Written in the tone of the publisher site Clearly identified as sponsored, yet integrated seamlessly into the content Sponsor transparency increases authenticity—Halogen Network delivers quality content marketing with appropriate disclosure Pag / 3

Create awareness & drive sales

Written in the tone of the publisher site

Clearly identified as sponsored, yet integrated seamlessly into the content

Sponsor transparency increases authenticity—Halogen Network delivers quality content marketing with appropriate disclosure

Email Aquisition Sweepstakes generate a high participation rate Brand logo(s) can be featured prominently throughout the sweepstakes Creates an opportunity to interact and build a relationship with new potential customers Builds a fresh marketing list Sponsor can contribute featured prizes and generate goodwill with consumers Pag / 3

Sweepstakes generate a high participation rate

Brand logo(s) can be featured prominently throughout the sweepstakes

Creates an opportunity to interact and build a relationship with new potential customers

Builds a fresh marketing list

Sponsor can contribute featured prizes and generate goodwill with consumers

Example: Custom Editorial Bacardi wanted to create buzz around its new mojito flavor The key target was urban foodies, so the site features new restaurant openings in urban areas In addition, the new restaurants featured on the site were contacted by Bacardi and are carrying the mojito flavor. So when foodies go to these locations, the brand is further reinforced. One month into the program, Halogen has delivered 250k impressions just to the microsite and the CTR is .15%. We expect more growth now that all content is available.

Bacardi wanted to create buzz around its new mojito flavor

The key target was urban foodies, so the site features new restaurant openings in urban areas

In addition, the new restaurants featured on the site were contacted by Bacardi and are carrying the mojito flavor. So when foodies go to these locations, the brand is further reinforced.

One month into the program, Halogen has delivered 250k impressions just to the microsite and the CTR is .15%. We expect more growth now that all content is available.

Example: Mobile Apps If users have downloaded the UrbanSpoon app, they will see a few different ads: Stella: goes to the Stella mobile page Blue Moon: goes to a Halogen Network-built landing page, with 2 food pairings Absolut: goes to the iTunes page to download the Absolut application Stella started running about 2 weeks ago and has already delivered 1 million+ impressions and has a CTR of 28%

If users have downloaded the UrbanSpoon app, they will see a few different ads:

Stella: goes to the Stella mobile page

Blue Moon: goes to a Halogen Network-built landing page, with 2 food pairings

Absolut: goes to the iTunes page to download the Absolut application

Stella started running about 2 weeks ago and has already delivered 1 million+ impressions and has a CTR of 28%

Example: Twitter Campaign Interested consumers can sign up for Twitter alerts Ivanka will tweet behind-the-scenes happenings before the hotel opening Participants can share up-to-the-minute opinions Encourages audience engagement and interaction with brand message Taps into social media benefits Extends life of media campaign

Interested consumers can sign up for Twitter alerts

Ivanka will tweet behind-the-scenes happenings before the hotel opening

Participants can share up-to-the-minute opinions

Encourages audience engagement and interaction with brand message

Taps into social media benefits

Extends life of media campaign

Twitter Campaign Dynamics Call to Action Marketer Consumer

Twitter Campaign Dynamics Message Marketer Consumer Feedback Message Feedback Message Feedback

Twitter Campaign Dynamics Personal Network Message Marketer Consumer Feedback Message Feedback Message Feedback

Ad Targeting Demographic Geographical Behavioral (incl varietal, region, price point) Social graph Combined: situational targeting

Demographic

Geographical

Behavioral (incl varietal, region, price point)

Social graph

Combined: situational targeting

Wine & Spirits

Demographic Alignment Millennials Are the fastest-growing demo Are the most attractive demo Drive growth “ Drink more wine” % by generation

Millennials

Are the fastest-growing demo

Are the most attractive demo

Drive growth

Category Alignment Well positioned to thrive in social media, mobile and other new platforms Easily positioned as content, leisure, entertainment Lends itself to discussion, debate, diatribe, polls, reviews Expression, connection, engagement

Well positioned to thrive in social media, mobile and other new platforms

Easily positioned as content, leisure, entertainment

Lends itself to discussion, debate, diatribe, polls, reviews

Expression, connection, engagement

Category Alignment Benefits from interactive solutions Shopping guides & registries Food pairings Recipes Cellar management

Benefits from interactive solutions

Shopping guides & registries

Food pairings

Recipes

Cellar management

Behavioral Alignment “ Wine” has 758,000 fans Wineries are building online audiences … So are… Wine Festivals

Behavioral Alignment Out of 500+ “Wine” Facebook Groups, #3 is: “ OMG I so need a glass of wine or I’m gonna sell my kids.”

Trends New sales & distribution models New functionality Broader media distribution Better partnership environment Key initiatives Brand enhancement Online sales Local activation

New sales & distribution models

New functionality

Broader media distribution

Better partnership environment

Key initiatives

Brand enhancement

Online sales

Local activation

Email Outreach

Facebook Integration

Summary Meet your consumers where they are Don’t interrupt them -- add value Play defense and offense Control your reputation & guide the conversation But don’t let control issues paralyze you: take risks

Meet your consumers where they are

Don’t interrupt them -- add value

Play defense and offense

Control your reputation & guide the conversation

But don’t let control issues paralyze you: take risks