perspectives

2008-2009
Dear Friends of Millward Brown,
Writing this letter every year provides me with the opportunity to reflect on the past 12
months and begin to think about the coming year. And what a year it has been! For mar-
keters, even the more mature among us, we have not seen or experienced a year like it
before (and likely arent eager to experience one again). But for all of the economic pain
and business tumult, I see a bit of a silver lining in what weve been through. Challenging
times have forced us to stretch our thinking, exercise our creativity, and reinvent like never
before. Those marketers who have embraced the challenges will inevitably emerge from
the economic downturn stronger, while those awaiting the return to normalcy may be in
for a very long wait indeed!
At Millward Brown, weve been thinking a lot about how to help you, our clients, do more
with less. Whether thats driving high impact advertising, looking at how your brands
fare at the point of purchase, or helping you reallocate your media for greater returns,
weve tried to focus relentlessly on marketing efficiency and effectiveness. Youll see that
reflected in this, our third volume of Perspectives. Our Points of View series provides our
editorial take on some of the hottest marketing topics of the day, like mobile marketing,
social media, and effective targeting. Weve also responded to your continuing appetite
for digital learning with a new series on digital marketing effectiveness from our team
at Dynamic Logic. Knowledge Points are data-driven analyses that come from our vast
storehouse of survey information. Finally, weve reprinted some of the published articles
by Millward Brown authors that you might have missed.
Though we dont anticipate a complete end to the economic turmoil in the coming
year, were still optimists. Together with you, weve learned a great deal in the past year
and that knowledge will serve us all well for the future. We look forward to helping you
navigate the new normal of the marketing world. If you have thoughts on how we can
better serve you, please do contact me.
With best regards,
Eileen A. Campbell, CEO, Millward Brown
eileen.campbell@millwardbrown.com
F R O M T H E C E O
P O I N T S O F V I E W
Marketing Effectiveness:
Beyond the Short Term ..................................... 1
Whats in Store for Store Brands .................5
Make Friends, Dont Pitch Them ..................9
Getting Serious About 360 .......................... 13
Direct-to-Consumer
Advertising Works .............................................. 17
Whose Brand is it Anyway? ........................... 21
Targeting Online Ads:
Aim for the Bulls-eye or Focus
on Hitting the Target? ..................................... 25
Rules of Engagement .................................... .29
Culture Clash: Globalization Does
Not Imply Homogenization ...........................33
Marketing During Recession:
Planning on Recovery ......................................37
Whats Next for Mobile? ................................. 41
K N O W L E D G E P O I N T S
What Are the Most Successful
Routes for Advertising to Children? .......... 46
How to Make the Best Use of
Music in an Ad...................................................... 50
Targeting the Over-50s Market ................. 54
Using Consumer Sales Promotions to
Benefit the Brand .............................................. 58
What Are the Pitfalls of Using Sexual
Imagery in Advertising? ................................. 60
Is There Value in Comparative
Advertising? .......................................................... 64
Using Web Sites as Part of the
Marketing Mix .......................................................67
What Does Cinema Advertising
Add to a Campaign? .........................................71
How Best to Market to
Business Professionals? ..................................74
What Role Does the Brand Have
in Business-to-Business Markets? ............77
How to Change a Brands
Name Successfully ............................................81
D I G I T A L I N S I G H T S
Beyond the Click

: Less Intrusive and

New Online Ad Formats Perceived
Most Positively by Consumers .................... 85
Beyond the Click: First Look at
Mobile Performance ........................................87
Beyond the Click: Research Trends
Suggest Web Users Are Growing More
Accepting of Over-Content Ads ................ 89
MarketNorms

Enabling You to
Determine the Most Cost-Effective
Campaign Elements to Maximize
Your Brand Impact. ...........................................91
Live From the WebSampling
Done Right ............................................................ 94
M A R K E T F O C U S
Vietnam ................................................................... 98
Switzerland ..........................................................102
Chile ....................................................................... 106
Honduras ...............................................................110
Japan ....................................................................... 114
Sweden ...................................................................118
table of contents
Singapore ............................................................. 122
Romania ................................................................126
Nigeria ....................................................................130
Kenya ...................................................................... 134
P U B L I S H E D A R T I C L E S
Argentina How Media Clutter Has
Impacted Advertising Effectiveness .........139
Gabriela Cs and Julia Gonzlez Treglia
Customer Focus ................................................. 145
Ove Haxthausen
Stuck in the Crisis A Japanese-
Style Crisis in the Making? ............................ 151
Antonio Imedio and Miguel ngel Martn
How Should Global
Brands Communicate in
Recessionary Times? ..................................... 155
Nigel Hollis
Chinese Consumer Attitudes
in the Downturn .................................................158
Peter Walshe
Different Reactions to a Crisis .....................162
Rafa Garrido
Filling in the Mobile
Measurement Gaps ......................................... 164
Jennifer Okula
Reassuring Brands Online
Ads Really Do Have an Impact
on Consumers. .................................................... 167
Christina Goodman
Global Research Needs to Be
Overlaid With Cultural Tastes.......................169
Nigel Hollis
Firms That Build Brand Value
Will Be Recession Survivors ......................... 175
Joanna Seddon
Finding the Best Length
for Online Video Needs
Further Research .............................................. 180
Christina Goodman
Who Are Our Children, Really? ..................182
Petra Pr uov
Maximising Media Synergy for
Cost-Effective Brand Building .....................185
Sue Elms and James Galpin
10 Ways to Ensure an
Actionable Segmentation..............................192
Alison Gore, Amanda Herbert, and Cathy Swift
Global Brands and Local Culture ............. 198
Nigel Hollis
How Rich-Media Video Technology
Boosts Branding Goals .................................. 203
Leah Spalding, Sally Cole, and Amy Fayer
Users Resistance to Intrusive
Ads May Be Dwindling as
They Surf More ................................................... 214
Christina Goodman
A C K N O W L E D G M E N T S
iv
points of
view
1
M I L L W A R D B R O W N S P O V
J u n e 2 0 0 8
Marketing
Effectiveness:
Beyond the
Short Term
While the results of
marketing investments
are most readily mea-
sured in the short term,
marketings benefcial
effects often extend well
beyond the initial weeks
or months following a
particular campaign or
activity. Therefore, mar-
keters who have a clear
idea of how their activi-
ties will work in both the
short and the long term
are able to balance their
immediate and long-
term objectives in their
brand management
decisions.
As I discussed in my previous POV, Marketing Effectiveness: Its More Than
Just ROI, there is more to marketing effectiveness than what can be readily
expressed in terms of return on investment. There is also more to marketing
effectiveness than what can be observed and measured in the short term.
But while marketers recognize the value that can be realized over the long
term, they are often uncertain as to how to achieve it. Compared to short-term
outcomes, long-term effects are harder to plan for, in part because they are
harder to defne and measure precisely.
The need to demonstrate marketing effectiveness in the short term is a given.
While this need is felt most acutely by marketers at publicly owned companies
that must report quarterly earnings, marketers at privately held companies are
also subject to pressure for proof of return on investment. And it is not surpris-
ing that businesspeople look for a quick payback. Investments are made on
a continuing basis, and in deciding how much to invest for the next period,
its helpful to know how recent activities have performed. For example, did a
recent campaign lift sales suffciently to generate incremental proft over and
beyond the cost of the campaign?
Most marketers, however, also recognize that there is more to marketing than
incremental short-term payback. They know that todays marketing investments
will yield something beyond todays immediate response. They know that their
brands current market positions have been built over years, perhaps even
decades, and that in their brands performance today they are observing the
legacy of previous marketing investments for example, in todays loyal buy-
ers, who were once new customers. The Millward Brown Optimor BrandZ Top
100 Most Powerful Brands Ranking testifes to the value that is attributed to
brands by the fnancial markets. Figure 1 shows the performance over time of
the companies owning the brands in the BrandZ Top 100 versus the S&P 500.
Gordon Wyner
Executive Vice President,
North American Strategy
gordon.wyner@us.millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
$1, 000 i nvested = $1,148 | $1, 030
Figure 1 BRANDZ Portfolio Performance vs S&P 500
+14. 8%
+3. 0%
-10%
0%
Dec 06 Feb 07 Apr 07 Jun 07 Aug 07 Oct 07 Dec 07 Feb 08 Apr 08
10%
20%
30%
40%
50%
BRANDZ Top 100 Port fol i o
S&P 500
Apr 06 Jun 06 Aug 06 Oct 06
2
One approach that decision makers can adopt to
overcome these problems is to identify measurable
proxies for some of the future effects of marketing
and then track these proxies on an ongoing basis. This
has proven especially useful for brand measurement.
Decisions can be based on the movement observed in
these surrogate variables.
Among the various ways of looking at the future ben-
efts of marketing investments, two of the most useful
frameworks are brand and customer value. Each is
defned in terms of how assets that build future proft
streams are created.
Brand Assets
In terms of brand assets, research conducted by
Millward Brown across a wide range of product
categories has identifed a number of drivers of brand
equity that contribute to future in-market sales perfor-
mance. These drivers can be represented by the fve
levels of the BrandDynamics pyramid:
Presence (the extent of a brands presence in
the market)
Relevance (the extent to which an offering is
relevant and appealing to consumers)
Performance (fulfllment of basic functional promise)
Advantage (perceived advantages over competitors)
Bonding (a brands ability to generate loyal customers)
These dimensions can be measured reliably in consumer
surveys, reported at regular intervals, and used to
guide future brand planning. By periodically updating
the link between these metrics and actual fnancial
performance, brand stewards can help sustain conf-
dence that investments will eventually pay back in the
creation of brand asset value.
The BrandDynamics pyramid describes brand health
through the absolute size of each level, as well as the
percent conversion from presence through bonding.
Figure 2 shows how AdeS, a soy-based fruit drink in
Mexico, increased its market share as these measures
increased from 2005 to 2006.
So, if marketers know that a long-term consequence
of successful marketing is an increase in brand equity,
what activities should they pursue today to maintain
and increase their brands equity and leverage it in
their business? How can marketers better make
current investment decisions with an eye toward their
implications beyond the short term? I suggest that
they start by drawing on several core research approaches
to build a base for effective brand management.
Understanding Carry-Over Effects
Long-term marketing effectiveness often begins with
the notion of carry-over effects the degree to
which various activities not only generate sales in the
short term but also continue to have effects in the
long term. Many analytical techniques start with an
extensive historical series of data (i.e., two to three
years worth) in order to capture the long-term impact
of various marketing events.
Traditional historical analyses of long-
term sales effects dont reveal anything
about brand equity building or customer
retention.
This type of analysis can show the amounts and types
of marketing expenditures (e.g., media weight and mes-
sages) and the types of scheduling (e.g., at key seasonal
periods or in pulses) that have worked best over time
at generating sales. This knowledge can be invaluable
for strategic planning. But one limitation of traditional
historical analyses of long-term sales effects is that the
results are not always ready to apply in time for deci-
sion making. Sometimes investment decisions must be
made without the luxury of time to observe the unfold-
ing of long-term effects across multiple years of data.
Another problem with this type of analysis is that it
doesnt capture the other important ways in which
marketing works beyond producing immediate incre-
mental effects. It doesnt, for example, reveal anything
about brand equity building or customer retention.
3
as restaurant chains, beverages, foods, or personal
care, periodically reassess whether they are correctly
positioning all the brands. Are they addressing their
competitors in an optimal way? What about the open
spaces in the market? Current brand metrics indicate
whats important and enable decision makers to
anticipate the benefts of positioning changes.
McDonalds has introduced several such changes over
the last few years. In 2005, McDonalds launched the
Balanced Active Lifestyle framework, which offers
diverse menu choices, support for community programs,
and substantial nutritional information to address the
needs and well-being of customers. The Forever Young
redesign of restaurants that is presently underway is the
chains frst major infrastructure change in decades.
These kinds of strategic brand-level changes will take
time to implement and generate fnancial impact. How-
ever, they can be monitored and evaluated in the present
to see that they stay on track toward the intended goals.
Marketers know that in their brands
performance today they are observing the
legacy of previous marketing investments.
Customer Assets
For customer assets, some of the key metrics are the
elements of the customer-lifetime-value equation,
such as duration of customer life, number of products
purchased, and usage frequency. When combined
with acquisition and servicing costs and future revenue
projections, the net present value of the customer can
be estimated. For example, customer proftability in
a retail bank can be derived by determining for each
customer the amount of revenue generated (from
checking, savings, and credit accounts), the associ-
ated costs from the acquisition channel (direct mail
response, Internet, or branch), and the cost of ongoing
servicing (teller visits, call-center inquiries, and online
banking).
Typically, the relevant long-term measures can be de-
rived from this type of transaction data, along with some
primary research data to estimate category behavior for
Brand-Level Decisions to Enhance Future Value
Armed with surrogate measures of brand health,
brand managers can feel confdent about making
decisions to enhance the future value of their brands.
Many of these decisions may seem risky because, in
the short term, they will not produce tangible effects.
Investments in improving the brand experience of
customers often fall into this category. Consider the
time it takes to make infrastructure changes, such as
changing the physical environment at all restaurant
locations in a chain. Yet each time one of these
changes infuences a single customer on a particular
occasion, overall brand value increases, albeit in an
imperceptible way. With repeated successes over time
across the total customer base, noticeable shifts in the
brand asset value will result.
For example, Starbucks recently announced several
steps being taken to improve the customer experience
in its outlets. These changes include the elimination
of some non-coffee product lines and investment
in new coffee-making equipment that allows more
visual contact between baristas and customers. If, as
the companys management believes, these changes
lead to a better overall experience for each customer,
the companys fnancial performance should improve,
along with the long-term health of the brand.
Creating and modifying brand positioning is another
type of long-term brand decision making. Managers
who oversee large, complex brand portfolios, such
Bonding
Advantage
Performance
Relevance
Presence
2005 2006
7% 21%
12% 27%
22% 35%
27% 39%
37% 50%
Share of
Market
4.1 5.3
19% 42%
Growth in Brand Health and Market Share
AdeS in Mexico
4
Another approach to creating customer value is to focus
on servicing high-value customers with special offers
and treatments. The implicit assumption (which can be
verifed separately) is that it is more effcient to invest
in customer retention than in the acquisition of new
customers. The effectiveness of this retention approach
cant be seen immediately, but changes in metrics like
average duration of high-value customers can be moni-
tored to detect trends and directional changes in value.
Overall customer value for the company can also be
increased by improving the selection of customers
based on their expected value. Targeting can be based
on actual behavioral data or proxies for potential value,
such as survey measures of available share of wallet.
This approach goes beyond the application of broad
customer acquisition metrics (such as response to
an offer) or retention metrics (such as self-reported
satisfaction), which assume that any customer is
worth attracting.
Conclusion
In the frenzy to achieve immediate payback, marketing
decision makers risk omitting the future effects of
marketing investment from consideration. For ideas
on approaching long-range planning, they might take
a lesson from top managers at the worlds most suc-
cessful companies, who make long-range decisions on
a regular basis. When these leaders make decisions to
invest in the future, they lay out their vision and justify
the sacrifce of short-term income for long-term gain.
Likewise, marketers should learn to make the case for
an action by explaining both the short-term cost and
the long-term payoff. In order to more forcefully and
clearly make their case, marketers must refne and
improve the art and science of decision making for
the future.
To read more about long-term marketing
effectiveness, please visit www.mb-blog.com.
share of wallet calculations. Importantly, these measures
can be used to look at individual customers or segments
to tailor marketing treatments. For example, branch
personnel can be armed with customer value metrics
in real time during a visit, along with suggested next
logical product offers that will ft the customers
profle and create value for the bank.
A limitation of these measures is that they take a long
time to observe. For this reason, we sometimes turn to
proxy variables that can be measured in the present to
estimate some aspects of long-term customer value.
Such measures might include reported customer
satisfaction, willingness to recommend the brand, and
intention to continue as a customer. However, it must
be noted that these measures, while useful, dont pro-
vide information about the cost to acquire or service
a customer. Thus they cannot serve as true proxies for
customer proftability.
By periodically updating the link be-
tween brand health metrics and actual
fnancial performance, brand stewards
can help sustain confdence that invest-
ments will eventually pay back in the
creation of brand asset value.
Customer-Level Decisions to Enhance Future Value
Customer management initiatives that are intended to
increase value by lengthening the customer lifetime or
increasing the number of products sold per customer
often cannot be proven to work in the short term. How-
ever, a growing body of industry research, summarized
by Richard Staelin of Duke University, demonstrates the
positive proft impact of these drivers. These generic
fndings can be periodically validated within the specifc
company to increase decision-maker confdence.
The customer loyalty program is one approach to
increasing duration. The intent is to tie a customers
accumulation of benefts to increased time with the
company. When properly designed, these programs
increase customer asset value by creating conditions that
increase the likelihood of future (not present) purchases.
1
Richard Staelin, Creating Customer and Company Value through CRM, (presentation, MSI Conference, Santa
Monica, CA, March 1-3, 2006)
5
M I L L W A R D B R O W N S P O V
J u l y 2 0 0 8
Whats in
Store for
Store Brands
Store brands, also
known as private labels,
are mainstream in many
markets and becoming
more so, particularly
in developing markets.
As such they constitute
legitimate threats to
established brands.
As retailers update
store brand packaging
and roll out premium
lines of private labels,
shoppers seem increas-
ingly willing to try these
products. How can the
makers of major con-
sumer packaged goods
brands defend their
market share in the
face of this
phenomenon?
In a trend that transcends categories, countries and retail environments,
brands are under attack from private label products. According to Nielsen,
private label penetration is estimated to be growing on a global basis by 5
percent per year, while the growth rate for manufacturers brands is just 2
percent. Is it the value proposition alone that powers the growth of private
labels, or are there other factors underlying the trend?
A private label also known as a store brand, or a shops own brand in
the United Kingdom is one carried exclusively by a single retailer. For the
purposes of this POV, I am referring specifcally to store brands that compete
with manufacturers brands on retail shelves, as opposed to brands sold in
stores that feature retailer brands exclusively (such as Gap, Victorias Secret,
Aldi, and IKEA).
Store brands may carry the stores name (e.g., Kroger or Sainsburys) or a
name unique to the retailer (e.g., Kirkland at Costco, or No7 at Boots). But
even in one individual store, the situation on the shelf can be quite complex.
A shopper may face multiple tiers of private labels: generics offered at sub-
stantially lower prices than brands; imitation brands designed to emulate
the quality of brands at a reduced price; and premium offerings at price parity
or slightly above brand pricing. At retailers such as Tesco or Royal Ahold in
Europe and the United States, there are organic and fair trade lines of
products as well.
Private label products generate anything from 1 percent of All Commodity
Volume (ACV) in Mexico to close to 50 percent in Switzerland (AC Nielsen,
2005). In Germany and the United Kingdom, private labels account for almost
one-third of the value of goods sold. The United States has more room to
grow, with private labels accounting for about 17 percent of goods sold and
a strong growth rate of 7 percent. In emerging markets, sales of private label
products are growing at about 10 percent per year, which is twice the overall
global rate.
For many years, manufacturers have focused their
marketing activities on the consumer to the detriment
of the shopper.
Philip Herr
Senior Vice President,
Client Service Group Head
Millward Brown North America
philip.herr@us.millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
6
label products has improved considerably.) Brand
marketers no longer have immediate and exclusive
access to innovation. Retailers particularly Wal-Mart
have been instrumental in building supply chains
and sourcing, and their access to shoppers has helped
them develop new ideas and products.
Our internal data shows an erosion of loyalty to brands
that benefts retailers. As trust for the banner over
the door increases at the expense of trust for brands
on the shelf, retailers have more opportunity to
successfully launch brands under their own banners
with minimal marketing investment.
Retailers also beneft from the trend toward disinter-
mediation. As media have fragmented, it has become
harder to generate mass communication on the scale
that is typically used to launch brands. Wal-Mart
actually generates more traffc on a weekly basis
than the TV networks. This loss of mass-marketing
opportunity favors the emergence of more narrowly
targeted products. Retailers, because of their close
relationships with shoppers, can take advantage of this
and target specifc lines to match local needs.
The shopper
The people doing the purchasing, as well as those
consuming the products, have been quite happy to try
private label offers. There are numerous reasons for
this, with the most obvious one related to economics.
Generally, during a recession or a period of escalating
prices (like the one we are currently experiencing),
consumers are more willing to try private label
products. While many will return to traditionally
branded products when the economy turns around,
some will stay with private labels, thus driving up the
baseline level for those products.
Sometimes ignorance plays a role in the adoption of
store brands. In many instances, shoppers are not even
aware that the product they purchased is a private
label. This is true in apparel and durables and in many
cases in grocery and personal care as well. Retailers
typically emulate the packaging of the leading brand
to signal (or confuse?) the shopper. Drug chains
What Drives Private Label Penetration?
Why are private label products enjoying sustained
growth while branded products tend to be languishing?
It is a complex situation, with contributions coming
from brand manufacturers, retailers, and shoppers,
accelerated by changes in economic conditions and
the media environment.
The manufacturer
For many years, manufacturers have focused their
marketing activities on the consumer to the
detriment of the shopper. By using continual price
promotion and reduced advertising, marketers
undermined loyalty to their brands. Meanwhile, the
retailer focused on peoples shopping behavior and
found ways to improve the experience of people
visiting their stores. Only recently have manufacturers
teamed up with retailers to create programs that focus
on the consumer in a shopping role.
The retailer
Retailers have a great deal to gain from growth in
private labels. Not only do they gain margin from
their own brands, but they can also differentiate them-
selves from the competition with unique offerings.
(And given the greater margin they have to play with,
it is not hard to understand why the quality of private
7
national ones) might not generate suffcient sales to
justify adding a store brand. In markets such as the
United Kingdom, where just four chains dominate the
grocery business, manufacturer brands face greater
risk than they do in less concentrated markets such
as the United States, or in developing markets such
as India.
Marketers must embrace retailers as
partners and collaborate on building
shopper programs that beneft all parties.
What Does This Mean for Marketers?
Those responsible for maintaining the health and
viability of brands can do several things to protect
those brands.
First, they can work to increase consumers perceived
risk of switching. This means changing the competitive
equation from price paid to value delivered. If brands
persist in excessive price promotion, consumer loyalty
to brands will continue to erode. Brands need to
innovate, differentiate and clearly communicate why
they are worth their price. In some cases they can also
provide reasons to question the quality of private label.
For instance, manufacturers of OTC and personal care
signal the parity of their over-the-counter (OTC) drug
offerings by calling out on the package that the active
ingredient is the same as the one in the name brand.
What Works Against Private Label Penetration?
For all the circumstances that seem to favor the
continued growth of private labels, other conditions
exist that may limit the upside of these brands, at least
in some categories. While the BrandZ database shows
that for categories like diapers and mineral water in
the United States, more than half of category users
would include a store brand in their competitive set,
private label baby foods or body washes are consid-
ered by, at most, just 10 percent of category users.
Nielsen global data shows private label value shares
ranging from 25 to 32 percent for products such as
refrigerated food and plastic wrap to 2 percent for
cosmetics and baby food.
Two factors seem to drive this situation: relative cost
and risk. In the case of baby food and cosmetics, the
relative risk seems high even if the price differential is
large. It is critical for shoppers to trust these products,
and brands have invested a great deal in developing
high levels of trust. On the other hand, the risk for
purchasing and using diapers and mineral water is low.
As long as a store brand diaper delivers acceptable
performance compared to a manufacturers brand, the
volumes consumed can make these products seem
like bargains even at a small price differential.
The degree of commoditization of the product is
also an important factor. The closer an item is to a
commodity, the greater the opportunity it has to be
matched or preempted by private labels. In large part
this is why refrigerated foods (e.g., dairy products and
meat) have large private label shares, while highly
sophisticated electronics products have virtually none
(though Wal-Mart does offer its own TV brand).
Economies of scale also play an important role.
A category needs to be relatively large in order to
support a private label offering. Economics generally
favor manufacturers who can amortize fxed and
developmental costs across the volume distributed
through dozens of doors, while grocery chains (even
8
Finally, marketers must embrace retailers as partners
and collaborate on building shopper programs that
beneft all parties by providing exciting offers for
shoppers, increased revenue for retailers, and
proftable growth for marketers.
Brands need to innovate, differentiate
and clearly communicate why they are
worth their price.
The Future of Brands and Private Labels
While the advance of private label brands is an
important development that the manufacturers of
brands cannot afford to ignore, it is not time to sound
the death knell for traditional brands. The success
of Lidl, Trader Joes and IKEA notwithstanding, the
vast majority of retailers still need brands to attract
consumers. And even though chains like Costco and
Carrefour have a sizable portion of their volume
in private label, they depend on brands to attract
customers and offer a viable range of choices.
Finally, when it comes to product innovation, the
edge remains with marketers: Can anyone envisage
a world without Coca-Cola, Sony, Toyota or Colgate?
To read more about private label brands, visit www.
mb-blog.com.
products can advertise that they are not suppliers
of private label goods (as the U.S. brand Tylenol has
done), thus casting doubt on private label quality while
reinforcing their superiority. By contrast, in categories
that are highly proliferated with brands and line exten-
sions, shoppers may perceive many sources of private
label manufacturing, and thus feel confdent about
considering an alternative to a brand. Furthermore,
excessive clutter in these categories may encourage
shoppers to shortcut the selection process by simply
seeking the best deal.
Next, manufacturers should strive to move up the
food chain. That is, they should process, refne, and
generally get as far as possible from the generic or
commodity status of the category. The more value you
add, the less likely you are to be emulated or undercut
on price. In the United States, Arm & Hammer baking
soda has successfully countered being a commodity
by developing fridge packs and air flters, allowing its
basic package to compete at pricing a little above that
of store brands.
Additionally, marketers can take a lesson from their
peers who have created exciting brand experiences in
retail. Examples such as the Apple stores, NIKETOWN,
and Hersheys Times Square in New York City show
how brands can take control of the consumer
experience and use it to enhance the way they are
perceived. In this way the consumer and shopper
experiences come together, both fully managed by
the brand marketer.
9
M I L L W A R D B R O W N S P O V
A u g u s t 2 0 0 8
Make Friends,
Dont Pitch
Them
Social networking
sites such as Facebook
and MySpace have
empowered people on
an unprecedented scale
to build and maintain
connections with others.
These sites allow users
to share personal news,
interests, and videos, as
well as to play games
and get to know each
other better. Can these
virtual neighborhoods
also be a space where
marketers can build and
maintain their brands?
Until a few years ago, the term social network was limited to the realm of
academia. Today online social networks such as Facebook, MySpace, Friendster,
Bebo, and Orkut offer people the chance to reach out to existing friends and
make new ones. What started as a youth-driven online phenomenon has now
fltered into all age groups, and users can access their communities using
mobile phones as well as computers. Now that social networks have logged
over a billion registered users, it is no wonder that marketers are interested in
the possibility of connecting with consumers through the social media. Adver-
tising on social networks is projected to grow faster than other online formats
in the coming year, but even so, advertisers are struggling to fnd good ways to
engage people in this evolving environment.
A Tough Nut to Crack
Why are social networks such a tough advertising nut to crack? The answer
is simple. Most marketers are not using social networks for the purpose for
which they were intended. People go to social networking sites to communicate
and interact with friends. They dont go to these sites to research potential
purchases or to shop. While a few marketers realize this, far too many dont,
and continue to reach out to people in their virtual communities using heavy-
handed mass-marketing techniques. The few successful advertisers also
recognize something else about social networks: They are places where
customer relationships can be built and strengthened, but not necessarily
started from scratch.
Of course, the users mindset is not the only barrier to successful brand
building using social media. While home page ad displays on MySpace are
reported to reach 40 million users on any given day, that apparent reach may
offer only a feeting impression as people log in to reach their personal pages
and those of their friends. Extend that concept beyond the big, well-known
sites to the plethora of smaller ones designed to appeal to specifc regions,
demographics or interests. Then add the fact that advertising models vary
across these sites. The result? Communication becomes a logistical
nightmare; what works on one site may not be feasible on another.
Given these facts, perhaps it is not surprising that many advertisers have
resorted to using display advertising on major sites. Not only is it a familiar tool,
but both Facebook and MySpace offer targeting on a number of factors
such as geography, demographics, and various categories related to
user interests. MySpace also offers HyperTargeting, which places
users in buckets based on their interests and delivers ads accord-
ingly. While Dynamic Logics AdReaction 2007 study found that
Nigel Hollis
Chief Global Analyst
Millward Brown
nigel.hollis@us.millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
10
Dont Push Pull
Pushing advertising to niche audiences in myriad new
Web communities does not make sense for most
brands, but the right pull strategy can work. Marketers
just need to realize that they are there to take part in
the conversation, not to dominate it.
Creating a custom-branded page or profle
assuming fans have not already created one for your
brand is a frst step to becoming sociable. Apple,
Victorias Secret, Starbucks and McDonalds all have
popular pages on Facebook with fans numbering in
the hundreds of thousands. Other brands attracting
large followings are Converse All Stars, Red Bull and
Marmite. A branded page allows a brand to interact
with fans in a way that is in tune with their mindset. A
brand can post its own comments, videos and surveys
and encourage fans to do so as well. The utility of a
branded page can go well beyond simple publicity.
Ernst & Young uses its Careers page on Facebook to
publicize the company and engage in conversations
with potential recruits.
Creating an interesting and attractive venue, however,
is just the frst step. The real challenge to becoming
a sociable brand is to keep the interaction going.
And that requires an ongoing investment. As in any
relationship, a brand needs to keep itself fresh and
occasionally share new ideas and content.
Widgets and applications have received a lot of
attention over the last couple of years. These particular
forms of content are discrete tools and games that
can be shared across sites or profle pages. In 2007,
Facebook was the frst network to open its platform
to third party developers, allowing a large number of
applications to be created for the site. Among todays
most popular Facebook applications are those that
allow people to interact with their friends, and to identify
themselves in terms of their taste in movies or books
or their similarity to a Harry Potter character. Not
only do applications provide a creative and fun way
of connecting and sharing information, but they also
contribute an important viral component. The addition
of an application is noted in users news feeds on
most people were ambivalent to the idea of advertising
on social network sites, a recent survey by Prospectiv
found that nearly 9 in 10 social network users found
few (or none) of the ads they saw to be interesting
or relevant.
The fault may not be with the targeting, however; the
advertising may be very relevant to those who see it.
Rather, the problem might be that the ads are served
up to people at an inappropriate time in an inappropri-
ate place. For example, even though my profle
suggests that I am interested in kayaking, that does
not mean I want to stop and check out a new boat
while Im in the middle of looking at photos of my
buddys latest paddling trip. In this respect, advertisers
may be reaching the right person with the right
message, but is it the right time?
People go to social networking sites to
communicate and interact with friends.
They dont go to these sites to research
potential purchases or to shop.
11
Developing a Successful Social Strategy
While it is clear that many mainstream brands are
now leaving the familiar territory of push advertising
to engage with their users more directly on social
networks, the results to date have been mixed. A
successful social strategy will address the following
fve requirements:
Understand the environment
People come to social networks to interact with their
friends and make new ones, not to buy products and
services. Therefore, a blatant sell is not welcome.
People may be willing to spend time with your brand
but only if they fnd value in doing so. Also, as mobile
becomes a bigger force in social media, those logging
on from their phones will have even less time for tradi-
tional advertising than those connected by computer.
Also consider which sites may be most appropriate
to your brand and communication strategy. Our
research suggests that for some brands, MySpace
is more suitable than Facebook while for others,
Facebook would be preferred. For many brands,
some other community on the long tail of networks
may be more appropriate still. And dont assume
everyone will fnd you through their friends; a
successful engagement usually requires a signifcant
media buy to drive traffc to the sponsored group page.
their profles; friends can then click to play or add it to
their profle. A few brands have managed to leverage
applications like these to successfully engage their
customer base.
In June 2008, ConAgra Foods launched its new
integrated campaign for the Slim Jim snack brand.
Broadcast media were used to drive traffc to an
immersive Web site that offered gaming and social
networking experiences on partner sites, including
MySpace and Facebook. On the latter, the brand used
the Superpoke! application, created by Slide, which
allows users to poke each other and show off their
spicy side.
Tablet Hotels took a different approach in creating the
Global Nomad Challenge, a quiz that asks people to
identify a new hotel each week from a photograph.
The prize is a free hotel stay. Players do not need to
rely on their experience alone but can identify the
hotel by clicking through a list of other hotels in the
same location and so learn more about the Tablet
roster in the process.
While most people enjoy playing with the various
applications on Facebook, they are pretty simple to
use and rarely engage attention for long. According to
Adonomics, a frm that tracks Facebook statistics, only
138 of the nearly 17,000 applications on Facebook
had more than 1 million installations. So, though they
have generated a lot of industry buzz, widgets and
applications are not the silver bullet of social media.
Some companies have opted for an approach that
provides more value and relevance to users. Visa, the
worlds largest credit card processor, has introduced
the Visa Small Business Network with the aim of
bringing together the half million or so companies
listed on Facebook by providing them with free tools
and a means to connect. In the Networks frst two
weeks, 10,000 companies joined, incentivized with
an offer of $100 worth of Facebook advertising.
12
Create unique content
If you want the word to spread beyond your initial
contact group, you must offer something of unique
value that people can share. This could be entertain-
ment, advice, or a useful functional tool. Most people
think of viral communication as an edgy and subversive
video or joke that gets passed from person to person,
but people also value information and advice. They
want to hear what others have to say, particularly if
the source is trusted because of shared interests or
experiences. Todays applications may not all represent
best practices; in the future, we expect social media
applications to be more immersive, engaging and
helpful. Do not assume that the frst iteration of an
application will be successful. Ask users for feedback
and plan upgrades to keep people interested.
Be authentic
People respect a brand that has an authentic voice.
They distrust brands that seem condescending or
duplicitous. Marketers who fnd ways to engage their
consumers openly and honestly will be the ones to
win big. A brand that offers applications of real utility
to customers or a distinct point of view on a social or
cultural issue stands a much higher chance of gener-
ating real engagement. Those who try to buy praise or
disguise their sales pitch as independent advice risk
not only diluting the credibility of their brand, but also
that of the medium.
Few brands inspire the sort of passion guaranteed to
attract a loyal and active following in social networks,
but those that do will fnd them fertile ground for
engagement. Others can use social networks as part
of an integrated campaign to offer people something
of value. In both cases, a liberal dose of traditional
advertising will help generate the critical mass that will
make your efforts worthwhile.
To read more about social media,
visit www.mb-blog.com.
Listen, learn and respond
A brand that seeks to engage people through social
media is entering into a conversation. The frst step
should be to listen to what people are already saying.
This may allow you to identify new opportunities for
engagement and steer clear of potential missteps.
What needs might your brand be able to fulfll that are
not already being met online? What sorts of things do
people want to hear about your brand? What might
they fnd interesting, enjoyable or valuable? Once
you enter the conversation, you must be prepared to
continue that involvement by reading comments and
responding quickly and appropriately.
Create a sense of community and keep it alive
Social networks online refect the communities built
around strong brands offine. Think of Harley Davidson
or Manchester United. People are driven to join by
the age-old desires for belonging and self-expression.
How can your brand bring people together to share
their passion? Nokia has created an opportunity for
ardent gamers to come together through its N-Gage
platform, which allows users to download games as
well as discuss them and blog about them. And dont
assume that online and offine are separate worlds.
The webkinz.com site draws more than 3.8 million
visitors a month. Kids who have bought one of the
plush toys can enter the secret code that comes with
it to play virtual games featuring the toys avatar.
A brand that seeks to engage people
through social media is entering into a
conversation. The frst step should be to
listen to what people are saying.
13
M I L L W A R D B R O W N S P O V
S e p t e m b e r 2 0 0 8
Getting
Serious
About 360
The promise of 360
communications is
signifcant but elusive.
While the economic
power of a great brand
idea projected through
a coherent voice across
channels seems to be
beyond debate, much
work remains if the
promise of 360
communications is to
be brought to fruition.
It is vital that marketers
grasp this nettle now
before the pace of
change turns the task
into one of gargantuan
proportions.
The 360 communications discipline has made a big promise: to deliver more
cost-effective brand building through integrating the activities of all communi-
cations disciplines into a single brand voice. However, while marketers believe
in the concept, they admit that the promise is not currently being delivered in
practice. A 2007 survey by the American Association of Advertising Agencies
reported that 54 percent of senior marketing executives believe that the
development of integrated marketing communication is very important. to
success. What is telling, however, is that only 21 percent of those surveyed said
that their organizations were delivering on this objective very well.
One of the biggest challenges impeding progress toward this goal is the need
to manage an increasing and morphing number of specialists. These experts
are necessary in todays increasingly complex world, but marketers need
considerably stronger mechanisms for getting the most value from them.
We believe that the promise of 360 communications will be realized most
fully by those brand companies that truly take ownership of the responsibility.
Companies that combine a comprehensive understanding of their consumers
with detailed information on their marketing investments will set themselves
up for a proftable future when they elect to oversee the critical task of 360
communications.
And they must do this now, before life gets any more complicated.
The Importance of 360 Communications Control
The central premise of 360 communications is that all brand contacts matter
and should be considered holistically when spending marketing money. Ergo,
no one set of contacts (e.g., advertising, direct, interactive, experiential, retail)
should be planned, developed, implemented or evaluated without reference
to the whole.
But standing between a brand marketer and a consumers holistic experience
of a brand is an increasingly broad array of specialists. As the number of sepa-
rate channels has grown, specialties within specialties have developed, such as
mobile communications and gaming within the realm of digital.
This is as it should be, because each area has its own complexities
that demand expert attention. Within media planning and buying,
for instance, a hot question is how much money should be taken
away from TV and invested in multimedia and digital opportunities.
Developing creative tailored to each specifc medium is of
Sue Elms
Executive Vice President,
Global Media Practice
Millward Brown
sue.elms@uk.millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
14
The central premise of 360 communications
is that all brand contacts matter and
should be considered holistically when
spending marketing money.
Who Should Own 360 Communications Management?
An August 2008 article in Marketing Week reported
that Procter & Gamble was exploring the idea of
appointing a lead agency for each of its major brands.
This lead agency would coordinate with other agencies
working on different marketing disciplines, including
PR, advertising, customer relations, and media buying.
To pilot this, Publicis Groupe created a consortium in
early 2007 to handle all activities for the Oral-B dental
hygiene brand.
We see this as a healthy step for P&G, but we believe
it should only be an interim measure. For a number of
reasons, we believe that the most potent solution would
be for brand companies to take the role of managing
360 communications in house. First, this central
function needs to be close to the brand yet impartial
in terms of communications technique. The ultimate
question with regard to communication is simply,
Whats the best way to reach people? Next, those who
manage 360 planning must serve as both evangelists
and policemen for the central communications idea,
and should not be distracted from these roles by the
complexities of working within one particular channel.
And those in charge of holistic brand communication
must have a thorough understanding of consumers
view of the brand. Clearly, someone within the brand
organization fulflls these requirements better than
any specialist.
Most importantly, a client-based coordinator will be
closest to the only source of fully allocated brand
investment in each type of activity, i.e., the total cost of
each activity including production, media, management,
agency fees, etc. Holistic 360 communication is about
creating a connection with the consumer using the
most cost-effective means possible; cost-effectiveness
cannot be evaluated without knowledge of the fully
allocated cost per connection. Lining up the cost of
each activity with evidence of return for the brand and
paramount importance since the quality of creative
execution can dramatically infuence effectiveness.
For example, the ad awareness impact of one audio-
visual ad on television can be 30 times greater than
another and indications are that the same factor
applies for online. Poster recognition scores vary
between zero and 40 percent and recall of online ads
can vary between zero and 20 percent, mostly based
on creative power.
Given that there is only so much budget to go around,
it is only natural that individual specialists will focus on
maximizing their part of the communications mix. So
who is looking across the big picture? And who is in
the best position to decide if the brand will be better
served by redistributing the media budget or address-
ing an issue through PR or customer communication?
Holistic planning and control are necessary to ensure
that all parties are working together, not operating
in silos.
Organizationally, the solution seems to be a central
360 communications management function where
the agendas of individual silos are suspended and the
central brand concern cost-effective brand building
comes frst.
15
accurately separate the infuence of individual con-
tacts, and you risk misreading reality and misdirecting
spends. This best practice should be put in place even
within silos, although this birds-eye view is most effec-
tive if centered within the client. There, it can encom-
pass all disciplines and force them to come together
as a team to drive effcient brand building.
Fortunately many of the tools for the job are already
in place. Market mix modeling links a wide range of
historic marketing activities directly to sales response;
it covers the more signifcant spends in the different
communication disciplines and delivers a bedrock of
marketing understanding and performance bench-
marks for the brand. In a shorter time scale, multivariate
analysis of well-designed tracking research effectively
disentangles multiple and more granular infuences on
attitudinal indicators of success. Our proprietary
CrossMedia approach separates the relative effects
of a wide range of managed communications while
also taking many other infuences into account. These
might include what people experience of the brand and
service, what they hear from other people and sources
about the brand, and what retail marketing activities
they encounter. Within each of these broad areas, it
looks at the infuence of key activities of interest to the
marketer, which might include customers experience
the business is not impossible, but it does demand
tenacity. That tenacity will produce signifcant rewards
if a new initiative is found to create a better return than
historic activities.
Jim Taylor from Mediaedge:cia concurs that while
initially responsibility for 360 communications
planning may sit with any one of the plethora of
specialists media agencies, communication inde-
pendents, ad agencies, integrated below-the-line
agencies, management consultants and even research
agencies ultimately brand companies will come to
own it. In an article about the future of communications
planning (Admap, May 2006), he said Clients will
start to want to pull control back from their agencies
and, for many, communications planning may prove
to be the mechanism for this.
We agree that communications planning is simply
too big and too central to the marketing function to
be delegated to an outsider. But the other reason that
clients should take over this role is that only the client
will have access to a real 360-degree view of the
consumer and the true communications investment.
Given that there is only so much budget
to go around, it is only natural that indi-
vidual specialists will focus on maximizing
their part of the communications mix.
So who is looking across the big picture?
360 Consumer Research Forces Integration
and Drives Effciencies
Successful 360 communications put the consumer
at the heart of all efforts, with a focus on obtaining a
cost-effective consumer response. It is the consumer
who is the real integrator of 360 communications,
and only consumers can tell us or show us how it is all
working that is, what all the different brand contacts
are making them feel, think and do. The only way to
understand this in a way that can inform business
decisions is through genuinely holistic insight and
evaluation. If you dont take all brand contacts into
account when you are evaluating activities, you cannot
16
Delivering the 360 Promise
Delivering the 360 promise in the future will require
a mix of structural discipline and research support.
Neither one alone will suffce.
Improved research techniques will make it possible to
understand consumers and evaluate their response
to communications across a wide range of infuences
spanning all communications disciplines. This research
will provide a supportive backbone to a 360 communi-
cations management function, giving the function the
knowledge and therefore the power to better manage
a wide range of communications specialists. Then there
will be a real chance of increasing marketing effciencies
and making integration happen.
The best place for this function is within the client.
Specialists who takes on the integration role might
overlook the most effective brand-building choices
because of the distractions they face in their own
specialties. As Jim Taylor predicts, Communication
planners in client organizations will be highly empow-
ered individuals who will genuinely transform brand
communications.
Do it Now
Our plea to our clients is, Do it now. Get central
control in place before the world gets even more
complex. Before long there will be more types of brand
content; more micro-messaging to tighter targets; more
micro-activation activities in more places; more ways to
search, compare, ask for information, or even play with
a brand; and more outlets to evangelize or complain.
Investing in the research and technologies needed to
incorporate everything as it exists now and as it begins
to appear moving forward is the only way to keep up
with the rapid pace of change.
To read more about 360 communications,
visit www.mb-blog.com.
of a new telephone banking service, the recent furor
about short-selling the fnancial markets, a new direct
mail campaign, or a new video campaign on the Inter-
net. The holistic emphasis is vital because an accurate
read on the effectiveness of managed communications
would have to take into consideration a possible nega-
tive infuence from recent public commentary as well
as any potential positive effect of a new customer
service initiative.
In the future, these models will need to incorporate
new data streams at different points: new engagement
indicators such as social comment, forward-pointing
sales indicators such as search, brand Web site inter-
actions such as booking a test drive, and price com-
parisons. The pace of research will speed up since all
this information comes from the Internet as a continuous
stream of live data.
It is the consumer who is the real
integrator of 360 communications,
and only consumers can tell us or show
us how it is all working that is, what all
the different brand contacts are making
them feel, think and do.
17
M I L L W A R D B R O W N S P O V
N o v e m b e r 2 0 0 8
Direct-To-
Consumer
Advertising
Works
Direct-to-consumer
(DTC) drug advertising
in the United States
has been a subject
of much controversy
since restrictions on
the practice were
eased in 1998. Critics
blame these ads for
contributing to rising
drug costs and unnec-
essary conficts between
patients and doctors,
and recently, a widely
publicized study has
reported that they are
not even effective at
promoting the products
they advertise. Are DTC
ads worth the
investment?
Pharmaceutical marketers, like their counterparts in other industries, are
under constant pressure to justify their sales and marketing budgets. But
in the United States, pharma marketers must also beat back accusations that
advertising for their products is ineffective. For example, a recent (September
2008) study by Harvard researchers, which suggested that direct-to-consumer
(DTC) ads do not improve drug sales, generated a great deal of coverage
and controversy.
Like many others, we disagree with the conclusions of that study. The research
used French Canadians as a control group, compared them to English-speaking
Canadians who were exposed to some American DTC spillover, and concluded,
based on retail prescription data for three drugs, that DTC advertising may
not work. Because the studys faws have been fully explored elsewhere, we
will simply reiterate the oft-stated observation that the conclusion cannot be
justifed by the research design. The research was conducted in a country with
a national healthcare system and different drug pricing and prescribing restric-
tions than the United States. The media spillover was not measured, and no
account was made for the quality of the creative or the number of people who
saw the advertising that were actually among the target audience for the drug.
Therefore, the study cannot possibly shed any light on the effectiveness of DTC
advertising in the United States.
While we will always be eager to review research that has unexpected or
controversial fndings, we feel that the question the Harvard study attempted
to address has already been defnitively answered through our own research
as well as that of other companies. The success of DTC advertising in the
United States, as measured against a number of outcomes, cannot be disputed.
In spite of having to clear additional hurdles beyond what is required of most
advertising, DTC ads have been shown to have a clear and measurable impact
on sales when studies are conducted using proper target audiences. Sound
research and pretesting, which take into account the ways in which DTC adver-
tising is both similar to and different from ads for other types of products, have
no doubt helped pharma marketers refne their approach to satisfying regula-
tory guidelines while building awareness and strong brand associations.
Does Any Advertising Really Work?
While pharmaceutical marketers do face special challenges, in fairness
to others we must say that marketers of all kinds of goods and
services sometimes confront skepticism about the effcacy of
advertising. An overview of results from sales modeling suggests
that only around 10 percent of ads pay back in the short term.
Angela Federici
Senior Vice President,
Managing Director MBNA Healthcare Practice
Millward Brown
angela.federici@us.millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
18
Figure 1: Awareness vs TRPs for New Pharma Brand
Establishing Associations
In addition to establishing awareness and some degree
of brand knowledge, advertising needs to help con-
sumers connect to the brand emotionally. Just as for
other types of brands, marketing communication for
pharmaceuticals needs to establish brand associations,
both to differentiate the brands from competitors and
to insulate them against generic products. U.S. brands
that have achieved notable success in this area include
Nexium (the healing purple pill) and Advair (treats the
two components of asthma). For drug brands that have
unique positioning, DTC ads can drive very strong asso-
ciation of the brand with the key message. An example
of this is shown in Figure 2.
Figure 2: Key Message Association
Therefore, marketers who know that the true value
of brand communication is revealed over time must
constantly remind and educate those in charge of
businesses of the importance of building brand equity
over the long term.
Brand-building is especially critical for prescription
drugs, as many of the brand purchase decisions
require a behavioral or emotional commitment that
may evolve over many months. Our research indicates
that purchase may lag advertising by up to a year for
preventative or maintenance therapies such as those
for contraception, hypertension, or cholesterol. For
brands that are not frst-line therapies (such as Enbrel
for rheumatoid arthritis, cited in the Harvard study),
advertising can help to build emotional connections
that can be accessed when such a therapy may
become necessary.
In spite of having to clear additional hurdles
beyond what is required of most advertising,
DTC ads have been shown to have a clear
and measurable impact on sales.
Building Awareness
The process of brand-building and the role of adver-
tising within that process are the same for prescrip-
tion drugs as they are for other types of products.
The basic requirement is to build awareness. Because
pharma marketers dont have access to traditional
point-of-purchase tactics such as shelf facings, end
caps, price promotion, and packaging, they must rely
on DTC advertising to reach consumers.
Our data clearly shows that DTC campaigns raise
awareness for new pharma brands. What else could
account for steep gains in awareness like that shown in
Figure 1? In fact, the correlation between advertising
and brand awareness is tighter and more direct in
pharma than in any other category. On average, three
months after a launch, brands with little or no prior
awareness achieve brand awareness levels of almost
50 percent among relevant targets.
Key
message
TRPs
100
80
60
40
20
0
250
0
M J J A S O N D J F M A M J J A S O N D J F M A M J J A
80
60
40
20
0
5
10
35
44
67
45
49
6
7
9
14
~6000 : 30 TRPs ~9700 : 30 TRPs
Total Brand
Total Ad
Awareness
Unaided Brand
Awareness
19
correlation between cumulative DTC spend and NRx is
0.96, signifcant at the 99 percent confdence level. It
is clearly apparent that advertising has accelerated the
uptake of the drug.
The feel good factor generated by DTC
ads is higher than in any categories except
household products and automobiles.
DTC Ads Have to Work Harder
DTC ads do face challenges above and beyond those
for consumer goods and durables. Not only do they
have to stand out from the other ads in a cluttered
commercial break, they must do this while conforming
to a litany of regulatory restrictions. The fact that DTC
ads have achieved such success in the face of these
challenges suggests that in the 10+ years since DTC
advertising frst appeared on television in the United
States, research has helped DTC marketers hone their
creative approach.
For example, in the early days of DTC advertising,
viewer interest used to wane during the mandatory
discussion of risks and side effects that is known
as fair balance. It didnt seem to matter where this
disclosure was placed in the ad; interest consistently
went down.
In our experience testing and tracking DTC ads, we
observed that the manner in which fair balance was
communicated had an effect on viewer engagement,
which in turn had an effect on the degree to which risk
and beneft information was recalled and understood.
As the fair balance information has become more
effectively integrated into the creative, DTC ads are
doing a much better job of maintaining viewer inter-
est regardless of the medication type, the condition
being treated, or the severity of the risks and side ef-
fects being conveyed. We see high levels of recall and
understanding of the risk information (80 percent and
92 percent, respectively) without a negative impact on
engagement, interest or persuasion.
Creating Emotional Affnity
The role of a patients emotional affnity to a brand
cannot be discounted. Not only does it insulate a brand
against generics and formulary coverage, but it can
also aid persistence and compliance among patients,
who are more likely to respond positively when a doctor
prescribes a drug with which they already feel familiar.
An analysis of our copy-testing database, which in-
cludes over 500 DTC ads, reveals that DTC advertising
generates strong positive emotions. On average, posi-
tive emotional connections are generated among 73
percent of the target viewers, a level equal to that of
advertising for food, beverages, cars, and household
products, and exceeding that of ads for telecoms or
fnancial services. The feel good factor generated by
DTC ads (a measure of the overall positive connection)
is higher than in any categories except household prod-
ucts and automobiles.
Awareness + Associations + Affnity = Increased
Rx Volume
The results of DTC marketing for treatments of symp-
tomatic lifestyle conditions, such as erectile dysfunc-
tion and restless leg syndrome, are usually readily
apparent. Figure 3 shows the contribution of DTC
advertising to new prescription volume (NRx) during
the launch of a drug for this type of condition. The
Key
message
TRPs
1000 -
800 -
600 -
400 -
200 -
0 -
- 20000
- 10000
- 0
Ad Stocks
Ad Stocks
Weeks
NRx
NRx
Figure 3: Contribution of Advertising to NRx
J F M A M J J A S O N D
20
education. A demonstration of how a drug works its
mode of action can be both attention-grabbing and
memorable. Executions that explain a disease and vali-
date a viewers symptoms can also be a powerful force
for growing awareness and establishing relevance. In
fact, DTC advertising can spark action through educa-
tion without even mentioning a brand name, though
in the United States the level of unbranded disease
advertising has been on the decline in recent years.
In countries such as Mexico, however, where branded
drug advertising is prohibited, pharmaceutical com-
panies have made effective use of ads that mention a
brands maker or that refer viewers to a Web site for
more information.
DTC Empowers Both Consumers and Marketers
While DTC advertising may be prohibited or restricted
in many places, the widespread availability of infor-
mation on the Internet has, for good or ill, forever
changed the balance of power between doctors and
consumers of healthcare. Consumers want more
knowledge and control, and they are exerting greater
infuence over their treatment plans. DTC ads are just
one of the information sources they have to draw on.
From the point of view of pharmaceutical market-
ers, DTC ads present the best opportunity to reach
consumers directly, establish the relevance of their
products, and build brand affnity. Therefore, these
marketers must continue to work to educate those
who manage their businesses on both the established
effectiveness of DTC advertising and the specifc roles
DTC advertising can play in building prescription vol-
ume over the longer term.
To read more about DTC marketing,
visit www.mb-blog.com.
These improvements could have come about simply
because viewers have become familiar with the format
of DTC ads and therefore expect the disclosures. But
we believe that they are a direct result of DTC ads
becoming more engaging in the past few years. In fact,
despite mandatory inclusion of risk information, DTC
ads are as enjoyable and engaging as ads for most
other product categories. DTC ads are also among the
most persuasive of any product category.
What Makes DTC Work?
An examination of our Millward Brown databases
(both copy-testing and tracking) makes it clear that
the most successful DTC campaigns share a number
of common elements. It also becomes apparent that
most of the basics of good advertising apply to the
DTC context. These include:
Creativity White coats and talking heads blend
into the canvas, while creative devices such as
the VESIcare pipe people, the Enablex balloons,
and Treximet people removing their heads lead
to strong memorability.
Brand icons Recognizable brand icons such
as the Imitrex monster and the Cialis tubs aid
recognition.
A compelling point of difference A unique and
ownable brand positioning helps to differentiate
a brand.
Controlled messaging Pharma ads are no differ-
ent than others; there is a limit to the number of
messages that can be succesfully integrated into
the ads.
Communication of the end beneft Rational
messages must be seeded, but must also then
ladder up to an emotional beneft.
In addition to these factors that are common to
successful ads in all categories, there are a few other
elements that are seen much more often in DTC
ads than in ads for other products. Topping the list is
21
M I L L W A R D B R O W N S P O V
J a n u a r y 2 0 0 9
Whose Brand
Is It Anyway?
You can pick your
brands and you can
pick your friends. But if
youre a marketer, can
you pick your brands
friends? Should you
even try?
As a brand manager,
your frst instinct may
be to protect your
brand from negative
infuences, but if youve
endowed your brand
with a solid set of values
and associations, some-
times your best bet may
be to just let go.
Its every parents worst nightmare that a child should fall in with a bad crowd.
Should the parents of brands the creators, managers, and marketers
share this worry? Can a brand be damaged by the company it keeps?
Conversely, can keeping good company enhance a brands reputation? If a
brand is embraced by a group that is younger, hipper, or richer than its original
target, is the status of that brand improved?
If the answer to any or all of these questions is yes, one key question remains:
Should marketers attempt to intervene in brands relationships with consumers
to maximize benefts and minimize ill effects? Is it even possible for them to do
this effectively without doing more harm than good in the process?
While there is no hard-and-fast answer, in many cases marketers should heed
that unfortunate new marketing mantra: Just let go. Assuming that they have
done their job which is to establish what the brand stands for and ensure
that the brand has forged a solid relationship with target consumers
marketers should stand back and stay out of the way as their brand encounters
the wider world.
Timberland: Hip-Hop Meets with Benign Neglect
Timberland is an excellent example of a brand encountering success among a
completely unexpected market segment. In creating the Timberland boot, which
was introduced in 1973, the company (then called the Abington Shoe Com-
pany) used their own innovative injection molding technique to produce a truly
waterproof leather boot for workmen and outdoorsmen. Sales of Timberland
footwear and outerwear had reached $200 million by the early 1990s when
suddenly the brand was adopted by inner-city youth and became a standard
component of hip-hop attire.
Timberland CEO Jeffrey Swartz chose not to change the brands strategy by
overtly recognizing its new urban fans. Timberland is being adopted by a
consumer that we didnt know existed relative to our target audience, he said
in a 1993 article in The New York Times. While doing nothing to disavow the
brands popularity among the group, he explained why he chose not to change
the brands course: If you hear that hip-hop kids are wearing Timberland
boots and women are wearing Timberland boots with sundresses . . . thats
coin in current dollars. But how in the world is that sustainable?
Keeping advertising focused on the brands traditional target, Swartz
openly expressed his intention to limit the availability of the brand.
We are making hip-hop come to our distribution, he said. Urban
consumers continued to fnd Timberland products, and the brand
continued to grow, achieving global sales of $1.6 billion in 2007.
Dede Fitch
Global Analyst
Millward Brown
dede.ftch@us.millwardbrown.com
www.millwardbrown.com
22
instead to build relationships at the most local level with
micro-sponsorships, such as a gift of $1,750 to sponsor
a bike polo match. Even these were handled with a light
touch that is, a very low profle for the sponsor.
Timberland acknowledged but did not approach their
young urban customers, while PBR courted their new
drinkers with great restraint and discretion. Another
brand that chose to work very carefully with unexpected
success among young people was Dunlop Volley.
The leading brand of tennis shoe in Australia in the
1960s, Dunlop was outmaneuvered by Nike and Adidas
until, by the mid-1990s, the brand had lost mainstream
relevance. Finding its status reduced to that of a bargain
brand sold in discount stores, Dunlop developed a long-
term plan to reposition and revitalize the brand.
Marketers do not decide a brands
ultimate meaning consumers do.
In 1999, while the company was in the midst of executing
that plan, something unexpected and inexplicable
happened. Dunlop Volleys became a hot item among
the hip teens in Australia, prized both for their retro
value and their low price. However, Dunlop manage-
ment did not abruptly change course in an effort to
capitalize on this turn of events. They realized that
aggressive marketing would only alienate their young
fans. Instead, the company set out to maximize the
beneft of their newfound popularity among young
people by making a deliberate effort to slow the diffu-
sion of that popularity. They advertised in underground
publications and limited distribution of the brand, avoid-
ing blatant appeals to their new and infuential custom-
ers. Then, when these infuential teens turned away
from Dunlop to the next big thing at the end of 2002,
the company completed the brands repositioning in the
mainstream marketplace.
Burberry: If You Dont Have Anything Nice to Say
In stark contrast to PBR, Timberland, and Dunlop, the
venerable English brand Burberry saw no beneft in
being adopted by one particular group of young people
in Great Britain. Since the 1990s, Burberry has been
plagued in its home country by its association with
PBR and Dunlop: Appreciation at Arms Length
Timberland was well established on the road to growth
before it was discovered by urban youth. The famous
American beer brand, Pabst Blue Ribbon (commonly
known as PBR), also encountered unexpected popu-
larity among young people, but for PBR this turn of
events occurred after the brand had been in decline for
a quarter-century. The brands surprising resurgence
(sales increased 67 percent between 2001 and 2006)
was frst observed among bike messengers and
students in the northwest U.S. city of Portland, Oregon.
While other theories were offered, it seems most likely
that young people were originally attracted by the
brands cheap price a dollar a can in many bars.
When they were not disappointed in PBRs taste, the
young drinkers also seemed to enjoy the idea that they
had discovered a brand that was not actively market-
ing to them. (PBR had done no television advertising for
25 years.) Enthusiasm for the brand spread across the
country by way of alternative groups including skate-
boarders, artists, and musicians.
The Pabst Brewing Company appreciated the newfound
popularity of PBR but realized that the young beer
drinkers had adopted the brand for their own reasons.
Sensing that overt marketing could only damage a brand
image it had done nothing to create, the company
held off on heavy-handed marketing efforts, choosing
23
Harlem who attached his own values to the brand.
Pointing to the brands tree logo, he said, It symbolizes
the world today . . . The Last Judgment will be based on
the weather and earth and how we treat it.
Early in his book The Global Brand, Nigel Hollis
develops the idea that the meaning of a brand is based
on broadly shared perceptions among consumers. It
is not enough for a brand concept to exist in the mind
of an individual consumer; rather, a consistent brand
idea must be shared by many. But the fact that brand
perceptions must be shared does not mean that the
same perceptions must be shared universally. Different
groups may interpret a brand in the light of their own
needs and lifestyles, embracing a brand for its posi-
tioning or for some functional beneft. As long as each
brand meaning is relevant to a large enough audience
to deliver proft for the brand, it is rarely of any
consequence that different groups experience the
brand in different ways. To Timberland customers
engaged in working-class occupations or outdoor
pursuits, the uniform of the hip-hop element is irrelevant.
Similarly, to consumers of Burberry outside of England,
the chavs uniform is immaterial.
The success of many of the worlds greatest brands
actually lies not in the tightness with which they are
defned, but in the extent to which their promise is open
chavs, a downmarket group associated with rowdiness
and hooliganism, who adopted the famous Burberry
check as part of their uniform.
The fact that brand perceptions must be
shared does not mean that the same
perceptions must be shared universally.
While a number of British commentators lamented the
damage to the brand, Burberry management stayed
on the high road and kept the public response very
limited. Under the leadership of the American CEO
Rose Marie Bravo, the company discontinued produc-
tion of the checked caps and reduced reliance on the
overexposed trademark plaid, but they issued no piqued
statements of distress at the brand being co-opted by
such an undesirable element. (However, some company
representatives did imply that most of the caps worn by
chavs were counterfeits.)
This strategy appears to have worked for Burberry.
While the brand may have suffered a bit in class-
conscious Britain, that country accounts for only 15
percent of Burberrys sales. The brands distinctive
English positioning retained its appeal around the rest of
the world, and the companys revenues have increased
steadily over the past four years.
Consumers: The Ultimate Deciders
If the principal job of marketers is to help build brand
associations in the minds of consumers, how can brands
like PBR and Timberland thrive while deliberately
choosing not to build or reinforce these associations?
And how could Burberry have avoided damage in the
face of what seemed a very negative association?
Its all about consumer control and thats just as its
always been. While marketers do their best to imbue
brands with positive, motivating values and associations,
marketers do not decide a brands ultimate meaning.
Consumers do and sometimes consumers fnd
relevance, purpose, and signifcance that the brands
creators may not have seen or intended. For example,
in the 1993 article on Timberlands emergence in the
inner city, The Times quotes one urban customer in
24
Many of the worlds most iconic brands have
values that offer universal appeal but can be
interpreted differently by different groups.
To address the problem they had created, Tiffanys
management set out to deliberately reduce sales. During
the period from 2002 through 2004, they systemati-
cally eliminated low-priced items and raised prices
until the less desirable customers went away. Overall
revenue went down and both profts and share price
took a hit, but by 2006 Tiffanys reputation for luxury
and exclusivity had returned. In his column for the UK
magazine Marketing, Mark Ritson made this comment
on the retailers action: Its better to have 20 percent of
the market forever than 60 percent for fve years.
Conscientious Marketers Should Just Relax
While we recognize brands as precious assets to be
supported and nurtured, we must also remember that
they are not vulnerable children in need of protection
from harmful infuences. If marketers have succeeded
in attaching a truly relevant and well-crafted meaning to
a brand, they have little to fear when their brand en-
counters an unfamiliar audience or a strange
environment. Should a new group interpret a brand in
an unexpected way, marketers should welcome the
opportunity to consider new possibilities; perhaps the
brands promise has broader relevance than they frst
imagined. But that doesnt mean that every new group
that adopts the brand should be actively pursued, par-
ticularly if doing so might undermine relationships with
the brands established clientele.
By all means, nurture your brands; support them and
keep them fresh, current, and relevant. But dont stife
or micromanage them, lest you inadvertently limit their
appeal, their potential, their long-term health, and your
companys proft.
To read more about managing consumer-brand
relationships, visit www.mb-blog.com.
to interpretation. Many of the worlds most iconic brands
have values that offer universal appeal but can be inter-
preted differently by different groups. Harley-Davidson,
for example, has long been regarded as a symbol of
freedom and rebellion. But rebellion from what? For
the Hells Angels and hard-core tattooed bikers, the Harley
represents rebellion against the norms and values of
conventional society. But for a fnancial analyst or a
patent attorney, a Harley might represent rebellion
against the strict protocols he or she adheres to during
the workday. For a female biker, a Harley might repre-
sent rebellion against confning ideas of femininity.
Timberland drew on this principle, seemingly without
realizing it, when they treated their new urban fans with
a policy of benign neglect. CEO Swartz may not have
understood the appeal the brand held for them, but he
made no efforts to dissuade them, instead letting them
continue to draw their own meaning from the brand.
Tiffany: Please Dont Return
When, however, a brands association with a particular
group actually interferes in some way with what the
brand is meant to deliver to its core customers, some
intervention may be called for. For example, luxury
retailer Tiffany introduced a low-priced Return to
Tiffany line of sterling silver jewelry in 1997, and though
sales were up in subsequent years, the brand developed
an image problem among its traditional clientele. Sales
associates could not provide the level of service that
long-standing customers were accustomed to in the
face of increased volume.
25
M I L L W A R D B R O W N S P O V
M a r c h 2 0 0 9
Targeting
Online Ads:
Aim for the
Bulls-eye or
Focus on
Hitting the
Target?
Among the signifcant
and distinct attributes
of online advertising is
its ability to deliver
relevant messages to
specifc targets.
However, the range
of available online
targeting options is
vast and becoming
increasingly complex.
How should advertisers
choose among these
alternatives to optimize
their online ad
effectiveness?
To reach the right person with the right message at the right time is the holy
grail of advertising. Theoretically, it seems that the targeting capabilities of
online advertisingwhich include demographic, contextual, and behavioral
optionswould make that goal consistently attainable. But in reality, the
precision promised by online targeting cannot always be delivered on a scale
thats large enough for major advertisers. As a result, to obtain their desired
levels of reach, advertisers sometimes adopt mass-market techniques such
as homepage takeovers of major sites. These approaches, though not fnely
targeted, often offer cost savings that more than make up for some wasted
reach.
What can advertisers realistically expect from online targeting, and how should
they make their targeting decisions? Online targeting options are many and
varied (see the Targeting Topography box on page 2), and the challenge of
choosing among them is further complicated by the possibility of applying
multiple targeting techniques in combination. To shed some light on what the
various options have to offer for different brands and brand objectives, lets
consider some of the major targeting types in a little more detail.
Demographic Targeting
In the online setting, the demographics used most often for targeting are age,
gender and geography, though sometimes additional factors such as income
come into play. Provided by many (but not all) online services, online demo-
graphic targeting can be based on the general demographic profle of a site or
specifc information provided by users.
Geographical targeting can be based on a computers IP address or on information
provided by users. User-supplied information is generally accepted as more
accurate but is not always available, so most geographic targeting is IP-based.
A campaign run by Playground, an outdoor equipment store in Sweden,
illustrates the creative possibilities offered by geo-targeting. Rich media ads
suggested a particular type of coat (from a selection of 70) for the days
weather conditions in a number of cities in Sweden.
Online media also hold out the tantalizing prospect of offering sophisticated
attitudinal targeting based on the personal information Internet users share
on blogs and social networks. But so far, sites such as Facebook have
struggled to monetize this information. The challenge here is to con-
vert this data into consistent and usable targeting information across
a large population.
Duncan Southgate
Global Innovation Director
Millward Brown
duncan.southgate@uk.millwardbrown.com
www.millwardbrown.com
26
We recommend using a research-based planning tool
to identify the types of Web sites that provide the most
appropriate contexts for your category.
Behavioral Targeting
Behavioral targeting the practice of delivering ads in
response to users online activity is now increasingly
commonplace; eMarketer estimates that $1.1 billion will
be spent on behaviorally targeted ads in 2009. Behavioral
targeting is practical only when using ad networks that
can serve ads across many types of Web sites or on
portals where many types of behavior are observed.
In its most common form, behavioral targeting infers
interest in a category based on a users surfng or
search behavior. For example, someone who recently
visited a car site would be served with a car ad.
For a straightforward brand-building campaign, the
timing of the interest-inferring behavior is not too
critical. However, in some categories, such as travel and
retail, a consumer may progress from researcher to
purchaser in a very short space of time. For behavioral
profles to be useful in such categories, they must be
updated frequently so that ads can be served based on
the most recent mouse clicks. There is clearly limited
value in serving a travel ad to someone who has just
booked a holiday.
The contextual approach is appropriate
when youre more concerned about the
mindset of the Web user than with the
particular site youre on.
Consumer attitudes toward behavioral targeting seem
to be somewhat conficted. In some surveys people say
they appreciate ads that are relevant and personalized,
but in others they express qualms about the idea that
their online movements are being tracked. There will
always be different perspectives on this issue, but as
long as behavioral targeting is used sensitively and
adheres to industry guidelines on privacy, the benefts
should gradually become appreciated. For example,
since a recent visit to Fiat.co.uk, Ive been consistently
retargeted with Fiat banner ads, and have been
Contextual Targeting
Many online advertisers focus on context-based target-
ing: beauty ads on beauty sites, sporting goods ads on
sports sites, tax software ads on fnance sites, and so on.
By using contextual targeting, advertisers increase the
probability that their ads will reach people who are in
the market for their products.
Contextual targeting can be very specifc; for example,
the large Google content network allows coffee ads to
appear on Web pages where coffee is being discussed.
This type of targeting is ideal for placing particular
executions in a campaign. For instance, an ad under-
lining a brands fair-trade credentials could be shown
on pages where both coffee and fair trade appear.
Combining such text-focused targeting with placement
on specifc sites is also possible, though the contextual
approach is often particularly appropriate when youre
more concerned about the mindset of the Web user
than with the particular site youre on.
There are some obvious trade-offs associated with
being in context. Ads that appear in context are often
competing with other ads in the same category on the
same page. Ads that are out of context may stand out
better, but the downside is that they may reach the
wrong people, or the right people in the wrong mindset.
Among the targeting types available:
Attitudinal (interests, values)
Behavioral (surfng and search behavior)
- Inferred interests (e.g., car enthusiasts)
- Predicted response (e.g., likely to click on car ads)
- Impulse (e.g., car activity in past 30 minutes)
Context (site-level, section-level or content-level)
Daypart
Demographic (age, gender, geography)
Run of network (actually a type of non-targeting)
Retargeting (for sequencing ads or for reconnecting
with site visitors)
Technographic (type of computer)
Online Targeting Topography
27
Combining demographic and contextual targeting simul-
taneously often makes sense, as when a fnancial service
geared toward women is advertised on a fnance web
site with a demo = female 18+ overlay. A demographic
overlay on a behavioral plan may also be helpful for
example to advertise a family car to a middle-aged
audience. However, it is less appropriate to combine be-
havioral targeting with a context-based approach, since
both techniques are effectively trying to reach people
inmarket. Some small lift in impact may be observed,
but it is not likely to justify the extra cost involved.
Not all targeting approaches are equally effcient, so on-
going evaluation of success is strongly recommended.
We sometimes see discrepancies between the profle
of the intended target audience and those who actually
saw the ad. Survey-based in-market monitoring can be
used to supplement click data in determining whether
the intended audience was delivered.
In-market evaluations can also determine whether a
targeting approach is cost-effectively generating the
desired brand impact. In the example shown in Table 1,
the tightly targeted campaign costs twice as much but
impacts three times as many people. Since its overall
cost per impact is lower, its higher CPM is justifed.
Table 1: Tight Targeting may offset increased CPM
with lower CPI
impressed with both their creativity and persistence.
My brand consideration is gradually increasing!
Right Message Executional
Regardless of how well a campaign is targeted, its
overall success will depend heavily on the strength of
the creative. In multiple regression models we typically
see creative quality accounting for more than half of
the overall effectiveness. We also know from pre-testing
experience to expect varying reactions to ads among
different audiences; segmenting your target audience
into appropriate sub-groups can often increase cam-
paign impact. Some ads may appeal more to particular
demographics and work better in particular contexts
or among people at different stages in the purchase
process. If these creative variations are understood in
advance, the campaign can be planned accordingly.
Some clever online techniques, such as those offered
by Tumri, even allow the delivery of dynamic ads built
around online profles. Tumris system allows ads to be
deconstructed into several elements (e.g., logo, picture,
message and offer); the ad delivered will then depend
on the targeting information available. While some ad
agencies may despair at this automation of the creative
process, such dynamic technology could well be use-
ful for brands looking to deliver distinct messages to
multiple discrete sub-audiences.
Regardless of how well a campaign is
targeted, its overall success will depend
heavily on the strength of the creative.
Optimization: Combinations and Evaluation
Returning now to the ideal of targeting every message
perfectly, lets consider the possibilities of combining
various targeting techniques. Advertisers can run two or
more tactics alongside one another (e.g., both behav-
ioral and contextual, so people see some ads in context
and some out of context), or they can apply techniques
simultaneously (e.g., only people with appropriate be-
havior are shown your ads and theyre always shown in
context).
Tightly
Targeted
Loosely
Targeted
The Buy
CPM (Cost per 000) $10 $5
Total Impressions 10 Million 10 Million
Total Campaign Cost $100,000 $50,000
The Results
Reach 3 Million 3 Million
% Impacted (Ad Index) 12% 4%
Impacted Reach 360,000 120,000
Cost Per Impact $0.28 $0.42
28
Summary
Online advertising offers exceptional targeting
opportunities, but also challenges marketers to
balance potential complexity with practical and
cost-effective implementation. A comprehensive
research-based approach that addresses the following
questions can help guide targeting decisions:
Do you have a clear defnition of your target
audience? How concerned are you about spillover
outside your core target?
Have you developed a hierarchy of targeting
importance based on your brand objectives and
research learning?
Have you used pre-testing to understand the likely
variations in creative response so that executions
can be placed accordingly?
Are you comprehensively monitoring in-market
performance of your targeting (clicks, brand impact
and sales) to understand cost-effectiveness?
Are you feeding learnings back into future planning
and buying decisions?
As marketers ask these questions of the online adver-
tising industry, let us also hope that further integration
and consolidation of targeting techniques make the
logistical exercise simpler and more cost-effective for
everyone involved. That should bring us ever closer to
our ultimate targeting goal of maximum response with
minimal waste.
Special thanks to Ken Mallon of Dynamic Logic who
contributed signifcantly to this Point of View.
To read more about online targeting,
visit www.mb-blog.com.
Behavioral targeting is often useful when
appropriate contextual inventory is sold out
or considered too expensive.
Whats right for your brand?
There is clearly no such thing as the right way to
target, so each individual brand will need to determine
what works best for them and their specifc messages.
Based on our broad evaluation experience and our
MarketNorms

database, we would suggest the follow-

ing guidelines in applying online targeting techniques:
Demographic Targeting
For mass-market consumer packaged goods, demo-
graphic targeting is usually the best option for meeting
both awareness and persuasion goals. It is less likely to
be useful for other types of categories, except when
specifc products are used primarily by a particular
demographic.
Contextual Targeting
For durable goods and services, contextual targeting
can help increase the chances of reaching people who
are in the market for a particular product. However,
appropriate contextual sites may be hard to fnd for
some categories such as telecommunications. In those
cases, blogs might provide the most relevant setting.
Behavioral Targeting
Behavioral targeting is not a particularly relevant
option for mass-market consumer packaged goods,
but can be very effective for specialized products.
Behavioral targeting is often useful when appropriate
contextual inventory is sold out or considered too
expensive. Targeting based on search behavior can be
particularly helpful for tech products, such as consumer
electronics, or categories where good contextual sites
are rare.
29
M I L L W A R D B R O W N S P O V
A p r i l 2 0 0 9
Rules of
Engagement
Three years after the
ARF introduced its
working defnition of
the term engagement,
there is still a lack of
clarity over what the
term describes and
how it can best be
measured. Perhaps the
problem is that no one
defnition can really
suffce when engage-
ment takes place in
multiple contexts.
To be useful, the
defnition needs to
account for all
three contexts of
engagement: brands,
communications,
and media.
Much debate has centered on the topic of engagement in recent years.
Interest in this concept developed as it became clear that the new digital
world presented both new possibilities and new hazards for marketers.
While digital media channels allowed people to experience a new degree
of interaction with brand communication, marketers soon realized that they
needed to gain permission to market to people through these channels.
Simply bashing down peoples doors by intruding into their online surfng or
mobile communication would be counterproductive. People needed to be
won over. Thus the focus on engagement.
In 2006, after devoting a substantial amount of time to consideration and
debate, the Advertising Research Foundation (ARF) presented a working
defnition of engagement at its annual conference in New York City.
However, the long-awaited defnition, turning on a prospect to a brand
idea enhanced by a surrounding context, raised as many questions as it
answered, including: Is engagement a switch to turn something on?
Does the term prospect refer only to non-users or does it include current
users? And what, really, is the role of media? Is it to enhance an idea, or to
deliver an idea, or both?
Three years later, these questions remain unanswered. Along the way, the
engagement debate has been hijacked by various digital media specialists
who, by defning engagement on their own terms, have narrowed the focus
of the discussion to the ways in which people interact with specifc media
channels. This has been neither helpful nor productive for the communica-
tions business at large.
In the face of this continued confusion, it might be a good idea to go back
to the basics. While the media environment has changed in recent decades,
the fundamentals of brand success have not. If a brand is to succeed and
thrive, people must want to buy it. They must have positive ideas, thoughts,
and feelings about it. These positive associations will be built and maintained
through exposure to controlled and uncontrolled brand communication as
well as through direct experience with the brand. Media engagement is not
the whole story, nor even the most important part of the engagement story.
Marketers need to think about engagement not just in terms of media but
also in relation to brands and communication. Therefore, in order to
provide marketers with useful advice and metrics, we need to defne
engagement in relation to each of those contexts: brands, com-
munications, and media.
Ultimately, successful marketing communication leads to brand
engagement, specifcally with the formation of a rich network
Gordon Pincott
Chairman Global Solutions
Millward Brown
gordon.pincott@millwardbrown.com
www.millwardbrown.com
30
We conducted a large-scale analysis of different
brands to look at the relative importance of these
three types of associations. We wondered, for
example, if brands that were stronger in their
emotional associations would be stronger overall.
The fascinating conclusion was that brands that had
balanced representations across the three sets of
associations were healthier and more likely to grow
than were brands with unbalanced associations. With
an understanding of the importance of establishing a
balanced set of associations in consumers brains, we
can approach our discussion of the different types of
engagement with that important end in mind.
Brand Engagement
Some commentators have suggested that we
redefne engagement as willingness to spend time
with a brand, and then use the amount of time
people spend as an engagement metric. However,
this idea is deeply fawed. People can be devoted
users of particular brands but still lack the desire to
spend time interacting with either the brand or the
product category. For example, my household has
been a devoted user of PG Tips tea for as long as
I can remember. But nobody in my house has the
slightest desire to visit a PG Tips website, read a PG
Tips magazine, or spend time with the brand in any
way whatsoever, other than to drink it. This is not a
of positive brand associations in consumers minds.
In order for marketing communication to create,
strengthen, and refresh those associations, that
communication needs to be engaging. Finally, though
much of the engagement debate has taken place
around the idea of media engagement, and media
do play a key role in delivering a receptive audience
to the communication, the primary role of media
is actually to facilitate engagement with the commu-
nication. Thus media engagement might better
be called facilitation.
There are other ways to engage with
communication besides clicking on a
link or physically interacting with a
medium; ultimately we are trying to
engage consumers brains, not their
bodies.
Our Brains
Recent advances in our understanding of the brain
help to inform the engagement discussion. The
capabilities of our brains have evolved over centuries
to help us survive. The same capabilities that helped
our ancestors avoid predators, fnd food, and create
shelter from the elements are at work in our brains
today as we negotiate our modern world. We face
very different challenges than our ancestors did, but
we rely on the same response and retrieval mecha-
nisms in our brains.
In his Millward Brown Point of View from May 2007,
titled Engaging Consumers Brains: The Latest
Learning, Graham Page describes the fndings from
recent brain research and highlights their relevance
to marketing. Crucial to understanding brand and
communications engagement is the fnding that each
time we encounter an object, whether its an animal,
a table, or a brand, we assemble a representation
of that object from all the associations stored in
our brains. These representations are formed using
associations from three basic categories: knowledge,
experience, and emotion.
31
Communications Engagement
One of the most famous scientifc experiments on
attention was described in a classic scientifc paper
called Gorillas in Our Midst.
1
While viewing a flm in
which students passed a ball to one another, people
were tasked with counting the number of times the
ball changed hands. The vast majority of observ-
ers failed to notice when somebody in a gorilla suit
meandered in among the people passing the ball,
despite the fact that the gorilla appeared right in the
center of the action. The experiment demonstrated
two things: that we focus our attention on things
that matter to us, and that we are incredibly good at
ignoring things.
Both of those observations are directly relevant to
communications. As we process the world around
us, we engage with those things that have personal
relevance to us and ignore the rest. This presents
a major challenge for advertising because most of
the time, when people see advertising, they are not
thinking about brands. Typically the brand purchasing
decision is made at a different time. Therefore it is
the communications idea that has to resonate with
people, either by virtue of its emotional charge or
its distinctiveness.
So communications engagement should be defned
as the act of giving attention that is, devoting
mental resources to a piece of communication.
Engagement with communications is crucial because
memory is a consequence of engagement. Com-
munication will have no positive effect on a brand
if it doesnt hold peoples attention long enough to
establish or reinforce brand associations.
And that brings us to another key point. Advertising can
be engaging i.e., highly enjoyable and entertaining
but will not serve the advertised brand if that brand
is not part of what is engaging about the ad. If the
positive ad associations are not stored in the memory
in connection with the brand, then even though
communications engagement is achieved, it does
not serve its purpose.
negative refection on PG Tips. It is merely a refec-
tion of the status of the tea category in our
households priorities.
If willingness to spend time with a brand were an
appropriate defnition of engagement, it would tend
to lead us toward particular channels and away from
others. But willingness to spend time with a brand is
highly category-specifc. The defnition of brand
engagement should not focus around time spent
with a brand but rather on brand associations.
A brand that has successfully engaged consumers
has planted and sustained fresh, powerful brand
associations in their minds. Those associations gener-
ate interest, curiosity and expectations about the
product or service.
All media channels can engage their
audiences; therefore, whether TV ad-
vertising is more engaging than radio
advertising is an entirely sterile debate.
For the notion of brand engagement to be meaning-
ful for businesses, it must relate to the purchasing
decisions that consumers make and the circum-
stances under which they make them specifcally,
the fact that consumers choose brands in the
context of a variety of offerings in a given category.
While the strength of positive brand associations will
not always fow through to purchasing (because of
external factors such as availability), in general the
relationship between brand engagement and
purchase intent is both strong and measurable.
One measure that takes both brand associations
and category context into account is the Bonding
level of the BrandDynamics
TM
pyramid. In calculating
Bonding, two factors come into play: the relationship
between various brand associations and purchase
intent, and the salience of the most important
associations (in terms of loyalty in the category)
for each brand. By drawing on the second factor,
Bonding takes account of the fact that a consumer
may engage with more than one brand in a category
while choosing to purchase only one. 1
Daniel J Simons, Christopher F Chabris, Gorillas in our midst: sustained inattentional
blindness for dynamic events, Perception, vol. 28 (1999), 1059 -1074.
32
The idea that digital channels allow viewers to inter-
act with the communication should not be a deciding
factor unless interactivity is essential to the campaign.
There are other ways to engage with communica-
tion besides clicking on a link or physically interacting
with a medium; ultimately we are trying to engage
consumers brains, not their bodies. And market-
ers should remember that only a tiny minority of
those exposed to communication in any channel will
choose to interact with it. Therefore, to maximize the
value of a channel investment, we need to ensure
that even those who do not interact with the brand
or message are still left with a positive impression of
the brand.
Conclusion
If engagement is to be a useful yardstick to measure
the effectiveness of our communications, we need to
clarify what it means in three contexts: brands,
communications, and media. Brand engagement is
the degree to which consumers have a rich network
of positive brand associations in their heads.
Communications engagement is the degree to which
a piece of communication is able to command
attention. And what we call media engagement
though it might better be termed media facilita-
tion is the degree to which a channel can deliver
communication to a receptive audience.
To read more about engagement,
visit www.mb-blog.com.
Furthermore, communications engagement isnt an
end in itself. It is about potential, not necessarily effect.
After people have been exposed to communication
and their brand associations have been refreshed
or expanded, is the brand more appealing? Will
the brand experience be enhanced? These are the
things that will determine the motivational power of
the communication.
Media Engagement
As we discussed earlier, much of the debate about
engagement has taken place in the context of media.
But media channels cannot be thought about in
isolation from the creative work in those channels.
All media channels can engage their audiences;
those that couldnt would have ceased to exist by
now. Therefore, whether TV advertising is more
engaging than radio advertising is an entirely sterile
debate. The more pertinent question is: Which form
of communication will be better at delivering an
audience that will be receptive to engaging with a
particular message? The role of channels is one that
is specifc to the advertising task.
Advertising can be engaging i.e.,
highly enjoyable and entertaining
but will not serve the advertised brand
if that brand is not part of what is
engaging about the ad.
Therefore, the critical thing is to choose those channels
that will facilitate engagement with your communica-
tion. A radio ad at drive time might be the perfect
way to deliver one message to an audience.
For a different message, a competition on a microsite
might be a more powerful way of reaching them.
The channel choice should be led by the brand
communication idea.
33
M I L L W A R D B R O W N S P O V
M a y 2 0 0 9
Culture Clash:
Globalization
Does Not Imply
Homogenization
The culture in which we
live shapes our view of
the world around us,
which in turn infuences
our decisions, including
those about which brands
to buy. Increasingly, people
everywhere are exposed
to foreign cultures through
commerce, travel and
media, but globalization
of the marketplace does
not necessarily imply ho-
mogenization of culture.
In the future, marketers of
global brands may have
to understand, accom-
modate and address an
increasingly diverse
audience of
consumers .
Culture the history, beliefs, customs, habits and values of a group of
people determines the way we respond to the world around us. Both
nature and nurture play a role in ensuring that local culture has a continued
infuence on our lives. Our genes ensure continuity of physical and personality
traits across generations within an ethnic group, while culture our experience
of the society into which we are born shapes our minds, our values and
our priorities. Culture determines our taste for food and aesthetic prefer-
ences and infuences the way we view other races and nationalities.
Brands can be an integral part of a culture, and in many ways the relation-
ship between culture and brands is symbiotic. Brands that successfully
anticipate trends in popular culture prosper better than those that do not
(see the September 2007 Point of View What Makes an Iconic Brand?),
while brands that are not aligned with local cultures can fnd it diffcult to
prosper at all. Brands contribute to cultures not only through the needs they
address but also through their role as social currency. They provide new
cultural reference points and topics of conversation.
Global commerce has brought with it global brands. The majority of brands
in the BrandZ Top 100 Most Valuable Brands ranking are global in scope,
deriving their value from creating strong emotional connections with cus-
tomers across countries and cultures. As globalization continues, one might
expect the challenge posed by local culture to diminish. If people see the
same advertising, surf the same Internet, and use the same brands, surely
their tastes and preferences will become more similar wont they? Or
will the rise of more affuent consumers in developing economies lead to a
resurgence of local culture?
Converging Levels of Prosperity, Different Values
In fact, the world is not yet a global village and in all likelihood is not going
to become one. If history is to be our guide, the developing economies of
Africa, Asia and India are likely to follow the examples of Japan and Korea
and retain a strong degree of cultural identity as they grow. Since its rise as
a global powerhouse, Japan has shown little sign of losing its unique culture.
Global marketers still face signifcant challenges in developing brands and
marketing communication that will succeed in that country.
Evidence from research suggests that cultural values are far more
resilient than we might imagine. In her ESOMAR paper, Mapping
Cultural Values for Global Marketing and Advertising, Marieke
de Mooij demonstrates that the values of national culture
described by Professor Geert Hofstede of The Netherlands
Nigel Hollis
Chief Global Analyst
Millward Brown
nigel.hollis@millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
34
For example, in the U.S. a rubber is used to avoid
unwanted pregnancy; in the U.K., it is used to erase
mistakes made with a pencil. Therefore, the creation
of marketing communication that can travel requires
far more than simply an accurate translation of
words.
A recent examination of Millward Browns Link
database demonstrates that few ads can transcend
cultural boundaries. We looked at ads that tested
exceptionally well in one country and found that just
over one in 10 did equally well in another country.
Moreover, one in 10 of those exceptional ads actually
performed below average when tested in another
country. So while using the same ad campaign across
borders may offer cost effciencies, the savings realized
may not outweigh the beneft offered by local
engagement.
The creation of marketing communi-
cation that can travel requires far
more than simply an accurate transla-
tion of words.
American Culture Is Losing Its Appeal
In the past, globalization was largely a process of
Americanization due to the dominance of the United
States in business and popular culture. The Pew 2007
The world is not yet a global village
and in all likelihood is not going to
become one.
impact both product purchasing and media con-
sumption behavior. She concludes, Countries may be
converging with respect to income levels but they
are not converging with respect to values of national
culture. A look at the recent Global TGI data reveals
fndings consistent with those of de Mooij. We
observe similar values between rich and poor within
a country, but big differences between people with
relatively high standards of living across countries.
Local Culture Exerts a Powerful Infuence Over
Brand Success
In 2008, we conducted a survey to explore the role
of culture in driving brand success. The results of this
research, described in The Global Brand and else-
where, confrmed that brands that are identifed with
local culture will perform better than others (assum-
ing all other things are equal).
While association with local culture has less impact on
purchase probability than perceptions that a brand is of
high quality or is setting trends, it is a positive driver
of purchase intent for all brands, both global and local.
Local brands, however, typically scored far higher
than global brands on being part of the national cul-
ture, and though they may lack the business acumen
and deep pockets of multinational brands, they draw
strength from this home feld advantage.
The infuence of local culture means that the com-
bination of product formulation, positioning, distribu-
tion and communication strategy that made a brand
successful in one country may have to be adjusted to
build a connection with consumers in new markets.
Of these elements, communication is probably
the most susceptible to the infuence of culture.
Even countries that share a common language and
have similar socioeconomic standing, such as the
United States and the United Kingdom, are divided
by cultural reference points, humor and idioms.
35
products, people may choose instead to celebrate
their own cultural identity by purchasing local foods,
brands and entertainment.
In developed economies we observe a number of
trends suggesting that economic well-being does
indeed allow people to promote their own cultural
identities. In Japan, economic success abroad led to
the development of The International Research
Center for Japanese Studies, or Nichibunken,
intended to advance research into Japanese culture.
In Western Europe, minority languages like Welsh,
Catalan and Breton are being revived.
The promotion of cultural identity may already be
apparent on the Internet. Far from creating a global
village, the Internet looks set to promote greater
diversity. Technorati tracked blogs in 81 languages
in June 2008. Brands like Google, Facebook and
YouTube have enjoyed stellar growth, in part because
they offer local language sites. But this has not
prevented local brands from holding their ground.
Baidu remains the search engine of choice in China;
Youku for video. MIXI is the social network of choice
in Japan. These brands remain entrenched not just
because they were the frst in their market but also
because they are uniquely aligned with the local
culture.
Global Attitudes Project found that many developing
and recently industrialized nations appreciate Ameri-
can movies, music and TV; however, that appreciation
is not universal and is declining in many countries.
In developing economies that have their own strong
cultural heritage, such as India and China, people are
less apt to value American popular culture. For instance,
only 23 percent of people interviewed in India agreed
that they liked American popular culture, a refection
of Indias heritage and the success of the Bollywood
movie industry.
Sixty-fve percent of Americans think the spread of
American ideas and customs is a good thing, but with
a few notable exceptions like China, Japan and Nigeria,
the majority of people across 46 other nations felt
it was bad that American ideas and customs were
spreading to their country.
A Renaissance of Cultural Identity?
There is, however, one thing on which the vast
majority of the worlds citizens agree: Their traditional
way of life is getting lost. Seventy-three percent of
Americans agree with this statement, but so too do
the majority of people in every one of the other 46
countries included in the Pew 2007 survey. Though
many people enjoy the benefts of globalization,
they feel that their cultural identity is under threat
because of it. The critical question is, will everyone
submit to the forces of globalization or will they push
back by promoting their own cultural identity?
While it may be too late for consumers in developed
economies to regain their traditional ways of life,
the same may not hold true for those in developing
economies. The appeal of Western brands compared
to local brands has rested in part on a generic prom-
ise of quality and trust. But as local businesses and
brands become stronger, this advantage will erode.
At the same time, rising standards of living and a
greater familiarity with brands and marketing will
empower consumers to choose the brands that best
suit their functional and emotional needs. Instead
of spending their hard-earned money on Western
36
Savvy global marketers know that its easier for a 4.
brand or communication campaign to travel when
it taps into a human motivation or interest that is
shared across cultures. But a common motivation
may still demand different expressions if it is to
be effective across cultures. Resurgence in local
cultural identity will make local engagement even
more important.
Brands are created at the intersection of two 5.
different cultures: the culture of the people who
buy the brand and the culture of the organiza-
tion that markets it. When the two are aligned it
is relatively easy to create a strong connection
between brand and consumer. When dealing
with consumers of a different culture, however,
it is very easy for marketers to overlook critically
important aspects of that culture simply because
they do not relate to it. Research, listening and an
appreciation of other cultures will become ever
more critical.
Extrapolating from existing trends, we may expect to
see an ecosystem of brands in which two or three
global brands dominate in each product and ser-
vice category, counterbalanced by an assortment of
local and specialized brands. Strong global brands,
premium specialists and value players are all likely
to survive. Bland mid-priced, mass-market brands,
whether they are global, regional or local, are most
likely to be at risk.
The dynamic tension between global and local
culture differs by country, product category and
brand. In seeking to take their brands global,
marketers must be very clear about what role
culture plays in determining the success of their
brand. And in the future, that understanding will only
become more important.
To read more about culture and branding,
visit www.mb-blog.com.
Will everyone submit to the forces of
globalization or will they push back by
promoting their own cultural identity?
Five Implications for Global Marketers
If in the future the world will become more diverse,
the challenge of mass marketing across borders will
become far more diffcult. Here are fve implications
for global marketers:
It used to be that multinationals could launch 1.
a brand into a developing economy, confdent
that their product would be better and more desir-
able than the local competition. Increasingly this
expectation is unwarranted. With product superi-
ority no longer guaranteed, brands must compete
for hearts as well as minds. And to win peoples
hearts, you must engage them on their own
terms and in their own languages. Foreign brands
will increasingly need to blend into local culture if
they are to become successful.
As cultural diversity increases, marketers will 2.
need to apply more local understanding, thought
and action. Companies that have moved too far in
the direction of global brand consistency may be
ill-equipped to do this. They may have little alter-
native but to hold their ground as best they can
by leveraging their advantages of scale. But those
advantages will need to be signifcant if they are
to stave off competition in developing economies.
Quality and price will not offer an advantage, only
effective innovation and marketing combined with
local knowledge and insight.
Brands that have become successful in their 3.
country of origin may in the future fnd brand
extension a more proftable route to growth than
brand expansion. The more brands rely on culturally
specifc personality, identity and emotional con-
nections, the more diffcult it will be to transcend
countries and cultures. It will be easier to intro-
duce existing loyalists to new products than to
adapt the brands positioning to appeal to different
cultures.
37
M I L L W A R D B R O W N S P O V
J U N E 2 0 0 9
Marketing
During
Recession:
Planning On
Recovery
When sales are down
and budgets are cut, it
would seem that the
most important thing for
a business to do is to
focus on survival, not
plan for growth. But
recovery will come, and
marketers who are not
ready to seize that
opportunity will lose out
to those who are. Brands
must develop plans to
regain lost customers
now. And effective
planning requires a
detailed understanding
of how consumer
behavior and
attitudes have
changed (and
how they might
change again).
In his inaugural address, U.S. President Barack Obama said, The state of the
economy calls for action, bold and swift, and we will act not only to create
new jobs, but to lay a new foundation for growth. In the frst 90 days of his
administration, the government moved fast to make good on that promise.
Marketers would do well to follow his lead. A recession is not a time to slow
down. It is a time to speed up. And while it is diffcult to ignore the current
bad tidings, now is the time to make plans for the anticipated upturn. The
brands that are prepared for recovery and are able to execute their plans
quickly and effectively will be the ones that will win in the long term.
The Strategic Challenge
Most premium and mainstream brands face the same fundamental challenge
when considering recovery. They need to regain the sales volume that was lost
when economic circumstances forced consumers to reappraise their purchas-
ing priorities and brand choices. In order to make their disposable income go
further, consumers adopted one of three tactics: they curtailed purchasing in
a category altogether, they deferred or decreased their purchasing, or they
traded down to a less expensive brand.
Curtailed purchases
Luxuries or items that are perceived as nice-to-haves are most likely to be
eliminated when consumers need to cut spending. Affected product catego-
ries range from cruises and designer goods to more mundane categories
like insurance or window cleaner.
Deferred purchases
Purchases of high-ticket items such as cars and appliances will be deferred
when consumers are under fnancial pressure. People will also reduce the
frequency of purchasing in categories such as casual dining and gasoline.
Traded down purchases
We see evidence that consumers have reappraised their brand choices in
virtually all product and service categories. Millward Browns tracking data-
base fnds a strong rise in the number of premium brands perceived as too
expensive in 2008.
The key to successfully regaining lost sales lies in understanding con-
sumer mindsets and motivations. Among people who have stopped
purchasing a category, how many have really adopted a more
frugal mindset, and how many merely need to feel more conf-
dent before they resume purchasing? When it comes to people
who have chosen to buy value-priced products or store brands,
Nigel Hollis
Chief Global Analyst
Millward Brown
nigel.hollis@millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
38
investment in various activities, confrms that increased
innovation and marketing support are central to a
successful recession strategy for many brands. Analysis of
company performance during past recessions identi-
fed the strategies shown in Table 1 as most likely to
result in market share and proft growth once the
recession was over.
Apart from the recommendation to increase marketing
support, perhaps the most surprising recommendation
from the analysis is to maintain price relative to the
competition. But there is good reason for this. By
cutting prices, companies encourage customers to
regard the depressed price as normal, making it very
diffcult to return prices to previous levels when the
economy recovers. The result is an almost permanent
loss of proft margin, sometimes not just for one com-
pany but for an entire industry.
Furthermore, because consumers often look to price as
a signal of quality, by cutting prices a brand may under-
mine perceptions of quality. Lowering price should be
the tactic of last resort. And whatever a company does,
it should not cut product or service quality. If consumers
believe they are being shortchanged, they wont think
twice about changing brands.
The fundamental lesson of the PIMS analysis is that
companies that invest in their brands are far better
positioned to gain market share and proft margin
when the economy recovers.
The brands that are prepared for
recovery and are able to execute their
plans quickly and effectively will be the
ones that will win in the long term.
how many were forced by their circumstances to trade
down? How many are unhappy with their new brands?
The challenge is the same in both cases to regain
sales but the solution will vary by category and
brand.
Strong Brands Weather Recession Best
A weak economy and poor consumer confdence have
proved to be an asset for some categories and brands.
Sam Walton, the late founder of Wal-Mart, was often
quoted as saying, I was asked what I thought about
the recession. I thought about it and decided not to
take part. It makes a nice sound bite, but Wal-Mart
has very much taken part in the current recession.
The company reported a sales uplift of $500 million in
the second quarter of 2009 as people focked to
Wal-Mart in search of cheaper prices. But not every
value retailer has performed so well. It is the combi-
nation of a strong brand and a value proposition that
allowed Wal-Mart to thrive.
Many companies and brands have been similarly well-
positioned to take advantage of the tough economic
times. McDonalds reports strong U.S. sales as a result
of drawing customers away from casual dining restau-
rants. But if your brand is perceived as being worth
paying more for, you dont have to espouse a value
positioning to thrive during a downturn. On January
21 of this year, Apple announced that robust sales of
iPods and laptops had allowed it to shrug off one of
the worst holiday sales seasons in years. The January
release also reported that the companys quarterly
proft had jumped to $1.61 billion, or $1.78 a share,
which was more than 25 percent higher than analyst
expectations.
Analysis of the Proft Impact Marketing Strategy
(PIMS) database, which contains information on the
fnancial performance of companies relative to their
Cost Area Winning Strategy
Innovation Increase
Marketing Increase
Customer Preference Improve*
Relative Price Maintain*
Administration Cut
Working Capital Cut/Maintain
Fixed Assets Cut/Maintain
Source: PIMS database analysis* Relative to category average
* Analysis by Keith Roberts in presentation for Malik, Management
Centrum St. Gallen
Table 1
39
good visibility at the point of purchase, and consider
how best to trigger positive perceptions when people
are making their purchase decisions.
Restore confdence
In Argentina, after the recession of 1999 turned into
the crisis of 2001, many people had to abandon their
preferred brands of consumer goods in favor of econ-
omy brands. The premium brands that successfully
weathered the storm did so by offering affordable
new formats and cheaper packaging, as well as focus-
ing attention on performance and value. When the
crisis ended, these brands celebrated with positive
and upbeat communication. Confrm your brands core
benefts and adopt a positive tone of voice to help
restore consumer confdence.
Re-establish differentiation
During a recession, premium brands should maintain
their relative price premium and seek to reframe per-
ceptions of value. During recovery, restoring perceptions
of differentiation will lead to growth and the ability to
sustain a price premium.
The key to successfully regaining lost
sales lies in understanding consumer
mindsets and motivations.
Few consumers make choices based on price alone.
A recent analysis of 209 consumer-packaged-goods
brands in the United States found that consumer
esteem was the key underpinning of a brands ability
to command a price premium. Brands that scored
especially well on the statement I have a higher
opinion of it than others commanded a median price
advantage of 11 percent.
Focus on functional benefts to establish perceptions of
advantage. Convenience and effectiveness always sell,
particularly when people can afford to be doing some-
thing more enjoyable. If your brand lacks a compel-
ling functional beneft, focus on sustaining emotional
differentiation. If people have an emotional connection
to your brand, they will want to return to it even if they
must choose cheaper alternatives until the slowdown
is over.
The Five Rs of Recovery
Whatever survival tactics companies have been forced to
employ during the recession, recovery is the time when
they need to focus on rebuilding their brands. Analysis of
Millward Browns BrandZ database against scanned sales
data from IRI fnds that the probability of future market
share growth depends on both the strength of existing
attitudinal loyalty and a brands momentum. The more
successful a brand is in convincing people of its appeal and
its difference from the competition, the greater its chance
of growing market share.
The recipe for success will differ for each brand, but
when planning your brands comeback, consider these
fve basic strategies:
Remind people about your category and brand
Remind people that your brand still offers the best
solution in the product category. Increase above-
the-line advertising and, in particular, increase your
effective share of voice in order to grow brand famil-
iarity and perceptions of product performance, brand
appeal and differentiation.
If you cant spend more, make sure your copy is
working harder. Set the bar high and leverage your
media budget as effectively as possible. Test a range
of solutions for each channel. Pre-testing is cheap
in comparison to wasting millions on ads that fail to
evoke the desired response. To maximize the beneft
of increased advertising, ensure that your brand has
40
Rally the troops
The example of Halifax brings us to the ffth R. When
the upturn comes, it will be mission critical for service
brands to have staff energized and focused on deliver-
ing a positive customer experience. The involvement
of Halifax staff in the brands campaign motivated
employees and gave them renewed faith in the com-
pany. Eighty-four percent of them agreed that the
advertising had given Halifax real momentum.
Identifying the Right Turning Point
The road to recovery is likely to be a bumpy one.
Faced with uncertainty, marketers cannot rely on the
media to tell them when to ramp up spend. Some
categories may lead the economic recovery while
others lag. By the time economists confrm that the
recession is over, it will be too late to take advantage
of the upturn. Only by keeping a close eye on key
category and brand indicators will marketers be able
to identify that the time has come to put their plans
into effect.
The companies and brands that are ready for the
recovery will be the ones that win back customers and
consumers. Speed of response will be crucial, whether
it be to take advantage of improved consumer senti-
ment or to counter competitive initiatives. Critical to
an effective return to prior sales volume and brand
growth will be a detailed understanding of both con-
sumer behavior and mindset. Many customers who
defected to cheaper brands can be won back if they
are identifed and targeted appropriately.
To read more about marketing during recession,
visit www.mb-blog.com.
Relaunch
A compelling innovation can help regain customers who
have traded down. But do not launch new variants just
for the sake of it. In the UK, Nestls Kit Kat grew by 19
percent after it simplifed its complicated brand lineup.
Less clutter makes it easier for consumers to make
selections and allows the brand owner to focus mar-
keting and sales activities more effectively.
A shift in positioning might make the brand more
attractive to new customers. In 2001 the UKs Halifax
Bank, faced with the threat of acquisition, set aggres-
sive targets to double the number of new accounts.
As part of The Extraordinary Growth Strategy they
took advantage of perceptions that all banks were the
same to adopt a retail strategy and sell substance in-
stead of image. They created a new current (checking)
account paying 4 percent interest to provide a rational
reason to switch. However, a value proposition is easy
for competitors to match, so Halifax also employed
new positioning.
The Extra Value, Extra Friendly proposition was
founded on the insight that Halifax was, at its heart,
human. The Halifax staff took pride in being people,
not bankers, and customers recognized that Halifax
people are people like us. A staff competition was
held to identify spokespeople to represent the com-
pany in its advertising.
If your brand is perceived as being
worth paying more for, you dont have
to espouse a value positioning to thrive
during a downturn.
The new campaign helped Halifax outperform the
competition. Strong branded impact helped improve
consideration of Halifax for a new account from
seventh place to frst among UK banks. The relaunch
led directly to a signifcant uplift in sales and proft-
ability with new accounts exceeding the target by 25
percent, acquisition costs decreasing 28 percent, and
proft per account up 43 percent.
41
M I L L W A R D B R O W N S P O V
J U L Y 2 0 0 9
Whats Next
For Mobile?
While the world remains
engulfed in an economic
Perfect Storm, the
full potential of mobile
marketing will not be
achieved until a Perfect
Calm occurs, in which
the vision that mobile
operators and market-
ers have for the mobile
phone lines up with the
reality of what the device
means to consumers.
As to when and how this
may occur, emerging
markets that are home
to three in four of the
worlds mobile users may
provide critical clues.
A Perfect Storm requires a certain confuence of events to transform
something that is merely bad or unpleasant into a disaster. A Perfect Calm is
no different, and a Perfect Calm is what is needed to fulfll the potential of the
mobile phone as a branding and marketing platform. People everywhere
especially in developing markets rely on their phones for communications,
transactions, and the management of their personal business. But in treating
mobile as just another marketing tool to be parked alongside TV, print, and
online, marketers and Mobile Network Operators (MNOs) are undervaluing the
potential of the channel. While there are many examples of effective mobile
campaigns, some of which have been described in previous Millward Brown
POVs,
1
the development of mobile marketing will remain limited until MNOs
and marketers recognize the signifcance of mobile phones to the lives of
more than 3 billion people around the world.
Among the developing regions, Africa provides an especially fascinating
context in which to observe the evolution of mobile communication and
marketing. Not only is the overall media infrastructure relatively
underdeveloped on much of the African continent, but in many countries,
more fundamental types of infrastructure are lacking. Roads, electrical lines,
and other physical infrastructures exist only on a piecemeal basis, and offer
uneven levels of quality and reliability. Thus in Africa, a unique situation exists:
The mobile phone is Africas only true Pan-African infrastructure. While some
pay-TV networks do have Pan-African broadcasts, only the more affuent
households receive them. Radio delivers considerable reach, but is fragmented
and limited when compared to the one-to-one interactivity of mobile. And on
a continent where scores of languages are spoken, mobile offers advanced
targeting and segmentation possibilities.
Mobile phones have been instruments of transformation on the African con-
tinent, delivering not just communication but access to markets, health care
information, and emergency services. Thus in the emerging markets of Africa,
the mobile phone is both a media channel in which a brand has a share of
voice and a phenomenon that commands a share of lifestyle. This is also
true, though to a lesser extent, in other more developed markets around the
globe where people have come to rely on their mobiles for various lifestyle
enhancements and diversions. This POV will seek to build on what we already
know about mobile marketing and anticipate the ways in which market-
ers in Africa and elsewhere might capitalize on mobile as the most
intimate, pervasive and engaging media channel yet devised.
Tim Smyth
Mobile Industry Specialist
Managing Director, Millward Brown East Africa
tim.smyth@millwardbrown.com
www.millwardbrown.com
www.mb-blog.com
42
countries, marketers in Africa may get to grips with its
potential sooner than their Western colleagues.
A Myopic Focus: Price
MNOs in Africa believe that the name of their game
is price, and it is easy to understand why. Most Afri-
cans are price conscious and anxious to minimize cash
outlays; the vast majority of mobile subscribers (about
90 percent) have prepaid plans. In many markets, price
seekers use multiple SIM cards, swapping out cards on
a regular basis in order to get the best pricing on the
calls they make and receive.
The downward pressure on prices is relentless because
as mobile penetration extends beyond the relatively
well-heeled population in each country, each new wave
of subscribers has less disposable income than the last.
Africa and India already have the worlds lowest Average
Revenue Per User (ARPU). The combined impact of
these trends is a constant focus on tactical price promo-
tions. By attempting to monetize every new tariff plan and
service, MNOs try to preserve or grow market shares. The
net impact is an increase in marketing clutter, diminishing
returns, and continuation of heavy price competition that
not only devalues the power of the offer but also erodes
brand equity. SMS is a prime example. Mobile users in
Africa rely heavily on SMS as an economical means of
communication, but as a result of constant price promo-
tions, MNOs have conditioned consumers to expect to
get the service for little or no cost.
The Bigger Picture
While MNOs are, for good reason, preoccupied with
price and the bottom line, mobile consumers are
increasingly engaged with their mobile devices and
the human connectivity benefts they provide. A recent
immersion study conducted by Millward Brown across
What We Know
Great expectations have existed for mobile marketing
since its inception, particularly in the highly developed
Western markets. But in those markets, many early
mobile offerings irritated consumers by crashing into
what they perceived to be their private space. After
those initial missteps, a few basic rules of mobile
marketing were defned. On mobile, by virtue of its
being a lifestyle channel, advertisers must have
permission to reach consumers, and they must offer
consumers something relevant. Advertising that is
irrelevant, unwanted, or intrusive will produce a more
negative reaction in this medium than in any other.
By the same token, it is the very personal nature of the
mobile device that is fundamental to mobile marketings
potential. While people feel guarded and wary of
marketers reaching them through their phones, the
special status of the phone may also enhance the value
of a relevant message. For marketers who can harness
this potential to engage consumers and build brands,
the rewards promise to be great. And because the
mobile phone is having such a profound role in
improving the lives of those in developing African
Mobile is both a media channel in which
a brand can have a share of voice and
a phenomenon that commands a share
of lifestyle.
1. Mobile Marketing: Making a Good Connection, October 2007; Mastering the Mobile Marketing Maze,
March 2008.
43
businesses as never before. But the phone offers more
than communication to this population. For example,
Africa is home to the worlds largest mobile-based pay-
ment system, M-PESA, which allows customers
to send money to any cell phone number in Kenya.
The two-year-old service already has over 6 million
users, more than double the number of Kenyans who
have bank accounts. Westerners who have access to
checking accounts, ATMs, and wire services may not
understand the signifcance of this capability, but to the
unbanked masses of workers who would otherwise
have to endure long bus trips to deliver money to
their families in rural areas, this service represents
signifcant empowerment.
We should expect that MNOs will come to recognize
that they are not just selling airtime or minutes but are
enabling communication and commerce via mobile
technology. As such, their marketing approach will evolve
from its current focus, the acquisition and retention of
subscribers, to a broader one, providing services and
applications that capture a greater share of consumer
lifestyles. In reality, MNOs are media owners who possess
the most intimate, pervasive, and engaging media
channel yet devised. As such, they must work with
marketers to leverage the capabilities of the channel to
avoid the outcome they most fear: becoming the so-
called dumb pipe utility that merely transmits voice and
data rather than selling truly relevant products, services,
and content that consumers value.
At least one MNO, Vodacom in South Africa, has
shown that they understand the unique opportunity
offered by mobile marketing. South Africa exemplifes
the complexity and contrast that exist in Africa, with a
highly developed frst-world market alongside a
developing mass market. To serve this mass market,
Vodacom presented a free callback service called
Please Call Me. Using this advertising-funded,
text-based service, a subscriber can send a message
across any cellular network requesting a call. This
system is ideal for South Africa because it allows a
person with low income to contact someone more
affuent, such as an employer, who can absorb the cost
of the call.
seven sub-Saharan African countries demonstrated the
intimate, always-on nature of mobile phones. On
average, respondents interacted with (that is, used,
touched, looked at or looked for) their phones 82 times
per day. The activity engaged in next most frequently
just 37 times each day was the act of female
subjects touching their hair.
The same study revealed that seven out of ten people
frst experience the Internet via mobile, and for six
out of ten, it remains the main mode of access. While
these proportions may change over time, home-based
PC penetration is so low in East and West Africa that it
seems likely that mobile will remain the main mode of
Internet access for the foreseeable future.
Because in many parts of Africa, the mobile phone
provided the frst reliable and immediate long-distance
communication, it has empowered people and
It is the very personal nature of the
mobile device that is fundamental to
mobile marketings potential.
44
In areas of political or social instability, the phone can
be used to inform people of dangerous conditions due
to outbreaks of violence. This type of information is
transmitted through tools such as the Ushahidi Engine.
An outgrowth of the Ushahidi Web site, which was
developed to map reports of post-election violence in
Kenya in 2008, the Ushahidi Engine was conceived as
an open-source platform that would enable any person
or organization to gather and map crisis information.
Since its initial release, the Engine has been used on a
wide variety of projects, from tracking swine fu reports
to following the general election reports in India.
Brand owners might keep the Ushahidi example in
mind as they consider smart phone applications they
might develop or sponsor. Within major cities, where
traffc congestion seems ever present, advertisers might
produce or sponsor route fnder applications. Outside
of the cities, African citizens could beneft from
information on road conditions (since dirt roads can be
fooded out or destroyed by landslides) and weather.
The location of basic travel services, such as petrol
stations or sources of water, could also be valuable
material for mobile applications.
Conclusion
While marketers around the world have been working
hard to develop and leverage the mobile phone as a
marketing tool, they have not yet come close to real-
izing its full potential. The under-utilized power of mobile
marketing lies in the possibilities it offers for reaching
people on a level that is deeply personal and meaningful.
Through the mobile channel, marketers can tell people,
We understand the challenges you face every day, and
we can help you meet those challenges. In Africa and
other developing regions, where the daily challenges are
many and basic, marketers have a unique opportunity to
make a difference and, in so doing, may set the standard
for mobile marketers everywhere.
To read more about mobile marketing, visit
www.mb-blog.com
Implications For Marketers
In South Africa, Vodacom is doing its part to hasten
the arrival of the Perfect Calm. However, many more
MNOs will need to reach a similarly enlightened state
before the calm encompasses the continent. Until
that occurs, smart marketers must be creative and
proactive in collaborating with MNOs to bridge the gap
between current mobile tariff and service offers and
consumer needs.
Marketers in Africa and other developing markets
have the same opportunities as their colleagues in the
West to leverage the unique targeting power of
mobile. For example, by taking advantage of mobile
location-based services, marketers can target
consumers with advertising messages that are tailored
to the socioeconomic profle of a particular geographic
area. But the real opportunity in Africa, which may also
be the key to unleashing the full potential of mobile in
developed Western markets, is in acknowledging the
powerful emotional connections that people have with
their phones connections that result from the phone
making a material difference in daily quality of life as
well as enhancing and enriching lifestyles.
Many of the benefts provided by the phone in Africa
are related to basic human needs. For example,
workers can deliver cash to far-off family members,
and farmers can check local market prices to
determine the best places to sell their crops. There are
medical applications as well. In South Africa,
mobile technology allows doctors traveling to remote
villages to record patient data and send it to a central
database. In Uganda, the results of HIV/AIDS tests can
be sent directly to mobile phones, ensuring privacy
and eliminating the necessity of a follow-up visit with
a doctor.
The development of mobile marketing
will remain limited until MNOs and
marketers recognize the signifcance of
mobile phones to the lives of more than
3 billion people around the world.
knowledge
points
46
Millward Brown What are the most successful routes for advertising to children?
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
What are the most successful routes for
advertising to children?

While much advertising is aimed at a broad spectrum of children, it should be
recognized that there are wide differences in cognitive and emotional develop-
ment between younger and older children. Children pay more attention to ad-
verts than adults, particularly when they include jingles, cartoons, humor, and
elements borrowed from popular culture. This generation is Internet-savvy, and
can appreciate interactive campaigns.
While advertising is often targeted at 6- to 12-year-olds,
there are wide differences in cognitive and emotional de-
velopment between children across this age spectrum. For
advertising communication to be comprehensible, the ele-
ments of the message must be modulated to fit the needs
and skills of children at various developmental phases.
Emotional needs
Research has shown that kids go through four basic stages
of emotional needs. These overlap because different chil-
dren progress at different rates.
The Nursery stage (up to 4 years) is characterized by a safe,
cozy, warm, nurturing environment. Parental guidance is es-
sential at this stage. Toward the end of this stage kids learn
to shift their play style from playing side by side to sharing
playtime activities with friends.
The Playground stage (ages 310) is where pleasure, ex-
citement, exploration (with mom and dad) and discovery
take place. It is also a time where kids become aware of
advertising. Initially, when kids first understand that advertis-
ing is something that shows you things you can have, or ask
mom to buy, they take everything at face value, but within six
months they learn that sometimes advertising doesnt tell
the truth.
The Street Corner stage (ages 912) is when kids start to
develop a sense of identity and peer groups gain increasing
influence. While children can adopt a rebellious stance at this
point, it tends to be a safe stage, likely to be demonstrated by
their choices in fashion and music.
The Underground stage (ages 13 or over) is about being dif-
ferent, and is rarely a place where adults are allowed to ven-
ture, although some brands can exist there.
Cognitive development
When targeting children under 10 years old, messages need
to be fairly direct, and time should be presented in a linear
way. In the U.S., an ad was aired showing a schoolboy who
acts as though it were the weekend on a weekday, because
of his breakfast. The ad starts with the boy at school, then
flashes back to show him breakfasting at home, and finishes
with him back at school. More than one in five found the ad
hard to understand. While the children could play back most
elements of the story, they did not understand its progres-
sion. As a consequence only 6 percent got the message that
you could now have a weekend breakfast taste during the
week.
47
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Under-10s prefer a happy story, one that is amusing, excit-
ing or adventurous; a simple, complete story with a playful
or imaginative mood. At the younger end of the spectrum,
children enjoy slapstick comedy and simple verbal jokes.
Older children are better able to cope with more complex
messages, and tend to prefer more intricate situations, with
a realistic mood. As they grow older they are more likely to
appreciate double entendres and complex lines, as well as
cynical humor. For example, one German cereal brand intro-
duced a campaign aiming to bring kids into the brand with a
character who was designed to be a friend of the kids. The
ads encouraged the children to become part of his world
and his adventures. Six- to seven-year-old children had
problems understanding the idea, older children did not.
Children notice more
Children pay more attention to advertising. In general, ad-
vertising has three times the impact among kids as it does
among adults. They also remember it for longer, and show
greater appreciation of advertising. Similarly, they recall more
detail, as the next example shows.
This has implications for media planning and should be
considered when making decisions about media weight
and copy rotation.
Additionally, in countries where advertising is still relatively
new, children can more readily assimilate it into their lives
than their parents. Research in China suggests children un-
derstand advertising better than their mothers.
Successful routes
We have seen a wide variety of advertising styles achieve
success among children, in the context of our general find-
ings about successful advertising. In particular see our
Knowledge Point What makes a great TV ad? for our find-
ings on the importance of an ads structure.
The use of jingles and slogans helps generate impact. In
Mexico, a bubblegum brand launched a gum with a liq-
uid centre. Four ads were developed and researched. The
storylines were found to be hard to understand; as a con-
sequence brand linkage and communication were weak.
The variant name was not noticed, and if anything, the re-
spondents associated the ad with the parent bubblegum
brand. A completely new ad was created which gave a full
description of the product, and integrated the brand name
into a song that later became a ringtone. Branding and
communication improved markedly, and the brand went on
to a successful launch.
Some of the most impactful ads make use of established
branding devices, which become the hero in an action
story. Several of the most successful ads we have moni-
tored feature the animated branding device saving the
brand from a baddy so the children can then enjoy it.
Humorous ads can be very successful: over 80 percent of
the most impactful ads involve humor. Black humor (with
characters getting hurt) can be particularly popular among
older children. One of the highest-scoring ads tested fea-
tured a granny being fed to lions although this was never
aired. An ad launching a confectionery brand showed the
Millward Brown What are the most successful routes for advertising to children?
The boy gets out of bed
Goes to the kitchen
Tries to take the brand
The boy is transformed
into a monster
He says I want the brand
He begins to eat the brand
Kids recall advertising detail better than adults
37
17
37
25
42
34
24
11
24
3
37
6
Children
Adults
48
sweets being used to make a little figure who then moves
around and interacts with a pair of hands. Eventually, the fig-
ure gets annoyed with being played with and bites the hands.
The ad was hugely impactful, achieving an Awareness Index
of 25. Within eight weeks the brand achieved 80 percent
aided brand awareness and 41 percent trial, despite severe
distribution problems.
Another route that can be successful is to link your brand
to aspects of popular culture. One ad that was developed
for a U.K. confectionery brand targeted 8- to 15-year-olds
using a popular song. It was highly impactful; ad awareness
peaked at 81 percent. The ad conveyed its key message well,
and claimed purchase rose from 5 percent to 22 percent.
Through its use of the hit song, the brand was viewed as
cool. However, it is also worth noting that when the ad ran
for its third burst two years later, the song was no longer ap-
preciated, and the ad suffered as a consequence.
Cartoons can be particularly effective; 52 percent of the
most impactful kids ads use cartoons (compared with just
20 percent of the least impactful), and 34 percent of the
most persuasive ads use cartoons (compared with 20 per-
cent of the least persuasive). One brands launch advertising
used 3-D animated characters and was somewhat darker
and more mischievous in tone than most childrens ads. TV
ad awareness peaked at over 60 percent, with 40 percent
of recallers saying the ad made them want to ask their mom
and dad to buy the product for them. Within weeks, over
15 percent of the target audience were claiming to eat the
brand most weeks.
In terms of casting, it is worth noting that children see those
two or three years older than themselves as role models.
Get interactive
In many parts of the world, todays youth are Web natives;
the Internet is as much a part of their lives as TV was in their
parents youth. Many brands are capitalizing on this with fun,
interactive Web sites. This interactivity can extend to main-
stream advertising.
In the U.K., one brand used an interactive TV advertising
campaign. The first ad in the campaign ended with the
brand character in trouble. It prompted children to vote for
their favorite out of a choice of endings shown on product
packs. The follow-up ad showed part of the first ad as a re-
minder, then the ending that had achieved the most votes.
The advertising was enjoyed and appreciated, and had a
positive impact on brand metrics.
Children do not have such strong brand relation-
ships
As might be expected, children tend to be in an earlier stage
of their relationships with brands than adults are, as is shown
by the average Bonding levels of different age groups for six
categories of products and services (fast foods, soft drinks,
chocolate bars, sports clothing, TV media and cereals). The
graph indicates that the level of Bonding increases steadily
till around age 30, then falls off slightly.
0
10
20
30
40
50
Jul Aug Sep Oct Nov

One I like best
Taste really good
Are fun to eat
Liked by friends

0
250
Ad
One
Ad
Two
Ad Two
Re-edit
Good impact on core image statements
Kids are less likely to bond to brands
Age
10 0
0
20 30 40 50 60
10
Average Bonding UK/U.S.
B
o
n
d
i
n
g

(
%
)
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown What are the most successful routes for advertising to children?
49
This lack of Bonding highlights the need for marketers to be
particularly vigilant to ensure their brands stay relevant.
The need for a strong product
As with adult brands, strong advertising cannot make up for
a weak product. One brand was launched using well-known
cartoon characters as the advertising vehicle. The ad was
enjoyed, with two-thirds describing it as one of their favor-
ites, and it generated a strong interest in trial. After three
months, awareness had reached 73 percent. However, after
a successful launch, trial levels soon dropped off. Questions
to those that had tried the brand revealed that the product
simply did not live up to the great advertising.
www.millwardbrown.com
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
After a successful launch, share drops off
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
W
k

0
1
W
k

0
2
W
k

0
3
W
k

0
4
W
k

0
5
W
k

0
6
W
k

0
7
W
k

0
8
W
k

0
9
W
k

1
0
W
k

1
1
W
k

1
2
W
k

1
3
W
k

1
4
W
k

1
5
Weekly value share of ready to eat cereals for multiple grocers
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown What are the most successful routes for advertising to children?
50
Millward Brown How to make the best use of music in an ad
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
How to make the best use of music in an ad


Music can be a powerful enhancement for an ad, when it is used well. Although
the use of music does not automatically confer benefits, the inspired use of the
right music can affect every aspect of an ads performance.
Music is a regular component of TV advertising. About seven
in 10 ads in our Link database have some form of music, but
it varies enormously across the world, ranging from around
95 percent in Romania and the Ukraine, to under 40 per-
cent in Denmark, Serbia and Montenegro, India and Egypt.
While most ads have some music, its presence or absence
has less impact on the commercials performance than the
way in which the music is deployed.
Engagement
The biggest benefit of using music is that ads with music
tend to be slightly more enjoyable; this effect is a little more
marked in Europe.
The use of music which has been specifically adapted for the
brand can further boost levels of enjoyment. So too can the
use of well-known music.
Two versions of an ad for a mobile phone network were test-
ed. The ads were identical, except for the choice of music.
One used a well-known song, Teenage Kicks, the other used
a song that had not been a hit. The differences were clear:
the Teenage Kicks soundtrack positively benefitted both ra-
tional and emotional responses.
However, this result is not guaranteed. An ad for a body
moisturiser featured the well-known music Bittersweet Sym-
phony by the Verve. It performed well. Two alternative ver-
sions were also tested with unknown music. One performed
significantly worse, but the other performed as well as the
Bittersweet Symphony edit.
The way the music is used can have a powerful effect on the
levels of interest in the ad. In Australia, an ad for a non alco-
holic beverage, featured a well-known piece of music. While
the visual pace of the ad remained fairly level throughout,
the music began after the first six seconds of the execution,
and built in intensity. The music then stopped for about five
seconds, before continuing quietly in the background for the
remainder of the execution. The interest trace clearly dem-
onstrated the impact the music had on interest in the ad.
The positive reaction to this track helped generate a stronger response to the brand,
both rationally and emotionally
Annie
%
Teenage Kicks
%
Told me something new 62 74
Suggested that the brand is popular 59 72
Was entertaining 50 76
Suggested that the brand is exciting 44 54
Better than most adverts for mobile phones 38 48
Made me think again about the brand 38 49
Made me think the brand is
really different to other networks
25 29
(117) (117)
Significant difference
51
Branding
When the music has been used previously in ads for the
brand, branding indexes at 103. Also, incorporating the brand
name into the music can have a beneficial effect on brand-
ing; here the branding score indexes at 104. The use of
jingles, not surprisingly, also aids branding, which indexes at
103. It is of interest to note the decline in the use of jingles in
the U.K. and the U.S. (the two countries where we have been
monitoring this information over the longest time period).
Music can provide a powerful influence on branding. In the
U.K., when asked for their memories and associations with
Cornetto ice cream, 25 percent of respondents mentioned
the music, a variant of O Sole Mio, even though it had not
been used by the brand for 12 years. An ad for a deodor-
ant featured the song Move Closer. The song was well liked
and a focus of recall from the ad, but branding of the ad
was weak. The ad was re-edited, with the brand name be-
ing included prominently in the song. The ads efficiency
doubled.
Understanding
When the music has been used before, understanding is
boosted, particularly in North America , indexing at 103.
Music containing the brand name has a similar beneficial
effect on understanding. However, in Europe, the use of
prominent music tends to weaken understanding (indexing
at 98).
An ad for a brand of beer was tested in two edits: one fea-
tured mellow music, the other featured upbeat music. The
version with mellow music was enjoyed more, and was con-
sidered easier to understand (84 percent vs 71 percent).
Analysis showed this was because the upbeat music actu-
ally drowned out some of the key parts of the conversation
in the ad; respondents were unable to follow the story.
Communication
Overall, there is little evidence that the use of music aids
communication, even when it is connected to the mes-
sage.
Nonetheless, on an individual basis, there are exceptions
to this pattern. Two ads were tested in the U.K. for a car
launch. The ads were identical except for the music. One
used the well known song Anything You Can Do, the other
a song less well-known. Responses to the ad were mark-
edly different. Communication from the Anything You Can
Do edit focused far more on an argument between the
characters in the ad, whereas the alternative version was
less confrontational. As a consequence, the ad with the less
well-known music produced far stronger results, and was
the version that was successfully aired.
Use of jingles in decline
0
5
10
15
20
25
A
d
s

w
it
h

jin
g
le
s
/
s
lo
g
a
n
s

(
%
)
Year
1
9
9
0
1
9
9
1
1
9
9
2
1
9
9
3
1
9
9
4
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
U.K. % with jingles/slogans U.S. % with jingles/slogans
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown How to make the best use of music in an ad
No music No music Music build
Background
music
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
The interest trace closely reflects the changing use of music
Time (seconds)
52
Persuasion
Overall, the use of music has no effect on persuasion. In
specific instances, however, if the right choice of music en-
hances communication, it can improve persuasion. In one ad
we researched for a brand of ice cream, a change in music
highlighted a change in atmosphere in the ad, which helped
clarify the story and enhance the communication. Persua-
sion improved from an already strong 16 to a powerful 24.
Enjoyment of the music
Choosing music that is enjoyed can boost an ad. Looking
at U.K. ads, when the music is liked, not only are the ads
enjoyed more and found more involving, but branding is also
stronger, and so is persuasion (when advertising is disliked,
this can depress the persuasion score see the Knowledge
Point What Makes an Ad Persuasive for more details).
The edit
The way the music is used can also have a major effect. In
the U.S., ads in a campaign for a food brand all featured the
same song, but in different edits, with some being more up-
beat than others. While the ads with the most upbeat music
were enjoyed the most and were found to be the most in-
volving, branding and communication were strongest when
the mid-paced music was used.
It isnt just the song that counts, the part of the song you
use can make a difference. One brand made two edits of
an ad, both featuring the song Always Look on the Bright
Side of Life. One focused on the upbeat chorus, while the
other included the downbeat verse If life seems jolly rot-
ten. Since the ad was structured around a problem/solu-
tion scenario, this latter approach was more suitable. Enjoy-
ment of the ad grew from 42 percent to 59 percent.
Wear-out
One issue facing ads which are reliant on music is the pos-
sibility of wear-out. Wear- out is rarely seen in TV ads, how-
ever, when the ad is reliant on a fashionable song, an eye
Top 10% music enjoyment
Bottom 10% music enjoyment
Enjoyment
(Mean Score)
Involvement
(Mean Score)
Branding
(Mean Score)
Persuasion
Base (162) (162) (162) (102) (164) (157) (162) (118)
3.71
2.89
5.03
4.33
3.89
3.58
15
10
U.K. Link
Top 10% music enjoyment Bottom 10% music enjoyment
U.K. Link
3.71
2. 89
3. 89
3. 58
15
10
5. 03
4. 33
Enj oyment
( mean score)
I nvol vement
( mean score)
Brandi ng
( mean score)
Per suasi on
Base ( 162) ( 162) ( 162) ( 102) ( 164) ( 157) ( 162) ( 118)
Enjoyable music boosts ad responses
Overall, the use of music has little effect
Ads containing music are overall slightly more enjoyable
Music used
Enjoyment
Involvement
Branding
Persuasion
Appealing
Understanding
Key Benefit
Base: Global ads
98
100
100
100
99
100
102
c (11,000)
Yes average No average
101
100
100
101
101
99
101
c (24,000)
Attitudes towards the ads contrast strongly
Prompted attitudes
Does this phrase apply to the advert?
Alternative
%
Anything You
Can Do %
It was entertaining 77 54
It suggested that the car is popular 75 54
I was interested in seeing what happened 65 43
I liked the characters in it 65 37
53 26
It made me think again about the car 52 35
Better than most ads for cars
48 26
It made me feel more positive about
the car manufacturer
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown How to make the best use of music in an ad
53
needs to be kept on that fashion. An ad for a confectionery
brand was focused around a hit song. It was aired in three
bursts over two years and targeted teenagers. By the third
burst, endorsement of Its amusing had dropped from 81
percent to 63 percent, enjoyment from 71 percent to 56
percent, and a quarter found the ad irritating.
Music can be hugely beneficial for advertising, but only when
its role has been carefully thought through.
www.millwardbrown.com
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,000 case studies, 700 conference papers and magazine articles, and
250 Learnings documents.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown How to make the best use of music in an ad
54
Millward Brown Targeting the over-50s market
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Targeting the over-50s market

The over-50s market represents an opportunity for most marketers. In devel-
oped markets, they are relatively prosperous, and are open to new ideas. As
heavy media consumers, they can be reached more easily than many segments;
but in terms of tone and content, communications need to be carefully targeted
for this audience.
The over-50s market can provide great opportunities for
many brands; approximately one in three citizens in Europe
and the U.S. are now over 50 years of age.
Finances
In many markets, the over 50s are, overall, relatively pros-
perous. TGI analysis shows that in the U.K. over 45s have ap-
proximately 80 percent of all financial wealth. In the U.S., over
55s control 77 percent of financial wealth. Not surprisingly,
then, the over-55 age group accounts for approximately half
of all spend on food, drink and household products, in the
U.S.. Focalyst a Millward Brown North American practice
specializing in Boomer research shows that 75 percent of
the U.S. Boomer population has some sort of investment.
Attitudes
In general, with age comes a sense of increased confidence.
Membership of a tribe becomes less important, and a
sense of identity is more likely to come from within. As a
consequence, older people are not a homogenous group;
health, wealth and lifestyle attitudes also play a role. Some
prioritize holidays, some prefer to lead a quiet life at home,
entertained by the TV, some seek new experiences, while
others aim to become influential within their communities.
There are signs of an older mindset. TGI analysis contrasts
the attitudes held in 1987 by 3055 year-olds with those
they hold now as 5075-year-olds, relative to the rest of the
population in Great Britain.
They:
Are less likely to snack between meals
Are more likely to buy British-made goods
Are more likely to buy clothes for comfort
Feel more strongly that fast food is all junk
Are less tolerant of untidiness
And are much less likely to enjoy a night out at the
pub
In these respects they have more in common with the pre-
vious generation of 5075 year olds than with their own
younger selves.
In China, qualitative work reveals that older Chinese con-
sumers, having spent many years bringing up their children
(the one child policy only started only in the late 70s), start
re-looking at their lifestyles after retirement. They begin to
Less likely to agree relative to
all adults than 30-55s in 1987
More likely to agree relative to
all adults than 30-55s in 1987
%
I dont normally eat between meals
I buy goods produced in my own country whenever I can
I buy clothes for comfort, not style
I really enjoy a night out at the pub
I cant bear untidiness
I dont like the idea of being in debt
-50 -40 -30 50 40 70 60 90 80 30 -20 20 -10 10
I think fast food is all junk
0
55
spend more time on their interests and hobbies, bettering
themselves, and (in the primary cities) learning PC skills.
Nonetheless, they seek social belonging and attend gather-
ings with people their own age. One major difference with
Western economies is the respect and reverence in which
the older generation is held in China.
In Brazil, changes in the law have resulted in greater facili-
ties for the over 50s: special lines in public services, special
features in toilets and showers, and special seats in public
transport. There is a growth in the number of gyms catering
for mature consumers.
Attitudes to brands
While there can be an assumption that older people are set
in their ways, this older target can be experimental users of
new offerings. A study conducted by Millward Brown Firefly
Australia suggests that those in the over-55 age group are as
open to new opportunities and experiences as the younger
targets. Endorsement of the statement, I am adventurous
and will try new brands and products before anyone else,
was 21 percent for the under 55s, and 22 percent for the
over 55s.
Similarly, a report by Focalyst revealed that older consum-
ers are as likely as younger consumers to experiment with
different brands (67 percent for 1841 year olds versus 61
percent for 4259 year olds). Their analysis also suggests
that brand loyalty is primarily a function of product type,
rather than the age of the consumer. Of the 10 categories
they studied, seven had nearly identical levels of single prod-
uct loyalty across age groups, the exceptions being cars and
airlines (where the older group were more likely to be loyal)
and music and video players (where the older group were
less likely to be loyal).
This willingness to experiment should not be surprising.
There are several major life-changing experiences this gen-
eration can go through, all of which can stimulate changes in
their buying behavior; these include children leaving home,
retirement, paying off the mortgage, loss of a spouse, and
inheritance from parents.
They are also just as likely to shop around. Analysis of de-
veloped markets shows that within food related categories,
there is little difference in brand loyalty amongst the over
-50s age group than for those aged under 35 years (who
are typically assumed to be the experimenters/early adopt-
ers).
Naturally, loyalty varies by category. According to Focalyst,
while 39 percent of U.S. Boomers feel, It doesnt matter
which company I use for cruise lines, this drops to 7 per-
cent for banks.
Among the over 50s, there is often a desire for luxury, qual-
ity, and self-indulgence. There is also a greater need for,
and hence interest in, health-related products. In China the
cost of medical care is high, so health tonics are popular.
The market for tonics is huge, and substantially heavier
than five years ago.
Media consumption
A benefit of advertising to this target group is that they are
heavy consumers of traditional media. A Focalyst analysis
of U.S. consumers aged over 50 shows that, on average,
they spend 110 minutes per day reading newspapers or
magazines, 53 minutes listening to the radio, and 167 min-
utes watching TV. Nonetheless, they are not averse to new
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Targeting the over-50s market
Food related categories
Consistent between emerging and developing markets
Brand loyal 11% Brand loyal 15%
Repertoire 43% Price driven 42% Price driven 42% Repertoire 47%
Under 35s 55-70s
Developed Markets: U.S., Germany, Italy, Japan. Emerging Markets: China, Brazil, Mexico
Source: BrandZ, selected countries, 1998-2006
56
technology: 50 percent access the Internet daily and this
age group makes more purchases online than by mail and
telephone combined. This acceptance of new technology
reaches even further; over a third of U.S. consumers aged
over 62 are connected to the Internet.
Advertising content
Like any advertising, when targeting the Boomer generation,
ads that demonstrate a genuine understanding of the tar-
gets needs, not just their date of birth are most effective.
Focalyst analysis in the U.S. shows that the over-50s popula-
tion is more likely to find advertising in general to be insulting
or condescending.
Qualitative feedback highlights the need for advertising to
reflect a lifestyle that is dynamic, active and optimistic. The
over 50s are aware of the problems associated with aging,
and prefer to see it portrayed in a positive light. For example,
an ad for an incontinence product was tested in two edits. In
one, the emphasis was on the lack of confidence of the suf-
ferer, while the other focused on the confidence she felt by
using the product. The latter version was preferred.
Similarly, in Columbia, the leading incontinence brand ad-
opted a new strategy, of educating the consumer about
incontinence, as well as demonstrating the practical and
emotional benefits of using their products. This resulted in a
major change in attitude towards the category.
Research in Mexico explored the appeal of a range of posi-
tionings, to understand how this group related to their age.
While the concept the road traveled was worth it had some
appeal, it was dismissed as suggesting closure the lack of
a future. Similarly the message Youve met your commit-
ments, now you owe nothing, also portrayed the view that
no one was expecting anything of them any more. The idea
of enjoying your achievements resonated better, as did now
is the time to enjoy life (although it had the implication that
life has held no enjoyment until now). Coupled with this,
ideas suggesting that now is the time for you holds an in-
vitation to pamper as a reward for sacrifices made, and were
well received. In general, the research found that it was bet-
ter to present the past in a positive way, but to acknowledge
that a future still exists. There was also appreciation of the
value of knowledge and experience gained.
Qualitative research shows that, as with all advertising, en-
gagement is key, and relevance remains crucial. Shared his-
tory and life stage events can create meaningful connec-
tions. For instance, one common problem faced by many
in this age group is reigniting love once the children have
left home, but this is a life stage problem not often acknowl-
edged or discussed. Another factor, common to over 50s
around the world, is that they like to see old age portrayed
as a happy phase of life.
Avoid stereotypes; instead play to their sense of intelligence,
wisdom and confidence. In some Asian countries, such as
China, the family plays an important role, and grandchildren,
in particular, are viewed as the emotional fulfillment for this
generation.
Data from our U.S. Link database indicates that, in many
respects, the older generation respond to ads similarly to
their younger counterparts. However, there are differences.
The over-50s market is more likely to appreciate familiarity
(familiar music and slogans that had been used previously
for a brand/campaign) and nostalgic style ads. Animals and
children are more likely to make involving and enjoyable
viewing. Focalyst report that 62 percent of the over-50s
age group (and 74 percent of over 60s) agreed that todays
Tracking showed increased confidence in buying incontinence products
Measurement 1
Year 1 Year 2 Year 3
Measurement 2 Measurement 3
Yes 62%
No 38%
Yes 67%
No 33%
Yes 95%
No 5%
Do you feel comfortable buying incontinence products?
Beginning of the change in communication
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Targeting the over-50s market
57
advertising was too weird to resonate with them (vs 39
percent of 1841 market).
Humor was not seen to be as appealing to the older target
as for the younger age group, although this could be due
to the nature of the humor in the ads. Qualitative feedback
shows that humor specifically targeted at this generation can
be appreciated.
Nonetheless, it needs to be recognized that in many parts
of the world, this generation has spent most of its life be-
ing exposed to advertising, and established associations can
be hard to shift. For example, in the U.K., three-quarters of
older consumers remembered advertising for the ice cream
brand Cornetto advertising which had not been on air for
12 years. It is likely to be particularly hard to shift perceptions
of the brand for this group.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Targeting the over-50s market
www.millwardbrown.com
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
58
Millward Brown Using consumer sales promotions to benefit the brand
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Using consumer sales promotions to benefit the
brand
Consumer sales promotions can be an effective marketing tool, and when used
well, can build equity. But successful promotions need to be simple, offer a real
benefit, and be communicated clearly.
Sales promotions are a common means to market brands.
Price promotions are dealt with specifically in the Knowl-
edge Point Price promotions: how to make them work for
your brand. This Knowledge Point explores free gifts, games
and other reward programs. These can be very successful,
particularly for childrens brands, but it is essential to be clear
on your strategy. The benefit of most promotions is a short-
term sales response rather than equity building. Additionally
you should be clear whether you are aiming to draw in non-
users, increase usage, or build loyalty among existing users.
While promotions have been around for many years, they
are well positioned to adapt to the digital age. One promo-
tion for a snack brand targeted at 6- to 11-year-olds required
participants to text details from the pack to see whether they
had won; this was illustrated by an accompanying TV ad. The
promotion was understood, and 20 percent claimed to have
participated a good result given that a high proportion of
this age group did not own a mobile phone. The campaign
boosted perceptions that the brand was cool, and usage
measures improved.
Using promotions to build equity
While it is rare for them to do so, promotions that are part
of a well-established, ongoing campaign theme can build
brand equity. One new snack brand, using an established
campaign theme, introduced a scratchcard promotion from
April to July. Awareness of the promotion peaked at 15 per-
cent, trial levels increased sharply during the promotion:
The brands BrandDynamics
TM
equity pyramid also grew, al-
though the effect was short-lived.
0
20
40
60
80
100
A M J J A S O N D J F M A M J J A S O N D
Favorites
Have in
lunch box
Ask mum
/dad for
Eat
nowadays
Aided
awareness
GRPs

0

500
669
532 Brand Q
Kids 4-9
Response to the text to win promotion was clear
0
20
40
60
80
Ever tried


Adults
250
0
GRPs per week
Promo
ad
Adults
J S N J M M J S N J M M J S N
Brand benefit short lived
Bonding
Advantage
Performance
Relevance
Presence
Base: Total
sample

Mar - May
(588)
June - July
(260)
Aug - Sept
(279)
56%
36%
34%
23%
4%
65%
48%
43%
33%
5%
59%
42%
38%
27%
4%
59
Promoting the promotion
Consumers need to be made aware of the promotion. One
confectionery brand ran an annual promotion. One year it
centered on glow-in-the-dark figures. An accompanying TV
ad was engaging and impactful, but failed to communicate
the figures. Awareness among adults was very low, but even
among children, who are more likely to notice promotions,
only 20 percent recalled the figures from the advertising, so
participation was lower than in previous promotions.
In-store support
Some promotions depend on in-store support. Because this
support cannot be guaranteed, promotions awareness can
be affected. For example, one premium Chinese juice brand
was not supported with TV as other market-leading brands
were, but relied instead on promotion as one of the key mar-
keting activities to grow the brand. It launched two promo-
tions to generate a higher level of trial, Lucky Draw and Buy
X Get Y. But these promotions failed to generate an increase
in sales; only 1 per cent claimed to have participated. Analy-
sis showed that there was low awareness mainly because
less than a third of the stores carrying the brand supported
the promotion.
Conveying the benefits of the promotion
Another promotion failed because its appeal was not prop-
erly conveyed. Developed for a childrens cereal, it was very
well received in qualitative research, and, of those who re-
ceived the promotion, 65 percent rated it as an exciting new
idea higher than any other promotion monitored in the
category. Following the advertising, two-thirds of the target
audience were aware of the promotion. However, take-up
was weak. Analysis showed that while the advertising had
conveyed the name of the promotion, its key benefit was
taken in by just 19 percent of the audience.
In general, children have a higher opinion of promotions
than adults. In one category the average excellent rating
was 19 percent for children, 11 percent for adults.
Keep it simple
When it comes to promotions, simplicity is key. Analysis
from one cereal market showed that awareness was more
likely to convert to interest when the promotion was in the
pack, than if it had to be sent away for.
63 44
57 31
Awareness
Interest
In-packs exceed send-offs in both awareness and interest
Cereals - children
Average in-pack
Average send-offs
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Using consumer sales promotions to benefit the brand
www.millwardbrown.com
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
GRPs per week
0
10
20
30
40
Claimed awareness of snack brand promotion


S J



0
250
Ad A

184
Ad B



GRPs per week
0
250
Ad A

200
Promo


Children
Adults
Adults
Children
Promo
Ad 177
611
O N D F M A M J J A S
Ad 194
Ad B 712
60
Millward Brown What are the pitfalls of using sexual imagery in advertising?
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
What are the pitfalls of using sexual imagery in
advertising?

Using sexual imagery in ad campaigns, especially those aimed at the main-
stream audience, is a risk that should be carefully considered and measured.
While it can grab attention and help position a brand, there are significant draw-
backs to be considered; the acceptability of sexually charged images varies con-
siderably across cultures. Women can find ads that portray them in subservient
roles, offensive. Additionally, the sexual content may overshadow the intended
message.
Sexy 33
Fun 25
Playful 21
Adventurous 19
Rebellious 17
Desirable 14
Creative 9
Assertive 1
Brave 1
Different -2
Generous -4
Trustworthy -7
Idealistic -7
Friendly -8
In control -9
Kind -11
Wise -12
Innocent -13
Caring -15
Straightforward -23
What is positive about the brand?
(Base 385)
2007 - U.K. - Deodorant (Male) - Lynx
The Brand Dynamics Pyramid and the underlying methodologies are the copyright of Millward Brown
The benefits of sexual imagery
The use of (typically female) nudity and sexuality in advertis-
ing copy dates back to the 1870s. Today, the images may
look a little different, and are often somewhat more explicit
but the role that sex plays in marketing communications
remains fairly unchanged.
Sexual imagery can grab attention and, depending on how
it is represented, imbue a promoted brand with qualities of
desirability, sensuality, youth, vitality and indulgence. This is
more typically utilized by high fashion and luxury brands, as
well as indulgence foods such as ice cream and chocolate.
The use of sexual imagery in advertising can also convey the
effect (direct or otherwise) that a product or service will have
on the users attractiveness to the opposite sex.
A good example is the Lynx brand in the U.K. After years of
conveying sexual imagery in its advertising, the brand has a
sexy, fun and playful personality.
The risks of sexual imagery
While viewer reaction may be strong, it is not always positive.
In the same way that consumers react to humor, the reac-
tion to sexual themes is individual and personal. As a result,
a scenario which can surprise and interest some viewers, can
irritate and offend others. An offensive ad can be banned
from air and worse, it can leave an unintended negative sen-
timent even among the brands users.
61
In an ad for an indulgence food targeting young adults, the
sexual imagery used in the ad was moody, edgy and dark.
The ad was found involving, but, for a significant proportion
of respondents the involvement was negative. For them, the
tone and images were disturbing, unpleasant and irritating.
Even among the under-35 age group, one in three viewers
described the style as too provocative. For a significant por-
tion of the target market, the brand became significantly less
appealing as a result of viewing a sexually charged execution
that engaged them negatively.
Sexual imagery can be a distraction
Because of the attraction that sexual content wields, it can
easily overshadow the intended brand and communications.
An example of this is an ad aired in Germany to launch an
enhanced variant of a recognized staple food brand. The ad
was provocative, featuring three nude people. Understand-
ably, it caused quite a stir. Its performance was tracked to
show that while the creative was well recognized, the mes-
sage was missed. Despite the attention it commanded, the
execution was unsuccessful at supporting the launch.
Cultural differences
A further consideration is that the acceptance of sexual con-
tent in advertising varies greatly across cultures. The evidence
from our review of ads across the globe shows that use of
sexuality in advertising should be carefully considered to fit
the cultural norms, target market and brand values. Without
a sound understanding of how the consumer will react to the
creative, the use of sexuality can be a risky strategy. Cultures
differ markedly in their attitudes to sex and nudity in gen-
eral, and also to its use in media and advertising.
One personal care brand has used a campaign featuring
sexual imagery globally, to great success. The enjoyment
scores for the ads using this theme index at 108 (com-
pared to an index of 100 for the ads before the campaign
started). The branding scores index at 104 (compared to
89 before the campaign), and brand appeal indexes at 103
(compared with 95 before the campaign). However, these
global scores exclude Asia, where the campaigns perfor-
mance was weaker than the previous ads.
In China, strong sexual imagery does not work and actually
can turn people off. This culture views sex as something
that is alluring, but only when it supports wider views on
love, marriage, career and success. Of course, the brand
provenance plays a role; foreign brands can (in the eyes
of consumers) have greater license to explore their sexual
side, but not Chinese brands. Another issue is that advertis-
ing content is strongly controlled by the state so advertis-
ers need to understand local censorship laws. Censorship
rules dictate not only the content in advertising, but also
when advertising for certain products can be shown (for
example femcare products cannot be advertised during
dinnertime).
An ad for an indulgence food targeted at Malaysian women
failed because it did not resonate with how the target mar-
ket related to sexual imagery. Indulgence was depicted
within a sexualized intimacy between a woman and a man
where the women showed preference for the food. Young
Malay women rejected the ad because they found the sex-
ualized behavior unrealistic and outside their moral code.
This is not just an issue in the conservative cultures of
the Middle East and Asia, it can also be observed across
seemingly homogenous Western markets. Lycra (stretch
fabric) was promoted across Europe as adding comfort to
clothes. The textile is most recognized for its use in under-
wear, hence fittingly, the creative featured beautiful women
being active in various states of undress. The ad was hugely
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown What are the pitfalls of using sexual imagery in advertising?
Disturbing 23 7 16
Unpleasant 17 4 13
Distinctive 61 50 11
Irritating 16 5 11
Interesting 25 19 6
Involving 49 49 0
The high involvement score comes in part from negative feelings towards the ad
much more disturbing, unpleasant and irritating than average
1534 years old Difference Average
62
enjoyable to the female Italian viewers but failed to impress
U.K. women who disliked it because it was too sexy and
even sexist. The interest traces below highlight the lack of
interest shown by the U.K. women.
In a similar example, a TV advertisement for a skincare prod-
uct was researched in Germany and the U.K. The ad featured
a naked woman dancing in the shower while using the prod-
uct. Whilst the scenario was liked by women in Germany,
the English scored the ad significantly below average on the
same measure, largely because they disliked the woman.
It is worth noting that in the U.K. 2025 percent of the ads
that the Independent Television Commission (the official
body) receives complaints about, feature sexuality that was
deemed inappropriate for a general audience or demeaning
to a particular gender typically women.
One ad for a shower gel in Germany featured a nude female.
To illustrate her pleasure at using the product, a voice-over
moaning with pleasure was added. As this approach had not
been attempted by the brand before, the same copy but
without the moaning soundtrack was tested at the same
time. The difference in results was clear. While the version of
the ad with moaning was significantly more actively involv-
ing (interesting, distinctive, involving) some found it unpleas-
ant and irritating; 20 percent specifically said they disliked
the girl moaning. More importantly, 26 percent of viewers
exposed to this version said the brand was less appealing to
them after viewing the ad compared to 11 percent who
saw the alternate version (on a par with country average).
An ad aimed at German teens featured nudity within a con-
text of a beach scene. This was criticized by a number of
viewers, but otherwise the ad performed well. The execution
was re-cut with a less explicit beach scene and researched
again. The dislikes of the ad were minimized, and the posi-
tive aspects relating to the humor and communication were
unchanged. The ads impact improved.
The gender divide
Men respond very actively to images of female nudity. The
most obvious example is an interest trace output compar-
ing the response of male and female respondents to a copy
for a deodorant. The scenario involves a race against time
Italian women show far more interest than U.K. women
U.K. Italy
I
n
t
e
r
e
s
t
I
n
t
e
r
e
s
t
Time Time
Likes are average in Germany but below the country norm in the U.K.
German
%
German
average %
U.K. %
U.K.
average %
Any likes
Any dislikes
Personal likes %
Personal dislikes %
26
15
18
12
2
23
10
6
75
79
60
70
52
54
47 45
While the ad is able to strengthen brand appeal, the negative response towards
moaning negates this
26
Moaning
%
Body
%
Total Country
norm %
Much more appealing
A little more appealing
A little less appealing
Much less appealing
Mean score: (+5 to +1)
Base: Total sample
9
28
37
14
12
3.08
(100)
20
42
17
3
8
3.53
(150)
12
42
17
3
8
3.53
(159 ads)
It didnt change my feelings
In contrast to the original version, little polarizing
effect was evident for the re-edit
Re-edit
%
Original
%
Germany
average %
Likes
Dislikes
(100) (100) (350 ads)
98 94
80
29
67
52
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown What are the pitfalls of using sexual imagery in advertising?
63
in which a woman is rushing to get dressed in time to greet
her date who is making his way up to her apartment. Its an
entertaining ad which performs well overall, but what is in-
teresting here is that for the male sample, the interest peaks
each time the visuals shift to the semi-dressed woman, and
dips as soon as the scene changes to the man. This pattern
of rise and fall in interest is repeated throughout the entire
sequence. In contrast, female interest is related to the story
line.
When used in advertising targeted at men, sexual imagery
commonly references conquest. Quite often this is ac-
companied by visuals of attractive and sexualized women.
While this can appeal to the male audience, it can alienate
the female consumer. An ad for a confectionary product was
found offensive by a high proportion of women. The source
of the offence was not nudity or implied sexual behavior per
se, rather it was the portrayal of the female characters as
sexually subservient to a group of males.
Avoid upsetting the mainstream audience go
viral
If your target market can be reached online, then ads featur-
ing sexual content could be delivered via this channel rather
than through the mainstream media, which also reaches out
to consumers who could potentially take offence.
In the U.K., an ad for IKEA Pig Hunt was found to be
polarizing in terms of humor. The ad features a near-naked
couple caught playing farmyard by their children. The kids
embarrassment at catching their parents in a sexual romp
was not comfortable for everyone, and many found the ad
disturbing, shocking or repelling; but, in a study covering 29
ads, the IKEA ad was the second most likely to be passed
on.
Enjoyment shows a polarization between men and women
Men
%
Women
%
Enjoyed watching it a lot
Quite enjoyed watching it
Didn't mind watching it
Didn't enjoy watching it much
Didn't enjoy watching it at all
Mean score (+5 to +1)
Base: Total
3,46 2,90
(50) (50)
8
16
6
28
14
42
26
8
20
32
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown What are the pitfalls of using sexual imagery in advertising?
www.millwardbrown.com
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,000 case studies, 700 conference papers and magazine articles, and
250 Learnings documents.
64
Millward Brown Is there value in comparative advertising?
1
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Is there value in comparative advertising?

Comparative advertising can be effective even when it does not disclose the
name of a specific competitor. However, caution should be taken before employ-
ing a comparative ad strategy. There are some common pitfalls that can intro-
duce risk to the advertised brand.
Comparison to unnamed competitor: Global indices
Base
104
100
103
100
103
100
103
100
102
100
(887)
(30,925)
(886)
(31,172)
(886)
(26,045)
(1,308)
(43,169)
(987)
(35,568)
Relevance Index
New Information
Index
Key Benefit Index
Understanding
Index
Persuasion FMCG
Index
Compar i son to
Unnamed Compet i tor
No Compet i t i ve
Compar i son
Comparative advertising compares the advertised brand with
a named or unnamed competitor to make it look superior
or more appealing. Most countries outside the United States
have banned advertising that makes a comparison with a
specific competitor (although advertisers can still reference
undisclosed competitors). In the United States, advertising
that mentions named competitors is tightly regulated and
must be substantiated, truthful and not misleading.
Of the 57,000 ads in our Link copy testing database, 4 per-
cent can be classified as comparative advertising. The United
States, India and the Philippines have a higher proportion of
comparative ads (7 percent) followed by Taiwan, Australia
and Brazil (4 percent). Europe has tested the least num-
ber of comparative ads, which is probably an indication that
these are less common in European advertising.
Do comparative ads work?
Data has shown that comparative advertising can be effec-
tive, even when the competitors name is not disclosed. In
the following chart, all figures are indexed on global norms.
Ads that make a comparison with an unnamed competi-
tor are more likely than other types of ads to contain rel-
evant and new information, and better communicate the
brands key benefit. The ads are also easier to understand
and slightly more persuasive (but no different on enjoyment
or involvement).
U.S. data also shows that ads which make comparisons
with a named competitor are stronger on persuasion. Rel-
evance, understanding and key benefit communication are
also higher than in ads without any competitive comparison
(as was also seen for undisclosed competitors in the global
data). There are no differences in enjoyment or involvement
scores.
65
A pet supply company in the United States used Link to
research two ads with different creative elements and sto-
rylines, which both mentioned why a specific competitive
product was inferior. Both ads were extremely persuasive,
scoring in the top 6 percent of our database, driven by very
strong news and relevance scores. The competitive compari-
son message resonated with consumers and came through
at levels well above average, helping drive the motivating
power of the ads. The fact that the ads had different cre-
atives yet were both very persuasive underscores the value
of the competitive comparison.
What to watch out for
The acceptability of comparative ads will vary from coun-
try to country depending on culture. In some countries
comparisons are seen as arrogant and inappropriate, and
therefore should be avoided. Even in accepting cultures,
employing competitive comparisons can be a risky strat-
egy, particularly when you are naming a specific competitor.
Misattribution should be a concern. We know that people
watch ads passively, and there is a danger that the positive
points you want to communicate about your brand could
be attributed to your competitor.
Comparative advertising generally works best in categories
where benefits are very rational and there is very little emo-
tional benefit. A well-remembered claim for efficacy could
be enough to influence brand choice at the point of pur-
chase. However, this type of ad almost inevitably provides
fewer opportunities to build the emotional and image side
of brands, as the focus of the ad includes another brand.
We have developed a few rules of thumb based on an-
ecdotal findings:
The big guy should not be seen to be picking on the
little guy.
The advertising should not be mean-spirited.
It is best to use symbols for competitor brands rather
than the actual products or brand names. This limits
the potential for misattribution and liability for defama-
tion of character, since you are not directly attacking a
competitor.
Comparative advertising gone too far
Some comparative advertising crosses a line and makes an
unsubstantiated negative claim about a competitor. Com-
monly referred to as a smear campaign, this represents
an intentional attempt to undermine a competitors reputa-
tion, credibility or image.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Is there value in comparative advertising?
Comparison to named competitor: U.S. indices
Base
105
101
103
99
103
100
102
100
(46)
(1,343)
(159)
(5,223)
(105)
(3,533)
(157)
(5,002)
Key Benefit Index
Understanding
Index
Persuasion FMCG
Index
Relevance Index
Compar i son to
Named Compet i tor
No Compet i t i ve
Compar i son
Persuasion - FMCG top box - pet supply company
How will the commercial affect your use of XXXX?
60
55
50
45
40
35
30
25
20
15
10
5
0
0.5 %
0.5 %
1%
1%
2%
5%
10%
17%
24%
26%
12 %
3 %
Creative 2 (43%)
Creative 1 (34%)
Average (18%)
Base: 1332 USA - English - Online TV ads
% endorsing
or
...strongly
encourages me to
continue using it
...makes me much
more likely to
consider choosing
it again
or
...makes me much
more likely to try it
in the near future
66
This was seen in Mexico when a new yogurt brand claimed
that the leading brand in the category caused weight gain.
While the category leaders name was not mentioned and
its package was not shown in the advertising, there were
some obvious brand cues which made it clear which brand
it was. The negative message about the category leader got
through to consumers (although the new brands own mes-
sage did not) and sales decreased for the category leader
and the category as a whole, while the new brand enjoyed a
steady increase.
The category leader fought back with advertising which con-
vinced consumers that it would not cause weight gain, and
did so without counter-attacking the new brand. At the same
time, the category leader took legal action against the new
brand to have the negative spot removed from air.
The category leaders sales recovered, while the new brand
was not able to sustain its sales increase.
Lessons learned from smear campaigns
Attack claims can be considered morally wrong in some cul-
tures and may backfire. Additionally, communicating negative
messages about a competitor may overshadow the brands
own message. It can even have a negative impact on the
category as a whole.
If attacked, a brand should defend its reputation but do so
without counter-attacking the other brand.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Is there value in comparative advertising?
www.millwardbrown.com
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 57,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
67
Millward Brown Using Web sites as part of the marketing mix
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Using Web sites as part of the marketing mix

Web sites can be a valuable part of a brands marketing plan. You can add con-
siderably to a sites effectiveness if you consider not just the quality of content,
but also aspects of site design such as distinctiveness, ease of use, personaliza-
tion and innovation.
The value of Web sites
A corporate Web site is often the product of a separate de-
velopment team, and not the responsibility of the market-
ing team, but it can be an important element in your overall
brand communication. It offers unique opportunities to build
a relationship with your customers, but also poses specific
challenges.
Web sites can be a very successful part of the mix. As part
of an online campaign in France, Eurostar leveraged video
adverts to drive traffic to a unique microsite intended to raise
perceptions of the brand and increase usage intent among
business travelers, particularly men. To measure the effects
of this microsite, a group of control respondents were re-
cruited from a jump-page that intercepted respondents after
they had clicked to access the microsite, but before they had
actually visited it. Exposed respondents were recruited upon
leaving the microsite. Unaided brand awareness among men
increased significantly (+4 points) following exposure to
the microsite (exposure to the video adverts alone was not
enough to shift top-of-mind awareness). Microsite exposure
also generated exceptionally large increases among men in
both online ad awareness (+29 points) and brand favorability
(+22 points).
Ease of use
Ease of use causes dramatic differences to a Web sites im-
pact, so you must ensure site visitors are able to navigate
effectively through the site. An evaluation of over 110 Web
sites showed the ones that were considered easy to use
were most likely to have a beneficial effect on brand health
measures.
Cont rol Exposed
0%
4%
46%
68%
39%
68%
Unai ded Brand
Awareness
Onl i ne Ad
Awareness
Brand
Favorabi l i t y
Microsite impacts top-of-mind awareness among
male respondents
* Stat i st i cal l y si gni fi cant at a 90% confi dence l evel .
Del ta ( ) = Exposed-Cont rol
Source: Dynami c Logi c Oct 2006: n=118 mal e respondent s
+4. 3*
+29* +22*
68
Ease of use encompasses factors such as the relevance of
the information provided, the extent to which the site icons
communicate their functionality, clear labeling, and speed of
page load.
Personalization
Personalization can also add considerably to a sites conve-
nience, usefulness and speed. At its most basic, personaliza-
tion means remembering a users details (if the user allows).
More complex personalization targets content to customers
based on their browsing and purchasing history.
However, there are downsides to personalization. Some us-
ers feel it is an invasion of privacy. Users must be given the
option to specify whether or not they are willing for the com-
pany to retain and use information about them. Personaliza-
tion also has cost implications for Web design.
Distinctiveness
Successful sites need to be distinctive. They need to offer
an experience that is useful or enjoyable, which cannot be
gained elsewhere.
One leading baby care brand in Australia developed a local
site with information and solutions on baby-related issues.
It aimed to add value to the brand by being recognized as
a valuable, credible and entertaining resource. Research
showed the site was liked; it was considered easy to navi-
gate, uncluttered and attractive. Overall, it was seen as a
professional site, as people expected from the brand. How-
ever, the research showed that the site fell somewhere be-
tween a one-stop baby care shop and a fun and games site
with some interesting information. There were many other
baby care sites on the Internet, and there were no strong
reasons to visit the site, apart from gathering information
about special offers for the brand, and taking part in com-
petitions. These two reasons became even stronger factors
with repeat visitors.
While consumers mainly visit the site for competitions and
offers, there is the potential to emphasize the game ideas
and expert advice.
There were several indications, derived from both quali-
tative and quantitative work, that improvements could be
made. Many other baby care sites had a more international
emphasis. However, a locally based site was viewed favor-
ably, as there were perceived to be regulatory, cultural and
language differences between countries. The recommen-
dation was that the brand positioned its site as Australias
premier baby care portal. It was suggested the site should
provide an overall layer of basic information with a good
supply of links to reliable outside agencies such as hos-
pitals and health departments, as well as more personal
While consumers mainly visit the site for competitions and
offers, there is the potential to emphasize the game ideas
and expert advice
The purpose of visit to www.brandA.com was...
Difference From Total
To find information on
special Brand A offers
32%
27%
25%
20%
15%
15%
15%
To take part in a
competition
To receive information
about Brand A products
To discover game ideas
for my baby/child
To find expert advice on
development and health
of my baby/child
To look for nappy specials
To read tips from other
parents on Parents
Exchange
To register for the club
No particular reason,
just browsing
Base: Total sample (523)
Total %
First Time
Visitor
Repeat
Visitor
62%
56%
12%
-1%
1%
4%
0%
18%
7%
-7%
0%
-1%
-2%
-1%
-10%
-5%
(193) (330)
-4%
-23%
2%
14%
The site was easy to use
-15.0%
Neither Agree
nor Disagree
Somewhat
Agree
Strongly Agree
-10.0%
-5.0%
0.0%
15.0%
10.0%
-15.0%
20.0%
D
e
l
t
a

i
n
c
r
e
a
s
e
Aided Brand
Awareness
Brand
Favorability
Purchase
Intent
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Using Web sites as part of the marketing mix
69
and emotive content to help bond consumers to the site.
Another improvement suggested was targeting content to
specific groups of parents, for example the first-time preg-
nant, or those with toddlers. We stressed that the site should
not lose sight of the main reason for an initial visit: the ability
to buy direct, with discounts.
Innovation
Our database suggests that a new and innovative Web site
can help build links between the brand and the intended
message or sponsorship.
The chart below shows respondents who agreed with each
site attribute, and the improvement (against a control cell)
on linkage between the brand and the intended message
or sponsorship. In general, when respondents agree that
the experience with the site is positive, brand metrics are
elevated. You can compare these scores against the overall
metric norm (indicated by the dotted line).
Research shows it is often beneficial if sites convey a sense
of dynamism. Regular updates on the site, indicated by a
Whats New section and links to current news items, are
generally appreciated. Additionally, a monthly newsletter
with links to the site can help encourage return visits.
Challenges with e-commerce
When the Web site is intended to sell products, there are
some additional challenges:
It is not easy for users to fully to assess all the physical char-
acteristics of the product such as color, texture, size and
shape when shopping online. People may have con-
cerns about the trustworthiness of a site, particularly if they
have not used it before. Customers may worry about their
personal details being passed on. They may also question
whether the goods they order will actually arrive. The avail-
ability of well-known branded products on the site helps
give assurance, but customers need to be confident that
they are genuine and not counterfeit. Shopping online also
raises issues around returns policies; for instance, will post-
age be refunded?
We were asked by a client to help optimize a new Web site
selling beauty products in China. We showed young women
in Shanghai other online beauty sites and asked what they
liked and disliked about them. We concluded that such sites
could offer four distinct advantages:
A wide range of brands and products
No pushy salespeople, as frequently encountered in
department stores
The convenience of buying online
Lower prices
The research highlighted the importance of using harmoni-
ous colors, a clear layout and fresh style to create an attrac-
tive site. Functional aspects were also found to be important,
such as an effective search function and categorizing prod-
ucts by brand, price and product type so the right products
could be found quickly. Those surveyed liked sites which
included a hotline and a help section for inexperienced
users and welcomed additional detailed product informa-
tion. They also liked sites which offered a choice of payment
methods and had a clear refund policy.
The research also highlighted the need to promote the site,
not just to bring it to the attention of Chinese consumers,
but also to provide it with some credibility and help over-
come any suspicion. As well as traditional media, the value
of word of mouth was singled out. Promotional measures
suggested included an online forum, an area for consum-
er endorsements in the online catalogue, and incentive
0
5
10
15
20
25
30
MA
A new and innovative feel can help build linkage between the
brand and the intended message or sponsorship
Posi t i ve I mpressi on
Easy to Use
Fi t s I mage of Brand
Under stand Benefi t s
Fun and Engagi ng
Usef ul I nfor mat i on
Wi de Var i et y of
I nfor mat i on
Has I nfor mat i on
I Was Looki ng For
I s New and
I nnovat i ve
13.9
11.8
13.1
8.1
13.1
15.2
11.8 12
20.9
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Using Web sites as part of the marketing mix
70
schemes for successful referrals.
The site was launched using many of our recommendations,
including a search engine, multiple classification criteria and
a membership club. It continues to be successful.
Site content is crucial
While promoting site upgrades is important, advertising is no
replacement for a lack of site functionality.
Millward Brown research into an Internet portal in the Czech
Republic showed that its strongest feature was its e-mail,
which was evaluated as the best for both quality and ap-
pearance. The site also had a good news service. The sites
biggest weakness was its home page, which had both ratio-
nal and emotional deficiencies.
Qualitative feedback revealed that, to offer a real competi-
tive advantage, the site should become more distinctive. The
site needed to be modernized. Suggestions focussed on its
structure, functionality and color. Particular elements includ-
ed enabling music to be downloaded, providing individual
settings for beginners and advanced users, and improving
the search engine. The e-mail, while already strong, could
benefit from simple improvements such as the ability to add
smileys and change the color scheme. Additionally, an im-
proved chat capability could appeal to the young.
It was highlighted that it was important to publicize the site
re-launch, to encourage potential users to visit the portal. A
strong campaign was developed which researched well. It
generated high levels of ad awareness, strengthened brand
awareness, and there was a lift in the number of visitors to
the portal. However, these improvements were only short
term. The changes made to the site had been largely cos-
metic; the other recommendations had been ignored. As a
consequence, site visitors were disappointed with what they
found, and did not return.
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 57,000 ads, as
well as 1,200 case studies, 900 conference papers and magazine articles,
and 350 Learnings documents. This Knowledge Point was produced with the
assistance of Dynamic Logic, and using some of their data.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown Using Web sites as part of the marketing mix
www.millwardbrown.com
71
Millward Brown What does cinema advertising add to a campaign?
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
What does cinema advertising add to a
campaign?


The cinema offers a good opportunity to reach a younger audience across the
globe. The cinema experience, with its shared nature, tends to lead to greater
attention being paid to advertising, making it more memorable, so cinema ads
can boost the impact of a TV campaign. However, not all advertising works well
in the cinema, and the best ads tend to reflect the cinema-goers desire for es-
capism, fantasy and entertainment.
An opportunity to reach consumers
Globally, the cinema represents a good opportunity to reach
consumers. According to TGI, the United States is home to
the largest proportion of movie-goers, with around a third of
people (32 percent) having been to the movies at least once
in the last month. Elsewhere in the world, India, Sweden and
Mexico also boast high numbers of movie-goers, with at
least a quarter of people in each market having been to see
a film in the last month.
The lowest levels of movie attendance are in the Eastern Eu-
ropean markets. Just 4 percent of respondents in Romania
and 5 percent in Poland had been to the movies in the last
month.
Despite the variations, some coherent global trends emerge.
Movies are particularly important to teens and young adults,
who go in larger numbers and more often than older age
groups. This is most pronounced in the Asia-Pacific region.
In Singapore 52 percent of people aged 1824 have been
to the movies in the last month compared with 3 percent of
people aged over 55. In Hong Kong the figure is 40 percent
for the younger age group compared with just 1 percent of
people over 55.
Research conducted in Australia showed that more than half
of movie-goers always arrived in time to see the pre-show
program, and agreed that the pre-show program was a good
or acceptable part of the movie experience. Additionally, 57
percent felt that they took more notice of the ads shown at
the cinema than those seen on television or in a magazine,
or heard on the radio, finding these ads captivating, engag-
ing, unique and having an appealing movie quality about
them. 80 percent felt that cinema ads were more entertain-
ing. Everything seems a little more special in a cinema, its
dark and its on the big screen. Everyone seems to get into
the ads more, laughing more than they would at home.
What can cinema advertising deliver?
This heightened level of attention can deliver greater memo-
rability. A brand of crisps was advertised in London only in the
cinema. The cinema spend would have bought around 180
London GRPs. This advertising produced the same peak in
ad awareness as an earlier TV burst of the same ad using
over 640 GRPs, making it over three times more efficient
at generating ad awareness. It is of interest that many re-
spondents recalled the cinema ad as a TV ad a common
occurrence.
72
This finding is reinforced by work by Millward Brown in South
Africa. It compared in-market recall of ads flighted on televi-
sion only (6,459 ads) with those that launched simultane-
ously on television and in the cinema (72 ads). The recall
of ads that appeared in both media was significantly higher
than ads that appeared on television only. For example, for
ads launched with 201300 TV GRPs, the TV-only recall was
22 percent, compared with 28 percent for ads with TV and
cinema, an improvement of 23 percent.. It was estimated
that to achieve that level of recall using television only would
have needed an additional 220 TV GRPs substantially
more than the typical cinema spend.
What stands out for all cinema advertising is its heightened
ability to deliver brand appeal. In Australia, Millward Brown
researched a range of ads that were representative of all cin-
ema ads. We found that on average, 52 percent of respon-
dents reported that cinema ads increased the appeal of the
brand significantly higher than the average of all the TV
ads in our database (44 percent).
The same ad can be experienced differently in the cinema
than on television. In the UK, one humorous ad was aired
in two different regions. In one, it aired only on television. In
the other, it aired only in the cinema. The ad was the same,
but it was enjoyed more in the cinema.
Advertising in the cinema can also affect consumers per-
ceptions of who the brand is targeting. In one example, two
samples were recruited: one of respondents who had seen
the ad in the cinema, and a separate matched sample who
had seen the ad on television. Those who had seen the
ad in the cinema were more likely to feel the brand was
trying to increase its appeal among a younger audience
(82 percent) than those who had seen it on television (66
percent).
What type of advertising works best in the cin-
ema?
Qualitative research shows that cinema-goers visit the cin-
ema for escapism, entertainment and an evening out. Ads
that focus on escapism or immersive fantasy are likely to be
appreciated. The cinema is valued leisure time which has
0
10
20
30
40
Feb Mar Apr May Jun Jul Aug Sep Oct
Feb Mar Apr May Jun Jul Aug Sep Oct
Cinema
TV
TV/cinema
Crisps - London
0
500
GRPs per week
0
500
Cinema
Cinema spend boosts TV ad awareness
London: aged 1634
541
180
Appreciation of humor was stronger when the ad was aired
in cinema
Prompted attitudes
Which of these phrases best describes your feelings about this
advertisement?
Which others?
52
61
15
21
I enjoyed the humor
The sort of advertisement
that sticks in your mind
Region A (cinema only)
Region B (TV only)
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown What does cinema advertising add to a campaign?
73
been paid for, so viewers expect the advertising to be enter-
taining. Advertising that is considered very enjoyable tends to
be rated highly as being suitable for the cinema.

One word of caution, though: Given that cinema-goers ar-
rive at the cinema with the expectation of being entertained,
advertising that falls below their expectations is unlikely to be
well received. Unwelcome advertising may make the brand
seem insensitive and out of touch. One ad that emphasized
news for a brand conveyed the news effectively, but respon-
dents felt the ad was not suitable for the cinema. Additionally,
the shared environment can enhance negative responses as
well as positive ones; it has been known for audiences to boo
advertising in the cinema.
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown What does cinema advertising add to a campaign?
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74
Millward Brown How best to market to business professionals
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
How best to market to business professionals?


Business professionals are also consumers, and they respond to advertising in
both capacities. They notice and remember advertising, and are more likely to
pay attention to advertising that they enjoy or appreciate. All the main media
can be employed successfully to reach this audience, but it should be under-
stood that business professionals have a personal appreciation of advertising, as
well as a professional view.
Typically business professionals deny (at least in public) that
they are influenced by advertising, as indeed do almost all
consumers! However, that is not the case: They do retain as-
sociations and imagery from the advertising they encounter.
Business professionals notice advertising. In this example
from a financial market, the two leading brands both have
higher ad awareness among their business targets than
among general consumers, particularly for newspapers,
posters and direct mail.
Ads dont just do things to business professionals; business
professionals also do things with ads. Through advertising
and other communications as well they make themselves
familiar with the options available, and build up a landscape
of organizations and services which they view as suitable in
particular contexts. They attach character, meaning and as-
sociations to these brands, absorbing not only their practical
offerings, but also their imagery and personality.
Reactions to advertising
Professionals reactions to advertising depend on two as-
pects: the respondents professional roles, and their personal
characteristics.
Sometimes ads are treated as an intrusion, or even seen
as negative. Business professionals often want to reject the
commercialism that is implied by advertising, and the at-
tempt to influence their decision making. However, they do
acknowledge that ads play a useful role in keeping people
informed.
An individuals personality and outlook will also influence their
appreciation of advertising. Many people enjoy ads. They can
brighten the chore of reading professional publications, and
provide amusement and pleasure, in contrast to the serious
articles. On the negative side, ads are sometimes found ir-
ritating. Some ads are simply ignored. This is especially true
Business users are more aware of (mainstream)
secondary media
TV
Newspapers/
magazines
Posters
Direct mail
Internet
Average no.
of media
Base: Total
sample
(1393)
1.12
(300)
1.48
(300)
2.02
(1393)
1.31

In which of the following places have you seen, heard or read anything
aboutrecently?
Brand Y Brand X
Business
%
Consumer
%
Business
%
Consumer
%
10%
11%
27%
32%
48%
6%
6%
12%
22%
50%
13%
122%
33%
42%
50%
10%
6%
14%
22%
52%
75
of ads that are perceived as boring and unimaginative, or
over-complicated and confusing, or if the visual presentation
does not clearly draw out the point of the ad.
It is also apparent that business audiences notice ads that
are not specifically targeted at them, since they are also
consumers in a wider context. So all the market messages
for the brand should be consistent in their broad positioning,
regardless of the target.
Print
Print advertising is often a primary medium of communica-
tion between a business-to-business company and potential
purchasers. Business professionals typically have access to
a variety of different magazines and newspapers targeted at
their sector. These are often read only superficially and out
of a sense of obligation; professionals need to keep up-to-
date and watch out for information of specific importance to
them. The time spent on ads and the attention paid to detail
are both minimal. To be effective, ads have to be designed
to function in this context of selective attention and pressure
to scan the publication as quickly and efficiently as possible.
However some business titles are designed to be lighter and
more appealing, and are read during leisure time.
One advantage of print media in the business just as in a
more general context is that the reader has control over
the medium. They can take additional time to consider an
ad (or an article) that they find new, interesting or intriguing.
In contrast, material that comes across as familiar or boring
attracts little or no attention. We find that print ads tend to
wear out after three exposures. It may take one or two
opportunities to see before real exposure to an ad takes
place: That is, the individual registers the ad, and takes time
to absorb it. The corollary is highly important: If someone has
already seen an ad a few times but not paid attention to it,
it is highly unlikely that they ever will; and if they have paid it
attention once already and absorbed it, they will not bother
to do so again.
There comes a point, then, when providing more and more
opportunities to see the same ad is a wasteful exercise.
What is needed is a new twist in execution and/or mes-
sage to draw attention again.
See the Knowledge Point How do I maximize my print bud-
get? for more on this.
Online
The Web is developing into an ideal medium for communi-
cating with business professionals, who usually have ready
access to the internet at work. While there are major issues
with spam, the internet can be a great, cost-effective vehi-
cle for well-targeted direct communication. The Web offers
the ability to target your audience: Ads relevant to the web-
page on which they are placed are more likely to be effec-
tive. The Web also allows for a large amount of information
to be communicated where appropriate. Web sites devoted
to brands are common, and as well as conveying details of
the offering, they can also convey the brands character and
personality through the use of imagery, including video.
See the Knowledge Points How to maximize the return
from your online display advertising and Using Web sites as
part of the marketing mix for more on this.
Television
For reasons of cost and targeting, television is not com-
monly used for business-to-business advertising. When it
is used, it is often employed suboptimally. The chart below
contrasts the performance of business-to-business TV ads
with consumer TV ads in the United States. They perform
weaker on all key dimensions except Involvement; (but this
stronger score reflects what can be described as a nega-
tive involvement the ads are more likely to be viewed as
irritating and unpleasant.) This should not be taken to mean
that TV advertising cannot be used for a business audience;
there are examples of successful business-to-business ad-
vertising which show it can be effective. But our databases
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown How best to market to business professionals
76
show that higher income, higher social class respondents
those to whom such advertising is often targeted tend to
be more critical of advertising in general.
Customer relationship management
While not viewed as part of the advertising budget, CRM
(customer relationship management) has a major role to play
in building the brand relationship with the consumer. Experi-
ences with sales people and pre- and post-sales interactions
can really color perceptions of the brand. This encompasses
many dimensions, both practical (such as problem solving,
the provision of information, and access to events, forums
and workshops) and emotional, (including respect, friend-
ship and a sense of partnership).
A recent project among one business audience highlighted
that business professionals could be segmented into six
groups, based on aspects such as their interest in their job,
their need for social recognition, their interest in new devel-
opments, and their balance between team work and work-
ing as an individual. Their requirements for a CRM program
varied considerably by segment. While business-to-business
companies tend to view CRM programs as serving their own
needs, this research acts as a useful reminder that custom-
ers can also find them useful, when they are appropriately
positioned.
Another project illustrated the importance of this relation-
ship when the right balance is found. It reported that if a
respected contact moved to a new company, the business
was likely to follow. Individual relationships can be more im-
portant than the brand.
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
0
1
2
3
4
5
6
Business ads rated weaker on most aspects
US TV ads
Consumer
Busi ness
P
e
r
s
u
a
s
i
o
n
R
e
l
e
v
a
n
c
e
N
e
w
s
B
r
a
n
d
i
n
g
E
n
j
o
y
m
e
n
t
I
n
v
o
l
v
e
m
e
n
t
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown How best to market to business professionals
www.millwardbrown.com
77
What role does the brand have in business-to-business markets? Millward Brown
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
What role does the brand have in
business-to-business markets?


Brands have a valuable role to play in business-to-business markets, but there
are several key differences from consumer markets which need to be taken into
account when planning any campaign. The differences relate especially to the
decision-making processes, particularly in large organizations.
It is generally recognized that in consumer markets, a strong
brand is in a better position than a weak one to maximize
its performance, take advantage of marketplace events, and
grow shareholder equity. But when it comes to large busi-
ness purchasing decisions, it is common to question whether
branding plays a positive role.
Business-to-business is different
Branding will not overcome product or service shortcomings.
Reliability is a major driver in business-to-business markets,
because it provides peace of mind for the decision maker.
Branding can help to reinforce the impression of reliability,
but will not compensate for its absence. Branding can sim-
plify purchase decisions. It can give the product or service
a visible presence in a market, and clarify the relevance of
the brand in a category, helping to get it into the consider-
ation set. Branding can also can create the perception that
the brand is an acceptable choice. Additionally, branding can
enhance experience of the brand, by highlighting positive
product experiences.
Business-to-business branding is, in this sense, no different
from any other branding activity, but there are important dif-
ferences from general consumer marketing. With business-
to-business brands, the corporate brand tends to be more
visible than the product brand. This can influence where
marketing spend is allocated.
There is generally a smaller target audience, leading to more
targeted communications. This affects the choice of media.
There also tend to be longer-term contracts, resulting in a
greater emphasis on pricing, and a greater scrutiny of de-
tails. Decisions tend to be based more on functional ben-
efits than, for example, when a consumer is buying a tin of
baked beans. So in terms of spend, positioning and media,
business-to-business is different.
Nonetheless, in millions of smaller organizations, and for
low-budget items, the decision-making process tends to be
very similar to that for consumers. Even in companies with
up to 25 employees, most decisions are made by the owner.
Here a mass of information from many sources, including
advertising, is likely to coalesce into overall impressions that
offer short-cuts to decision-making.
In larger organizations, decision-making is diffused among
different functional areas for different types of purchases. For
example, IT infrastructure, such as computer equipment and
networks, might be purchased centrally, while IT-enabled
applications, such as sales force management systems, are
purchased by functional areas such as the marketing de-
partment. Even when decisions are made by specialists, they
are likely to have to justify them to non-experts. And often,
employees who are not explicitly identified as decision-
makers play a role in their companys choices and interact
periodically with the brands sales and service people. Failure
to deliver on the benefits (for instance, poor cellular phone
78
performance) filters up through complaints and can eventu-
ally lead to a change of vendor. So even in large organiza-
tions, the views of non-specialists can be important.
The drivers of decision-making
For service brands, there are massive differences in the driv-
ers of brand health between users (for whom their expe-
rience of using the brand is key) and non-users (who will
be more reliant on communications). The extent to which
individuals working for the brand are able to build relation-
ships with their customers and put together advantageously
priced packages can often be crucial in bonding customers
to the brands they use. There is naturally also a vital require-
ment for the right products or services, and sufficient capa-
bility to deliver what customers need (at the right scale and
over the right geographical area) in order for people to put
together the right packages or deals.
Professional business customers are generally more focused
on functional benefits than smaller businesses and consum-
ers, and this bias grows with the size of the organization. In
one financial market, the average first-choice consideration
score for customers for their current supllier averages at 63
percent for businesses turning over under 1 million a year,
but falls to 52 percent for those turning over more than 15
million. Similarly, the relationship between satisfaction with
current experience and first-choice consideration is not di-
rect. In larger organizations there is less commitment to cur-
rent suppliers and more willingness to explore alternatives.
There are many factors at play here. The needs of larger
companies are more complex, and they are more likely to,
for example, use more than one bank. In larger organiza-
tions, there is an increasing disconnect between the user of
the product or service, and the decision-maker(s). There
is also a tendency for the number of decision-makers to
increase: Major decisions need to be ratified by a number
of people. In these situations, the decision-makers are
more likely to try to make choices based on needs, and the
deals and capabilities offered by each competing supplier.
It is these processes that weaken the relationship between
consideration and satisfaction.
But even where we might assume that functional benefits
determine brand choice, other factors are still important.
We can take an example from what is often assumed to
be a highly functionally driven market, the pharmaceutical
industry. Loyalty to brands among specialists is not solely
driven by price and functional elements, and in one par-
ticular market with little product differentiation, loyalty is
driven by popularity at a particularly high level.
What role does the brand have in business-to-business markets?
F
i
r
s
t

c
h
o
i
c
e

c
o
n
s
i
d
e
r
a
t
i
o
n
Overall satisfaction
Relationship between satisfaction and consideration is not direct
15 250 million turnover
40
70
80
60
50
40
50 60 70 80
Millward Brown
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
79
As another example, technology firms are increasingly real-
izing that design is important: How the product looks and
feels can drive perceptions of functionality and innovation.
In deciding between brands, professionals rely on knowledge
and judgement based on functional differences. However,
they are also influenced by impressions arising from experi-
ence, and from the network of influencing relationships which
affect feelings about brands and companies. When making
decisions they are subject to the same kinds of pressures
and influences as everyone else. Of course they have ex-
pertise, and a need to maintain their professional reputation.
But they also have moods and emotion, and mixed feelings
towards the people they are dealing with. The pressures and
stresses that arise in their working lives also contribute to the
decision-making process.
One additional factor affects brands that straddle the con-
sumer and business-to-business environments. The repu-
tation of a brand in one sector is likely to influence its rep-
utation in the other. One telecoms company had a poor
reputation for its consumer service. Ads for its business
products and services were treated with a lot of skepticism
because business professionals did not believe the com-
pany could deliver in the business environment either.
The value of a strong brand
Branding can influence business-to-business decisions. A
good example is IBM in the United States, where it holds
a strong position in the business IT solutions market. The
Brand Pyramid below (derived from the WPP BrandZ
study), is a healthy one. Its level of Presence in the market is
strong (85 percent), and the Signature on the right (show-
ing how well the brand moves up from one level of equity
to another) shows that the extent to which consumers are
attitudinally bonded to it is strong.
Being bonded to a brand is important; consumers who are
attitudinally bonded to a brand spend a higher share of cat-
egory expenditure on that brand.
IBM healthy in the Business IT solutions market
Bonding
Advantage
Performance
Relevance
Presence

IT Solutions (business) - USA - 2007
(Base 401)
Signature v other brands IBM
(Base 401)
85%
68%
55%
32%
0%
2%
50% 0%
15% 8%
For pharmaceutical brands, loyalty is not solely driven by rational factors
Emotional 18%
Rational 16%
Price 14%
Innovation 14%
Difference 12%
Popularity 26%
All Pharmaceutical brands
c. 500 brands
Loyalty drivers
Pharma market with little differentiation
Emotional 16%
Rational 9%
Price 5%
Innovation 8%
Difference 13%
Popularity 49%
6 brands
What role does the brand have in business-to-business markets? Millward Brown
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
80
While IBM is undoubtedly strong on functional elements, the
brand is also very well known and is seen as a leader. This
helps to make it seem a safe choice in areas that are tricky
for non-specialists to evaluate. These aspects will have con-
tributed greatly to the growth of the brand.
Similarly, the Marriott hotel chain in the United States is a
very strong brand among business professionals. A detailed
exploration of the equity of the brand shows that not only is
it strong on functional strengths, such as facilities, size and
cleanliness of rooms, and quality of food, it also conveys
emotional values (it appeals more), and a sense of leader-
ship.
Bonded consumers have a higher share of expenditure on
the brand
IT Solutions USA 2007
Bonding
Advantage
Performance
Relevance
Presence
38
15
14
13
12

Share of category
expenditure
BrandDynamics
Pyramid
What role does the brand have in business-to-business markets? Millward Brown
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
www.millwardbrown.com
(Base 199) (Base 199)
IBM is strong on both functional and emotional factors
IT Solutions (business) USA 2007
Most popular
Appeals more
Higher opinion
Complete solution
Want to be seen
Deliver on time
Meets needs
Within budget
Good management
Different
Offer support
Setting trends
Better price/deal
Unaided
Growing popular
39
36
32
37
33
33
34
26
28
21
33
30
21
25
22
8
IBM % IBM v Category
8
3
9
9
6
5
4
3
4
2
2
2
1
13
81
Millward Brown How to change a brands name successfully
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
How to change a brands name successfully


A brand may change its name for a number of reasons. The rebranding process
will have a direct impact on the success of the name change. Name changes
often result in a drop in sales, but when the process is done well, sales can hold
steady. However, if a poor strategy is followed, a name change puts the brand at
risk of losing equity, consumer loyalty and ultimately market share.
Brands change their name for several different reasons,
including repositioning, merger, acquisition, globalization of
brands or to counter bad publicity or a negative image. The
change can be major a completely different name, such
as Marathon to Snickers; minor a slight modification to
the original name, such as US Air to US Airways; or simply
involve the addition of the parent brand name Chicken
Tonight to Knorr Chicken Tonight.
Brand health measures
While tracking measures usually suffer a significant decline
with a brand name change, most measures show a steady
increase towards original levels after the new name is intro-
duced. As would be expected, unaided brand awareness
experiences the sharpest drop. Although, on average, total
brand communication awareness actually increases following
renaming, this is likely to reflect an increase in activity to com-
municate the brand name change.
Levels of claimed usage remain similar overall, with users
naturally being less likely to be affected by the change in
brand name.
The impact of a name change
Some newly named brands are not picked up on or are over-
looked, while some are flat-out rejected by consumers. Coco
Pops, a Kelloggs cereal brand in the UK, changed its name
after 28 years for global consistency, a decision that resulted
in equity and market share declines along with strong public
protest. Kelloggs responded with a television campaign that
gave kids the opportunity to vote on which name they pre-
4
6 7
16
Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3
Last Last Last Last
44
18
24
28
86
77
70
77
42
49
50
48
Source: Tracking Database. Data is global and contains a mix of
countries and product fields
(29) (29) (24) (28)
Original
brand name
Renamed
brand
Base:
# brands
Brand and communications awareness
Unaided
brand
awareness
first mention
Unaided
brand
awareness
total mentions
Total
brand
awareness
Total
communication
awareness
24
29
30
35
Q Q1 Q2 Q3
Last
Q Q1 Q2 Q3
Last
Q Q1 Q2 Q3
Last
14
13
14
12
23
17 1717
Source: Tracking Database. Data is global and contains a mix of countries
and product fields
(17) (17) (17)
Original
brand name
Renamed
brand
Base:
# brands
Brand usage
Ever bought
/ used
Buy / use
nowadays
Buy / use most
often
82
ferred 90 percent chose the original name. The company
listened and changed the cereal back to its original name.
Sales increased 20 percent over the next year.
In our experience, many brands see an immediate 520
percent decline in sales, and can take years to restore levels,
while others are negatively affected only in the short term.
The sales response can be impacted by several things, in-
cluding the amount of equity in the original brand name,
how much is invested in communicating the name change,
the strength of the advertising and the consumer reaction.
Successful transfers of equity
An Australian energy company was required to change its
name after 10 years in the marketplace as the result of a
sales deal. Prior to the name change it had maintained
strong market presence, and it dominated media spend in
the category to communicate the name change. It then re-
turned to brand-based advertising as the new brand. It was
successful in transferring its brand equity to its new brand
name and protecting its previous investments in the brand.
This was done via a committed and clear communication
about the name change followed immediately by a brand
saliency-building campaign which communicated consistent
and recognizable company values, including the same tone
and slogan. Its introductory name change ad and follow-up
ad were both well recognized (above country average) and
were very well branded (nearly double the country average).
The success was attributed to strong creative and media
spend.
Brand awareness and advertising awareness declined 15
20 percentage points initially but within one year were at
parity with pre-name-change levels. The brands share of
the electricity market held steady during and following the
name change.
A new beer brand in the Americas was forced, for legal
reasons, to change its name after eight months of building
strong awareness and a unique image associated with the
beach, sun and fun. Qualitative research revealed that con-
sumers thought it was unfair that the brand had to change
its name. This led to a promotion inviting consumers to help
choose the new name for the beer. To further attract atten-
tion during the period when the beer had no official name,
the company created a no name beer strategy, instruct-
ing consumers to ask for the beer by describing how they
thought of it. This further deepened the brand associations.
A successful launch ad with the new name sustained the
previous brand image and awareness, and usage levels
were even stronger than before. The brand now has the
second highest market share.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown How to change a brands name successfully
20
30
10
0
Top of Mind
M J J A S O N D J F M A M J J A S O N D J F M A M J J



Old
name
New
name
30
40
20
10
0
M J J A S O N D J F M A M J J A S O N D J F M A M J J


Old
name
New
name
Drink Most Often
Strong media spend and creative created high recognition
of advertising with new brand name and very strong
correct identification as the new brand name.
60
72
45
89
71
38
Have seen ad
Ad 1
Ad 2
Country average
Correctly identified as new brand name
Ad 1
Ad 2
Country average
83
An internet service provider in the UK was losing share and
changed its name to that of another provider for other Eu-
ropean countries, which (unlike the UK brand) was seen as
leading edge and dynamic. The launch campaign was weak
on communication, and nearly a quarter of the UK brands
customers thought the name change was a bad idea. A new
campaign focused on the benefits of the new provider was
well received by consumers. The ads were noticed, with ad
awareness reaching almost 60 percent, and the ads con-
veyed more news value than the previous campaign. The
brand began to establish a more distinct positioning. Follow-
ing the earlier declines in market share, the brands share
held steady with the name change.
A margarine brand changed its name as part of a strategy to
raise its profile by linking it to the name of a well-known/high-
quality product line (owned by the same parent company.)
The change was announced through several communica-
tions activities - effective advertising (good cut through and
strong message communication), in-store marketing, new
packaging with a sleeve bearing the original name which
when removed reveals the new name, as well as on-pack
promotional leaflets with coupons and the chance to win a
trip. The name change was successful awareness grew to
80 percent very quickly and consumers were confident that
the product had not been changed and as a result the name
change made no difference in their attitudes or usage of the
product.
Steps to take towards success
Given the potential problems, and the total cost of the nec-
essary surrounding activity, changing a brands name should
only be undertaken if clear financial benefits are anticipated.
Its important to understand the equity in the original brand
name before starting the name change process. A full
evaluation of the new brand name should be undertaken
checking it against strategic objectives, talking to target
audiences and covering all relevant languages for linguistic
issues. At the same time, build strong media awareness of
the original name to ensure a strong market presence prior
to the name change announcement. Packaging can also
be used to make consumers aware of the upcoming name
change, for example, both names can appear on the pack-
aging for a time. Another option is to use packaging sleeves
creatively, for instance, with the former name on an outside
sleeve that can be removed to reveal the new name.
Considerable spend will be needed to establish the new
name. This should be seen as an investment in its future.
One vital aspect is to communicate memorably that the new
brand is exactly the same as the original named brand, or
consumers are likely to assume changes have been made
to the product as well as the name. An honest explanation
of the reasons behind the name change is usually benefi-
cial. Key elements of previous communications should also
be maintained, such as the main message and tone. Ensure
that advertising reaches both users and non-users of the
brand.
Do not dwell on the change. Revert to brand advertising
immediately following the name change to complete the
transfer. Expect spontaneous brand awareness to take lon-
ger to establish than other brand health metrics, and that
the brand image will change and may not be as strong as
it was before.
Knowledge Points are drawn from the Millward Brown Knowledge Bank,
consisting of our databases of 80,000 brand reports and 40,000 ads, as well
as 1,200 case studies, 900 conference papers and magazine articles, and
350 Learnings documents.
K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T K N O W L E D G E P O I N T
Millward Brown How to change a brands name successfully
www.millwardbrown.com
84
digital
insights
85
MarketNorms

Beyond the Click

Insights from Marketing Efectiveness Research
This issue of Beyond the Click shares findings from Dynamic Logic's AdReaction 5 Survey - a study that gauges
consumers' opinions toward advertising. We have highlighted the key findings in a special three-part BTC series.
Less Intrusive and New Online Ad Formats
Perceived Most Positively by Consumers
Based on Beyond the Click - June 2008 - Part 2 of 3
Online advertising is generally still perceived by many as either "banners" or "pop-ups"; however, there are many
different formats for Web advertising. Dynamic Logic research demonstrates that consumers understand that there
are differences in the types of ad formats seen online and they react to them very differently.
In the AdReaction 5 survey, Dynamic Logic asked for consumers' reactions to the major types of online ad formats.
Respondents were given a description of each format and were asked to rank each one using a five-point scale
ranging from very negative to very positive. The top five most popular (or least unpopular) Web ad formats are:
1. Banners
2. Skyscrapers
3. Advergames*
4. "Ghost" ads*
5. Video ads & audio ads
Very positive Somewhat positive Neutral Somewhat negative Very negative
3
4
5
4
4
3
2
3
3
2
2
2
19
18
15
16
14
14
11
9
8
6
6
4
37
36
26
28
25
21
28
16
16
13
16
13
21
19
22
22
23
23
24
22
23
19
27
23
18
21
27
27
31
38
32
47
49
56
46
55
Banners
Skyscrapers
Advergames
"Ghost" ads
Ads with video
Ads with audio
Large rectangles
Full-page ads
Out-of-frame ads
Pop-up ads
Pop-in-between
ads/Interstitials
Pop-under ads
Source: Dynamic Logic's AdReaction 5 Survey, n=933 U.S. respondents
86
MarketNorms

Beyond the Click

Insights from Marketing Efectiveness Research
It is not surprising that consumers continue to prefer the less intrusive ad formats to more intrusive ones. This is
consistent with what we have seen in previous AdReaction studies, conducted in 2003 and 2005, in which banners
and skyscrapers were the most positively perceived online formats. As online advertising grows, the industry learns
more about what is working and what is not from a branding perspective. Given this knowledge of efficiency and
consumers' receptivity, digital ad formats continue to evolve, resulting in several new formats.
Interestingly, advergames and "ghost" ads video overlays like the new YouTube ad formats where an ad will
appear at the bottom of a video screen or player for a few seconds while the video is playing, then disappears are
both newer digital formats and are perceived positively. This may be in part because of the novelty effect, because
people are interested and intrigued about the new formats the first time they are exposed to them. Both video and
interstitial units experienced this "honeymoon" period where respondents were more receptive to these formats
because they were new.
These insights may present an opportunity for marketers interested in advergames and newer video formats, as
these are perceived positively now and are also working effectively in communicating brand messages for
advertisers. Continuing to learn how these formats work best, including the optimal length, placement, and
frequency, will be critical to maintaining positive perceptions and effectiveness of these formats.
Pop-unders, pop-ups and interstitials are at the bottom of the consumer preference list, suggesting that their
interruptive quality and over-exposure to these formats continue to create negative perceptions. Frequency capping
for the more intrusive formats, pre-testing the creative to ensure they are having the proper effect, and targeting
could all help to improve the perception of these formats in time.
*Note: Advergames defined as simple online games that incorporate ads in or around the game play.
"Ghost" ads defined as ads that appear at the bottom of the player or video screen for a few seconds while watching content online, then
disappear if you do not click on them.
About AdReaction
AdReaction is a recurring survey conducted by Dynamic Logic aimed to measure consumer opinions and perceptions
of various types and formats of advertising. AdReaction 5 was fielded in September 2007 in the U.S. in addition to
Canada, UK, France, Germany, Italy, Spain and the Netherlands. The sample was randomly selected from
Lightspeed's panel and weighted to reflect national population.
About Dynamic Logic
Dynamic Logic (www.dynamiclogic.com) is a leading research company with expertise in measuring marketing
effectiveness. Dynamic Logic's research includes: AdIndex to test and analyze advertising across digital platforms,
CrossMedia Research to evaluate multimedia campaigns, MarketNorms, a syndicated ad effectiveness planning
and benchmarking database, and LinkSelect for Digital, an online copy-testing solution developed jointly with
Millward Brown. Founded in 1999, the company is headquartered in New York City with offices in Chicago, San
Francisco, Providence, London, Paris, Frankfurt and Tokyo. Clients include leading marketers, advertising agencies
and media companies. Dynamic Logic is a Millward Brown company, which is part of The Kantar Group, the
information and consultancy arm of WPP.
www.dynamiclogic.com +1 212-844-3700 marketing@dynamiclogic.com
87
MarketNorms

Beyond the Click

Insights from Marketing Efectiveness Research
FIRST LOOK AT MOBILE PERFORMANCE
Early Research Shows Mobile Advertising Campaigns Increase Brand Metrics
Based on Beyond the Click - August 2008
According to eMarketer, this year's mobile advertising spend is estimated to be nearly 5 billion globally, to triple by
the year 2011. Yet, only 13% of all mobile advertising is intended for branding compared to 87% for direct response.
Are marketers missing out? Firstly by not investing in mobile advertising at all, and secondly, by using it primarily as
a DR vehicle?
Dynamic Logic has completed over 30 AdIndex for Mobile research studies in the U.S. and the UK to measure the
branding effects of mobile advertising campaigns across a number of industry sectors, including alcohol, automotive,
consumer electronics, CPG, entertainment, financial services, retail, telecomm, and travel. The campaigns include
display ads on mobile WAP sites and downloadable mobile applications.
Comparing people exposed to the mobile campaigns to those not exposed, the initial performance averages from 21
studies suggest that mobile advertising can be an effective medium for raising brand metrics throughout the
purchase funnel. An average increase of +23.9 percentage points in Mobile Ad Awareness shows that these
campaigns generally cut through and grab users' attention. Average increases in Brand Favorability and Purchase
Intent of +5.4 and +4.7 percentage points, respectively, support the ability of mobile advertising to change
consumers' attitudes towards a brand and to drive intent to purchase.
25
20
15
10
5
0
Early Mobile Averages*
Aided Brand
Awareness
Mobile Ad
Awareness
Message
Association
Brand
Favorability
Purchase
Intent
6.9
23.9
12.2
5.4
4.7
Industries Included:
Alcohol
Automative
Consumer Electronics
CPG
Entertainment
Financial Services
Retail
Telecomm
Travel
D
e
l
t
a

(

)
Source: Dynamic Logic's AdIndex for Mobile; Early Averages as of July 2008,
N=21 campaigns, n=25,050 respondents
Delta () represents percent of people impacted by advert exposure; calculated Delta () = Exposed-Control
* Please note small sample size
88
MarketNorms

Beyond the Click

Insights from Marketing Efectiveness Research
Part of the reason for these positive increases may be a result of the newness of the medium. People may be
intrigued and pay more attention to the advertising on their mobile phone since it is presented on a smaller screen
and is located in a less cluttered environment compared to the Internet. More research and campaign analysis is
needed to help marketers understand what will continue to work best on mobile devices.
Dynamic Logic's latest AdReaction Study shows that only 26% of people in the U.S. have used their mobile phone or
wireless device to connect to the Internet. While reach may still be small, this will most certainly grow as providers
offer more competitive packages for consumers to use their mobile phone to access the Web. Certain brands may be
able to reach a more targeted audience of consumers via mobile branding campaigns on WAP sites. Reaching a
smaller, but more engaged and relevant audience may provide a worthwhile return on investment. Mobile advertising
is not going away, and now may be the best time to test out the waters before consumers force brands to jump in
head first.
While these mobile averages are only based on a small number of campaigns and should be used for directional
purposes, it is important to begin comparing mobile campaigns' effectiveness to an industry average. As we conduct
more studies, we will continue to build these initial averages into a normative database that can be used for a more
granular look into the mobile data in the same way our MarketNorms database is used for online performance
benchmarking and planning.
To learn more about AdIndex for Mobile, please contact mobile@dynamiclogic.com.
*Note: These findings are based on 21 mobile ad campaigns across a variety of industries. The averages could significantly change as
the number of campaigns increases, so any comparison made to them is directional.
About Dynamic Logic
Dynamic Logic (www.dynamiclogic.com) is a leading research company with expertise in measuring marketing
effectiveness. Dynamic Logic's research includes: AdIndex to test and analyze advertising across digital platforms,
CrossMedia Research to evaluate multimedia campaigns, MarketNorms, a syndicated ad effectiveness planning
and benchmarking database, and LinkSelect for Digital, an online copy-testing solution developed jointly with
Millward Brown. Founded in 1999, the company is headquartered in New York City with offices in Chicago, San
Francisco, Providence, London, Paris, Frankfurt and Tokyo. Clients include leading marketers, advertising agencies
and media companies. Dynamic Logic is a Millward Brown company, which is part of The Kantar Group, the
information and consultancy arm of WPP.
www.dynamiclogic.com +1 212-844-3700 marketing@dynamiclogic.com
89
MarketNorms

Beyond the Click

Insights from Marketing Efectiveness Research
This issue of Beyond the Click highlights more findings from Dynamic Logic's AdReaction 5 Survey, which gauges
consumers' opinions towards advertising.
Research Trends Suggest Web Users Are Growing
More Accepting of Over-Content Ads
Based on Beyond the Click - September 2008 - Part 3 of 3
As part of the AdReaction 5 Study on consumer perceptions of specific forms of advertising, Dynamic Logic research
shows that consumers continue to feel that the "appropriate" number of ads that appear over the content of the Web
pages they are browsing is two per hour. This number is consistent with the results for the same question asked in
the previous AdReaction 3 & AdReaction 4 surveys, conducted in 2003 and 2005, respectively.
Certainly, there continue to be people who feel that over-content or "intrusive" ads are never appropriate, even
to support free Web content, but this amounts to roughly one in four people (21%). The majority of U.S.
respondents feel that some over-content ads are appropriate to support free content and that number centers
around two over-content ads per hour (a calculation based on median number).
The most promising finding for advertisers and online publishers from this research is that the percentage of people
who feel that no over-content ads are appropriate has dropped from 32% in 2003 to 21% in this latest study,
suggesting that people may be more willing to accept some advertising in exchange for viewing free content.
Q. How many online ads that appear OVER Web content (such as pop-ups, out-of-frame ads, floating
ads, etc.) PER HOUR, do you think are appropriate for a FREE Web site that you use?
Source: Dynamic Logic's AdReaction Studies; AdReaction 5 (2007), n=933 respondents;
AdReaction 4 (2005), n=2,988 respondents; AdReaction 3 (2003), n=425 respondents
0%
5%
10%
15%
20%
25%
30%
35%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Number of Ads Appropriate
P
e
r
c
e
n
t

o
f

R
e
s
p
o
n
d
e
n
t
s
AdReaction 3 ('03)
AdReaction 4 ('05)
AdReaction 5
Median Number of
Ads Appropriate = 2
The number of people completely opposed
to over-content advertising has gone down
90
MarketNorms

Beyond the Click

Insights from Marketing Efectiveness Research
This AdReaction study also highlighted that two-thirds of respondents felt advertising on the Web sites they visit has
increased over the past six months. Compared to the results of this question back in 2005, more people 66% say
online advertising is increasing compared to 57% three years ago.
Based on prior research conducted around clutter, we believe that there are two main reasons why consumers
perceive an increase in online advertising. Firstly, over the last few years Web surfers have begun to broaden the
number and types of Web sites they visit. Someone who used to visit a major portal to check mail and news now
may go to a variety of sites their social networking site, a local newspaper site and various sites particular to their
hobbies and interests. The so-called "long-tail of the Web" is getting fatter. Some of the less recognized sites attract
less popular brands and have less strict ad policies. Thus, on these sites, you are more likely to see a greater
percentage of intrusive ad formats and a larger number of ads in general. So, while the major portals and other large
sites have likely maintained or even decreased their ad clutter (because they have greater access to ad effectiveness
and user experience data), consumers' usage of a wider variety of sites may be resulting in their perception of
increased overall clutter.
Secondly, as more and more big brands come online, people "see" more advertising than they used to. Online ads
are more noticeable than before and this adds to the perception that clutter is increasing.
While it is safe to assume that consumers want less advertising rather than more, many consumers understand
advertising's role in supporting the content they like. Finding the right balance between the amount of advertising
that produces positive impact for brands and what consumers feel is fair and appropriate in exchange for valuable
content is important.
NOTE: A median was used as opposed to mean since the distribution curve is asymmetrical. Median is calculated by finding a number where
50% of the population is below that number and 50% is above. Field dates: Sept 2007, sample size: 933 U.S. respondents.
About AdReaction
AdReaction is a recurring survey conducted by Dynamic Logic aimed to measure consumer opinions and perceptions
of various types and formats of advertising. AdReaction 5 was fielded in September 2007 in the U.S. in addition to
Canada, UK, France, Germany, Italy, Spain and the Netherlands. The sample was randomly selected from
Lightspeed's panel and weighted to reflect national population.
About Dynamic Logic
Dynamic Logic (www.dynamiclogic.com) is a leading research company with expertise in measuring marketing
effectiveness. Dynamic Logic's research includes: AdIndex to test and analyze advertising across digital platforms,
CrossMedia Research to evaluate multimedia campaigns, MarketNorms, a syndicated ad effectiveness planning
and benchmarking database, and LinkSelect for Digital, an online copy-testing solution developed jointly with
Millward Brown. Founded in 1999, the company is headquartered in New York City with offices in Chicago, San
Francisco, Providence, London, Paris, Frankfurt and Tokyo. Clients include leading marketers, advertising agencies
and media companies. Dynamic Logic is a Millward Brown company, which is part of The Kantar Group, the
information and consultancy arm of WPP.
www.dynamiclogic.com +1 212-844-3700 marketing@dynamiclogic.com
91
MarketNorms - Enabling you to determine the most
cost-effective campaign elements to maximise your brand impact
Following the addition of Q3/08 studies, Dynamic Logic's MarketNorms database now holds results from 4,460
AdIndex research studies based on over 6.8 million respondents worldwide. Since 2001, MarketNorms has
been an industry standard for measuring online advertising's effectiveness and branding impact and still remains
the world's largest ad effectiveness database of its kind with data added from nearly 200 campaigns in the last
quarter alone.
Advertisers, publishers and agencies use the MarketNorms planning tool and its 300+ filters to cut and categorise
the data from 137,415 creative executions to further understand which aspects of online marketing have the
greatest impact on brand lift creative attributes, size, format, frequency of exposure, site placement, etc.
Research = Money Saved. As MarketNorms shows, some advertising variables may be more effective at
shifting brand impact than others on average; but isn't it most important to get the most efficient impact for
the advertising budget that you have available? With MN-CE, a cost-effectiveness calculator in Market-
Norms, you can determine the most cost-effective planning variables to improve your brand metrics. By
entering CPMs, MN-CE calculates the cost per impact of any given variable i.e. website types, creative
formats, rich media providers, etc. so you can understand which variables are likely to cost you less in
order to reach your branding goals.
Does branding work on social sites? With the release of Q3 data comes two new Website Category
filters under Community and Special Groups: Social Networking & User-Generated Content sites. Now
MarketNorms users can see what's working and what's not on these sites. Later this month, Dynamic Logic
will release new findings around the branding impact of Social Networks based on nearly 100 campaigns in
MarketNorms.
You ask the questions Dynamic Logic provides the answers. Have a special area of interest? Want
to better understand some of the drivers of success for Purchase Intent in your industry? How about the
sales impact of your online advertising? Dynamic Logic's Custom Solutions Group was created to address
your research challenges. Send your questions to custom-solutions@dynamiclogic.com.
As typically included with Dynamic Logic's Quarterly MarketNorms Reports, below is an overall look at the online ad
campaign performance as well as a more detailed comparison of performance benchmarks for Aided Brand
Awareness and Brand Favourability by various industries and ad formats.
MarketNorms

92

Aided Brand
Awareness
Online Ad
Awareness
Message
Association
Brand
Favourability
Purchase
Intent
Europe Online Ad Performance Norms (Last 3 Years)
2.0
3.6
2.3
1.2
0.8
P
e
r
c
e
n
t
a
g
e

I
m
p
a
c
t
e
d
Source: Dynamic Logics MarketNorms Q3/2008; N=388 campaigns, n=565,321
4
3
2
1
0
Aided Brand Awareness
Entertainment
Website
Telecommunications
Financial Services
Apparel
Alcohol
Technology
FMCG
Home Improvement
Retail
Entertainment
Telecommunications
Apparel
Retail
Website
Financial Services
Technology
FMCG
Home Improvement
Automotive
Brand Favourability
Global Top 10 Industries by Performance
5.7
3.5
3.0
2.7
2.7
2.7
2.4
2.3
2.1
1.9
3.2
2.0
1.9
1.8
1.7
1.7
1.6
1.6
1.5
1.3*
Average Brand Awareness
Delta: 2.4
Average Brand Favourability
Delta: 1.6
Source: Dynamic Logics MarketNorms Q3/2008; Based on data from last 3 years
*Travel also had a +1.3 delta for Brand Favourability
0 1 2 3 4 5 6 0 1 2 3 4
MarketNorms

93
MarketNorms

Delta ()
3.7*
3.0*
2.0*
1.7*
1.5*
1.5*
1.4*
1.3*
1.3*
1.2*
Rectangle (180x150)
Half Page Ad (300x600)
Full Banner (468x60)
Wide Skyscraper (160x600)
Medium Rectangle (300x250)
Button (120x90)
Large Rectangle (336x280)
Leaderboard (728x90)
Skyscraper (120x600)
Half Banner (234x60)
Global Aided Brand Awareness
Performance by Ad Sizes
Delta ()
2.7*
1.6*
1.3*
1.2*
1.2*
0.9*
0.8*
0.7
0.4
0.0
Rectangle (180x150)
Half Banner (234x60)
Wide Skyscraper (160x600)
Skyscraper (120x600)
Medium Rectangle (300x250)
Full Banner (468x60)
Button (120x90)
Leaderboard (728x90)
Large Rectangle (336x280)
Half Page Ad (300x600)
Global Brand Favourability
Performance by Ad Sizes
Source: Dynamic Logics MarketNorms Q3/2008; Based on data from the last 3 years
Deltas () marked with an asterisk (*) are statistically significant at a 90% confidence level
To schedule a demo or to find out more about MarketNorms and other features of the tool, please email
europe@marketnorms.com or visit www.marketnorms.com.
About Dynamic Logic
Dynamic Logic is a leading research company with expertise in measuring marketing effectiveness. Dynamic Logic's
research includes: AdIndex to test and analyse digital advertising campaigns including but not limited to online,
mobile, and gaming elements; CrossMedia Research to evaluate multimedia campaigns; MarketNorms, a syndi-
cated ad effectiveness planning and benchmarking database; and LinkSelect for Digital, an online copy-testing
solution developed jointly with Millward Brown. Founded in 1999, the company is headquartered in New York City
with offices in Chicago, San Francisco, Providence, London, Paris, Frankfurt and Hong Kong. Clients include leading
marketers, advertising agencies and media companies. Dynamic Logic is a Millward Brown company, which is part
of The Kantar Group, the information and consultancy arm of WPP. www.dynamiclogic.com
About MarketNorms
The MarketNorms database developed by Dynamic Logic of over 4,460 campaigns across more than a dozen
industries has branding lift metrics, ad and brand attributes, environmental/site data, audience data and other
campaign information collected in 6.8 million surveys worldwide. Advertisers, publishers and agencies use Market-
Norms to understand which aspects of online advertising have the greatest impact on brand lift.
www.marketnorms.com
Copyright 1999-2009 Dynamic Logic Inc. - A Millward Brown Company. All Rights Reserved.
94
POV:
www.dynamiclogic.com
May 2009
Live From the Web Sampling Done Right
For online ad efectiveness
studies, live Web recruit-
ment ofers substantial
advantages over panel-
based recruitment
While some survey panels
have about one million
U.S. participants, Internet
tracking panels may have
much fewer qualifed
survey takers, limiting the
number of panelists
usable for online ad
efectiveness studies
To obtain sufcient
sample size for ad efec-
tiveness research, some
panel companies are
forced to recruit at least
some of their sample, if
not the majority of it, via
live Web recruitment
For over 10 years, Dynamic Logic has measured the branding impact of online advertising
campaigns utilizing live Web recruitment in which respondents, both control and exposed, are
recruited directly from the Web sites where the campaign is running. Our clients experienced in
traditional marketing research occasionally ask us whether respondents for our AdIndex

studies
can be recruited through panels. Panels have some advantages over live Web recruitment: they
focus on respondents who have previously opted into being part of ongoing research studies, and
allow the research company to obtain all their respondents from one location. While panels can be
useful for many types of market research Dynamic Logic uses them as a source for our Link
creative copy-testing solution and our CrossMedia Research studies our experience has shown
that panel sample is not practical for online ad effectiveness measurement. Having conducted
more than 4,750 AdIndex

tests with live Web recruitment, we are confident that this solution
provides the best balance along feasibility, accuracy, and scalability.
At a Glance
Feasibility in Collecting Sufficient Sample Per Study
For any type of research, obtaining sufficient sample is essential for answering the studys critical
questions. Within an online ad effectiveness study, our clients questions may be as broad as
whether the campaign made a significant impact on key brand metrics or whether the campaign
performed above the norm in those metrics, but usually go much deeper. Common questions
asked are:
Which site made the largest branding impact for my campaign?
How did the campaign perform among my target audience of consumers in-market for a
new automobile?
What is the optimal frequency level to generate the largest increase in Purchase Intent?
DYNAMIC LOGICS
POV
Provides access to most
respondents reached by the tested
campaign (typically includes a few
million unique online users)
Enables recruitment of robust
sample sizes for granular analysis,
even among average-sized
campaigns
Easily repeatable with low risk of
overusing sample
Control and exposed respondents
collected from the same
population
Provides statistically comparable
sample for the most accurate
conclusions
Feasability for
Collecting Sufficient
Sample Per Study
Scalability for
Multiple Studies
Accurately Defining
the Control Group
Requires an extremely large group
of usable panelists for an
average-sized online campaign
Large campaigns are still limited
to topline level analysis
Likely to quickly burn through
available panel sample or risk
repeatedly surveying the same
respondents
Control and exposed may be
recruited through different sources
Control and exposed groups may
represent different types of people
Live Web Recruitment Panel-Based Recruitment
Recruitment Method
R
e
c
r
u
i
t
m
e
n
t

I
s
s
u
e
Live From the Web Sampling Done Right
www.dynamiclogic.com
To answer such questions, sufficient sample is necessary within each
cell of the analysis. Dynamic Logic usually aims for a minimum overall
sample size of 400 control and 400 exposed respondents per study, and
at least 100 respondents per cell. In a campaign with 8 sites, for
example, we will generally recruit 800 control and 800 exposed respon-
dents. Similarly, a campaign with a hard-to-reach target audience will
require a large sample size to obtain at least 100 respondents per cell
in that audience. To effectively answer a clients research questions, a
robust sample source is therefore critical.
Limitation of Panel Recruitment: Can Only Attempt to Measure
Very Large Campaigns at a Topline Level
Typical online campaigns have audience reach in the 1-10% range
among the US online population. Given this range, a very large
number of panelists would be needed to find sufficient respondents for
analysis in an online ad effectiveness study. Assuming conservative
estimates a sample size goal of 400 exposed respondents (the
minimum typically recruited in AdIndex

studies), and an optimistic

response rate of 25% the number of panelists needed can be calcu-
lated as follows:
As campaign reach increases, the number of panelists needed
decreases. However, as seen in the above scenario, as many as
160,000 panelists would typically be needed with the estimates in this
example, and the number of needed panelists further increases if
response rates are lower than 25% or the sample size needed is
greater than 400 respondents. Thus, using panel for typical online ad
campaigns requires an extremely large group of usable panelists.

While some survey panels have about one million US participants,
Internet tracking panels may be even smaller. For Internet tracking
panelists to qualify for online ad effectiveness studies, they need to be
US residents, active participants in the panel, and willing to respond to
surveys. The precise number of respondents who qualify under these
criteria is not publicly known. However, if we assume 200,000 respon-
dents qualify, coupled with the optimistic response rate of 25% applied
earlier, the following sample sizes might be achievable:
In the largest campaign within the range, a sufficient sample size might
be collectable through panel. However, for smaller campaigns, every
exposed respondent within the panel would need to be invited into the
survey to achieve the necessary sample size. The numbers calculated
Active and
Surveyable US
Panelists:
200,000
Campaign
Reach:
1-10%
Estimated Survey
Response Rate:
25%
Potential
Exposed
Sample Size:
500-5000
* *
=
above also assume a campaign being measured is targeting a general
audience, or one that only specifies a large demographic. However, a
major benefit of the online medium is that specific targeting can be
implemented, through behavioral targeting and placement on long tail
sites. Such placements tend to have much lower reach than the 1-10%
estimate, rendering the ability to recruit respondents exposed on
individual sites or to smaller buys into a needle-in-a-haystack challenge
through panel recruitment. So, while it may be possible to broadly
assess the branding impact of a very large campaign at a topline level,
it is much more challenging to evaluate the campaigns performance
within specific sites, creative units, or frequency levels to answer why
the campaign was or was not effective and how to optimize future
campaigns.
Given these difficulties recruiting sufficient sample through a panel,
research companies that attempt to recruit respondents exposed to a
tested campaign through this method are forced, in many studies, to
recruit at least some of their sample, if not the majority of it, via live
Web recruitment.
Advantage of Live Web Recruitment: Average-Sized Campaigns
Are Measurable and Granular Analysis is a Standard Capability
In contrast to panel recruitment whose sample sizes are restricted by
the size of that panel, which may be as low as 200,000 qualified users,
live Web recruitment allows access to most of the active US online
population, estimated at 169 million people
1
. In an individual campaign
study, with an estimated 200,000 qualified panelists and campaign
reach between 1 and 10%, the exposed population that could be
surveyed for the average campaign through the panel would be 2,000-
20,000 users. By comparison, live Web recruitment allows access to
most respondents reached by the tested campaign, which generally
includes a few million unique online users.
Access to sample among the entire media footprint for a campaign also
enables recruitment of robust sample sizes for granular analysis.
Within a typical AdIndex

study, 100 respondents exposed to each site

and 100 exposed to each creative group are recruited, and analysis
between specific audience segments and frequency levels are also
standard.
Scalability for Multiple Studies
A large surveyable population is needed, not only to support an
individual online ad effectiveness study, but also to support the continu-
ation of these studies over time. With more than 1,000 online ad
effectiveness studies being conducted each year, a large group of
qualified respondents is required to prevent overusing the same survey
takers, which leads to survey wear-out that can cause inferior data and
lower response rates for future surveys.
1
Source: Nielsen Online, 2/26/09
Desired Exposed
Sample Size
for Analysis:
400 Respondents
Campaign
Reach:
1-10%
Response
Rate:
25%
# of Panelists
Needed:
16,000 to 160,000
/ / =
95
POV:
www.dynamiclogic.com
May 2009
Live From the Web Sampling Done Right
For online ad efectiveness
studies, live Web recruit-
ment ofers substantial
advantages over panel-
based recruitment
While some survey panels
have about one million
U.S. participants, Internet
tracking panels may have
much fewer qualifed
survey takers, limiting the
number of panelists
usable for online ad
efectiveness studies
To obtain sufcient
sample size for ad efec-
tiveness research, some
panel companies are
forced to recruit at least
some of their sample, if
not the majority of it, via
live Web recruitment
For over 10 years, Dynamic Logic has measured the branding impact of online advertising
campaigns utilizing live Web recruitment in which respondents, both control and exposed, are
recruited directly from the Web sites where the campaign is running. Our clients experienced in
traditional marketing research occasionally ask us whether respondents for our AdIndex

studies
can be recruited through panels. Panels have some advantages over live Web recruitment: they
focus on respondents who have previously opted into being part of ongoing research studies, and
allow the research company to obtain all their respondents from one location. While panels can be
useful for many types of market research Dynamic Logic uses them as a source for our Link
creative copy-testing solution and our CrossMedia Research studies our experience has shown
that panel sample is not practical for online ad effectiveness measurement. Having conducted
more than 4,750 AdIndex

tests with live Web recruitment, we are confident that this solution
provides the best balance along feasibility, accuracy, and scalability.
At a Glance
Feasibility in Collecting Sufficient Sample Per Study
For any type of research, obtaining sufficient sample is essential for answering the studys critical
questions. Within an online ad effectiveness study, our clients questions may be as broad as
whether the campaign made a significant impact on key brand metrics or whether the campaign
performed above the norm in those metrics, but usually go much deeper. Common questions
asked are:
Which site made the largest branding impact for my campaign?
How did the campaign perform among my target audience of consumers in-market for a
new automobile?
What is the optimal frequency level to generate the largest increase in Purchase Intent?
DYNAMIC LOGICS
POV
Provides access to most
respondents reached by the tested
campaign (typically includes a few
million unique online users)
Enables recruitment of robust
sample sizes for granular analysis,
even among average-sized
campaigns
Easily repeatable with low risk of
overusing sample
Control and exposed respondents
collected from the same
population
Provides statistically comparable
sample for the most accurate
conclusions
Feasability for
Collecting Sufficient
Sample Per Study
Scalability for
Multiple Studies
Accurately Defining
the Control Group
Requires an extremely large group
of usable panelists for an
average-sized online campaign
Large campaigns are still limited
to topline level analysis
Likely to quickly burn through
available panel sample or risk
repeatedly surveying the same
respondents
Control and exposed may be
recruited through different sources
Control and exposed groups may
represent different types of people
Live Web Recruitment Panel-Based Recruitment
Recruitment Method
R
e
c
r
u
i
t
m
e
n
t

I
s
s
u
e
Live From the Web Sampling Done Right
www.dynamiclogic.com
To answer such questions, sufficient sample is necessary within each
cell of the analysis. Dynamic Logic usually aims for a minimum overall
sample size of 400 control and 400 exposed respondents per study, and
at least 100 respondents per cell. In a campaign with 8 sites, for
example, we will generally recruit 800 control and 800 exposed respon-
dents. Similarly, a campaign with a hard-to-reach target audience will
require a large sample size to obtain at least 100 respondents per cell
in that audience. To effectively answer a clients research questions, a
robust sample source is therefore critical.
Limitation of Panel Recruitment: Can Only Attempt to Measure
Very Large Campaigns at a Topline Level
Typical online campaigns have audience reach in the 1-10% range
among the US online population. Given this range, a very large
number of panelists would be needed to find sufficient respondents for
analysis in an online ad effectiveness study. Assuming conservative
estimates a sample size goal of 400 exposed respondents (the
minimum typically recruited in AdIndex

studies), and an optimistic

response rate of 25% the number of panelists needed can be calcu-
lated as follows:
As campaign reach increases, the number of panelists needed
decreases. However, as seen in the above scenario, as many as
160,000 panelists would typically be needed with the estimates in this
example, and the number of needed panelists further increases if
response rates are lower than 25% or the sample size needed is
greater than 400 respondents. Thus, using panel for typical online ad
campaigns requires an extremely large group of usable panelists.

While some survey panels have about one million US participants,
Internet tracking panels may be even smaller. For Internet tracking
panelists to qualify for online ad effectiveness studies, they need to be
US residents, active participants in the panel, and willing to respond to
surveys. The precise number of respondents who qualify under these
criteria is not publicly known. However, if we assume 200,000 respon-
dents qualify, coupled with the optimistic response rate of 25% applied
earlier, the following sample sizes might be achievable:
In the largest campaign within the range, a sufficient sample size might
be collectable through panel. However, for smaller campaigns, every
exposed respondent within the panel would need to be invited into the
survey to achieve the necessary sample size. The numbers calculated
Active and
Surveyable US
Panelists:
200,000
Campaign
Reach:
1-10%
Estimated Survey
Response Rate:
25%
Potential
Exposed
Sample Size:
500-5000
* *
=
above also assume a campaign being measured is targeting a general
audience, or one that only specifies a large demographic. However, a
major benefit of the online medium is that specific targeting can be
implemented, through behavioral targeting and placement on long tail
sites. Such placements tend to have much lower reach than the 1-10%
estimate, rendering the ability to recruit respondents exposed on
individual sites or to smaller buys into a needle-in-a-haystack challenge
through panel recruitment. So, while it may be possible to broadly
assess the branding impact of a very large campaign at a topline level,
it is much more challenging to evaluate the campaigns performance
within specific sites, creative units, or frequency levels to answer why
the campaign was or was not effective and how to optimize future
campaigns.
Given these difficulties recruiting sufficient sample through a panel,
research companies that attempt to recruit respondents exposed to a
tested campaign through this method are forced, in many studies, to
recruit at least some of their sample, if not the majority of it, via live
Web recruitment.
Advantage of Live Web Recruitment: Average-Sized Campaigns
Are Measurable and Granular Analysis is a Standard Capability
In contrast to panel recruitment whose sample sizes are restricted by
the size of that panel, which may be as low as 200,000 qualified users,
live Web recruitment allows access to most of the active US online
population, estimated at 169 million people
1
. In an individual campaign
study, with an estimated 200,000 qualified panelists and campaign
reach between 1 and 10%, the exposed population that could be
surveyed for the average campaign through the panel would be 2,000-
20,000 users. By comparison, live Web recruitment allows access to
most respondents reached by the tested campaign, which generally
includes a few million unique online users.
Access to sample among the entire media footprint for a campaign also
enables recruitment of robust sample sizes for granular analysis.
Within a typical AdIndex

study, 100 respondents exposed to each site

and 100 exposed to each creative group are recruited, and analysis
between specific audience segments and frequency levels are also
standard.
Scalability for Multiple Studies
A large surveyable population is needed, not only to support an
individual online ad effectiveness study, but also to support the continu-
ation of these studies over time. With more than 1,000 online ad
effectiveness studies being conducted each year, a large group of
qualified respondents is required to prevent overusing the same survey
takers, which leads to survey wear-out that can cause inferior data and
lower response rates for future surveys.
1
Source: Nielsen Online, 2/26/09
Desired Exposed
Sample Size
for Analysis:
400 Respondents
Campaign
Reach:
1-10%
Response
Rate:
25%
# of Panelists
Needed:
16,000 to 160,000
/ / =
96
www.dynamiclogic.com
Live From the Web Sampling Done Right
Limitation of Panel Recruitment: Narrow Scalability
The previous calculation estimated that 16,000 to 160,000 panelists are
needed to collect 400 exposed respondents, but how many studies can
feasibly be conducted with such large sample needs using a panel with a
few hundred thousand qualified participants? By performing a few
hundred ad effectiveness studies, research companies would quickly
burn through available panel sample or risk repeatedly surveying the
same respondents.
Advantage of Live Web Recruitment: Repeatable Methodology
Recruiting respondents via live Web recruitment in the footprint of the
media plan allows for the largest available sample source: all users
reached by the campaign. Leveraging the larger US online population of
169 million active users allows for various subsets of people, as they
enter the footprint of different media plans, to be surveyed before the
same respondents are likely to be recruited into another study.
Accurately Defining the Control Group
A key advantage of the online medium is that tracking technology
enables accurate identification of site visitors exposed to advertising.
Such tracking technology allows researchers to simultaneously recruit a
control and an exposed group. If both the control and exposed groups
are members of the same population, simultaneous recruitment enables
outside factorssuch as offline advertising exposure, past brand experi-
ence, and other external influencesto be held constant, thus isolating
the impact of the online advertising. With highly specific and relevant
individuals being targeted in the digital environment, it is critical that the
control group represent the same targeted population that the media
reaches in order to make valid comparisons and draw accurate conclu-
sions regarding a campaigns effectiveness.
Limitation of Panel Recruitment: Control Groups May Not Match
the Exposed
Defining a statistically similar control group through a panel sample is
quite difficult. Most online panels are designed to be projectable to the
Internet population as a whole, whereas most media plans target more
specific groups of people. When a media plan uses behavioral targeting
based on complex algorithms of site visits, site searches, and other
online behaviors to define customized psychographic segments, it
becomes increasingly difficult to define a statistically similar group of
panelists for the control group.
Even if a campaign has a broad demographic target such as females
25-54, the media plan may still define the audience in a unique way
that will be difficult to replicate through a panel. There are certainly
dramatic differences in the behaviors, interests, and brand relation-
ships within a demographic segment. For example, a cosmetics brand
may place advertising on fashion Web sites. Visitors of those sites are
likely to be more style conscious and aware of the latest products than
the average female consumer age 25-54. A consumer exposed to the
campaign on a fashion website, therefore, may be more familiar with,
and have stronger opinions of, current cosmetics brands than a
consumer who spends most of her time on news and business sites
who had not seen the campaign. Comparing the branding scores
between these two consumers and attributing those differences to the
campaigns impact would lead to a very inaccurate perception of the
advertisings performance. Additional survey questions can help to
better balance the two groups on some characteristics, but cannot
create a perfect match.
The difficulty in defining a matched control group becomes even more
challenging if control and exposed respondents are recruited via differ-
ent sources. As mentioned earlier, many research companies that use
a panel to define control respondents may recruit some of their
exposed respondents via live Web recruitment. This difference in
recruitment methodology between cells introduces potential for
substantial audience differences. Respondents who opt into an ongo-
ing sample panel or download long-term tracking software onto their
computers are likely to be substantially different than the average Web
user who is randomly invited to take a single 2-3 minute survey.
Advantage of Live Web Recruitment: Control and Exposed
Respondents Collected from the Same Population
Live recruitment off the footprint of the media plan can ensure that the
control and exposed groups will allow for valid comparisons. Visitors of
the same sites during the same period of time, and under the same
targeting constraints are the most similar in terms of demographics,
online behaviors, interests, and most importantly, baseline brand
perceptions. Randomly recruiting respondents from the same popula-
tion is the most reliable method for ensuring comparability between the
control and exposed cells.
Michelle Eule is managing director at Dynamic Logic, a Millward
Brown company in New York.
Active & Surveyable Portion of
Internet Tracking Panel:
200,000 Panelists
Brand X
Campaign Needs:
160,000 panelists
Brand Y
Campaign Needs:
160,000 panelists
Brand Z
Campaign Needs:
160,000 panelists
How often will the same
panelists be re-surveyed
to fill the sample across
many studies?
www.dynamiclogic.com
Live From the Web Sampling Done Right
Limitation of Panel Recruitment: Narrow Scalability
The previous calculation estimated that 16,000 to 160,000 panelists are
needed to collect 400 exposed respondents, but how many studies can
feasibly be conducted with such large sample needs using a panel with a
few hundred thousand qualified participants? By performing a few
hundred ad effectiveness studies, research companies would quickly
burn through available panel sample or risk repeatedly surveying the
same respondents.
Advantage of Live Web Recruitment: Repeatable Methodology
Recruiting respondents via live Web recruitment in the footprint of the
media plan allows for the largest available sample source: all users
reached by the campaign. Leveraging the larger US online population of
169 million active users allows for various subsets of people, as they
enter the footprint of different media plans, to be surveyed before the
same respondents are likely to be recruited into another study.
Accurately Defining the Control Group
A key advantage of the online medium is that tracking technology
enables accurate identification of site visitors exposed to advertising.
Such tracking technology allows researchers to simultaneously recruit a
control and an exposed group. If both the control and exposed groups
are members of the same population, simultaneous recruitment enables
outside factorssuch as offline advertising exposure, past brand experi-
ence, and other external influencesto be held constant, thus isolating
the impact of the online advertising. With highly specific and relevant
individuals being targeted in the digital environment, it is critical that the
control group represent the same targeted population that the media
reaches in order to make valid comparisons and draw accurate conclu-
sions regarding a campaigns effectiveness.
Limitation of Panel Recruitment: Control Groups May Not Match
the Exposed
Defining a statistically similar control group through a panel sample is
quite difficult. Most online panels are designed to be projectable to the
Internet population as a whole, whereas most media plans target more
specific groups of people. When a media plan uses behavioral targeting
based on complex algorithms of site visits, site searches, and other
online behaviors to define customized psychographic segments, it
becomes increasingly difficult to define a statistically similar group of
panelists for the control group.
Even if a campaign has a broad demographic target such as females
25-54, the media plan may still define the audience in a unique way
that will be difficult to replicate through a panel. There are certainly
dramatic differences in the behaviors, interests, and brand relation-
ships within a demographic segment. For example, a cosmetics brand
may place advertising on fashion Web sites. Visitors of those sites are
likely to be more style conscious and aware of the latest products than
the average female consumer age 25-54. A consumer exposed to the
campaign on a fashion website, therefore, may be more familiar with,
and have stronger opinions of, current cosmetics brands than a
consumer who spends most of her time on news and business sites
who had not seen the campaign. Comparing the branding scores
between these two consumers and attributing those differences to the
campaigns impact would lead to a very inaccurate perception of the
advertisings performance. Additional survey questions can help to
better balance the two groups on some characteristics, but cannot
create a perfect match.
The difficulty in defining a matched control group becomes even more
challenging if control and exposed respondents are recruited via differ-
ent sources. As mentioned earlier, many research companies that use
a panel to define control respondents may recruit some of their
exposed respondents via live Web recruitment. This difference in
recruitment methodology between cells introduces potential for
substantial audience differences. Respondents who opt into an ongo-
ing sample panel or download long-term tracking software onto their
computers are likely to be substantially different than the average Web
user who is randomly invited to take a single 2-3 minute survey.
Advantage of Live Web Recruitment: Control and Exposed
Respondents Collected from the Same Population
Live recruitment off the footprint of the media plan can ensure that the
control and exposed groups will allow for valid comparisons. Visitors of
the same sites during the same period of time, and under the same
targeting constraints are the most similar in terms of demographics,
online behaviors, interests, and most importantly, baseline brand
perceptions. Randomly recruiting respondents from the same popula-
tion is the most reliable method for ensuring comparability between the
control and exposed cells.
Michelle Eule is managing director at Dynamic Logic, a Millward
Brown company in New York.
Active & Surveyable Portion of
Internet Tracking Panel:
200,000 Panelists
Brand X
Campaign Needs:
160,000 panelists
Brand Y
Campaign Needs:
160,000 panelists
Brand Z
Campaign Needs:
160,000 panelists
How often will the same
panelists be re-surveyed
to fill the sample across
many studies?
market
focus
98
MA R K E T
F O C U S
VIETNAM
Country Background
Vietnam has a population of 85 million, half of whom
are under 30 years of age. The country has a 97
percent literacy rate and around one quarter of all
people live in urban areas.
Following the end of the confict and reunifcation of
north and south in 1976, Vietnam survived the loss of
support from the former Soviet bloc and the restrictions
of a centrally planned economy to become one of the
best performing developing economies in the world.
Despite the Asian fnancial crisis, GDP growth averaged
at 6.8 percent between 1997 and 2004. Deep poverty,
as defned as those living on under U.S. $1 a day
declined by over 40 percent during this time and is
now lower than that of India and the Philippines.
However, there is still a large disparity in wealth
poverty rates are about three times higher in rural
areas than in urban areas.
The Vietnamese economy is booming and, in Asia, in
terms of growth rate, is second only to China. The GDP
grew by over 8 percent in 2007 and exports to the U.S.
increased by 900 percent between 2000 and 2007.
Middle and upper class households now account for
half of all urban households, increasing from just 20
percent in 2000.
This rapid growth has had an impact. Although largely
fueled by rising world food and commodity prices, the
rapid rise in domestic credit in Vietnam has contributed
to infation, which hit 12.6 percent in 2007. Property
speculation in Vietnam is reminiscent of a gold rush
Ho Chi Minh City (HCMC) offce space is the ffth most
expensive in Asia and priced three times higher than
Kuala Lumpur.
Marketing Environment in Vietnam
The rise in affuence has led to increased demand for
consumer goods, driven mainly by the appetite of a
young, middle class for luxury goods and services, such
as cars, apparel, ftness clubs and broadband Internet.
The young are more brand and ad savvy than the older
generation.
Consumer spending is rising rapidly in 2000 re-
tail spending was just U.S. $15 billion and in 2006 it
reached $36 billion.
As with many other countries, success is linked to pride
(commonly referred to as face). Because pride has
to be visual to be recognized in Vietnam, it leads to
considerable conspicuous consumption.
Both consumer and business confdence are extremely
high. Telecommunications, fnancial, property, health
and education services will grow exponentially over the
next decade. While foreign investment soared to U.S.
$20.3 billion in 2007, disbursements from the state
were only U.S. $4.6 billion, refecting infrastructure
limitations.
In 2007 U.S. $310 million was spent on advertising in key
TV and print media.
With over 120 local channels, the Vietnamese TV market is
highly regionalized. Audiences are highly concentrated with
two entertainment channels VTV3 and HTV7 account-
ing for 66 percent of all TV advertising expenditure. Peak
viewing hours are lunchtime and 8 pm10 pm.
TV suffers from a lack of quality programing, which fur-
ther increases the concentration of viewing; many local
channels relay national state channel content. Production
companies control as much as 50 percent of available
advertising spots and so competition for airtime is high,
which makes price negotiations very diffcult for media
planners.
Vietnams Top Advertisers (2007)
1. Unilever
2. Procter & Gamble
3. Vinamilk
4. Dutch Lady
5. Nestl
Unique Challenges for Marketers in Vietnam
Reaching the Vietnamese consumer is not always easy.
Personal wealth varies dramatically by city and province
GDP per capita is U.S. $840 per annum, but in key
cities this reaches U.S. $2,000. Although the number
of households earning U.S. $600$1,000 per month
is increasing faster than any other segment of the
population, it is important to remember that Vietnam
remains a developing market. Therefore, line extensions
only suitable for highly segmented markets may not
be the best way to focus resources. Instead, consider
providing products that suit both the brand-conscious
and the price-sensitive consumer by using small pack
sizes and cheaper pack formats.
The Vietnamese population is highly dispersed. This
can make it hard to achieve wide product coverage and
maximize opportunities to sell. Successful companies
in Vietnam have very strong distribution and channel
management and work hard to understand regional
differences.
Media Environment in Vietnam
MA R K E T
F O C U S
VIETNAM
Penetration
(%)
1564
year olds
online at
least once a
week
41
1524
year olds
online at
least once a
week
75
Cable
TV
82
Terrestrial
TV
100
Mobile
Phone
71
Personal
Computer
47
* Source: Cimigo 1564 year olds in Ho Chi Minh City and Hanoi
Top Media Outlets in Vietnam
Television*
VTV3
VTV1
HTV7
Newspaper*
Tuoi Tre
Cong An HCMC
Thanh Nien
Magazines*
Tiep Thi & Gia Dinh
The Gioi Phu Nu
Hao Hoc Tro
Web sites**
www.tuoitre.com.vn
www.vnexpress.net
www.dantri.com.vn
Source: * MindShare
** Cimigo Online
Source: http://andi.com.vn
99
MA R K E T
F O C U S
VIETNAM
Country Background
Vietnam has a population of 85 million, half of whom
are under 30 years of age. The country has a 97
percent literacy rate and around one quarter of all
people live in urban areas.
Following the end of the confict and reunifcation of
north and south in 1976, Vietnam survived the loss of
support from the former Soviet bloc and the restrictions
of a centrally planned economy to become one of the
best performing developing economies in the world.
Despite the Asian fnancial crisis, GDP growth averaged
at 6.8 percent between 1997 and 2004. Deep poverty,
as defned as those living on under U.S. $1 a day
declined by over 40 percent during this time and is
now lower than that of India and the Philippines.
However, there is still a large disparity in wealth
poverty rates are about three times higher in rural
areas than in urban areas.
The Vietnamese economy is booming and, in Asia, in
terms of growth rate, is second only to China. The GDP
grew by over 8 percent in 2007 and exports to the U.S.
increased by 900 percent between 2000 and 2007.
Middle and upper class households now account for
half of all urban households, increasing from just 20
percent in 2000.
This rapid growth has had an impact. Although largely
fueled by rising world food and commodity prices, the
rapid rise in domestic credit in Vietnam has contributed
to infation, which hit 12.6 percent in 2007. Property
speculation in Vietnam is reminiscent of a gold rush
Ho Chi Minh City (HCMC) offce space is the ffth most
expensive in Asia and priced three times higher than
Kuala Lumpur.
Marketing Environment in Vietnam
The rise in affuence has led to increased demand for
consumer goods, driven mainly by the appetite of a
young, middle class for luxury goods and services, such
as cars, apparel, ftness clubs and broadband Internet.
The young are more brand and ad savvy than the older
generation.
Consumer spending is rising rapidly in 2000 re-
tail spending was just U.S. $15 billion and in 2006 it
reached $36 billion.
As with many other countries, success is linked to pride
(commonly referred to as face). Because pride has
to be visual to be recognized in Vietnam, it leads to
considerable conspicuous consumption.
Both consumer and business confdence are extremely
high. Telecommunications, fnancial, property, health
and education services will grow exponentially over the
next decade. While foreign investment soared to U.S.
$20.3 billion in 2007, disbursements from the state
were only U.S. $4.6 billion, refecting infrastructure
limitations.
In 2007 U.S. $310 million was spent on advertising in key
TV and print media.
With over 120 local channels, the Vietnamese TV market is
highly regionalized. Audiences are highly concentrated with
two entertainment channels VTV3 and HTV7 account-
ing for 66 percent of all TV advertising expenditure. Peak
viewing hours are lunchtime and 8 pm10 pm.
TV suffers from a lack of quality programing, which fur-
ther increases the concentration of viewing; many local
channels relay national state channel content. Production
companies control as much as 50 percent of available
advertising spots and so competition for airtime is high,
which makes price negotiations very diffcult for media
planners.
Vietnams Top Advertisers (2007)
1. Unilever
2. Procter & Gamble
3. Vinamilk
4. Dutch Lady
5. Nestl
Unique Challenges for Marketers in Vietnam
Reaching the Vietnamese consumer is not always easy.
Personal wealth varies dramatically by city and province
GDP per capita is U.S. $840 per annum, but in key
cities this reaches U.S. $2,000. Although the number
of households earning U.S. $600$1,000 per month
is increasing faster than any other segment of the
population, it is important to remember that Vietnam
remains a developing market. Therefore, line extensions
only suitable for highly segmented markets may not
be the best way to focus resources. Instead, consider
providing products that suit both the brand-conscious
and the price-sensitive consumer by using small pack
sizes and cheaper pack formats.
The Vietnamese population is highly dispersed. This
can make it hard to achieve wide product coverage and
maximize opportunities to sell. Successful companies
in Vietnam have very strong distribution and channel
management and work hard to understand regional
differences.
Media Environment in Vietnam
MA R K E T
F O C U S
VIETNAM
Penetration
(%)
1564
year olds
online at
least once a
week
41
1524
year olds
online at
least once a
week
75
Cable
TV
82
Terrestrial
TV
100
Mobile
Phone
71
Personal
Computer
47
* Source: Cimigo 1564 year olds in Ho Chi Minh City and Hanoi
Top Media Outlets in Vietnam
Television*
VTV3
VTV1
HTV7
Newspaper*
Tuoi Tre
Cong An HCMC
Thanh Nien
Magazines*
Tiep Thi & Gia Dinh
The Gioi Phu Nu
Hao Hoc Tro
Web sites**
www.tuoitre.com.vn
www.vnexpress.net
www.dantri.com.vn
Source: * MindShare
** Cimigo Online
Source: http://andi.com.vn
100
Retailing in Vietnam
The retail industry is enjoying strong growth. Over
the past fve years, an increasing number of modern
mass grocery retail (MGR) outlets have been gradually
reducing the traditionally dominant position of open-air
markets in urban areas.
Sales via modern channels are growing exponentially
and are expected to account for an estimated 15-20
percent of retail sales in 2008. The Ministry of Trade
predicts modern trade will account for nearly 40 per-
cent of retail sales by 2010.
According to Business Monitor International (BMI)
there were around 115 supermarkets, eight hypermar-
kets and 75 convenience stores in Vietnam at the end
of 2006. Although these are mainly located in and
around the main urban centers of Hanoi and HCMC,
an increasing number of modern retail outlets can be
found in smaller towns and cities in the center of the
country.
In addition there are also a large number of small,
grocery store chains. The most signifcant of these are
Western Canned Food, Kim Thanh, Food Stuff Shop
and Hanoi Star. International operators within this
sector include Metro, Vindmia and Seiyu.
Tips for Advertisers
TV advertising breaks in Vietnam are often 20 spots
long. Cutting through this noise is as hard as trying to
make yourself heard in a disco. Much TV advertising in
Vietnam lacks focus (i.e. has too many messages) and
derails the ability of the advertising to employ a good
creative idea and hence cut through.
The proportion of correct brand recall for TV advertising
is only 55 percent 45 percent is advertising for the
category. Brands must therefore play a decisive role in
your advertising story to stand out and stick in con-
sumers memories. Otherwise brand advertising is best
considered category advertising.
Many brands in Vietnam confuse the consumer by
altering their ads and changing their advertising messages
too often, often long before the ad has worn out or has
maximized its effciency.
The ability of Vietnamese consumers to decipher
advertising varies. Kids, teens and white collar staff
can pick up subtle advertising messages involving meta-
phors, lifestyle depictions and symbolic values readily.
Whereas many housewives (the purse string holders),
blue collar staff and rural consumers require simpler,
more direct messages.

Key Millward Brown Metrics
MA R K E T
F O C U S
VIETNAM
Country Average
Involvement
5. 1
Awareness
Index
6.0
Persuasion
46%
Enjoyment
4.3
May 2008
Fun Facts and Trivia
Vietnam has a long history of occupation which contributes to the resilient
and progressive attitude of the Vietnamese.
Vietnam joined the World Trade Organization in January 2007.
A stock exchange opened in Vietnam in 2000.
Vietnam is the worlds largest exporter of cashew nuts. In 2007 over 150,000
tonnes were exported, which is over 50 percent of the world market share.
In Vietnam, the family name is written frst, followed by the middle name
and frst name last.
The famous conical hat worn by Vietnamese farmers throughout the coun-
try has a long history. Traditionally made of palm leaf, the non la hat has
been worn since the 13th century as protection from the sun.
Vietnam is one of the worlds top 10 apparel exporters.
The ancient art of water puppetry (mua roi nuoc) was virtually unknown
outside Vietnam until the 1960s. The display, which dates back over 1,000
years, is performed in a tank of waist-deep water using wooden puppets so
they appear to glide over the waters surface.
Top Tips
Vietnam has almost 1,900 miles (3,000 kilometers) of coast in a country
slightly larger than Italy. It is long and narrow with very different weather
patterns by region. At its extremes, Vietnam has a wet and dry season in
the south and four seasons in the north. Plan your trip carefully.
The lunar New Year (Tet) is Vietnams greatest celebration but is mostly
celebrated in the home. It is not a good time for visitors as many businesses
are closed.

Crossing the street is a challenge for visitors. What appear to be pedestrian
crossings are not observed by vehicles. Do not assume traffc will stop at the
traffc lights.
The Vietnamese love football more than the British. If you are in Vietnam
when the national team is playing, enjoy a coffee or beer on the side of the
street after the match (win or lose) and watch the incredible celebrations.
Eating Out
Rice and noodles are the main staple foods in Vietnam. Food is usually
served in bowls and eaten using chopsticks. Vietnamese food is very
fresh and predominantly prepared with many vegetables and herbs. It
is rarely fried. Nearly all dishes are served with different sauces. Choose
restaurants frequented by locals.
Two popular and delicious dishes are Pho, a noodle soup served with
beef or chicken, bean sprouts and herbs, which is mainly eaten for
breakfast, and Bun Bo Hue, a noodle soup with beef which can be
enjoyed at any time of day.
Vietnam has a very strong coffee culture in the south. The coffee is
strong and served with sweetened condensed milk over ice. By night
enjoy a bia hoi (type of draft beer) and snacks such as peanuts and
dried squid at a bia hoi, which takes its names from the beer it serves.
To Buy
Vietnamese coffee and coffee flters, tailored clothes and traditional
o dis (traditional dress), lacquer paintings and contemporary
Vietnamese art.
To Read
Thanh Nien a daily English Newspaper: www.thanhniennews.com
Vietnam News a daily English Newspaper:
vietnamnews.vnagency.com.vn
Saigon Times Weekly a Vietnamese Business Magazine:
www.saigontimesweekly.saigonnet.vn
Vietnam Financial Review: www.vfr.vn
The Word a monthly entertainment guide: www.thewordhcmc.com
Useful Links
Vietnam General Statistics Offce: www.gso.gov.vn
Ministry of Foreign Affairs: www.mofa.gov.vn
Vietnam National Administration of Tourism: www.vietnamtourism.com
MA R K E T
F O C U S
VIETNAM
101
Retailing in Vietnam
The retail industry is enjoying strong growth. Over
the past fve years, an increasing number of modern
mass grocery retail (MGR) outlets have been gradually
reducing the traditionally dominant position of open-air
markets in urban areas.
Sales via modern channels are growing exponentially
and are expected to account for an estimated 15-20
percent of retail sales in 2008. The Ministry of Trade
predicts modern trade will account for nearly 40 per-
cent of retail sales by 2010.
According to Business Monitor International (BMI)
there were around 115 supermarkets, eight hypermar-
kets and 75 convenience stores in Vietnam at the end
of 2006. Although these are mainly located in and
around the main urban centers of Hanoi and HCMC,
an increasing number of modern retail outlets can be
found in smaller towns and cities in the center of the
country.
In addition there are also a large number of small,
grocery store chains. The most signifcant of these are
Western Canned Food, Kim Thanh, Food Stuff Shop
and Hanoi Star. International operators within this
sector include Metro, Vindmia and Seiyu.
Tips for Advertisers
TV advertising breaks in Vietnam are often 20 spots
long. Cutting through this noise is as hard as trying to
make yourself heard in a disco. Much TV advertising in
Vietnam lacks focus (i.e. has too many messages) and
derails the ability of the advertising to employ a good
creative idea and hence cut through.
The proportion of correct brand recall for TV advertising
is only 55 percent 45 percent is advertising for the
category. Brands must therefore play a decisive role in
your advertising story to stand out and stick in con-
sumers memories. Otherwise brand advertising is best
considered category advertising.
Many brands in Vietnam confuse the consumer by
altering their ads and changing their advertising messages
too often, often long before the ad has worn out or has
maximized its effciency.
The ability of Vietnamese consumers to decipher
advertising varies. Kids, teens and white collar staff
can pick up subtle advertising messages involving meta-
phors, lifestyle depictions and symbolic values readily.
Whereas many housewives (the purse string holders),
blue collar staff and rural consumers require simpler,
more direct messages.

Key Millward Brown Metrics
MA R K E T
F O C U S
VIETNAM
Country Average
Involvement
5. 1
Awareness
Index
6.0
Persuasion
46%
Enjoyment
4.3
May 2008
Fun Facts and Trivia
Vietnam has a long history of occupation which contributes to the resilient
and progressive attitude of the Vietnamese.
Vietnam joined the World Trade Organization in January 2007.
A stock exchange opened in Vietnam in 2000.
Vietnam is the worlds largest exporter of cashew nuts. In 2007 over 150,000
tonnes were exported, which is over 50 percent of the world market share.
In Vietnam, the family name is written frst, followed by the middle name
and frst name last.
The famous conical hat worn by Vietnamese farmers throughout the coun-
try has a long history. Traditionally made of palm leaf, the non la hat has
been worn since the 13th century as protection from the sun.
Vietnam is one of the worlds top 10 apparel exporters.
The ancient art of water puppetry (mua roi nuoc) was virtually unknown
outside Vietnam until the 1960s. The display, which dates back over 1,000
years, is performed in a tank of waist-deep water using wooden puppets so
they appear to glide over the waters surface.
Top Tips
Vietnam has almost 1,900 miles (3,000 kilometers) of coast in a country
slightly larger than Italy. It is long and narrow with very different weather
patterns by region. At its extremes, Vietnam has a wet and dry season in
the south and four seasons in the north. Plan your trip carefully.
The lunar New Year (Tet) is Vietnams greatest celebration but is mostly
celebrated in the home. It is not a good time for visitors as many businesses
are closed.

Crossing the street is a challenge for visitors. What appear to be pedestrian
crossings are not observed by vehicles. Do not assume traffc will stop at the
traffc lights.
The Vietnamese love football more than the British. If you are in Vietnam
when the national team is playing, enjoy a coffee or beer on the side of the
street after the match (win or lose) and watch the incredible celebrations.
Eating Out
Rice and noodles are the main staple foods in Vietnam. Food is usually
served in bowls and eaten using chopsticks. Vietnamese food is very
fresh and predominantly prepared with many vegetables and herbs. It
is rarely fried. Nearly all dishes are served with different sauces. Choose
restaurants frequented by locals.
Two popular and delicious dishes are Pho, a noodle soup served with
beef or chicken, bean sprouts and herbs, which is mainly eaten for
breakfast, and Bun Bo Hue, a noodle soup with beef which can be
enjoyed at any time of day.
Vietnam has a very strong coffee culture in the south. The coffee is
strong and served with sweetened condensed milk over ice. By night
enjoy a bia hoi (type of draft beer) and snacks such as peanuts and
dried squid at a bia hoi, which takes its names from the beer it serves.
To Buy
Vietnamese coffee and coffee flters, tailored clothes and traditional
o dis (traditional dress), lacquer paintings and contemporary
Vietnamese art.
To Read
Thanh Nien a daily English Newspaper: www.thanhniennews.com
Vietnam News a daily English Newspaper:
vietnamnews.vnagency.com.vn
Saigon Times Weekly a Vietnamese Business Magazine:
www.saigontimesweekly.saigonnet.vn
Vietnam Financial Review: www.vfr.vn
The Word a monthly entertainment guide: www.thewordhcmc.com
Useful Links
Vietnam General Statistics Offce: www.gso.gov.vn
Ministry of Foreign Affairs: www.mofa.gov.vn
Vietnam National Administration of Tourism: www.vietnamtourism.com
MA R K E T
F O C U S
VIETNAM
102
Country Background
Lying in the heart of Europe, Switzerland has a
population of 7.3 million (with 3.3 million households;
2.2 average number of people per household), of
which a ffth are not Swiss by birth. Switzerland is a
prosperous and stable modern market economy with
low unemployment, a highly skilled labor force, high
standards of living and, in 2007, a per capita GDP larger
than most other large Western European economies
(U.S. $39,800). Although it is not a member of the EU,
economically it is fully integrated into the European Market.
Switzerland has a federal structure. It is divided into 26
semi-autonomous cantons which are heterogeneous in
terms of their size, language, income and politics.
Switzerland has a unique political system based on
direct democracy. For any change in the constitution, a
referendum is mandatory. Any citizen may challenge a
law that has been passed by parliament. If that person
is able to gather 50,000 signatures against the law
within 100 days, a national vote has to be scheduled
where voters decide by a simple majority whether to
accept or reject the law. All four major parties are repre-
sented on the Federal Council and there is a high degree
of consensus and cooperation between the parties.
The countrys languages and culture have been heavily
infuenced by its European neighbors. Switzerland is
highly unusual, as although Swiss German, French,
Italian and Romanstch are spoken in different cantons,
the country has no unifed written language of its own.
High price stability and low infation rates make the
Swiss Franc (CHF) one of the most consistently solid
currencies in the world.
Marketing Environment in Switzerland
Switzerlands central location in Europe, political stability,
low infation (1 percent), moderate taxes, excellent
public infrastructure and a high level in education have
made it one of the worlds most important fnancial
centers. In 2005 the banking sector accounted for 9
percent of Swiss GDP and employed 3.3 percent of the
total workforce.
It also has a world class reputation for its expertise in
engineering, particularly precision instruments and
watches as well as electronics, metallurgy, chemicals
and pharmaceuticals.
EU Statistics released in 2002 showed that Switzerland
was the third most expensive country in Europe, after
Norway and Iceland. The Swiss pay particularly high
prices for meat, cooking oil, fsh and vegetables.
Unique Challenges for Marketers in Switzerland
Switzerland is multicultural and trilingual. Marketers
must be cautious when creating marketing messages
to ensure any communications have a consistent
meaning across all the three main languages and do
not cause offense due to cultural differences within the
population. Most products and packaging are labeled in
at least French and German.
MA R K E T
F O C U S SWITZERLAND
Switzerlands Top Advertising Categories (2006)
1. Vehicles
2. Finance
3. Food
4. Telecommunication
5. Cosmetics / Body care
Retailing in Switzerland
Retailing is dominated by Migros and Coop together they
have a 73 percent share of the retailing market. In 2007
Migros bought a majority share in Denner, Switzerlands
third largest food chain. In the same year Coop announced
that it was to purchase 12 hypermarket outlets from Car-
refour. Many corner stores have disappeared as a
result of this consolidation process.
Due to a very strict and lengthy evaluation procedure,
it is not easy to get a product on the shelf at Migros and
Coop. If successful, the product will have a high volume
of sales. Shelf space must often be bought.
Swiss consumers often look for the best value for money
rather than the cheapest product, so companies need to
build consumer confdence and loyalty through quality
manufacturing and brand management.
Media Environment in Switzerland
Swiss television is dominated by public broadcasters, with
private organizations playing only a regional role, mainly
in Zurich. Each household has access to around 40
channels. Most households (96 percent) receive foreign
channels.
Principal advertising restrictions:
Tobacco: prohibited in TV and radio; restrictions in other media
Alcohol: prohibited on TV; restrictions in other media
Prescription pharmaceuticals: consumer advertising
prohibited
Politics and religions: prohibited on TV, radio and cinema;
restrictions in other media
Penetration
(%)
Satellite TV
Homes
12
Internet
76
Mobile Phone
Subscriptions
99
Broadband
Connections
69
Cable TV
Homes
74
MA R K E T
F O C U S SWITZERLAND
Top Media Outlets in Switzerland
Television
SF DRS
TSR
TSI
Newspaper
Blick
Tagesanzeiger
La Tribune de Genve
Corriere del Ticino
Magazines
Lillustr
Tele
Glckpost
Saldo
Web sites
Bluewin.ch
Search.ch
Annibal.ch
Sources: Werner A. Meier: The Media in Switzerland, The Euromedia Research
Group, Sage Publications, 2004
www.mediaedge.com
Share of Media
103
Country Background
Lying in the heart of Europe, Switzerland has a
population of 7.3 million (with 3.3 million households;
2.2 average number of people per household), of
which a ffth are not Swiss by birth. Switzerland is a
prosperous and stable modern market economy with
low unemployment, a highly skilled labor force, high
standards of living and, in 2007, a per capita GDP larger
than most other large Western European economies
(U.S. $39,800). Although it is not a member of the EU,
economically it is fully integrated into the European Market.
Switzerland has a federal structure. It is divided into 26
semi-autonomous cantons which are heterogeneous in
terms of their size, language, income and politics.
Switzerland has a unique political system based on
direct democracy. For any change in the constitution, a
referendum is mandatory. Any citizen may challenge a
law that has been passed by parliament. If that person
is able to gather 50,000 signatures against the law
within 100 days, a national vote has to be scheduled
where voters decide by a simple majority whether to
accept or reject the law. All four major parties are repre-
sented on the Federal Council and there is a high degree
of consensus and cooperation between the parties.
The countrys languages and culture have been heavily
infuenced by its European neighbors. Switzerland is
highly unusual, as although Swiss German, French,
Italian and Romanstch are spoken in different cantons,
the country has no unifed written language of its own.
High price stability and low infation rates make the
Swiss Franc (CHF) one of the most consistently solid
currencies in the world.
Marketing Environment in Switzerland
Switzerlands central location in Europe, political stability,
low infation (1 percent), moderate taxes, excellent
public infrastructure and a high level in education have
made it one of the worlds most important fnancial
centers. In 2005 the banking sector accounted for 9
percent of Swiss GDP and employed 3.3 percent of the
total workforce.
It also has a world class reputation for its expertise in
engineering, particularly precision instruments and
watches as well as electronics, metallurgy, chemicals
and pharmaceuticals.
EU Statistics released in 2002 showed that Switzerland
was the third most expensive country in Europe, after
Norway and Iceland. The Swiss pay particularly high
prices for meat, cooking oil, fsh and vegetables.
Unique Challenges for Marketers in Switzerland
Switzerland is multicultural and trilingual. Marketers
must be cautious when creating marketing messages
to ensure any communications have a consistent
meaning across all the three main languages and do
not cause offense due to cultural differences within the
population. Most products and packaging are labeled in
at least French and German.
MA R K E T
F O C U S SWITZERLAND
Switzerlands Top Advertising Categories (2006)
1. Vehicles
2. Finance
3. Food
4. Telecommunication
5. Cosmetics / Body care
Retailing in Switzerland
Retailing is dominated by Migros and Coop together they
have a 73 percent share of the retailing market. In 2007
Migros bought a majority share in Denner, Switzerlands
third largest food chain. In the same year Coop announced
that it was to purchase 12 hypermarket outlets from Car-
refour. Many corner stores have disappeared as a
result of this consolidation process.
Due to a very strict and lengthy evaluation procedure,
it is not easy to get a product on the shelf at Migros and
Coop. If successful, the product will have a high volume
of sales. Shelf space must often be bought.
Swiss consumers often look for the best value for money
rather than the cheapest product, so companies need to
build consumer confdence and loyalty through quality
manufacturing and brand management.
Media Environment in Switzerland
Swiss television is dominated by public broadcasters, with
private organizations playing only a regional role, mainly
in Zurich. Each household has access to around 40
channels. Most households (96 percent) receive foreign
channels.
Principal advertising restrictions:
Tobacco: prohibited in TV and radio; restrictions in other media
Alcohol: prohibited on TV; restrictions in other media
Prescription pharmaceuticals: consumer advertising
prohibited
Politics and religions: prohibited on TV, radio and cinema;
restrictions in other media
Penetration
(%)
Satellite TV
Homes
12
Internet
76
Mobile Phone
Subscriptions
99
Broadband
Connections
69
Cable TV
Homes
74
MA R K E T
F O C U S SWITZERLAND
Top Media Outlets in Switzerland
Television
SF DRS
TSR
TSI
Newspaper
Blick
Tagesanzeiger
La Tribune de Genve
Corriere del Ticino
Magazines
Lillustr
Tele
Glckpost
Saldo
Web sites
Bluewin.ch
Search.ch
Annibal.ch
Sources: Werner A. Meier: The Media in Switzerland, The Euromedia Research
Group, Sage Publications, 2004
www.mediaedge.com
Share of Media
104
Small supermarkets of less than 500 square meters
still represent the most important subsector of Swiss
retailing, especially in rural regions. However, market
saturation, a lack of innovation and falling prices forced
Migros and Coop to cut costs and close down small and
unproftable outlets.
The biggest retailer in Switzerland, Migros, was the
frst to introduce a low budget line at the end of the
1990s. This project proved very successful and was
expanded into non food items such as mountain bikes,
snow-boards, condoms and other lifestyle gadgets.
M-Budget is so successful that Migros makes more
money through its cheaper products than more
expensive lines.
Tips for Advertisers
Switzerland has a complex media landscape. There
is no one national media channel for TV, newspaper,
or radio and media channels vary greatly by region,
especially segmented by language. As well as picking
up local Swiss stations it is common to receive TV
stations from neighboring countries. This means a
French speaking Swiss person will almost undoubtedly
see advertising meant for the Swiss market in French
and also that meant for France likewise for Swiss
German and Italian. Because of this it is important that
multinational brands have a coherent either consistent
or at least complimentary brand image, essence
and beneft. Products that vary their approach radically
across countries, therefore risk confusing consumers.
Despite speaking the same language as neighboring
countries, expectations of the product and advertising
are uniquely Swiss. For example, Swiss consumers are
most likely to be quality driven and to expect strong
creative hooks in a very low-clutter ad environment.
Local communication and local authenticity is important,
meaning that Swiss consumers desire and expect to be
reached at home through Swiss media. To not do so is
to seem foreign.
Much of the advertising in Switzerland is developed
in one language and then translated into the other
languages. It is important for advertisers to ensure that
the translations truly make sense in the other languages.
More than just being translated, each ad needs to be
properly interpreted in terms of language and culturally
relevant concepts. Clearly, advertising that relies on a
play on words is especially problematic.
Key Millward Brown Metrics
MA R K E T
F O C U S SWITZERLAND
Country Average
Involvement
5.12
Awareness
Index
5
Persuasion
12%
Enjoyment
3.43
June 2008
Fun Facts and Trivia
The St. Golthard San Gottardo tunnel is 10.5 miles (16.9 kilometers) long.
Switzerland is home to many international organizations such as the World
Heath Organization (WHO), the International Red Cross, the United Nations
Childrens Fund (UNICEF), the International Olympic Committee (IOC), the
UN European headquarters, the High Commission for Refugees (UNHCR),
and the Union of European Football Association (UEFA).
The Locarno International Film Festival is one of the top fve in the world.
Yodeling is common in Swiss folk music and was probably developed as
a method of communication between mountain peaks. There are many
yodeling events through the springtime, culminating in the annual Swiss
Alpine Yodeling Championships, which is held in early July in a different town
each year.
There are 930 museums in Switzerland one museum for every 7,500
inhabitants.
Switzerland has over 1,500 lakes; so many that wherever you are in the
country you are never more than 10 miles (16 kilometers) away from one.
The Alpine region provides hydroelectric power 60 percent of the
countrys energy requirement.
Suisse Romande is recognized worldwide as being the cradle of the Swiss
watch industry and the centre of micromechanics.
Top Tips
In music, the biggest show in Switzerland is the famous Montreux Jazz
Festival held in July each year. It is televised around the world and these
days features as much rock, dance and world music as jazz and blues. Mas-
sive open-air weekends in July at Bern and Nyon are regular stopoffs on the
European festival circuit, and Berns own orthodox jazz festival pulls in top
artists year after year. Zrichs Street Parade attracts half a million techno
revelers from all over Europe. In classical music, the Luzern International
Festival, held each August, is one of the premier events of its kind. You can
watch opera at Avenches and summer performances at Verbier, Gstaad
and Sion.
Just as skiing is excellent in the cold winter, hiking is just as good in the
warmer summer. There are thousands of trails and most have small pit
stops for refreshments. The wildlife is abundant and it is possible to spot
wild deer and birds.
Eating Out
Cheese is an institution in Switzerland. Many types are available
including hard, soft and cottage cheese. It is also melted in wine to
make fondue and poured over potatoes to make raclette.
Fondue is kind of a heavy soup consisting of melted cheese (usually a
blend of several varieties), made with white wine, corn powder, garlic
and spices. Fondue is served in a ceramic pot over a small fame and
eaten with small pieces of bread mounted on a long fork. Up to fve
people share one pot.
Chocolate is a way of life in Switzerland. The average Swiss eats 23
pounds (10.5 kilograms) of chocolate per year roughly one ordinary-
sized bar for every single person, every day of the year. Conscripts in the
Swiss army get free chocolate, wrapped in special foil bearing the Swiss
fag, and adults bring each other chocolate as a dinner party gift.
To Read
Homo Faber by Max Frisch
Masquerade and other stories by Robert Walser
Lusage du monde by Nicolas Bouvier
Le bourreau by Friedrich Drrenmatt
Useful Links
Travel guides: www.switzerlandisyours.com
General information: www.myswitzerland.com
Hotels: www.hotel-suisse.ch
Restaurant guide: http://www.resto-rang.ch
News: www.swissinfo.org
MA R K E T
F O C U S SWITZERLAND
105
Small supermarkets of less than 500 square meters
still represent the most important subsector of Swiss
retailing, especially in rural regions. However, market
saturation, a lack of innovation and falling prices forced
Migros and Coop to cut costs and close down small and
unproftable outlets.
The biggest retailer in Switzerland, Migros, was the
frst to introduce a low budget line at the end of the
1990s. This project proved very successful and was
expanded into non food items such as mountain bikes,
snow-boards, condoms and other lifestyle gadgets.
M-Budget is so successful that Migros makes more
money through its cheaper products than more
expensive lines.
Tips for Advertisers
Switzerland has a complex media landscape. There
is no one national media channel for TV, newspaper,
or radio and media channels vary greatly by region,
especially segmented by language. As well as picking
up local Swiss stations it is common to receive TV
stations from neighboring countries. This means a
French speaking Swiss person will almost undoubtedly
see advertising meant for the Swiss market in French
and also that meant for France likewise for Swiss
German and Italian. Because of this it is important that
multinational brands have a coherent either consistent
or at least complimentary brand image, essence
and beneft. Products that vary their approach radically
across countries, therefore risk confusing consumers.
Despite speaking the same language as neighboring
countries, expectations of the product and advertising
are uniquely Swiss. For example, Swiss consumers are
most likely to be quality driven and to expect strong
creative hooks in a very low-clutter ad environment.
Local communication and local authenticity is important,
meaning that Swiss consumers desire and expect to be
reached at home through Swiss media. To not do so is
to seem foreign.
Much of the advertising in Switzerland is developed
in one language and then translated into the other
languages. It is important for advertisers to ensure that
the translations truly make sense in the other languages.
More than just being translated, each ad needs to be
properly interpreted in terms of language and culturally
relevant concepts. Clearly, advertising that relies on a
play on words is especially problematic.
Key Millward Brown Metrics
MA R K E T
F O C U S SWITZERLAND
Country Average
Involvement
5.12
Awareness
Index
5
Persuasion
12%
Enjoyment
3.43
June 2008
Fun Facts and Trivia
The St. Golthard San Gottardo tunnel is 10.5 miles (16.9 kilometers) long.
Switzerland is home to many international organizations such as the World
Heath Organization (WHO), the International Red Cross, the United Nations
Childrens Fund (UNICEF), the International Olympic Committee (IOC), the
UN European headquarters, the High Commission for Refugees (UNHCR),
and the Union of European Football Association (UEFA).
The Locarno International Film Festival is one of the top fve in the world.
Yodeling is common in Swiss folk music and was probably developed as
a method of communication between mountain peaks. There are many
yodeling events through the springtime, culminating in the annual Swiss
Alpine Yodeling Championships, which is held in early July in a different town
each year.
There are 930 museums in Switzerland one museum for every 7,500
inhabitants.
Switzerland has over 1,500 lakes; so many that wherever you are in the
country you are never more than 10 miles (16 kilometers) away from one.
The Alpine region provides hydroelectric power 60 percent of the
countrys energy requirement.
Suisse Romande is recognized worldwide as being the cradle of the Swiss
watch industry and the centre of micromechanics.
Top Tips
In music, the biggest show in Switzerland is the famous Montreux Jazz
Festival held in July each year. It is televised around the world and these
days features as much rock, dance and world music as jazz and blues. Mas-
sive open-air weekends in July at Bern and Nyon are regular stopoffs on the
European festival circuit, and Berns own orthodox jazz festival pulls in top
artists year after year. Zrichs Street Parade attracts half a million techno
revelers from all over Europe. In classical music, the Luzern International
Festival, held each August, is one of the premier events of its kind. You can
watch opera at Avenches and summer performances at Verbier, Gstaad
and Sion.
Just as skiing is excellent in the cold winter, hiking is just as good in the
warmer summer. There are thousands of trails and most have small pit
stops for refreshments. The wildlife is abundant and it is possible to spot
wild deer and birds.
Eating Out
Cheese is an institution in Switzerland. Many types are available
including hard, soft and cottage cheese. It is also melted in wine to
make fondue and poured over potatoes to make raclette.
Fondue is kind of a heavy soup consisting of melted cheese (usually a
blend of several varieties), made with white wine, corn powder, garlic
and spices. Fondue is served in a ceramic pot over a small fame and
eaten with small pieces of bread mounted on a long fork. Up to fve
people share one pot.
Chocolate is a way of life in Switzerland. The average Swiss eats 23
pounds (10.5 kilograms) of chocolate per year roughly one ordinary-
sized bar for every single person, every day of the year. Conscripts in the
Swiss army get free chocolate, wrapped in special foil bearing the Swiss
fag, and adults bring each other chocolate as a dinner party gift.
To Read
Homo Faber by Max Frisch
Masquerade and other stories by Robert Walser
Lusage du monde by Nicolas Bouvier
Le bourreau by Friedrich Drrenmatt
Useful Links
Travel guides: www.switzerlandisyours.com
General information: www.myswitzerland.com
Hotels: www.hotel-suisse.ch
Restaurant guide: http://www.resto-rang.ch
News: www.swissinfo.org
MA R K E T
F O C U S SWITZERLAND
106
MA R K E T
F O C U S
CHILE
Country Background
Flanked by the Andes mountain range in the east and
the Pacifc in the west, Chile is a thin strip of land 2, 174
miles (3,500 kilometers) long and only 265 miles (430
kilometers) at its widest point. The country has a wide
variety of climatic conditions; desert in the north, tem-
perate in the central regions and cooler in the south.
Around 85 percent of Chiles 16 million population live
in urban areas with a total area of over 289,500 square
miles (750,000 square kilometers) 40 percent live in
the Santiago metropolitan area alone. Other important
cities are Via del Mar, Iquique, Temuco and Concepcin.
Since 1989, when Pinochets 16 years of military rule
came to an end and the country returned to democracy,
Chile has been the fastest growing economy in Latin
America. It has an annual real growth rate of 57
percent, was the frst South American nation to join in
the U.S. sponsored Free Trade of the Americas agree-
ment and, in 2007, had the highest per capita GDP in
Latin America (U.S. $14,400).
The national currency is the Peso and the offcial
language is Spanish. Over three-quarters of the
population are Catholic.
Marketing Environment in Chile
About one-third of the worlds copper comes from
Chile, with the recent high prices contributing to Chiles
sustained economic growth. Although the country was
once highly dependent on copper, it has diversifed
into other areas. Chile is now the largest fruit exporter
in the southern hemisphere 2006 fruit exports
reached U.S. $2.8 billion. Salmon farming has rapidly
expanded since the mid-1980s and Chile will soon
overtake Norway to become the worlds largest salmon
exporter. Chile is also an important producer of wine
and forestry products exports reached U.S. $1.3
billion and U.S. $5 billion in 2007 respectively.
Codelco, the major producer of copper in the world,
is one of the biggest companies in Chile, employing
around 20,000 people in 30 countries. It made over
U.S. $9 billion pre-tax profts in 2006. The copper is
exported all around the world; in 2005 43 percent
went to Asia, 29 percent to Europe, 16 percent to South
America and 12 percent to North America.
In November 2002 new legislation was approved,
known as the Platform of Investments. This has stim-
ulated foreign investment by offering overseas companies
new business opportunities which are exempt from
local taxes and have additional associated benefts.
Unique Challenges for Marketers in Chile
The Chilean market can be very different from its Latin
neighbors. For example, in Latin America around 75
percent of mobiles are post-pay (contract) and the
remaining 25 percent are pre-pay (pay as you go).
However, in Chile the opposite is true 80 percent of
mobiles bought are pre-pay and only 20 percent are
Radio is an important source of news and information in
Chile. There are hundreds of radio stations, most of them
commercial. The most important radio station for news,
Cooperativa, has a daily audience of some 210,000 listen-
ers, followed by Radio Chilena at about half that fgure.
While 300,000 of the richest residents of Santiago read
the conservative broadsheet El Mercurio (out of a total
readership of 1 million), it only has 5,000 readers from
the lowest socioeconomic sectors. They prefer the tabloid
newspaper La Cuarta, which is read by 325,000
low-income people who constitute three-quarters of
its audience.
The advances in technology are changing the way people
consume media. Cell phones with Internet access and
multimedia capabilities are increasing in popularity and
reducing the dominance of more traditional media.
post-pay. Potential investors need to be aware how
unique the Chilean market can be. They need to have a
thorough understanding of the key market drivers and
be prepared for surprises.
There are large differences in the distribution of income
in Chile the richest 10 percent of the country earns
nearly 40 percent of the national income. These
different segments of the population have very different
consumer habits and preferences. Marketers must take
these differences into account before developing any
marketing plans, campaigns and ads to ensure they
target their products and services to the right segments.
Demographic Structure
Media Environment in Chile
Chiles national and local terrestrial channels operate
alongside extensive cable TV networks, which carry
many U.S. and international stations.
MA R K E T
F O C U S
CHILE
Mobile
Phone
85
14
TV
95
15.4
Computer
Ownership
30
3.0

Penetration (%)
Users (MM)
Internet
Access
27.1
4.4
Cable
TV
7.5
1.2
Broad-
band
23
3.7
Source: TGI Chile 2007 Wave II V. 12. 13.2007
Audience (%)
98.9
71.0
3.3
41.8
57.1
43.4
35.1
10.9
Heavy Users (%)
11.5
21.7
3.8
14.0
12.9

Media Consumption
Terrestrial TV (Last 7 days)
Radio FM (Yesterday)
Radio AM (Yesterday)
Magazines (Any)
Newspapers (L-D)
Internet (Users last 30 days)
Cable TV (Last 7 days)
Cinema (Last 30 days)
ABC1 Upper, middle and lower upper class
C2 Skilled working class
C3 Mid working class
D Working class
E At the lowest level of subsistence
%
6.2
15. 1
21.2
37.5
20.0
Source: Corpa - Total country
107
MA R K E T
F O C U S
CHILE
Country Background
Flanked by the Andes mountain range in the east and
the Pacifc in the west, Chile is a thin strip of land 2, 174
miles (3,500 kilometers) long and only 265 miles (430
kilometers) at its widest point. The country has a wide
variety of climatic conditions; desert in the north, tem-
perate in the central regions and cooler in the south.
Around 85 percent of Chiles 16 million population live
in urban areas with a total area of over 289,500 square
miles (750,000 square kilometers) 40 percent live in
the Santiago metropolitan area alone. Other important
cities are Via del Mar, Iquique, Temuco and Concepcin.
Since 1989, when Pinochets 16 years of military rule
came to an end and the country returned to democracy,
Chile has been the fastest growing economy in Latin
America. It has an annual real growth rate of 57
percent, was the frst South American nation to join in
the U.S. sponsored Free Trade of the Americas agree-
ment and, in 2007, had the highest per capita GDP in
Latin America (U.S. $14,400).
The national currency is the Peso and the offcial
language is Spanish. Over three-quarters of the
population are Catholic.
Marketing Environment in Chile
About one-third of the worlds copper comes from
Chile, with the recent high prices contributing to Chiles
sustained economic growth. Although the country was
once highly dependent on copper, it has diversifed
into other areas. Chile is now the largest fruit exporter
in the southern hemisphere 2006 fruit exports
reached U.S. $2.8 billion. Salmon farming has rapidly
expanded since the mid-1980s and Chile will soon
overtake Norway to become the worlds largest salmon
exporter. Chile is also an important producer of wine
and forestry products exports reached U.S. $1.3
billion and U.S. $5 billion in 2007 respectively.
Codelco, the major producer of copper in the world,
is one of the biggest companies in Chile, employing
around 20,000 people in 30 countries. It made over
U.S. $9 billion pre-tax profts in 2006. The copper is
exported all around the world; in 2005 43 percent
went to Asia, 29 percent to Europe, 16 percent to South
America and 12 percent to North America.
In November 2002 new legislation was approved,
known as the Platform of Investments. This has stim-
ulated foreign investment by offering overseas companies
new business opportunities which are exempt from
local taxes and have additional associated benefts.
Unique Challenges for Marketers in Chile
The Chilean market can be very different from its Latin
neighbors. For example, in Latin America around 75
percent of mobiles are post-pay (contract) and the
remaining 25 percent are pre-pay (pay as you go).
However, in Chile the opposite is true 80 percent of
mobiles bought are pre-pay and only 20 percent are
Radio is an important source of news and information in
Chile. There are hundreds of radio stations, most of them
commercial. The most important radio station for news,
Cooperativa, has a daily audience of some 210,000 listen-
ers, followed by Radio Chilena at about half that fgure.
While 300,000 of the richest residents of Santiago read
the conservative broadsheet El Mercurio (out of a total
readership of 1 million), it only has 5,000 readers from
the lowest socioeconomic sectors. They prefer the tabloid
newspaper La Cuarta, which is read by 325,000
low-income people who constitute three-quarters of
its audience.
The advances in technology are changing the way people
consume media. Cell phones with Internet access and
multimedia capabilities are increasing in popularity and
reducing the dominance of more traditional media.
post-pay. Potential investors need to be aware how
unique the Chilean market can be. They need to have a
thorough understanding of the key market drivers and
be prepared for surprises.
There are large differences in the distribution of income
in Chile the richest 10 percent of the country earns
nearly 40 percent of the national income. These
different segments of the population have very different
consumer habits and preferences. Marketers must take
these differences into account before developing any
marketing plans, campaigns and ads to ensure they
target their products and services to the right segments.
Demographic Structure
Media Environment in Chile
Chiles national and local terrestrial channels operate
alongside extensive cable TV networks, which carry
many U.S. and international stations.
MA R K E T
F O C U S
CHILE
Mobile
Phone
85
14
TV
95
15.4
Computer
Ownership
30
3.0

Penetration (%)
Users (MM)
Internet
Access
27.1
4.4
Cable
TV
7.5
1.2
Broad-
band
23
3.7
Source: TGI Chile 2007 Wave II V. 12. 13.2007
Audience (%)
98.9
71.0
3.3
41.8
57.1
43.4
35.1
10.9
Heavy Users (%)
11.5
21.7
3.8
14.0
12.9

Media Consumption
Terrestrial TV (Last 7 days)
Radio FM (Yesterday)
Radio AM (Yesterday)
Magazines (Any)
Newspapers (L-D)
Internet (Users last 30 days)
Cable TV (Last 7 days)
Cinema (Last 30 days)
ABC1 Upper, middle and lower upper class
C2 Skilled working class
C3 Mid working class
D Working class
E At the lowest level of subsistence
%
6.2
15. 1
21.2
37.5
20.0
Source: Corpa - Total country
108
Chiles Top Advertisers
1. Unilever
2. Falabella S.A.C.I.
3. Paris S.A.
4. Procter & Gamble Chile
5. Ripley
Retailing in Chile
Over the last 15 years, the Chilean retail market has
undergone dramatic change due to the growth of the
economy, an increase in consumption, the boom of
credit cards and, undoubtedly, advances of technology.
Nowadays, retailers such as Falabella, Ripley and Paris
supply consumer loans through their own fnancial insti-
tutions. This has also helped boost sales as, unlike many
other banks, they grant credit to people on low incomes,
making the purchase of big-ticket items available to all.
Once they have exhausted the potential for growth in the
relatively small sized Chilean market, many retail chains
expand into other Latin American countries, such as
Argentina, Peru and Colombia.
Chiles retail sector is modern, dynamic and highly com-
petitive. Many international chains have entered Chile,
only to leave within a few years due to fnancial losses.
For example, JC Penney, the largest department store in
the U.S. arrived in Chile in 1995 and opened two stores in
Santiago. Within fve years, it had sold its assets to a local
competitor. Carrefour, the French multinational and Home
Depot, the U.S. hardware retailer both came to Chile in
1998 and by 2003 they had sold all their stores.
Key Millward Brown Metrics
Total
Involvement
4.34
Awareness
Index
3
Persuasion
21
Enjoyment
3.73
MA R K E T
F O C U S
CHILE
Top Media Outlets in Chile
Television
TVN
CHV
Canal 13
Mega
La Red
Cable TV
Jetix
Sony
Nickelodeon
Cartoon Network
Warner
Newspaper
El Mercurio
La Tercera
LUN
Publimetro
Estrategia
Magazines
Caras
Cosas
Paula
TV Grama
Capital
Web sites
Romntica
Cooperativa
Infnita
Duna
Corazn
Source: Megatime - in order of advertising investment
Source: Megatime Advertising Industry (total investment - not including
non-traditional media)
Share of Media
July 2008
Fun Facts and Trivia
The Chinchorro mummies were discovered in the Atacama desert in what is
now Northern Chile by Max Uhle in the early 20th Century. The earliest site
of the Chinchorro people dates to 7,000 BC and the frst evidence of mum-
mifcation dates to approximately 5,000 BC in the Quebrada de Camarones
region, making these mummies the oldest in the world.
Top Tips
The top places to visit and activities in Chile are:
The Geysers in the north of Chile San Pedro de Atacama.
The Torres del Paine National Park located in the south of the country.
It covers 698 square miles (1,810 kilometers) and contains mountains,
glaciers, lakes and rivers. The park was designated a World Biosphere
Reserve by UNESCO in 1978.
Skiiing. The best time to go is between May and July. Try visiting La Parva,
El Colorado, Valle Nevado and Lagunillas.
Easter Island is 2,000 miles (3,218 kilometers) from the nearest population
center, making it one of the most isolated places on earth. It is known for
the giant, stone monolith heads, Moai, that dot the coastline.
The vineyards at Ruta del Vino. While visiting you can taste the marvelous
Chilean wines and take in the wonderful landscape.
Fishing in the lakes in the south of Chile.
Although credit cards are accepted in the city, when traveling further afeld,
be sure to take cash.
Tips are accepted, the usual rate is 10 percent of the total cost.
Eating Out
While in the country try some of the classic Chilean dishes: empanada
(pastry stuffed chicken or beef), pastel de choclo, (Chilean corn and meat pie),
cazuelas (soup) and humitas (masa harina [a special corn four used for
making tortillas] and corn cooked in corn leaves).

If you like seafood, head for Mercado Central Santiagos central fsh
market. As well as selling fresh fsh from the days catch, it also contains
several seafood restaurants.
Dont forget to try a pisco sour and chicha (national drink on Chiles
Independence Day).
Must Read
Pablo Neruda and Gabriela Mistral are two Nobel Prize winning poets.
Two poetry books worth reading are 20 Love Poems and a Desperate
Song and Sonnets of Death.
To Buy
Lapizlazuli jewelry a beautiful, blue, semi-precious stone unique to
Chile copper crafts and items made from clay.
Useful Links
www.sernatur.cl tourist information
www.visitingchile.com tourist information
www.terra.cl news
M A R K E T
F O C U S
CHILE
109
Chiles Top Advertisers
1. Unilever
2. Falabella S.A.C.I.
3. Paris S.A.
4. Procter & Gamble Chile
5. Ripley
Retailing in Chile
Over the last 15 years, the Chilean retail market has
undergone dramatic change due to the growth of the
economy, an increase in consumption, the boom of
credit cards and, undoubtedly, advances of technology.
Nowadays, retailers such as Falabella, Ripley and Paris
supply consumer loans through their own fnancial insti-
tutions. This has also helped boost sales as, unlike many
other banks, they grant credit to people on low incomes,
making the purchase of big-ticket items available to all.
Once they have exhausted the potential for growth in the
relatively small sized Chilean market, many retail chains
expand into other Latin American countries, such as
Argentina, Peru and Colombia.
Chiles retail sector is modern, dynamic and highly com-
petitive. Many international chains have entered Chile,
only to leave within a few years due to fnancial losses.
For example, JC Penney, the largest department store in
the U.S. arrived in Chile in 1995 and opened two stores in
Santiago. Within fve years, it had sold its assets to a local
competitor. Carrefour, the French multinational and Home
Depot, the U.S. hardware retailer both came to Chile in
1998 and by 2003 they had sold all their stores.
Key Millward Brown Metrics
Total
Involvement
4.34
Awareness
Index
3
Persuasion
21
Enjoyment
3.73
MA R K E T
F O C U S
CHILE
Top Media Outlets in Chile
Television
TVN
CHV
Canal 13
Mega
La Red
Cable TV
Jetix
Sony
Nickelodeon
Cartoon Network
Warner
Newspaper
El Mercurio
La Tercera
LUN
Publimetro
Estrategia
Magazines
Caras
Cosas
Paula
TV Grama
Capital
Web sites
Romntica
Cooperativa
Infnita
Duna
Corazn
Source: Megatime - in order of advertising investment
Source: Megatime Advertising Industry (total investment - not including
non-traditional media)
Share of Media
July 2008
Fun Facts and Trivia
The Chinchorro mummies were discovered in the Atacama desert in what is
now Northern Chile by Max Uhle in the early 20th Century. The earliest site
of the Chinchorro people dates to 7,000 BC and the frst evidence of mum-
mifcation dates to approximately 5,000 BC in the Quebrada de Camarones
region, making these mummies the oldest in the world.
Top Tips
The top places to visit and activities in Chile are:
The Geysers in the north of Chile San Pedro de Atacama.
The Torres del Paine National Park located in the south of the country.
It covers 698 square miles (1,810 kilometers) and contains mountains,
glaciers, lakes and rivers. The park was designated a World Biosphere
Reserve by UNESCO in 1978.
Skiiing. The best time to go is between May and July. Try visiting La Parva,
El Colorado, Valle Nevado and Lagunillas.
Easter Island is 2,000 miles (3,218 kilometers) from the nearest population
center, making it one of the most isolated places on earth. It is known for
the giant, stone monolith heads, Moai, that dot the coastline.
The vineyards at Ruta del Vino. While visiting you can taste the marvelous
Chilean wines and take in the wonderful landscape.
Fishing in the lakes in the south of Chile.
Although credit cards are accepted in the city, when traveling further afeld,
be sure to take cash.
Tips are accepted, the usual rate is 10 percent of the total cost.
Eating Out
While in the country try some of the classic Chilean dishes: empanada
(pastry stuffed chicken or beef), pastel de choclo, (Chilean corn and meat pie),
cazuelas (soup) and humitas (masa harina [a special corn four used for
making tortillas] and corn cooked in corn leaves).

If you like seafood, head for Mercado Central Santiagos central fsh
market. As well as selling fresh fsh from the days catch, it also contains
several seafood restaurants.
Dont forget to try a pisco sour and chicha (national drink on Chiles
Independence Day).
Must Read
Pablo Neruda and Gabriela Mistral are two Nobel Prize winning poets.
Two poetry books worth reading are 20 Love Poems and a Desperate
Song and Sonnets of Death.
To Buy
Lapizlazuli jewelry a beautiful, blue, semi-precious stone unique to
Chile copper crafts and items made from clay.
Useful Links
www.sernatur.cl tourist information
www.visitingchile.com tourist information
www.terra.cl news
M A R K E T
F O C U S
CHILE
110
Country Background
At the heart of Central America, Honduras is a vibrant
country with sparkling clear waters, perfect beaches,
verdant jungles, magnifcent mountains, challenging
rivers, and captivating ancient Mayan ruins. It has a
population of 7.48 million of which 90 percent is
Mestizo (a mixture of Amerindian and European
ancestry), 4 percent Amerindian, 5 percent black and
1 percent white. The capital is Tegucigalpa, however,
San Pedro Sula, its second largest city, is the economic
center. The country is a democratic republic. Public
education is free and obligatory for children aged
seven to 19. The literacy rate is 76.2 percent.
The currency is the Lempira. Economic growth in
the last few years has averaged 5 percent a year, but
around half of the population still remains below the
poverty line. GDP per capita is U.S. $1,170 (2006).
It is estimated that more than 1.2 million people are
unemployed 28 percent of the population.
The country is self-suffcient in electricity production,
using hydropower to generate more than 60 percent
of the countrys electricity.
The region is considered a biodiversity hotspot and
in 1982 Ro Pltano in the La Mosquitia region was
designated a UNESCO World Heritage site. According
to the World Conservation Monitoring Center, Honduras
has 1,214 species of amphibians, birds, mammals
and reptiles. Of these, 6.9 percent are unique to
the country.
Marketing Environment in Honduras
Historically, the country has depended on exports of
agricultural products, such as bananas and coffee.
However, the economy has diversifed in recent decades
and now has a strong export processing industry,
primarily focused on assembling textile and apparel
goods for re-export to the U.S.
It was not until a few years ago that Honduras started to
develop a marketing culture. The main marketing efforts
have been made by foreign multinational companies,
but, little by little, local companies have begun to
incorporate marketing departments. The Honduras
Institute of Tourism completed a project in 2007 to
re-brand the country as a tourist destination to entice
travelers from the U.S. and Canada.
Unique Challenges for Marketers in Honduras
One of the key challenges marketers face when trying
to reach Honduran consumers is that, unlike the other
countries of the Central American region that have one
main city, Honduras has two main cities: Tegucigalpa
and San Pedro Sula. It is therefore important to under-
MA R K E T
F O C U S HONDURAS
Share of Media*
Top Media Outlets in Honduras

Honduras Top Advertisers
1. SAB Miller
2. Unilever
3. PepsiCo
4. Grupo INTUR
5. Tigo
Retailing in Honduras
In recent years the retail sector has seen an increase in
the number of international mass grocery retailers.
Perhaps the most important event of 2006 was the
acquisition of 51 percent of CARHCO (Central American
Retail Holding Company) by Wal-Mart. CARHCO, already
stand how consumer habits, preferences and media
consumption vary from one city to another. In some
cases different marketing strategies must be created
to effectively reach each segment.
Media Environment in Honduras
TV remains the medium with the highest consumption
in Honduran homes. Although mobile use has grown
more slowly in Honduras than the Central American
average, it has increased more rapidly over the past
few years. It is expected that by the end of 2008 a
fourth mobile phone company will be operating in
the market.
As of 2005, the telecoms sector was opened to
private sector companies and Hondutels (the state
telecommunication company) monopoly ended. For
the past two years, the Honduran Congress has been
promoting a bill whose main objective is to promote
international investment in this sector. This bill has
brought three new mobile phone companies and 63
new companies offering different services (Internet,
landline and broadband).

MA R K E T
F O C U S HONDURAS
Television
Televicentro
Canal11
Canal 6
Telered21
Newspaper
La Prensa
El Heraldo
La Tribuna
El Tiempo
Magazines
Hablemos Claro
Web sites
www.laprensahn.com
www.latribuna.hn
www.elheraldo.hn
www.hotmail.com
Penetration (%)
Users (MM)
Mobile
Phone
49
2.24
TV
58
1.02
Computer
Ownership
1
0.12
Internet
Access
5
0.33
Broad-
band
<1
N/A
Radio 10%
Newspaper 30%
TV 60%
* Outdoor, cinema, magazine and in-store data not available
111
Country Background
At the heart of Central America, Honduras is a vibrant
country with sparkling clear waters, perfect beaches,
verdant jungles, magnifcent mountains, challenging
rivers, and captivating ancient Mayan ruins. It has a
population of 7.48 million of which 90 percent is
Mestizo (a mixture of Amerindian and European
ancestry), 4 percent Amerindian, 5 percent black and
1 percent white. The capital is Tegucigalpa, however,
San Pedro Sula, its second largest city, is the economic
center. The country is a democratic republic. Public
education is free and obligatory for children aged
seven to 19. The literacy rate is 76.2 percent.
The currency is the Lempira. Economic growth in
the last few years has averaged 5 percent a year, but
around half of the population still remains below the
poverty line. GDP per capita is U.S. $1,170 (2006).
It is estimated that more than 1.2 million people are
unemployed 28 percent of the population.
The country is self-suffcient in electricity production,
using hydropower to generate more than 60 percent
of the countrys electricity.
The region is considered a biodiversity hotspot and
in 1982 Ro Pltano in the La Mosquitia region was
designated a UNESCO World Heritage site. According
to the World Conservation Monitoring Center, Honduras
has 1,214 species of amphibians, birds, mammals
and reptiles. Of these, 6.9 percent are unique to
the country.
Marketing Environment in Honduras
Historically, the country has depended on exports of
agricultural products, such as bananas and coffee.
However, the economy has diversifed in recent decades
and now has a strong export processing industry,
primarily focused on assembling textile and apparel
goods for re-export to the U.S.
It was not until a few years ago that Honduras started to
develop a marketing culture. The main marketing efforts
have been made by foreign multinational companies,
but, little by little, local companies have begun to
incorporate marketing departments. The Honduras
Institute of Tourism completed a project in 2007 to
re-brand the country as a tourist destination to entice
travelers from the U.S. and Canada.
Unique Challenges for Marketers in Honduras
One of the key challenges marketers face when trying
to reach Honduran consumers is that, unlike the other
countries of the Central American region that have one
main city, Honduras has two main cities: Tegucigalpa
and San Pedro Sula. It is therefore important to under-
MA R K E T
F O C U S HONDURAS
Share of Media*
Top Media Outlets in Honduras

Honduras Top Advertisers
1. SAB Miller
2. Unilever
3. PepsiCo
4. Grupo INTUR
5. Tigo
Retailing in Honduras
In recent years the retail sector has seen an increase in
the number of international mass grocery retailers.
Perhaps the most important event of 2006 was the
acquisition of 51 percent of CARHCO (Central American
Retail Holding Company) by Wal-Mart. CARHCO, already
stand how consumer habits, preferences and media
consumption vary from one city to another. In some
cases different marketing strategies must be created
to effectively reach each segment.
Media Environment in Honduras
TV remains the medium with the highest consumption
in Honduran homes. Although mobile use has grown
more slowly in Honduras than the Central American
average, it has increased more rapidly over the past
few years. It is expected that by the end of 2008 a
fourth mobile phone company will be operating in
the market.
As of 2005, the telecoms sector was opened to
private sector companies and Hondutels (the state
telecommunication company) monopoly ended. For
the past two years, the Honduran Congress has been
promoting a bill whose main objective is to promote
international investment in this sector. This bill has
brought three new mobile phone companies and 63
new companies offering different services (Internet,
landline and broadband).

MA R K E T
F O C U S HONDURAS
Television
Televicentro
Canal11
Canal 6
Telered21
Newspaper
La Prensa
El Heraldo
La Tribuna
El Tiempo
Magazines
Hablemos Claro
Web sites
www.laprensahn.com
www.latribuna.hn
www.elheraldo.hn
www.hotmail.com
Penetration (%)
Users (MM)
Mobile
Phone
49
2.24
TV
58
1.02
Computer
Ownership
1
0.12
Internet
Access
5
0.33
Broad-
band
<1
N/A
Radio 10%
Newspaper 30%
TV 60%
* Outdoor, cinema, magazine and in-store data not available
112
MA R K E T
F O C U S HONDURAS
owner of the main grocery retailers in Honduras (La
Despensa de Don Juan, Maxi Bodega, Paiz and Hip-
erpaiz) became Wal-Mart Centroamerica; the largest
retailer in the country.
Tips for Advertisers
Although the popularity of cable TV is rising, TV in
Honduras is still dominated by local media advertising.
Honduran consumers are less exposed to high quality,
innovative and creative advertising from international
media, making it easier for advertisers to create high
impact advertising.
The main cities have experienced a considerable
increase in outdoor advertising, especially billboards.
Local authorities are working on a law that will not
prohibit the use of these media, but instead regulate
the amount of billboards that can be erected.
Key Millward Brown Metrics
Country Average
Involvement
3.42
Awareness
Index
5
Persuasion
40
Enjoyment
4.08
August 2008
Fun Facts and Trivia
Hondurans are often referred to as Catracho or Catracha (female) in
Spanish. The word was coined by Nicaraguans and derives from the last
name of the French Honduran General Florencio Xatruch, who, in 1857, led
Honduran armed forces against an attempted invasion by North American
adventurer William Walker.
At 621 miles (1,000 kilometers) long, Honduras coral reef is the second
largest in the world.
Utila, one of the Honduras Bay Islands, is known as The Whale Shark
Capital as its one of the few places in the world where Whale Shark
frequently pass close to shore. A fve year study of the population
dynamics and ethology of the whale sharks around Utila is currently
underway.
Puerto Corts is one largest port in the region. It has been certifed as a
megaport, one of only three in Latin America.
Unlike other ancient Mayan Ruins, Copn has a magnifcently carved
hieroglyphic stairway which records the history of 17 rulers of the
royal dynasty.
Tips for Visitors
A trip to The Bay Islands is a must. A chain of three islands with pristine
beaches, surrounded by the turquoise waters of the Caribbean Sea, the Bay
Islands are known as the certifcation destination for divers from all over
the world.
Honduras is world famous for its archaeology. Copn offers one of the
Mayan worlds most beautiful and perhaps the best-preserved and
most-studied archaeological sites.
The Fortress of San Fernando de Omoa, built by the Spaniards in colonial
times to protect shipments of silver being sent overseas to Spain, is well
worth a visit.
Honduras previous capital, Comayagua, is a rich cultural and historical city
built according to old Spanish traditions. Among its most impressive build-
ings are the Comayagua Cathedral, the churches of La Merced, La Caridad
and San Francisco.
The Guamilito market offers the most complete selection of Honduran
handicrafts in San Pedro Sula. The market is also a good place to buy
vegetables and fowers. When shopping at the market, always remem-
ber to barter as prices are not fxed and everyone haggles with traders
on price
Eating Out
Honduran cuisine varies from region to region within the country. Its
most notable feature is the use of coconut in the preparation of various
dishes. Perhaps the most popular meal is baleada: a four tortilla which
is folded and flled with refried mashed beans, cheese and sour cream
(in some cases people add roast meat and scrambled eggs).
Another popular dish is yuca con chicharron. The yucca is served with
raw cabbage, chicharrones (deep fried seasoned pork fat and skin) spicy
tomato sauce, onion and spices such as oregano.
Rice and beans is a popular side dish on the Honduran Caribbean Coast
and is cooked in coconut milk with cilantro and spices.
Must Read
Las perras de Teoflito, a book in which you can enjoy reading
about the classical perras (exaggerated stories) that are part of the
Latin culture.
Useful Links
www.letsgohonduras.com
www.honduras.com
www.hondirectorio.com
MA R K E T
F O C U S HONDURAS
113
MA R K E T
F O C U S HONDURAS
owner of the main grocery retailers in Honduras (La
Despensa de Don Juan, Maxi Bodega, Paiz and Hip-
erpaiz) became Wal-Mart Centroamerica; the largest
retailer in the country.
Tips for Advertisers
Although the popularity of cable TV is rising, TV in
Honduras is still dominated by local media advertising.
Honduran consumers are less exposed to high quality,
innovative and creative advertising from international
media, making it easier for advertisers to create high
impact advertising.
The main cities have experienced a considerable
increase in outdoor advertising, especially billboards.
Local authorities are working on a law that will not
prohibit the use of these media, but instead regulate
the amount of billboards that can be erected.
Key Millward Brown Metrics
Country Average
Involvement
3.42
Awareness
Index
5
Persuasion
40
Enjoyment
4.08
August 2008
Fun Facts and Trivia
Hondurans are often referred to as Catracho or Catracha (female) in
Spanish. The word was coined by Nicaraguans and derives from the last
name of the French Honduran General Florencio Xatruch, who, in 1857, led
Honduran armed forces against an attempted invasion by North American
adventurer William Walker.
At 621 miles (1,000 kilometers) long, Honduras coral reef is the second
largest in the world.
Utila, one of the Honduras Bay Islands, is known as The Whale Shark
Capital as its one of the few places in the world where Whale Shark
frequently pass close to shore. A fve year study of the population
dynamics and ethology of the whale sharks around Utila is currently
underway.
Puerto Corts is one largest port in the region. It has been certifed as a
megaport, one of only three in Latin America.
Unlike other ancient Mayan Ruins, Copn has a magnifcently carved
hieroglyphic stairway which records the history of 17 rulers of the
royal dynasty.
Tips for Visitors
A trip to The Bay Islands is a must. A chain of three islands with pristine
beaches, surrounded by the turquoise waters of the Caribbean Sea, the Bay
Islands are known as the certifcation destination for divers from all over
the world.
Honduras is world famous for its archaeology. Copn offers one of the
Mayan worlds most beautiful and perhaps the best-preserved and
most-studied archaeological sites.
The Fortress of San Fernando de Omoa, built by the Spaniards in colonial
times to protect shipments of silver being sent overseas to Spain, is well
worth a visit.
Honduras previous capital, Comayagua, is a rich cultural and historical city
built according to old Spanish traditions. Among its most impressive build-
ings are the Comayagua Cathedral, the churches of La Merced, La Caridad
and San Francisco.
The Guamilito market offers the most complete selection of Honduran
handicrafts in San Pedro Sula. The market is also a good place to buy
vegetables and fowers. When shopping at the market, always remem-
ber to barter as prices are not fxed and everyone haggles with traders
on price
Eating Out
Honduran cuisine varies from region to region within the country. Its
most notable feature is the use of coconut in the preparation of various
dishes. Perhaps the most popular meal is baleada: a four tortilla which
is folded and flled with refried mashed beans, cheese and sour cream
(in some cases people add roast meat and scrambled eggs).
Another popular dish is yuca con chicharron. The yucca is served with
raw cabbage, chicharrones (deep fried seasoned pork fat and skin) spicy
tomato sauce, onion and spices such as oregano.
Rice and beans is a popular side dish on the Honduran Caribbean Coast
and is cooked in coconut milk with cilantro and spices.
Must Read
Las perras de Teoflito, a book in which you can enjoy reading
about the classical perras (exaggerated stories) that are part of the
Latin culture.
Useful Links
www.letsgohonduras.com
www.honduras.com
www.hondirectorio.com
MA R K E T
F O C U S HONDURAS
114
MA R K E T
F O C U S
JAPAN
Country Background
Japan is an island chain between the North Pacifc
Ocean and the Sea of Japan, east of the Korean
Peninsula. Its territory covers 145,882 square miles
(377,835 square kilometers), which is just slightly
smaller than California. It has a population of 127
million (estimated July 2008), of which one-quarter
live in the Greater Tokyo Area.
Japan is the worlds second largest economy after the
U.S. and has a GDP of U.S. $4.5 trillion. A world leader
in technology and engineering, Japan is home to some
of the worlds biggest automotive and electronics brands.
Life expectancy in Japan is the highest in the world at
82.07 years and the population is now rapidly aging.
By 2050 the proportion of people aged over 65 is
projected to reach 40 percent. This is a potential source
of serious social and economic problems, due to a
shrinking workforce and increased health costs.
Marketing Environment in Japan
Over the last three decades, Japan has experienced
spectacular economic growth. However, sliding stock
and real estate prices marked the end of the bubble
economy of the late 1980s, and ushered in a decade
of stagnant economic growth. But by 2003 the economy
had began to recover and this continued into 2007.
The current economic outlook is uncertain. Rising
energy prices and the global economic slowdown have
taken their toll on Japan. The economy sank in the
second quarter of 2008, dragged down by weakening
exports and decreasing consumer spending. Wages
have been declining recently and unemployment is on
the rise.
Unique Challenges for Marketers in Japan
Japan is notorious for its rapid innovation lifecycles. In
some categories the average lifecycle of an SKU (stock
keeping unit) is only a couple months, so maximizing
sales in a short period of time and keeping a constant
supply of innovations in the pipeline are key.
% people who
defnitely agree
I like to dress well without spending a large
amount of money
Personal hygiene is important to me
I have a strong interest in health.
A microwave oven is very useful for preparing food
When considering a loan, the interest rate is
important to me
I often watch TV while doing something else
I am anxious about the aging of society
I read ads in which I am in interested
When considering making an investment I prefer
accounts that offer lower interest rates but are low risk
I am very interested in nature
Statement
85
79
76
75
72
71
71
68
67
65
Source: Japan TGI 2007
Global TGI is owned by Millward Browns sister company KMR
www.tgisurveys.com
Top 10 Lifestyle Statements in Japan
Satellite media and the Internet are the fastest
growing channels in terms of spend. Mobile ad spend
is projected to reach JPY 130 billion (U.S. $1.21 billion)
in three years triple the current spend.
The majority (85 percent) of spots in Japan are 15 seconds.
On average each person sees 1,000 commercials each
week, which makes Japan the most cluttered ad market
in the world.
Consumer tastes and expectations in many product
categories (e.g., fashion and food) are radically different
from those of their Western counterparts. This often
means marketing strategies and product development
have to be customized for Japan.
Peer infuence and conforming to the expectations of
ones environment are still fundamental in Japanese
society. Word of mouth is therefore a key infuence on
consumer choice.
Japan has seen a major change its socioeconomic
structure. There is an increasing divide between the
haves and the have-nots. While there is a constantly
increasing number of people who have no savings and
receive welfare, there are 1.41 million people with assets
of JPY 100 million (U.S. $933,000) or more. This has
led to the emergence of a two-tier price positioning:
value for money and extremely high-end.
Media Environment in Japan
The total annual ad spend in Japan is around JPY 7,000
billion (U.S. $65 billion), an increase of 1. 1 percent since
2007. Growth in spending has been slowing over recent
years.
Penetration (%)
Users (MM)
Mobile
Phone
80
100
TV*
99
50
Computer
Ownership*
85
42.5
Internet
Access
69
88
Broad-
band
66
58
* Households
MA R K E T
F O C U S
JAPAN
Share of Media
Newspaper 13.5%
TV 28.5%
Radio 2.4%
Telephone Directories 1.4%
Satellite Media .8%
Internet 8.6%
Magazines 6.5%
Direct Mail 6.5%
Outdoor 5.8%
Free Mags/Newspaper 5.2%
Exhibitions/Screen Displays 5. 1%
Transit 3.7%
Flyers 9.3%
Source: Dentsu Inc.
Top Media Outlets in Japan
Television
NHK
NTV
TBS
Fuji TV
TV Asahi
TV Tokyo
Newspaper
Yomiuri Shnibun
Asahi Shinbun
Mainichi
Nihon Keizai
Sankei
Magazines
Weekly Shonen Jump
Weekly Shonen Magazine
Weekly Shonen Sunday
Weekly Young Jump
Weekly Young Mag
Big Comic Original
Web sites
Yahoo! Sites
Google Sites
Rakuten Inc
Microsoft Sites
FC2 inc.
NTT Group
115
MA R K E T
F O C U S
JAPAN
Country Background
Japan is an island chain between the North Pacifc
Ocean and the Sea of Japan, east of the Korean
Peninsula. Its territory covers 145,882 square miles
(377,835 square kilometers), which is just slightly
smaller than California. It has a population of 127
million (estimated July 2008), of which one-quarter
live in the Greater Tokyo Area.
Japan is the worlds second largest economy after the
U.S. and has a GDP of U.S. $4.5 trillion. A world leader
in technology and engineering, Japan is home to some
of the worlds biggest automotive and electronics brands.
Life expectancy in Japan is the highest in the world at
82.07 years and the population is now rapidly aging.
By 2050 the proportion of people aged over 65 is
projected to reach 40 percent. This is a potential source
of serious social and economic problems, due to a
shrinking workforce and increased health costs.
Marketing Environment in Japan
Over the last three decades, Japan has experienced
spectacular economic growth. However, sliding stock
and real estate prices marked the end of the bubble
economy of the late 1980s, and ushered in a decade
of stagnant economic growth. But by 2003 the economy
had began to recover and this continued into 2007.
The current economic outlook is uncertain. Rising
energy prices and the global economic slowdown have
taken their toll on Japan. The economy sank in the
second quarter of 2008, dragged down by weakening
exports and decreasing consumer spending. Wages
have been declining recently and unemployment is on
the rise.
Unique Challenges for Marketers in Japan
Japan is notorious for its rapid innovation lifecycles. In
some categories the average lifecycle of an SKU (stock
keeping unit) is only a couple months, so maximizing
sales in a short period of time and keeping a constant
supply of innovations in the pipeline are key.
% people who
defnitely agree
I like to dress well without spending a large
amount of money
Personal hygiene is important to me
I have a strong interest in health.
A microwave oven is very useful for preparing food
When considering a loan, the interest rate is
important to me
I often watch TV while doing something else
I am anxious about the aging of society
I read ads in which I am in interested
When considering making an investment I prefer
accounts that offer lower interest rates but are low risk
I am very interested in nature
Statement
85
79
76
75
72
71
71
68
67
65
Source: Japan TGI 2007
Global TGI is owned by Millward Browns sister company KMR
www.tgisurveys.com
Top 10 Lifestyle Statements in Japan
Satellite media and the Internet are the fastest
growing channels in terms of spend. Mobile ad spend
is projected to reach JPY 130 billion (U.S. $1.21 billion)
in three years triple the current spend.
The majority (85 percent) of spots in Japan are 15 seconds.
On average each person sees 1,000 commercials each
week, which makes Japan the most cluttered ad market
in the world.
Consumer tastes and expectations in many product
categories (e.g., fashion and food) are radically different
from those of their Western counterparts. This often
means marketing strategies and product development
have to be customized for Japan.
Peer infuence and conforming to the expectations of
ones environment are still fundamental in Japanese
society. Word of mouth is therefore a key infuence on
consumer choice.
Japan has seen a major change its socioeconomic
structure. There is an increasing divide between the
haves and the have-nots. While there is a constantly
increasing number of people who have no savings and
receive welfare, there are 1.41 million people with assets
of JPY 100 million (U.S. $933,000) or more. This has
led to the emergence of a two-tier price positioning:
value for money and extremely high-end.
Media Environment in Japan
The total annual ad spend in Japan is around JPY 7,000
billion (U.S. $65 billion), an increase of 1. 1 percent since
2007. Growth in spending has been slowing over recent
years.
Penetration (%)
Users (MM)
Mobile
Phone
80
100
TV*
99
50
Computer
Ownership*
85
42.5
Internet
Access
69
88
Broad-
band
66
58
* Households
MA R K E T
F O C U S
JAPAN
Share of Media
Newspaper 13.5%
TV 28.5%
Radio 2.4%
Telephone Directories 1.4%
Satellite Media .8%
Internet 8.6%
Magazines 6.5%
Direct Mail 6.5%
Outdoor 5.8%
Free Mags/Newspaper 5.2%
Exhibitions/Screen Displays 5. 1%
Transit 3.7%
Flyers 9.3%
Source: Dentsu Inc.
Top Media Outlets in Japan
Television
NHK
NTV
TBS
Fuji TV
TV Asahi
TV Tokyo
Newspaper
Yomiuri Shnibun
Asahi Shinbun
Mainichi
Nihon Keizai
Sankei
Magazines
Weekly Shonen Jump
Weekly Shonen Magazine
Weekly Shonen Sunday
Weekly Young Jump
Weekly Young Mag
Big Comic Original
Web sites
Yahoo! Sites
Google Sites
Rakuten Inc
Microsoft Sites
FC2 inc.
NTT Group
116
Japans Top Advertisers
1. Toyota
2. SoftBank
3. Matsushita Electric
4. Kirin Brewery
5. Honda
Retailing in Japan
Private sector consumption, which exceeds 50 percent
of the Japanese GDP, is the most important driver of
the Japanese economy.
The number of retail stores peaked in the mid-1980s
and has since declined. Japanese department stores
have struggled, but the number of specialty super-
stores and convenience stores (kombinis) has been
increasing. There are now over 40,000 kombinis in
Japan selling everything from food, magazines, DVDs,
shirts, concert tickets and allowing customers to pay
utility bills and send parcels.
At the start of the economic crisis, discounters entered
the country offering value for money goods. After some
initial success consumers were driven away by products
that were lower quality than Japanese consumers were
used to. Several of these have gone bankrupt (Daiei),
pulled out (Carrefour) or are currently struggling
(Wall-Mart which has share in Seiyu).
Despite the economic problems, Japan remains a healthy
market for prestige brands. Louis Vuitton is said to make
around 50 percent of its global sales in Japan.
Online retail in Japan is developing dynamically. The average
Japanese Web surfer spends more than U.S. $400 on
online purchases per year and the fgure is projected to
grow above U.S. $700 by 2010.
Tips for Advertisers
Cutting through the clutter is a major hurdle for
advertisers in Japan.
Consumers tend to highly value simplicity. Complicated
creative ideas that are diffcult to understand tend to
perform poorly in Japan.
Celebrities are very widely used in Japanese advertising
and often promote several brands at the same time. To
ensure impact, advertisers should only choose those
celebrities which have genuine appeal in Japan and have
not been overused by other brands. Thus genuine celebrity
impact can be hoped only from those celebrities who
have a genuine awareness and appeal and havent been
overused by other brands.
Key Millward Brown Metrics
MA R K E T
F O C U S
JAPAN
Country Average
Involvement
5.86
Awareness
Index
4
Persuasion
2.7
Enjoyment
3.64
September 2008
Fun Facts and Trivia
The sun circle (hinomaru) Japans national symbol was used by
Samurai warriors on folding fans in the 12th century.
At the peak of economic prosperity in the 1980s, the piece of land occupied
by the Imperial Palace in central Tokyo was valued (not that it was ever on
sale) the same as the whole of California.
Japan has 5.5 million vending machines. In metropolitan areas there is one
vending machine for every 30 people. They sell soft drinks, canned coffee,
beer and cigarettes.
Over 3.5 million passengers pass through Tokyos Shinjuku station every day,
making it the busiest train station in the world.
Hachiko is the name of a dog, a symbol of faithfulness, who has a statue
near Shibuya Station in Tokyo. During his owners life, Hachiko saw his owner
off and greeted him at the end of the day at the entrance of the station.
Even after his owners death Hachiko returned to the station every day.
Harajuku Girls are a major attraction in Tokyo named after the Tokyo
district where they gather on weekends, wearing bizarre clothes, makeup
and accessories.
94.3 percent of all Japanese women in their 20s own a piece of
Louis Vuitton clothing or an accessory.
Seven out of Japans top 10 selling magazines are manga (Japanese
for comics).
Since 2006 most blog posts in the world have been written in Japanese
(closely followed by English).
Based on the number of patents per million of the population, Japan is the
most innovative country in the world.
Walkmans, CDs, hybrid cars and instant noodles are all Japanese innovations.
Eating Out
There are more Michelin star restaurants in Tokyo than in Paris.
Tokyo has an estimated 60,000 restaurants, so there is something to suit all
tastes and budgets.
Be sure to visit an Izakaya, the Japanese version of a pub. They serve a large
variety of staple foods, such as yakitori (chicken skewers) and a range of
alcoholic drinks.
There is much more to Japanese food than sushi. But if you want to
try the best sushi the Tsukiji Fish Market is the place to go. One of the
worlds biggest wholesale fsh markets, it is most active in the early
hours of the day, so brace yourself for an early start!
Other things you shouldnt miss are ramen (a rich and delicious noodle
soup), gyoza (fried dumplings) with a variety fllings, tempura (vegeta-
ble or seafood fried in batter), and for gourmets with more refned taste
try kaiseki ryori (Japanese haute cuisine) which consists of small, simple
and aesthetically arranged, delicious dishes.
To Buy
Kimonos, geta (typical Japanese wooden slippers), sake, katana
(Japanese swords) and electronic gadgets.
The most advanced cosmetic products in the world.
Extravagant fashion accessories from Harajuku.
A selection of kawai (cute) objects featuring Hello Kitty ranging from
portable ashtrays to underwear.
Sushi-shaped USB drives.
To Read
The Wind-up Bird Chronicle by Haruki Murakami is an extraordinary
novel by one of Japans internationally acclaimed contemporary novelists.
Dogs and Daemons by Alex Kerr. An intriguing book of essays on con-
temporary Japanese society.
The Makioka Sisters by Yunichiro Tanizaki. An interesting book about four
daughters of a wealthy Osaka family in the early years of World World II.
Useful Links
Japans National Tourist Organizations site has lots of useful information:
www.jnto.go.jp.
Practical information for visitors can be found at: gojapan.about.com.
For English language news and a glimpse into everyday life in Japan visit:
www.japantimes.co.jp/life.html.
MA R K E T
F O C U S
JAPAN
117
Japans Top Advertisers
1. Toyota
2. SoftBank
3. Matsushita Electric
4. Kirin Brewery
5. Honda
Retailing in Japan
Private sector consumption, which exceeds 50 percent
of the Japanese GDP, is the most important driver of
the Japanese economy.
The number of retail stores peaked in the mid-1980s
and has since declined. Japanese department stores
have struggled, but the number of specialty super-
stores and convenience stores (kombinis) has been
increasing. There are now over 40,000 kombinis in
Japan selling everything from food, magazines, DVDs,
shirts, concert tickets and allowing customers to pay
utility bills and send parcels.
At the start of the economic crisis, discounters entered
the country offering value for money goods. After some
initial success consumers were driven away by products
that were lower quality than Japanese consumers were
used to. Several of these have gone bankrupt (Daiei),
pulled out (Carrefour) or are currently struggling
(Wall-Mart which has share in Seiyu).
Despite the economic problems, Japan remains a healthy
market for prestige brands. Louis Vuitton is said to make
around 50 percent of its global sales in Japan.
Online retail in Japan is developing dynamically. The average
Japanese Web surfer spends more than U.S. $400 on
online purchases per year and the fgure is projected to
grow above U.S. $700 by 2010.
Tips for Advertisers
Cutting through the clutter is a major hurdle for
advertisers in Japan.
Consumers tend to highly value simplicity. Complicated
creative ideas that are diffcult to understand tend to
perform poorly in Japan.
Celebrities are very widely used in Japanese advertising
and often promote several brands at the same time. To
ensure impact, advertisers should only choose those
celebrities which have genuine appeal in Japan and have
not been overused by other brands. Thus genuine celebrity
impact can be hoped only from those celebrities who
have a genuine awareness and appeal and havent been
overused by other brands.
Key Millward Brown Metrics
MA R K E T
F O C U S
JAPAN
Country Average
Involvement
5.86
Awareness
Index
4
Persuasion
2.7
Enjoyment
3.64
September 2008
Fun Facts and Trivia
The sun circle (hinomaru) Japans national symbol was used by
Samurai warriors on folding fans in the 12th century.
At the peak of economic prosperity in the 1980s, the piece of land occupied
by the Imperial Palace in central Tokyo was valued (not that it was ever on
sale) the same as the whole of California.
Japan has 5.5 million vending machines. In metropolitan areas there is one
vending machine for every 30 people. They sell soft drinks, canned coffee,
beer and cigarettes.
Over 3.5 million passengers pass through Tokyos Shinjuku station every day,
making it the busiest train station in the world.
Hachiko is the name of a dog, a symbol of faithfulness, who has a statue
near Shibuya Station in Tokyo. During his owners life, Hachiko saw his owner
off and greeted him at the end of the day at the entrance of the station.
Even after his owners death Hachiko returned to the station every day.
Harajuku Girls are a major attraction in Tokyo named after the Tokyo
district where they gather on weekends, wearing bizarre clothes, makeup
and accessories.
94.3 percent of all Japanese women in their 20s own a piece of
Louis Vuitton clothing or an accessory.
Seven out of Japans top 10 selling magazines are manga (Japanese
for comics).
Since 2006 most blog posts in the world have been written in Japanese
(closely followed by English).
Based on the number of patents per million of the population, Japan is the
most innovative country in the world.
Walkmans, CDs, hybrid cars and instant noodles are all Japanese innovations.
Eating Out
There are more Michelin star restaurants in Tokyo than in Paris.
Tokyo has an estimated 60,000 restaurants, so there is something to suit all
tastes and budgets.
Be sure to visit an Izakaya, the Japanese version of a pub. They serve a large
variety of staple foods, such as yakitori (chicken skewers) and a range of
alcoholic drinks.
There is much more to Japanese food than sushi. But if you want to
try the best sushi the Tsukiji Fish Market is the place to go. One of the
worlds biggest wholesale fsh markets, it is most active in the early
hours of the day, so brace yourself for an early start!
Other things you shouldnt miss are ramen (a rich and delicious noodle
soup), gyoza (fried dumplings) with a variety fllings, tempura (vegeta-
ble or seafood fried in batter), and for gourmets with more refned taste
try kaiseki ryori (Japanese haute cuisine) which consists of small, simple
and aesthetically arranged, delicious dishes.
To Buy
Kimonos, geta (typical Japanese wooden slippers), sake, katana
(Japanese swords) and electronic gadgets.
The most advanced cosmetic products in the world.
Extravagant fashion accessories from Harajuku.
A selection of kawai (cute) objects featuring Hello Kitty ranging from
portable ashtrays to underwear.
Sushi-shaped USB drives.
To Read
The Wind-up Bird Chronicle by Haruki Murakami is an extraordinary
novel by one of Japans internationally acclaimed contemporary novelists.
Dogs and Daemons by Alex Kerr. An intriguing book of essays on con-
temporary Japanese society.
The Makioka Sisters by Yunichiro Tanizaki. An interesting book about four
daughters of a wealthy Osaka family in the early years of World World II.
Useful Links
Japans National Tourist Organizations site has lots of useful information:
www.jnto.go.jp.
Practical information for visitors can be found at: gojapan.about.com.
For English language news and a glimpse into everyday life in Japan visit:
www.japantimes.co.jp/life.html.
MA R K E T
F O C U S
JAPAN
118
M A R K E T
F O C U S
SWEDEN
Country Background
Sweden is located in the northernmost part of Europe
and is part of Scandinavia and the Nordics.
Sweden has a population of just over 9 million, of
which 8.6 percent live in the capital Stockholm.
The second and third largest cities are Gteborg
and Malm, with 5.3 percent and 3. 1 percent of
the population respectively.
By enjoying peace and neutrality for the whole of the
20th century, Sweden has achieved an enviably high
standard of living. Sweden ranks in the top 10 countries
in the world with a GDP per capita of U.S. $36,500
(2007 estimate). The unemployment rate is 5.2 percent.
Sweden joined the EU in 1995, but the public rejected
the introduction of the euro in a referendum in
September 2003, the main concerns being the impact
on the economy and sovereignty.
Marketing Environment in Sweden
Swedens successful economic formula of a capitalist
system with substantial welfare elements was chal-
lenged in the 1990s by high unemployment and later
by the global economic downturn. But the country
has weathered the erratic economic conditions of the
past few years and now Sweden is in the midst of a
sustained economic upswing, boosted by increased
domestic demand and strong exports.
Traditionally, there has been a strong interest in envi-
ronmental issues in Sweden which, in many ways, has
been reinforced by increased global publicity about
green issues.
Unique Challenges for Marketers in Your Country
There is a long standing tradition of equality between the
sexes in Sweden.The population is sensitive to gender
issues and will not stand for harsh treatment or lack of
respect so marketers must take care not to cause offence.
Sweden has relatively strict rules on advertising in
certain categories. The key restrictions are:
Tobacco: prohibited
Alcohol: TV and radio ads are banned and there are
restrictions for print ads
Prescription pharmaceuticals: prohibited
Politics and religions: permitted
Children: No advertising immediately before, during or
immediately after childrens programs. No advertising is
allowed that targets children under 12 years old.
Scheduling feldwork during 15th June15th August and
12th December8th January is usually a very bad idea
since most people are on holiday. Response rates drop
signifcantly almost overnight and therefore feldwork
can grind to a halt if not timed correctly. CAWI surveys
are also at risk since many people choose not to read
any e-mails during their vacation.
Media Environment in Sweden
Swedes are large-scale consumers of mass media.
On average, each person spends six hours or more
per day watching TV, reading the papers, listening to the
radio and browsing the Internet.
Sweden has one of the most developed Internet and
broadband networks in the EU and one of the highest
penetration rates in the world. This has been helped
by investment in high-speed fber optic networks.
Connections are very cheap in 2006 the cost for an
always-on 100 Mbps broadband connection was $10.79
a month the cheapest of all the countries in the
Organisation for Economic Development (OECD).
Sweden was the frst country in the world to digitize its
entire TV network. The last analogue transmitter was shut
down on 15th October 2007. Television has boomed in
the last two decades and there are now a multitude of
domestic channels most of them commercial as well
as channels from all over the world. There are fve main
channels two state-fnanced and three privately owned
channels which dominate the TV market.
In Sweden, more people are choosing not to have a
landline phone. This combined with a law passed in
2007, which prohibits anyone making unsolicited phone
calls to a mobile phone unless the owner is at home at
the time, can potentially make CATI very ineffcient.
Systembolaget has an agreement with the Swedish
state and is the only retailer allowed to sell alcoholic
beverages that contain more than 3.5 percent alcohol.
All marketing activities must be for the company itself
and its own services, never for an individual product.
All products are taxed on alcohol content, not on price,
and all products have the same proft margin. Products
must be sold individually;discounts and offers such as
buy one get one free are prohibited.
MA R K E T
F O C U S
SWEDEN
% people who
defnitely agree
People have to take me as they fnd me
It is important to continue learning new things
throughout your life
It is important to have a lasting relationship with
one partner
I think we should strive for equality for all
If at frst you do not succeed you must keep trying
Children should be allowed to express themselves
freely
I like to have a circle of friends who support me
in hard times
It is important to be well informed about things
It is hard to get enough time for everything
I have no health problems that limit my quality of life
Statement
65
62
60
58
53
45
43
41
41
40
Sweden TGI 2007 Sifo 2007
Top 10 Lifestyle Statements in Sweden
Penetration (%)
Users (MM)
Mobile
Phone
(9-79
years)
96***
7.5
TV
98
4.5****
Computer
Ownership
(16-74
years)
86
5.8
Internet
Access
(16-74
years)
81-84*
5.6
Broad-
band
(16-74
years)
74**
5.0
in-home if asked anywhere the fgure is >90%
also includes mobile broadband
actual penetration the ratio of subscriptions/population is 114%(!)
households
*
**
***
****
119
M A R K E T
F O C U S
SWEDEN
Country Background
Sweden is located in the northernmost part of Europe
and is part of Scandinavia and the Nordics.
Sweden has a population of just over 9 million, of
which 8.6 percent live in the capital Stockholm.
The second and third largest cities are Gteborg
and Malm, with 5.3 percent and 3. 1 percent of
the population respectively.
By enjoying peace and neutrality for the whole of the
20th century, Sweden has achieved an enviably high
standard of living. Sweden ranks in the top 10 countries
in the world with a GDP per capita of U.S. $36,500
(2007 estimate). The unemployment rate is 5.2 percent.
Sweden joined the EU in 1995, but the public rejected
the introduction of the euro in a referendum in
September 2003, the main concerns being the impact
on the economy and sovereignty.
Marketing Environment in Sweden
Swedens successful economic formula of a capitalist
system with substantial welfare elements was chal-
lenged in the 1990s by high unemployment and later
by the global economic downturn. But the country
has weathered the erratic economic conditions of the
past few years and now Sweden is in the midst of a
sustained economic upswing, boosted by increased
domestic demand and strong exports.
Traditionally, there has been a strong interest in envi-
ronmental issues in Sweden which, in many ways, has
been reinforced by increased global publicity about
green issues.
Unique Challenges for Marketers in Your Country
There is a long standing tradition of equality between the
sexes in Sweden.The population is sensitive to gender
issues and will not stand for harsh treatment or lack of
respect so marketers must take care not to cause offence.
Sweden has relatively strict rules on advertising in
certain categories. The key restrictions are:
Tobacco: prohibited
Alcohol: TV and radio ads are banned and there are
restrictions for print ads
Prescription pharmaceuticals: prohibited
Politics and religions: permitted
Children: No advertising immediately before, during or
immediately after childrens programs. No advertising is
allowed that targets children under 12 years old.
Scheduling feldwork during 15th June15th August and
12th December8th January is usually a very bad idea
since most people are on holiday. Response rates drop
signifcantly almost overnight and therefore feldwork
can grind to a halt if not timed correctly. CAWI surveys
are also at risk since many people choose not to read
any e-mails during their vacation.
Media Environment in Sweden
Swedes are large-scale consumers of mass media.
On average, each person spends six hours or more
per day watching TV, reading the papers, listening to the
radio and browsing the Internet.
Sweden has one of the most developed Internet and
broadband networks in the EU and one of the highest
penetration rates in the world. This has been helped
by investment in high-speed fber optic networks.
Connections are very cheap in 2006 the cost for an
always-on 100 Mbps broadband connection was $10.79
a month the cheapest of all the countries in the
Organisation for Economic Development (OECD).
Sweden was the frst country in the world to digitize its
entire TV network. The last analogue transmitter was shut
down on 15th October 2007. Television has boomed in
the last two decades and there are now a multitude of
domestic channels most of them commercial as well
as channels from all over the world. There are fve main
channels two state-fnanced and three privately owned
channels which dominate the TV market.
In Sweden, more people are choosing not to have a
landline phone. This combined with a law passed in
2007, which prohibits anyone making unsolicited phone
calls to a mobile phone unless the owner is at home at
the time, can potentially make CATI very ineffcient.
Systembolaget has an agreement with the Swedish
state and is the only retailer allowed to sell alcoholic
beverages that contain more than 3.5 percent alcohol.
All marketing activities must be for the company itself
and its own services, never for an individual product.
All products are taxed on alcohol content, not on price,
and all products have the same proft margin. Products
must be sold individually;discounts and offers such as
buy one get one free are prohibited.
MA R K E T
F O C U S
SWEDEN
% people who
defnitely agree
People have to take me as they fnd me
It is important to continue learning new things
throughout your life
It is important to have a lasting relationship with
one partner
I think we should strive for equality for all
If at frst you do not succeed you must keep trying
Children should be allowed to express themselves
freely
I like to have a circle of friends who support me
in hard times
It is important to be well informed about things
It is hard to get enough time for everything
I have no health problems that limit my quality of life
Statement
65
62
60
58
53
45
43
41
41
40
Sweden TGI 2007 Sifo 2007
Top 10 Lifestyle Statements in Sweden
Penetration (%)
Users (MM)
Mobile
Phone
(9-79
years)
96***
7.5
TV
98
4.5****
Computer
Ownership
(16-74
years)
86
5.8
Internet
Access
(16-74
years)
81-84*
5.6
Broad-
band
(16-74
years)
74**
5.0
in-home if asked anywhere the fgure is >90%
also includes mobile broadband
actual penetration the ratio of subscriptions/population is 114%(!)
households
*
**
***
****
120
Swedens Top Advertisers
1. ICA
2. Telia
3. COOP
4. Unilever Sweden
5. LOral Sweden
Retailing in Sweden
The Swedish retail market has shifted in recent years from
a very diverse market with many small grocery stores
scattered across all residential areas, to a market with
very large shopping outlets and malls where the entire
family can spend an entire day doing all of their shopping.
Local budget stores still exist, but they have frequently
become part of a larger chain of stores often branded as
a budget version and sometimes even as a localized
version of the parent chain.
There are a few very dominant players on the market,
but they are increasingly being put under heavy pressure
by large international chains. The distributors have strong
negotiating power in comparison to the producers and this
results in fairly low prices and a wide product choice for
consumers.
Tips for Advertisers
Swedes have a low-key, but sophisticated sense of humor,
and are not afraid to laugh at themselves. This can be
exploited to advertisers advantage.
The average user spends more than 1.5 hours on the
Internet each day, reducing the time spent watching
prime-time TV. Because the Internet penetration is
so high, web advertising could be refned and used
in a much more sophisticated way than today. Older
sections of the population are also highly web profcient
and should not be neglected by advertisers as they have
relatively high purchasing power.
Key Millward Brown Metrics
MA R K E T
F O C U S
SWEDEN
Top Media Outlets in Sweden
Television
SVT1
TV4
SVT2
TV3
Kanal 5
Newspaper
Aftonbladet
Dagens Nyheter
Expressen (incl. GT
and Kvllsposten)
Gteborgs-Posten
Svenska Dagbladet
Magazines
Buff
IKEA Family Live
Kommunalarbetaren
Hem & Hyra
Dagens Arbete
Web sites
google.se
msn.se
aftonbladet.se
blocket.se
eniro.se
Country Average
Involvement
3.97
Awareness
Index
6
Persuasion
2.28
Enjoyment
2.85
October 2008
Fun Facts and Trivia
Treriksrset is located in the north where the borders of Sweden, Norway
and Finland meet, and is on the same latitude as the north of Alaska. Part
of Sweden is therefore above the Polar Circle and so, in the summertime,
the sun never sets.
Until the break-up of the Soviet Union, Sweden was the only country to have
a fag colored just blue and yellow. The oldest pictures of a blue cloth with a
yellow cross date from the 16th century.
Sweden previously had colonies in the West Indies, Africa and North
America.
Swedens best-selling author is Astrid Lindgren. Her books have been trans-
lated into over 70 languages. The worlds second largest literary prize (after
the Nobel Prize) is the Astrid Lindgren Memorial Award.
14 of the sites on UNESCOs World Heritage list are in Sweden.
The Right of Public Access (Allemansrtten) is unique to Sweden and gives
the general public the right to access certain public or privately owned land
for recreation and exercise.
In Jukkasjrvi, 124 miles (200 kilometers) north of the Arctic Circle, lies
Swedens IceHotel the hotel, which is made entirely of ice, melts away
every spring and is re-built each winter.
The scientist, inventor, entrepreneur, author and pacifst Alfred Nobel who
invented dynamite and held the frst patent on nitroglycerine was Swedish.
The Nobel Prize was established after his death, according to the wishes in
his will.
Other famous Swedish inventors include: Anders Celsius (the 100-point
thermometer scale), Jns Jacob Berzelius (the frst table of atomic masses),
Johan Petter Johansson (the adjustable spanner), Sven Wingquist (the
spherical bearing), Rune Elmqvist (the pacemaker), Lars Leksell (a laser knife
for brain surgery), Nils Bohlin (the three-point safety belt), Gideon Sundback
(the zip), Erik Wallenberg (Tetra Pak), Gustaf Erik Pasch (the safety match),
Gustaf de Laval (the milk-cream separator) and Lars Magnus Ericsson (the
telephone handset).
Eating Out
Sweden is a multicultural society, so youll fnd something to suit every taste
from Spanish to Indian to American; from cheap (but good!) street vendors
to Michelin star fne-dining. Of course you will always be able to fnd tradi-
tional Swedish food as well, such as meatballs or herring.
The Swedes frequently eat lunch away from the offce, so dont be
surprised to fnd the restaurants crowded and the streets swamped
with people hurrying to their favorite place at lunchtime.
A service charge is included in the bill.
No smoking is allowed in public places, including restaurants.
Not all restaurants have the right to serve alcohol.
To Buy
Hand blown and hand painted glass and crystal Sweden is famous
for its numerous small glass factories, many of which can be found in
Smland in the south of Sweden. Visit www.glasriket.se
Hjortronsylt (cloudberry jam). Cloudberries grow wild in the north
of Sweden. The jam is heated and used as a topping for ice-cream or
waffes.
Dalahst (dala horse) are hand-painted wooden horses. They come in
different sizes and colors, but traditionally they are red.
Traditional handicrafts made by the Sami indigenous people who live
in the far north of Scandinavia.
Sweden is well-known for leading design in many felds including furni-
ture, interiors, glass, textiles, ceramics, wood and metal.
Must Read
Anything by Astrid Lindgren
Rda Rummet by August Strindberg
Gsta Berlings Saga by Selma Lagerlf
Gst hos verkligheten by Pr Lagerkvist
Aniara by Harry Martinson
Useful Links
www.sweden.se
www.visitsweden.com
www.visit-stockholm.com
www.stockholmtown.com
www.sverigeturism.se/smorgasbord
MA R K E T
F O C U S
SWEDEN
121
Swedens Top Advertisers
1. ICA
2. Telia
3. COOP
4. Unilever Sweden
5. LOral Sweden
Retailing in Sweden
The Swedish retail market has shifted in recent years from
a very diverse market with many small grocery stores
scattered across all residential areas, to a market with
very large shopping outlets and malls where the entire
family can spend an entire day doing all of their shopping.
Local budget stores still exist, but they have frequently
become part of a larger chain of stores often branded as
a budget version and sometimes even as a localized
version of the parent chain.
There are a few very dominant players on the market,
but they are increasingly being put under heavy pressure
by large international chains. The distributors have strong
negotiating power in comparison to the producers and this
results in fairly low prices and a wide product choice for
consumers.
Tips for Advertisers
Swedes have a low-key, but sophisticated sense of humor,
and are not afraid to laugh at themselves. This can be
exploited to advertisers advantage.
The average user spends more than 1.5 hours on the
Internet each day, reducing the time spent watching
prime-time TV. Because the Internet penetration is
so high, web advertising could be refned and used
in a much more sophisticated way than today. Older
sections of the population are also highly web profcient
and should not be neglected by advertisers as they have
relatively high purchasing power.
Key Millward Brown Metrics
MA R K E T
F O C U S
SWEDEN
Top Media Outlets in Sweden
Television
SVT1
TV4
SVT2
TV3
Kanal 5
Newspaper
Aftonbladet
Dagens Nyheter
Expressen (incl. GT
and Kvllsposten)
Gteborgs-Posten
Svenska Dagbladet
Magazines
Buff
IKEA Family Live
Kommunalarbetaren
Hem & Hyra
Dagens Arbete
Web sites
google.se
msn.se
aftonbladet.se
blocket.se
eniro.se
Country Average
Involvement
3.97
Awareness
Index
6
Persuasion
2.28
Enjoyment
2.85
October 2008
Fun Facts and Trivia
Treriksrset is located in the north where the borders of Sweden, Norway
and Finland meet, and is on the same latitude as the north of Alaska. Part
of Sweden is therefore above the Polar Circle and so, in the summertime,
the sun never sets.
Until the break-up of the Soviet Union, Sweden was the only country to have
a fag colored just blue and yellow. The oldest pictures of a blue cloth with a
yellow cross date from the 16th century.
Sweden previously had colonies in the West Indies, Africa and North
America.
Swedens best-selling author is Astrid Lindgren. Her books have been trans-
lated into over 70 languages. The worlds second largest literary prize (after
the Nobel Prize) is the Astrid Lindgren Memorial Award.
14 of the sites on UNESCOs World Heritage list are in Sweden.
The Right of Public Access (Allemansrtten) is unique to Sweden and gives
the general public the right to access certain public or privately owned land
for recreation and exercise.
In Jukkasjrvi, 124 miles (200 kilometers) north of the Arctic Circle, lies
Swedens IceHotel the hotel, which is made entirely of ice, melts away
every spring and is re-built each winter.
The scientist, inventor, entrepreneur, author and pacifst Alfred Nobel who
invented dynamite and held the frst patent on nitroglycerine was Swedish.
The Nobel Prize was established after his death, according to the wishes in
his will.
Other famous Swedish inventors include: Anders Celsius (the 100-point
thermometer scale), Jns Jacob Berzelius (the frst table of atomic masses),
Johan Petter Johansson (the adjustable spanner), Sven Wingquist (the
spherical bearing), Rune Elmqvist (the pacemaker), Lars Leksell (a laser knife
for brain surgery), Nils Bohlin (the three-point safety belt), Gideon Sundback
(the zip), Erik Wallenberg (Tetra Pak), Gustaf Erik Pasch (the safety match),
Gustaf de Laval (the milk-cream separator) and Lars Magnus Ericsson (the
telephone handset).
Eating Out
Sweden is a multicultural society, so youll fnd something to suit every taste
from Spanish to Indian to American; from cheap (but good!) street vendors
to Michelin star fne-dining. Of course you will always be able to fnd tradi-
tional Swedish food as well, such as meatballs or herring.
The Swedes frequently eat lunch away from the offce, so dont be
surprised to fnd the restaurants crowded and the streets swamped
with people hurrying to their favorite place at lunchtime.
A service charge is included in the bill.
No smoking is allowed in public places, including restaurants.
Not all restaurants have the right to serve alcohol.
To Buy
Hand blown and hand painted glass and crystal Sweden is famous
for its numerous small glass factories, many of which can be found in
Smland in the south of Sweden. Visit www.glasriket.se
Hjortronsylt (cloudberry jam). Cloudberries grow wild in the north
of Sweden. The jam is heated and used as a topping for ice-cream or
waffes.
Dalahst (dala horse) are hand-painted wooden horses. They come in
different sizes and colors, but traditionally they are red.
Traditional handicrafts made by the Sami indigenous people who live
in the far north of Scandinavia.
Sweden is well-known for leading design in many felds including furni-
ture, interiors, glass, textiles, ceramics, wood and metal.
Must Read
Anything by Astrid Lindgren
Rda Rummet by August Strindberg
Gsta Berlings Saga by Selma Lagerlf
Gst hos verkligheten by Pr Lagerkvist
Aniara by Harry Martinson
Useful Links
www.sweden.se
www.visitsweden.com
www.visit-stockholm.com
www.stockholmtown.com
www.sverigeturism.se/smorgasbord
MA R K E T
F O C U S
SWEDEN
122
MA R K E T
F O C U S
SINGAPORE
Country Background
Once a British colony, today this South-East Asian hub
boasts a thriving port and a GDP of U.S. $227 billion
(based on purchasing power parity). With an area of
just 700 square kilometers and a population of 4.8
million, Singapore is one of the most densely populated
countries in the world.
Three-quarters of the population is Chinese, while
Malays and Indians make up most of the remainder
along with a small proportion of immigrants of other
nationalities. Singapore also attracts a lot of foreign
workers and this group has experienced the highest
growth in population, increasing by 19 percent since
2007. The offcial languages are English, Malay,
Mandarin and Tamil.
Last year Singapores economy grew by nearly 8
percent, although economic forecasts this year have
dropped to around 3.4 percent. and a recovery depends
on the global economy. The services and tourism in-
dustry saw a 3.4 percent growth in retail sales last year,
however growth will be slower in these areas as well.
The offcial currency is the Singapore dollar and the
countrys main exports include electronics, computer
equipment, and rubber and petroleum products.
Marketing Environment in Singapore
Singapore is one of the fastest growing Asian countries.
With the current global economic downturn, the property
market has slowed considerably and private home sales
have fallen by over 60 percent compared to 2007.
However, there has been some positive infuence on
domestic prices. Infation has stabilized and rises in the
Goods and Service (import) Tax have ceased.
Singapore has bounced back effectively from past
crises such as the Asian economic slump in 1997 and
the SARS virus outbreak in 2003. Despite the current
global slowdown, with its encouraging retail market
and growing spending power, Singapore shows signs
of resilience.
Foreign tourists make a signifcant contribution to
Singapores retail industry. In 2007, the country received
over 10 million visitors. However, tourist arrivals dropped
by 7.7 percent in 2008.
Unique Challenges for Marketers in Singapore
Over the years, Singapore has attracted signifcant
foreign investment partly due to its interesting blend
of east and west. But being a multi-racial and multi-
religious country requires a tolerant and cohesive
attitude from its people. Marketers also need to
understand the differences in behavior between
Chinese, Malay and other consumer groups.
The Singapore consumer is typically discerning and
brand conscious. They are willing to spend signifcantly
on branded goods and hi-tech gadgets, but can still be
in Singapore. The country has a large private capital
of nearly U.S. $500 million allocated for research
and development in the media sector. Plans are also
underway to develop a next generation broadband
network to further develop this as a regional media hub.
value driven when it comes to the purchase of basic
commodities and foods. Consumer spending has been
declining over the past few years, albeit from a high
level, as consumers become more cautious amidst
global economic uncertainty and rising prices. Infation
rose steadily to reach 6.4 percent in August 2008.
Singapore is a modern and developed market, which is
more open compared to other countries in the region.
Because the population is relatively small and concen-
trated, sometimes global companies hesitate to invest in
marketing strategies tailored exclusively for Singapore.
Media Environment in Singapore
Overview of Media Environment
The media industry in Singapore is reported to have
generated revenue of over U.S. $18.2 billion. Singapore
Press Holdings (SPH) publishes 14 newspapers and most
of the major magazines, covering almost 80 percent of
the market. SPH also holds a stake in Mediacorp, which
controls the local free-to-air television channels.
The gaming industry is rapidly growing and has attracted
gaming and animation developers, such as Lucasflm,
Inc., to set up their frst studio outside of the U.S.
MA R K E T
F O C U S
SINGAPORE
Household
Penetration (%)
Users (%)
Mobile
Phone
134.2
6. 1*
TV
99
-
Computer
Ownership
79
90
Internet
Access
74
87
Broad-
band
86.8
4*
Outdoor 7.3%
Radio 7.2%
Magazines 6. 1%
Interaction 2.4%
Cinema .7%
TV 30. 1%
Newspaper 46.2%
Share of Media
Top Media Outlets in Singapore
Television
Channel 8
Channel U
Channel 5
Central
Suria
Newspaper
The Sunday Times
The Straits Times
Lianhe Zaobao
(Chinese Daily)
The New Paper
Shin Min Daily News
(Chinese)
Magazines
FHM Singapore
8 Days
Her World
Big O
Food & Entertainment
Web sites
Google
Yahoo
Mail Live
You Tube
MSN
* Millions of subscriptions
123
MA R K E T
F O C U S
SINGAPORE
Country Background
Once a British colony, today this South-East Asian hub
boasts a thriving port and a GDP of U.S. $227 billion
(based on purchasing power parity). With an area of
just 700 square kilometers and a population of 4.8
million, Singapore is one of the most densely populated
countries in the world.
Three-quarters of the population is Chinese, while
Malays and Indians make up most of the remainder
along with a small proportion of immigrants of other
nationalities. Singapore also attracts a lot of foreign
workers and this group has experienced the highest
growth in population, increasing by 19 percent since
2007. The offcial languages are English, Malay,
Mandarin and Tamil.
Last year Singapores economy grew by nearly 8
percent, although economic forecasts this year have
dropped to around 3.4 percent. and a recovery depends
on the global economy. The services and tourism in-
dustry saw a 3.4 percent growth in retail sales last year,
however growth will be slower in these areas as well.
The offcial currency is the Singapore dollar and the
countrys main exports include electronics, computer
equipment, and rubber and petroleum products.
Marketing Environment in Singapore
Singapore is one of the fastest growing Asian countries.
With the current global economic downturn, the property
market has slowed considerably and private home sales
have fallen by over 60 percent compared to 2007.
However, there has been some positive infuence on
domestic prices. Infation has stabilized and rises in the
Goods and Service (import) Tax have ceased.
Singapore has bounced back effectively from past
crises such as the Asian economic slump in 1997 and
the SARS virus outbreak in 2003. Despite the current
global slowdown, with its encouraging retail market
and growing spending power, Singapore shows signs
of resilience.
Foreign tourists make a signifcant contribution to
Singapores retail industry. In 2007, the country received
over 10 million visitors. However, tourist arrivals dropped
by 7.7 percent in 2008.
Unique Challenges for Marketers in Singapore
Over the years, Singapore has attracted signifcant
foreign investment partly due to its interesting blend
of east and west. But being a multi-racial and multi-
religious country requires a tolerant and cohesive
attitude from its people. Marketers also need to
understand the differences in behavior between
Chinese, Malay and other consumer groups.
The Singapore consumer is typically discerning and
brand conscious. They are willing to spend signifcantly
on branded goods and hi-tech gadgets, but can still be
in Singapore. The country has a large private capital
of nearly U.S. $500 million allocated for research
and development in the media sector. Plans are also
underway to develop a next generation broadband
network to further develop this as a regional media hub.
value driven when it comes to the purchase of basic
commodities and foods. Consumer spending has been
declining over the past few years, albeit from a high
level, as consumers become more cautious amidst
global economic uncertainty and rising prices. Infation
rose steadily to reach 6.4 percent in August 2008.
Singapore is a modern and developed market, which is
more open compared to other countries in the region.
Because the population is relatively small and concen-
trated, sometimes global companies hesitate to invest in
marketing strategies tailored exclusively for Singapore.
Media Environment in Singapore
Overview of Media Environment
The media industry in Singapore is reported to have
generated revenue of over U.S. $18.2 billion. Singapore
Press Holdings (SPH) publishes 14 newspapers and most
of the major magazines, covering almost 80 percent of
the market. SPH also holds a stake in Mediacorp, which
controls the local free-to-air television channels.
The gaming industry is rapidly growing and has attracted
gaming and animation developers, such as Lucasflm,
Inc., to set up their frst studio outside of the U.S.
MA R K E T
F O C U S
SINGAPORE
Household
Penetration (%)
Users (%)
Mobile
Phone
134.2
6. 1*
TV
99
-
Computer
Ownership
79
90
Internet
Access
74
87
Broad-
band
86.8
4*
Outdoor 7.3%
Radio 7.2%
Magazines 6. 1%
Interaction 2.4%
Cinema .7%
TV 30. 1%
Newspaper 46.2%
Share of Media
Top Media Outlets in Singapore
Television
Channel 8
Channel U
Channel 5
Central
Suria
Newspaper
The Sunday Times
The Straits Times
Lianhe Zaobao
(Chinese Daily)
The New Paper
Shin Min Daily News
(Chinese)
Magazines
FHM Singapore
8 Days
Her World
Big O
Food & Entertainment
Web sites
Google
Yahoo
Mail Live
You Tube
MSN
* Millions of subscriptions
124
Singapores Top Advertisers (2005)
1. Starhub
2. Procter & Gamble
3. M1
4. Cold Storage
5. MediaCorp
Retailing in Singapore
Singapore is one of the most prosperous consumer
markets in South East Asia. Overall, Singapore is quite a
sophisticated market where people are discerning about
brands and shopping plays an important part in life.
Retail growth has been healthy and consistent over the last
few years. Today nearly 95 percent of people belong to the
middle and upper income groups, thus consumer spending
power is rising. Convenience stores and grocery chains saw
the greatest growth in the retail sector during 2007.
Asian consumers tend to be more conservative than
their western counterparts and prefer to be able to view
potential purchases before making a decision. As a result,
store based retail growth is much higher than non-store
retail. However, with the recent developments in digital
media, more people have been encouraged to buy online
and this trend is quickly growing.
Tips for Advertisers
Singaporeans are more collective than individualistic. For
these reasons, advertisers need to remember that they
are targeting an Asian audience that follows Asian tradi-
tions, but aspires to lead a Western lifestyle. Successful
advertising themes often carry elements of team spirit,
family values, aspiring youth and planning for the future.
When developing marketing strategies, marketers should
keep in mind that each ethnic group behaves differently.
While some may be more family-orientated, others are
more practical and forward thinking.
Key Millward Brown Metrics
MA R K E T
F O C U S
SINGAPORE
% people who
defnitely agree
It is important to continue learning new things
throughout your life
I think it is important to have a lasting relationship
with one partner
If at frst you do not succeed you must keep trying
You should seize opportunities in life when they arise
I dont like the idea of being in debt
Children should be allowed to express
themselves freely
It is important to be well informed about things
It is important to respect traditional customs
and beliefs
I like to have a circle of close friends who support
me in hard times
It is important that my family thinks I am doing well
Statement
86
85
85
85
82
79
78
77
76
75
Singapore Media Index 2007 (July 2006 - June 2007)
Nielsen Media Index
Top 10 Lifestyle Statements in Singapore
Country Average
Involvement
5.21
Awareness
Index
5
Persuasion
15
Enjoyment
3.61
Note: Singapore uses an AI score of 5 as an average, although this score has
not been validated by tracking data.
November 2008
Fun Facts and Trivia
The 2008 Singtel Singapore F1 Grand Prix was the frst night race in the
world and the frst street race in Asia.
Singapore is Asias top convention city and has maintained this position for
the ninth time in the ICCA 2007 Global Rankings.
Singlish, the uniquely Singaporean English is basically English spoken with a
sprinkling of Chinese, Malay and even Tamil words. Learn to tag sentences
with lah and youll ft right in!
English is the offcial language, but the most widely used is Malay. Even the
national anthem Majulah Singapura is sung in Malay.
Singapores Night Safari is the frst zoo in the world to offer an animal safari
by moonlight.
At 30 meters high, The Jurong Bird Park has the worlds highest man made
waterfall.
The UK/Europe edition of Business Traveler magazine named Singapores
Changi Airport as the Best Airport in the World in 2003, for the 16th
consecutive time.
8 out of 10 people in Singapore own a cell phone. Singapores telecom
companies issue more than 40,000 new numbers per month.
The well-known cocktail Singapore Sling was frst served in 1915. It contains
cherry brandy, gin, Cointreau, Dom Benedictine, pineapple juice, Grenadine,
Angoustura bitters and lime juice.
Earlier this year, the Singapore Flyer began operation. At 165 meters, it is
the largest observation wheel in the world.
Top Tips
Like most equatorial countries, Singapore is known to have sudden and
intense showers. It is advisable to always carry an umbrella.
Despite being westernized, Singapore still follows Asian etiquette and culture.
Courtesy is therefore very important. People do not blatantly say no,
instead body language and other subtle hints are used in such cases to
avoid causing offence.
Business cards should always be given and received with both hands.
They should be looked at with interest and not hastily put away.
Eating Out
Singapore is known to be the food paradise of Asia. Strategically located,
with a wide mix of cultures, this island offers diverse ethnic cuisines. Be
sure to try the food at the hawker centers found at street corners of the
most populated areas. Here you can treat yourself to delicious Asian
food, from Chinese to Thai and Indian to Indonesian cuisine, which is
cheap and served quickly.
Some must haves at the local hawker centers and food courts are:
Laksa, glass noodles, hokkein noodles, roti prata (an Indian style bread
pastry served with curry), nasi padang (Malay fried rice), chicken rice and
ice kopi (a Singapore style iced coffee).
Restaurants, bars and clubs housed in colorful buildings dot the Singa-
pore River in an area known today as Clark Quay. Unique to Singapore,
this riverside location serves a whole range of cuisines from Thai food
on a house boat, to exotic Moroccan delights served in authentic Middle
Eastern ambience.
For a more exclusive, private dining experience, head to the Dempsey
area of Singapore which has some of the most high-end speciality
restaurants in Asia.
To Buy
Shopping and eating are the favourite pastimes of most Singaporeans.
Malls on Orchard Road boast the worlds best brands. Suntec City Mall
and the recently opened Vivo City provide endless acres of shopping
space and you can be sure to fnd all your favorite brands here.
Must Read/See
Singapore English in a Nutshell: An Alphabetical Description of its
Features by Adam Brown
Money No Enough directed by Tay Teck Lock is Singapores all time
highest grossing flm. This was made in the wake of the Asian fnancial
crisis and is a satire on certain aspects of Singaporean life.
Useful Links
Singapore travel guide and map site www.streetdirectory.com.sg
All you need to know about eating out in Singapore
www.makantime.com
MA R K E T
F O C U S
SINGAPORE
125
Singapores Top Advertisers (2005)
1. Starhub
2. Procter & Gamble
3. M1
4. Cold Storage
5. MediaCorp
Retailing in Singapore
Singapore is one of the most prosperous consumer
markets in South East Asia. Overall, Singapore is quite a
sophisticated market where people are discerning about
brands and shopping plays an important part in life.
Retail growth has been healthy and consistent over the last
few years. Today nearly 95 percent of people belong to the
middle and upper income groups, thus consumer spending
power is rising. Convenience stores and grocery chains saw
the greatest growth in the retail sector during 2007.
Asian consumers tend to be more conservative than
their western counterparts and prefer to be able to view
potential purchases before making a decision. As a result,
store based retail growth is much higher than non-store
retail. However, with the recent developments in digital
media, more people have been encouraged to buy online
and this trend is quickly growing.
Tips for Advertisers
Singaporeans are more collective than individualistic. For
these reasons, advertisers need to remember that they
are targeting an Asian audience that follows Asian tradi-
tions, but aspires to lead a Western lifestyle. Successful
advertising themes often carry elements of team spirit,
family values, aspiring youth and planning for the future.
When developing marketing strategies, marketers should
keep in mind that each ethnic group behaves differently.
While some may be more family-orientated, others are
more practical and forward thinking.
Key Millward Brown Metrics
MA R K E T
F O C U S
SINGAPORE
% people who
defnitely agree
It is important to continue learning new things
throughout your life
I think it is important to have a lasting relationship
with one partner
If at frst you do not succeed you must keep trying
You should seize opportunities in life when they arise
I dont like the idea of being in debt
Children should be allowed to express
themselves freely
It is important to be well informed about things
It is important to respect traditional customs
and beliefs
I like to have a circle of close friends who support
me in hard times
It is important that my family thinks I am doing well
Statement
86
85
85
85
82
79
78
77
76
75
Singapore Media Index 2007 (July 2006 - June 2007)
Nielsen Media Index
Top 10 Lifestyle Statements in Singapore
Country Average
Involvement
5.21
Awareness
Index
5
Persuasion
15
Enjoyment
3.61
Note: Singapore uses an AI score of 5 as an average, although this score has
not been validated by tracking data.
November 2008
Fun Facts and Trivia
The 2008 Singtel Singapore F1 Grand Prix was the frst night race in the
world and the frst street race in Asia.
Singapore is Asias top convention city and has maintained this position for
the ninth time in the ICCA 2007 Global Rankings.
Singlish, the uniquely Singaporean English is basically English spoken with a
sprinkling of Chinese, Malay and even Tamil words. Learn to tag sentences
with lah and youll ft right in!
English is the offcial language, but the most widely used is Malay. Even the
national anthem Majulah Singapura is sung in Malay.
Singapores Night Safari is the frst zoo in the world to offer an animal safari
by moonlight.
At 30 meters high, The Jurong Bird Park has the worlds highest man made
waterfall.
The UK/Europe edition of Business Traveler magazine named Singapores
Changi Airport as the Best Airport in the World in 2003, for the 16th
consecutive time.
8 out of 10 people in Singapore own a cell phone. Singapores telecom
companies issue more than 40,000 new numbers per month.
The well-known cocktail Singapore Sling was frst served in 1915. It contains
cherry brandy, gin, Cointreau, Dom Benedictine, pineapple juice, Grenadine,
Angoustura bitters and lime juice.
Earlier this year, the Singapore Flyer began operation. At 165 meters, it is
the largest observation wheel in the world.
Top Tips
Like most equatorial countries, Singapore is known to have sudden and
intense showers. It is advisable to always carry an umbrella.
Despite being westernized, Singapore still follows Asian etiquette and culture.
Courtesy is therefore very important. People do not blatantly say no,
instead body language and other subtle hints are used in such cases to
avoid causing offence.
Business cards should always be given and received with both hands.
They should be looked at with interest and not hastily put away.
Eating Out
Singapore is known to be the food paradise of Asia. Strategically located,
with a wide mix of cultures, this island offers diverse ethnic cuisines. Be
sure to try the food at the hawker centers found at street corners of the
most populated areas. Here you can treat yourself to delicious Asian
food, from Chinese to Thai and Indian to Indonesian cuisine, which is
cheap and served quickly.
Some must haves at the local hawker centers and food courts are:
Laksa, glass noodles, hokkein noodles, roti prata (an Indian style bread
pastry served with curry), nasi padang (Malay fried rice), chicken rice and
ice kopi (a Singapore style iced coffee).
Restaurants, bars and clubs housed in colorful buildings dot the Singa-
pore River in an area known today as Clark Quay. Unique to Singapore,
this riverside location serves a whole range of cuisines from Thai food
on a house boat, to exotic Moroccan delights served in authentic Middle
Eastern ambience.
For a more exclusive, private dining experience, head to the Dempsey
area of Singapore which has some of the most high-end speciality
restaurants in Asia.
To Buy
Shopping and eating are the favourite pastimes of most Singaporeans.
Malls on Orchard Road boast the worlds best brands. Suntec City Mall
and the recently opened Vivo City provide endless acres of shopping
space and you can be sure to fnd all your favorite brands here.
Must Read/See
Singapore English in a Nutshell: An Alphabetical Description of its
Features by Adam Brown
Money No Enough directed by Tay Teck Lock is Singapores all time
highest grossing flm. This was made in the wake of the Asian fnancial
crisis and is a satire on certain aspects of Singaporean life.
Useful Links
Singapore travel guide and map site www.streetdirectory.com.sg
All you need to know about eating out in Singapore
www.makantime.com
MA R K E T
F O C U S
SINGAPORE
126
Country Background
Romania is a country located in Southeast Europe,
bordering on the Black Sea. It is divided into 41 coun-
ties and one municipality.
As a nation-state, the country was formed by the
merging of Moldavia and Tara Romaneasca in 1859
and gained recognition of its independence in 1878.
In 1918, they were joined by Transylvania, Bukovina
and Bessavabia. With the fall of communism in 1989,
Romania started a series of political and economic
reforms and joined the EU on 1 January 2007. With a
GDP of around U.S. $161 billion and a GDP per capita
of U.S. $7015 estimated for 2008, Romania is an
upper-middle income country economy.
With more than 22 million people, Romania has the
seventh largest population among the EU member
states. Its capital and largest city is Bucharest the
sixth largest city in the EU with 1.9 million inhabitants.
Romania joined NATO in March 2004.
Almost 90 percent of the population is Romanian. Hungar-
ians make up 6.6 percent of the population and are the
largest ethnic minority in Romania, representing a sizeable
minority in Transylvania, and a majority in the counties of
Harghita and Covasna.
The offcial language is Romanian. The currency is the
Leu (RON).
Marketing Environment in Romania
After the Communist regime was overthrown in late 1989,
the country experienced a decade of economic instability
and decline, led in part by an obsolete industrial base and
a lack of structural reform. From 2000 onwards, however,
the Romanian economy was transformed into one of
relative macroeconomic stability, characterized by high
growth, low unemployment and declining infation.
Exports have increased substantially in the past few
years, with a 25 percent year-on-year rise in the frst
quarter of 2006. Romanias main exports are clothing
and textiles, industrial machinery, electrical and elec-
tronic equipment, metallurgic products, cars, military
equipment, chemicals, and agricultural products. The
economy is predominantly service based, which ac-
counts for 55 percent of the GDP. However, industry
and agriculture also make a signifcant contribution,
making up 35 percent and 10 percent of GDP, respec-
tively. A third the population is employed in agriculture
and primary production one of the highest rates in
Europe.
Since 2000, Romania has attracted increasing
amounts of foreign investment, becoming the single
largest investment destination in Southeast and Central
Europe. Foreign direct investment was valued at U.S.
$10.6 billion in 2006. In July 2008 the average net
monthly wage was approximately U.S. $411.
MA R K E T
F O C U S ROMANIA
State-run Radio Romania operates four national networks
and regional and local stations.
Romanias newspaper market thrived after the 1989
revolution, but many newspapers subsequently closed
because of rising costs.
Unique Challenges for Marketers in Romania
Since joining the EU, FMCG/CPG marketing in Romania
has become increasingly tough due to the competition
from cheaper Hungarian and Bulgarian brands. From
2009, marketers in Romania will have to adapt their
communication strategies to target the growing seg-
ment of Romanians who have worked abroad and are
now coming back home. Those that have worked in
and have been exposed to marketing communications
in Western Europe often return to Romania with certain
expectations and perceptions of advertising. Some
even have different purchasing behaviors.
Media Environment in Romania
Romania has one of the most dynamic media markets
in Southeastern Europe. TV is the most popular medium
and most people have cable. State-owned Romania 1
and the private stations Pro TV and Antena receive the
largest audiences. The state broadcaster, TVR, operates
a second national network, TVR 2, and a pan-European
satellite channel.
The frst private radio stations began broadcasting in
1990 and there are now more than 100 of them.
Penetration (%)
Users (MM)
Mobile
Phone
110
24.3
TV
100
22
Computer
Ownership
65
14
Internet
Access
55
12
Broad-
band
10
2
Top Media Outlets in Romania
Television
PRO TV
Antena 1
Acasa TV
Prima TV
TVR 1
Newspaper
Libertatea
Jurnalul National
Gazeta Sporturilor
Evenimentul Zilei
CAN CAN
Adevarul
Magazines
Femeia
Ioana
Ce se intampla doctore?
(Whats up, doc?)
Ciao!
Auto Motor si Sport
Bravo
Web sites
www.neogen.ro
www.trilulilu.ro
www.ejobs.ro
www.gsp.ro
www.prosport.ro
www.clopotel.ro
MA R K E T
F O C U S ROMANIA
Print
17%
TV
65% Internet
2%
OOH & Indoor
10%
Radio
6%
Share of Media
Source: Media FactBook 2008
127
Country Background
Romania is a country located in Southeast Europe,
bordering on the Black Sea. It is divided into 41 coun-
ties and one municipality.
As a nation-state, the country was formed by the
merging of Moldavia and Tara Romaneasca in 1859
and gained recognition of its independence in 1878.
In 1918, they were joined by Transylvania, Bukovina
and Bessavabia. With the fall of communism in 1989,
Romania started a series of political and economic
reforms and joined the EU on 1 January 2007. With a
GDP of around U.S. $161 billion and a GDP per capita
of U.S. $7015 estimated for 2008, Romania is an
upper-middle income country economy.
With more than 22 million people, Romania has the
seventh largest population among the EU member
states. Its capital and largest city is Bucharest the
sixth largest city in the EU with 1.9 million inhabitants.
Romania joined NATO in March 2004.
Almost 90 percent of the population is Romanian. Hungar-
ians make up 6.6 percent of the population and are the
largest ethnic minority in Romania, representing a sizeable
minority in Transylvania, and a majority in the counties of
Harghita and Covasna.
The offcial language is Romanian. The currency is the
Leu (RON).
Marketing Environment in Romania
After the Communist regime was overthrown in late 1989,
the country experienced a decade of economic instability
and decline, led in part by an obsolete industrial base and
a lack of structural reform. From 2000 onwards, however,
the Romanian economy was transformed into one of
relative macroeconomic stability, characterized by high
growth, low unemployment and declining infation.
Exports have increased substantially in the past few
years, with a 25 percent year-on-year rise in the frst
quarter of 2006. Romanias main exports are clothing
and textiles, industrial machinery, electrical and elec-
tronic equipment, metallurgic products, cars, military
equipment, chemicals, and agricultural products. The
economy is predominantly service based, which ac-
counts for 55 percent of the GDP. However, industry
and agriculture also make a signifcant contribution,
making up 35 percent and 10 percent of GDP, respec-
tively. A third the population is employed in agriculture
and primary production one of the highest rates in
Europe.
Since 2000, Romania has attracted increasing
amounts of foreign investment, becoming the single
largest investment destination in Southeast and Central
Europe. Foreign direct investment was valued at U.S.
$10.6 billion in 2006. In July 2008 the average net
monthly wage was approximately U.S. $411.
MA R K E T
F O C U S ROMANIA
State-run Radio Romania operates four national networks
and regional and local stations.
Romanias newspaper market thrived after the 1989
revolution, but many newspapers subsequently closed
because of rising costs.
Unique Challenges for Marketers in Romania
Since joining the EU, FMCG/CPG marketing in Romania
has become increasingly tough due to the competition
from cheaper Hungarian and Bulgarian brands. From
2009, marketers in Romania will have to adapt their
communication strategies to target the growing seg-
ment of Romanians who have worked abroad and are
now coming back home. Those that have worked in
and have been exposed to marketing communications
in Western Europe often return to Romania with certain
expectations and perceptions of advertising. Some
even have different purchasing behaviors.
Media Environment in Romania
Romania has one of the most dynamic media markets
in Southeastern Europe. TV is the most popular medium
and most people have cable. State-owned Romania 1
and the private stations Pro TV and Antena receive the
largest audiences. The state broadcaster, TVR, operates
a second national network, TVR 2, and a pan-European
satellite channel.
The frst private radio stations began broadcasting in
1990 and there are now more than 100 of them.
Penetration (%)
Users (MM)
Mobile
Phone
110
24.3
TV
100
22
Computer
Ownership
65
14
Internet
Access
55
12
Broad-
band
10
2
Top Media Outlets in Romania
Television
PRO TV
Antena 1
Acasa TV
Prima TV
TVR 1
Newspaper
Libertatea
Jurnalul National
Gazeta Sporturilor
Evenimentul Zilei
CAN CAN
Adevarul
Magazines
Femeia
Ioana
Ce se intampla doctore?
(Whats up, doc?)
Ciao!
Auto Motor si Sport
Bravo
Web sites
www.neogen.ro
www.trilulilu.ro
www.ejobs.ro
www.gsp.ro
www.prosport.ro
www.clopotel.ro
MA R K E T
F O C U S ROMANIA
Print
17%
TV
65% Internet
2%
OOH & Indoor
10%
Radio
6%
Share of Media
Source: Media FactBook 2008
128
Romanias Top Advertisers (companies)
1. Procter & Gamble
2. Unilever
3. LOral Romania
4. Coca-Cola
5. Danone
Source: AlfaCont MediaWatch, 2007
Romanias Top Advertisers (brands)
1. Cosmote
2. LOral
3. Garnier
4. Danone
5. Orange
6. Vodafone
Source: Campaign Magazine, May 2008
Retailing in Romania
Retail grew rapidly between 2002 and 2007. This was
due to increased purchasing power, large amounts of
money being sent home by Romanians working abroad
and the increased availability of loans. Modern outlets
such as supermarkets and hypermarkets grew by over
400 percent and are still growing, while trade in smaller,
traditional retailers dropped by almost 10 percent.
The expansion of modern trade has led to changes in
consumption behavior. For example, Romanians now
tend to buy less often, but in bigger quantities due to
the availability of cheap multipack options. They are
also buying more specialized products. More stores are
offering the option to pay by card and the popularity
of this is growing. There has been an increased interest
in private labels, which only appeared in Romania a few
years ago.
The increased price pressure and demand for promotions
is likely to further erode the turnover of traditional trade
in the future.
Top Retailers in Romania
1. Metro Cash & Carry
2. Selgros Cash & Carry
3. Carrefour Romania
4. Kaufand Romania
5. real Hypermarket Romania
Tips for Advertisers
The majority of Romanians (81 percent) consider ce-
lebrity endorsement of some products or services as
appropriate. Overall, TV stars are the most suitable public
fgures for endorsing most types of products or services.
Experts in the feld are also suitable for fnancial services,
dairy products, processed meat products and household
cleaners. At the opposite end are fashion celebrities, who
are only suited to promoting cosmetics, and sportsper-
sons, who are associated to a higher extent with beer.
Of the products/services that are least associated with
celebrities, the most noteable example is coffee.
Key Millward Brown Metrics
Romania
Involvement
4.44
Awareness
Index
5
Persuasion
20.63
Enjoyment
3.72
MA R K E T
F O C U S ROMANIA
December 2008
Fun Facts and Trivia
Count Dracula, a fctional character in Bram Stokers 1897 novel, is believed
to have been inspired by the 15th Century Prince Vlad III the Impaler. The
Bran Castle, associated with Vlad, is one of Romanias most popular tourist
attractions.
Nadia Comaneci is a Romanian gymnast and winner of fve Olympic gold
medals. At the Montreal Games in 1976 she became the frst gymnast to be
awarded a perfect score of 10 at the Olympics.
Romanias Danube Delta was designated a World Heritage site in 1991 and is
the second largest delta in the whole of Europe.
The Transylvanian city of Sibiu was credited as the European Capital of
Culture 2007.
Top Tips
Handshaking is used to greet people. It is also customary to kiss when being
introduced to a woman.
Tip between 5 and 10 percent in restaurants, hotels and when using taxis.
The voltage is 230 V and the frequency is 50 Hz.
Eating Out
The main local dishes are:
Sarmale - minced meat, rice, onions and spices are mixed and then rolled
into grape or cabbage leaves and cooked in hot water for a couple of hours.
Mititei - grilled, spiced meatballs usually made from beef or beef and
mutton.
Mamaliga (polenta) once used as a substitute for bread in poorer areas
of the country, now its served everywhere. Made out of yellow maize and
cooked in boiling water with salt, it can either be cut into slices just like bread
when cold or served hot mixed with cheese and eggs
Cozonac a cake prepared during Christmas or Easter, made with bread,
milk, sugar, eggs, butter and different fllings such as raisins, nuts, cocoa, etc.
Zacusca a very popular winter dish made of vegetables. The main ingre-
dients are eggplant (aubergine), red peppers and onions and, depending on
the maker, it can also contain tomatoes, carrots,
mushrooms and olives etc. It is a commonly eaten spread on bread.
Salata de vinete (eggplant salad) - a salad made from grilled and
chopped eggplants and onions.
Try palinca. Containing 60 percent alcohol it is one of the strongest
Romanian drinks. Also on offer is tuica, usually made from plums.
Many Romanians living in rural areas distill these at home.
Romania is also a big wine producer. Some of the best wineries are
Murfatlar, Cotnari, Bohotin and Jidvei.
To Buy
Painted eggs, carved wood, pottery, glass products and woven textiles
such rugs, wall hangings, table covers and embroidered clothing.
Useful Links
www.romaniatourism.com
www.focusromania.com
www.romania.org
MA R K E T
F O C U S ROMANIA
129
Romanias Top Advertisers (companies)
1. Procter & Gamble
2. Unilever
3. LOral Romania
4. Coca-Cola
5. Danone
Source: AlfaCont MediaWatch, 2007
Romanias Top Advertisers (brands)
1. Cosmote
2. LOral
3. Garnier
4. Danone
5. Orange
6. Vodafone
Source: Campaign Magazine, May 2008
Retailing in Romania
Retail grew rapidly between 2002 and 2007. This was
due to increased purchasing power, large amounts of
money being sent home by Romanians working abroad
and the increased availability of loans. Modern outlets
such as supermarkets and hypermarkets grew by over
400 percent and are still growing, while trade in smaller,
traditional retailers dropped by almost 10 percent.
The expansion of modern trade has led to changes in
consumption behavior. For example, Romanians now
tend to buy less often, but in bigger quantities due to
the availability of cheap multipack options. They are
also buying more specialized products. More stores are
offering the option to pay by card and the popularity
of this is growing. There has been an increased interest
in private labels, which only appeared in Romania a few
years ago.
The increased price pressure and demand for promotions
is likely to further erode the turnover of traditional trade
in the future.
Top Retailers in Romania
1. Metro Cash & Carry
2. Selgros Cash & Carry
3. Carrefour Romania
4. Kaufand Romania
5. real Hypermarket Romania
Tips for Advertisers
The majority of Romanians (81 percent) consider ce-
lebrity endorsement of some products or services as
appropriate. Overall, TV stars are the most suitable public
fgures for endorsing most types of products or services.
Experts in the feld are also suitable for fnancial services,
dairy products, processed meat products and household
cleaners. At the opposite end are fashion celebrities, who
are only suited to promoting cosmetics, and sportsper-
sons, who are associated to a higher extent with beer.
Of the products/services that are least associated with
celebrities, the most noteable example is coffee.
Key Millward Brown Metrics
Romania
Involvement
4.44
Awareness
Index
5
Persuasion
20.63
Enjoyment
3.72
MA R K E T
F O C U S ROMANIA
December 2008
Fun Facts and Trivia
Count Dracula, a fctional character in Bram Stokers 1897 novel, is believed
to have been inspired by the 15th Century Prince Vlad III the Impaler. The
Bran Castle, associated with Vlad, is one of Romanias most popular tourist
attractions.
Nadia Comaneci is a Romanian gymnast and winner of fve Olympic gold
medals. At the Montreal Games in 1976 she became the frst gymnast to be
awarded a perfect score of 10 at the Olympics.
Romanias Danube Delta was designated a World Heritage site in 1991 and is
the second largest delta in the whole of Europe.
The Transylvanian city of Sibiu was credited as the European Capital of
Culture 2007.
Top Tips
Handshaking is used to greet people. It is also customary to kiss when being
introduced to a woman.
Tip between 5 and 10 percent in restaurants, hotels and when using taxis.
The voltage is 230 V and the frequency is 50 Hz.
Eating Out
The main local dishes are:
Sarmale - minced meat, rice, onions and spices are mixed and then rolled
into grape or cabbage leaves and cooked in hot water for a couple of hours.
Mititei - grilled, spiced meatballs usually made from beef or beef and
mutton.
Mamaliga (polenta) once used as a substitute for bread in poorer areas
of the country, now its served everywhere. Made out of yellow maize and
cooked in boiling water with salt, it can either be cut into slices just like bread
when cold or served hot mixed with cheese and eggs
Cozonac a cake prepared during Christmas or Easter, made with bread,
milk, sugar, eggs, butter and different fllings such as raisins, nuts, cocoa, etc.
Zacusca a very popular winter dish made of vegetables. The main ingre-
dients are eggplant (aubergine), red peppers and onions and, depending on
the maker, it can also contain tomatoes, carrots,
mushrooms and olives etc. It is a commonly eaten spread on bread.
Salata de vinete (eggplant salad) - a salad made from grilled and
chopped eggplants and onions.
Try palinca. Containing 60 percent alcohol it is one of the strongest
Romanian drinks. Also on offer is tuica, usually made from plums.
Many Romanians living in rural areas distill these at home.
Romania is also a big wine producer. Some of the best wineries are
Murfatlar, Cotnari, Bohotin and Jidvei.
To Buy
Painted eggs, carved wood, pottery, glass products and woven textiles
such rugs, wall hangings, table covers and embroidered clothing.
Useful Links
www.romaniatourism.com
www.focusromania.com
www.romania.org
MA R K E T
F O C U S ROMANIA
130
Country Background
Nigeria has an estimated population of over 140 million,
the biggest in Africa. One in every fve Africans is a
Nigerian. It one of the most densely populated large
countries in the world.
The state of Nigeria is a relatively new, artifcial creation
of British colonialism, and the different regions have
relatively little in common. The arid north lies largely
within the Sahel region just south of the Sahara and is
predominantly Muslim. The south has a tropical climate
lying along the Gulf of Guinea and is mainly Christian.
Since unifcation in 1912 and independence in 1960 the
fragmented nature of Nigerian society has led to inter-
nal strife, political unrest and civil war. For many years
this severely hampered the countrys development and
gave it a fearsome reputation for poverty, violence and
corruption. These problems were only made worse by
the discovery of huge oil reserves shortly after indepen-
dence. Competition for oil revenue, nepotism and un-
equal distribution of oil wealth destabilized the country to
such an extent that by the 1990s it was widely regarded
as one of the worlds most dysfunctional states.
Although Nigerias problems run deep and are far from
being solved, there has been a substantial improvement
in the countrys fortunes in recent years. The political
situation is more stable, major achievements have been
made in the fght against corruption, and the huge
wealth generated by the countrys vast oil reserves is
starting to flter down to the people who really need it.
The elimination of the countrys external debt via a
Paris Club agreement in 2005 and major repayment in
2006 also removed a drain on the economy, freeing up
over a billion dollars annually for poverty relief.
Marketing Environment in Nigeria
Today Nigeria is a country of immense promise. It is one
of the Next Eleven emerging economies and likely to
become Africas leading economy in the near future. In
November 2008 the GDP growth rate was over 8 per-
cent per year, slightly less than that of China but higher
than India. The huge population and the fact that the
GDP per capita more than doubled between 2006 and
2007 make Nigeria a very attractive, if somewhat daunt-
ing, proposition for marketers.
Oil and resources still account for the lions share of GDP,
but from a marketers perspective, other areas of the
economy are the most exciting. Nigeria has one of the
fastest growing telecommunications sectors in the world
and is a key market for several major emerging market
operators. Banking is another key sector. During the
global fnancial crisis in late 2008 Nigerian banks were
among the only fnancial institutions in the world to con-
tinue growing, and several are now regarded as blue chip
investments in an otherwise bleak global sector. FMCG/
CPG markets are also growing rapidly as consumers
have more to spend on day-to-day goods and services.
Although competition is increasing in all sectors, the
MA R K E T
F O C U S NIGERIA
Nigerians have a passion for communication, be it face-
to-face or via any of the increasing variety of media
channels. Although digital media is growing rapidly, the
key channels in Nigeria are still TV (over 120 channels),
print and radio (over 100 channels), which are able to
target local communities in far-fung areas in their own
languages. The country has a highly literate and the
second largest newspaper market in Africa after Egypt.
Due to the general lack of fxed line communications,
digital media has largely leapfrogged straight into mobile
solutions, either through phones or mobile broadband.
With mobile penetration increasing at an exponential
rate, mobile marketing is likely to be the fastest growing
media sector in the near future.
Top Media Outlets in Nigeria
Retailing in Nigeria
The retail environment in Nigeria is chaotic and confusing.
This is due to the distances involved, the lack of infra-
structure and organization, and the large population.
Nigeria has very few supermarkets, although the South
African chain FM Shoprite has established a toehold in
large and growing population means that there is still
so much free space in the market that returns on
investment are generally exceptional.
Unique Challenges for Marketers in Nigeria
Nigerias key challenges lie in its enormous size and
diversity. A thorough understanding of local cultures,
beliefs, customs, economics and practices is required to be
successful. Those that have followed globalized assump-
tions and methods have failed to make an impact.
Improvements in governance and legislation, commu-
nications, transport and other infrastructure have made
doing business much easier in Nigeria in recent years.
However, Nigeria is still only ranked one hundred and
eighteenth in the world on the World Banks Ease of
Doing Business Index (just ahead of Russia). Key ob-
stacles include Lagos one of the worlds largest and
most chaotic cities where most business is done; a lack
of reliable transport; power interruptions; high business
costs; cumbersome business procedures and a state
bureaucracy that is still acclimatizing to the concept of
foreign investment outside the oil industry.
Media Environment in Nigeria
MA R K E T
F O C U S NIGERIA
Penetration (%)
Users (%)
Mobile
Phone
30
45
TV
65
88

Radio
74
89
Internet
Access
5
23
Source: Nigeria LSM Study 2005 and Nigeria AMPS 2007
TV
AIT Lagos
AIT Port Harcourt
Silvebird Television
Lagos
AIT Kano
Newspaper
Complete Sports
Punch
The Sun
Guardian
Magazine
City People
Complete Sport
Tell Magazine
Enconium
Radio
Rhythm FM
Freedom Radio FM
Raypower FM
Star FM Lagos
131
Country Background
Nigeria has an estimated population of over 140 million,
the biggest in Africa. One in every fve Africans is a
Nigerian. It one of the most densely populated large
countries in the world.
The state of Nigeria is a relatively new, artifcial creation
of British colonialism, and the different regions have
relatively little in common. The arid north lies largely
within the Sahel region just south of the Sahara and is
predominantly Muslim. The south has a tropical climate
lying along the Gulf of Guinea and is mainly Christian.
Since unifcation in 1912 and independence in 1960 the
fragmented nature of Nigerian society has led to inter-
nal strife, political unrest and civil war. For many years
this severely hampered the countrys development and
gave it a fearsome reputation for poverty, violence and
corruption. These problems were only made worse by
the discovery of huge oil reserves shortly after indepen-
dence. Competition for oil revenue, nepotism and un-
equal distribution of oil wealth destabilized the country to
such an extent that by the 1990s it was widely regarded
as one of the worlds most dysfunctional states.
Although Nigerias problems run deep and are far from
being solved, there has been a substantial improvement
in the countrys fortunes in recent years. The political
situation is more stable, major achievements have been
made in the fght against corruption, and the huge
wealth generated by the countrys vast oil reserves is
starting to flter down to the people who really need it.
The elimination of the countrys external debt via a
Paris Club agreement in 2005 and major repayment in
2006 also removed a drain on the economy, freeing up
over a billion dollars annually for poverty relief.
Marketing Environment in Nigeria
Today Nigeria is a country of immense promise. It is one
of the Next Eleven emerging economies and likely to
become Africas leading economy in the near future. In
November 2008 the GDP growth rate was over 8 per-
cent per year, slightly less than that of China but higher
than India. The huge population and the fact that the
GDP per capita more than doubled between 2006 and
2007 make Nigeria a very attractive, if somewhat daunt-
ing, proposition for marketers.
Oil and resources still account for the lions share of GDP,
but from a marketers perspective, other areas of the
economy are the most exciting. Nigeria has one of the
fastest growing telecommunications sectors in the world
and is a key market for several major emerging market
operators. Banking is another key sector. During the
global fnancial crisis in late 2008 Nigerian banks were
among the only fnancial institutions in the world to con-
tinue growing, and several are now regarded as blue chip
investments in an otherwise bleak global sector. FMCG/
CPG markets are also growing rapidly as consumers
have more to spend on day-to-day goods and services.
Although competition is increasing in all sectors, the
MA R K E T
F O C U S NIGERIA
Nigerians have a passion for communication, be it face-
to-face or via any of the increasing variety of media
channels. Although digital media is growing rapidly, the
key channels in Nigeria are still TV (over 120 channels),
print and radio (over 100 channels), which are able to
target local communities in far-fung areas in their own
languages. The country has a highly literate and the
second largest newspaper market in Africa after Egypt.
Due to the general lack of fxed line communications,
digital media has largely leapfrogged straight into mobile
solutions, either through phones or mobile broadband.
With mobile penetration increasing at an exponential
rate, mobile marketing is likely to be the fastest growing
media sector in the near future.
Top Media Outlets in Nigeria
Retailing in Nigeria
The retail environment in Nigeria is chaotic and confusing.
This is due to the distances involved, the lack of infra-
structure and organization, and the large population.
Nigeria has very few supermarkets, although the South
African chain FM Shoprite has established a toehold in
large and growing population means that there is still
so much free space in the market that returns on
investment are generally exceptional.
Unique Challenges for Marketers in Nigeria
Nigerias key challenges lie in its enormous size and
diversity. A thorough understanding of local cultures,
beliefs, customs, economics and practices is required to be
successful. Those that have followed globalized assump-
tions and methods have failed to make an impact.
Improvements in governance and legislation, commu-
nications, transport and other infrastructure have made
doing business much easier in Nigeria in recent years.
However, Nigeria is still only ranked one hundred and
eighteenth in the world on the World Banks Ease of
Doing Business Index (just ahead of Russia). Key ob-
stacles include Lagos one of the worlds largest and
most chaotic cities where most business is done; a lack
of reliable transport; power interruptions; high business
costs; cumbersome business procedures and a state
bureaucracy that is still acclimatizing to the concept of
foreign investment outside the oil industry.
Media Environment in Nigeria
MA R K E T
F O C U S NIGERIA
Penetration (%)
Users (%)
Mobile
Phone
30
45
TV
65
88

Radio
74
89
Internet
Access
5
23
Source: Nigeria LSM Study 2005 and Nigeria AMPS 2007
TV
AIT Lagos
AIT Port Harcourt
Silvebird Television
Lagos
AIT Kano
Newspaper
Complete Sports
Punch
The Sun
Guardian
Magazine
City People
Complete Sport
Tell Magazine
Enconium
Radio
Rhythm FM
Freedom Radio FM
Raypower FM
Star FM Lagos
132
Lagos and a few independents exist elsewhere. The
majority of Nigerians shop at open markets for every-
thing from cars to building material, livestock to Internet
services.
Most open markets are laid out in a seemingly hap-
hazard pattern. Goods are placed on trestle tables, on
shelves in shipping containers or simply on the ground,
but there is usually a very formal structure that outsid-
ers cannot see. A vendors stall location is established
through a hierarchical system and does not change.
In such a chaotic environment, remaining in the same
place is one of the few ways a stall holder has of
encouraging loyalty among customers. The price of any
item is agreed by haggling. An astute or patient shop-
per can pay less than a quarter of the price compared
to another shopper. There are strict cultural rules to
haggling, which vary signifcantly between Northern and
Southern Nigeria.
Prices at Nigerian open markets are strongly infuenced
by availability. Supply chain management is a daunt-
ing task in Nigeria and many manufacturers are often
unable to get their goods to the markets. In these
situations, especially if the item is in strong demand,
vendors will infate prices. This can have a very negative
long-term impact on brand health and value percep-
tions. Open market traders tend to have a weak or
non-existent relationship with their suppliers. There
is generally no way for manufacturers to be alerted
when stocks are running low, so certain goods can often
be unavailable for several weeks in remote areas. Nige-
ria places high import duties on goods in an attempt to
protect its struggling manufacturing sector. The result is
that goods are smuggled across the border, particularly
from countries like Benin where there are lower prices
and strong links with China. This can have a catastrophic
impact on sales of competing legitimate goods.
Tips for Advertisers
Nigeria is home to some of the wealthiest individuals in
the world, but most of the population struggle to make
ends meet. Although life is improving, the vast majority
of consumers still base their purchase decisions on
simple criteria like cost, value and functional perfor-
mance. Marketing initiatives that focus too heavily on the
emotional aspects of branding without being grounded
on solid functional foundations are usually unsuccessful.
Nigerians are exceptionally proud of their nationality,
and successful marketing taps into this. Advertising that
is regarded as too international in favor will often fall on
deaf ears. Strong Nigerian advertising refects Nigerian
society bold, colorful, brash and vibrant.
Key Millward Brown Metrics
MA R K E T
F O C U S NIGERIA
Country Average
Involvement
4.45
Persuasion
3.52
Enjoyment
4.56
Based on 52 mainly FMCG ads
January 2009
Fun Facts and Trivia
Over 500 languages are spoken in Nigeria this is twice as many as in the
whole of Europe. Around a dozen of these languages are spoken as a frst
language by at least a million people. Most Nigerians can speak three to
four languages.
There is archaeological evidence of advanced culture and civilization in pres-
ent day Nigeria dating back to at least 500 B.C. Nigeria featured some of
the largest and most prosperous cities in pre-colonial Africa until most were
sacked by the British in the late 19th century.
Lagos is Africas second largest city after Cairo, and one of the largest in the
world. Like New York, it is built on several islands with a mainland portion
interconnected by bridges.
Nollywood is the worlds third largest flm production center after
Hollywood and Bollywood, and is the fastest growing sector of the Nigerian
economy.
Despite the widespread perceptions of Nigerias poverty, health and social
problems, results of a 2003 global survey reported in New Scientist showed
that Nigerians are offcially the worlds happiest people.
The city of Kano in Northern Nigeria is over 1,000 years old and was a major
hub for trans-Saharan trade by camel caravan. The red, often engraved,
leather known as Morocco leather, which has been valued in Europe since
the Middle Ages, actually originated in Kano. Morocco was merely the
access point for European merchants to the Saharan caravan trade.
Top Tips
Nigerians are exceptionally friendly, outgoing people. Being warm and
friendly in return will improve your overall Nigerian experience immensely.
It is considered rude to pass someone without exchanging greetings, espe-
cially in the south.
Sharia law exists in some states in the north, although it is usually lenient
towards foreigners. Bear this in mind when travelling in the region.
Malaria is a major problem across Nigeria. Always consult a travel clinic
before visiting.
Have patience. In addition to the delays caused by infrastructure problems
Nigerians tend to be laid back in their actions and long-winded in their
conversations. Showing frustration will only make it worse.
Eating Out
Nigerian food is as varied as its cultures, but is usually spicy. The quality of
food varies substantially so always ask around to fnd the best place to eat.
If you have conservative tastes, stick to grilled fsh in the south, especially
tilapia, grilled meat (suya) in the north and Jollof rice delicious Nigerian
fried rice with a hint of chilli and tomato, and served with fried chicken. If
youre feeling more adventurous try either pepper soup an exception-
ally spicy soupy stew (especially goats head pepper soup which is
arguably Nigerias national dish) or Igbin which are giant Nigerian land
snails about the size of an apple and usually served with garlic, chilli and
pounded yam paste.
Nigeria has a large Lebanese and Chinese community and both these
countries cuisines are widely available and generally excellent.
To Buy
Nigeria produces some of the worlds best tie-dyed fabrics using natural
indigo and other dyes.
Bronze sculptures are heavy to take back with you, but will give your
home an antique African feel.
Northern Nigeria produces some of the worlds best engraved leather.
Small leather covered boxes or chests are intricately designed and make
very popular gifts.
Must Read/See
Things Fall Apart, written by one of Nigerias greatest writers, Chinua
Achebe, is the most widely read book of modern African literature. It
tells a story of the impact of colonialism from an African perspective, and
sheds light on the forces that created many of the problems that beset
Africa to this day.
Nigeria has an immensely rich and vibrant musical tradition that is
always changing and evolving. Afribeat, Juju, Fuji, highlife are just some of
the musical genres, but what all Nigerian music has in common is that it
is virtually impossible not to dance to it.
Nollywood movies often in two parts and at least four hours long
are a fascinating insight into the dynamics of Nigerian society. They
portray the endless struggle of ancient against modern and the power of
the worlds third largest flm industry.
Useful Links
www.oyibosonline.com the expats guide to Nigeria
www.timeout.com/lagos - TimeOut latest on Lagos
M A R K E T
F O C U S NIGERIA
133
Lagos and a few independents exist elsewhere. The
majority of Nigerians shop at open markets for every-
thing from cars to building material, livestock to Internet
services.
Most open markets are laid out in a seemingly hap-
hazard pattern. Goods are placed on trestle tables, on
shelves in shipping containers or simply on the ground,
but there is usually a very formal structure that outsid-
ers cannot see. A vendors stall location is established
through a hierarchical system and does not change.
In such a chaotic environment, remaining in the same
place is one of the few ways a stall holder has of
encouraging loyalty among customers. The price of any
item is agreed by haggling. An astute or patient shop-
per can pay less than a quarter of the price compared
to another shopper. There are strict cultural rules to
haggling, which vary signifcantly between Northern and
Southern Nigeria.
Prices at Nigerian open markets are strongly infuenced
by availability. Supply chain management is a daunt-
ing task in Nigeria and many manufacturers are often
unable to get their goods to the markets. In these
situations, especially if the item is in strong demand,
vendors will infate prices. This can have a very negative
long-term impact on brand health and value percep-
tions. Open market traders tend to have a weak or
non-existent relationship with their suppliers. There
is generally no way for manufacturers to be alerted
when stocks are running low, so certain goods can often
be unavailable for several weeks in remote areas. Nige-
ria places high import duties on goods in an attempt to
protect its struggling manufacturing sector. The result is
that goods are smuggled across the border, particularly
from countries like Benin where there are lower prices
and strong links with China. This can have a catastrophic
impact on sales of competing legitimate goods.
Tips for Advertisers
Nigeria is home to some of the wealthiest individuals in
the world, but most of the population struggle to make
ends meet. Although life is improving, the vast majority
of consumers still base their purchase decisions on
simple criteria like cost, value and functional perfor-
mance. Marketing initiatives that focus too heavily on the
emotional aspects of branding without being grounded
on solid functional foundations are usually unsuccessful.
Nigerians are exceptionally proud of their nationality,
and successful marketing taps into this. Advertising that
is regarded as too international in favor will often fall on
deaf ears. Strong Nigerian advertising refects Nigerian
society bold, colorful, brash and vibrant.
Key Millward Brown Metrics
MA R K E T
F O C U S NIGERIA
Country Average
Involvement
4.45
Persuasion
3.52
Enjoyment
4.56
Based on 52 mainly FMCG ads
January 2009
Fun Facts and Trivia
Over 500 languages are spoken in Nigeria this is twice as many as in the
whole of Europe. Around a dozen of these languages are spoken as a frst
language by at least a million people. Most Nigerians can speak three to
four languages.
There is archaeological evidence of advanced culture and civilization in pres-
ent day Nigeria dating back to at least 500 B.C. Nigeria featured some of
the largest and most prosperous cities in pre-colonial Africa until most were
sacked by the British in the late 19th century.
Lagos is Africas second largest city after Cairo, and one of the largest in the
world. Like New York, it is built on several islands with a mainland portion
interconnected by bridges.
Nollywood is the worlds third largest flm production center after
Hollywood and Bollywood, and is the fastest growing sector of the Nigerian
economy.
Despite the widespread perceptions of Nigerias poverty, health and social
problems, results of a 2003 global survey reported in New Scientist showed
that Nigerians are offcially the worlds happiest people.
The city of Kano in Northern Nigeria is over 1,000 years old and was a major
hub for trans-Saharan trade by camel caravan. The red, often engraved,
leather known as Morocco leather, which has been valued in Europe since
the Middle Ages, actually originated in Kano. Morocco was merely the
access point for European merchants to the Saharan caravan trade.
Top Tips
Nigerians are exceptionally friendly, outgoing people. Being warm and
friendly in return will improve your overall Nigerian experience immensely.
It is considered rude to pass someone without exchanging greetings, espe-
cially in the south.
Sharia law exists in some states in the north, although it is usually lenient
towards foreigners. Bear this in mind when travelling in the region.
Malaria is a major problem across Nigeria. Always consult a travel clinic
before visiting.
Have patience. In addition to the delays caused by infrastructure problems
Nigerians tend to be laid back in their actions and long-winded in their
conversations. Showing frustration will only make it worse.
Eating Out
Nigerian food is as varied as its cultures, but is usually spicy. The quality of
food varies substantially so always ask around to fnd the best place to eat.
If you have conservative tastes, stick to grilled fsh in the south, especially
tilapia, grilled meat (suya) in the north and Jollof rice delicious Nigerian
fried rice with a hint of chilli and tomato, and served with fried chicken. If
youre feeling more adventurous try either pepper soup an exception-
ally spicy soupy stew (especially goats head pepper soup which is
arguably Nigerias national dish) or Igbin which are giant Nigerian land
snails about the size of an apple and usually served with garlic, chilli and
pounded yam paste.
Nigeria has a large Lebanese and Chinese community and both these
countries cuisines are widely available and generally excellent.
To Buy
Nigeria produces some of the worlds best tie-dyed fabrics using natural
indigo and other dyes.
Bronze sculptures are heavy to take back with you, but will give your
home an antique African feel.
Northern Nigeria produces some of the worlds best engraved leather.
Small leather covered boxes or chests are intricately designed and make
very popular gifts.
Must Read/See
Things Fall Apart, written by one of Nigerias greatest writers, Chinua
Achebe, is the most widely read book of modern African literature. It
tells a story of the impact of colonialism from an African perspective, and
sheds light on the forces that created many of the problems that beset
Africa to this day.
Nigeria has an immensely rich and vibrant musical tradition that is
always changing and evolving. Afribeat, Juju, Fuji, highlife are just some of
the musical genres, but what all Nigerian music has in common is that it
is virtually impossible not to dance to it.
Nollywood movies often in two parts and at least four hours long
are a fascinating insight into the dynamics of Nigerian society. They
portray the endless struggle of ancient against modern and the power of
the worlds third largest flm industry.
Useful Links
www.oyibosonline.com the expats guide to Nigeria
www.timeout.com/lagos - TimeOut latest on Lagos
M A R K E T
F O C U S NIGERIA
134
KENYA
Country Background
Kenya is located in Eastern Africa, bordering the
Indian Ocean, between Somalia and Tanzania.
The country has a population of 38 million, which is
made up of over 70 different tribal groups.
The Kenyan Highlands are one of the most success-
ful agricultural production regions in Africa.
The national language, Kiswahili, is spoken by the
majority of Kenyans. English is the offcial language
and is mostly spoken in the cities.
Politically, the country has experienced less turbu-
lent times compared to many African countries.
But the disputed general election of 2007 was
marred by charges of vote rigging from opposition
leaders and unleashed two months of violence.
During this time, as many as 1,500 people died and
300,000 people were left homeless. Although the
country is now relatively stable, the economy is still
recovering.
Kenya is one of Africas most developed economies
and has a tradition of private-sector entrepreneurial
activity. However, lax property rights and extensive
corruption suppress economic freedom, and non-
transparent trade regulations and customs
ineffciencies damage trade. High level corruption
and scandal result in a colossal loss of taxpayer
money and reduce investor and donor confdence.
This coupled with frequent drought and famine have
hampered Kenyas economic take off.
There has been some reduction in poverty, but the
majority of Kenyans live below the poverty line, and the
gap between the rich and the poor is one of the high-
est in the world.
Marketing Environment in Kenya
Kenya is the East African hub for trade and fnance.
The port of Mombasa serves as the main link for land-
locked East and Central African countries.
Energy and food prices are climbing in Kenya, helping
to drive infation to its highest level since 1994. Volume
sales are reported to be down for many brands.
Like everywhere in Africa, telecommunications is
emerging as the fastest growing sector of the economy.
Mobile penetration is 35 percent and growing. Two
additional mobile operators have entered the market in
the past six months.
MA R K E T
F O C U S KENYA
Top 10 Lifestyle Statements in Kenya
Unique Challenges for Marketers in Kenya
Poor infrastructure has been cited as one of the key
obstacles to marketing products and services in Kenya.
Its estimated that Kenya loses almost U.S. $2 million
every day on traffc congestion alone.
Corruption, red-tape, and the lack of a conducive legal
framework can make doing business in Kenya diffcult.
The number of licenses needed to start a business was
only recently reduced from over 300 to fewer than 20.
With only 750 banking outlets in Kenya it can be
diffcult for people to access a bank, especially in
rural areas. M-PESA now offer a service called Mobile
Cash, which allows people to save money. Deposits
can be made at over 5,000 M-PESA outlets across
the country and the money can be used for various
different purposes in a fast, reliable and cost-effective
way. Launched in March 2007, M-PESA now has over
fve million registered users. In less than two years, the
service has transferred almost U.S. $789 million.
According to the International Telecoms Union,
Internet penetration has grown 7 percent since 2000,
increasing the number with access from 200,000
to 3 million. Since many people do not have a fxed
phone line, computer, or electricity, most people
access the Internet and e-mail in Internet cafes,
which are mainly located in major towns. The informa-
tion and communications market is likely to change
drastically over the next year as a project to lay
under-sea fber optic cables and join Kenya to the rest
of the world is completed.
Banking has expanded signifcantly in the past two
years. Multinationals are facing strong competition
from local banks. Local subsidiaries, such as AIG,
have felt a minimal impact from the global economic
crisis.
Source: Kenya TGI 2007, Consumer Insight Kenya 2007
Statement
% people who
defnitely agree
If at frst you do not succeed you must keep
trying
54
My faith is really important to me 52
I think its important to have a lasting relation-
ship with one partner
52
Smoking should be banned in public places 51
It is important to continue learning new things
throughout your life
51
I would like to set up my own business one
day
49
It is important to be well informed about
things
48
I think we should strive for equality for all 47
I like to have a circle of close friends who sup-
port me in hard times
45
You should seize opportunities in life when
they arise
45
MA R K E T
F O C U S
135
KENYA
Country Background
Kenya is located in Eastern Africa, bordering the
Indian Ocean, between Somalia and Tanzania.
The country has a population of 38 million, which is
made up of over 70 different tribal groups.
The Kenyan Highlands are one of the most success-
ful agricultural production regions in Africa.
The national language, Kiswahili, is spoken by the
majority of Kenyans. English is the offcial language
and is mostly spoken in the cities.
Politically, the country has experienced less turbu-
lent times compared to many African countries.
But the disputed general election of 2007 was
marred by charges of vote rigging from opposition
leaders and unleashed two months of violence.
During this time, as many as 1,500 people died and
300,000 people were left homeless. Although the
country is now relatively stable, the economy is still
recovering.
Kenya is one of Africas most developed economies
and has a tradition of private-sector entrepreneurial
activity. However, lax property rights and extensive
corruption suppress economic freedom, and non-
transparent trade regulations and customs
ineffciencies damage trade. High level corruption
and scandal result in a colossal loss of taxpayer
money and reduce investor and donor confdence.
This coupled with frequent drought and famine have
hampered Kenyas economic take off.
There has been some reduction in poverty, but the
majority of Kenyans live below the poverty line, and the
gap between the rich and the poor is one of the high-
est in the world.
Marketing Environment in Kenya
Kenya is the East African hub for trade and fnance.
The port of Mombasa serves as the main link for land-
locked East and Central African countries.
Energy and food prices are climbing in Kenya, helping
to drive infation to its highest level since 1994. Volume
sales are reported to be down for many brands.
Like everywhere in Africa, telecommunications is
emerging as the fastest growing sector of the economy.
Mobile penetration is 35 percent and growing. Two
additional mobile operators have entered the market in
the past six months.
MA R K E T
F O C U S KENYA
Top 10 Lifestyle Statements in Kenya
Unique Challenges for Marketers in Kenya
Poor infrastructure has been cited as one of the key
obstacles to marketing products and services in Kenya.
Its estimated that Kenya loses almost U.S. $2 million
every day on traffc congestion alone.
Corruption, red-tape, and the lack of a conducive legal
framework can make doing business in Kenya diffcult.
The number of licenses needed to start a business was
only recently reduced from over 300 to fewer than 20.
With only 750 banking outlets in Kenya it can be
diffcult for people to access a bank, especially in
rural areas. M-PESA now offer a service called Mobile
Cash, which allows people to save money. Deposits
can be made at over 5,000 M-PESA outlets across
the country and the money can be used for various
different purposes in a fast, reliable and cost-effective
way. Launched in March 2007, M-PESA now has over
fve million registered users. In less than two years, the
service has transferred almost U.S. $789 million.
According to the International Telecoms Union,
Internet penetration has grown 7 percent since 2000,
increasing the number with access from 200,000
to 3 million. Since many people do not have a fxed
phone line, computer, or electricity, most people
access the Internet and e-mail in Internet cafes,
which are mainly located in major towns. The informa-
tion and communications market is likely to change
drastically over the next year as a project to lay
under-sea fber optic cables and join Kenya to the rest
of the world is completed.
Banking has expanded signifcantly in the past two
years. Multinationals are facing strong competition
from local banks. Local subsidiaries, such as AIG,
have felt a minimal impact from the global economic
crisis.
Source: Kenya TGI 2007, Consumer Insight Kenya 2007
Statement
% people who
defnitely agree
If at frst you do not succeed you must keep
trying
54
My faith is really important to me 52
I think its important to have a lasting relation-
ship with one partner
52
Smoking should be banned in public places 51
It is important to continue learning new things
throughout your life
51
I would like to set up my own business one
day
49
It is important to be well informed about
things
48
I think we should strive for equality for all 47
I like to have a circle of close friends who sup-
port me in hard times
45
You should seize opportunities in life when
they arise
45
MA R K E T
F O C U S
136
With over 70 tribes, an understanding of the local
cultures, beliefs and customs is essential for success.
These are also regional differences that need to be
taken in account, so a one-size-fts-all approach will
not always work. Nairobi the key commercial center
usually serves as the launch pad for new products
and services, however Mombasa and Kisumu are also
important regional hubs.
Media Environments in Kenya
Kenyans have a passion for communication be it face-
to-face or via any of the increasing variety of media
channels. Although new media is growing rapidly, TV,
radio and newspaper still remain the key channels.
Recently, the number of radio stations broadcasting
in local dialects has grown to over 40 and they now
command 50 percent of all radio listeners. Though
small at the moment, there has been signifcant growth
in paid-for TV in the past two years. This was largely
due to GTV ending the long monopoly held by DSTV.
Set-up costs and monthly charges have fallen and both
companies are aggressively marketing their services.
There are around 400,000600,000 land line tele-
phones in Kenya, which is less than 5 percent penetration.
And they rarely work. Therefore, fxed line internet/data
solutions never really developed. As a result almost all new
internet/data connections are via handsets or mobile.
With the entry of mobile phones, internet access has
exponentially increased and continues to grow.
Media Usage
Kenyas Top Advertisers
1. Safaricom
2. Zain
3. Coca-Cola
4. East Africa Beverages
5. Orange/Telecom
Top Media Outlets In Kenya
KENYA
Television Newspaper Magazine Web sites
NTV Nation Parents Yahoo
KTN Standard True Love Nation Audio
KBC East Africa Drum Facebook
Citizen TV
TV 56%
Paid for TV 4%
Newspaper 43%
Cinema 2%
Magazine 24%
Radio 91%
Internet 4%
Source: KARF - Kenya Advertising Research Foundation
Radio TV
News-
paper
Internet
Access
Mobile
Phone
Penetration
(%)
89 39 23 5 25
Users (%) 91 56 43 10 38
MA R K E T
F O C U S KENYA
February 2009
Fun Facts and Trivia
Kenya is named after Mount Kenya, the second highest mountain in
Africa.
The majority of Kenyans are Protestant, followed by Roman Catholic,
indigenous believers and Muslim.
Henry Rono, one of the best runners in the 20th century was Kenyan.
In 1978, over just 81 days, he broke four world records: the 3,000 meter
steeplechase, the 5,000 meter, the 3,000 meter, and the 10,000
meter.
Kenya gained independence from the United Kingdom in December
1963.
Mombasa, Kenyas main port, has the deepest natural harbor in Africa.
Some of the worlds oldest paleontological records were found in
Kenya.
The Great Rift Valley of Kenya was formed 20 million years ago, by the
splitting of the earths crust.
Kenya is a member of the Commonwealth.
Professor Maathai, the Kenyan environmentalist, was the frst African
woman to win a Nobel Peace Prize, in 2004.
Lake Turkana National Park and Mount Kenya National Park are World
Heritage Sites.
Kenya only has only two seasons the rainy season and the dry
season.
Top Tips
Kenya is the major safari destination in Africa. Kenya has many well-
managed nature reserves, where lions, rhinos, elephants, zebras,
antelopes and birds can be seen in the wild. One large nature reserve
lies just outside Nairobi and can be visited by taxi from the capital. Its
even possible to see zebras from Nairobi airport!
The Maasai Mara game reserve is the home of Great Migration
the largest mass movement of land animals on the planet. Hundreds
of thousands of wildebeest, gazelles, zebra and eland migrate over 500
kilometers from the Southern Serengeti in Tanzania to the northern
edge of the Masai Mara National Reserve every year. The Great Migra-
tion is USA Todays 7th New Wonder and a must see when visiting
Kenya. To make sure you dont miss this amazing spectacle visit
between August and October.

Kenya has beautiful white sand beaches along its 310 mile (500 kilome-
ter) coastline, with palm trees, blue seas and beautiful resorts.
.
To Buy
Maasai beaded belts, beaded sandals, wall hangings, earrings and
wedding necklaces.
MA R K E T
F O C U S
137
With over 70 tribes, an understanding of the local
cultures, beliefs and customs is essential for success.
These are also regional differences that need to be
taken in account, so a one-size-fts-all approach will
not always work. Nairobi the key commercial center
usually serves as the launch pad for new products
and services, however Mombasa and Kisumu are also
important regional hubs.
Media Environments in Kenya
Kenyans have a passion for communication be it face-
to-face or via any of the increasing variety of media
channels. Although new media is growing rapidly, TV,
radio and newspaper still remain the key channels.
Recently, the number of radio stations broadcasting
in local dialects has grown to over 40 and they now
command 50 percent of all radio listeners. Though
small at the moment, there has been signifcant growth
in paid-for TV in the past two years. This was largely
due to GTV ending the long monopoly held by DSTV.
Set-up costs and monthly charges have fallen and both
companies are aggressively marketing their services.
There are around 400,000600,000 land line tele-
phones in Kenya, which is less than 5 percent penetration.
And they rarely work. Therefore, fxed line internet/data
solutions never really developed. As a result almost all new
internet/data connections are via handsets or mobile.
With the entry of mobile phones, internet access has
exponentially increased and continues to grow.
Media Usage
Kenyas Top Advertisers
1. Safaricom
2. Zain
3. Coca-Cola
4. East Africa Beverages
5. Orange/Telecom
Top Media Outlets In Kenya
KENYA
Television Newspaper Magazine Web sites
NTV Nation Parents Yahoo
KTN Standard True Love Nation Audio
KBC East Africa Drum Facebook
Citizen TV
TV 56%
Paid for TV 4%
Newspaper 43%
Cinema 2%
Magazine 24%
Radio 91%
Internet 4%
Source: KARF - Kenya Advertising Research Foundation
Radio TV
News-
paper
Internet
Access
Mobile
Phone
Penetration
(%)
89 39 23 5 25
Users (%) 91 56 43 10 38
MA R K E T
F O C U S KENYA
February 2009
Fun Facts and Trivia
Kenya is named after Mount Kenya, the second highest mountain in
Africa.
The majority of Kenyans are Protestant, followed by Roman Catholic,
indigenous believers and Muslim.
Henry Rono, one of the best runners in the 20th century was Kenyan.
In 1978, over just 81 days, he broke four world records: the 3,000 meter
steeplechase, the 5,000 meter, the 3,000 meter, and the 10,000
meter.
Kenya gained independence from the United Kingdom in December
1963.
Mombasa, Kenyas main port, has the deepest natural harbor in Africa.
Some of the worlds oldest paleontological records were found in
Kenya.
The Great Rift Valley of Kenya was formed 20 million years ago, by the
splitting of the earths crust.
Kenya is a member of the Commonwealth.
Professor Maathai, the Kenyan environmentalist, was the frst African
woman to win a Nobel Peace Prize, in 2004.
Lake Turkana National Park and Mount Kenya National Park are World
Heritage Sites.
Kenya only has only two seasons the rainy season and the dry
season.
Top Tips
Kenya is the major safari destination in Africa. Kenya has many well-
managed nature reserves, where lions, rhinos, elephants, zebras,
antelopes and birds can be seen in the wild. One large nature reserve
lies just outside Nairobi and can be visited by taxi from the capital. Its
even possible to see zebras from Nairobi airport!
The Maasai Mara game reserve is the home of Great Migration
the largest mass movement of land animals on the planet. Hundreds
of thousands of wildebeest, gazelles, zebra and eland migrate over 500
kilometers from the Southern Serengeti in Tanzania to the northern
edge of the Masai Mara National Reserve every year. The Great Migra-
tion is USA Todays 7th New Wonder and a must see when visiting
Kenya. To make sure you dont miss this amazing spectacle visit
between August and October.

Kenya has beautiful white sand beaches along its 310 mile (500 kilome-
ter) coastline, with palm trees, blue seas and beautiful resorts.
.
To Buy
Maasai beaded belts, beaded sandals, wall hangings, earrings and
wedding necklaces.
MA R K E T
F O C U S
138
published
articles
139
Saturation, digital media, convergence and audience frag-
mentation are making it increasingly diffcult to reach the
consumer. In spite of increased ad spend in many countries,
ad visibility levels are failing to hold up. Using Argentina as a
case study, this article looks at how the rapid and progres-
sive growth of new information and communication tech-
nologies are affecting advertising and media consumption.
IntroductIon
In the past human advancement was limited by the small
amount of knowledge available. Technology is now devel-
oping at such a rapid pace that we have made huge leaps
forward in a fraction of the time it once took. This rapid
development has led to the emergence of new information
and communication technologies that are of great interest
to researchers.
By using historical information of media consumption from
MindShare and Millward Browns large database of weekly
data, we have been able to gain deeper insights into the
changes affecting advertising communication and media
consumption, and understand the implications all this has
from the consumers point of view by means of key adver-
tising consumption measures.
relevance of the project
The world is rapidly changing and this poses a real challenge
for researchers. It is essential to understand how media
work and their individual effects, and identify the key vari-
ables to measure advertising effectiveness in this context.
These changes are part of a global trend and the conditions
in Argentina have enabled them to spread quickly.
Methodology
The study combines primary and secondary data sources:
Ad spend
Continuous tracking database
Audience and media consumption data
Our research experience working jointly as a media
and market research agency
MIllward Browns dataBase:
Our database contains data from continuous consumer sur-
veys about brand awareness, health, image and equity. In
this study we have used data from 2003 onwards, which was
collected in the city and greater area of Buenos Aires. This
amounts to 93,300 total cases in 12 different categories.
Argentina How Media Clutter has
Impacted Advertising Effectiveness
By gaBrI el a cs, cl I ent servI ce dI rector and
jul I a gonz l e z t regl I a, cl I ent servI ce dI rector, I d MI l lward Brown
This article won frst prize at the Sociedad Argentina de Investigadores de Marketing y Opinin
(SAIMO) Congress.
140
The data includes advertising awareness, ad recognition
and diagnostics about those ads. This analysis was based
on 286 ads tested.
tgI dataBase
Target Group Index is a syndicated study developed by
Kantar Media Research and carried out by Ibope. It com-
bines media, consumption and lifestyle data, and enables
researchers to compare these variables. The data is col-
lected by means of a multistage probability sample. Data is
correlated over time, which enables us to analyze trends in
the short, mid and long term.
the MIndset dataBase
Mindset identifes all potential touchpoints between con-
sumers and brands.
It is an ad hoc study that uses a PDA for data collection
from a small number of people (180). Because information
is entered by the users themselves into the PDA through-
out the day, it is possible to establish their interactions with
different media.
This method is powerful for measuring non-traditional
media as it is diffcult to carry out this research using other
methods.
defInItIon of the varIaBles analyzed
total ad visibility: percentage of people who have seen,
read or heard something about the brand
ad visibility in different media: percentage of people who
have seen, read or heard something about the brand in a
particular medium
recognition: percentage of people that recognize the ad
from a prompt (a selection of images which do not show
the brand name)
Branding: percentage of people that recognize the brand
having seen the ad image prompt
Involvement: a diagnostic measure constructed from a set
of standardized active and passive words with which the ad
could be described and from which a fnal score of engage-
ment or involvement is derived.
ad diagnostics: a set of variables that account for the per-
formance of an ad based on both emotional and rational
aspects.
analysIng the InforMatIon
The technological development of the media has affected
everybodys lives in some way either be it economically,
socially or another way.
Technological advancements have facilitated new trends,
including:
Media convergence
Multi-exposure people now perform multiple tasks
while exposed to different media a trend more evi-
dent among younger consumers
141
The place of entertainment entertainment is no lon-
ger subject to leisure time. Technology means it can be
enjoyed anytime, anyplace
Consumer power consumers are increasingly creat-
ing their own content in the form of videos, images,
blogs and reviews
Before analyzing the impact of the multimedia boom in Ar-
gentina, it is worth determining the main characteristics of
the media market there.
argentInas MedIa envIronMent
Argentinas population is concentrated in a few urban cen-
ters positioned far from one another. This combined with the
countrys legal framework has led to the country achieving
the highest penetration level of cable TV in Latin America.
If the growth of cable TV was characteristic of Argentina
in the 90s, then the current decade will be known for the
rapid development and consolidation of the Internet.
In the last fve years media penetration has grown rapidly
within Argentina.
Contrary to expectations, during the 2002-2003 economic
crisis the Internet grew more quickly than any other media
because it provided an instant source of information in a
time of uncertainty. Visits to online newspapers increased
signifcantly in 2001 and 2002. It was also a cheaper way to
keep in touch than the telephone. The increase in number of
cyber cafes has enabled low and middle classes to gain ac-
cess to information, communications and entertainment at
a much lower price than any other media-related activity. In
this sense, cyber cafes democratized access to the Internet.
tv audIences grew durIng the argentInean crIsIs
While TV viewership fgures are trending down in Europe,
in Argentina they continue to rise. Argentina has the high-
est penetration levels of cable TV in Latin America, and
those levels have risen signifcantly since 2002. In an im-
poverished country, free entertainment is very popular. It is
important this is taken into account when measuring the
infuence this mass media has on the audiences media
consumption behavior.
advertIsIng In argentIna
More than 70 percent of the total media spend in Argentina
has been concentrated in terrestrial TV and newspapers.
Although secondary media have been growing in terms of
share, they still fail to reach half the levels reached by each
of the two main media.
Ad spend dropped from 1 percent of the GDP in 2001 to
0.51 percent in 2002. Since 2002 advertising spend has
trebled across all media.
what was the effect on consuMers?
During this period of growth in both marketing investment
and TV viewership, Argentinians were also exposed to an in-
creasing number of new media touchpoints and messages.
142
Today, it is estimated that the average Argentinian is exposed
to 2,500 commercial messages a week. Because of their
out-of-home lifestyles (50 percent of time is spent out-of-
home), they are continually barraged by marketing messag-
es from all media radio, packaging, magazines, the Inter-
net, billboards, packaging, store signs and ads on buses.
how does clutter affect Brand recall?
In the face of so many messages, how do people react? Is
there a limit to the number of messages they can cope with?
To answer this question we evaluated two sources of data:
how media has impacted ad impact over time and how this
has affected consumers. To do this we had to make some
methodological decisions. There is a strong relationship be-
tween overall ad visibility and TV visibility (more than 0.9),
meaning overall ad visibility or any branding communication
activity is strongly determined by its TV actions. Therefore, the
decision to work with just audio-visual saturation only is valid.
Chart 1 illustrates the monthly change in advertising satu-
ration. It highlights a clear seasonal pattern between the
beginning of each year and the peak season, which ex-
tends from May to December. And it shows that, over the
last three years, the number of messages received has in-
creased by around 55 percent.
The chart also reveals that when Argentinian consumers
were exposed to fewer ads per week, ad visibility increased.
We saw this across all media in TV, outdoor, radio, in
store, newspapers and magazines. And when the number
of messages they were exposed to increased, ad visibility
levels dropped.
0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
0
700
50
600
40
500
30
900 70
800
60
400
20
300
10
200
100
n total weekly ad ots n total ad visibility n tv ad awareness n vp ad awareness
n radio ad awareness n shop ad awareness n ad awareness newspapers and magazines
2003 2004 2005 2006
chart 1
143
clutter affects vIsIBIlIty
Chart 2 demonstrates that the relationship between TV ad
clutter and recognition (percentage of mentions that state
having seen the selection of ad images printed on a card).
It shows that the higher the exposure to TV messages, the
lower the chances of them being accurately recognized.
Message testIng
Credibility levels remain stable, but the levels of perceived
importance of the message tend to drop. This is in line with
the rise in ad saturation.
InvolveMent and Brand effects
Ad saturation does not seem to affect the enjoyment of
the ads. However it appears to have a negative affect on
relevance and involvement. Most importantly we discov-
ered that the higher the number of messages, the lower
the level of response toward the brand. There was sharp
reduction in both the rational (makes me want to use the
brand) and emotional dimensions (makes the brand look
more appealing). (See Chart 4, page 158).
1st sem 1st sem 1st sem 1st sem 2nd sem 2nd sem 2nd sem 2nd sem
n total weekly ad ots n ad recognition
n what the ad said seemed credible to me n what the ad said seemed important to me
2003
1 sem 2003 2003 2004 2004 2005 2005 2006 2006
2004 2005 2006
chart 2
chart 3
0
30
0
700
65
70
600
60
60
500
55
50
800
70
80
400
50
40
300
45
30
200
40
20
100
35
10
66
71
60
59
60
61
58
54
144
what have we learned so far?
Ad clutter in audio-visual media has a direct effect
on TV visibility results and to a lesser extent, on other
media results
Both the quality and quantity of brand recall is affected
given the context of overexposure, convergence and
viewership having a direct effect on ad effectiveness
diagnostic measurements, even though enjoyment is
not affected
As clutter increases, the relevance of the communi-
cated messages decreases. It is therefore important to
identify the real insights
Although prompted recall levels drop, effcient ads that
stand out from the rest which will perform above aver-
age will still be aired
In cluttered media environments, marketers need
greater ad investment and have to work harder to
achieve the same result from advertising.
challenges to researchers
Identifying the ad features that achieve the highest
level of visibility in a saturated media environment
As consumers now spend more than half of their
time outside of their homes, they are exposed to an
increasing number of stimuli. Research tools that
gather information from all touchpoints are there-
fore needed to evaluate the effect of communications
activities on consumers.
Analysis of how levels of attention vary depending
on the time of day reveals this is a key element for
all communication channels and may determine the
power that each channel has at different times
By understanding the purchase process of a product
and developing a strategy based on the most appropri-
ate channel and time will result in a better knowledge,
involvement and purchase engagement levels.
In cluttered media environments, marketers have to work
harder to achieve the same result from advertising. The
challenge is to make ads attract enough attention and
achieve suffcient involvement to achieve memorability.
1st sem 1st sem 1st sem 1st sem 2nd sem 2nd sem 2nd sem 2nd sem
n It makes the brand more appealing n It makes me more likely to use the brand
2003 2004 2005 2006
chart 4
30
55
50
45
40
35
145
One of the most fundamental principles of marketing is to
meet and possibly exceed customer needs. Being
customer-focused is a hallmark of marketing-driven
organizations. Yet some of todays most marketing-focused
companies, leading consumer goods manufacturers such
as Procter & Gamble (P&G) and Unilever for example, fail
that simple test. The customers of consumer goods com-
panies, mass retailers, have two key needs: Meet the needs
of their own customers (the end consumer) and differenti-
ate themselves from their competitors (the other retailers).
While consumer goods companies have been extremely
good at addressing the frst need through consumer mar-
keting, they have generally performed poorly at helping
retailers differentiate themselves.
The current consumer-focused marketing culture, pre-
dominant at leading consumer goods manufacturers, has
historical roots. In the late 19th century when companies
such as Procter & Gamble, Cadburys, Lever Brothers, and
The Hershey Company were founded they were leverag-
ing newly invented mass production technologies to create
large mass brands that could be marketed through a frag-
mented set of independent retailers to one consumer base,
assumed to have the same needs. Using mass advertising,
these new manufacturers were able to generate consumer
demand and loyalty for their products, thus making them
attractive to independent retailers by drawing consumers
into their stores.
Customer Focus
by Ove Haxt Hausen, vi ce presi dent, Mi l lward brOwn Opt i MOr
Cons ume r goods Compani e s ne e d to t hi nk about re tai l e rs as t he i r Custome rs ,
not me re ly as a t rade Channe l .
This article previously appeared in the July/August 2008 edition of Marketing Management,
the magazine for the American Marketing Association, www.marketingpower.com.
executive briefng
Todays mass retail landscape is very competitive. Fast growing chains compete fercely on price, and use increasingly sophisticated private label
strategies. Yet consumer goods companies have failed to meet their customers need for differentiation. This failure has resulted in increasing proft
and growth pressures on consumer goods manufacturers. To alleviate these pressures, manufacturers need to use new branding strategies to help
mass retailers differentiate themselves.
146
ing strategy of delivering large, global, leading brands to re-
tailers through consumer-focused marketing seems to fall
short of one of mass retailers critical needs: Offer products
that enable them to differentiate themselves from other re-
tailers. While consumer goods companies remain extremely
good at driving consumer demand an important beneft
for mass retailers they have typically paid little attention
to the need to help mass retailers differentiate themselves
from their competition. In the past, this made sense: Given
the small size of retailers when the consumer marketing
model was developed, there was no need to do that.
The failure of consumer goods companies to help todays
large retailers differentiate their offering has had two con-
This consumer-focused marketing strategy has essentially
remained in place within most large consumer goods com-
panies until today obviously with continuous updates,
such as the increased focus on consumer segmentation.
Leading companies such as Unilever and Kraft are focus-
ing on managing a reduced number of large leading global
brands that they market primarily to consumers. These
large brands allow consumer goods manufacturers to be
category leaders with retailers, and to generate economies
of scale both in the supply chain and in marketing. The
problem with this consumer-focused strategy is that the
mass retail landscape has changed drastically, especially
over the past 20 years.
Independent neighborhood shops and smaller local retail
chains have nearly vanished to be replaced by fast-
expanding, national mass retail chains. The most striking
example of retail chain growth is Wal-Mart, with revenues
that have sustained an average annual growth rate of 18%
since 1987 growing from $12 billion to $345 billion today.
Retailers have grown so large that the bargaining power has
shifted largely in their favor. As an example, we estimate
(based on publicly available data) that Wal-Mart currently
accounts for about $9 billion or 28% of P&Gs U.S. rev-
enues whereas P&Gs $9 billion only account for about
4% of Wal-Marts cost of goods sold (see Exhibit 1). Put in
simple terms: In the United States, Wal-Mart is seven times
more important to P&G than P&G is to Wal-Mart.
In this context, it seems particularly crucial for consumer
goods companies to serve their powerful customers well.
However, consumer goods manufacturers current prevail-
2006 ($b)
wal-Mart
206
9
197
procter & Gamble
wal-Mart
Other customers
procter &
Gamble
Other
suppliers
32
9
23
Notes: Estimates based on P&G and Wal-Mart 10Ks for years ending in June and January
2007, respectively
Sources: SEC, Millward Brown Optimor analysis and estimates
exHibit 1
revenue breakdown
147
sequences: strong growth of private labels and increasing
competition among retailers on price as illustrated by
Wal-Marts old tag line Everyday low price, now being
changed to a barely more subdued Save money, live bet-
ter. In the United States for instance, private labels
currently account for about 19% of retail sales in the gro-
cery channel, up from 14% in 1997, according to ACNielsen.
In Europe, private labels are generally even stronger than in
the United States, with the United Kingdom leading the
pack. In the United Kingdom, private labels account for
43% of retail sales according to ACNielsen. In a 2005 glob-
al private label study, AC Nielsen also found evidence of
correlation between retailer consolidation and share of pri-
vate label: The more consolidated retailers are, the higher
the share of private label tends to be. Increasing competi-
tion among retailers on price and the growth of private
labels illustrate retailers efforts to gain an advantage over
their competitors in an increasingly competitive market.
And both competition on price and private label growth put
pressure on consumer goods companies: Retailers use
their bargaining power to pass on the lower prices to their
suppliers, and their private labels challenge the market
share of manufacturers brands.
The evolution of private labels provides interesting insight
into mass retailers efforts to compete with each other.
Traditionally, store brands have predominantly been lower-
priced generic products. They have enabled retailers to
capitalize on their retail brands ability to attract shoppers,
thereby capturing some of consumer goods manufactur-
ers market share and profts. Occasionally, this discount
strategy has taken on a more aggressive character. Retailers
have developed store label products imitating manufacturer
branded products and packaging. These imitation products
are found on the store shelves next to the manufacturer
brands, but priced at a signifcant discount. Many drugstore
chains still use this strategy in personal care categories.
The newer trend is distinct, higher-end store labelscom-
parable in product range, quality, and price to manufac-
turers brands. Unlike manufacturer brands, these private
labels provide differentiation to the retailer because they
cant be found anywhere else. Targets Archer Farms brand
is one example of these brands. Archer Farms uses all the
tricks of manufacturers marketing play book: high qual-
ity, wide product range; more innovation to refresh the
brand; and most importantly, consumer advertising through
TV and other media channels. This new breed of private
labels is a serious threat to consumer goods manufacturers
because they challenge one of the last advantages manu-
facturer brands have left: Consumer loyalty built through
consumer-focused marketing.
Faced with these increasing threats from their customers,
how can consumer goods manufacturers use retailer dif-
ferentiation to respond? By offering retailers something
that is exclusive and therefore differentiated, consumer
goods companies can prevent retailers from further devel-
oping their own private labels. Offering different products to
different retailers can also provide manufacturers with more
pricing fexibility. Exhibit 2 illustrates this pricing effect, look-
ing at a simplifed example of a manufacturer selling to four
retailers: R1, R2, R3, and R4. On the left graph, the same
product is offered to all four customers. The biggest of the
148
four, R4 (which also happens to be an every day low price
mass discounter), uses its bargaining power to dictate its
price to the manufacturer. The three other retailers have to
follow suit because they otherwise are not able to remain
competitive with R4 on their retail pricing. The result is one
low price across all customers, with the light green area
showing the manufacturers revenue. On the right graph, the
manufacturer has decided to offer different product varieties
to each of its four customers. While R4 still uses its bargain-
ing power to negotiate a low price for itself, it no longer has
the same infuence over what the manufacturer can charge
to its other customers because the other retailers are
getting different products. In the right example, the manu-
facturer helps its customers differentiate themselves while
simultaneously achieving higher revenues through better
pricing (as shown by the dark green areas on the graph).
So practically speaking, how does retailer differentiation
work? A retailer-differentiated strategy can be as simple as
providing different pack sizes to different retailers. And it
can be as complex as launching exclusive products, sub- or
co-brands, or even new exclusive brands with key retail cus-
tomers. Specifc favors or other new product innovations
could be exclusive to key retailers, co-branded exclusive
lines could be created on the model of what has long been
common practice for higher-end mens apparel in depart-
ment stores with the made exclusively for label. In some
cases, the creation of new brands might even be appropri-
ate for offering a new price point and fresh differentiation
to a key retailer. The point is that brand architecture can be
a powerful way to address not only todays complex con-
sumer segments, but also todays retail landscape.
no retailer differentiation: r4, a large edlp* retailer, used its
bargaining power to push down the price across retailers
retailer differentiation: r4s bargaining power no longer impacts
pricing to other customers because they are offered different
product variations
* Every Day Low Price Sources: Millward Brown Optimor analysis
r1 r1 r2 r2 r3 r3 r4 r4 volume volume
price price
product
demand curve
product
demand curve
exHibit 2
pricing impact of retailer differentiatiion simplifed
additional revenue
captured through
retailer differentiation
149
Of course, a retailer differentiation strategy will introduce
new complexity into consumer goods companies market-
ing and supply chain functions. For one thing, trade market-
ing will have to become a less tactical function, and include
more strategic considerations (such as brand architecture).
This could mean that the trade and consumer marketing
functions will have to operate in a much more integrated
fashion to develop brand strategies that work both from
the consumer perspective and the retailer perspective.
Also, new customer exclusive offerings will increase sup-
ply chain complexity, and potentially marketing costs. The
good news is that todays manufacturing and supply chain
technologies have signifcantly lowered the cost of customi-
zation. In addition, pricing remains a more powerful proft
driver than costs. Assuming a consumer goods company
has a 20% proft margin, a 5% increase in revenues due
to better pricing from differentiated products will increase
profts by 25%, whereas a 5% increase in operating costs
due to the additional complexity associated with retailer
differentiation will only lower profts by 20%. This would
leave the company with a net proft improvement of 5%.
There is strong evidence that retailer differentiation strat-
egies work. One of our clients, from a leading consumer
goods company, recently told us that he was able to allevi-
ate the pressures of a price war among his key customers
in a South American market by offering different pack sizes
to each of these retailers. Providing different pack sizes to
different retailers seems to be a well-established practice
in many consumer goods categories. Different pack sizes
are often a request from major retailers, to allow them to
differentiate and avoid price pressures. If differentiating just
by pack size can impact pricing, one can imagine what a
more sophisticated retailer differentiation strategy could do.
One company that has long been known for its sophisti-
cated brand architecture strategy is Polo Ralph Lauren. The
companys brand architecture is organized around multiple
dimensions that include product categories (apparel, home
products, fragrance and accessories), consumers (kids,
younger adults, and male and female adults), and price
points with implications to retail channels. In womens
apparel for instance, Blue Label is sold only through Ralph
Lauren stores in the United States, whereas the low-priced
Lauren is sold only through department stores and online
at polo.com. The Womens Ralph Lauren Collection and the
Womens Black Label are sold primarily at Ralph Lauren
stores, but also at select department stores and fne spe-
cialty stores, according to the companys documents. Most
recently, Polo Ralph Lauren has been pushing retailer dif-
ferentiation one step further with the creation of its Global
Brand Concepts group. The group is helping retailers cre-
ate exclusive brands in other words, more sophisticated
private labels. In the spring of this year, Polo Ralph Lauren
launched the new American Living brand exclusively at JC-
Penny. American Living is a lifestyle brand with a full range
of mens, womens and childrens apparel and accessories
as well as home products.
Another example of manufacturers helping retailers
differentiate themselves is Hasbro. The company is licensing
its Playskool brand exclusively to CVS for use in baby care
150
products. CVS and Hasbro worked together to develop an
exclusive Playskool line of baby care products to be sold in
CVS stores including diapers, wipes, bottles, bottlebrush-
es, and other feeding accessories. The line was launched
with great success in the fall of 2006, and was recognized
by License magazine as the best direct-to-retail license
of the year. These examples illustrate some of the many
ways in which brand architecture and brand licensing can
be used by manufacturers to achieve different price points
and more differentiation with retail customers thereby
limiting the pricing power of any one customer, while be-
coming more relevant to them. Retailers themselves tell us
that they need to use branding for differentiation. Targets
2006 annual report states: Delivering merchandise as-
sortment that is distinctive, exclusive and unexpected in its
design and value is a key focus in our effort to connect
with our guests and differentiate Target from our competi-
tors. We continue to introduce specialty brands, expand our
premium owned and licensed brands, and offer a carefully
edited assortment of trusted national brands. Perhaps if
the assortment of trusted national brands had an exclu-
sive element to it, it would be less edited.
So does this mean that consumer goods manufacturers
have to let go of their consumer focused marketing, and
their strategy of offering leading, global brands across mass
retail channels? Of course not. Consumer marketing re-
mains a powerful way of generating demand, and leading
global brands build strong loyalty with consumers. However,
we believe consumer goods manufacturers could beneft
from providing their increasingly powerful mass retail cus-
tomers with new means of differentiation. Retailer differ-
entiation can help manufacturers resolve two of their most
pressing issues: price pressures from big retailers, and the
growth of private labels. It also benefts their customers.
Such a win-win proposition seems hard to ignore.
151
According to data from the June/July Millward Brown Omni-
bus, 69 percent of the Spanish population believes the coun-
try is in the middle of a deep economic crisis (Figure 1).
Almost half of respondents expect the crisis to have a strong
or very strong impact on their household (Figure 2).
Overall, the Millward Brown Consumer Confdence Index
(CCI-MB) suggests that the Spanish economy is entering a
phase where reduced consumer confdence may lead to a
crisis caused by weak internal demand, similar to Japan in
the mid-90s.
Stuck in the Crisis A Japanese-Style
Crisis in the Making?
By Antoni o i medi o, new Busi ness development di rector, mi l lwArd Brown spAi n And
mi guel ngel mArt n, Account mAnAger And HeAd of omni Bus, mi l lwArd Brown spAi n
A circumstantial
problem
22%
A deep crisis
69%
dK/dA
9%
Source: Consumer Confdence Index Millward Brown (CCI-MB). Millward Brown Omnibus
Question: do you think the fnancial situation is . . . ?
Question: what impact do you think this crisis will have on the
economic situation of your household . . . ?
0%
very
strong
medium strong little no
impact
dK/dA
40%
30%
20%
10%
n June 2008 n July 2008
Source: Consumer Confdence Index Millward Brown (CCI-MB). Millward Brown Omnibus
figure 1
perception of the economic situation
This article previously appeared in the September 2008 edition of Investigacin y Marketing.
figure 2
expected impact of the economic crisis on households
152
regardless: a recessional mindset has set in. This has driven
the internal demand to a standstill (Figure 3).
Over a quarter of the low and low-middle class families say
their current situation and expectations are poor or very
poor. This provides some insight into what public opinion
already suggests: the biggest risks consumers perceive are
job security and being unable to keep up with mortgage re-
payments. Faced with the collapse of a decade long Span-
The use of consumer confdence indicators as a tool for
economic analysis has become a standard statistical tool in
developed countries over the past 40 years. Confdence
indicators seek to gauge consumers attitudes by exploring
their opinions and medium-term expectations regarding
the development of the national economy and their house-
holds. Confdence indicators are a tool used in economic
forecasts at a national level, and can also be used as indica-
tors in specifc industries.
The latest drop recorded by Consumer Confdence Indexes
was seen as unquestionable proof of the economic slow-
down. In Spain, after the collapse of the US subprime mort-
gage market in August 2007, the index showed a sharp,
sudden fall in 2008. Hard objective indicators that had
shown a downward trend in previous months also plum-
meted: increased infation in food and energy prices, higher
mortgage interest rates, harder requirements for loans
imposed by fnancial institutions (which prevented families
from purchasing goods that required any investment) and,
worst of all given its psychological impact, the loss of value
of real estate, and the return of the threat of unemploy-
ment. The indicators show that, despite the economy not
dropping as far as the low point of the last recession (1992-
1994), the perception of the situation and the economic
expectations of Spanish households tend to be medium or
mildly negative. Clearly the recession is not only psycho-
logical, but this emotional state of mind of consumers has
played a signifcant part in helping fuel the crisis. Although
Spanish consumers have not yet felt the effects of the re-
cession on a personal level, they have tightened their belts
1. thinking about the economic situation of the country,
how would you describe it . . . ?
2. And thinking now about the economic situation of your
own household, how would you describe it . . . ?
3. thinking of the things you need to buy for your home,
do you think this is a good moment or a bad moment
to make big purchases for your home?
5-point scale: very good. good. medium. poor. very poor.
results: % positive responses - % negative responses.
1. economic
situation of
the country
2. economic
situation of
your household
3. moment to make
big purchases
for your home
15%
0%
30%
-15%
-45%
-30%
-60%
Source: Consumer Confdence Index Millward Brown (CCI-MB).
Millward Brown Omnibus. July 2008
figure 3
perception of the economic situation of the country
and the households
153
and to a lesser extent, big electrical appliances, restaurants,
and insurance (Figure 5).
Lack of trust is also affecting, albeit to a lesser extent, the
purchase of small home appliances, clothes, accessories
and other similar items. Large losses of savings in invest-
ments hit by the downturn and concerns about unemploy-
ment indicate that the Spanish economy is on the brink
ish property boom and the euro at an all-time low, Spanish
consumer confdence has plunged. In response, consumers
have reined in their spending, which has weakened domes-
tic demand and further heightened the economic crisis.
The Millward Brown Consumer Confdence Index (CCI-MB) is
similar to other CCIs that are focused on consumer opinions
and expectations on the Spanish economy. However, unlike
other similar tools, the Millward Brown Consumer Confdence
Index (CCI-MB) offers an advanced indicator for sectors that
represent a large expenditure for families, and are therefore
very sensitive to changing conditions. This type of indicator
is not only useful at the national level, but it also helps spot
major demand-driven tendencies in specifc industries.
A striking characteristic of the current crisis is that negative
opinion about the economic situation is also present among
the upper-middle class, who remained relatively unscathed
in the last crisis in the early 90s. Most negative of all are
expectations for six months ahead, which although are bet-
ter than now, are also pessimistic (Figure 4).
Consumers are likely to adopt a very cautious approach to
spending over the next few months. Figure 4 shows that the
next six months is seen as a very bad time for big purchases.
In the medium term, the outlook is characterized by weak
internal demand and plummeting sales of big-ticket home
items, which will have a negative impact on the industries
associated with these types of goods and services. The data
suggests a marked decline in the purchase of homes and
apartments, long-stay tourism, home renovation, furniture,
1. what do you think will be the economic situation of
the country six months from now compared to the
current situation . . . ?
2. And thinking about your family, what do you think
will be the economic situation of your family six
months from now?
3. And six months from now, do you think that the
economic situation of your family will be better or
worse positioned to make big purchases?
5-point scale: very good. good. medium. poor. very poor.
results: % positive responses - % negative responses.
1. economic
situation of
the country
2. economic
situation of
your household
3. moment to make
big purchases
for your home
0%
-15%
-45%
-30%
-60%
Source: Consumer Confdence Index Millward Brown (CCI-MB).
Millward Brown Omnibus. July 2008
figure 4
expectations of the economic situation of the country
and households at six months
154
of a slowdown in demand driven by a lack of consumer
confdence. The situation bears a remarkable resemblance
to the Japanese recession of the mid 90s.
During recession, brands must strengthen their image in
order to generate trust and credibility among consumers.
Communication becomes more important than ever be-
fore; it plays a key role in conveying the value of the brand,
and in differentiating the brand from its competitors.
Brand choice is a complicated, long-term process. Con-
sumers are more cautious compared to a few months ago.
Only the brands that are capable of staying in consumers
minds, and that possess strong, unique values will have the
competitive advantage, not only in the current times but
also in the medium and long term.
Many businesses make the common mistake of reducing
their marketing budget, driven by short-term consider-
ations, rather than by a long-term brand strategy. These
cuts can damage the brand and leave it in a less competi-
tive position when the economy recovers. Now is the right
time to talk to consumers to boost trust and credibility, as
well as to enhance the brand value. It is therefore essential
to strengthen communication with consumers to ensure
they choose your brand, rather than a competitors.
Question: And specifcally, do you think this is a . . . moment . . . to buy . . . ? (includes only some industries included in the research)
5-point scale: very good. good. medium. poor. very poor.
results: % positive responses - % negative responses.
Source: Consumer Confdence Index Millward Brown (CCI-MB). Millward Brown Omnibus. July 2008
-62%
-22%
-32%
-2%
-12%
-42%
-52%
figure 5
perception of the moment to purchase different types of goods and services
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155
Faced with a global recession, many marketers will be try-
ing to reduce marketing spend. For a global brand, it can
be tempting to maximize economies of scale by standard-
izing the execution of marketing programs across countries.
Both approaches will help shore up the brands bottom line
in the short term, but what is the longer term impact? The
available evidence suggests that both actions may be detri-
mental to brand strength and that a more productive long-
term strategy during tough times is to focus on maintaining
consumer relationships with a localized approach.
Since the Great Depression of the 1930s, case studies and
meta-analyses have confrmed that it is the brands that in-
crease marketing spend during a recession that rebound
most rapidly, improving both market share and proft mar-
gin in the long term. A recession is an opportunity for a
fnancially solvent brand to increase its presence and re-
assure customers of its benefts, while some brands may
even be able to capitalize on hard times by reframing their
established benefts into a value message. Consider these
examples:
Chevrolet managed to overtake Ford in the United
States during the Great Depression. In the 1920s, Ford
was outselling Chevrolet by at least 10-to-1, but dur-
ing the Great Depression, Chevrolet increased support
behind print ads that proclaimed the brands fuel ef-
fciency with statements like Youll say I cant believe it,
but the gas tank proves its so. Before the depression
was over, Chevy was outselling Ford.
Nestl maintained a consistent level of spend behind
Nescaf Gold Blend in the United Kingdom during the
recession of 1991-1992. By continuing to support its
hugely popular soap-opera-style campaign, while oth-
er brands were cutting back, Nestl was able to keep
sales growing, sustain a premium price, and increase
both volume and value market share.
Apple, which increased its ad spending from 2007 to
2008, announced on January 21st of this year that ro-
bust sales of iPods and laptops had allowed it to shrug
off one of the worst holiday seasons sales in years. As
a company with a well-established record of innova-
tion, Apple is able to take advantage of the principle
How Should Global Brands
Communicate in Recessionary Times?
by Ni gel Hol l i s, cHi ef global aNalyst, Mi l lward browN
First published on warc.com 2009, copyright and database rights owned by WARC.
156
that advertising has the most immediate impact when
it is delivering new news. The January release also re-
ported that the companys quarterly proft had jumped
to $1.61 billion, or $1.78 a share, which was more than
25 percent higher than analyst expectations. (It is of
note that Apple benefted from one of the traditional
advantages of a global brand: Declining sales of the
iPod in the U.S. were more than offset by increased
sales elsewhere.)
These examples help to illustrate the conclusions reported
by Keith Roberts of PIMS/Malik Management, who presented
his analysis of the Proft Impact of Marketing Strategy (PIMS)
database at a March 2008 IPA Conference. The PIMS data-
base includes the real-world business performance of more
than 3,000 businesses, most of which are located in the
United States, Canada and Western Europe. Roberts analy-
sis, which focused on the time period from 2003 to 2007,
confrmed the fndings of previous analyses. Companies that
increased their spending during a recession gained market
share and improved their proft margin during the recovery
by more than those that maintained or cut spend. It is a fnd-
ing that will come as no surprise to marketers at companies
like Proctor & Gamble. CEO A.G. Lafey, quoted in The Wall
Street Journal, states, We have a philosophy and a strategy.
When times are tough, you build share.
So the evidence seems clear. While companies that cut
marketing spend enjoy superior returns during a recession,
they achieve inferior results after the recession ends. But
what of global brands that seek to maximize economies of
scale by standardizing the execution of marketing programs
across countries? Here the evidence is less clear-cut, but
there is good reason to believe that differences in culture
may dictate that a localized response is better than a one-
size-fts-all approach.
Research conducted for my book The Global Brand reaf-
frmed the think global, act local mantra. If a global brand
is to enter a new market successfully, it must take account
of the competitive context and the differing needs, desires
and values of local consumers. Research conducted by
Millward Brown fnds that being seen as part of the local
culture is a signifcant driver of purchase intent for both
national and global brands. National brands, however, have
the home-feld advantage and are more likely to be seen
as part of the local culture. Global brands can succeed by
disrupting the status quo with innovation and strong adver-
tising support, but a one-size-fts-all solution will rarely be
successful.
One of marketings most diffcult challenges is the cre-
ation of advertising that communicates equally well across
countries and cultures, because in spite of increasingly
global popular entertainment, most people still live very
local lives. When I interviewed him for The Global Brand,
Eric Salama, chairman and CEO of Kantar, pointed out that
the vast majority of consumers still get their cultural cues
from events, discussions, and behaviors that are primarily
local. His proposition is supported by data from both Global
Target Group Index (TGI) and Millward Browns Link com-
munications pretest database.
157
From TGI we observe similar values between rich and
poor within a country, but big differences across countries
between people with relatively high standards of living. It is
people who have both higher incomes and the experience
of international travel that tend to share values with peers
in other countries. They are also the most likely to buy for-
eign brands. In Brazil, where only 1 percent of people travel
internationally each year, travellers are over 50 percent
more likely than their stay-at-home counterparts to buy
foreign brands.
Cultural differences also dictate how consumers will react
to recessionary times. Tom Doctoroff, CEO, Greater China,
J. Walter Thompson, suggests that Chinese consumers
commonly believe that the world is an unsafe place. In
October of last year, he suggested (The) Chinese have
always been conservative spenders and messages in China,
particularly those targeted to the mass market, have usually
focused on protective benefts e.g., ensuring the fam-
ilys physical and fnancial safety. The cautious, long-term
outlook of Chinese consumers is likely to lead to a slower
recovery in consumer spending than in the West and a
reluctance to indulge in even small luxuries. By contrast,
consumers in the United States and Western Europe may
forgo high-ticket items but still spend on affordable luxu-
ries. While consumers in both regions may need to curtail
spending, brands will need to address that necessity with
different messages. In China, the emphasis should be on
long-term fnancial security, while in the West the message
should focus on balancing todays budget.
An examination of Millward Browns Link database, which
contains opinions from consumers around the world on
more than 50,000 ads, demonstrates the diffculty of
producing advertising that transcends countries and cul-
ture. Of those adverts that tested exceptionally well in one
country, only one in fve actually duplicated that excep-
tional performance in another country, Almost one in 10
of those exceptional ads performed below average when
tested in another country. Differences in values, references
and humor rob these ads of their original effcacy. Thus
we can expect that messaging that does not acknowledge
local differences in attitudes toward hard times will also have
uneven success. What might resonate well in one country
might seem inappropriate in another.
The fundamental challenge facing global brands is to get
the right balance between global strategy and local exe-
cution. Brands like McDonalds, Coca-Cola, and Guinness
have found that while adaptation of their communica-
tion is necessary, adaptation of their product also creates
additional revenue and proft. Even technology and Internet
companies, which are often immune to the need to adapt
their products and services for different markets, fnd that
adapting their marketing communication can enhance its
effectiveness. There is good reason to believe that adapta-
tion will be even more important in the face of a global
recession. While people from the U.S., Russia and China
all face hard times ahead they will experience the effects
locally and interpret them differently. Global brands must
recognize that fact and maintain local marketing support if
they are to maintain a strong relationship with their diverse
consumer base in years to come.
158
Latest research from Millward Brown ACSR and Lightspeed
in China shows that global events, particularly the eco-
nomic slowdown, are impinging on attitudes and future
potential behaviour.
11,301 new members of the Lightspeed online panel,
reaching across China, were invited to take part in a survey
during December that asked about three aspects of their
attitudes to brands during the current economic climate.
Questions included:
What is the perceived impact (if any) on them and their
family of the global economic crisis?
In the forthcoming three months, is their spending
likely to alter across a number of categories?
For those who are likely to reduce their spending, does
this prompt a brand switch and/or decrease in category
spending?
Considerable ConCern, partiCularly amongst
industrial Cities and those of working age
with most earning power
When asked: There has been much news recently about
the fnancial crisis overseas. I am interested to understand
how you feel the so-called crisis is affecting you and your
family? more than three-quarters of respondents claimed
it was having an impact. (Big impact 15%, Some 32%, A
little 31%, None/Not sure 22%.)
This fnding was consistent across all city tiers the frst
tier cities of Shanghai, Beijing, Guangzhou and Shenzhen;
the second tier provincial capitals and the third tier other
cities. But most striking is the increased level of anxiety
amongst people in cities with a greater industrial concen-
tration. So Shenzhen tops the league with 60% with some/
big concern about the fnancial crisis (compared to the
overall average of only 47%) whilst the fnancial centre,
Shanghai, registered the lowest level of concern at 41%.
This is further emphasised by seeing that Shanghai is the
core working demographic (age group 19-45) who are far
more concerned 79% some/big concern compared to
65% for the under 19s and 66% for the over 45s. The
level of concern about the fnancial crisis is clearly related
to earning power, since it is the middle class (those in the
earnings bracket from RMB1001+ to RMB5000) who are
most nervous to the extent of some/big concern at 81%.
Chinese Consumer Attitudes
in the Downturn
by pet er walshe, global brandZ di reCtor, mi l lward brown
First published on warc.com 2009, copyright and database rights owned by WARC.
luxury and expensive disCretionary items
likely to suffer Cuts
36 categories were investigated in some detail, covering six
broad areas of expenditure Food, Household and Per-
sonal Care, Eating out, Entertainment and Travel, Financial
investments and Other (such as clothes, jewellery, cell
phones, cars etc).
Not surprisingly, those who feel the most affected by the
fnancial crisis are more likely to claim they will reduce
expenditure. Those who feel the crisis will have an impact
state that they will decrease expenditure in an average of
8.9 categories (out of the 36) and only increase in 3.9
categories a net decrease of fve categories. This is
compared to a net increase of 1.4 categories amongst the
minority who think they will not face any negative impact.
Categories which face the greatest cuts tend to be Eating out
at Western fast food restaurants (52%), travelling (41%), High
risk fnancial investments (41%) as well as discretionary items
such as Audio and video products (40%), Entertainments
(40%) and Premium beauty products/jewellery (39%).
Cell phone thought to be an essential and
less likely to be impaCted
As might be expected, the least affected categories are
likely to be brands considered as essential such as
Household cleaning products (6%); Vegetables and fruit
(8%). Interestingly, Cell phones fall more into the essen-
tials classifcation with a relatively low 22% claiming they
will decrease expenditure.
reduCe frequenCy/amount or switCh to a
Cheaper brand?
In repertoire categories (where purchases are made fre-
quently) the majority of those surveyed say they will just
buy less often and make their purchase last longer. This is
particularly the case for food items such as Cakes, snacks
and beverages (72% on average) but less so for House-
hold cleaning products, Personal care and Beauty (57%
on average). Thus switching to a cheaper brand in order to
maintain frequency of usage is greater in Household and
Personal care/beauty (43% on average) than with Non-
essential foods (28%).
the overall situation and what marketers
Can do
While many analysts and economists agree that the cur-
rent fnancial turmoil is likely to be the worst the world has
seen since the 1930s, Millward Brown continues to believe
that the sheer size of the Chinese domestic market means
that China is in a much better position relative to most of
the world. Various growth estimates put Chinas economic
growth in 2009 to be somewhere between 5.0-7.5%. The
Chinese government itself is targeting 8% growth, believing
the 4 trillion yuan stimulus package it announced in No-
vember will boost the worlds fourth-biggest economy.
But it is also clear from the fndings of this study that Chi-
nese consumers are not spared from the almost daily re-
minders in the media about the slowing economy. News of
factories closing down, and job losses are common. This
means that consumer sentiments are on a downward trend
as they continue to be fearful about the economic situa-
159
Latest research from Millward Brown ACSR and Lightspeed
in China shows that global events, particularly the eco-
nomic slowdown, are impinging on attitudes and future
potential behaviour.
11,301 new members of the Lightspeed online panel,
reaching across China, were invited to take part in a survey
during December that asked about three aspects of their
attitudes to brands during the current economic climate.
Questions included:
What is the perceived impact (if any) on them and their
family of the global economic crisis?
In the forthcoming three months, is their spending
likely to alter across a number of categories?
For those who are likely to reduce their spending, does
this prompt a brand switch and/or decrease in category
spending?
Considerable ConCern, partiCularly amongst
industrial Cities and those of working age
with most earning power
When asked: There has been much news recently about
the fnancial crisis overseas. I am interested to understand
how you feel the so-called crisis is affecting you and your
family? more than three-quarters of respondents claimed
it was having an impact. (Big impact 15%, Some 32%, A
little 31%, None/Not sure 22%.)
This fnding was consistent across all city tiers the frst
tier cities of Shanghai, Beijing, Guangzhou and Shenzhen;
the second tier provincial capitals and the third tier other
cities. But most striking is the increased level of anxiety
amongst people in cities with a greater industrial concen-
tration. So Shenzhen tops the league with 60% with some/
big concern about the fnancial crisis (compared to the
overall average of only 47%) whilst the fnancial centre,
Shanghai, registered the lowest level of concern at 41%.
This is further emphasised by seeing that Shanghai is the
core working demographic (age group 19-45) who are far
more concerned 79% some/big concern compared to
65% for the under 19s and 66% for the over 45s. The
level of concern about the fnancial crisis is clearly related
to earning power, since it is the middle class (those in the
earnings bracket from RMB1001+ to RMB5000) who are
most nervous to the extent of some/big concern at 81%.
Chinese Consumer Attitudes
in the Downturn
by pet er walshe, global brandZ di reCtor, mi l lward brown
First published on warc.com 2009, copyright and database rights owned by WARC.
luxury and expensive disCretionary items
likely to suffer Cuts
36 categories were investigated in some detail, covering six
broad areas of expenditure Food, Household and Per-
sonal Care, Eating out, Entertainment and Travel, Financial
investments and Other (such as clothes, jewellery, cell
phones, cars etc).
Not surprisingly, those who feel the most affected by the
fnancial crisis are more likely to claim they will reduce
expenditure. Those who feel the crisis will have an impact
state that they will decrease expenditure in an average of
8.9 categories (out of the 36) and only increase in 3.9
categories a net decrease of fve categories. This is
compared to a net increase of 1.4 categories amongst the
minority who think they will not face any negative impact.
Categories which face the greatest cuts tend to be Eating out
at Western fast food restaurants (52%), travelling (41%), High
risk fnancial investments (41%) as well as discretionary items
such as Audio and video products (40%), Entertainments
(40%) and Premium beauty products/jewellery (39%).
Cell phone thought to be an essential and
less likely to be impaCted
As might be expected, the least affected categories are
likely to be brands considered as essential such as
Household cleaning products (6%); Vegetables and fruit
(8%). Interestingly, Cell phones fall more into the essen-
tials classifcation with a relatively low 22% claiming they
will decrease expenditure.
reduCe frequenCy/amount or switCh to a
Cheaper brand?
In repertoire categories (where purchases are made fre-
quently) the majority of those surveyed say they will just
buy less often and make their purchase last longer. This is
particularly the case for food items such as Cakes, snacks
and beverages (72% on average) but less so for House-
hold cleaning products, Personal care and Beauty (57%
on average). Thus switching to a cheaper brand in order to
maintain frequency of usage is greater in Household and
Personal care/beauty (43% on average) than with Non-
essential foods (28%).
the overall situation and what marketers
Can do
While many analysts and economists agree that the cur-
rent fnancial turmoil is likely to be the worst the world has
seen since the 1930s, Millward Brown continues to believe
that the sheer size of the Chinese domestic market means
that China is in a much better position relative to most of
the world. Various growth estimates put Chinas economic
growth in 2009 to be somewhere between 5.0-7.5%. The
Chinese government itself is targeting 8% growth, believing
the 4 trillion yuan stimulus package it announced in No-
vember will boost the worlds fourth-biggest economy.
But it is also clear from the fndings of this study that Chi-
nese consumers are not spared from the almost daily re-
minders in the media about the slowing economy. News of
factories closing down, and job losses are common. This
means that consumer sentiments are on a downward trend
as they continue to be fearful about the economic situa-
160
tion and marketers should take note that there are lessons
gleaned from previous global recessions that can be ap-
plied in current times, namely that:
1. needs beat wants
Is your brand a need or a want in consumers lives? In
times of tightening budgets, discretionary purchases
are the frst to be sacrifced. This is when consistent
brand building efforts in the past are expected to pay
off the most. If your product isnt essential, can you
make it feel like it is? Some of the strongest and most
valuable brands in the world (see Millward Brown Op-
timor BrandZ
TM
Top 100 Most Powerful Brands survey
published every year) are discretionary but continue
to attract an unfair share of their market because they
have something unique about them and are harder to
do without.
2. differentiation will Continue to be
important but not at the expense of value
There is no other time like during a crisis when brand
value will be under the greatest scrutiny. Being dif-
ferent will only get your brand so far if you cannot
justify the price. But this does not mean necessarily
engaging in price promotions blindly, especially if the
brand is relatively high-priced. Be warned that once a
price premium is lost, it tends not to be regained. The
more important thing is to make sure that your brand
remains accessible to your consumers. This can mean
introducing bulk packages (value packs) or smaller
packages if your product cannot be kept for long.
3. Continue to invest in your brand
(and your Consumers)
It is tempting indeed to react in a crisis by reducing
marketing spend, but the consequences can be dam-
aging. Brands can indeed go dark for six months or
so with little apparent deterioration in their health.
However, Millward Browns research shows that almost
two thirds of brands that reduce their communications
spend decline on at least one key brand measure. Ad-
ditionally, the problems continue into the long term;
and once decline sets in, its hard to reverse. Consum-
ers who have been tempted to switch to competitors
during the crisis tend not to switch back easily. Indeed,
our additional analysis of the IPA database shows that
a short term fnancial gain from cutting marketing ex-
penditure tends to lead to long term pain with signif-
cant reduction in operating proft.
4. Continue to look for hidden
opportunities
Consumers spending mentality may change during a
crisis but not always in a negative way. Basic values
regarding home, family and health become more
salient during uncertain times. There is also a tendency
for consumers to slot in small premium indulgences
to compensate for deferred gratifcation on big tick-
et items (no new car lets get some premium ice
cream). Brands should look for suitable opportunities
to connect with consumers. Like any worthwhile rela-
tionship, consumers remember (and stay with) brands
who show understanding and empathy with them.
It is evident that many citizens in China are nervous about
their personal prospects over the coming 18 months and
that this will have a negative effect on many consumer
markets.
researCh details
Millward Brown ACSR Lightspeed Research (in China)
invited new qualifers registering for the on-line panel to join
the survey. There was no restriction on any demographic
quotas or region. 11,301 took part between 27th November
and 22nd December 2008.
161
tion and marketers should take note that there are lessons
gleaned from previous global recessions that can be ap-
plied in current times, namely that:
1. needs beat wants
Is your brand a need or a want in consumers lives? In
times of tightening budgets, discretionary purchases
are the frst to be sacrifced. This is when consistent
brand building efforts in the past are expected to pay
off the most. If your product isnt essential, can you
make it feel like it is? Some of the strongest and most
valuable brands in the world (see Millward Brown Op-
timor BrandZ
TM
Top 100 Most Powerful Brands survey
published every year) are discretionary but continue
to attract an unfair share of their market because they
have something unique about them and are harder to
do without.
2. differentiation will Continue to be
important but not at the expense of value
There is no other time like during a crisis when brand
value will be under the greatest scrutiny. Being dif-
ferent will only get your brand so far if you cannot
justify the price. But this does not mean necessarily
engaging in price promotions blindly, especially if the
brand is relatively high-priced. Be warned that once a
price premium is lost, it tends not to be regained. The
more important thing is to make sure that your brand
remains accessible to your consumers. This can mean
introducing bulk packages (value packs) or smaller
packages if your product cannot be kept for long.
3. Continue to invest in your brand
(and your Consumers)
It is tempting indeed to react in a crisis by reducing
marketing spend, but the consequences can be dam-
aging. Brands can indeed go dark for six months or
so with little apparent deterioration in their health.
However, Millward Browns research shows that almost
two thirds of brands that reduce their communications
spend decline on at least one key brand measure. Ad-
ditionally, the problems continue into the long term;
and once decline sets in, its hard to reverse. Consum-
ers who have been tempted to switch to competitors
during the crisis tend not to switch back easily. Indeed,
our additional analysis of the IPA database shows that
a short term fnancial gain from cutting marketing ex-
penditure tends to lead to long term pain with signif-
cant reduction in operating proft.
4. Continue to look for hidden
opportunities
Consumers spending mentality may change during a
crisis but not always in a negative way. Basic values
regarding home, family and health become more
salient during uncertain times. There is also a tendency
for consumers to slot in small premium indulgences
to compensate for deferred gratifcation on big tick-
et items (no new car lets get some premium ice
cream). Brands should look for suitable opportunities
to connect with consumers. Like any worthwhile rela-
tionship, consumers remember (and stay with) brands
who show understanding and empathy with them.
It is evident that many citizens in China are nervous about
their personal prospects over the coming 18 months and
that this will have a negative effect on many consumer
markets.
researCh details
Millward Brown ACSR Lightspeed Research (in China)
invited new qualifers registering for the on-line panel to join
the survey. There was no restriction on any demographic
quotas or region. 11,301 took part between 27th November
and 22nd December 2008.
162
When the economy is booming, people are willing to spend
and are generally optimistic about the future. But as we
have seen in the current fnancial turmoil, when faced with
recession, consumers habits change. Even if their per-
sonal circumstances are not affected by recession, a slump
mindset can set in on a national level, forcing most people
to re-evaluate their habits to some degree.
By their nature, crises have a signifcant impact on us and
our thoughts. It is diffcult to develop a deep understand-
ing of human and social evolution without appreciating the
countless crises that the human race has encountered
throughout history. Economic, social, scientifc, ethical and
religious crises have all made an impact on our progress.
In a recession, consumers have to face the reality that sta-
bility is not a given. Crises can help consumers to focus on
what is really important to them. Many appreciate the value
of friends, family, health and happiness and consciously
adopt a back-to-basics attitude.
People can be split into two groups depending on the way
they react to a crisis. There are those that look to the past
to try and reestablish a sense of security in uncertain times.
In contrast, some people look to the future and see a crisis
as an opportunity for change.
Using these two categories we can identify four types of
consumers according to the way they respond to the crisis.
1. Resistant to change: These consumers are loyal. They
want to maintain their lifestyle and look to brands for
reassurance and confdence during uncertain times.
They may scale back purchases of some luxuries in
order to preserve others. These consumers have strong
associations with leading brands. Because they recog-
nize their added value, they are willing to pay more
for them. Brand owners should take the opportunity to
strengthen the relationship with these consumers.
2. Future-focused: These consumers seize the chance
to try new products and incorporate new values into
their lives during a recession. New brands, particularly
those with bold and daring propositions, can capture
the attention of these consumers with optimistic, for-
ward-looking messages.
Different Reactions to a Crisis
By RaFa GaRRi do, Qual i tat i ve di RectoR, Mi l lwaRd BRown Spai n
This article previously appeared in APD magazine in February 2009.
3. Regressive: Restraint appears to be the new mantra
among these consumers who (in contrast with the
past where people may have bought on impulse or
for status reasons) are now more cautious and scru-
tinize price and benefts to fnd the best deal for
them. Low-cost brands should give consumers more
reasons to buy their products than just price. Those
brands which successfully establish an emotional link
to their brands are more likely to retain the consum-
ers after the recession.
4. dispersion: There are some consumers that rationally
do not acknowledge the recession. They attempt to
bury their heads in the sand and continue with their
usual purchases. However, emotionally they are aware
of the crisis and this drives them to purchase goods
that they didnt really want. Consumers do not value
these replacement brands to the same level as their
usual brand choices; they are simply the consequence
of impulsive purchases. Industries that produce non-
essential goods, and brands which become stronger
during the crisis (e.g. fast food), must understand the
consumption landscape in order to strengthen the
brand values which infuence consumer choice.
Brands need to take a positive role and inspire their
consumers for the future. Consumers look to brands as a
buffer against uncertainty, like an old familiar friend they
can rely on.
The key is to strengthen the relationship between the brand
and consumers by making consumers feel understood.
The defnition of value alters for many consumers and they
change their shopping habits accordingly. Brands must
respond quickly by acknowledging the problems they face
and take steps to make their brand more accessible when
times are hard.
Recession is a time of fux. Marketers need to make the
best of a bad situation. Those that succeed will be well
positioned to take advantage of weaker competition when
the good times return.
163
When the economy is booming, people are willing to spend
and are generally optimistic about the future. But as we
have seen in the current fnancial turmoil, when faced with
recession, consumers habits change. Even if their per-
sonal circumstances are not affected by recession, a slump
mindset can set in on a national level, forcing most people
to re-evaluate their habits to some degree.
By their nature, crises have a signifcant impact on us and
our thoughts. It is diffcult to develop a deep understand-
ing of human and social evolution without appreciating the
countless crises that the human race has encountered
throughout history. Economic, social, scientifc, ethical and
religious crises have all made an impact on our progress.
In a recession, consumers have to face the reality that sta-
bility is not a given. Crises can help consumers to focus on
what is really important to them. Many appreciate the value
of friends, family, health and happiness and consciously
adopt a back-to-basics attitude.
People can be split into two groups depending on the way
they react to a crisis. There are those that look to the past
to try and reestablish a sense of security in uncertain times.
In contrast, some people look to the future and see a crisis
as an opportunity for change.
Using these two categories we can identify four types of
consumers according to the way they respond to the crisis.
1. Resistant to change: These consumers are loyal. They
want to maintain their lifestyle and look to brands for
reassurance and confdence during uncertain times.
They may scale back purchases of some luxuries in
order to preserve others. These consumers have strong
associations with leading brands. Because they recog-
nize their added value, they are willing to pay more
for them. Brand owners should take the opportunity to
strengthen the relationship with these consumers.
2. Future-focused: These consumers seize the chance
to try new products and incorporate new values into
their lives during a recession. New brands, particularly
those with bold and daring propositions, can capture
the attention of these consumers with optimistic, for-
ward-looking messages.
Different Reactions to a Crisis
By RaFa GaRRi do, Qual i tat i ve di RectoR, Mi l lwaRd BRown Spai n
This article previously appeared in APD magazine in February 2009.
3. Regressive: Restraint appears to be the new mantra
among these consumers who (in contrast with the
past where people may have bought on impulse or
for status reasons) are now more cautious and scru-
tinize price and benefts to fnd the best deal for
them. Low-cost brands should give consumers more
reasons to buy their products than just price. Those
brands which successfully establish an emotional link
to their brands are more likely to retain the consum-
ers after the recession.
4. dispersion: There are some consumers that rationally
do not acknowledge the recession. They attempt to
bury their heads in the sand and continue with their
usual purchases. However, emotionally they are aware
of the crisis and this drives them to purchase goods
that they didnt really want. Consumers do not value
these replacement brands to the same level as their
usual brand choices; they are simply the consequence
of impulsive purchases. Industries that produce non-
essential goods, and brands which become stronger
during the crisis (e.g. fast food), must understand the
consumption landscape in order to strengthen the
brand values which infuence consumer choice.
Brands need to take a positive role and inspire their
consumers for the future. Consumers look to brands as a
buffer against uncertainty, like an old familiar friend they
can rely on.
The key is to strengthen the relationship between the brand
and consumers by making consumers feel understood.
The defnition of value alters for many consumers and they
change their shopping habits accordingly. Brands must
respond quickly by acknowledging the problems they face
and take steps to make their brand more accessible when
times are hard.
Recession is a time of fux. Marketers need to make the
best of a bad situation. Those that succeed will be well
positioned to take advantage of weaker competition when
the good times return.
164
tive benchmarking data across 34 Dynamic Logic mobile
ad effectiveness studies shows that WAP banner ads can
increase traditional brand metrics such as brand awareness
and purchase intent (see fgure 1 below).
Article HigHligHts:
Quantifying mobiles role in the media mix is
becoming increasingly important
Early studies show mobile banner ads can increase
traditional brand metrics
Mobile brand measurement will become more
sophisticated this year
Click-through rates, SMS subscribers, widget/application
interaction time, mobile video downloads, game plays
these are no doubt good metrics for determining the suc-
cess of a mobile marketing campaign. However, advertisers
could be in jeopardy of making some of the same mistakes
that were made in the early days of online advertising, when
click-through seemed like the fast answer to ROI. In the
current economic environment, it is increasingly important
to measure the value of every marketing dollar spent.
The mobile medium can and should be viewed as a brand-
building platform, just as TV, print, and the internet have
proven to be time and again. This is especially the case
for mobile today, given that there is still little clutter and
users are still curious and engaged. Newly released norma-
Filling in the Mobile Measurement Gaps
By Jenni f er Okul A, vi ce presi dent cl i ent And mArket develOpment, dynAmi c lOgi c
0
20
25
15
10
5
Source: Dynamic Logics AdIndex for Mobile Norms as of Jan. 2009;
N=34 campaigns, n=34,611 respondents
Delta () represents percent of people impacted by ad exposure;
calculated Delta () = Exposed-Control
d
e
l
t
a

(

)
Aided
Brand
Awareness
4.7
mobile Ad
Awareness
23.1
message
Associa-
tion
12.3
Brand
favorability
3.5
purchase
intent
5.8
This article previously appeared in iMedia Connection on February 18, 2009, www.imediaconnection.com.
figure 1
mobile ad effectiveness norms
These increases are still very large, indicating that brands
have an opportunity to really make an impact. Though it
could be argued that the reach of the mobile internet has
not yet hit critical mass, the frequency of mobile internet
usage among those that are getting online via their mobile
device demonstrates that users are highly engaged. Among
the studies mentioned above, on average 91 percent of
respondents claim to use the mobile internet at least once
per week, and 63 percent say they use it more than once
per day.
Display ads are just one example of how marketers are
beginning to leverage mobile as a brand-building medium.
Other mobile marketing efforts can have just as much
or more brand-building power. Research released by 4th
Screen Advertising has shown that mobile pre-roll video
ads are attention grabbing and increase brand recogni-
tion. Fifty-nine percent of respondents exposed to 15-sec-
ond mobile video ads said it made them more interested in
the advertised brand, and 62 percent said it gave a good
impression of the brands being advertised.
What about a simple branded or sponsored SMS/MMS
message? Do they have any branding impact? Some mar-
keters and publishers would argue they do, and are engag-
ing in measurement to verify and quantify this. We be-
lieve there is a lot of value in maintaining a brand presence
across all aspects of a users mobile experience, whether
thats while they are checking for latest sports scores and
fantasy football and baseball updates on our WAP and
iPhone sites, or receiving them via SMS message, says
Rich Calacci, SVP of advertising sales for CBSSports.com
and CBS Mobile.
What will 2009 hold for mobile brand measurement? There
are three key categories for more advanced measurement
opportunities in the coming year:
Survey delivery advancements
Linking branding and behavior
Analyzing the impact of mobile in conjunction with
other media
First, mobile experts are focusing on ways in which publish-
ers, marketers, and their agencies can further gain insight
into perceptions and attitudes via survey data. More and
more mobile users are expected to become comfortable
with texting short codes, taking WAP surveys, and even
clicking to call a number. Technology enabling interactive
voice response (IVR) and SMS surveys will make it easier
and faster to reach and poll respondents on the go, even as
they are interacting with advertising.
Second, linking brand measurement with behavior is often
discussed but hard to accomplish. However, companies like
Phluant Mobile are looking to merge and analyze location
and browser behavior data with survey-based brand metric
data. Phluant offers richer mobile ad experiences via its M-
stitial ad unit, which is a full-screen ad that displays on the
users device as the internet browser and mobile site loads.
Advertisers may soon be able to link brand impact due to
ad exposure with the location of a user, page visitations,
clicks, and possibly even actions taken, such as signing up
165
tive benchmarking data across 34 Dynamic Logic mobile
ad effectiveness studies shows that WAP banner ads can
increase traditional brand metrics such as brand awareness
and purchase intent (see fgure 1 below).
Article HigHligHts:
Quantifying mobiles role in the media mix is
becoming increasingly important
Early studies show mobile banner ads can increase
traditional brand metrics
Mobile brand measurement will become more
sophisticated this year
Click-through rates, SMS subscribers, widget/application
interaction time, mobile video downloads, game plays
these are no doubt good metrics for determining the suc-
cess of a mobile marketing campaign. However, advertisers
could be in jeopardy of making some of the same mistakes
that were made in the early days of online advertising, when
click-through seemed like the fast answer to ROI. In the
current economic environment, it is increasingly important
to measure the value of every marketing dollar spent.
The mobile medium can and should be viewed as a brand-
building platform, just as TV, print, and the internet have
proven to be time and again. This is especially the case
for mobile today, given that there is still little clutter and
users are still curious and engaged. Newly released norma-
Filling in the Mobile Measurement Gaps
By Jenni f er Okul A, vi ce presi dent cl i ent And mArket develOpment, dynAmi c lOgi c
0
20
25
15
10
5
Source: Dynamic Logics AdIndex for Mobile Norms as of Jan. 2009;
N=34 campaigns, n=34,611 respondents
Delta () represents percent of people impacted by ad exposure;
calculated Delta () = Exposed-Control
d
e
l
t
a

(

)
Aided
Brand
Awareness
4.7
mobile Ad
Awareness
23.1
message
Associa-
tion
12.3
Brand
favorability
3.5
purchase
intent
5.8
This article previously appeared in iMedia Connection on February 18, 2009, www.imediaconnection.com.
figure 1
mobile ad effectiveness norms
These increases are still very large, indicating that brands
have an opportunity to really make an impact. Though it
could be argued that the reach of the mobile internet has
not yet hit critical mass, the frequency of mobile internet
usage among those that are getting online via their mobile
device demonstrates that users are highly engaged. Among
the studies mentioned above, on average 91 percent of
respondents claim to use the mobile internet at least once
per week, and 63 percent say they use it more than once
per day.
Display ads are just one example of how marketers are
beginning to leverage mobile as a brand-building medium.
Other mobile marketing efforts can have just as much
or more brand-building power. Research released by 4th
Screen Advertising has shown that mobile pre-roll video
ads are attention grabbing and increase brand recogni-
tion. Fifty-nine percent of respondents exposed to 15-sec-
ond mobile video ads said it made them more interested in
the advertised brand, and 62 percent said it gave a good
impression of the brands being advertised.
What about a simple branded or sponsored SMS/MMS
message? Do they have any branding impact? Some mar-
keters and publishers would argue they do, and are engag-
ing in measurement to verify and quantify this. We be-
lieve there is a lot of value in maintaining a brand presence
across all aspects of a users mobile experience, whether
thats while they are checking for latest sports scores and
fantasy football and baseball updates on our WAP and
iPhone sites, or receiving them via SMS message, says
Rich Calacci, SVP of advertising sales for CBSSports.com
and CBS Mobile.
What will 2009 hold for mobile brand measurement? There
are three key categories for more advanced measurement
opportunities in the coming year:
Survey delivery advancements
Linking branding and behavior
Analyzing the impact of mobile in conjunction with
other media
First, mobile experts are focusing on ways in which publish-
ers, marketers, and their agencies can further gain insight
into perceptions and attitudes via survey data. More and
more mobile users are expected to become comfortable
with texting short codes, taking WAP surveys, and even
clicking to call a number. Technology enabling interactive
voice response (IVR) and SMS surveys will make it easier
and faster to reach and poll respondents on the go, even as
they are interacting with advertising.
Second, linking brand measurement with behavior is often
discussed but hard to accomplish. However, companies like
Phluant Mobile are looking to merge and analyze location
and browser behavior data with survey-based brand metric
data. Phluant offers richer mobile ad experiences via its M-
stitial ad unit, which is a full-screen ad that displays on the
users device as the internet browser and mobile site loads.
Advertisers may soon be able to link brand impact due to
ad exposure with the location of a user, page visitations,
clicks, and possibly even actions taken, such as signing up
166
for text reminders about a product. Coupled with the survey
technologies discussed above, it may further be possible to
follow-up with users to confrm an actual sale.
Third, mobile marketing is most effective when used as part
of a larger marketing campaign. Quantifying mobiles role in
the media mix is becoming increasingly important. Market-
ers want to know how mobile works alongside other media,
as well as what synergies and incremental effects mobile
can have.
As a frst step, it will be essential to gain a better under-
standing of the impact of a campaign with both a mobile
and online component. According to Nielsen Mobile, mo-
bile web traffc extends the audience reach of online sites
by an average of 13 percent. Each medium alone is likely to
have specifc goals and strengths at branding. In combina-
tion, an online plus mobile campaign may yield even larger
increases in brand metrics than either one alone.
Many companies, including Microsoft, are beginning to ex-
plore methodologies for this type of cross-media measure-
ment. Although there are challenges with the current reach
of mobile campaigns and tracking mobile ad exposure, we
should start to see results of such research in the year to
come. Microsoft understands the importance of proving the
value of mobile advertising, says Pavan Li, senior research
manager of mobile advertising at Microsoft. Although it may
be a challenge to provide innovative measurement solutions,
the frst to accomplish this will help the entire industry move
forward. We hope to be among those pioneers.
167
for text reminders about a product. Coupled with the survey
technologies discussed above, it may further be possible to
follow-up with users to confrm an actual sale.
Third, mobile marketing is most effective when used as part
of a larger marketing campaign. Quantifying mobiles role in
the media mix is becoming increasingly important. Market-
ers want to know how mobile works alongside other media,
as well as what synergies and incremental effects mobile
can have.
As a frst step, it will be essential to gain a better under-
standing of the impact of a campaign with both a mobile
and online component. According to Nielsen Mobile, mo-
bile web traffc extends the audience reach of online sites
by an average of 13 percent. Each medium alone is likely to
have specifc goals and strengths at branding. In combina-
tion, an online plus mobile campaign may yield even larger
increases in brand metrics than either one alone.
Many companies, including Microsoft, are beginning to ex-
plore methodologies for this type of cross-media measure-
ment. Although there are challenges with the current reach
of mobile campaigns and tracking mobile ad exposure, we
should start to see results of such research in the year to
come. Microsoft understands the importance of proving the
value of mobile advertising, says Pavan Li, senior research
manager of mobile advertising at Microsoft. Although it may
be a challenge to provide innovative measurement solutions,
the frst to accomplish this will help the entire industry move
forward. We hope to be among those pioneers.
of which are lower-consideration inexpensive products. On
average, online FMCG campaigns increase purchase intent
by 1.6 percentage points 16 in every 1,000 people are
more likely to considering buying the brand after exposure
to online advertising. Compared to automotive, which are
high-consideration, high price-point items, purchase con-
sideration increases by 0.6 percentage points on average,
meaning six in every 1,000 people are more likely to con-
sider buying the advertised brand as a result of exposure to
online advertising.
According to the research, an automotive brand can effec-
tively raise awareness across most types of websites. How-
ever, auto sites work best for shifting favourability (4.2%)
and purchase intent (2. 1%) since theyre reaching people
who are potentially more receptive to the ad message. For
auto brands, its critical to reach consumers when theyre in
the market to buy a car in order to have the strongest im-
pact; that may be less important for other brand verticals.
In these uncertain times, we should go back to basics
and see if online advertising really can have an impact on
branding, look for proof that it can work to positively shift
attitudes, and learn how online advertising can work more
effciently. If corners are cut and all brands revert to direct
response ads and focus only on short-term sales, then what
will happen to the long-term impact on brand equity?
Heres what we know. Based on 2,316 online campaigns
measured globally over the past three years, people who
are exposed to brand advertising online are more likely to
recall the ads (5. 1%), be aware of the brand (2.4%), be
more favourable towards the brand (1.6%) and consider
buying the advertised brand (1.2%) than people who saw
none of the online ads.
Looking at automotive and FMCG specifcally, we fnd that
using online as a brand-building medium can have a positive
impact and infuence purchase decisions in both of these
sectors. FMCG represents a wide variety of brands, many
AnAlyst speAk:
Reassuring Brands Online Ads Really
Do Have an Impact on Consumers
by Chri st i nA GoodmAn, heAd of GlobAl mArket i nG And busi ness development, dynAmi C loGi C
This article previously appeared in the February 26, 2009 edition of New Media Age, www.nma.co.uk.
168
The impact that exposure to online advertising can have
varies by ad format, level of exposure, website and brand
vertical, but on average we know that online works for
communicating branding messages, building over time and
working with other media for brand reinforcement. Going
back to branding basics allows us to assess what works and
what doesnt.
n Automotive n fmCG
online ad awareness
brand favourability
purchase consideration
fiGure 1
4.3%
1.3%
0.6%
6.4%
1.6%
1.6%
increase in response of people exposed to online advertising
Source: Dynamic Logic
169
Successful global brands can create incredible value for the
companies that own them. But managing a global brand is
not easy.
Its tough enough to grow a strong brand in one country;
the diffculty is magnifed a hundredfold on a global scale.
In taking a brand global, a company faces a major chal-
lenge: to successfully leverage the advantages of scale and
not get lost in it. Scale is not an advantage if it results in
fragmentation and efforts are diluted across conficting
priorities.
I have interviewed many marketing practitioners, all of
whom were wrestling with the issue of striking the right
balance between local marketing effectiveness and global
effciencies of scale.
That balance, while diffcult to achieve under the best of
circumstances, is almost impossible to attain if global mar-
keters lack the marketing metrics they need to understand
the health of their brands and the effectiveness of their
communication across regions.
But implementing a global research program is no easier
than marketing a global brand successfully. Choosing an
appropriate methodology, while challenging, may actually
be the easy bit. What is likely to be even more daunting
is to ensure that you can sensibly compare results across
countries and cultures, and that you have the stakeholder
buy-in you need to use the results.
The need for a common approach
One of the requirements for managing a brand in a
number of countries around the world is the ability to
make apple-to-apples comparisons. When different re-
search techniques are used to evaluate a brand in different
countries, it is impossible to judge the brands relative
performance across countries or to identify the campaigns
that have been most effective.
This applies to all types of quantitative research, whether it
is pre-testing (advertising or packaging), measuring brand
equity or tracking in-market performance. Research that
results in a common set of metrics will facilitate decision
making. Without such common metrics, the potential to
reap the benefts of scale is undermined.
Global Research Needs to Be
Overlaid With Cultural Tastes
by ni gel hol l i s, chi ef global analysT, mi l lward brown
This article previously appeared in the March 2009 edition of Admap, www.admapmagazine.com.
170
The adoption of a common research approach can serve
a global brand by helping brand stewards with a number of
the following tasks:
To effectively deploy budgets across a portfolio of brands
and countries, senior management needs some objective
standard. Research metrics that have been proven to an-
ticipate future brand and marketing performance, when
combined with current share data and category growth
rates, can provide more useful guidance than historical
performance or reliance on personal opinion.
power of meTrics
Hard data helps put personal opinion in context and speeds
up the process of reconciling opinion differences. According
to David Wheldon, Global Director of Brand at Vodafone:
Having these brand metrics allows you to demonstrate the
power of a strong brand across different businesses and
countries and encourage people to learn from what others
do right.
Common metrics will enable companies to implement an
effective search and redeploy strategy, utilizing best prac-
tices and brand assets across markets (provided that the
corporate culture encourages sharing). By allowing people
to anticipate what will work in their markets based on what
has worked in others, companies can avoid duplication of
effort and ensure the effective brand building.
The research approach that provides marketers with a
common currency that works across countries must also
provides fexibility and value at the local level. Companies
vary in the way they organize international research (often
in line with their approach to brand management), but they
always face global/local issues.
Where budgets are held locally, it can be very diffcult to
persuade individual markets to adopt the common ap-
proach that will make it possible to obtain a global overview.
Yet where budgets are held centrally, local markets can feel
they have no control over the process, and may be reluctant
to buy into the program or embrace the resulting fndings.
But there are steps that can be taken to produce an effec-
tive global research program, whatever the subject matter
and objectives:
involve The key sTakeholders and decision
makers
Identify the decision makers both offcial and unoffcial
in your company and get them involved at the outset.
Talk to the stakeholders to understand the issues the re-
search must address; dont assume that the initial research
brief was comprehensive. Additional subtleties and com-
plexities may come to light during stakeholder interviews.
As an independent third party, your research agency can
play an important role in this process.
creaTe a dedicaTed Team
Global projects are signifcantly more diffcult to implement
than most people expect. The degree of coordination re-
quired to get a global project off the ground is far greater
171
than what is needed for a single-country study. A dedi-
cated team, consisting of research agency personnel and
client representatives from all of the key markets, is critical
to success.
sell The program To Those who will use iT
Make sure that all those who will use the research as well
as those who will be affected by decisions made from
research fndings understand the issues and the approach.
The central team must understand and be sensitive to the
local needs and issues, while the local teams must see
some beneft to the program. If people see that a proj-
ect has the support of senior management, they are more
likely to buy into it.
compromise where necessary
Regardless of what you start out trying to implement, you
inevitably end up with a compromise. This can be frustrat-
ing, particularly for research purists.
The critical outcome, however, is that the program address-
es local needs without forgoing the ability to compare met-
rics across countries and cultures. In cases where not every
party understands or agrees on the need for the research,
a proof of concept can be very helpful. Identify a lead
country and pilot test the project. Celebrate and communi-
cate success to encourage others to take part.
anTicipaTe issues wiTh inTerpreTaTion
One-size-fts-all rarely works for global brands or for
global research. Even with a consistent approach to a study,
a number of challenges inherent to the practice of research
itself must be overcome if a useful global overview is to
result. By far the biggest problem with global research is
that absolute fgures are not comparable across countries.
These may be due to one or more of the following factors:
methodology. It is rarely possible to use exactly the
same research methodologies across a range of coun-
tries. While in the US and the UK, online research has
become the norm, in many other countries the stan-
dard approach for reaching a reasonably representative
cross-section of people is telephone or face-to-face
interviewing. We know that when different method-
ologies are used within a single country, results can
vary widely. When different methodologies are applied
across different countries, it is diffcult to sort out real
country differences from those incurred by different
data collection techniques.
language and terminology. Wording and translation
must be carefully considered as they can have a great
impact on results. In the United Kingdom, for instance,
the term food miles is widely used and understood to
describe how far goods and groceries have traveled to
get to the store shelf. In the United States, the term is
neither used nor commonly understood.
cultural response bias. Response to questionnaires
is intimately bound up with culture. Results can vary
across countries because people respond to question
differently.
172
china u.k.
baidu google google
bonded to brand 43% 18% 51%
drivers of bonding
(relative scores allowing for the brands size differential and
competitive context)
Quickest searching +18% +29% +15
searching is easier +7% +19% +7
most relevant links +5% +22% +12
voltage +7.4 +7.5 +10.7
same brand, different contexts
In the event that no database exists, then the results from
an individual study must be used to provide benchmarks.
For instance, it may be possible to benchmark a brands
performance across countries to a consistent set of or key
competitors or the strongest competitor in each market.
The risk today is that managers senior or junior will
be so inundated by information that they will not be able
to absorb or act on it. Research data should be separated
into two groups:
For example, in some countries respondents are prone
to top-boxing on scales, while in other parts of the
world the extreme ends of the scale are avoided.
The average response to the enjoyment scale asked in
Millward Browns Link
TM
pretest shows a wide variation
in response from developing countries like Indonesia,
China and India to Western European markets like
Sweden, Germany and the UK. (Notably, the United
States sits in the middle of the pack.)
maThemaTical soluTion
There are no easy ways round these differences; however,
when a database exists, it is possible to make the data more
comparable. For example, a normalized index can be cre-
ated by mathematically transforming the distribution on
each scale, so that for any given measure, an indexed score
represents the same relative standing in every country.
When measures have been designed to account for a
brands relative standing within a category and country,
apples-to-apples comparisons will be facilitated. Two such
measures are Millward Browns Bonding score the pro-
portion of people who have a strong positive attitudinal
relationship with a brand and Voltage 2.0 an indi-
cator of share growth or decline. Using approaches like
these, senior managers can compare performance across
countries without worrying about the underlying complex-
ities involved.
In the UK, Google is classifed in Millward Browns BrandZ
TM
research
as an Olympic brand, but in China, Baidu, not Google, is the stron-
gest Internet brand. Over 40% of Chinese Internet users have a
strong attitudinal loyalty i.e., are Bonded to Baidu. That is more
than twice the proportion Bonded to Google. However, our data
suggests that Google has the potential to grow further in China.
People in China value Google for the same attributes which made
it preeminent in the U.K. and U.S.A. Google maintains a healthy
advantage over Baidu on key search criteria and Google has a Volt-
age score equal to Baidu, suggesting the brand is likely to gain share
over the next year (all other things being equal).
Source: Millward Browns BrandZ
TM
brand equity study, 2008
figure 1
173
Communication issues may cluster in similar ways,
since communication is integrally bound up with culture.
Because of cultural differences, there is no guarantee that
an execution that is successful in one country will be effec-
tive in another. Examining ads that did exceptionally well
on pre-tests in their country of origin, revealed that fewer
than 1 in 5 ads achieved exceptional results when tested in
another country.
effective advertising does not always travel well
1. Key metrics that summarize current status and relate
to future business outcomes. These metrics should be
readily available and presented in an easily digestible
format that facilitates decision making.
2. Diagnostic information that helps explain why a situa-
tion exists and what might be done about it. No set of
key performance indicators, however complete, can
provide all the answers. Any company experienced
in the feld of global measurement should be able to
provide diagnostic information from their research to
not only tell you what is happening, but why it is hap-
pening, and to suggest actions that might be taken.
long-Term value of global research
Global brand measurement creates a level playing feld
on which to compare brand and marketing effectiveness
around the world. While much of the value is derived in the
context of specifc investment and portfolio decisions, the
general value of such a program only increases with time.
A global research program can help identify countries or
regions where a brand faces similar issues, facilitating the
sharing of best practice. For example, due to differing cat-
egory and brand development, competitive contexts and
cultural values, countries may not cluster along geographic
lines. Europe, Australia and Mexico may represent a much
more homogenous brand status and common challenges
than Russia, India or China.
Source: Millward Brown Link
TM
pre-test database
Fewer than one in fve ads that pre-test exceptionally well in their
country of origin do so when tested in another country. Reasons
why advertising does not necessarily travel well often rest with
differences in values, humor or the nuances of language. For in-
stance, an advert which featured a naked woman in a shower was
found far less enjoyable by the British than the Germans. Familiar
sayings may lose their meaning, and with it ad effectiveness, when
translated into a language like Korean or Chinese. Lastly, brand
history can make a big difference to the way people in different
countries react to a specifc ad, particularly if it makes too big an
assumption about the target audiences existing knowledge.
degree to which exceptional ads perform well elsewhere
exceptional
great not
exceptional
good not
great
average
below
average
18%
31%
25%
19%
8%
0% 10% 20% 30%
figure 2
174
The chances of successfully sharing executions across
markets are improved by knowing which countries tend
to group together. An analysis of Link pre-testing results
in Asia, for instance, identifed that ads created in Thai-
land were typically likely to do well in the Philippines and
Indonesia. By contrast, ads created in Japan were unlikely
to perform well in Korea or Taiwan. Similar analysis in Latin
America suggests ads from Mexico and Brazil transfer more
readily between those countries than between Mexico and
Argentina.
imporTance of local knowledge
One of the most important lessons learned from my years
of involvement with global research studies is not to make
assumptions about what the results mean. Particularly
when the data may vary for methodological and cultural
reasons you cannot assume that you can judge from Lon-
don or New York what might be important in Sao Paulo,
Johannesburg or Delhi. Particularly when assessing the ef-
fectiveness of a global campaign so much depends on local
references, humor and values that diagnostic interpreta-
tion, understanding why something did or did not work as
intended, can be diffcult. The ideal solution is to have local
agency and client teams provide their understanding of the
results before making any hard and fast conclusions.
Good research that combines both forward-looking evalua-
tive measures and diagnostic questions can play a valuable
role in helping to manage a global brand. It can provide
not only a currency but also a potential source of insight.
Almost every global company that Millward Brown works
for recognizes the value of research to identify best practice
and ensure a proper balance between global and local.
175
assets. As recently as 1980, the majority of corporate value
was tangible value contained in property, plant and
equipment. Today, intangible assets account for over 70%
of the value of the Fortune 500. Of these intangibles, brand
is one of the most valuable, according to Millward Brown
Optimors analysis, accounting for around 30% of global
corporate value (see Figure 1).
A change is occurring in attitudes towards branding and
marketing. The traditional view that brands are about
logos and packaging, and only meaningful for consumer
products businesses is on its way out. Behind this shift
lies an evolution in the structure of global business. Over
the past 25 years, the move from manufacturing to a
service and information-based economy has been
accompanied by a dramatic rebalancing of corporate
Firms That Build Brand Value Will Be
Recession Survivors
by Joanna Seddon, Ceo, Mi l lward brown opt i Mor
This article previously appeared in the May 2009 edition of Admap, www.admapmagazine.com.
Figure 1
brand is a critical driver of shareholder value
Stock price performance of companies with strong versus weak brands*
January 2008 March 2009 (Index 100 = January 1995)
0
95 96 97 98 99 01 00 02 03 04 05 06 07 08 09
year
Strong brands
weak brands
500
400
200
100
300
* Brand strength based on previous years BrandZ
TM
Voltage, demonstrating that Voltage is predictive of share price performance; only one-brand companies have been considered
Source: Proprietary WPP BrandZ
TM
brand strength data; Bloomberg; Millward Brown Optimor analysis Millward Brown Optimor 2009
Bus i ne s s e s t hat unde rstand t he i mportance of st r ong Brands
and how to Bui l d t he m have gre at e r value .
176
Brand valuation is designed to quantify the value that brand
adds to the business. It can be used for strategic or purely
fnancial purposes.
Financial applications include brand valuation for trans-
actions, for compliance with accounting standards and for
tax purposes. These valuations tell you what value has been
created by past activities.
In strategic applications, brand valuation is used to iden-
tify actions that can be taken to increase the future value
that brand adds to the business. Applications range from
baseline brand assessment to best-practice benchmarking,
brand strategy development, portfolio rationalisation, cus-
tomer experience redesign, budget allocation and ongoing
measurement systems to track the results.
rank
ranking
change
brand
brand value
2009 ($m)
% change
09 vs. 08
1 = Google 100,039 16%
2 +1 Microsoft 76,249 8%
3 +1 Coca-Cola* 67,625 16%
4 +2 IBM 66,622 20%
5 +3 McDonalds 66,575 34%
6 +1 Apple 63, 113 14%
7 -2 China Mobile 61,283 7%
8 -6 GE 59,793 -16%
9 +2 Vodafone 53,727 45%
10 = Marlboro 49,460 33%
These economic facts have generated recognition among
the accounting and fnance community that brand is a valu-
able business asset. This is the idea behind brand valuation:
brand is a valuable asset of the corporation, and should be
treated like any other asset. This means it must be invested
in, put to work to generate value and held accountable for
the results.
ManageMent Strategy
The reason for valuing brands is to bring them within the
fnancial framework of the organisation and ensure that
they are managed wisely.
Brands create value for companies on both the demand
and supply side of the business. A strong brand will gen-
erate higher sales by stimulating trial and building loyalty.
It can also impact margins by creating a favourable price/
value perception and making customers willing to pay a
premium over the competition. Less well-known, but equally
true, is that brands impact the supply side of the business.
Companies with strong brands can negotiate better terms
with suppliers and fnd it easier to attract and retain the best
employees. A strong brand can also facilitate expansion into
new products and markets through brand licensing.
The incremental value added by brand means that, over
time, companies with strong brands have greater business
value and command higher share prices (see Figures 2 and
3). In the current recession, when the value of many busi-
nesses has fallen, brand has become an even bigger part of
the equation, helping to sustain frms in trouble.
Figure 2
*The brand value of Coca-Cola includes Diet Coke, Coke Light and Coke Zero
Source: Millward Brown Optimor (including data from BrandZ
TM
, Datamonitor and Bloomberg)
top 10 global brands 2009
177
Valuation MethodS
So how can companies ensure brand valuation is robust?
The frst step is to select the most appropriate brand valua-
tion method. Approaches to brand valuation fall into two
main categories. The frst looks at external approaches,
year-on-year brand value risers
rank brand brand value growth
1 China Merchants Bank 168%
2 Blackberry 100%
3 Amazon 85%
4 Wendys 72%
5 AT&T 67%
6 Aldi 49%
7 Auchan 48%
8 Vodafone 45%
9 Johnnie Walker 42%
10 Kronenbourg 1664 41%
11 O2 36%
12 ICBC 36%
13 Rolex 35%
14 Movistar 34%
15 McDonalds 34%
16 BBVA 33%
17 Marlboro 33%
18 Chivas 30%
19 Nespresso 27%
20 Nivea 24%
which include market based and royalty relief. Both rely
on obtaining relevant comparable data from prior transac-
tions. In the end, all these tell us is what others ended up
negotiating. These approaches lack transparency and
sophistication, and have very little to do with the brand.
The second brand valuation method looks at internal
approaches. These are based on the concept of economic
use. Underlying the brand valuation is a business valuation
model. Brand value is determined by measuring the role
that brand plays in the customer purchase decision. This
calculation is used to determine the proportion of sales,
profts and business value that can be attributed to a brand.
The advantage of these approaches is that they look inside
the brand being valued and can be used to identify the
sources of brand value creation.
In ongoing discussions involving accounting standards, ISO
standards and the UN, economic use is emerging as the pre-
ferred approach to brand valuation. Its advantage is obvious
it is the only approach that looks at how the brand creates
value, and the only one that can be applied strategically.
The robustness of an economic use valuation depends on
the type of data and quality employed by both the fnan-
cial and equity analysis. For the results to be meaningful,
it is essential to take both pieces of analysis seriously. This
means employing quantitative brand equity research to
determine the contribution the brand makes to driving
sales, as well as building fne-grained fnancial valuation
models (see panel, Four components to a robust valuation,
page 204).
Figure 3
top 20 brand value risers
Source: Millward Brown Optimor (including data from BrandZ
TM
, Datamonitor and Bloomberg)
178
Millward Brown Optimors ranking, published annually in the
Financial Times, includes all four components of a robust
brand valuation (see Figure 4). The BrandZ
TM
Top 100 com-
bines fnancial data, from Bloomberg, with detailed product
and market information from Datamonitor, and brand equity
data from BrandZ, the worlds largest brand equity study,
conducted annually by Millward Brown for WPP. It includes
over 50,000 brand measurements, conducted across 30
countries, 433 categories and more than one million con-
sumers and business customers, over the past 10 years.
The 2009 Top 100 provides interesting insights into the
role and importance of branding in tough times. The frst of
these is that brands sustain value in a downturn.
The total value of the worlds 100 most valuable brands did
not go down in 2008 a year in which share prices plum-
meted. It should not be surprising that brand values are
high compared with current market cap. This refects both
the fact that some brands are currently undervalued by
stock markets, and that, while other business fundamen-
brand
value =
X X
Corporate
earnings
branded
earnings
branded
intangible
earnings
$
$
$
Step 1:
intangible earnings
Intangible corporate earnings allocated
to each brand by country, based on
company and analyst reports, industry
studies, revenue estimates, etc.
Data sources: Bloomberg, Datamonitor
Step 2:
brand contribution
Portion of intangible earnings
attributable to brand. Directly driven
by BrandDynamics
TM
Loyalty Pyramid
and Category Segmentation
collected within the BrandZ study.
Data sources: BrandZ
%
Step 3:
brand multiple
Brand earnings multiple.
Calculated based on market
valuations, brand growth
potential and Voltage as
measured by BrandDynamics.
Data sources: Bloomberg, BrandZ
M
Figure 4
brandZ
tM
methodology
Four components of a robust brand valuation
1
Segmentation: For the analysis to be accurate, it should be
bottom-up. Depending on the nature of the business, the valua-
tion may consider customer segments, products, channels and geo-
graphy. The objective is to drill down to the level at which the brand
behaves differently. The brand valuation analysis is then conducted
for each segment.
2
Financial analysis: Company fnancial data is used to identify the
portion of earnings or cash fows associated with each segment.
This part of the work is the same as that which would be conducted
for a business valuation.
3
brand driver analysis: Market research is used to isolate the
brand contribution the portion of earnings or cash fows gen-
erated by brand equity. The analysis addresses two key questions:
What are the drivers of the customer purchase decision? and What
role does brand play in that decision?
4
brand risk analysis: The portion of future cash fows or earnings
that has been identifed as created by brand value is then discount-
ed to obtain a net present value. The discounted rate takes into account
the future growth outlook for the brand, combining standard fnancial
metrics with a measurement of the risk associated with the brand.
179
tals have declined, brands have retained their power and
value. Companies that continue to invest in brands will be
well positioned coming out of the recession compared with
those that have cut their brand and marketing budgets.
The second point to note is that brands are bifurcating. The
2009 results are very mixed. Categories, with the exception
of insurance and cars, include brands that have gained in
value, as well as those that have lost value in the past year.
Winners include luxury brands, such as Rolex and Louis
Vuitton, and discount brands including Wal-Mart and Aldi.
What do these brands have in common? In each case, con-
sumers know what they are paying for. Rolexs customers
feel the value the brand adds to their lives justifes the high
price premium. For Wal-Mart or Aldis customers, the prop-
osition is fair quality for a transparent price. Brands that
communicate a clear price/value proposition, whether high
or low, are well positioned for future growth.
Some of the worlds fastest-growing brands have been built
by personalizing technology. The rise in value of Google, the
worlds frst $100bn brand, along with Apple, BlackBerry
and Amazon, is amazing. All these brands are delivering an
experience that is not only easy, friendly and fun to use, but
totally customised to each user.
worldwide View
Finally, there are great advantages in being global. While
there are still brands in the Top 100 whose value is mostly
created in one country, they are fewer this year. In some
ways, this is surprising. It is relatively easy to build strong
connections with customers in one geography; it is much
more diffcult to create a brand ideal that resonates across
different countries and cultures. Brands with global reach
are doing well because, if they get the proposition right,
their potential is much greater. And, in a recession, they
spread the risk.
Three key fndings on communications strategy are illus-
trated by the campaigns of this years BrandZ most valuable
brands (see Habits of highly successful brands, below).
The importance of valuing brands stretches far beyond a
ranking of the most valuable. Studying the best brand value
builders can be a source of learning, which can then be
applied to inspire and support other brands in development
of brand, marketing and business strategies that will do the
most to increase the companys fnancial value.
habits of highly successful brands
n The best brand value builders do not talk at their consumers, but
invite them to communicate with their brands. Neither Googles
branding nor its products are ever fnished, but offered up to its
users to play with and improve on.
n The most successful brands engage their consumers in exciting
encounters. They devote a larger portion of their marketing bud-
gets to non-traditional communications than run-of-the-mill
brands. Red Bull, a new entrant into this years Top 100, spends a
large part of its budget on events, held around the world, in which
consumers compete to demonstrate home-made machines. The
most famous of these, the homemade fying machines, are a lit-
eral illustration of the brand message: Red Bull gives you wings.
n In addition to these non-traditional activities, the most valuable
brands continue to spend a large portion of their budgets on tradi-
tional advertising. In this, however, they take an integrated marketing
communications (IMC) approach. They speak with one voice across
all their different activities from TV and print to billboards, retail,
events, internet and social networking. The consistency of Apples
messaging across all forms of communications is a good example.
180
70% of people preferred video ads before content to be
30 seconds, while only 30% preferred a 15-second pre-
roll ad with another 15-second ad in the middle of the on-
line content.
People seem open to online video ads, so there may be
an opportunity for marketers to create an enjoyable brand
experience using video. The trick is fnding the optimal
length and best format to achieve your brand goals. In one
example from a recent study for a retail brand, Millward
Brown and Dynamic Logic compared three online video
ad formats in-text, in-banner and pre-roll in three
lengths: 5, 15 and 30 seconds. The key fndings were that
15 seconds was the optimal length for a pre-roll ad; people
who were exposed to the 15-second ads had the highest
level of brand association. Five-second ads had the lowest
level of cut-through, while 30-second ads were the most
persuasive but worked best when the user initiated play-
back. Certainly the better the creative quality, the better the
performance for this length.
The catch-all term online video embraces TV programmes
and content, user-generated videos, viral ads and the TV-
like ads that appear before content in a player such as 4oD.
Brands are still grappling with the best way to utilise online
video ads. How long should they be? What formats work
best to communicate your brand messages?
Consumer perceptions of video tend to be favourable com-
pared to other online formats. Based on Dynamic Logics
AdReaction survey of 357 people in the UK, one in four
(26%) rated online video ads very or somewhat positive,
behind banners (33%) and ads with moving images (29%).
Opinions of online video ads vary depending on whether
the ad appears before, during or after the content.
When asked what length of video ad theyd be willing to
watch if it appeared before, during or after a fve-minute
clip, people seemed to be more tolerant of longer ads
appearing before or after the content, while the majority
didnt want to be interrupted by long ads in the middle.
AnAlyst speAk:
Finding the Best Length for Online
Video Ads Needs Further Research
by Chri st i nA GoodmAn, heAd of GlobAl mArket i nG And busi ness development, dynAmi C loGi C
This article previously appeared in the May 14, 2009 edition of New Media Age, www.nma.co.uk.
While we know that different video formats can impact brand metrics differently, more research is needed to answer
complicated questions around the optimal length and most effective format for online video.
49%
76%
50%
15%
5%
12%
11%
5%
9%
n before clip n during clip n After clip
up to 5 seconds
15 seconds
30 seconds
ChArt 1
Source: Dynamic Logic
viewers preferred length for video ad with 5-minute clip
181
70% of people preferred video ads before content to be
30 seconds, while only 30% preferred a 15-second pre-
roll ad with another 15-second ad in the middle of the on-
line content.
People seem open to online video ads, so there may be
an opportunity for marketers to create an enjoyable brand
experience using video. The trick is fnding the optimal
length and best format to achieve your brand goals. In one
example from a recent study for a retail brand, Millward
Brown and Dynamic Logic compared three online video
ad formats in-text, in-banner and pre-roll in three
lengths: 5, 15 and 30 seconds. The key fndings were that
15 seconds was the optimal length for a pre-roll ad; people
who were exposed to the 15-second ads had the highest
level of brand association. Five-second ads had the lowest
level of cut-through, while 30-second ads were the most
persuasive but worked best when the user initiated play-
back. Certainly the better the creative quality, the better the
performance for this length.
The catch-all term online video embraces TV programmes
and content, user-generated videos, viral ads and the TV-
like ads that appear before content in a player such as 4oD.
Brands are still grappling with the best way to utilise online
video ads. How long should they be? What formats work
best to communicate your brand messages?
Consumer perceptions of video tend to be favourable com-
pared to other online formats. Based on Dynamic Logics
AdReaction survey of 357 people in the UK, one in four
(26%) rated online video ads very or somewhat positive,
behind banners (33%) and ads with moving images (29%).
Opinions of online video ads vary depending on whether
the ad appears before, during or after the content.
When asked what length of video ad theyd be willing to
watch if it appeared before, during or after a fve-minute
clip, people seemed to be more tolerant of longer ads
appearing before or after the content, while the majority
didnt want to be interrupted by long ads in the middle.
AnAlyst speAk:
Finding the Best Length for Online
Video Ads Needs Further Research
by Chri st i nA GoodmAn, heAd of GlobAl mArket i nG And busi ness development, dynAmi C loGi C
This article previously appeared in the May 14, 2009 edition of New Media Age, www.nma.co.uk.
While we know that different video formats can impact brand metrics differently, more research is needed to answer
complicated questions around the optimal length and most effective format for online video.
49%
76%
50%
15%
5%
12%
11%
5%
9%
n before clip n during clip n After clip
up to 5 seconds
15 seconds
30 seconds
ChArt 1
Source: Dynamic Logic
viewers preferred length for video ad with 5-minute clip
182
In 2004, Martin Lindstroms book Brand Child was pub-
lished based on Millward Brown global research. We
decided to investigate if there were any differences between
the children surveyed for the book research and Czech
children. Every two years we have repeated, extended and
altered the study. So what do the results of the study tell us
about Czech children?
Currently 20 percent of the Czech population is under
the age of 20. This group infuences their parents shop-
ping behavior, watches advertising with great interest and is
familiar with the digital world. This generation was born into
the world of modern marketing, yet is often neglected in
market research. But these children are important; they
have an opinion, they have their own money and therefore
are a group with considerable purchasing power.
By Petra Pr

uov, Managi ng Di rector of Mi llwarD Brown czech rePuBli c anD chai rPerson of si Mar
internet penetration is growing most signifcantly among kids under 10 years old.
has internet access:
0%
total (Base 718 yrs.) 11 14 years 7 10 years 15 18 years Boys girls
100%
80%
60%
40%
20%
n 2006 n 2008
Who Are Our Children, Really?
69
89
97
88
85
75
52
81
93
76
82
75
This article previously appeared in the June 15, 2009 edition of Strategie, www.strategie.cz.
figure 1
they are the frst truly online generation
A st udy by Mi l lwArd br own f ocus e s on An of t e n- ne gl e ct e d but e ve r More
i MportAnt tArge t gr oup
Penetration of mobile phones and the Internet is higher in
this group than among adults. Virtually every person over
10 years of age has access to the Internet. Mobile phones
are also very common half of children under 10 and
85% of 10-15 year-olds own a mobile phone. And they use
the Internet a lot not only as a source of information
and to send emails, but also to play online games, chat and
download games, software, music and flms.
the financial Power of czech chilDren
Czech children and teens between the ages of 7 and 18 are
a group with increasing purchasing power. 95% of children
receive pocket money or are given money. The fve percent
that do not receive money tend to be the youngest. Com-
pared to 2004, the share of 7-14 year-olds receiving regular
pocket money has not changed, but the amount received
has. Two years ago the average amount of pocket money
for 7-18 year-olds was CZK 484 per month. It is now CZK
733 per month. This increase has occurred in all age groups.
High-school students now receive an average of CZK 1,000
a month and 70% also receive additional funds for school,
activities, Christmas, on their name day, or on their birthday.
Most parents also reward their children for good results at
school and for completing household chores.
What do children spend their money on? Most make their
own purchase decisions. Only 13% must frst ask for paren-
tal permission before they buy something and these are
mostly the youngest children.
The youngest children (under 10) tend to spend their
money on sweets, drinks, magazines and toys. Older boys
spend more on sports and sports equipment, mobile
telephony and PC accessories, video games and PC games.
Fashion is more important to older girls, so they spend
more on cosmetics, clothing and footwear. As childrens
age increases, so does their interest in anything connected
to music such as concert and event tickets, as well as
mobile phone top-up vouchers. Older teenagers also buy
food more often (mostly fast food). This could be a source
of inspiration for marketers.
Kids not only decide what to spend their own money on,
they also infuence family purchases. They usually decide
which entertainment venue the family goes to and often
have the fnal say when their parents buy things for them,
such as clothing, footwear and (for older boys) sports
equipment. In 50% of cases, children also infuence what
food and drink are purchased.
The infuence of children on family shopping increases with
their age, but is also differentiated by sex. Girls are mainly
interested in cosmetics, food and household cleaning
products, whereas boys are more likely to infuence the
electronic items such as hi-f equipment, mobile phones,
PCs and TVs.
MeDia anD aDvertising
Children love adverts; they recognize many ads and talk
about them. It is evident that kids prefer ads targeted at
adults and adolescents. They do not have any special pref-
erence for ads aimed at children and even fnd ads for
alcohol appealing (Fernet, Gambrinus). The most popular
Czech ads in the last year include mobile operators cam-
183
In 2004, Martin Lindstroms book Brand Child was pub-
lished based on Millward Brown global research. We
decided to investigate if there were any differences between
the children surveyed for the book research and Czech
children. Every two years we have repeated, extended and
altered the study. So what do the results of the study tell us
about Czech children?
Currently 20 percent of the Czech population is under
the age of 20. This group infuences their parents shop-
ping behavior, watches advertising with great interest and is
familiar with the digital world. This generation was born into
the world of modern marketing, yet is often neglected in
market research. But these children are important; they
have an opinion, they have their own money and therefore
are a group with considerable purchasing power.
By Petra Pr

uov, Managi ng Di rector of Mi llwarD Brown czech rePuBli c anD chai rPerson of si Mar
internet penetration is growing most signifcantly among kids under 10 years old.
has internet access:
0%
total (Base 718 yrs.) 11 14 years 7 10 years 15 18 years Boys girls
100%
80%
60%
40%
20%
n 2006 n 2008
Who Are Our Children, Really?
69
89
97
88
85
75
52
81
93
76
82
75
This article previously appeared in the June 15, 2009 edition of Strategie, www.strategie.cz.
figure 1
they are the frst truly online generation
A st udy by Mi l lwArd br own f ocus e s on An of t e n- ne gl e ct e d but e ve r More
i MportAnt tArge t gr oup
Penetration of mobile phones and the Internet is higher in
this group than among adults. Virtually every person over
10 years of age has access to the Internet. Mobile phones
are also very common half of children under 10 and
85% of 10-15 year-olds own a mobile phone. And they use
the Internet a lot not only as a source of information
and to send emails, but also to play online games, chat and
download games, software, music and flms.
the financial Power of czech chilDren
Czech children and teens between the ages of 7 and 18 are
a group with increasing purchasing power. 95% of children
receive pocket money or are given money. The fve percent
that do not receive money tend to be the youngest. Com-
pared to 2004, the share of 7-14 year-olds receiving regular
pocket money has not changed, but the amount received
has. Two years ago the average amount of pocket money
for 7-18 year-olds was CZK 484 per month. It is now CZK
733 per month. This increase has occurred in all age groups.
High-school students now receive an average of CZK 1,000
a month and 70% also receive additional funds for school,
activities, Christmas, on their name day, or on their birthday.
Most parents also reward their children for good results at
school and for completing household chores.
What do children spend their money on? Most make their
own purchase decisions. Only 13% must frst ask for paren-
tal permission before they buy something and these are
mostly the youngest children.
The youngest children (under 10) tend to spend their
money on sweets, drinks, magazines and toys. Older boys
spend more on sports and sports equipment, mobile
telephony and PC accessories, video games and PC games.
Fashion is more important to older girls, so they spend
more on cosmetics, clothing and footwear. As childrens
age increases, so does their interest in anything connected
to music such as concert and event tickets, as well as
mobile phone top-up vouchers. Older teenagers also buy
food more often (mostly fast food). This could be a source
of inspiration for marketers.
Kids not only decide what to spend their own money on,
they also infuence family purchases. They usually decide
which entertainment venue the family goes to and often
have the fnal say when their parents buy things for them,
such as clothing, footwear and (for older boys) sports
equipment. In 50% of cases, children also infuence what
food and drink are purchased.
The infuence of children on family shopping increases with
their age, but is also differentiated by sex. Girls are mainly
interested in cosmetics, food and household cleaning
products, whereas boys are more likely to infuence the
electronic items such as hi-f equipment, mobile phones,
PCs and TVs.
MeDia anD aDvertising
Children love adverts; they recognize many ads and talk
about them. It is evident that kids prefer ads targeted at
adults and adolescents. They do not have any special pref-
erence for ads aimed at children and even fnd ads for
alcohol appealing (Fernet, Gambrinus). The most popular
Czech ads in the last year include mobile operators cam-
184
paigns (T-Mobiles Bushes and Match-making ad and Voda-
fones Gnome and ads featuring actor

Ctvrtn cek), and food

and drink (Mattoni, a Muller Mix yoghurt). Komer cn bankas
campaign Frozen mortgage was also popular.
If we summed up the most important attributes of ads
that appeal to children, they would be similar to those
that appeal to 20 year-olds; they appreciate humor
often black humor interesting music, adventure, action,
and surprise.
It is important to note that childrens media habits are
changing. An increasing number of children have a TV in
their room so they decide what to watch. Childrens tastes
are also changing; instead of watching bedtime stories,
school children now watch soap operas. TV has replaced
other activities, such as playing outside with their friends
so children can spend a long time in front of the TV. The
Internet plays an increasingly important role in kids lives
and is a substitute for books as a source of information. The
popularity and affnity of the Internet are even higher than
of TV, and unlike TV and mobile phones its indispensability
is increasing.
Although children today are technologically advanced,
make their own decisions, know what they want and have
the money to buy it, watch TV shows for adults and browse
the internet however they want, they still are children.
Marketers should not forget that.
185
paigns (T-Mobiles Bushes and Match-making ad and Voda-
fones Gnome and ads featuring actor

Ctvrtn cek), and food

and drink (Mattoni, a Muller Mix yoghurt). Komer cn bankas
campaign Frozen mortgage was also popular.
If we summed up the most important attributes of ads
that appeal to children, they would be similar to those
that appeal to 20 year-olds; they appreciate humor
often black humor interesting music, adventure, action,
and surprise.
It is important to note that childrens media habits are
changing. An increasing number of children have a TV in
their room so they decide what to watch. Childrens tastes
are also changing; instead of watching bedtime stories,
school children now watch soap operas. TV has replaced
other activities, such as playing outside with their friends
so children can spend a long time in front of the TV. The
Internet plays an increasingly important role in kids lives
and is a substitute for books as a source of information. The
popularity and affnity of the Internet are even higher than
of TV, and unlike TV and mobile phones its indispensability
is increasing.
Although children today are technologically advanced,
make their own decisions, know what they want and have
the money to buy it, watch TV shows for adults and browse
the internet however they want, they still are children.
Marketers should not forget that.
Perhaps the catalyst was the Internet, whose evangelists
screamed the end is nigh! for TV and talked of engagement
versus interruption, true measurability and the long tail.
Perhaps the advent of PVRs made the TV world wobble.
Maybe the recession has made the hunt for effciencies
keener. Whatever the cause, the multimedia debate has
been invigorated and the demand for evaluation has grown.
It has been rare for any non-TV media owner to suggest
that one should use them as sole medium. While some past
studies were used to demonstrate that, pound for pound,
they could deliver at least as much, and maybe more im-
pact on a range of measures, the frst among these equals
remained TV, with its wider distribution advantage. Multime-
dia arguments were generally about adding other media to
TV and how much of the TV budget should be reallocated
to which other media. Until a few years ago, TV remained a
dominant part of media budgets and was used at heavy
weights, seemingly in preference to going multimedia.
One common output of a growing body of multimedia
evaluation work is independent and empirical evidence that
multiple media works better than a single media for anything
from building brand and advertising awareness to changing
brand attitudes or activating a sale. While the dominance
of TV has been tempered by this, it is also no longer un-
fashionable to suggest that TV remains very important in its
ability to work alone, but also to provide a backdrop against
which other media can be more effective.
Contributions aCross media
Figure 1 summarises fndings from some recent modelling
studies, which represent what we see to be the case gen-
erally. The chart shows what TV delivers on its own and
what other media add on to this to drive certain desired
outcomes. The two FMCG bars show TV accounting for 60-
70% of the uplifts in terms of brand attitudes and advertis-
ing awareness. Other media (including newspapers, radio,
Internet and sampling) added 30-40%. The car example is
a launch in a European country, where we focused on what
was driving consideration. The other media in this case (car
magazines and the Internet) accounted for around 45% of
the overall effect.
Maximising Media Synergy for Cost-
Effective Brand Building
by sue el ms, exeCut i ve vi Ce Presi dent & James Gal Pi n, seni or vi Ce Presi dent,
Global medi a PraCt i Ce, mi l lward brown
This article previously appeared in the July/August 2009 edition of Admap, www.admapmagazine.com.
T e l e vi s i on i s sT i l l ki ng, buT f i ndi ng T he ri ghT mi x of oT he r me di a To
compl e me nT i T i s cri T i cal To a campai gn s r oi
186
The main aim of this article is to remind strategists and
planners of the mechanisms they can employ to more
cost-effectively increase the brand-building returns for
their clients. We will run through some examples of syn-
ergy in action, where synergy is defned broadly as multiple
entities co-operating advantageously for a fnal outcome.
This encapsulates the economic argument, which some-
times gets missed.
In its broadest sense, synergy is about fnding ways to
achieve more overall campaign impact for your money by
exploiting multiple media opportunities.
There are several ways in which a multimedia campaign
can deliver synergistic benefts beyond those from a single
media campaign. They include increased distribution of ex-
posures through reach and frequency, media interaction ef-
Despite TVs importance in terms of overall impact in these
examples, the relative cost effciency in terms of generating
uplifts was less than the other media. So there is evidence
that we could have got more value out of our campaign
investment by moving some money from TV into other
media (Figure 2).
To work out how best to redeploy our investment, we need
to fully understand the mechanics of multimedia effects,
so we can better exploit the opportunities they provide to
improve our campaign return on investment in future.
These benefts are generally talked about as synergy, but
what does this mean? It is not enough to say TV plus press
worked better than TV alone. Unless we tease apart the
forms of synergy in a meaningful way, we cannot optimise
and make good budget allocation decisions.
impact of tv advertising relative to other media
Relative contribution of TV versus other media to campaign uplifts
relative cost effciency of tv advertising versus other media
Uplift in brand metric per million euros invested
Using more, varied channels is a good strategy, as we see brand
building benefts from communicating on multiple platforms
Campaign performance would be improved by greater use of
multimedia opportunities in all these cases
40% 60%
30% 70%
45% 55%
0 0.5 1 1.5 2
FmCG brand
average attitude
FmCG impulse
brand image
FmCG brand ad
awareness
FmCG brand
awareness
Car model launch
consideration
Car model launch
consideration
n tv alone n other media
n other media n tv alone
Source: Millward Brown CrossMedia Research
TM
, case study database
Source: Millward Brown CrossMedia Research
TM
, case study database
using tv with other media
Cost effciency
FiGure 1
FiGure 2
187
3 6 6 9 9 12 Keeps growing
John Faase and Nick Hiddleston put it nicely in their paper
at the Esomar Print Audience Measurement Conference in
June 2002, when they said careful deployment of mixed
media will often create a way to buck diminishing returns
and reinvigorate the response curve.
Use of multimedia can also help by increasing the maxi-
mum effective frequency level for the overall campaign.
The incremental effect of another exposure in any medium
varies depending on the total number of exposures already
received. The maximum effective frequency is that at which
a further exposure adds little further impact. We typically
fnd the incremental shift on a band metric due to an
additional exposure is represented by a diminishing return
curve as the frequency of exposure increases. We observe
an S curve, but a standard diminishing return is more
common (Figure 3).
fects and impacting different areas of the brand. Some are
such natural, assumed elements in the context of multime-
dia planning that they are often taken for granted. But they
typically underpin the rationale for any multimedia invest-
ments, so it is important to overtly recognise their value.
inCreased messaGe distribution
Increasing reach cost-effectively is possibly the most obvi-
ous multimedia beneft. All media have a fnite number of
people within a population they can readily deliver. Even
widely broadcast media, such as TV, will have a signifcant
proportion of light viewers with whom it will be hard to
achieve more than minimal contact through this medium
alone. This is where using mixed media can access a
broader range of people.
n Campaign
n tv wave 1
n digital
n outdoor wave 1
FiGure 3
media mix helps reduce diminishing returns
diminishing return by campaign and media for food and drink campaign
% of maximum impact at different OTS
optimum frequency range by medium and campaign
The media
mix is helping
to reduce
diminishing
returns from
over-use
of any one
media. This
allows the
campaign to
build effect
for longer
Source: Millward Brown CrossMedia Research
TM
case study, Europe FMCG
0%
100%
80%
90%
40%
50%
20%
10%
30%
60%
70%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
188
it is possible to manipulate this ratio through targeting and
buying practices, it is important in evaluations to separate
the relative effects of the two.
media interaCtion eFFeCts
Using a number of different connections can increase re-
sponse due to duplicated frequency. The big question is:
what is this frequency actually doing? This could just be
frequency effciencies, as we have described above. How-
ever, what we hope for is some form of interaction effect.
We are looking for a situation where:
One exposure in medium A gives us an uplift in our key
brand metric of: +1%
One exposure in medium B also gives us an uplift of:
+1%
But one exposure in each of both media A and media
B gives us an uplift of: +3% ie, 1% more uplift than
the sum of the two media parts, or more than two ex-
posures in either medium A or medium B (Figure 4).
There are two main ways that this effect can arise. It could
be a magnifying effect due to an increase in the impact
of the message by communicating it through different
contexts coincidentally. Or it could be a resonance effect,
where prior exposure to one media helps a second me-
dium to perform better. In this latter case, the phasing of
media is critical, but it is less important in the former.
With a magnifying effect, one would seek to duplicate ex-
posures across media and probably cluster them in time to
essentially pummel at a persons perceptions. For a reso-
We have also observed that, when maximum effective fre-
quency is reached in one medium, an additional exposure
in a second medium will often add signifcant additional ef-
fect. This is probably because talking to people in a different
media context cuts through in a different way to the frst.
Lets assume medium A has a maximum effective frequency
of 10 for the campaign period as a whole. Then, as long as
we only use that medium, our maximum campaign effec-
tive frequency is also 10. But if we take the wasted invest-
ment in 11+ exposures from medium A and invest that in
medium B, with a maximum effective frequency of 5, then
our maximum campaign effective frequency increases to 15.
While each additional exposure in any medium trends to-
wards adding less and less impact, the cost per impression
will remain largely the same. More exposures in all me-
dia will trend towards increasing cost ineffciency. This will
mean that there will always be a point where an additional
exposure to the frst medium will not be as cost-effcient
as a frst exposure in a second medium. At that point, it is
better to switch investment to the second one (or save the
money), rather than putting more money in the frst even
if it adds no reach to our original activity.
Building campaign reach and effective frequency are heav-
ily interrelated. It is likely that adding a second medium to a
campaign will get you extra reach among light/non-users of
your frst medium. It will also probably add some extra effect
by speaking to people already heavily exposed to your frst
medium an extra time in a different media context. Since
189
nance effect, one would deliberately phase media so that
the target audience is primed by the base or trigger me-
dium before you follow up with the resonating media.
In reality, while it is possible to measure the presence of
an interaction effect through cross-media research, it is
almost impossible to decipher if it is either a magnifying or
a resonance effect using market evaluation. This is because,
if all media are running coincidentally in the campaign we
are evaluating, we cannot determine which media any one
respondent would have seen frst. So we cannot assess if
one medium depends on another to work well, or if they
are just mutually reinforcing. Equally, if the media plan is
phased so that media B follows media A, we still do not
know if any interaction effect may have happened just as
well as if media B came before media A (a magnifying,
rather than a resonance effect). Reviewing, or testing, cre-
ative relationships will often help here.
In the automotive example above, both TV and the other
media were linked in theme, but each creative treatment
made sense on a standalone basis. None of them seemed
to depend on further context from the other activities. So
in this case, we hypothesised that this interaction effect was
more of a magnifying effect. Thus, they are probably best
phased together.
We found that a toothpaste brand successfully used a reso-
nance approach for one of its products. A national burst of
TV advertising was followed by a burst of radio in one re-
gion, using sound cues based around the brands TV activ-
ity. After the TV campaign had fnished, ad awareness was
the same everywhere but, after the radio burst, that region
showed a further 13 percentage points growth in awareness
for an additional investment that would have only bought
about another 30 TV GRPs.
However, in another brand campaign, we found one media
had almost no impact. It was used alongside TV at the
start of the campaign. But we identifed that the creative
only made sense if people had seen the TV ad. We hy-
pothesised that, if this medium had been phased after the
TV, a resonance interaction with the TV activity may have
activated this medium.
% of shift in consideration
interaction synergy
online
magazines
13%
9%
30%
48% tv
interaction effect
FiGure 4
interaction effect measured in an automotive campaign
Share of overall shift in consideration by media
Source: Millward Brown CrossMedia Research
TM
case study, automotive launch, Europe
Interaction synergy between media has added 13% to overall
campaign impact
190
can be better targeted, innovative ideas may offer a unique
engagement opportunity, or the creative expression of the
brand idea just sings.
aCtivatinG diFFerent brand drivers
Different creative/content in different media can push
different attitudinal buttons that together (to different
extents) link to key performance indicators (such as pref-
erence and consideration) for brand building. In terms of
cost-effective brand building, this is possibly one of the
most common and useful, but less targeted, forms of
media synergy (Figure 5).
People tend to talk about the value of multimedia on a
single metric, such as brand awareness, advertising aware-
ness or sales. However, even when there is a strong,
coherent linking theme running through all creative
executions, we often see that one medium pushes brand
metric A, while medium two pushes brand metric B.
Assuming we also know that some people will buy this
brand largely due to brand metric A, and others largely
due to brand metric B (path modelling, linking movement
in brand attitudes to movements in sales, can identify this),
we would limit our overall effectiveness if we only focused
on one medium. There will be a limit to the number of
people we can persuade based on A or B alone and we
will hit a level of maximum impact using just one. There
will, therefore, potentially be scope for further synergistic
benefts in terms of our media budget by using both
media, rather than just one.
manaGinG synerGy
There are obvious reasons to use multimedia and choose
the individual media within it. With certain media, more
information can be conveyed, stages in the purchase cycle
digital newspaper
brand attribute a
rational
0.6 0.9
experiential perception
fresh
3.8 0.9
brand attribute b
rational
1.7 0
brand attribute C
rational
3.5 7.6
brand attribute d
rational / emotional
5.6 4.6
experiential perception
sweet
2.6 2.5
brand attribute e
rational
1.4 3.4
brand attribute F
rational
1.0 2.3
brand attribute G
emotional
2.3 4.1
brand attribute
range and variety
0.6 1.3
differential impacts
FiGure 5
Source: Millward Brown CrossMedia Research
TM
case study, UK FMCG impulse purchase
% impact on key brand perceptions per 1m spend
digital and newspaper advertising have differential
impacts on brand image metrics
Campaign has broader impact due to differential impact of media
on different areas of the brand
Shading indicates biggest
media effect
191
The performance of individual ads can vary enormously,
where the best performing ads need no leg-up from
frequency or premium environment. A great brand idea
should be able to sing everywhere, and that, combined
with great content, should mean each media execution is
strong enough to stand alone with no need for interaction
effects. As such, multimedia can simply be used additively
as a distribution channel favouring the combination that
most cost-effectively builds reach. But the real world is not
like this.
A great way to anticipate and plan for this is to conduct
multimedia pre-testing. Some interesting cross-media
insights have come from pre-test, forced exposure, experi-
mental, laboratory-style circumstances. Using pre-tests,
one can check out things such as whether the content and
media are working together in a resonating or magnifying
way, and whether they are hitting different, useful parts of
the brand. With extra investment, one can check out the
effects of frequency in one media versus adding another
media, and so on.
It is also important to post-evaluate multimedia campaigns
to understand the impact of the mechanics described here
on the fnal brand outcomes (versus advertising outtakes).
In a recent crossmedia evaluation, we found that 45% of
the overall budget was spent ineffciently, clearly offering
potential for future improvement. The ineffciencies were
caused primarily by unnecessarily heavy TV, considering
the other media being used, and the deployment of a large
resonate activity far too soon.
The only way to accurately post-evaluate this sort of cam-
paign and disentangle the insight is respondent-level mod-
elling at an exposure level (to capture reach, frequency and
duplication of exposure) using data that has been tracked
before, during and after the campaign (to capture change,
decay and account for pre-disposition/purchase-viewing
bias), with real client cost data (to test true effciencies).
This is best practice.
In the end, it is important to have a sensible view about
the role for each part of the mix, ideally supported with
empirical evidence. This should help to drive a more opti-
mal deployment of budget for more cost-effective brand
building. In cashstrapped and complex times, this has to
be worth the research investment.
192
In his autobiography, My Life and Work, Henry Ford once
famously wrote: Any customer can have a car painted any
colour as long as it is black. In the 80 years since this was
written, thinking has moved on. Companies now attempt to
divide their customers into smaller groups with similar at-
titudes and buying habits and tailor both their offer and
how they promote it with these sub-groups in mind.
Perhaps it is surprising then that according to a 2004 re-
port, while 60 per cent of large companies had conducted
a major segmentation in the previous two years, only 14 per
cent had derived any real value from it. Too often segmen-
tation studies can be theory-led and tell you the blindingly
obvious, or exploratory rather than objective-driven. All too
often they are not designed around real business issues,
and are rarely adopted throughout the organisation.
Good segmentation can have a huge impact on corporate
success, giving clear direction to your business, product de-
velopment and positioning.
How can segmentation be a positive and useful experi-
ence? In this supplement, we suggest 10 ways to ensure
that your segmentation will have the right impact.
1. START WITH THE END IN SIGHT
You could be wishing to segment your market for any one
of a number of reasons. Before you start any segmenta-
tion exercise you need to be clear about what purpose (or
purposes) it is to be used for, how it will be used, by whom,
and in what context.
Do you want to infuence product development strategy?
Segmentation can help you to defne your target customer,
indication and product profle down to your clinical trial
endpoints.
Do you wish to develop a positioning for a product prior
to launch? Segmentation can help you to understand not
just the clusters that potential customers fall into, but how
to allocate individuals to a segment, and where and how to
communicate with them.
On the other hand, you may not yet be a player in a market,
but want to establish if there are segments with unmet
needs that can be targeted by R&D. What are the practical
and attitudinal needs of the patients in each segment; how
willing are they to take a pharmaceutical product for their
condition?
10 Ways to Ensure an Actionable
Segmentation
A pRAcT I cAl GuI DE
This article previously appeared in the July 2009 edition of Pharmaceutical Marketing Europe,
a PMGroup publication, www.pmlive.com.
by Al I SoN GoRE, AmANDA HERbERT AND cAT Hy SWI f T, mI l lWARD bRoWN
The right combination of stakeholders and experts will
help you to generate initial hypotheses to frame the seg-
mentation project. You may be surprised by what the team
already knows. Its always a good idea to have a clear and
agreed direction but, naturally, the team needs to remain
open-minded throughout the process.
3. WHoSE NEEDS ARE THEy, ANyWAy?
Lets say that your objective is to segment the metastatic
colorectal cancer (mCRC) market according to patient
needs should you ask patients about their own needs, or
correspondence map plotting the relationship
between typologies
It is essential that both client and agency are clear about
precisely what the segmentation is going to be used for
before the real work begins.
2. START WITH THE RIGHT TEAm
Market segmentation research can be both time consum-
ing and costly. If you want your segmentation solution to
be adopted throughout your organisation you need to
ensure that the right people are engaged in the project
from the outset.
Ideally, the agencys segmentation experts should be
involved from the word go as soon as the agency
receives your brief. This gives them the best chance of
asking the client questions directly. A deep understanding
of the business need for segmentation enables them to
work with you to achieve the optimal solution.
Involving your internal stakeholders not only ensures that
their needs and knowledge are captured but, importantly,
it also gives them a sense of ownership and belief in the
process and its results.
Consider engaging external experts perhaps a key
opinion leader, an infuential physician, a patient, a carer,
a payer. Market research-savvy physicians can be ex-
tremely helpful in providing advice about how to craft a
questionnaire in such a way as to make the exercise easier
and more enjoyable for respondents, and this will help to
ensure data quality.
conventional/
Standard
New/
Different
Disease
T
r
e
a
t
m
e
n
t
passive Active
In denial
20%
Disillusioned
and defeated
13%
Worried
control
seekers
21%
optimistic
fghters
17%
Strong
embracers
29%
Source: Millward Brown Healthcare mCRC segmentation study
fIGuRE 1
193
In his autobiography, My Life and Work, Henry Ford once
famously wrote: Any customer can have a car painted any
colour as long as it is black. In the 80 years since this was
written, thinking has moved on. Companies now attempt to
divide their customers into smaller groups with similar at-
titudes and buying habits and tailor both their offer and
how they promote it with these sub-groups in mind.
Perhaps it is surprising then that according to a 2004 re-
port, while 60 per cent of large companies had conducted
a major segmentation in the previous two years, only 14 per
cent had derived any real value from it. Too often segmen-
tation studies can be theory-led and tell you the blindingly
obvious, or exploratory rather than objective-driven. All too
often they are not designed around real business issues,
and are rarely adopted throughout the organisation.
Good segmentation can have a huge impact on corporate
success, giving clear direction to your business, product de-
velopment and positioning.
How can segmentation be a positive and useful experi-
ence? In this supplement, we suggest 10 ways to ensure
that your segmentation will have the right impact.
1. START WITH THE END IN SIGHT
You could be wishing to segment your market for any one
of a number of reasons. Before you start any segmenta-
tion exercise you need to be clear about what purpose (or
purposes) it is to be used for, how it will be used, by whom,
and in what context.
Do you want to infuence product development strategy?
Segmentation can help you to defne your target customer,
indication and product profle down to your clinical trial
endpoints.
Do you wish to develop a positioning for a product prior
to launch? Segmentation can help you to understand not
just the clusters that potential customers fall into, but how
to allocate individuals to a segment, and where and how to
communicate with them.
On the other hand, you may not yet be a player in a market,
but want to establish if there are segments with unmet
needs that can be targeted by R&D. What are the practical
and attitudinal needs of the patients in each segment; how
willing are they to take a pharmaceutical product for their
condition?
10 Ways to Ensure an Actionable
Segmentation
A pRAcT I cAl GuI DE
This article previously appeared in the July 2009 edition of Pharmaceutical Marketing Europe,
a PMGroup publication, www.pmlive.com.
by Al I SoN GoRE, AmANDA HERbERT AND cAT Hy SWI f T, mI l lWARD bRoWN
The right combination of stakeholders and experts will
help you to generate initial hypotheses to frame the seg-
mentation project. You may be surprised by what the team
already knows. Its always a good idea to have a clear and
agreed direction but, naturally, the team needs to remain
open-minded throughout the process.
3. WHoSE NEEDS ARE THEy, ANyWAy?
Lets say that your objective is to segment the metastatic
colorectal cancer (mCRC) market according to patient
needs should you ask patients about their own needs, or
correspondence map plotting the relationship
between typologies
It is essential that both client and agency are clear about
precisely what the segmentation is going to be used for
before the real work begins.
2. START WITH THE RIGHT TEAm
Market segmentation research can be both time consum-
ing and costly. If you want your segmentation solution to
be adopted throughout your organisation you need to
ensure that the right people are engaged in the project
from the outset.
Ideally, the agencys segmentation experts should be
involved from the word go as soon as the agency
receives your brief. This gives them the best chance of
asking the client questions directly. A deep understanding
of the business need for segmentation enables them to
work with you to achieve the optimal solution.
Involving your internal stakeholders not only ensures that
their needs and knowledge are captured but, importantly,
it also gives them a sense of ownership and belief in the
process and its results.
Consider engaging external experts perhaps a key
opinion leader, an infuential physician, a patient, a carer,
a payer. Market research-savvy physicians can be ex-
tremely helpful in providing advice about how to craft a
questionnaire in such a way as to make the exercise easier
and more enjoyable for respondents, and this will help to
ensure data quality.
conventional/
Standard
New/
Different
Disease
T
r
e
a
t
m
e
n
t
passive Active
In denial
20%
Disillusioned
and defeated
13%
Worried
control
seekers
21%
optimistic
fghters
17%
Strong
embracers
29%
Source: Millward Brown Healthcare mCRC segmentation study
fIGuRE 1
194
should you ask oncologists? And what kind of needs are we
talking about attitudinal or practical needs? The answers
will depend to a large extent on the disease and whether it
is established or not, together with your business objective.
If a disease area is mature there is a strong argument for
conducting research with physicians, as they should be
knowledgeable about their patients needs. If your objec-
tive is to inform strategic product development you need to
ask the physician how he/she treats the patient, giving you
a set of patient situations, for example quick fx, enhance
life quality, patient preference.
To inform positioning you will need to ask the physician how
he/she perceives the patient, giving you a set of patient ty-
pologies, for example, strong embracers, disillusioned de-
featists. Looking at your market on both these bases gives
you different windows onto the same situation.
However, if the market you are interested in is relatively im-
mature, it is worth considering asking patients (or carers)
directly about their own attitudes and needs after all,
physicians simply may not know.
Whichever approach you decide is best, consider some
qualitative research to make sure that unmet needs as
expressed by both patients and physicians are included in
the segmentation questionnaire, as healthcare marketing
is peppered with examples of disconnects between patient
experiences and physicians perceptions of them.
4. HoW WAS IT foR you? opTImISING THE
RESpoNDENT EXpERIENcE
The old adage rubbish in, rubbish out is no less true
for segmentation research than for any other type. We
suggest that data quality can be optimised by ensuring
that completing the survey is as manageable as possible
for a respondent.
If, for example, you are gathering perceptions of patient un-
met needs through the eyes of physicians you will typically
ask each one to respond on behalf of a number of their
patients. We recommend keeping the number of patients
per physician to a manageable level in our mCRC study
we asked each oncologist in our sample to complete fve
patient records to avoid respondent fatigue, and to
maintain interest and quality of responses.
It might be challenging for a physician to respond on behalf
of a patient, especially if you are asking for softer infor-
mation, such as patients attitudes towards their disease,
impact on lifestyle, aspirations. You can make life easier for
your respondents by asking them to respond on behalf of
their next fve patients, rather than their last fve patients.
In this case physicians may be able to take the opportunity
to complete the records while they are with patients or
their carers, rather than having to rely on their impressions
and memories.
We found in our recent mCRC study that this approach led
to a shorter feldwork period than we had expected.
5. DIScRImINATING THE SEGmENTS
So, you have clarifed your objectives and you have
decided whether patients attitudinal or practical needs
are of greatest importance for your segmentation. But
your questionnaire needs to collect additional discriminat-
ing information that will help you to characterise and gain
greater insights into the patients in each segment. This
will be helpful, for example, in describing patients in your
target segments when communicating with physicians.
Such discriminating factors might include stage of disease,
access to private healthcare, availability of a support net-
work, prognosis, gender etc. We found that in mCRC, for
example, patient gender is a key differentiator women
are more likely to be embarrassed about having the
disease and frightened of losing their hair; men are more
likely to see cancer as a battle that needs to be taken on
and overcome.
Depending on how much you already know about the
disease area in question, it is well worth considering con-
ducting an initial phase of qualitative research to make
sure that you havent missed a potentially infuential angle
in the questionnaire.
The extent of the qualitative research will depend upon the
development of the market. Think: Do I need qualitative re-
search to inform me about patients needs? or Do I need
qualitative research to sense-check established thinking?
6. ASKING THE RIGHT QuESTIoNS IN THE
RIGHT WAy
Once you have drawn up the lists of attitudes and needs
statements for inclusion in your questionnaire, you must
decide how respondents will be asked to endorse them.
Scaled questions are useful for attitudes but not for needs,
where pulling apart the nuances of importance is essential.
Simple trade-off techniques such as Max-Diff can work in
this instance by sorting lists of, say, eight or more attributes
in their order of importance; however, Max-Diff wont help
you arrive at the best combination of treatment benefts.
Conjoint is more suitable for this purpose, as it not only
provides you with relative importance of product attributes
(effcacy, tolerability, dosage regimen, etc.), but allows you
to work out the optimum combination of specifc attributes
and levels (e.g., lower effcacy but with improved tolerability
and a reduced pill burden). There are many different con-
joint designs in the marketing scientists armamentarium,
and your agency will be able to explain their recommenda-
tion for one design over another.
While we believe completing a survey should be an agree-
able experience for respondents, you dont want to make
life too easy for them. We strongly advise against allowing a
dont know response on an agree/disagree scale. If there
are, say, 37 attitudinal questions in the questionnaire, but a
respondent answers dont know to just one question for
one patient, we cannot use any of their answers to any of
the remaining 36 questions for this patient. Therefore, re-
grettably, we lose one important patient from our data set.
195
should you ask oncologists? And what kind of needs are we
talking about attitudinal or practical needs? The answers
will depend to a large extent on the disease and whether it
is established or not, together with your business objective.
If a disease area is mature there is a strong argument for
conducting research with physicians, as they should be
knowledgeable about their patients needs. If your objec-
tive is to inform strategic product development you need to
ask the physician how he/she treats the patient, giving you
a set of patient situations, for example quick fx, enhance
life quality, patient preference.
To inform positioning you will need to ask the physician how
he/she perceives the patient, giving you a set of patient ty-
pologies, for example, strong embracers, disillusioned de-
featists. Looking at your market on both these bases gives
you different windows onto the same situation.
However, if the market you are interested in is relatively im-
mature, it is worth considering asking patients (or carers)
directly about their own attitudes and needs after all,
physicians simply may not know.
Whichever approach you decide is best, consider some
qualitative research to make sure that unmet needs as
expressed by both patients and physicians are included in
the segmentation questionnaire, as healthcare marketing
is peppered with examples of disconnects between patient
experiences and physicians perceptions of them.
4. HoW WAS IT foR you? opTImISING THE
RESpoNDENT EXpERIENcE
The old adage rubbish in, rubbish out is no less true
for segmentation research than for any other type. We
suggest that data quality can be optimised by ensuring
that completing the survey is as manageable as possible
for a respondent.
If, for example, you are gathering perceptions of patient un-
met needs through the eyes of physicians you will typically
ask each one to respond on behalf of a number of their
patients. We recommend keeping the number of patients
per physician to a manageable level in our mCRC study
we asked each oncologist in our sample to complete fve
patient records to avoid respondent fatigue, and to
maintain interest and quality of responses.
It might be challenging for a physician to respond on behalf
of a patient, especially if you are asking for softer infor-
mation, such as patients attitudes towards their disease,
impact on lifestyle, aspirations. You can make life easier for
your respondents by asking them to respond on behalf of
their next fve patients, rather than their last fve patients.
In this case physicians may be able to take the opportunity
to complete the records while they are with patients or
their carers, rather than having to rely on their impressions
and memories.
We found in our recent mCRC study that this approach led
to a shorter feldwork period than we had expected.
5. DIScRImINATING THE SEGmENTS
So, you have clarifed your objectives and you have
decided whether patients attitudinal or practical needs
are of greatest importance for your segmentation. But
your questionnaire needs to collect additional discriminat-
ing information that will help you to characterise and gain
greater insights into the patients in each segment. This
will be helpful, for example, in describing patients in your
target segments when communicating with physicians.
Such discriminating factors might include stage of disease,
access to private healthcare, availability of a support net-
work, prognosis, gender etc. We found that in mCRC, for
example, patient gender is a key differentiator women
are more likely to be embarrassed about having the
disease and frightened of losing their hair; men are more
likely to see cancer as a battle that needs to be taken on
and overcome.
Depending on how much you already know about the
disease area in question, it is well worth considering con-
ducting an initial phase of qualitative research to make
sure that you havent missed a potentially infuential angle
in the questionnaire.
The extent of the qualitative research will depend upon the
development of the market. Think: Do I need qualitative re-
search to inform me about patients needs? or Do I need
qualitative research to sense-check established thinking?
6. ASKING THE RIGHT QuESTIoNS IN THE
RIGHT WAy
Once you have drawn up the lists of attitudes and needs
statements for inclusion in your questionnaire, you must
decide how respondents will be asked to endorse them.
Scaled questions are useful for attitudes but not for needs,
where pulling apart the nuances of importance is essential.
Simple trade-off techniques such as Max-Diff can work in
this instance by sorting lists of, say, eight or more attributes
in their order of importance; however, Max-Diff wont help
you arrive at the best combination of treatment benefts.
Conjoint is more suitable for this purpose, as it not only
provides you with relative importance of product attributes
(effcacy, tolerability, dosage regimen, etc.), but allows you
to work out the optimum combination of specifc attributes
and levels (e.g., lower effcacy but with improved tolerability
and a reduced pill burden). There are many different con-
joint designs in the marketing scientists armamentarium,
and your agency will be able to explain their recommenda-
tion for one design over another.
While we believe completing a survey should be an agree-
able experience for respondents, you dont want to make
life too easy for them. We strongly advise against allowing a
dont know response on an agree/disagree scale. If there
are, say, 37 attitudinal questions in the questionnaire, but a
respondent answers dont know to just one question for
one patient, we cannot use any of their answers to any of
the remaining 36 questions for this patient. Therefore, re-
grettably, we lose one important patient from our data set.
196
Gender split of mcRc typologies
Unfortunately, most statistical software packages still dont
have a reliable method for coping with these missing values.
Many papers have been written about missing value analy-
sis, but at the moment we dont have the perfect solution.
It is not ideal to guess what a doctor would have answered
if forced to give an answer other than dont know. We want
to avoid assumptions and work with real data.
7. fuTuRE-pRoofING SEGmENTATIoN
Time to look forward then. Given the duration of the product
life cycle it is important to ensure that your segmentation is
going to be relevant in the future. Work with your internal
customers, and consider working with external partners, to
envisage scenarios whether related to future drug treat-
ment paradigms, economic trends, the changing regulatory
environment. Anticipate these when consolidating your
segmentation solution.
Best practice guidelines for segmentation research include
ensuring segment stability something which is important
within the pharmaceutical market where the segmentation
will be referred to for a number of years to come.
We advocate avoiding the use of K means clustering, which
is associated with instability, and instead use hierarchical
clustering. It is important that the segmentation will be easy
to replicate and update if desired.
8. THE bEST SoluTIoNS ARE A blEND of ART
AND ScIENcE
Your team will have started with a clear idea of where they
are headed following your initial hypothesis generation, but
we suggest you remain open-minded and be prepared to
accept that you may arrive at a different place.
Give the marketing scientists time to experiment with the
data for example, using different segmentation tech-
niques and adding in different discriminating factors. There
are a range of segmentation tools available in the market-
ing scientists toolbox traditional factor analysis, latent
class cluster analysis, multiple correspondence analysis.
The most actionable segmentation solutions typically result
from playing with various techniques and overlaying differ-
ent discriminating factors.
Total
Sample
Dis-
illusioned
and
defeated
In
denial
Worried
control
seekers
optimistic
fghters
Strong
embracers
f
e
m
a
l
e
m
a
l
e
passive Active
58%
42%
34%
66%
61%
39%
51%
49%
63%
37%
70%
30%
Source: Millward Brown Healthcare mCRC segmentation study
fIGuRE 2
Whether your initial goal was to inform product develop-
ment or positioning, it may be possible to re-run the seg-
mentation on revised variables as you learn more about
your asset as it moves through the development process.
You may require a tool that enables you to allocate
customers to different clusters, either for the purpose of
recruitment to a market research survey, or for targeting.
This could be in the form of a short list of questions, or a
decision tree, depending on how it will be used.
In an ideal world, the delivery of the segmentation solution
should be the start of a relationship with your agency and
its marketing scientists. Work together to ensure that your
segmentation remains alive and relevant not just today
but well into the future.
The segmentation specialists magic black box will provide
a solution, but often it needs honing before it becomes the
best solution. The science gets you so far; you need discus-
sion and creativity to make your solution real, rather than
software-led, and take you to your ultimate destination.
9. bRINGING THE SEGmENTATIoN To lIfE. . .
We advocated starting your segmentation project with all
your key stakeholders on board. As the project draws to a
close we hope that they are looking forward to seeing the
output as much as you are.
We recommend that, once the segmentation specialists
have come up with their initial results, you bring the whole
client team back into the discussion. Invite them to an ex-
pertly facilitated workshop, and let them help shape the
segments; let them name them. Not only does this mean
you have segments that work for your business, but all of
the key people have had the chance to contribute, and are
more likely to own and work with them.
This crucial stage in the project will help to ensure that your
segmentation comes to life and reduces the likelihood
of it ending up gathering dust on a shelf.
10. . . . AND KEEpING IT AlIVE
We hope that your segmentation will not end up consigned
to a fle named Interesting Pieces of Theory, that have no
practical application. The presentation of the fnal results
should be the start of the segmentations useful life, rather
than the end of the project. Of course, you want handy one-
page visuals and data summaries, but you should be think-
ing about what you can use your segmentation for next.
Is your
patient
particularly
concerned
about losing
their hair?
Does your
patient
express a
preference for
a specifc
treatment?
Dis-
illusioned
and
defeated
Does your
patient
specifcally
want to avoid
chemo-
therapy?
Is your patient keen to try new drugs?
In
denial
Dis-
illusioned
and
defeated
Strong
embracers
Worried
control
seekers
Strong
embracers
optimistic
fghters
Disagree
strongly
Disagree
<=2
Agree
>=3
Agree
>=3
Agree
>=3
Disagree
<=2
Disagree
<=2
Disagree
slightly
Agree
slightly
Agree
strongly
Source: Millward Brown Healthcare mCRC segmentation study
Decision tree
fIGuRE 3
197
Gender split of mcRc typologies
Unfortunately, most statistical software packages still dont
have a reliable method for coping with these missing values.
Many papers have been written about missing value analy-
sis, but at the moment we dont have the perfect solution.
It is not ideal to guess what a doctor would have answered
if forced to give an answer other than dont know. We want
to avoid assumptions and work with real data.
7. fuTuRE-pRoofING SEGmENTATIoN
Time to look forward then. Given the duration of the product
life cycle it is important to ensure that your segmentation is
going to be relevant in the future. Work with your internal
customers, and consider working with external partners, to
envisage scenarios whether related to future drug treat-
ment paradigms, economic trends, the changing regulatory
environment. Anticipate these when consolidating your
segmentation solution.
Best practice guidelines for segmentation research include
ensuring segment stability something which is important
within the pharmaceutical market where the segmentation
will be referred to for a number of years to come.
We advocate avoiding the use of K means clustering, which
is associated with instability, and instead use hierarchical
clustering. It is important that the segmentation will be easy
to replicate and update if desired.
8. THE bEST SoluTIoNS ARE A blEND of ART
AND ScIENcE
Your team will have started with a clear idea of where they
are headed following your initial hypothesis generation, but
we suggest you remain open-minded and be prepared to
accept that you may arrive at a different place.
Give the marketing scientists time to experiment with the
data for example, using different segmentation tech-
niques and adding in different discriminating factors. There
are a range of segmentation tools available in the market-
ing scientists toolbox traditional factor analysis, latent
class cluster analysis, multiple correspondence analysis.
The most actionable segmentation solutions typically result
from playing with various techniques and overlaying differ-
ent discriminating factors.
Total
Sample
Dis-
illusioned
and
defeated
In
denial
Worried
control
seekers
optimistic
fghters
Strong
embracers
f
e
m
a
l
e
m
a
l
e
passive Active
58%
42%
34%
66%
61%
39%
51%
49%
63%
37%
70%
30%
Source: Millward Brown Healthcare mCRC segmentation study
fIGuRE 2
Whether your initial goal was to inform product develop-
ment or positioning, it may be possible to re-run the seg-
mentation on revised variables as you learn more about
your asset as it moves through the development process.
You may require a tool that enables you to allocate
customers to different clusters, either for the purpose of
recruitment to a market research survey, or for targeting.
This could be in the form of a short list of questions, or a
decision tree, depending on how it will be used.
In an ideal world, the delivery of the segmentation solution
should be the start of a relationship with your agency and
its marketing scientists. Work together to ensure that your
segmentation remains alive and relevant not just today
but well into the future.
The segmentation specialists magic black box will provide
a solution, but often it needs honing before it becomes the
best solution. The science gets you so far; you need discus-
sion and creativity to make your solution real, rather than
software-led, and take you to your ultimate destination.
9. bRINGING THE SEGmENTATIoN To lIfE. . .
We advocated starting your segmentation project with all
your key stakeholders on board. As the project draws to a
close we hope that they are looking forward to seeing the
output as much as you are.
We recommend that, once the segmentation specialists
have come up with their initial results, you bring the whole
client team back into the discussion. Invite them to an ex-
pertly facilitated workshop, and let them help shape the
segments; let them name them. Not only does this mean
you have segments that work for your business, but all of
the key people have had the chance to contribute, and are
more likely to own and work with them.
This crucial stage in the project will help to ensure that your
segmentation comes to life and reduces the likelihood
of it ending up gathering dust on a shelf.
10. . . . AND KEEpING IT AlIVE
We hope that your segmentation will not end up consigned
to a fle named Interesting Pieces of Theory, that have no
practical application. The presentation of the fnal results
should be the start of the segmentations useful life, rather
than the end of the project. Of course, you want handy one-
page visuals and data summaries, but you should be think-
ing about what you can use your segmentation for next.
Is your
patient
particularly
concerned
about losing
their hair?
Does your
patient
express a
preference for
a specifc
treatment?
Dis-
illusioned
and
defeated
Does your
patient
specifcally
want to avoid
chemo-
therapy?
Is your patient keen to try new drugs?
In
denial
Dis-
illusioned
and
defeated
Strong
embracers
Worried
control
seekers
Strong
embracers
optimistic
fghters
Disagree
strongly
Disagree
<=2
Agree
>=3
Agree
>=3
Agree
>=3
Disagree
<=2
Disagree
<=2
Disagree
slightly
Agree
slightly
Agree
strongly
Source: Millward Brown Healthcare mCRC segmentation study
Decision tree
fIGuRE 3
198
The survey conducted by Millward Brown for The Global
Brand in 2008 helps illustrate the basic drivers of brand
success across countries and cultures. The survey was
conducted in eight countries (from west to east): the United
States, Mexico, Brazil, the United Kingdom, Germany,
Russia, India and China.
In each country, we compared two global brands to two
local brands in each of fve categories: cars, beer, fast food,
shampoo/conditioners and soft drinks. In total, we inter-
viewed 3,307 people about 91 different brands.
The global brands included in our survey were stronger
than the local ones; they were more often considered for
purchase and received higher scores on almost all state-
ments, including setting the trends, being very easy to
recognize and having very distinctive identities. In general,
our analysis suggests that global brands owe their strength
to their reliance on the basics of brand-building.
Local brands, not surprisingly scored far higher on being
seen as part of the national culture, an attribute that is a
driver of purchase intent for all brands, both global and
local. So that while local brands may lack the business
acumen and deep pockets of the MNC brands, but they
draw strength from their home-feld advantage.
The lesson here for multi-national companies (MNC) is the
importance of embedding the brand in the local culture
and in this regard two global brands stand out. Ironically
these are two of the most iconic American brands Coca-
Cola and McDonalds. Both brands were held in high
Global Brands and Local Culture
by Ni gel Hol l i s, cHi ef global aNalyst, Mi l lward browN
This article previously appeared in the September 2009 edition of Market Leader, www.warc.com.
Companies such as Unilever, P&G, Coca-Cola and other
major multinationals have been marketing internation-
ally for many decades. But the real impetus for global
branding has been more recent with more and more
companies developing global strategies. Huge strides in
the living standards of Asian and Latin American markets
combined with the infuence of the internet, tv formats,
flms, entertainment and brands in many categories
fnding audiences around the world leave us with ques-
tions about what the issues for global brands are
now. Nigel Hollis argues that MNC brands are typically
stronger than local brands but to truly consolidate their
position they need to embed themselves in local culture.
esteem, and were endorsed by a signifcant proportion of
people in countries other than the United States as being
part of their own national cultures. If these two giants of US
culture can embed themselves locally, any brand in any
sector should be able to gain this kind of advantage.
We identifed a couple of factors (beyond aspiration for the
American lifestyle) that made this possible. The frst is ad-
aptation (of both product and communication). Both brands
adapted their product offerings appropriately and invested
heavily in locally inspired communication and activation to
complement their global positioning.
Obviously, time in the market gives companies a consider-
able advantage. Coke, McDonalds another others have
had plenty of time to adapt. So newcomers have to try
especially hard to understand the the nature of beliefs and
practices in their sector they are entering so that they
begin their presence in the market closely tuned to the
local culture.
globalizatioN strategies vary by braNd aNd
category
The traditional assumptions that all countries were differ-
ent was driven as much by the fact that entrants were in
fmcg food, drink, toiletries, etc where cultural differences
were very different. However, in recent years other sectors
have expanded globally fnding common shared needs and
relatively homogenous target audiences. Technology and
healthcare products, as well as genuinely new innovations
that effectively create new categories are more likely to be
accepted without adaptation, either because fundamental
needs are the same or because there are no entrenched
habits to be overcome.
Companies such as IBM, Cisco, and Accenture deal with an
upscale, well-educated and relatively homogeneous group
of customers, many of whom have been educated in North
America or Western Europe or who travel there on a regu-
lar basis. These customers are effectively united around the
culture of international business. They share similar needs,
and their familiarity with the cultures of different countries
makes them open to buying foreign brands.
Mass-market brands, on the other hand, face the reality
that the mass market can still be very different from coun-
try to country. To succeed, they must create strong ties with
consumers who may have different income levels, needs,
desires, and habits. The challenges multiply with every new
country they enter. Socioeconomic differences may be
readily apparent and easy to anticipate, but often cultural
differences are subtle and more diffcult to detect.
For example, P&G expected that the fabric refresher
Febreeze would do well in Japan, because the Japanese
are highly sensitive to odors, but initial research results
were disappointing. A positive response from a small
minority of respondents encouraged P&G to try again.
In an interview with Strategy and Business, A.G. Lafey
recalled that, The P&G team changed the viscosity of the
product. They changed the fragrance from high profle to a
very low profle scent. They changed the bottle to a much
199
The survey conducted by Millward Brown for The Global
Brand in 2008 helps illustrate the basic drivers of brand
success across countries and cultures. The survey was
conducted in eight countries (from west to east): the United
States, Mexico, Brazil, the United Kingdom, Germany,
Russia, India and China.
In each country, we compared two global brands to two
local brands in each of fve categories: cars, beer, fast food,
shampoo/conditioners and soft drinks. In total, we inter-
viewed 3,307 people about 91 different brands.
The global brands included in our survey were stronger
than the local ones; they were more often considered for
purchase and received higher scores on almost all state-
ments, including setting the trends, being very easy to
recognize and having very distinctive identities. In general,
our analysis suggests that global brands owe their strength
to their reliance on the basics of brand-building.
Local brands, not surprisingly scored far higher on being
seen as part of the national culture, an attribute that is a
driver of purchase intent for all brands, both global and
local. So that while local brands may lack the business
acumen and deep pockets of the MNC brands, but they
draw strength from their home-feld advantage.
The lesson here for multi-national companies (MNC) is the
importance of embedding the brand in the local culture
and in this regard two global brands stand out. Ironically
these are two of the most iconic American brands Coca-
Cola and McDonalds. Both brands were held in high
Global Brands and Local Culture
by Ni gel Hol l i s, cHi ef global aNalyst, Mi l lward browN
This article previously appeared in the September 2009 edition of Market Leader, www.warc.com.
Companies such as Unilever, P&G, Coca-Cola and other
major multinationals have been marketing internation-
ally for many decades. But the real impetus for global
branding has been more recent with more and more
companies developing global strategies. Huge strides in
the living standards of Asian and Latin American markets
combined with the infuence of the internet, tv formats,
flms, entertainment and brands in many categories
fnding audiences around the world leave us with ques-
tions about what the issues for global brands are
now. Nigel Hollis argues that MNC brands are typically
stronger than local brands but to truly consolidate their
position they need to embed themselves in local culture.
esteem, and were endorsed by a signifcant proportion of
people in countries other than the United States as being
part of their own national cultures. If these two giants of US
culture can embed themselves locally, any brand in any
sector should be able to gain this kind of advantage.
We identifed a couple of factors (beyond aspiration for the
American lifestyle) that made this possible. The frst is ad-
aptation (of both product and communication). Both brands
adapted their product offerings appropriately and invested
heavily in locally inspired communication and activation to
complement their global positioning.
Obviously, time in the market gives companies a consider-
able advantage. Coke, McDonalds another others have
had plenty of time to adapt. So newcomers have to try
especially hard to understand the the nature of beliefs and
practices in their sector they are entering so that they
begin their presence in the market closely tuned to the
local culture.
globalizatioN strategies vary by braNd aNd
category
The traditional assumptions that all countries were differ-
ent was driven as much by the fact that entrants were in
fmcg food, drink, toiletries, etc where cultural differences
were very different. However, in recent years other sectors
have expanded globally fnding common shared needs and
relatively homogenous target audiences. Technology and
healthcare products, as well as genuinely new innovations
that effectively create new categories are more likely to be
accepted without adaptation, either because fundamental
needs are the same or because there are no entrenched
habits to be overcome.
Companies such as IBM, Cisco, and Accenture deal with an
upscale, well-educated and relatively homogeneous group
of customers, many of whom have been educated in North
America or Western Europe or who travel there on a regu-
lar basis. These customers are effectively united around the
culture of international business. They share similar needs,
and their familiarity with the cultures of different countries
makes them open to buying foreign brands.
Mass-market brands, on the other hand, face the reality
that the mass market can still be very different from coun-
try to country. To succeed, they must create strong ties with
consumers who may have different income levels, needs,
desires, and habits. The challenges multiply with every new
country they enter. Socioeconomic differences may be
readily apparent and easy to anticipate, but often cultural
differences are subtle and more diffcult to detect.
For example, P&G expected that the fabric refresher
Febreeze would do well in Japan, because the Japanese
are highly sensitive to odors, but initial research results
were disappointing. A positive response from a small
minority of respondents encouraged P&G to try again.
In an interview with Strategy and Business, A.G. Lafey
recalled that, The P&G team changed the viscosity of the
product. They changed the fragrance from high profle to a
very low profle scent. They changed the bottle to a much
200
more delicate design that more Japanese people felt com-
fortable having visible in their homes. They changed the
spray pattern to a mist. They changed everything but the
core technology of the product, and it became a phenom-
enal success in Japan.
tHe cHalleNge of coMMuNicatioN
While some brands need to adapt basic product offerings
more than others, all product and service brands face the
challenge of adapting their communications to work well
in different cultures. Even countries that share a common
language and have a similar socio-economic standing, such
as the U.S. and the U.K., are divided by cultural reference
points, values, humor, customs and idioms.
A recent examination of Millward Browns Link database,
which contains consumer opinions on more than 50,000
ads globally, demonstrates that few ads can transcend
cultural boundaries. We looked at ads that tested excep-
tionally well in one country and found that only a small
minority did well outside their own country and indeed, a
majority of these exceptional ads performed poorly in
another country.
An international campaign by Apple, in which the Mac is
personifed as cool and hip and contrasted with a nerdy PC,
provides a case in point. The U.S. ads draw their success
from target audience familiarity with the actors who portray
the two brands. New versions of the U.S. ads were created
for Japan and the UK.
Direct comparison advertising does not play well in Japan
because it is considered rude to brag about ones strengths.
Instead, two local comedians focus attention on differences
between the two brands use at work and home. The UK
versions featured British sit-com actors David Mitchell and
Robert Webb reprising their respective roles in Peep Show.
The dialogue followed the original U.S. scripts closely but
was translated into colloquial English. More importantly, the
UK ads sought to replicate the strong implicit communica-
tion of the originals through the differing personalities of
the two TV show characters.
So that while using the same ad campaign across borders
may offer cost effciencies, the savings realized may not
outweigh the beneft offered by local engagement. Indeed,
this is an excellent way for a brand entering a market to
display its local credentials at the outset.
This said, it should be noted that exceptional ads do travel
better than average ones. Sixty percent of exceptional ads
score well in another country compared to less than one in
fve for average performers.
creatiNg coMMuNicatioN tHat caN travel
Savvy global marketers know that its easier for a commu-
nication campaign to travel when it taps into a human
motivation or interest that is shared across cultures. By
leveraging an essential aspect of human nature that is
common to people around the world, brands can often
avoid getting boxed in by cultural differences.
A good example is Johnnie Walker, the IPA Effectiveness
Awards Grand Prix winner. As a result of extensive quali-
tative research, Johnnie Walker identifed that the idea of
progress was a universally powerful expression of mas-
culine success in the 21st century. The Keep Walking
campaign has been very successful in helping to reverse
the brands downward trend and boost sales by 48 percent
between 1999 and 2007.
And if continued achievement is the preoccupation of the
mature male, then a fascination with the opposite sex typi-
fes that of many younger ones. Axe/Lynx has successfully
tapped into this motivation to become one of the strongest
personal care brands in the world.
The experience of Dove, by contrast, would suggest that the
self-determination expressed by men in the Johnnie Walker
campaign is not as yet seen as appropriate to women out-
side Western markets. Doves Campaign for Real Beauty,
lauded in the West, is reported to have fallen on deaf ears
in Asia, where more traditional ideas of feminine beauty
still reign supreme. Dove has now taken a new approach in
China, launching a Chinese version of Ugly Betty, known
in America from the ABC-TV comedy but originating from
a Colombian telenovella. The script of Ugly Wudi, as the
show is called on Chinas Hunan Satellite Television, is built
around the Dove brand and documents Lin Wudis transfor-
mation from ugly duckling to swan.
wHat effects Have MultiNatioNal Media Had?
The rise of multinational media corporations and the
Internet has supposedly led to the globalization of pop-
ular culture. But while it is true that movies, music and
sports now fnd audiences far beyond their country of
origin, their appeal is still fragmented. Brands must often
stitch together a patchwork of sponsorships in order to
generate global appeal.
Gillettes campaign for its Fusion razor brand is a case in
point. The campaign features Tiger Woods, Roger Federer
and Thierry Henry in advertising and on the brands web
site in most countries. But like Gillettes blade count strat-
egy, three is not enough. In order to achieve global appeal,
the brand needs to team up with additional personalities.
In Argentina, it is the soccer player Messi; in Brazil, is Kak,
in South Africa, Bryan Habana (a rugby union player). Like
so many things that global marketers must deal with, sport
is not necessarily universal. National and team allegiance
may undermine even the best global strategy.
Some campaigns attempt to transcend culture by creating
a unique and imaginative world around the brand. Coca-
Colas Happiness Factory presents a fantasy world to great
effect. By embodying the concept of the brands core strat-
egy of spreading joy into a magical world where fantastic
creatures fll each bottle of Coke with love, the campaign
evades cultural pitfalls. The ads are enthralling and accept-
ed on their own terms. But simply creating a fantasy is not
guaranteed to work equally well everywhere. Care still needs
to be taken to avoid any reference points, iconography or
turns of phrase which are shared across cultures.
201
more delicate design that more Japanese people felt com-
fortable having visible in their homes. They changed the
spray pattern to a mist. They changed everything but the
core technology of the product, and it became a phenom-
enal success in Japan.
tHe cHalleNge of coMMuNicatioN
While some brands need to adapt basic product offerings
more than others, all product and service brands face the
challenge of adapting their communications to work well
in different cultures. Even countries that share a common
language and have a similar socio-economic standing, such
as the U.S. and the U.K., are divided by cultural reference
points, values, humor, customs and idioms.
A recent examination of Millward Browns Link database,
which contains consumer opinions on more than 50,000
ads globally, demonstrates that few ads can transcend
cultural boundaries. We looked at ads that tested excep-
tionally well in one country and found that only a small
minority did well outside their own country and indeed, a
majority of these exceptional ads performed poorly in
another country.
An international campaign by Apple, in which the Mac is
personifed as cool and hip and contrasted with a nerdy PC,
provides a case in point. The U.S. ads draw their success
from target audience familiarity with the actors who portray
the two brands. New versions of the U.S. ads were created
for Japan and the UK.
Direct comparison advertising does not play well in Japan
because it is considered rude to brag about ones strengths.
Instead, two local comedians focus attention on differences
between the two brands use at work and home. The UK
versions featured British sit-com actors David Mitchell and
Robert Webb reprising their respective roles in Peep Show.
The dialogue followed the original U.S. scripts closely but
was translated into colloquial English. More importantly, the
UK ads sought to replicate the strong implicit communica-
tion of the originals through the differing personalities of
the two TV show characters.
So that while using the same ad campaign across borders
may offer cost effciencies, the savings realized may not
outweigh the beneft offered by local engagement. Indeed,
this is an excellent way for a brand entering a market to
display its local credentials at the outset.
This said, it should be noted that exceptional ads do travel
better than average ones. Sixty percent of exceptional ads
score well in another country compared to less than one in
fve for average performers.
creatiNg coMMuNicatioN tHat caN travel
Savvy global marketers know that its easier for a commu-
nication campaign to travel when it taps into a human
motivation or interest that is shared across cultures. By
leveraging an essential aspect of human nature that is
common to people around the world, brands can often
avoid getting boxed in by cultural differences.
A good example is Johnnie Walker, the IPA Effectiveness
Awards Grand Prix winner. As a result of extensive quali-
tative research, Johnnie Walker identifed that the idea of
progress was a universally powerful expression of mas-
culine success in the 21st century. The Keep Walking
campaign has been very successful in helping to reverse
the brands downward trend and boost sales by 48 percent
between 1999 and 2007.
And if continued achievement is the preoccupation of the
mature male, then a fascination with the opposite sex typi-
fes that of many younger ones. Axe/Lynx has successfully
tapped into this motivation to become one of the strongest
personal care brands in the world.
The experience of Dove, by contrast, would suggest that the
self-determination expressed by men in the Johnnie Walker
campaign is not as yet seen as appropriate to women out-
side Western markets. Doves Campaign for Real Beauty,
lauded in the West, is reported to have fallen on deaf ears
in Asia, where more traditional ideas of feminine beauty
still reign supreme. Dove has now taken a new approach in
China, launching a Chinese version of Ugly Betty, known
in America from the ABC-TV comedy but originating from
a Colombian telenovella. The script of Ugly Wudi, as the
show is called on Chinas Hunan Satellite Television, is built
around the Dove brand and documents Lin Wudis transfor-
mation from ugly duckling to swan.
wHat effects Have MultiNatioNal Media Had?
The rise of multinational media corporations and the
Internet has supposedly led to the globalization of pop-
ular culture. But while it is true that movies, music and
sports now fnd audiences far beyond their country of
origin, their appeal is still fragmented. Brands must often
stitch together a patchwork of sponsorships in order to
generate global appeal.
Gillettes campaign for its Fusion razor brand is a case in
point. The campaign features Tiger Woods, Roger Federer
and Thierry Henry in advertising and on the brands web
site in most countries. But like Gillettes blade count strat-
egy, three is not enough. In order to achieve global appeal,
the brand needs to team up with additional personalities.
In Argentina, it is the soccer player Messi; in Brazil, is Kak,
in South Africa, Bryan Habana (a rugby union player). Like
so many things that global marketers must deal with, sport
is not necessarily universal. National and team allegiance
may undermine even the best global strategy.
Some campaigns attempt to transcend culture by creating
a unique and imaginative world around the brand. Coca-
Colas Happiness Factory presents a fantasy world to great
effect. By embodying the concept of the brands core strat-
egy of spreading joy into a magical world where fantastic
creatures fll each bottle of Coke with love, the campaign
evades cultural pitfalls. The ads are enthralling and accept-
ed on their own terms. But simply creating a fantasy is not
guaranteed to work equally well everywhere. Care still needs
to be taken to avoid any reference points, iconography or
turns of phrase which are shared across cultures.
202
Last, but not least, if your brand possesses a well differenti-
ated functional beneft that meets a common need, then it
may be best to simply focus on that beneft, particularly
when the problem to be solved is the cause of much angst.
For example, Nicorette promises to help smokers quit
smoking. The brands Craving Man campaign, which fea-
tured a 2 meter cigarette with arms, legs and a face,
proclaimed Beat cigarettes one at a time. Youre twice as
likely to succeed with Nicorette. From 2000 to 2004,
based largely on the success of the campaign, Nicorette
grew from $194 million to $295 million in sales and estab-
lished itself as the clear market leader in its category.
cultural bouNdaries are Not defiNed
by borders
Cultural differences exist within countries as well as across
national borders. For example, marketers in the United
States acknowledge the need to tailor marketing commu-
nication to Hispanics and African-Americans and market-
ers in the UK may still create tailored campaigns to Welsh,
Scottish and English consumers. The need to recognize
regional cultural differences becomes even more impor-
tant in countries like China and India, which encompass a
rich diversity of cultures and languages. In these countries,
launching a brand in a new city can present the same types
of challenges as launching in a different country.
Further, appreciation and understanding of marketing
also differ from region to region. Middle-income con-
sumers living in Shanghai or Delhi have had time to grow
accustomed brands and marketing. They look for more than
basic product claims before they buy. Not so in rural areas
where people actively seek out advertising as a source of
information.
coNclusioN
MNCs face a dilemma. In order to compete most effec-
tively with local brands they must establish a local identity
and in many areas of consumption individual cultures are
still quite different. At the same time, global brand strate-
gies increasingly demand that the brand be communicated
similarly in all markets. This is a delicate balancing act
which requires attention to product formulation but most
of all to the way the brand communicates its brand idea to
each individual local audience through a single-minded
product focus, or through refecting local humour and/or
customs and/or personalities or adapting ideas based on
deep human needs.
203
Last, but not least, if your brand possesses a well differenti-
ated functional beneft that meets a common need, then it
may be best to simply focus on that beneft, particularly
when the problem to be solved is the cause of much angst.
For example, Nicorette promises to help smokers quit
smoking. The brands Craving Man campaign, which fea-
tured a 2 meter cigarette with arms, legs and a face,
proclaimed Beat cigarettes one at a time. Youre twice as
likely to succeed with Nicorette. From 2000 to 2004,
based largely on the success of the campaign, Nicorette
grew from $194 million to $295 million in sales and estab-
lished itself as the clear market leader in its category.
cultural bouNdaries are Not defiNed
by borders
Cultural differences exist within countries as well as across
national borders. For example, marketers in the United
States acknowledge the need to tailor marketing commu-
nication to Hispanics and African-Americans and market-
ers in the UK may still create tailored campaigns to Welsh,
Scottish and English consumers. The need to recognize
regional cultural differences becomes even more impor-
tant in countries like China and India, which encompass a
rich diversity of cultures and languages. In these countries,
launching a brand in a new city can present the same types
of challenges as launching in a different country.
Further, appreciation and understanding of marketing
also differ from region to region. Middle-income con-
sumers living in Shanghai or Delhi have had time to grow
accustomed brands and marketing. They look for more than
basic product claims before they buy. Not so in rural areas
where people actively seek out advertising as a source of
information.
coNclusioN
MNCs face a dilemma. In order to compete most effec-
tively with local brands they must establish a local identity
and in many areas of consumption individual cultures are
still quite different. At the same time, global brand strate-
gies increasingly demand that the brand be communicated
similarly in all markets. This is a delicate balancing act
which requires attention to product formulation but most
of all to the way the brand communicates its brand idea to
each individual local audience through a single-minded
product focus, or through refecting local humour and/or
customs and/or personalities or adapting ideas based on
deep human needs.
INTRODUCTION
The fexibility of the online medium has led to a wide range
of advertising format choices for advertisers, including static
image formats (e.g., GIF and JPG formats), simple ani-
mated Flash formats without interaction capabilities (e.g., .
swf formats), and rich-media formats that can include
expandable, foating, video, and other interactive features.
This range of formats, combined with readily available on-
line measurement opportunities, means that advertisers
can make informed choices about advertising formats
based on key branding goals. This study examines some of
the factors infuencing advertisers choice of advertising
format, identifes the advertising formats associated with
the largest branding impact, and suggests how to match
advertising format to branding goal to extract the most
brand value from an online display advertising campaign.
FACTORS AFFECTING ADVERTISING FORMAT CHOICE
Format choices for online campaigns can be based on
factors that have little to no correlation to branding goals
such as:
the type of creative units that can be completed in time
to meet deadlines;
the fxed percentage of the media budget that can be
allocated to advertising serving fees;
greater comfort levels with the simple Flash format;
and
direct response metrics such as click-through rates.
How Rich-Media Video Technology
Boosts Branding Goals
By LEAH SPALDI NG, RESEARCH MANAGER, GOOGLE, I NC. ; SALLy COLE, MARKETI NG MANAGER, GOOGLE, I NC. ;
AMy FAyER, RESEARCH MANAGER, DyNAMI C LOGI C
This article previously appeared in the September 2009 edition of the Journal of Advertising Research.
Reproduced with permission of Journal of Advertising Research, www.warc.com/jar.
Why use rich media in brand campaigns? More than
4,000 online campaigns in Dynamic Logics Market-
Norms database were compared to identify the brand
impact of those campaigns that used rich media as
compared to those that used simple Flash and image
formats. Delta scores for the campaigns were com-
pared across fve branding metrics. Results indicated
that campaigns using rich-media formats generally
had stronger branding effects compared to campaigns
using GIF/JPG and simple Flash formats. Campaigns
using rich-media advertisements with video features
showed the strongest performance. The results sug-
gest new strategies for improving brand campaign
performance based on advertising format choice.
Di fferent Onli ne ADverti si ng fOrmAts Dri ve Di fferent BrAnD-PerfOrmAnce metri cs
204
Adhering too closely to these approaches may create a
misalignment between format choice and branding goals.
For example, in 2008, display advertising volumes skewed
heavily toward the simple Flash format (see Figure 1).
But does volume translate to success? Is simple Flash the
best advertising format to reach branding goals? How can ad-
vertisers choose the right formats to maximize this success?
THE BRAND IMPACT OF ONLINE DISPLAy
ADVERTISEMENTS
Online display advertising can generate positive branding
outcomes. Results from Dynamic Logics MarketNorms data-
base of 4,800 online display campaigns shows that, on av-
Flash advertisements were largest share of
advertising serving volume in 2008
FIGURE 1
erage, display advertising signifcantly improves consumers
brand attitudes across fve common branding metrics (see
Figure 2). The average brand impact, however, varies widely
across the specifc metrics used. For example, the average
delta for online advertising awareness is almost fve times
the size of the average delta for purchase intent.
This pattern is consistent with research showing a stronger
effect of advertising exposure on awareness metrics (i.e.,
online advertising awareness and message association)
compared to exposure effects for persuasion metrics (i.e.,
brand favorability and purchase intent) (Romeo and Nyhan,
2002). The pattern could be predicted by a classic hierar-
chy model of advertising effectiveness depicting advertising
effectiveness as a sequence of events, with awareness out-
comes being easier to achieve than persuasion outcomes
(Lavidge and Steiner, 1961). In this model, consumer aware-
GIF /JPG
39%
Simple
Flash
55%
Rich Media
6%
Source: Nielsen AdRelevance, January-December 2008. Impressions by Technology for
simple Flash, GIF/JPG, and Rich Media only.
0
Online
advertising
awareness
Aided
brand
awareness
Message
associa-
tion
Brand
favorability
Purchase
intent
3.5
3.0
2.5
2.0
1.5
1.0
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns
using online display advertising of any format N = 547-765.
2.9
1.4
1.0
0.7
0.6
Average delta (exposed minus control) for fve
brand metrics
FIGURE 2
n Statistically signifcant difference
between control and exposed
groups at 90% confdence rate
205
ness can be achieved by mere attention. Improved brand
favorability and purchase intent, however, only are possible
among a smaller group of consumers who have not only
attended to the advertisement, but subsequently shifted
their attitudes and behavioral intent as a consequence.
This range of outcomes implies that advertisers will need
to consider the specifc branding goal when evaluating the
success of their campaign.
WHERE TO FOCUS IN THE BRANDING FUNNEL
The more specifc the branding goal, the easier it will be to
make informed format choices. The online medium lends
itself well to zeroing in on specifc branding goals. Organiz-
ing the MarketNorms branding metrics along an advertising
effectiveness hierarchy (also known as a branding funnel)
provides advertisers with one way to conceptualize differ-
ent branding goals (see Figure 3).
At the top of the funnel are awareness metrics that are
more strongly affected by brand advertising, while the bot-
tom of the funnel has persuasion metrics that typically
show smaller effects. This hierarchy also assumes that the
metrics are systematically and sequentially related, so that
consumers must achieve brand awareness before being
able to form an attitude about the brand and must have a
positive attitude before intending to purchase (Romeo and
Nyhan, 2002; although see also Barry and Howard, 1990,
and Weilbacher, 2001, for critiques of this model).
By considering different branding goals (see Table 1), ad-
vertisers can identify which metric (or metrics) could be the
primary success metrics for the campaign. For example,
an advertiser seeking to launch a new brand may want to
frst focus on building-brand awareness as a prerequisite to
gaining brand trial. That advertiser may choose to focus on
upper-funnel metrics such as aided brand awareness or
message association that can assess whether consumers
are aware of the brand. Advertisers with well-established
Do enough people in your
target audience . . .
If no focus on . . .
Recognize your brand when presented
with its name?
Aided brand
awareness
Recognize that youve advertised
online recently?
Online advertising
awareness
Associate your brand with its
value proposition?
Message association
Appreciate, respect, or otherwise carry
favorable opinions about your brand?
Brand favorability
Intend to purchase or take action
relating to your brand?
Purchase intent
Aided brand
awareness
Online
advertising
awareness
Message
association
Brand
favorability
Purchase
intent
U
p
p
e
r

f
u
n
n
e
l
L
o
w
e
r

f
u
n
n
e
l
Source: Dynamic Logic
Common branding funnel metrics
Branding goal questions
FIGURE 3
TABLE 1
206
brands, however, may already see high levels of brand
awareness in their target market and so focus on persua-
sion metrics (i.e., purchase intent) that are closer to actual
purchase behavior. In any case, deciding whether the goal
is to drive improvement across all brand metrics, upper- or
lowerfunnel metrics, or a single brand metric, can be a use-
ful step in making informed advertising-format decisions
for an online campaign.
Advertisers may need to match the right advertising format
to their branding goal in order to extract the most brand
value from an online display advertising campaign. The cur-
rent study seeks to establish which online display advertis-
ing formats are associated with the strongest outcomes for
specifc branding goals, such as increasing brand awareness
and purchase intent.
METHODOLOGy
Brand metrics were compared for more than 4,000
campaigns through 2008, as tracked via Dynamic Logics
MarketNorms database. Campaigns were included if they
met two criteria:
their assets included at least one of four advertising
formats:
simple fash;
JPG/GIF format (i.e., static nonfash advertisements);
rich media with video; and
rich media nonvideo
the questionnaire used standard MarketNorms
branding questions.
Rich-media advertisements included any advertisements
with foating, interactive, or expandable elements, and these
advertisements were then further classifed based on pres-
ence or absence of video elements.
Advertising effectiveness can also be affected by frequency
capping. Frequency capping involves a restriction on the
number of times a person is served a particular online
advertisement, as tracked through a browser cookie. Fre-
quency capping is used as a way to avoid advertising over-
exposure that may reduce its impact with consumers and
is also a way to control the costs of video advertisements
(Bruner and Gluck, 2006; Mallon, 2007).
The current analysis focuses on single advertising expo-
sures within each format to control for any potential ef-
fects of exposure frequency. Survey responses from those
who had been served the advertisement more than once
have been removed. The results cited, however, have not
been adjusted for demographics, advertising size, websites,
advertiser industry, and other factors that may contribute
to brand lift. These fndings are aggregate in nature, refect
past results, and are not a guarantee of future results for
individual campaigns.
The creative technology groups were compared based on
their ability to help advertisers move fve key brand metrics
(see the Appendix for Dynamic Logics standard branding
questions):
aided brand awareness;
online advertising awareness;
message association;
brand favorability; and
purchase intent.
207
Clients typically customize these questions to include the
specifc product category, brand message used in the cre-
ative execution of an advertisement, the clients brand be-
ing tested, and a set of three to fve competing brands in
the same product category.
For each measure, the percentage point difference (delta)
was calculated as the share of positive responses from con-
trol respondents minus share of positive responses from
advertising exposed respondents. In addition to evaluating
brand performance for each advertising format, additional
signifcance testing comparing the deltas identifed the top-
performing advertising formats for each brand metric.
RESULTS
AIDED BRAND AWARENESS
Campaigns using rich-media-with-video advertising for-
mats showed the largest signifcant increase in aided brand
awareness (p<0. 10, two-sided, for each pairwise com-
parison). Exposing audiences to a rich-media-with-video
advertisement, on average, resulted in a 1.90 percent in-
crease in aided brand awareness among exposed groups
compared to control (see Figure 4). Campaigns using Flash
and rich-media nonvideo advertising formats also showed
signifcant increases in aided brand awareness at single-
advertisement exposure levels (p<0. 10, two-sided). Cam-
paigns using rich-media advertisements with video, howev-
er, returned the largest effects, showed signifcantly greater
deltas for aided brand awareness than all other advertising
formats (p<0. 10, two-sided, for each pairwise comparison).
GIF/ JPG demonstrated the poorest results for aided brand
awareness and was the only advertising format not showing
signifcant improvement (p>0. 10, two-sided).
FIGURE 4
Campaigns using rich-media-with-video advertising formats show strongest performance in aided brand awareness
0.00
-0.50
Simple
Flash
GIF and
JPG
2.00
MarketNorms,
All Display Advertisements, 1.00
n Statistically signifcant difference
between control and exposed
groups at 90% confdence level
-0.15
1.50
1.00
0.50
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns using Rich Media with Video N = 41, Rich Media without Video N = 257, GIF/JPG N = 48,
simple Flash N = 317.
D
e
l
t
a

(
E
x
p
o
s
e
d

M
i
n
u
s

C
o
n
t
r
o
l
)
0.36
0.90
1.90
Rich Media
with Video
Rich Media
without Video
208
ONLINE ADVERTISING AWARENESS
Online advertising awareness showed some of the largest
overall increases across the brand metrics, and all advertis-
ing formats studied showed signifcant deltas (p<0. 10, two-
sided) (see Figure 5). In contrast to results for aided brand
awareness, all four formats showed equivalent boosts in
online advertising awareness metrics (p<0. 10, two-sided,
for each pairwise comparison). Rich-media advertisements
with video and GIF/JPG advertising formats showed aver-
age deltas that were not signifcantly different from the Mar-
ketNorms mean (p>0. 10, two-sided). Simple Flash and
rich-media advertisements without video were signifcantly
lower than the MarketNorms mean (p<0. 10, two-sided, for
each pairwise comparison). (It should be noted that the
MarketNorms data also includes other display advertising
formats such as instream that could raise the norms.)
MESSAGE ASSOCIATION
Message association was the sole brand metric where use
of GIF/JPG advertisements seemed to create an advantage.
Campaigns using GIF or JPG formats showed the largest
signifcant increase in message association (p<0. 10, two-
sided, for each pairwise comparison) (see Figure 6). Use of
other formats Flash and rich-media nonvideo were
associated with signifcant (p<0. 10, two-sided), but much
smaller boosts in message association compared to GIF/
JPG (p>0. 10, two-sided, for each pairwise comparison).
Rich-media advertisements with video showed no signif-
cant delta (p>0. 10, two-sided).
BRAND FAVORABILITy
Both rich-media formats are associated with signifcantly
increased brand favorability ratings (p<0. 10, two-sided).
FIGURE 5
All formats show signifcant effects for online advertising awareness
0.00
Rich Media
with Video
Simple
Flash
GIF and
JPG
Rich Media
without Video
3.00
n Statistically signifcant difference
between control and exposed
groups at 90% confdence level
1.50
2.50
1.00
2.00
0.50
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns using Rich Media with VIdeo N = 45, Rich Media without Video N = 267, GIF/JPG N = 50,
simple Flash N = 344.
D
e
l
t
a

(
E
x
p
o
s
e
d

M
i
n
u
s

C
o
n
t
r
o
l
)
2.15
2.10
2.38
2.60
209
Campaigns using rich-media advertisements with video,
however, showed a stronger boost in favorability compared
to campaigns using Flash and rich-media nonvideo for-
mats (p<0. 10, two-sided, for each pairwise comparison).
Exposing audiences to a single rich-media-with-video ad-
vertisement, on average, results in a 2.30 percent increase
in brand favorability among exposed groups compared to
control. In contrast, campaigns using simple Flash and
GIF/JPG formats did not show signifcant improvements in
brand favorability (p>0. 10, two-sided) (see Figure 7).
PURCHASE INTENT
As with brand favorability, use of either rich-media advertis-
ing formats are associated with increased purchase intent.
Figure 8 shows that exposing audiences to a single rich-
media-with-video advertising results in an average 1. 16 per-
cent increase in purchase intent among exposed groups
compared to control. Rich media without video also show
signifcant deltas for purchase intent (p<0. 10, two-sided),
while results for GIF/JPG and simple Flash formats were
not signifcant (p>0. 10, two-sided). Campaigns using rich-
media advertisements with video showed a signifcantly
larger delta than campaigns using simple Flash advertise-
ments (p<0. 10, two-sided).
ADVERTISING FORMAT COMPARISONS
In three out of fve brand metrics, campaigns using rich-
media advertisements with video showed signifcantly
FIGURE 6
GIF/JPG advertising formats show strongest performance for message association
0.00
-1.00
-0.50
GIF and
JPG
Rich Media
without Video
Simple
Flash
Rich Media
with Video
4.00
3.50
MarketNorms,
All Display Advertisements, 1.40
n Statistically signifcant difference
between control and exposed
groups at 90% confdence level
3.00
2.50
2.00
1.50
1.00
0.50
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns using Rich Media with Video N = 37, Rich Media without Video N = 193, GIF/JPG N = 33,
simple Flash N = 262.
D
e
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t
a

(
E
x
p
o
s
e
d

M
i
n
u
s

C
o
n
t
r
o
l
)
-0.71
0.71
1.01
3.74
210
0.15
FIGURE 7
FIGURE 8
Rich-media advertisements with video associated with strongest brand favorability results
Rich-media advertisements with video associated with strongest purchase intent results
0.00
0.00
Rich Media
with Video
Rich Media
with Video
Rich Media
without Video
GIF and
JPG
GIF and
JPG
Rich Media
without Video
Simple
Flash
Simple
Flash
2.50
1.40
n Statistically signifcant difference
between control and exposed
groups at 90% confdence level
n Statistically signifcant difference
between control and exposed
groups at 90% confdence level
1.50
0.80
0.60
1.00
0.40
2.00
1.20
1.00
0.50
0.20
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns using Rich Media with Video N = 46, Rich Media without Video N = 275, GIF/JPG N = 52,
simple Flash N = 344.
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns using Rich Media with Video N = 47, Rich Media without Video N = 267, GIF/JPG N = 50,
simple Flash N = 340.
D
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(
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M
i
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)
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l
t
a

(
E
x
p
o
s
e
d

M
i
n
u
s

C
o
n
t
r
o
l
)
0.46
0.41
0.26
1.08
0.50
2.30
1.16
MarketNorms,
All Display Advertisements, 0.70
MarketNorms,
All Display Advertisements, 0.60
211
Rich media
and video
Rich media
without
video
GIF/JPG
Simple
Flash
Aided
brand
awareness
1.9
a
0.9
b

c
0.4
b
Online
advertising
awareness
2.6
a
2. 1
a
2.4
a
2.2
a
Message
association

c
0.7
b
3.7
a
1.0
b
Brand
favorability
2.3
a
0.5
b

c
Purchase
intent
1.2
a
0.5
b

c
larger deltas than campaigns using simple Flash formats.
Specifcally, as shown in Figure 9, campaigns using rich-
media advertisements with video show signifcantly greater
effects on brand favorability, aided brand awareness, and
purchase intent (p<0. 10, two-sided) (see Figure 9).
SUMMARy
Campaigns using rich-media-with-video showed the
strongest deltas across most brand metrics, and particu-
larly in aided brand awareness and lower funnel metrics
such as brand favorability and purchase intent (see Table
2). Rich media without video also showed strong brand
effects and, uniquely among the formats, showed signif-
cant effects across all fve brand metrics. Flash and JPG/
GIF formats, in contrast, showed signifcant effects only in
upper funnel metrics.
0.15
FIGURE 9
Rich-media advertisements outperform Flash advertising format on three branding metrics
0.00
Brand
favorability
Aided brand
awareness
Purchase
intent
2.50
n Delta for Rich Media with Video
n Delta for Simple Flash
1.50
1.00
2.00
0.50
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns using Rich Media with Video N = 37-47, simple Flash N = 262-344.
(* Denotes data points that are statistically signifcant at a 90% confdence level or higher.)
D
e
l
t
a

(
E
x
p
o
s
e
d

M
i
n
u
s

C
o
n
t
r
o
l
)
*2.30
*1.90
*0.36
*1.16
0.26
Source: Dynamic Logic MarketNorms, 2008. Fixed frequency level of 1. Campaigns
using GIF/JPG N = 33-52, rich-media with video N = 37-47, rich-media without video N
= 193-275, simple Flash N = 262-344.
a
Top performing advertising formats
b
Performing advertising formats
c
No signifcant effect
Summary of average advertising format performance by
branding metric
TABLE 2
212
IMPLICATIONS
The results suggest that different advertising types may
be optimal for achieving specifc branding goals, and that
advertisers should strategically choose different advertis-
ing formats based on their desired branding outcomes. For
example, brand advertisers seeking to raise brand aware-
ness or move lower funnel metrics could gain the great-
est advantage by relying on rich-media formats, especially
rich-media advertisements with video. If the goal is to rein-
force or promote specifc messaging, however, GIF or JPG
formats may be more useful.
These fndings also suggest broader insights that could shift
these choices. For example, the strong performance of
GIF or JPG formats on message association suggests that
advertisers have a messaging discipline for these formats
that is not being transferred to other advertising formats.
The limited creative space in GIF and JPG advertisements
forces advertisers to prioritize between showcasing the
brand and showcasing the message. Advertisers looking
to reach message-association goals have been getting, to
date, the best results with the GIF or JPG format. Other
formats, however, potentially could achieve similar results
with the right creative execution. For example, advertisers
may wish to include the brand message on every frame of a
rich-media or simple Flash advertisement to strength the
message association.
Another alternative would be to use tandem or road-
block placements to pair a rich media with video unit
with a GIF or JPG unit focused on message association.
The prevalence of Flash-format advertisements stands in
sharp contrast to their branding performance compared
to the other advertising formats. In this study, the simple
Flash advertising format was the least effective of the ad-
vertising formats studied for improving brand metrics. For
every brand metric that simple Flash was good at, a dif-
ferent format could have been used to produce, on aver-
age, better results. For online advertising awareness, aided
brand awareness, brand favorability, and purchase intent
goals, campaigns using the rich-media-with-video format
showed stronger results than campaigns using simple
Flash. For message association goals, campaigns using JPG
and GIF formats showed stronger results than campaigns
using over simple Flash.
MAKING ADVERTISING FORMAT DECISIONS
The results also suggest certain best practices for making
advertising format decisions:
Plan ahead: Think about your format preferences and
branding goals as early in the process as possible to
avoid limited choices due to impending deadlines.
First impressions count: Rich-media advertisements
with video showed the strongest branding effects at an
exposure frequency of one. Try delivering a rich media
with video advertisement as the frst advertising expo-
sure to your addressable online audience.
213
Do not focus on rich-media fees: Do not let arbitrary
advertisement-serving budget allocations, such as 15
percent of media, prevent you from running the most
effective advertising formats. Instead, factor media fees
and rich-media fees together and optimize from there.
Do not make users work just to get the point: Do not
require users to interact with your rich-media adver-
tisement to get the main message; interaction should
only help users get supplemental or additional infor-
mation. Try adding static messaging elements to your
interactive and animated creative work to improve their
ability to drive message association.
Think twice before using simple Flash: Because Flash
formats were, on average, outperformed by other ad-
vertising formats, they should be held to higher creative
scrutiny rather than viewed as the standard. Be sure
your animation communicates rather than annoys.
REFERENCES
Barry, T. E., and D. J. Howard. A Review and Critique of the Hier-
archy of Effects in Advertising. International Journal of Advertising
9, 2 (1990): 121135.
Bruner, R. E., and M. Gluck. Best Practices for Optimizing Web
Advertising Effectiveness. White Paper, DoubleClick, 2006:
[URL: http://www.doubleclick.com/insight/download Research.
aspx?fleName dc_bpwp_0605.pdf].
Lavidge, R. J., and G. A. Steiner. A Model for Predictive Measure-
ments of Advertising Effectiveness. Journal of Marketing 25, 2
(1961): 5962.
Mallon, K. How Fewer Ads Can Mean More Dollars. iMedia Con-
nection, 2007: [URL: http://www.imediaconnection.com/content/
17169.asp].
Romeo, A., and N. Nyhan. Getting Real: Drivers of Effectiveness
in Online Brand Advertising. White Paper, Dynamic Logic, 2002:
[URL: http://www.dynamiclogic.com/getting_real. pdf].
Weilbacher, W. M., Point of View: Does Advertising Cause a
Hierarchy of Effects? Journal of Advertising Research 41, 6
(2001): 1926.
Metric Question Positive Response Other Responses
Aided brand
awareness
Have you heard of the following brands of
<product category>?
Have heard of
Have not heard of;
Not sure
Online advertising
awareness
Have you seen the following brands of <product
category> advertised online in the past 30 days?
Have seen
Have not seen;
Not sure
Message
association
Which of the following brands, if any, uses the follow-
ing message in its advertising? <brand message>
<test brand>
<any competing
brand>
Brand
favorability
How would you describe your overall opinion about
each of the following brands of <product category>?
Very positive;
Somewhat positive
Neutral;
Somewhat negative;
Very negative
Purchase
intent
Next time you are looking to purchase a <product>,
how likely are you to consider each of the following
brands?
Very likely;
Somewhat likely
Neutral;
Somewhat unlikely;
Very unlikely
Source: Dynamic Logic. Italicized text is customized in each questionnaire to address the product category and brand message used in the campaigns creative work, clients brand,
and competing brands.
APPENDIX
Branding questions used in this report
214
Results from Dynamic Logics AdReaction Study (a recur-
ring online survey that measures consumer perceptions of
various formats of advertising) shows that users continue to
feel that the average appropriate number of ads appearing
over the content of web pages is around two an hour. This is
consistent with the results in the previous AdReaction sur-
veys, conducted in 2003 and 2005.
Not surprisingly, some people feel that over-content, or
intrusive, ads are never appropriate, even to support free
content. But promisingly for advertisers and online publish-
ers, the percentage of people who feel this way has dropped
from 32% in 2003 to 24%, suggesting that people may be
more willing to accept some advertising in exchange for
free content.
When asked if advertising on the sites they visited had in-
creased over the past six months, 71% of respondents said
they felt it had, while only 28% said they havent noticed
a change. From previous research we know there are two
main reasons why consumers perceive an increase in on-
line advertising. First, they visit more websites. Someone
who used to visit a major portal to check mail and news
may now go to a variety of sites their social network
page, a local newspaper site and various sites suited for
their particular hobbies and interests.
The so-called long tail of the web is getting fatter. Some of
the less recognised sites attract less popular brands and
have less strict ad policies. Therefore, on these sites people
are more likely to see more ads and a greater percent-
age of intrusive ad formats, while the major portals and
popular sites have probably maintained or even decreased
the number of over-content ads that appear on their sites,
based on ad effectiveness and user research.
Second, as more well-known brands begin to advertise on-
line, people are aware of more advertising than they were
before, as familiar names catch their eye. Online ads are
more noticeable than before and this could be contributing
to the perception of increased clutter.
AnAlyst speAk:
Users Resistance to Intrusive Ads May
Be Dwindling as They Surf More
by Chri st i nA GoodmAn, heAd of GlobAl mArket i nG And bUsi ness development, dynAmi C loGi C
This article previously appeared in the October 23, 2009 edition of New Media Age, www.nma.co.uk.
While we all know that people want less advertising rather
than more in their lives, many consumers understand its
role in supporting the content they like. Finding the right
balance between the amount of advertising that produces
positive results for brands and what consumers feel is fair
and appropriate in exchange for valuable and relevant con-
tent is important.
24%
35%
27%
10%
none
1 3
4 6
7+
fiGUre 1
number of over-content ads users think are
appropriate on free websites
Source: Dynamic Logic
215
Results from Dynamic Logics AdReaction Study (a recur-
ring online survey that measures consumer perceptions of
various formats of advertising) shows that users continue to
feel that the average appropriate number of ads appearing
over the content of web pages is around two an hour. This is
consistent with the results in the previous AdReaction sur-
veys, conducted in 2003 and 2005.
Not surprisingly, some people feel that over-content, or
intrusive, ads are never appropriate, even to support free
content. But promisingly for advertisers and online publish-
ers, the percentage of people who feel this way has dropped
from 32% in 2003 to 24%, suggesting that people may be
more willing to accept some advertising in exchange for
free content.
When asked if advertising on the sites they visited had in-
creased over the past six months, 71% of respondents said
they felt it had, while only 28% said they havent noticed
a change. From previous research we know there are two
main reasons why consumers perceive an increase in on-
line advertising. First, they visit more websites. Someone
who used to visit a major portal to check mail and news
may now go to a variety of sites their social network
page, a local newspaper site and various sites suited for
their particular hobbies and interests.
The so-called long tail of the web is getting fatter. Some of
the less recognised sites attract less popular brands and
have less strict ad policies. Therefore, on these sites people
are more likely to see more ads and a greater percent-
age of intrusive ad formats, while the major portals and
popular sites have probably maintained or even decreased
the number of over-content ads that appear on their sites,
based on ad effectiveness and user research.
Second, as more well-known brands begin to advertise on-
line, people are aware of more advertising than they were
before, as familiar names catch their eye. Online ads are
more noticeable than before and this could be contributing
to the perception of increased clutter.
AnAlyst speAk:
Users Resistance to Intrusive Ads May
Be Dwindling as They Surf More
by Chri st i nA GoodmAn, heAd of GlobAl mArket i nG And bUsi ness development, dynAmi C loGi C
This article previously appeared in the October 23, 2009 edition of New Media Age, www.nma.co.uk.
While we all know that people want less advertising rather
than more in their lives, many consumers understand its
role in supporting the content they like. Finding the right
balance between the amount of advertising that produces
positive results for brands and what consumers feel is fair
and appropriate in exchange for valuable and relevant con-
tent is important.
24%
35%
27%
10%
none
1 3
4 6
7+
fiGUre 1
number of over-content ads users think are
appropriate on free websites
Source: Dynamic Logic
ACKNOWLEDGMENTS
Points of View: Dede Fitch
Knowledge Points: Dominic Twose
Digital Insights: Sara Beaty, Christina Goodman, Michelle Eule and Ken Mallon
Market Focus: Karen Jones
Millward Brown experts appear at events all over the world presenting on a wide range
of topics in the brands, media, and communications space. To find out how to access
these experts through our Speakers Bureau, please contact Miquet Humphryes.
miquet.humphryes@millwardbrown.com +44 (0) 1926 826179
Produced by Millward Brown Global Communications & Brand Marketing
Millward Brown 2009
www.millwardbrown.com