Global Marketing and Research Trends

Kym Penhall Managing Director Ipsos ASI Asia-Pacific

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Trends, like horses, are easier to ride in the direction they are going.

John Naisbitt

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The  “Perfect  storm”  Trends…

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The  “perfect  storm”  trends…

Performance for many consumer products and daily services are becoming similar This challenges what can be meaningfully said about product features and how we differentiate ourselves.

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The  “perfect  storm”  trends…

The increasing “Pro-sumer” – Consumers are becoming more informed, more connected, more demanding, and less loyal (guilt-free disloyal).

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The  “perfect  storm”  trends…

Just as brand marketing needs greater impact, traditional advertising approaches are evolving: Technology to skip TV ads, Software to prevent spam and Pop-Ups Privacy laws are restricting the power of digital

opportunities

Increasing product parity, a more informed consumer and  changing  media  habits  make  it  difficult  for  today’s  marketer to differentiate. It is critical to engage the consumer with your brand.

We do not feel manufacturers should be focusing their business success on low prices. Hard  to  beat  the  ‘private  label’  and  low-cost price brands On-going promotions train consumers to only buy at

discounted prices. Do not want to cut profits.

Implications:

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The  “perfect  storm”  trends…

Price Comparison (more expensive)

5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5

Price vs. Purchase Intent Source: Ipsos ASI Equity*Builder Database, CHINA

1.5

2.0

3.0

3.5

4.5

5.0

Purc

hase

Inte

rest

Very Little Correlation

It is very important to get consumers to want to buy your brands, …at  full  price.  

How?      Leverage  … Innovation Created marketing properties, icons, spoke-people,

sponsorships, etc The human senses Sell the emotional experience of the brand

Implications:

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20%

46% 49%

58%64%

70%77%

26 % 28 %35 %

10 %

59 %46 %42 %

With many similar products in any given category, the role of emotions + human values is becoming more important for brand management.

0 1-2 3-4 5-6 7-8 9-10 11+

Source: Ipsos ASI R&D Dec 2007, N.A.: 75+ brands across 15+ categories

Def

inite

ly

Prob

ably

Purc

hase

Inte

nt %

Number of Emoti*Vator Associations

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Created Marketing Associations Add to the Brand

r= .71

(icons/characters/spokesperson) %

Source: Ipsos-ASI R&D Data

Presence of "Marketing" Associations to Brand

Bra

nd C

omm

itmen

t %

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The Communication Trends…

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The communication trends

Digital marketing will continue to grow + evolve: Less banner advertising & viral videos; More focus on social network opportunities, More online TV advertising, and Exploration of greater mobile targeting.

15 15

Where the Dollars Go Online; 2009

Source: IAB

1/3 is intrusive; the rest is consumer

driven.

Display 22%

Search 48%

Classifieds 10%

Sponsorship 2%

Lead generation 6%

Rich media 7%

Broadband video

4%

Email 1%

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‘Search’  is  growing %

of T

otal

Rev

enue

Internet Ad Revenue Share by Advertising Format -2004 -2009

Search Display Banners Classifieds Rich Media and Digital Video

Lead Generation Sponsorships

FY2004 FY2005 Fy2006 Fy2007 Fy2008 Fy2009

Source: IAB

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Internet users in Hong Kong as at 31st December 2011

penetration

Source: Internet World Stats

Internet Penetration December 31st 2011

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China 38.4%

India 10.2%

Indonesia 22.4%

Japan 80.0%

Sth. Korea 82.7%

Malaysia 61.7%

Philippines 33.0%

Singapore 77.2%

Taiwan 70.0%

Thailand 27.4%

Australia 89.8%

New Zealand 84.5%

Source: Internetworldstats.com

19 Source: Ipsos estimate

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US$2,660m, 20% US$10,100m, 22% US$1,642m, 19% US$346m, 21%

US$130m, 12% US$410m, 8% US$20m, 1% US$109m, 2%

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users past 6 months 2012.

penetration

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World ranking in terms of total Facebook users (past 6 months)

Ranking in terms of total country population (Dec. 2011)

Ranking in terms of Facebook penetration

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Monaco 107%

Falkland Islands 90%

Iceland 72%

Gibraltar 67%

Turks & Caicos 62%

Brunai 61%

Faroe Islands 58%

Qatar 58%

Norway 57%

Singapore 56%

Chile 56%

Taiwan 53%

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Monaco 107%

Iceland 72%

Gibraltar 67%

Turks & Caicos 62%

Brunai 61%

Faroe Islands 58%

Qatar 58%

Norway 57%

Singapore 56%

Chile 56%

Taiwan 53%

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Iceland 72%

Brunai 61%

Qatar 58%

Norway 57%

Singapore 56%

Chile 56%

Taiwan 53%

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Chile 56%

Taiwan 53%

Facebook posts 1 per second on launch day

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28 Source: Hollywood Reporter Website

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30

31

The communication trends

Television will/has come back with a greater appreciation as a touchpoint that really works

32 32

Television is still very strong, and growing

+11.9%

In Hong Kong actual TV advertising spend 2010/11 increased 13%

In December 2009, GroupM predicted that spending on British TV would fall by 0.2% in 2010.

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The communication trends

Through the evolution, Creative Content remains key, more so for social networking, buzz, and advocacy. Less banner advertising & viral videos; Growing pressure to find THE (creative)

Big Idea to leverage the potential of the Internet.

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The communication trends

We  observe  in  our  ASI  databases  that  ‘creative’  explains 75+% of the variance in campaign success.

There is a large range in in-market performance based on  the  right  creative,  for  the  right  objectives…

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Creative is key; wide range in recall levels

Max

0 10 20 30 40 50 60 70 80 90

Average

Coupon Insert Magazine

On-line Ads Cinema In-Store

Sponsorships News/PR

Posters Promos

Radio Word of Mouth

POS Television

Price Packaging

Performance Channel

Average Recall Across Studies (when present) Source: Ipsos ASI Brand*Graph Database, N.A.

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And there is a large variation in impact too

Lowest Percentile in mix

= Average across categories (when present)

0 20 40 60 80 100

Packaging Channel

Performance Word of Mouth

On-line Ads

Television News/PR

POS Sponsorships

Magazine

Radio Cinema

Price

Posters

In-Store Promos Website

FSI

Top Percentile in mix Lowest Percentile in mix

Range In Impact By Touch Point (Ranked LOWEST to HIGHEST below) Source: Average results from 20+ observations (when present), across multiple industries + studies

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The communication trends

Convergence: Media silos blend away. Media, creative, and touchpoint integration. Greater holistic approach (for the Big Idea). Integrated approach to the three screens.

Since the impact (ROI) of great creative is several times better than just average creative, advertisers should do everything in their power to create and leverage great creative content. The opportunity cost is equal to (if not more than) the cost of

the whole media budget.

Consider your creative development process. Is it best designed to deliver excellent creative? Should the process evolve with the right incentives to reward

the desired outcomes?

Implications:

Find  the  “big  idea”  early,  pre-test many ideas early, incentivize the right (desired) outcomes. This approach has proven to produce better quality adverts,

faster and cheaper

Implications:

Marketers may be best served to plan their creative content and media plans together as one exercise (and not separately as two distinct functions). Plan holistically across all channels (touchpoints)

The Frequency component of GRPs may decrease, so

advertisers should focus more on the importance of Reach,  with  more  frequent  changes  in  “on  air”  creative.

Implications:

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The Research Trends…

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The  “research”  trends…

Growing interest in media-related research. Greater demand for integrated and cross-media learning, including ROI

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54%

40%34%

22 %15 %

29 %

18-34 yrs 35-49 yrs 50+ yrs

Recall does not follow consumption

Watch MORE TV per week

Source: Ipsos ASI databases; North America

Claimed Ad Recall

Correct Volunteered Ad Recall

We observe in our databases significant differences between the

consumption of media versus the efficacy of the same media.

TV Ad Recall (Ad*Graph database)

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Packaging

Channel / Shelf Performance

Word of Mouth

On-Line

Television

Posters In-Store

Website

Promo

POS

Sponsorship

Magazine

Radio

FSI

Cinema

Price

0

10

20

30

40

50

60

0 2 4 6 8 10 12 14 16

Average (excluding product touch points)

Average (excluding product touch points)

Brand*Graph 360 Summary Audit Source: Average results from 20+ observations (when present), across multiple industries + studies

Aver

age

Rec

all %

Share of Impact %

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The communication trends

Through the evolution, Creative Content remains key, more so for social networking, buzz, and advocacy. Less banner advertising & viral videos; Growing pressure to find THE (creative)

Big Idea to leverage the potential of the Internet.

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The  “research”  trends…

Growing appreciation for the irrational (emotional) consumer: importance of emotions, emotional response, irrationality, nudging, CSR, and human/brand values

We have talked about many concepts here today: The importance of emotions + human values The importance of great creative The Emergence of new digital touchpoints within the whole

campaign mix The difference between media consumption data and true

efficacy of the same media channels And the evolution of consumer/market research

We would now like to share with you some insights to

our own evolution within Ipsos, and how it brings new advantages  to  advertisers/marketers…..

Implications:

Hong Kong Focus

Queeny Wui Associate Director of Ipsos ASI Hong Kong

A few tips to improve ROI on Advertising

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It is not (only) about money

1

Ads Do Not Wear In

Although TV ads do have long-term brand equity-building potential, the most marked impact is in the short-term.

A strong ad will achieve high levels of recall in the minds of consumers within the first burst of spend. A poor performing ad will not.

A  bad  ad  doesn’t  get  any  better  simply because you show it more often

17 14

0 00

10

20

30

40

50

60

70

80

90

100

%

Claimed Ad Recall ( norm = 40%)Proven Recall Any Ad

AdultsCreative #1

177234

218

190259

454

Creative #2

4

184

192

226

235

260

242248420

0

50

100

150

200

5-Ja

n-97

2-Fe

b-97

2-M

ar-9

7

30-M

ar-9

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27-A

pr-9

7

25-M

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14-S

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TRP'

S

51

Recognition flattens out after around 1500 GRPs

<=500 500-999 1000-1499 1500-1999 2000-2999 3000+

38 41 42

52 52 54

52

% A

d Re

cogn

itio

n

Source: Hong Kong Brand*Graph database Build in Ad recognition by GRPs

GRPs

Persuasion Peaks Quickly After Airing

Persuasion also peaks quickly. Most campaigns peaked by 1000 GRPs and within 12 weeks from start of airing.

• Time at which purchase interest showed maximum increase before starting to decline. • Source: Hong Kong Data Fitted to global Adgraph database

53

% In

crea

sed

inte

rest

In

bra

nd

1-3 4-6 7-9 10-13 14-19 20+

19 18

29

23

14 13

# of weeks Advertising

400 600 800 1200 2000 3000+ Approx cumulative

GRPs

It’s  about  creativity!

2

Click to add text here

Creative is King!

Note: insert graphs, tables, images here

• Creative quality accounts for 75% of variance in campaign success.

• In-Market Spend Will Not Offset Weak Creative.

• Strong creative can achieve higher recall in-market with less support than weak creative with a high level of media support.

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49

25

0

10

20

30

40

50

60

70

%

Proven Recall Brand A (Strong Creative, Less Support)

Proven Recall Brand B (Weak Creative, High Level of Support)

Minimize Decay (More Important than Building Recall)

3

Minimizing Decay is More Important than building recall

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0

10

20

30

40

50

60

70

80

90

100

%

Creative F (848) Creative D

(855)

Creative B (452)

Creative E (763)

Creative C (452)

Creative A (1235)

0

250

500

7-Ja

n-01

28-J

an-0

1

18-F

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TARP’s

Correct Proven Ad Recall

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• More continuous media would avoid off-air periods, and decay

• It  is  likely  better  to  think  in  terms  of  minimizing  the  “down”  than  maximizing  the  “up”  because  the  “up”  has  diminishing  returns

57

Creative Pools should not be aired at the same time

4

Creative Pools Should Air Sequentially

Percentage Point Gain in Proven Recall at 1000 TRPs

59

• Choosing to air 2 or more pieces of creative concurrently is less effective vs. Dedicating all media weight to one piece of copy.

• In our general experience, pools of ads dilute the amount of media exposure per ad, which is not off-set or enhanced by the possible “synergy”  of  following  this  practice

Adding an Additional Media Touch Point is Better than Overspending on One

Medium

5

Click to add text here Note: insert graphs, tables, images here

• All media appear to build with diminishing returns. The recommendation is to focus your media plan on building reach quickly and not to drive recall too high in any one medium.

• If can afford to maximise the medium, add a second to extend the reach.

Note: TV outperforms other media per $100k

0

10

20

30

40

50

60

70

0 $ $ $ $ $ $ $ $

Radio

% penetration

TV

Outdoor

Magazine Newspaper

61

Adding an additional media touch point is better than overspending on one medium

Multi-media Campaigns With Same Creative Focus Have Higher Recall/ Persuasion

Creative synergies in multi-media campaigns can increase consumer understanding of messaging objectives/persuasiveness (especially for equity-type advertising).

%

62

New Advertising Research Solutions

Queeny Wui Associate Director of ASI Hong Kong

Effective  Advertising  is…

well told.

a good story, [the strategy sets up the

story]

[the creative delivers the story]

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… how you can optimize your communication quickly with

deep qualitative insights AND strong quantitative measures

Early Stage Tools

Next*AdLab & Big*Idea Combined qual/quant early stage testing

Quantitative:  Reliable  results  based  on  Ipsos  ASI’s  validated  philosophy  on  effective  advertising (Reach and Response) combined with

Qualitative: Going beyond consumer declarations to understand what is behind the scores. Allows real time interaction between client, agency and researcher. Provides immediate results & recommendations on which actions need

to be taken

Before

your eyes in 1 day

Stage 2 Stage 1

How do consumers react spontaneously?

QUANT

Why? What is the potential?

QUAL

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Check the expected ROI Firm Action Standards Marketing Accountability

Impeccable Management of the Advertising Process

The Idea is Good, the Creative Routes are promising… Ready to Spend the Big Advertising Money?

Final Stage Gate with Next*Connect

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Forced Exposure

Intent Ratings Communication & Diagnostics

Brand Ratings

Recruit Sample & Start

Interview

Consumer Watches Ads In Media &

Views Movie Trailer

Brand Choice “Pre”

Brand Choice “Post”

Next Day

Recall Interview

What do people really remember?

TEST

CO

NTRO

L

Recruit Sample & Start

Interview

Matched Control Group

Intent Ratings

Communication & Diagnostics Brand Ratings

No Ad Exposure

Test vs. Control Observation

Next*Connect Methodology

Next*Connect  reflects  today’s  crowded          multi-media environment

Next*platform multi-media environment greatly enhances our ability to work with media beyond television.

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A. Respondent Chooses Movie Preview

B. Respondent Exposed To Advertising

With Test Ad(s) Embedded

C. Respondent Exposed To Chosen Movie

Preview

Prin

t TV

O

nlin

e In

-Sto

re

Out

door

Next*Connect for full evaluation and diagnostics

Identifies the

emotions created by

your ad and reveals the

impact these

emotions have on

your brand.

Emotional Response & Engagement

Studies your

message - assessing its clarity

and its effect on

your brand perception.

Message Diagnostics

Pinpoints which

elements of your ad are contributing

to its success, which are detracting, and what you can

address to improve

performance.

Reaction Diagnostics

Highlights how

effective your ad is

at motivating consumers

to take action.

Persuasion

Showcases the potential for your ad to build brand

equity.

Brand Equity

Combines the effects of

brand related recall

and persuasion into a single indicator of

ad effectivenes

s that is validated to in-market

sales.

Copy Effect Index

Examines how likely your ad is

to get noticed

and whether or not your

ad is being linked to

your brand.

Brand Related Recall

The Ipsos ASI approach: Design Principles

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• Consumers attention is not focused on the advertising (so it is the job of the ad to engage the consumer)

Test in context

• Allow comparisons across media • And even multi-media campaign

testing

Test on the same integrated platform as

other media

• To make sure we understand the full range of how digital can work

Allow consumers to engage with the ad as they would in-market (e.g., click through)

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