The deck I co-presented with Ran Cohen of Upfront Digital Media (a Legolas Company) at IRI's Summit in April, discussing the evolution of digital advertising from direct response to brand building

1. insights
trends
networking
How do
Online ads impact
Offline Sales
Ran Cohen
Co-founder, President
Phil Ripperger
VP New Media Sales

2. 2 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Key Takeaways
Online advertising drives sales
in stores
Online advertising can be
safe, simple, accurate and
effective
Optimization beyond the click
Audience + Environment =
Impact
1
2
3
4

3. 3 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Agenda
History1
Brand Advertising1a
Online Advertising1b
CPG Case Study3
Q & A4
Brand Challenges Online2

4. 4 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Agenda
History1
Brand Advertising1a
Online Advertising1b
CPG Case Study3
Q & A4
Brand Challenges Online2

5. 5 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Agenda
History1
Brand Advertising1a
Online Advertising1b
CPG Case Study3
Q & A4
Brand Challenges Online2

6. 6 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
The birth of branding
The Century of the
Self is an award-
winning British
television documentary
series by Adam Curtis.
It focuses on how the
work of Sigmund
Freud, Anna Freud,
and Edward Bernays
shaped the way
marketers moved
beyond needs-based
toward desire-based
advertising.
This 21/2 minute video
describes the challenge
presented to Bernays
and how it led to the
birth of branding as we
know it.

7. 7 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
US Personal Consumption vs.
Advertising Spend
0
2000
4000
6000
8000
10000
12000
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Annual Consumer Spend
$Bn
0
100
200
300
400
500
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Annual Advertising Spend
$Bn
SOURCE: US Bureau of Economic Analysis, Coen Structured Advertising Expenditure Dataset, Business Insider

8. 8 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Agenda
History1
Brand Advertising1a
Online Advertising1b
CPG Case Study3
Q & A4
Brand Challenges Online2

9. 9 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Change in media consumption
30% of Media consumption online

10. 10 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
First online banner ad
Year – 1994
Brand – AT&T
Publisher – Hotwire

11. 11 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Online Ad Revenues History
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Q12001
Q22001
Q32001
Q42001
Q12002
Q22002
Q32002
Q42002
Q12003
Q22003
Q32003
Q42003
Q12004
Q22004
Q32004
Q42004
Q12005
Q22005
Q32005
Q42005
Q12006
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
SOURCE: IAB
Quarterly Revenue Growth
$Mn

12. 12 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Powerful branding tool
The campaign promoting the launch of ―Avatar‖ on DVD created an
immersive, interactive experience with rich media ads and high definition
audio and video demonstrating the power of online branding.

13. 13 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Agenda
History1
Brand Advertising1a
Online Advertising1b
CPG Case Study3
Q & A4
Brand Challenges Online2

14. 14 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Sales

15. 15 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
WHERE is my Audience?

16. 16 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
WHERE is my message?

17. 17 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Simple

18. 18 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Solution
Drive brand results via scalable online targeting of relevant
consumers on premium publishers
Your
consumers
Prioritized &
Quality
Inventory
Offline
Sales

19. 19 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
• Heavy Category
Buyers
• Switchers
• Geo Fencing
Your Consumer

20. 20 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Premium
Remnant
Unutilized
Endemic
• Priority Access – Direct Pub
• Guaranteed Media
• Predictable Reach & Freq.
• Safe & Transparent
• High Quality
• Flexible creative (Rich &
Video)
• Low Priority
• Uncertain Delivery
• Unpredictable
Reach & Freq.
• Transparent
• Lower Quality
• Standard Creative
Spot/RTB
Upfront
ExchangesDSP Networks
100% control
0% RTB
Publisher Ad Server
Quality Placements

21. 21 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Brand Safe Environment

22. 22 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Audience & Environment

23. 23 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Optimized Media Plan
Publisher Reach Budget
AOL 1m $100,000
Glam
Media
0.75m $75,000
Rodale 2.5m $250,000
MSNBC 0 $0
Total 4.25m $450,000

24. 24 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Results

25. 25 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Agenda
History1
Brand Advertising1a
Online Advertising1b
CPG Case Study3
Q & A4
Brand Challenges Online2

26. 26 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
What is the Value of a Click?

27. August 30-31, 2010
How It Works…
Identify & Create purchase-based
audience segments from Panel
Legolas passes exposed
panelists to IRI
IRI compares purchases between
test and control groups
$2.00
$2.50
Buying Rate
Non-Exposed Exposed
Ad tags identify when panelists are
exposed to ads.
Legolas models panel to
larger audience and
activates campaign
Define objectives and targets Deliver Panel IDs to Legolas
IRI identifies control group
Heavy Users
Competitive Users
High Category Users

28. Case Study: Baked Goods
• Campaign Summary
– Initial, directional results are positive
• Dollars per household are up 6.9% vs. prior year.
Driven by an 11.3% increase in dollars spent per
occasion.
• Targeting Performance
– Females 21 – 49 with kids and who bought competitive
products indexed higher than total campaign in dollars per
household & penetration
Target
Dollars/
HH
Penetration Occasions
$ per
Occasion
Buyer
Count
Target Source
Total Targeted 109 106 101 102 509
F 26-55 w kids 117 107 106 103 242 Target Source 1
Brand X switchers & heavy sweets buyers 111 105 99 107 68 Target Source 2
F with kids 117 108 114 95 59 Target Source 3
F 25-49 w kids who buy sweets 107 100 107 99 96 Target Source 4
F 21 - 49 with kids who buys competitive 126 123 100 102 175 Target Source 5
F 25-54 w kids 98 101 100 97 122 Target Source 6
F 25-49 w kids 97 102 100 96 109 Target Source 7
Interim Period - Index to Total Campaign

29. Case Study: Frozen Pizza
• Campaign Summary
– Initial, directional results are positive
• Dollars per household are up 13.3%, penetration was
up 17.5% offset a small decrease in occasions vs. the
control.
• Creative Performance
• ―Soccer‖ only creative clearly outperformed
Creative
Dollars/HH Penetration Occasions
$ per
Occasion
Buyer
Count
# IRI HHs
Exposed
44047 - Soccer (Only) 148 140 103 103 41 626
44049 - 14 Min (Only) 72 90 88 92 28 644
44051 - Obstacle (Only) 119 134 88 101 39 647
Interim Period - Index to Total Targeted

30. Case Study: Soup
• Campaign Summary
‒ Initial, directional results are positive
• Dollar per household sales: +$0.02 during the 6-week interim period
• Purchase occasions and dollars spent per occasion are driving the
increase.
• Targeting Performance
Target
Dollars/HH Penetration Occasions Dollars/Occasions Buyer Count
No Profile 73 88 99 84 183
Purchse-Based
Targeting
128 112 102 112 204
Target Source 1 119 129 79 118 35
Target Source 2 133 113 102 115 148
Target Source 3 107 103 89 116 82
Target Source 4 150 121 104 120 67
Interim Period - Index to Total Campaign

31. Case Study: Soup (cont’d.)
• Publisher Performance
Publisher
Dollars/HH Penetration # Occasions $/Occasions Buyer Count
Publisher A 118 131 91 90 89
Ad Network A 96 111 82 105 37
Publisher B 103 95 104 104 26
Publisher C 162 123 95 139 30
Portal A 92 91 100 102 281
Interim Period - Index to Total Campaign

32. 32 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Case Study
Describe how the client used the
analysis and recommendation
• Results shared with client insights
and market research teams as well
as their digital agency of record
(AOR)
• Implemented campaign optimization
reads on all campaigns of sufficient
reach and duration
Quantitative value added (required)
• It is expected that the campaign
optimization report will eliminate +/-
$120,000 in ad waste per $1MM+
campaigns.
Results / Value Created
Client
Situation/
issue
Our
Approach
Client description
• Leading international food manufacturer of scores of
iconic brands, most of which occupy No. 1 or No. 2
market positions
Client situation
• Client had worked with IRI partner Legolas to develop
innovative online ad targeting and activation platform
and were looking to incorporate campaign KPIs that
would be more meaningful than other online campaign
metrics such as click-through-rates (CTR), and cost-
per-action (CPA).
Detail SIG’s approach to the client’s problem
• Panel-based test/control analysis
• Mid-campaign sales data comparing exposed with
non-exposed households
• Additional campaign reads to understand relative
effectiveness of various campaign tactics used (e.g.
audience segments, publishers & creative)
Highlight SIG’s recommendations
• Focus campaign spend on high performing audience
segments and creative
• Ensure that campaign objectives tie to overall brand
objectives—short vs. mid-term impact.

33. 33 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Actions & Implications
Online advertising is core to
branding…and sales
Message to your best
consumers in the right places
Many Tier 1 publishers on one
campaign ad buy
Leverage offline sales to
optimize campaigns
1
2
3
4

34. August 30-31, 2010
Don’t forget to fill in your actionable growth insights on page 45
of your GROWTH ACTIVATION PLAYBOOK!
NEW! Summit Playbook

35. 35 Copyright © SymphonyIRI Group, 2013. Confidential and Proprietary.
Questions?
Ran Cohen
Co-Founder, President
Legolas Media
ran@legolas-media.com
917.860.1502
Phil Ripperger
VP, New Media Solutions
SymphonyIRI Group
phil.ripperger @symphonyiri.com
203.247.1706
Twitter: @RipperP

36. insights
trends
networking
appendix

37. Panel Analytic Tree – Drivers of
Dollar Sales
Dollar Sales
% of HH Buying
―Penetration‖
Dollars Per Buyer
―Buying Rate‖
$ Per Purchase Occasion
―Purchase Size‖
Purchase Occ Per Buyer
―Purchase Frequency‖

38. August 30-31, 2010
Frequently Asked Questions
• How can I best use the optimizer?
The indices show sales from households exposed to your campaign. We can segment sales lift across
purchase-based targets, creative, publishers and messaging tactics (e.g. contextual vs. behavioral)
The indices directionally demonstrate which tactics may have an effect on household purchases.
• What’s the difference between the optimizer and an ROI analysis?
The optimizer indexes raw data from our panel to quickly review which digital media tactics may have
an effect on household purchases. It’s a snapshot in time that shows product sales during the
campaign. It uses only one cell (exposed/test).
An ROI analysis uses a statistical regression model that demonstrates advertising impact from buying
households on product sales. We adjust the model to ensure the exposed (test) and non-exposed
(control) cells look alike in their buying behavior (price paid, retail outlet shopped, etc.) and
demographics. The analysis provides the most likely (average) short-term sales lift that we would
expect to see at least 80% of the time given the same tactics.

39. August 30-31, 2010
Frequently Asked Questions
• What’s the difference between raw and modeled data?
Raw data includes purchase information pulled from our panel database as uploaded by our
participating buying households.
Modeled data excludes outliers and attempts to ensure the test and control sample sets are similar
in their buying behavior, in-store promotional activity, pricing considerations and demographics.
Additionally, influencing factors outside of the digital ad campaign are adjusted for, allowing us to
provide a statistically significant result.
• Can the optimizer predict our total campaign sales lift and ROI?
No, the optimizer is a snapshot in time that illustrates sales during your campaign. Directionally, it
can demonstrate if sales are moving in a positive or negative direction. It does not demonstrate
impact to sales based on exposure to advertising.

40. Target Optimization Analysis (vs
Total Targeted)
• Directionally, audience targeting has had a positive impact on the campaign
– Most targets performed similarly, but Target 2 under-performed compared to the rest.
• Target groups are mutually exclusive
• Sample Size = 572 raw exposed targeted buyers (out of 11,377 exposed Panel households)
• Please note – raw data, for diagnostic purposes only, not predictive of final results.
Target
Dollars/HH Penetration Occasions
$ per
Occasion
Buyer
Count
# IRI HHs
Exposed
Target 2 (Only) 79 90 93 94 46 1,059
Target 3 (Only) 104 109 96 99 70 1,288
Target 4 (Only) 103 93 103 107 82 1,541
Target 9 - National L&L or BC (Only) 100 95 103 102 129 2,696
Target 10 - National Demo (Only) 104 102 95 108 56 1,091
Super Target 1 - General (Only) 89 92 96 100 221 4,542
Super Target 3 - National (Only) 99 96 99 104 189 3,943
Interim Period - Index to Total Targeted