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Transcript of LAMAC Seminar Miami 2009
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Page 1
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Crisis without Precedents
- Video CNN -
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The day is born from the dark night
- Video -
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Don Schultz
Professor Emeritus of Service at Northwestern
UniversitySpecialist in integrated marketing and
communications
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Don Schultz
Promote to the right consumer; not just everyone.
Indentify motives.
Build relationships, not just reach.
People buy from people they like.
Use media with which the consumers are involved(engagement).
Ratings dont measure relationships, they measure opportunities-to-see.
The real issues are affinity and engagement.
Use multiplatform communications.
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CEOs
Worldwide
Regional
Agencies Top Management
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Premise
The world is going through an economic crisis without
precedents.Media planning is going through a process of
modernization.
Now more than ever media buyers and advertisers
have to change the way they do things and find new
inspirational concepts.
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Questions
1. Are you in agreement with this premise?
2. What do you think should be the role of cable TV?
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Questions
1. Are you in agreement with this premise?
2. What do you think should be the role of Cable TV?
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MainardoMainardo dede NardisNardis
CEOCEO WordwideWordwide OMDOMD
Are you in agreement with this premise?
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A mix of art and science
MainardoMainardo dede NardisNardis
CEOCEO WordwideWordwide OMDOMD
Are you in agreement with this premise?
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Creative brand-consumer connection
MainardoMainardo dede NardisNardis
CEO Worldwide OMDCEO Worldwide OMD
Are you in agreement with this premise?
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AndrewAndrew SwinandSwinand
President of Global OperationsPresident of Global Operations StarcomStarcom
Are you in agreement with this premise?
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Discrete market segmentation
AndrewAndrew SwinandSwinand
President of Global OperationsPresident of Global Operations StarcomStarcom
Are you in agreement with this premise?
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Exploit the digital era through interactive communications
AndrewAndrew SwinandSwinand
PresidentPresident ofofGlobalGlobal OperationsOperations StarcomStarcom
Are you in agreement with this premise?
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DavidDavid BylesByles
LLder Latinoamder Latinoamricarica MindshareMindshare
Are you in agreement with this premise?
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Are you in agreement with this premise?
Mariano RomMariano RomnnCEO RegionalCEO Regional MediaComMediaCom
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Crisis equals Opportunity
Are you in agreement with this premise?
Mariano RomMariano RomnnCEO RegionalCEO Regional MediaComMediaCom
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Are you in agreement with this premise?
EdgarEdgar TarazonaTarazonaPresidentPresident LatAmLatAm
Universal McCannUniversal McCann
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The constant is change
Are you in agreement with this premise?
EdgarEdgar TarazonaTarazonaPresidentPresident LatAmLatAm
Universal McCannUniversal McCann
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Questions
1. Are you in agreement with this premise?
2. What do you think should be the role of Cable TV?
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MainardoMainardo dede NardisNardis
CEO Worldwide OMDCEO Worldwide OMD
What do you think should be the role of Cable TV?
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Pay TV is the largest provider of qualitycontent in the region
MainardoMainardo dede NardisNardis
CEO Worldwide OMDCEO Worldwide OMD
What do you think should be the role of Cable TV?
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The content give you the context to create relationships
The opportunity is in the partnership
MainardoMainardo dede NardisNardis
CEO Worlwide OMDCEO Worlwide OMD
What do you think should be the role of Cable TV?
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AndrewAndrew SwinandSwinand
PresidentPresident ofofGlobalGlobal OperationsOperations StarcomStarcom
What do you think should be the role of Cable TV?
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Pay TV offers the opportunity to define audiences byinterests and experiences
AndrewAndrew SwinandSwinand
PresidentPresident ofofGlobalGlobal OperationsOperations StarcomStarcom
What do you think should be the role of Cable TV?
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The right message, in the right place, in the right context is moreeffective. Contextually relevant content is more memorable, more
action orientated and drives better purchase intent
AndrewAndrew SwinandSwinand
President of Global OperationsPresident of Global Operations StarcomStarcom
What do you think should be the role of Cable TV?
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DavidDavid BylesByles
LLder Latinoamder Latinoamricarica MindshareMindshare
What do you think should be the role of Cable TV?
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Channels are BRANDS
DavidDavid BylesByles
LLder Latinoamder Latinoamricarica MindshareMindshare
What do you think should be the role of Cable TV?
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Pay TV owns strong brands, with values,Based on content of quality
DavidDavid BylesByles
LLder Latinoamder Latinoamricarica MindshareMindshare
What do you think should be the role of Cable TV?
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Integrate brands with content
DavidDavid BylesByles
LLder Latinoamder Latinoamricarica MindshareMindshare
What do you think should be the role of Cable TV?
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Think of Pay TV as multiplatform brands, not just TV
DavidDavid BylesByles
LLder Latinoamder Latinoamricarica MindshareMindshare
What do you think should be the role of Cable TV?
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Mariano RomMariano Romnn
CEOCEO MediaComMediaCom
What do you think should be the role of Cable TV?
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We should not be afraid of innovation
Mariano RomMariano Romnn
CEOCEO MediaComMediaCom
What do you think should be the role of Cable TV?
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Edgar TarazonaEdgar Tarazona
PresidentPresident UniversalUniversal McCannMcCann LatamLatam
What do you think should be the role of Cable TV?
h d hi k h ld b h l f C bl ?
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Take advantage of Pay TVs content and explore new waysof brand integration
Edgar TarazonaEdgar Tarazona
PresidentPresident UniversalUniversal McCannMcCann LatamLatam
What do you think should be the role of Cable TV?
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The business world agrees with theacademic world that there is a need for
change
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It is imperative to accelerate the adoption
of new models of thinking
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The new model is being built based on
ENGAGEMENT
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What is
engagement?
How do we apply it
to brand
development?
How do we apply
it to mediastrategy?
How is it
measured in
TV?
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Bobby Calder
Distinguished Professor of Marketing,Kellogg School of Management
Bobby Calder
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Bobby Calder
We are in a transition to a new model of marketing
that will prevail over the challenge of hyper-
competition.
The new trend in branding is building brands based
on motivational engagement.
The media companies need to transition from selling
time and space to selling their brands.
These brands can help provide the motivationalengagement that the new model of branding demands.
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What are we doing in Latin America in
regards to this?
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Pioneer study on engagement inTelevision in Latin America
E g g t d
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Engagement and
Advertising Effectivenessin Television in Latin
America
Bobby CalderProfessor Charles H. Kellstadt de Marketing, Kellogg School of Management
Director of the Center for Cultural Marketing
Edward C. MalthouseProfessor of Integral Marketing Communications in Northwestern University
Specialized in media and data mining
Co-editor of The Journal of Interactive Marketing
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Bobby Calder
Ed Malthouse
Objectives
Evaluating the relationship between engagement andadvertising effectiveness
Evaluating the profile of several programs and channelsbased on the different experiences that make up
engagement
Evaluating how congruency between message andcontext potentializes advertising effectiveness
49
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Bobby Calder
Ed Malthouse
Non-Objectives
We are not here to say that one program is better thananother
We are not here to say that one channel is better thananother
We are not here to say Pay TV is better than BroadcastTV
We are not here to evaluate any networks quality
50
Why these two professors?
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Bobby CalderEd Malthouse
y p
Because they are the two professors with the longest history of
exploring engagement in media.
They have explored engagement in a sophisticated way, based onhuman experiences.
Bobby
Calder
Ed
Malthouse
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Why OTX?
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Bobby CalderEd Malthouse
They have developed many studies on engagement in
media.
They have a specialized study to evaluate advertising
effectiveness.
Why these three countries?
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Bobby CalderEd Malthouse
Argentina, Colombia and Mexico represent 60% of Pay TV
Households in Latin America
Distribution of Pay TV Households - LatAm
Mexico, 22%
Rest of LatAm,
40%Colombia, 18%
Argentina,21%
What is Engagement?
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Bobby CalderEd Malthouse 55
What is Engagement?
55
Engagement is the group ofexperiences of a person
towards a mediums content.
Experiences are the thoughts, feelings and beliefs of an
audience about a medium.
How can we catalogue these experiences?
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Bobby CalderEd Malthouse 56
Social
Utilitarian
Projection
InspirationalEmotionalIdentity
Social
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Bobby CalderEd Malthouse 57
This program gives me something to talk about. It frequently comes up in conversations.
I love talking about it with my friends and peers.
Utilitarian
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Bobby CalderEd Malthouse
This programs gives me good advice and tips that I can apply inmy daily life.
I get ideas just watching it.
I learn how to do new things.
Projection
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Bobby CalderEd Malthouse
This program takes me away from my daily life, I can picture
myself in the places and times that it shows.
When I see it I can escape my reality.
It helps me relax
Inspirational
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Bobby CalderEd Malthouse
It makes me feel that I can do important things in my life, and it
inspires me to match what other people have done.
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Identity
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Bobby CalderEd Malthouse
It makes me feel like I belong to a club
This channel reflects the way I want others to perceive me
How do we evaluate an experience?
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Bobby CalderEd Malthouse
Example: ProjectionIt is evaluated by asking the following questions:
Can you indicate how much you agree with the following statements?
This is the type of the program that takes my mind off things
that are going on in my life.
This is the type of program that makes me picture myself in theplaces and times that it describes.
This is the type of program that allows me to forget my reality
when I watch it.
Experiences: Social, Utilitarian, Projection and Inspiration
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Bobby CalderEd Malthouse
Technical Info
Technical Info
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Bobby CalderEd Malthouse
Methodology
Argentina, Colombia and Mexico
Online survey
Each participant was recruited based on the TV genre that he/she
watches
The same 4 spots were imbedded in each mini-program The study was divided in 6 cells for each country: 4 cells for Pay TV and
2 for Broadcast TV
Target Men (50%) and women (50%) 18-54
Have Pay TV
Watch TV for more than 10 hours a week
Sample
1350 surveys
225 surveys per cell (divided by the three countries)
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Bobby CalderEd Malthouse
Results: Engagement in Latin America
Key finding
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Bobby CalderEd Malthouse
We found that in all countries, all cells and all programs
there is a positive correlation between engagement and
advertising effectiveness
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Bobby CalderEd Malthouse
Engagement and advertising effectiveness
Greater engagement = Greater Purchase Intent
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Bobby CalderEd Malthouse
Mexico Ch1 - Beer
Mexico Ch 2 - Movie
Mexico Ch 3 - Auto
Mexico Ch 4 - Cleaner
Colombia Ch 1 - Beer
Colombia Ch 2 - Movie
Colombia Ch 3 - Auto
Colombia Ch 4 - Cleaner
Argentina Ch 1 - Beer
Argentina Ch 2 - Movie
Argentina Ch 3 - Auto
Argentina Ch 4 - Cleaner
Purchase Intent(Congruent Ad)
(Top 2 Box - indexed to country overall)
Less Engagement More
Engagement
LessPurchase
Intent
MorePur
chase
Inten
t
Attitude towards Ad per Brand in Mexico
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Bobby CalderEd Malthouse
3.37
3.05 3.07 3.022.942.66 2.75 2.61
113 115 113104
0
1
2
3
4
5
Audi Victoria Terminator Glade
AttitudeTowardsth
eAd
0
20
40
60
80
100
120
140
GrowthIndex
People with high engagement with the program
People with low engagement with the program
Growth Index
Attitude towards the ad is calculated based on the following questions:
Would you describe the ad as emotive/motivating/likeable?
Average Index: 114
Attitude towards Ad per Brand in Argentina
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Bobby CalderEd Malthouse
3.133.4
3.11 3.092.8
3.27
2.812.68
112104
111115
0
1
2
3
4
5
Renault Heineken Harry Potter Lysoform
At
titudetowardstheA
d
0
20
40
60
80
100
120
140
GrowthIndex
People with high engagement with the program
People with low engagement with the program
Growth Index
Average Index: 110
Attitude towards the ad is calculated based on the following questions:
Would you describe the ad as emotive/motivating/likeable?
Attitude Towards ad per Brand in Colombia
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Bobby CalderEd Malthouse
3.47 3.433.53
3.462.98
3.16 3.212.97
116109 110
116
0
1
2
3
4
5
Audi Redds Terminator Glade
A
ttitudetowardsthead
0
20
40
60
80
100
120
140
GrowthIndex
People with high engagement with the program
People with low engagement with the program
Growth Index
Average Index: 113
Attitude towards the ad is calculated based on the following questions:
Would you describe the ad as emotive/motivating/likeable?
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Purchase Intent by Brand in Argentina
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Bobby CalderEd Malthouse
6.79
7.9
7.05
8.07
66.86 6.24
7.73113 115 113
104
0
1
2
3
4
5
6
7
8
9
10
Renault Heineken Harry Potter Lysoform
PurchaseIntent
0
20
40
60
80
100
120
140
GrowthIndex
People with high engagement with the program
People with low engagement with the program
Growth Index
Purchase intent is measured in a 1-10 scale
Average Index: 111
Purchase Intent by Brand in Colombia
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Bobby CalderEd Malthouse
7.78
8.89
8.058.48
5.98
8.15
7.346.74
130 126109110
0
1
2
3
4
5
6
7
8
9
10
11
Audi Redds Terminator Glade
PurchaseIntent
0
20
40
60
80
100
120
140
GrowthIntent
People with high engagement with the program
People with low engagement with the program
Growth Index
Purchase intent is measured in a 1-10 scale
Average Index: 119
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Bobby CalderEd Malthouse
A single program can have different engagement levelsdepending on the experience
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Bobby CalderEd Malthouse
Engagement takes place at three levels:
Channel
Program
Spot
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Bobby CalderEd Malthouse
Mexico - Programs
Two and a Half Men Warner Projection - Mexico
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Bobby CalderEd Malthouse
6.48
5.11
7.16
4.36
Social Utilitarian Projection Inspirational
Experience
Engageme
nt
0-10 Scale
Two and a Half Men helps me escape from my daily
life
24 Fox Channel Projection and Social - Mexico
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Bobby CalderEd Malthouse
7.43
5.92
7.82
5.14
Social Utilitarian Projection Inspirational
Experience
Engag
ement
24 projects me to a different reality, and gives me
something to talk about with my friends
0-10 Scale
News Hechos Noche Azteca 13 Social Mexico
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Bobby Calder
Ed Malthouse
7.89
6.566.28
5.66
Social Utilitarian Projection Inspirational
Experience
Engag
ement
Hechos Noche is a source of conversation topicsfor me
0-10 Scale
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Bobby Calder
Ed Malthouse
Mexico - Channel
History Channel Social Mexico
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Bobby Calder
Ed Malthouse
8.54
7.8
8.12
7.48
Social Utilitarian Projection Inspirational
Experience
Engag
ement
History Channelgives me something to talk about
0-10 Scale
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Bobby Calder
Ed Malthouse
Argentina - Programs
Numb3rs A&E Projection - Argentina
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Bobby Calder
Ed Malthouse
6.015.7
7.13
4.89
Social Utilitarian Projection Inspirational
Experience
Engag
ement
Watching Numb3rs takes me away from myreality
0-10 Scale
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W hi T l f N id i h
News Telefe Social - Argentina
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Bobby Calder
Ed Malthouse
7.03
6.58
5.144.97
Social Utilitarian Projection Inspirational
Experience
Engag
ement
Watching Telef News provides me withconversation material
0-10 Scale
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Bobby Calder
Ed Malthouse
Argentina - Channel
TNT Projection - Argentina
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Bobby Calder
Ed Malthouse
5.35
4.08
5.78
3.6
Social Utilitarian Projection Inspirational
Experience
Engag
ement
Watching TNTtakes me away from reality
0-10 Scale
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Bobby Calder
Ed Malthouse
Colombia - Programs
How I Met Your Mother takes my mind off my daily life
How I Met Your Mother Fox Life Projection and social - Colombia
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Bobby Calder
Ed Malthouse
7.19
6.56
7.36
6.45
Social Utilitarian Projection Inspirational
Experience
Engag
ement
How I Met Your Mothertakes my mind off my daily life,and gives me something to talk about with my friends
0-10 Scale
C.S.I. AXN Projection - Colombia
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Bobby Calder
Ed Malthouse
7.16
6.58
7.59
5.16
Social Utilitarian Projection Inspirational
Experience
Engag
ement
I like to imagine Im part of the C.S.Iteam
0-10 Scale
hi h C l i
News Caracol Social - Colombia
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Bobby Calder
Ed Malthouse
7.6
6.49
5.82
5.36
Social Utilitarian Projection Inspirational
Experience
Engagement
Watching the News on Caracol gives me
something to talk about
0-10 Scale
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Bobby Calder
Ed Malthouse
Colombia - Channel
Discovery Channel teaches me useful and
Discovery Channel Utilitarian Colombia
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Bobby Calder
Ed Malthouse
8.46
8.8
87.87
Social Utilitarian Projection Inspirational
Experience
Engagement
Discovery Channelteaches me useful and
practical things
0-10 Scale
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Bobby Calder
Ed Malthouse
Congruency
What is congruency?
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Bobby Calder
Ed Malthouse
It is creating a coincidence between the experience of an
ad, and the experience of a program
Congruency potentializes the existent engagement aconsumer has with the medium
Therefore, it increases advertising effectiveness
Key Finding
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Bobby Calder
Ed Malthouse
We found examples which prove that congruency
contributes to increase the advertising effectiveness
created by engagement
Two studies combined for the first time
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Bobby Calder
Ed Malthouse
Mexico
WITHOUT CONGRUENCYWITHOUT CONGRUENCY WITH CONGRUENCYWITH CONGRUENCY
Mexico
Audi in Clean House of Discovery H&H: there is NO
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Bobby Calder
Ed Malthouse
y
congruency
4
5
6
7
8
9
10
Social Utilitarian Projection Inspiration
Program
Ad
Engagem
ent
Mexico
Audi in 24 of FOX: there IS congruency
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Bobby Calder
Ed Malthouse
4
4.5
5
5.5
6
6.5
7
7.5
8
8.5
Social Utilitarian Projection Inspiration
Program
AdEngagement
Purchase intent increases 8 5% when there is
Mexico
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Bobby Calder
Ed Malthouse
Purchase intent increases 8.5% when there is
congruency
6.7
7.3
Without Congruency With Congruency
Audi Purchase Intent
8.5%
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Ed Malthouse
Argentina
WITHOUT CONGRUENCYWITHOUT CONGRUENCY WITH CONGRUENCYWITH CONGRUENCY
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Argentina
Lysoform in Clean House: there IS congruency
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Bobby Calder
Ed Malthouse
0
1
2
3
4
5
6
7
8
9
10
Social Utilitarian Projection Inspiration
Program
AdEngagement
Purchase intent increases 7% when there is
congruency
Argentina
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Bobby Calder
Ed Malthouse
7.5
8
Without Congruency With Congruency
Lysoform Purchase Intent
7%
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Bobby Calder
Ed Malthouse
Colombia
WITHOUT CONGRUENCYWITHOUT CONGRUENCY WITH CONGRUENCYWITH CONGRUENCY
Colombia
Glade in C.S.I. : there is NO congruency
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0
1
2
3
45
6
7
8
9
10
Social Utilitarian Projection Inspiration
En
gagement
Program
Ad
Colombia
Glade in Clean House: there IS congruency
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0
1
2
3
4
5
6
7
8
9
10
Social Utilitarian Projection Inspiration
Program
Ad
En
gagement
Purchase intent increases 9% when there is
Colombia
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congruency
8.2
9
Without Congruency With Congruency
Glade Purchase Intent
9%
Conclusions
Engagement is a universal concept, it can be observed inall the countries and categories included in our analysis
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all the countries and categories included in our analysis
Engagement is a composition of different experiences
Engagement has a direct relationship with advertisingeffectiveness
Each channel has a different profile according to itsexperiences
When there is congruency between the experience of anad and the experience of a program, there is a positiveeffect on the advertising effectiveness
Creating congruency is more an art than a science
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Conclusions
Conclusions
The crisis is real.
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Academics and top industry executives agree on the need for
change.
The new paradigm is being built based on the concept ofengagement.
We conducted this study to make this new reality evident inLatin America.
Channels, agencies and advertisers have the opportunity andthe responsibility to take action.
k d h f
For Agencies and Advertisers
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Take into consideration the measurement of engagement as a
key variable in media planning not just ratings and CPM.
Engagement as a
syndicated metric
Consensual concept
Systematic and holisticmeasurement
Integrated to optimizers
Partial and individual
advancements
Research on specific brands and
media
Associated indicators / Symptoms
Pre-optimization or weighting
We need to sell differently.
For Networks
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We need to sell differently.
We need to understand the essence of our brand.
We need to understand the essence of our clientsbrand.
Sell brands, not just time and space.
Dont be afraid to innovate, be bold.
Dont focus only on the numbers, but move towardsengagement and brand value.
Construct creative, organic and multiplatform
proposals that will help us create an interactivecommunication.
For All of Us
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This is a historic opportunity for us to play aleading role in the change of our industry.
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Copyright LAMAC 2009