1

The iPad as an Advertising Vehicle:

The Consumer Perspective

Michael HaggertySVP, US Director of Research and Marketing Accountability

Universal McCann

2

Understand the consumer to win

Tablet Usage Mindsets

and Personas Response to

Tablet Advertising

1

2

3

Behaviors

Cohorts

Advertising Needs

3

Proprietary sources

Universal McCann’s 2011 Media in Mind Study

Universal McCann’s 2011 C.A.T. Study

Universal McCann& Time Inc. Neurometric Responseto Advertising in iPad Magazines

4

Tablet Usage

Men 18-24

Men 25-34

Men 35-44

Men 45-54

Men 55+

Wom 18-24

Wom 25-34

Wom 35-44

Wom 45-54

Wom 55+

5%

14% 12% 12% 10%5%

8%11%

15%8%

6%

10%10% 9%

10%

7%

11%12%

13%

11%

Currently Own Intend to Purchase

Tablet ownership / Intent to purchase

Source: UM Media in Mind

We predict women will drive tablet growth in 2011

Compact Size Convenience Functionality Wanted Latest Technology

5%

22% 22%

42%

16%

26% 24% 25%

Men Women

Source: UM Media in Mind

Reasons for purchasing tablets

Women want the portability

Men want the gadget

Daily usage & sharing

How Often do You Use Your iPad? How Many People Use Your iPad?

Sev-eral

times per day56%

Once per day31%

Few times week11%

Less often2%

Only me; 37%

Two 48%

Three or more 15%

Source: UM/Time Inc Neurometric iPad Study

Frequently Used Frequently Shared

How many apps have you paid for?

Less than half62%

About half27%

More than half11%

Source: UM/Time Inc Neurometric iPad Study; UM Media in Mind

Paying for & downloading apps:Many and mostly free

Men are 40% more likely to pay for apps

Tablet owners download an average of 18

apps

Thinking about the magazines you presently subscribe to, how likely are you to get their editions for your iPad when they become available?

Extremely26%

Very39%

Somewhat26%

Not Likely9%

65% want their magazines on iPad

Source: UM/Time Inc Neurometric iPad Study

Interest in magazine subscriptions as iPad editions

Source: UM/Time Inc Neurometric iPad Study

Top three words or thoughts when using your iPad…

Escape

Connected

Learn/Expand Knowledge

Fun or EnjoyableExpress myself

Daily Routine

Pass Time

0

50

100

Source: UM Channel Allocation Tool

Tablet attributes A fun way to learn and pass the time

Less about self-expression and connectivity

12

Mindsets and Personas

Slight male skew

Median Age: 38

Median HHI: $142K

Married w/kids

Graduate degree

Employed, professional / mgr.

By the numbers: Tablet owners

Source: UM Media in Mind

Is this group really so

cohesive?

What about fanboys?

What about women?

Need to dig deeper…

Values

•Organization & Convenience

• Self-image & Personality

• New Ideas

Attitudes

•Design

• Technology

• Electronics purchasing

Values cluster segmentation:iPad birds of a feather flock together

TotaliPad Owners

Source: UM Media in Mind 2011;

K-means segmentation(statistical process that clusters naturally occurring mindsets)

TotaliPad Owners

group 1

(35%)

group 2(29%)

group 3

(36%)

3 iPad owner mindsets emerge…

group 1

(35%)

group 2(29%)

group 3

(36%)

3 iPad owner mindsets emerge…

Source: UM Media in Mind 2011;

“Susan”The Simplicity Craver

“Ryan”The On-Demand

Lifestyler

“Dan”The Family Enabler

Age 44

$95k HHIDivorced

Kids: pre-teensSuburban, Midwest

Urban, West

Age 30

Urban/Suburban, Northeast

Age 40Married

Single

$200k HHI

$130k HHIKids: age 3-11

No Kids

Reason for buying iPad:Compact size, functionality

Reason for buying iPad:Wanted latest tech

Reason for buying iPad:Functionality, wanted latest tech

Source: UM Media in Mind 2011;

3 Different types of iPad owners

Trend setterTrend seeker Influencer

Tech as simplifier

Driven by style

Buys high end tech to impress

Tech as entertainment enabler Tech as connector

Driven by style Driven by performance

Buys high end tech “because I can”

Buys high end tech for functionality

Family EnablerOn-Demand LifestylerSimplicity Craver

18

Why should we care?

Family EnablerOn-Demand LifestylerSimplicity Craver

Because Susan turns to her tablet to be a content simplifier.

Advertisers should engage her by giving her the tools to organize her hectic life.

Because Ryan lives his life online, from banking to dating.

Advertisers should engage him by giving him access to make his digital life entertaining and fun.

Because Dan turns to tech to get informed about his passions, interests and needs.

Advertisers should engage him by giving him access to content so he can decide for himself.

19

Response to Tablet Advertising

High

Low

PositiveNegative

Cogn

itive

Res

pons

e

Emotional Response

Bio-sensory involvement map

Hig

hLo

w

- +

Highly engaged and interested

Relaxed, enjoyable experience

Thinking hard or frustrated

Uninterested or disengaged

Drawn In

Relaxed

Processing

CheckedOut

Source: UM/Time Inc Neurometric iPad Study

Hig

hLo

w

Cogn

itive

Res

pons

e

Emotional Response- +

Of 23 ads tested, only 1 failed to engage readers on an emotional or cognitive level

High neurometric ad response

How do we define a positive

experience?

Cogn

itive

Res

pons

e

Emotional Response

Fail

Propulsion

Source: UM/Time Inc Neurometric iPad Study

Features liked most in Ads in iPad Magazines

Which of the following features would you be most interested in seeing in the advertising in magazines on your iPad?

Play sounds

Music

Animation

Watch a TV commercial

Photography

Link to web site for more information

360 degree view of featured product

View photo galleries or slide shows

Tap to view more product features or information

Play a video

34%

36%

40%

41%

55%

64%

67%

71%

73%

75%

Source: UM/Time Inc Neurometric iPad Study

Interactive ad features are a must

Drive propulsion to generate brand interest

Ad 1 Ad 2 Ad 3 Ad 4 Ad 5 Ad 6

Ad 7 Ad 8 Ad 9 Ad 10 Ad 11

Ad 12

Ad 13 Ad 14 Ad 15 Ad 16 Ad 17 Ad 18 Ad 19 Ad 20 Ad 21 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Predicted Look for more information Actual Look for more information

r2 = 81%

• Propulsion leads to higher time spent with an iPad magazine ad• Propulsion spurs Brand Interest

Source: UM/Time Inc Neurometric iPad Study

24

What you need to know

Tablet Usage Mindsets

and Personas

Response to Tablet

Advertising

1

2

3

• 2011 = Rise of women• Share-ability• Preference for free apps = prevailing Internet mindset

• Mindsets drive usage motivations• Advertisers, content developers and tech providers should heed these need states

• Most ads currently engage left & right brain successfully• Interactivity is key• Propulsion = success