1

Brand building in the digital ageWhy effective brand and communications planning matter more than ever

1

2

The probability of growth

What proportion of brands grow over a 5 year time frame?

Brands matter more than ever before

For consumers brands are shortcuts to meaning

The value of being Meaningful, Different and Salient

How brand attitudes drive sales, price paid and future growth potential

Our media landscape is changing

The media world is more complex, offering challenges and opportunities

Five ingredients of a successful comms plan

The five ingredients of a successful communications plan

Takeaways

Applying the thinking to your business

Brand building in the digital age

3

The probability of growthWhat proportion of brands grow over a 5 year time frame?

Source: analysis of global BrandZ data for same brands across 5 years4

What percentage of brands included in BrandZ grew measurably over the course of 5 years?

1/51/8 1/4 1/3

5

Within the 1 in 5 that grew, which group would you want your brand to be in?

Source: 2012/3 compared to 2007/8 for 2,419 brands measured in BrandZ with measures normalized for brand size in 2007/8

+20% +6%

6

Brands matter more than everFor consumers brands are shortcuts to meaning

7

How many seconds does it take people to decide the appeal of a web page?

1/5 1/2 21/20

8

We react first then think

“ Most of what you think and do originates in your System 1, but System 2 takes over when things

get difficult and it normally has the last word”

– Easy– Automatic– Fast

– Effortful– Logical– Slow

SYSTEM 2SYSTEM 1

9

Three sets of associations shape how we respond to brands

BRAND

EMOTIONEXPERIENCEKNOWLEDGE EMOTIONEXPERIENCEKNOWLEDGE

10

So ideally brands need to be the OBVIOUS CHOICE

– Have salient, positive and motivating associations, e.g. fresh breath all day

SYSTEM 2

– Be immediately recognizable

– Have a strong, positive emotional “charge”

SYSTEM 1

11

The value of being Meaningful, Different and SalientHow brand attitudes drive sales, price paid and future growth potential

12

13

14

Source: analysis of global BrandZ data for same brands across 5 years15

Which of these three qualities is most important to a brand’s success?

DifferentMeaningful Salient

Foundation Competitiveedge

Main growthdriver

16

Three reasons why brands need to be meaningfully different

Grow faster when

salience increases

Command a price

premium

Attract more than fair share of

followers on social

networks

17

When salience grows meaningfully different brands grow faster

Source: 2012/3 compared to 2007/8 for 2,419 brands measured in BrandZ with measures normalized for brand size in 2007/8

Salience grewbut not meaningfully different

+20%Meaningfully different and

grew salience

+6%

18

Meaningful differentiation, as perceived by consumers, encourages them to pay more for a brand

Source: Millward Brown R&D study, NZ merged equity and Flybuys behavioral data for 810 consumers. 13 brands

Low Premium Medium Low High Premium0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Brand-Driven Price-Driven

Ave

rage

Pric

e P

aidEven price-driven

consumers pay more for high Premium brands,the ones they think are meaningfully different

19

Brands that are DIFFERENT & TREND SETTING attract more than their fair share of followers on Social Media

Meaningful 113

Different 147

Salient 100

Power8

Meaningful 104

Different 91

Salient 125

Power10

MORE FOLLOWERS THAN EXPECTED

LESS FOLLOWERS THAN EXPECTED

GROWTH POTENTIAL 61% GROWTH POTENTIAL 46%

20

Don’t forget, people watch ads for the brands they like, but they stillhave to see them

21

Our media landscape is changingThe media world is more complex, offering challenges and opportunities

22

The world is changing fast…

FRAGMENTING MEDIA

DIGITAL CONTENTSOCIAL MEDIA

E-COMMERCEMOBILE

CONSUMER GENERATED

ADDRESSABILITY

23

Digital represents a big media opportunity in Saudi Arabia due to…

HIGH USAGE &

STRONG RECEPTIVITY

102minutes

(19%)

189minutes

(35%)

99minutes

(34%)

43minutes(12%)

Global Average 113 (27%)

Global Average 108 (26%)

Global Average 50 (12%)

Global Average 147 (35%)

TV Smartphone Laptop Tablet

Source: Millward Brown Cross Media studies in MENA24

In the Middle East and North Africa today the cost of achieving a 1% increase in brand attributes in digital compared to traditional is…

1/31/2 2/3 1/4

Millward Brown Cross Media studies in MENA25

When planned effectively digital offers significant reach potential in MENA

TV: ~75%+

OOH: ~50%+

(metro only)

Digital 36%

53%

10%

Print: 35%

Radio: 17%

% R

EACH

Video neutral case study Turkey26

In this case study from Turkey Facebook performs in line with major TV channels on reach

48% 53%Channel 1

48%Channel 240%

Channel 338%Channel 4

34%Channel 5

27

The media world is fragmenting but digital and social offer new distribution opportunities

EARNEDOWNEDRelateddigital

content

EARNEDSocial and

media response to the event

OWNEDEvent to capture

imagination

PAIDThe impression

youwant to deliver

PAIDAmplifies

the coverage

Maybe shared

TRADITIONAL NEW

28

Digital-led earned campaigns need to aim for the stars, only the most compelling ideas will work

Source: Analysis of YouTube data and Link Database

Video views per week by creative strength

0

1000

2000

3000

5000

4000

2000

1000

3000

4000

5000

Low Average HighOnly the top 5% of video ads are likely to go truly viral. These ads are in the top 10% of our database on enjoyment, involvement and distinctiveness.

29

Word of Mouth has strong impact but low reach, so needs to be amplified by traditional media

Source: APAC Crossmedia database

AWARENESS PURCHASE INTENT

1.6

2.1

1.5

0.9

POSITIVE IMPACT

75%36%

LOW REACH

30 Source: Link database, new brand n=150 and established brand n=530

If an ad makes the brand seem really different the likelihood of a short-term and long-term sales response increases

New Brands Established Brands

0%10%20%30%40%50%60%70%80%90%

LowMediumHigh

Like

lihoo

d of

sal

es

incr

ease

31

Five ingredients of a successful comms planThe five ingredients of a successful communications plan

Start with the task the advertising needs to achieve and align with what makes the brand meaningfully different (or has the potential to do so)

TASK What needs to change in order to increase sales and profit? Whose behavior needs to change?

INSIGHT What will motivate your audience to change their behaviour?

CREATIVE PLATFORMWill the creative idea resonate strongly enough with the target audience? Does it fit with what your brand stands for? Can your brand own it?

CHANNEL CHOICE In addition to reach, what does each channel need to do in order to accomplish the task?

CREATIVE EXECUTIONDoes each execution work to achieve its goal within the channel format and expected consumer mindset?

33

So we need to go from…

to this.this…

34

Because getting it right unlocks tremendous value, as this example from KSA demonstrates with synergies multiplying brand impact 200%

Source: CrossMedia – non-FMCG, KSA

13%

13%

30%

44%

Online

TV

OOH

1%4%

11%

15%

70%

OnlinePrintTV

Synergies

OOH

Print

Share of Budget Share of Brand Impact

Google’s Voice Search Campaign, Media Lion Grand Prix 2012

TASK Get more people to use Google’s voice search

INSIGHT Making the hyper-relevance of voice search more meaningful and salient to people will drive usage

CREATIVE PLATFORM Use phonetic spelling of most interesting local landmarks to focus attention on voice search

CHANNEL CHOICE Leverage the location specific nature of outdoor

CREATIVE EXECUTION Use context to drive the specific creative content

36

Google’s Voice Search Campaign, Media Lion Grand Prix 2012

Gillette Mach 3 W.A.L.S. campaign in India

TASK Double market share for Mach 3 by encouraging young men to shave more often.

INSIGHTWho do men listen to more than celebrities? Answer: Women. 77% of Indian women say they prefer a clean-shaven look.

CREATIVE PLATFORM Create a grass roots movement to change the idea that stubble is cool.

CHANNEL CHOICEFacebook + Media, bloggers and celebrities tipped off. TV, price promotion and POS along with special events capitalizes on publicity.

CREATIVE EXECUTION Facebook page. TV execution focused on price promotion to draw people to stores.

38

“Women Against Lazy Stubble” (W.A.L.S.)

Source: BrandZ India 201339

$3.25M free media coverage, improved brand equity and tripled market share for Mach 3 and haloed up to Gillette overall

Meaningful 198

Different 181

Salient 193

Power29.2

Park Avenue

VI-John

Axe

Dettol

Gillette

0% 10% 20% 30% 40% 50% 60% 70%

Setting the trends

40

TakeawaysApplying the thinking to your business

Consumer insight is fundamental to success

TASK What is the best opportunity to grow sales?

INSIGHT What will motivate people to buy?

CREATIVE PLATFORM Which creative idea will fit with the brand, resonate with consumers and differentiate?

CHANNEL CHOICE How will you best reach consumers at each point on the path to purchase?

CREATIVE EXECUTION Will your key executions work to achieve their task?

42

Any questions?Chief Global AnalystNigel Hollis

nigel.hollis@millwardbrown.com+1 203 434 4868

Country Manager Saudi Arabia

Piotr Chodakowski

piotr.chodakowski@millwardbrown.com+966 12 606 7248