Post on 09-Apr-2018
8/8/2019 Iab Bain Building Brands Summary
1/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
Building Brands Online:
An Interactive Advertising Action P lanNovember 12, 2009
http://www.iab.net/8/8/2019 Iab Bain Building Brands Summary
2/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 2091112 Building Brands Discussion2
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http://upload.wikimedia.org/wikipedia/en/b/b6/AOL_logo.svghttp://www.meredith.com/home.html8/8/2019 Iab Bain Building Brands Summary
3/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 3091112 Building Brands Discussion2
Why care about Building Brands Online?
Direct response and driving transactions is thekiller app for online advertising
but online advertising is not delivering onb r a n d m ar k et er requirements andexpectations
Growth in supply of online inventory creatingprice pressure and commoditization
Trend toward ROI-based and responseadvertising, (versus longer-term brand equity
investments) exacerbated by cyclical downturn
8/8/2019 Iab Bain Building Brands Summary
4/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 4091112 Building Brands Discussion2
Marketers see high value in online, butconsider it a call-to-action medium
2.0
2.5
3.0
3.5
4.0
Average
Displa
y
3.7
Sear
ch
3.7
Mag
azin
e
3.0
Netw
ork
TV
3.0
Cabl
eTV
Newspap
er
2.8
Mobile
2.8
Radio
2.7
Spot
TV
2.6
Media " Value"(5 = Excellent, 1 = Poor)
3.0
-30
-20
-10
0
10
20
30%
Netw
ork
TV
Mag
azin
e
+2
Cabl
eTV
-4
Spot
TV
-7
Nat'l
radio
-10
Mobile
-17
Dis
pla
y
-19
Sear
ch
-20
Newspap
er
-23
Local r
adio
"Reach" vs."Call-to-Action" Ratio
+21
-24
Call-to-action
Reach/brandbuilding
NATIONAL ADVERTISERS
Source: Bain ad buyer survey (02/2009); Bain analysis
8/8/2019 Iab Bain Building Brands Summary
5/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 5091112 Building Brands Discussion2Source: Bain/IAB 2009 Marketer survey; Bain Media 3.0 Study
0
25
50
75
100%
TV Magazine Newspapers Internet
Generating
Familiarity
Creating
Awareness
PromotingConsideration
Driving
Traffic/
Purchase
Intent
$64.4B $13.3B $34.4B $23.1BTotal AdSpend (2008)
PromotingLoyalty
Which marketing objectives are the followingmedia vehicles best suited for?
Brandobjectives
Marketers believe online can be moreeffective at all stages of the purchase funnel
8/8/2019 Iab Bain Building Brands Summary
6/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 6091112 Building Brands Discussion2
0
20
40
60
80
100%
Brand
Marketers(>75% of spend)
Response
Marketers(>75% of spend)
Magazine
Newspapers
TV
Internet
Radio
Other
Outdoor
Weighted above-the-linemarketing budget (2008)
Mobile
Yellow Pgs
Brand marketers expect only modestgrowth in online spend
Brand marketers rely heavily on TV, whileresponse marketers advertise more online
Future mix shift to Online much morepronounced among Response Marketers
0
20
40
60
80%
Internet
2011
2008
TV &
Magazines
2011
2008
Internet
2011
2008
TV &
Magazines
2011
2008
% of above-the-line ad spend
+5
+3
+8 -4
BrandMarketers
ResponseMarketers
Source: Bain/IAB 2009 Marketer survey
8/8/2019 Iab Bain Building Brands Summary
7/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 7091112 Building Brands Discussion2
We need to address five key obstacles tobring more brand advertising online
Ad formats and creative are not innovating withthe medium
We are awash in undifferentiated, low-costinventory
Metrics, metrics everywhere but not the onesthat brand marketers really need
Media companies lack ideas, strategic expertise
and engage too late in the planning process
Marketers want cross-platform campaigns; instead
they get a model rooted in platform-specific silos
1
2
3
4
5
8/8/2019 Iab Bain Building Brands Summary
8/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 8091112 Building Brands Discussion2
Problem: Ad formats and creativeare not innovating with the medium
1
8/8/2019 Iab Bain Building Brands Summary
9/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 9091112 Building Brands Discussion2
Bulk of online advertising volume isineffective for brand building
0
10
20
30
40
50%
Effectiveness for online brand-building
Sponsor-ships
Effective
Extrem
ely
effective
Digitalvideo
Email Socialnetworking
Non-prem.display
Search Premiumdisplay
Richmedia
Leadgen.
Classifieds
1
Source: Bain/IAB 2009 Marketer survey
8/8/2019 Iab Bain Building Brands Summary
10/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 10
1 Solution: more custom executionshowcasing emotional potential of online
Fakeresponsead clutter
Non-standard formats
Interactive and engagingCreative/ technical support from media
Cross-platform integration
Whats
different?
8/8/2019 Iab Bain Building Brands Summary
11/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 11
Non-standard formats
Interactive and engagingCreative/ technical support from media
Cross-platform integration
Whats
different?
1 Solution: more custom executionshowcasing emotional potential of online
S l i i
8/8/2019 Iab Bain Building Brands Summary
12/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 12
Non-standard formats
Interactive and engagingCreative/ technical support from media
Cross-platform integration
Whats
different?
1 Solution: more custom executionshowcasing emotional potential of online
8/8/2019 Iab Bain Building Brands Summary
13/31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 13091112 Building Brands Discussion2
Problem: We are awash inundifferentiated, low-cost inventory
2
2 A i t ti t d
8/8/2019 Iab Bain Building Brands Summary
14/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 14Building Brands discussion document 100109
Endless supply + Response dependency =Relentless path to commoditization
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
10
20
30
$40
6/05
12/05
6/06
12/06
6/07
12/07
6/08
Impressions (MM) CPM
0
200,000
400,000
600,000
800,000
1,000,000
0.0
0.5
1.0
1.5
2.0
2.5
3.0
$3.5
6/05
12/05
6/06
12/06
6/07
12/07
6/08
Impressions (MM) CPM
Banner Ad Impressions & CPM,2005-2008
Rich Media Impressions & CPM,2005-2008
Source: Morgan Stanley; ComScore
Banner AdsImpressions
Banner Ads CPM
2 As inventory continues to expand,marketers have more options at lower cost
2 S l ti d l d d li th
8/8/2019 Iab Bain Building Brands Summary
15/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 15091112 Building Brands Discussion2
Larger-scale,reduced service,efficiency model
Larger-scale,more automated,efficiency model
High touch,high cost,
premium model
2 Solution: develop and deliver threedistinct triple playservice models
Marketerobjectives
Drive customers to site
Generate transactions andimmediate ROI
Supplement buys in othermedia
Generate wide exposure
at low cost
Build brand awarenessand purchase intent
Deliver custom, high-
impact campaigns
Productofferings
Banners, rich media
Mix of premium and non-premium positions
Banners, rich media
Mix of premium and non-premium positions
Content/placementcontrol
Digital video, rich media
Premium position banners
Social/UGC applications
Cross-platform integration
Keydecisionmaker
Buying agency(downstream)
Creative agency (large
clients only)
Brand marketing team
Creative agency(upstream)
Buying agency
Brand marketing team
Creative agency(upstream)
Buying agency
Response Brand reach Brand engagement
8/8/2019 Iab Bain Building Brands Summary
16/31
Embrace non premium for reach/response;2
8/8/2019 Iab Bain Building Brands Summary
17/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 17091112 Building Brands Discussion2
Description: Demo-focusedvertical ad networks
Partners with audiencessimilar to MTVN
Ad network by contentarea
Premium ad units,campaign reporting andoptimization
Suite of advertisingon proprietary sites,(People, Sports
Illustrated, Time)
Ads only shown onbranded sites
Impact: Large publishers get higher ad rates andrevenue from small publisher sales
Small publishers access scale - reach
marketers upstream in buying process
Publisher can deepenadvertiserrelationships across
properties
Partner with smaller sites to offergreater reach and scale
Network ow n properties
Embrace non-premium for reach/response;build scale through networks or partnerships
2
Source: Advertising Age, MediaPost, ClickZ, Marketing Pilgrim
8/8/2019 Iab Bain Building Brands Summary
18/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 18091112 Building Brands Discussion2
Problem: metrics, metricseverywhere but not the ones thatbrand marketers really need
3
Brand marketers maintain preference for3
8/8/2019 Iab Bain Building Brands Summary
19/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 19091112 Building Brands Discussion2
0
20
40
60%
Brand
awareness
#1
#2
#3
Likelihood to
recommend
Conversion
rates
Click
through
Message
association
Time spent
on page
View
through
Percent of respondents
Purchase
intent
Favorability Recall Unique
visitors
Ad
impressions/views
Interaction
rate
Engagement
time
Which metrics are most valuable for brand-building campaigns?
What brandmarketers w a n t
What brandmarketers g et
Brand marketers maintain preference fortraditional brand impact metrics
3
Solution: New metrics can help marketers better3
8/8/2019 Iab Bain Building Brands Summary
20/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 20091112 Building Brands Discussion2
Key measurement needs
Combined target audience reach and frequency
Unified metrics across multiple sites (de-duplicated) Share of voice
Brand recall and awareness within target audience
Link to sales impact
True number ofunique impressions
Consistent standards enabling comparison across mediaplatforms
Engagement/interactivity measures
Brand equity measures
Reach/frequency
Brand
Impact
Currencystandards
Reliability/
consistency
Solution: New metrics can help marketers bettercompare and fully value brand campaigns
3
8/8/2019 Iab Bain Building Brands Summary
21/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 21091112 Building Brands Discussion2
Problem: Media companies lackideas, strategic expertise and
engage too late in the process
4
Brand marketers desire high-impact4
8/8/2019 Iab Bain Building Brands Summary
22/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 22091112 Building Brands Discussion2
0
10
20
30
40%
#2
#1
% of respondents
Deep
knowledgeof marketer
and industry
Effectivetargeting
Strongrelationship
with marketer
High impactonline creative
Customizedoptions
Digital advtknowledge
Digital
advtsuccessmetrics
Best
contextualfit for ads
Cross-
platformcampaign
optionsFull ad
placementtransparency
Streamlined
purchasingoptions
Brand marketers want
ca tegor y exp er t i se ,cus tom iza t i on and a
re l at i onsh ip m indset
Which capabilities are most important in supportingyour online advertising?
Brand marketers desire high impactpartnerships with their media companies
4
Source: Bain/IAB 2009 Marketer survey
8/8/2019 Iab Bain Building Brands Summary
23/31
Solution: Leverage new capabilities and4
8/8/2019 Iab Bain Building Brands Summary
24/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 24091112 Building Brands Discussion2
Brandcampaign
design
Creativeprocess
Mediaplanning
Overallmarketingobjectives
Mediabuying
Campaignideas
Support incampaign
design Consumer
insights
Customizationto marketercampaignobjectives
Full creativeexecution
Proactivemediaplanninginvolvement
Cross-platformintegration
Response toRFPs
Pro-activedevelopment of
ad packages Ad allocation
and placement
Strategicsupport
Creativeservices
Planningsupport
Selling
Move upstream
Marketing P lanning P rocess
Media CoSupport
Solution: Leverage new capabilities andscale to move upstream in the value chain
OnlineOnline Online
8/8/2019 Iab Bain Building Brands Summary
25/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 25091112 Building Brands Discussion2
Problem: marketers want cross-platform campaigns; instead get
platform-specific silos
5
After many fits and starts, integrated5
8/8/2019 Iab Bain Building Brands Summary
26/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 26091112 Building Brands Discussion2
Q: What percent of your total above-the-linebudget is spent on each type ofmarketing campaign?
Leading brand marketers arereorganizing teams aroundcampaigns, not platforms
Agencies are being forced to followsuit, often through new teamstructures
0
20
40
60
80
100%
2008 In 3 years
Cross-platform
campaigns
Separate but
simultaneouson- and offline
campaigns
Singlemedia
vehiclecampaigns
Percent of brand marketer
above-the-line spend
After many fits and starts, integratedmarketing is becoming a necessity
Most media companies retainseparate organizations acrossplatforms
Source: Bain/IAB 2009 Marketer survey
Marketers who use the same creative5
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27/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 27091112 Building Brands Discussion2
0
20
40
60
80
100%
2008
Separateagencies
for onlineand offline
Sameagency for
online andoffline
Agency usage
Most marketers use thesame agency for onlineand offline creative
0
20
40
60
80
Sameonline/offlineage
ncy
Separateonlin
e/offlineagencies
Effective
targeting
High impact
online creative
Digital
advertising
knowledge
Online agency ratings(% respondents choosing 4 or 5)
Deepknowledgeof marketer
and industry
Strongrelationship
with marketer
Customizedoptions
and tend to be much more satisfied w ith onlinecapabilities than when using separate agencies
Marketers who use the same creativeagency for the whole egg are more satisfied
Source: Bain/IAB 2009 Marketer survey
S l ti R th l f t t5
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SFR 28091112 Building Brands Discussion2
ILLUSTRATIVE
Solution: Revamp the sales force structure
Typical legacysales force approach
Example futuresales force approach
Media company
Onlinesales force
Offlinesales force
Media company
Transactionalonline
sales force
Multi-platformengagement
sales force
Most needsEngagement
needs
CPG
Separate online and offline salesforces, impractical for cross-platformcampaigns
One-size-fits-allapproach
Limited category expertise
Vertical-specific sales forces with high-touch and innovation focus
Separate reach/ response sales force
Ability to meet reach requirements asnecessary for brand customers
Reach/response
needs
Engagementneeds
Auto Etc.
Summary: online media companies need to
8/8/2019 Iab Bain Building Brands Summary
29/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 29091112 Building Brands Discussion2
y pchange both their offerings and sales approach
Create distinct value propositions for each leg of theTriple Play
Sell cross-platform solutions,not units with deeperrelationships and more differentiated ad offerings
Deepen audience insights and strategic marketing skills
to help increase branding impact
Build category sales forces for brand advertisers, w ithseparate sales force for reach/response selling
Establish scale to enhance selling/delivery of brand solutions
Collaborate on common standards and metrics
For the IAB: focus on five key areas to
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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 30091112 Building Brands Discussion2
yimprove online branding value
Create ongoing forums with marketers for discussion ofbranding approach, limitations, and key developmentsEngaging
marketers
Onlinecreative
Identify and communicate success factors for marketers,
agencies, and publishers in executing cross-platform creative
Automatedprocesses
Help develop low-cost and/ or automated processes for
brand reach and response buys
Establish common technical standards for the industry
Targeting Address current scale and data limitations for targeting
Identify ways to adjust for overlapping audience in reach buys
Measurement Work with other associations to establish clear standards for
measurement ofbrand impact and reach/ frequency
1
2
3
4
5
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31/31
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
SFR 31091112 Building Brands Discussion2
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