Luis Spencer Freitas presentation at WTF Programmatic, December 2016

1. Absolut Oak
HOW ABSOLUT FOUND VALUE IN PROGRAMMATIC
WTF Programmatic
December 2016

2. An international
Group
staff members18,523
of Profit from Recurring
Operations realized
outside of France*
92%
6 BRAND
COMPANIES
80 MARKET
COMPANIES
101 PRODUCTION
SITES
* FY 2013/14
2
3 REGIONS

3. A well-defined segmentation:
The house of brands
The Pernod Ricard
House of Brands
global icons
strategic
Premium spirits brands7 strategic Prestige spirits
and champagne brands5
Priority
Premium wine brands5
2
3
18 key local brands
TOP 14

4. Inspire
Share Wins
Learn
Challenge
Our goals for today
4

5. 5

6. Create seamless, personal experiences connecting consumers
through to conversion and advocacy
6
CATCH CONNECT CONVINCE CONTINUE
Individual
Moments
thatmatter
Catch people’s attention & invite
them to experience our brands
Allow them to become “known”
by the brand and create a
dialogue
Search
Content
Channels
Commerce
Data / Programmatic

7. OAK by ABSOLUT
Incubation Launch

8. The Challenge
The vodka category has become hypercompetitive in recent years
8

9. While brown spirits continues to rise in popularity
9
Changing Tastes
After years of outpacing the industry, growth in U.S. vodka
sales is slowing whiskey taker over.
Volume growth in total U.S. spirits, vodka and whiskey, change from previous year
6%
4
2
0
-2
2007 2008 2009 2010 201 2012 2013
Whiskey
Total spirits
Vodka

10. How Do We Break
Through the Clutter?
10

11. Introducing
11
Vodka rested on oak for a bold taste and slightly smoky finish

12. Because we are the credible innovator
12
VIDEO

13. We built an innovative strategy to drive results
13
STRATEGY // OAK BY ABSOLUT ABSOLUT | 4ABSOLUT GOES DARK // USER FLOW
VIDEO PRE-ROLL (36-42 TBC)
RTB
CTA’s
LINK OUT
DESTINATION
QUANTITY
WHAT IS OAK?
VERSION 1
“We Don’t Age”
VERSION 2
“Smooth & Bold”
WHAT DOES OAK
TASTE LIKE?
VERSION 1
“Lights Out”
VERSION 2 /
“Oak is the DJ”
HOW DO I DRINK OAK?
VERSION 1
“Rocks”
VERSION 2
“Ginger/Mule”
WHERE TO BUY DELIVER NOW LEARN MORE
Store Locator Minibar
Drizly
(a) Product Page
(b) Recipe Page
6 6 12
ORDER NOW
(a) Reserve Bar
(b) Casker's (TBD)
6 - 12
A / B TESTING A / B TESTING
Sequential Messaging Sequential Messaging
CATCH
CONNECT
CONVINCE

14. INSPIRATION
& DISCOVERY
RETARGETING PURCHASE ARRIVAL & USAGE
Brian’s at work on a Friday, counting
down the hours until he’s free to have
drinks with his friends.
While taking a break and skimming
through scores on ESPN, he is served
an ad from Absolut showcasing
videos that introduces a brand new
Vodka product and answers his
question,
“ what is Oak by Absolut” and “what
does it taste like”?
Intrigued by this brown vodka, he
clicks on the “Discover Now” CTA
button and finds himself on Absolut’s
website.
Where he sees the “Buy Oak Now”
button.
Emotion: Intrigued, skeptical
Feeling skeptical at purchasing a bottle
online, Brain decides to wait and stop
by his local liquor store on his way
home.
The day’s finally winding down and
Brian is skimming through his
Facebook newsfeed on his mobile
device.
Scrolling through the newsfeed he
sees an ad for Oak by Absolut,
featuring multiple images of the bottle
and a cocktail that resembles a whisky
ginger. Encouraged, he decides to
click on the ad and once again be
driven to an opportunity to purchase on
an e-commerce platform.
Emotion: Re-engaged and curious
• Once on the Minibar product page,
he notices that Absolut and Minibar
offer free delayed Shipping.
• He decides the convenience
outweighs his previous
hesitations and selects two 1L
bottles, then checks out.
The bottles of Absolut are conveniently
delivered to his apartment, at the
desired time, saving Brian a trip to the
liquor store so he can focus on
preparing for his party.
Emotion: Thankful and excited
Not only did we find the right consumers,
we engaged them at every point in their journey
14
Meet Brian: A 26-year old Denver young professional looking to throw an impromptu party at his apartment

15. Across all channels, for a digitally powered test,
learn, optimize and repeat solution
15
CONTENT
AB tested video content to
identify top performer and drive
for efficient video engagement.
Tested multiple CTA creative to
identify purchase triggers and
e-commerce trends.
DATA/ PROGRAMMATIC
Gained reach across a vast
array of sites by layering in
strategic target segments via
Programmatic buying to drive
efficient results at scale.
SEARCH
Leveraged search trends to
identify strategic keyword
targets, capturing both
undecided users and relevant
demand, allowing us to own
share of voice and drive users
straight to purchase.
COMMERCE
Moved consumers from
interactive content to off-
premise trial, providing a path
to purchase via Reserve Bar
and Minibar.

16. We surpassed expectations and
built a strong foundation for growth
16
REACH
Delivered 11% more
Reach than initial
ComScore projections
IMPRESSIONS
Delivered 4.5% more
Impressions through
constant optimizations
VIDEO COMPLETIONS
Surpassed video
completion benchmarks
with over 2000% more
Video Completes

17. CONVERSION
• Video completion rates where significantly higher on mobile devices than on
desktop.
AWARENESS
1. Rich Media played a strong role, telling the Oak story in a visually impactful way, with users spending an
average of 19 seconds with the desktop unit. As well, it’s important that creative fits within the given
platform as we were able to boost tablet engagement rate from 1.33% in Incubation to 68.58% after
reformatting.
2. Mobile remained a strong source of search traffic and engagement with consumers engaging with Oak ads
at a 15% higher rate than other devices.
CONNECTION
• Oak messaging drove conversions of other Absolut offerings.
CONTINUE • Retargeting serves to efficiently push users down the purchase funnel
What We Learned:

18. In Conclusion

19. 19
Test/Learn/Optimize approach.
Content is king
But not just any content – don’t chase it just for the sake of it
Understand the journey, don’t force it