Kate Slaymaker, FS Client Business Partner, Nielsen UK Chris Cox, Marketing Effectiveness Consultant, Nielsen UK

1. November 2016
NIELSEN’S MARKETING
EFFECTIVENESS
PHILOSOPHY
Chris Cox, Marketing Effectiveness Consultant
Kate Slaymaker, Financial Services Client Business Partner

2. 2
Estimated $ 25 Billion
spent on ADVERTISING worldwide each year
Over $ 540 Billion
On Research…
spent on ADVERTISING IN THE UK each year
ADVERTISING IS BIG BUSINESS, BUT
UNDERSTANDING IT…
$2 Billion

3. 3
RESEARCH ALSO HAS TO ASSESS A LARGER AND
DENSER FIELD
UK FS TV ADVERTISING SINCE 2010
+8% +13% -2% +6% +12%
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
2010 2011 2012 2013 2014 2015
Spots FS Spend
Source: Addynamix, 01/01/10-31/12/15

4. 4
AND FS IS ONLY A TINY PART OF THE PICTURE
2010 2011 2012 2013 2014 2015
ALL UK TV ADVERTISING SINCE 2010
Average FS contribution = 9%
FS TV
SPEND
ALL TV
SPEND
Source: Addynamix, 01/01/10-31/12/15

5. 5
CONSUMER BEHAVIOUR IS BECOMING MORE
COMPLEX AND FRAGMENTED, ON DEVICE…

6. 6
…AND IN TIME
2002 2005 2010 2015
HoursperWeek
72
66
60
54
48
42
36
30
24
18
12
6
Tablet
Smartphone
PC
Multimedia Device
VCR
Game Console
DVD/Blu-Ray
Time-Shifted TV
Live TV
Radio
Source: Nielsen Total Audience Report and Audience Insights Analysis

7. 7
OLD PROBLEMS

8. 8
WITH A NEW LENS
of demo targeting does not
reach the intended audience
40%
of impressions are
not viewable
50%
of campaigns
are noticed
20%

9. 9
CHALLENGING LINEAR BRAND MODELS
Determine
level of
support
Maximize
exposure
Maximize awareness,
communication & intent
Drive
Equity BRAND

10. 10
NOW MODELS HAVE TO RECOGNISE CONSUMER
COMPLEXITY
SOCIAL INTERACTIONS
ADVERTISING
RELATED MEMORIES
CATEGORY EXPOSURE
MUSIC
AD COMPONENTS
IMAGERY
BRAND

11. 11
THE COMPONENTS OF A CAMPAIGN ARE WELL
UNDERSTOOD
RIGHT CREATIVE
Engages emotion and long-
term memory, cuts through
clutter, builds brand
RIGHT AUDIENCE
Reaching the right
audience to drive sales
RIGHT MEDIA PLAN
Relevant programming, on right
device(s), with sufficient weight
CREATIVE
MEDIAAUDIENCE

12. 12
BUT MEASUREMENT IS LESS CONSISTENT
RIGHT CREATIVE
QUAL DRIVEN
RIGHT AUDIENCE
QUANT DRIVEN
RIGHT MEDIA PLAN
QUANT DRIVEN
CREATIVE
MEDIAAUDIENCE

13. 13
CREATIVE DRIVES, MEDIA ACCELERATES
0%
10%
20%
30%
40%
50%
TV Brand Effect Database Ad Performance (A18+)
Net Impact Potential
Top Ads
Average Ads
Bottom Ads
Media Weight
NetImpactPotential
Significant investment in support will only
increase performance of a poor ad so far
Source: Nielsen TV Brand Effect

14. 14
THE POWER OF EMOTION IS RECOGNISED
ALTHOUGH HARNESSED LESS
NON-CONSCIOUS
EMOTIONAL VALUES
Emotions
bias what
we believe
Often, emotions
(instinct) lead directly
to purchase
CONSCIOUS FACTS
(taste, refreshment, price)
CONSCIOUS FACTS
(taste, refreshment, price)

15. 15
IN 2014 FS ADS STRUGGLED TO CUT THROUGH IN
NEURO TESTING
Derived Measure
Overall Effectiveness Action Intent
TSB TSB, HSBC
Halifax, Lloyds, HSBC Halifax, Lloyds
Quintile
Distribution*
Strong
Good
Average
Fair
Weak
Comparative Performance to Neuro Database
Source: Nielsen Neuro 2014 Self generated case study | Comparison to 1200+ video stimuli tested by Nielsen Neuro

16. 16
LOCAL BANKING EXAMPLE;
FROM GOOD TO GREAT
7.3
3.8
7.0
4.4
6.3
7.5
4.9
5.5
7.1
0
1
2
3
4
5
6
7
8
9
10
TSB
“LOCAL BANKING”
Source: Nielsen Neuro 2014 Self generated case study | Comparison to 1200+ video stimuli tested by Nielsen Neuro

17. 17
CREATING A STRONG TV AD THAT CUTS THROUGH
IS NOT THE NORM
0-5% 6-10% 11-15% 16-20% 21-25% 26-30% 31-35% 36-40% 41-45% 46-50% 51-55% 56-60% 61-65% 66%+
Total audience recalling both ad and brand 24 hours after in home exposure
Market average
Source: Nielsen TV Brand Effect 01/01/16-13/11/16

18. 18
ALTHOUGH FS HAS HAD A GOOD YEAR THUS FAR
Total audience recalling both ad and brand 24 hours after in home exposure
0-5% 6-10% 11-15% 16-20% 21-25% 26-30% 31-35% 36-40% 41-45% 46-50% 51-55% 56-60% 61-65% 66%+
Whole Market
Financial Services
Source: Nielsen TV Brand Effect 01/01/16-13/11/16

19. 19
FALLING IN THE MID TO UPPER RANGE OF ALL ADS
Source: Nielsen TV Brand Effect 01/01/16-13/11/16
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
BrandCommunication
Ad Memorability

20. 20
BUT BRAND PERFORMANCE VARIES WIDELY
30%
50%
70%
90%
20% 40% 60% 80%
BrandCommunication
Ad Memorability
Source: Nielsen TV Brand Effect 01/01/16-13/11/16

21. 21
Major UK financial services brand, who used
digital ad ratings measurement on all display
campaigns in 2014
WE BOUGHT OUR AUDIENCES
31% MORE EFFICIENTLY, WORTH
£3.0M IN IMPROVEMENTS
ACROSS THE YEAR
AGENCY TEAM, 2014
WHY IT MATTERS