ROI—A WAY OF LIFE IN MEDIA

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PRESENTATION SPEAKERS

Kate SirkinEVP, Global Research Director

Starcom MediaVest Group

Aaron FettersDirector, Insights and Analytics

Solutions CenterThe Kellogg Company

Howard ShimmelChief Research Officer

Turner Broadcasting System, Inc.

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WHAT’S ON THE AGENDA?

• The Media ROI Framework• The Media Company Perspective

• The Agency Experience—Driving the Eco-System

• The Advertiser Strategy

• Table Talk & Panel Discussion

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THE ROI LANDSCAPEBehavioral impact

Smarter allocation, more accountability

Marketing MixA holistic view

Single SourceBuyer graphics & campaign-level ROI

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SINGLE SOURCE ANALYTICS—CLOSING THE LOOPComplementary to other planning and measurement tools

Plan

Buy/Optimize

MeasureForm ObjectivesMeasure ROI

Define Audience

Optimize PlansMeasure Effectiveness

RESEARCH INNOVATIONS

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MEDIA AUDIENCE DATA

DigitalDemographic. Behavioral. Geographical.

TVDemo-based since 1960!

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NEW DATA POWERS ADVANCED MEDIA TARGETING

Nielsen Buyer Insights

Nielsen Catalina Solutions

Nielsen MotorStats

Nielsen Mobile Vector

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FIRST ADVANCED MEDIA TARGETING PRODUCT

targetingNOW

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A NEW WAY TO PLAN MEDIA

Plan still produced within current sales rotation guidelines

Demo delivery still guaranteed as it always was

Optimized within these parameters to maximize delivery

of your marketing target (ex. category buyer)

Same mix Same demo guarantee Optimized against your target

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WE SELL NETWORKS BASED ON SELLING TITLES

Early Morning

Prime Dramas

Series: 3–5p

Late

Series: 5–7p

Moonlight Theater

Prime

Primetime In The Daytime

Weekend

Late 12–2a

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EACH SELLING TITLE CONTAINS RANGE OF PROGRAMS AND TIME PERIODS

Program / Time Period1 2 3 4 5 6 7 8

Early Morning Prime Dramas Series: 3–5p Late Series: 5–7p Moonlight Theater Prime Primetime In The Daytime Weekend Late 12–2a

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TODAY A SCHEDULE WITH THREE UNITS IN EACH SELLING TITLE MIGHT LOOK LIKE THIS

Program / Time Period1 2 3 4 5 6 7 8

Early Morning x xx Prime Dramas xx x Series: 3–5p xxxLate x x x Series: 5–7p x x x Moonlight Theater x x x Prime x x xPrimetime In The Daytime x x x Weekend x x xLate 12–2a x x x

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BUT WHAT IF WE OVERLAID NEW DATA ABOUT THE PROBABILITY OF THE AUDIENCE BEING A CATEGORY BUYER?

Strong Concentration of Cat Buyers

Program / Time Period1 2 3 4 5 6 7 8

Early Morning x xx Prime Dramas xx x Series: 3–5p xxxLate x x x Series: 5–7p x x x Moonlight Theater x x x Prime x x xPrimetime In The Daytime x x x Weekend x x xLate 12–2a x x x

Average Concentration of Cat Buyers

Low Concentration of Cat Buyers

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15Source: Nielsen Buyer Insights. 3Q13 to date (7/1/13–8/25/13) viewing to TBS/TNT; 1 min qualifier. Purchasing via NBI database for 52 weeks ending 3/31/13. Includes credit & debit transactions from NBI database only. Mass Merchandiser category (Kmart, Target, Wal-Mart). Excludes Movies, Marathons, Specials, Sporting Events, Sports Programming. Includes repeats.

EXAMPLE: MASS MERCHANDISER SHOPPERS TN

Early Morning (576)Law & Order (604)Angel (551)

Late: 12–3a (587)CSI: New York (581)Perception (683)Cold Case (546)The Mentalist (630)Franklin & Bash (504)The Hero (593)Falling Skies (480)

Primetime In Daytime (588)Bones (614)Major Crimes (474)Charmed (617)Supernatural (555)Smallville (545)

Late: 12–2a (568)Perception (637)Cold Case (549)The Mentalist (622)The Hero (540)Falling Skies (388)CSI: New York (581)Franklin & Bash (409)

Series: 3–5p (599)Bones (620)Supernatural (505)Castle (601)Major Crimes (447)

Prime (648)Castle (610)Perception (582)The Mentalist (554)Major Crimes (719)Franklin & Bash (572)Rizzoli & Isles (833)Falling Skies (600)

Series: 5–7p (559)Castle (629)Law & Order (557)The Mentalist (466)Bones (503)Supernatural (486)

Weekend (575)Perception (549)Rizzoli & Isles (637)Franklin & Bash (535)Falling Skies (530)Major Crimes (619)Law & Order (522)The Hero (607)

(#) = VPVH

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…AND THEN WE USED THIS DATA TO PUT YOUR ADVERTISER SPOTS IN THE OPTIMAL PROGRAMS/TIMES

Strong Concentration of Cat Buyers

Program / Time Period1 2 3 4 5 6 7 8

Early Morning x xx Prime Dramas xx x Series: 3–5p xxxLate xxx Series: 5–7p xxx Moonlight Theater xxx Prime xxx Primetime In The Daytime xxx Weekend x x x Late 12–2a x x x

Average Concentration of Cat Buyers

Low Concentration of Cat Buyers

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WHY ARE WE EXCITED?

• Targeting works• Solutions delivers materially

more of an advertiser’s target

Great reaction from the market in Upfront

Opportunity to drive greater yield from TV

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TARGETING WORKS!

15.0%

18.1%

UnexposedExposed

P18–49

Auto TBS Campaign

+21%

87% 93%

29.5%

46.9%

+59%

ExposedUnexposed

Heavy Auto Searchers

Significance

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Original

Optimized

GRPs Reach

Demo Marketing Target

50.4 18.050.4 17.8

GRPs Reach

59.1 24.794.3 28.1

Original

Optimized

13.6 9.213.5 8.7

11.2 6.918.2 9.7

Original

Optimized

15.1 9.615.1 9.6

16.4 9.918.5 11.1

Original

Optimized

7.8 4.47.9 4.9

6.3 5.09.8 6.4

+59%

+63%

+13%

+56%

Beer Brand

Domestic Auto Brand

Paper Towel Brand

Toothpaste Brand

MORE OF YOUR TARGET

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+33%Average lift in target grps

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Disclaimer

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CHALLENGES

Predictability and Stability

Scalablity Target Transparency

Systems/Data Access

Cross-Platform Application

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FUTURE PRODUCTS

Use to inform allocation across selling rotations

Use to inform allocation across Turner TV and digital assets

BUYER-BASED DATA HELPING SMG DELIVER MORE PRECISION FOR ADVERTISERS

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THE EVOLUTION OF THE TV/VIDEO MARKETPLACE

Precision video for all screens (convergence)

Data-DrivenLinear

1st Screen Addressability

1st Screen Connected

1st Screen Active Amplification

1st Screen Passive Amplification

Multi-Screen ‘Digital’ Video

Buying TV smarter and more precisely (Social Data, Purchase Data: Tardiis 2.0)

‘Addressable TV’Audience or data-driven TV leveraging STB data

From TV & Digital Video to

Connected 1st screen TV with over the top (OTT) video service

Digital distribution of video—premium, mid and long tail on PC, mobile and tablet

‘Social TV’: Use 1st screen to drive active 2nd screen participation

‘TV Syncing’: Passive approach to syncing TV ad on all other screens

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KEY THEMES

Incorporate more data to drive client value; maximize budget efficacy

Maximize efficiency using best data that feeds brand strategy and optimization agility

Demonstrate accountability—actual sales impact is typically the best way

Real-time, seamless and continuous learning—integrated workflow

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PURCHASER DATASETS—WHICH WILL DRIVE MOST IMPACT IN PLANNING

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HOW DO WE USE IT?

• TV planning via “single source” data

• ROI measurement for TV, print, digital and mobile

• Purchaser-based targeting in digital, mobile and addressable TV

• Targeting Accuracy Tests• Multi Touch Attribution (MTA)

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TV BUYING EVOLUTION WITH SINGLE SOURCE

• Optimized CPMs based on audience value uncovered by buyer-graphics• Much better aligned with client objectives• Allocated within corporate inventory to

maximize portfolio effect

• Larger buys for optimized CPMs• Age/gender

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PLANNING/MEASUREMENT PROCESS

1

5

Define business challenge and

objectives

Develop targets based on strategic

definition

Consider data options and

requirements

Determine communication goals, flights, and budgets

2 3

Forecast corporate needs translated to demo targets

Purchase inventory

Allocate versus buyer-based

brand targets

Design measurement plan

4

5 6 7 8

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ALLOCATING FOR MAXIMUM EFFICACY

Real-time/Right-time• Optimized to consumer response

and marketplace opportunities• Creative allocated to drive buy rate

or penetration

• Point in time (quarterly/upfronts)• Total campaign level

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BRINGING IT ALL TOGETHER—CLOSING THE LOOPIntegrated workflow that works within and outside

Plan

Buy/Optimize

MeasureForm ObjectivesMeasure ROI

Define Audience

Optimize PlansMeasure Effectiveness

THE KELLOGG’S OPPORTUNITY FROM BUYER GRAPHICS

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ENABLING A DATA-DRIVEN MARKETING ECOSYSTEM

Data-Based Decisioning

Data-Driven Buying

Data Analytics & Optimization

Effectiveness Evaluation

Data-Driven Ecosystem

3rd Party

CRMOther 1st

Party

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DOES A BUYER-BASED APPROACH REALLY SELL MORE IN-MARKET AND DRIVE ROI? CASE STUDY

• Develop the financial estimate for TV-driven sales • Validate the estimate in-market• Expand the learnings for multiple brands and for

future periods• Continuously optimize, based on key drivers of ad

response

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Demo Target (F25–54)

THE OPPORTUNITY FOR A BUYER GRAPHIC APPROACH

14% of reach to F25-54 goes to households who do not buy in the category

RTE CerealCategory Buyers

51% of Category Buyers are not reached by the demographic target

Missed Category Opportunity

52% of Kellogg’s Cereal Brand Buyers are not reached by the demographic target

Kellogg’s Cereal Brand

BuyersMissed Brand Opportunity

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THE “SIZE OF THE PRIZE” COULD BE SIGNIFICANT FOR KELLOGG’S

$30 MM–$64MM

$2 MM–$4 MMEst. Incremental Retail Sales/Year*

* Incremental retail sales opportunity derived from Kellogg’s Size Of Prize Deliverable (August 2013)

Kellogg’s Cereal Brand

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KELLOGG’S CEREAL BRAND

2012

Series10

0.02

0.04

0.06

0.08

0.1

0.12

0.0840.092

+10%

2013

Series10

0.02

0.04

0.06

0.08

0.1

0.12

0.0950.109

+14%

TV campaign drove incremental sales lift 10% in 2012 and 14% in 2013

Average volume/household

■ Unexposed HH■ Exposed HH

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2013

Series1250

255

260

265

270

275

280

285

290

295

300

280

296

Series1250

255

260

265

270

275

280

285

290

295

300

283

270

2012

95INDEX

105INDEX

KELLOGG’S CEREAL BRANDTV Campaign Audience Delivery

Kellogg’s Cereal Brand BRPs increased by 10% in 2013 from 2012 while F25–54 GRPs remained constant

■ F25–54 GRP■ F25–54 Kellogg’s

Cereal Brand BRP

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$3.4MM814K

$1.77

ANNUALIZED RESULTS—THE 2013 TV CAMPAIGN GENERATED INCREMENTAL SALES, UNITS, ROAS

$5.2MM1,273K$2.19

2012 Campaign 2013 Campaign

incremental sales +52%

incremental units +56%

ROAs +24%

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CONCLUSIONYes, the buyer-based approach actually increased sales, units, ROI—more can be gained!

Develop the financial estimate for TV-driven sales

Validate the estimate in-market

Expand the learnings for multiple brands and/or for

future periods

Continuously optimize, based on key drivers of

ad response

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CLOSING THE LOOP—IT WORKS!

Plan

Buy/Optimize

MeasureForm ObjectivesMeasure ROI

Define Audience

Optimize PlansMeasure Effectiveness

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c360.cnf.io

Choose Your Session From the List

Click / Tap on Each Poll to Respond

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POLLING QUESTION

Now that you have seen real, large scale application of buyer-based solutions, is the marketplace ready to

go beyond age/gender?

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TABLE TALK QUESTIONS

What are some of the strengths / weaknesses of buyer-based thinking

in the media process?

What would it take to instill confidence in the broad marketplace

and drive adoption?