The role of corporate advertising in building reputation

Serge GiacomoHead of Corporate IdentityShell International

London, 9 October 2009

2

Business depends on stakeholder views

The success of business decisions turns largely on how stakeholders respond

• Effective relationships create value • Good communications leverages trust – gaining recognition and differentiation

from our peers.

Will Governments

allow our projects?

Will investors value our

strategy?

Will staff deliver our objectives

and plans?Will customers

buy our products and services?

Will communities accept our presence?

BiasesHopesPerceptionsFearsSelf-interest

Effective relationshi

ps

3

Stakeholders and their expectationsCustomers, business partners

Delivery, responsive, professional Employees

Stability, participation,

rewards

Media Stories, reality check

AnalystsInvestors

Shareholders

TransparencyPredictable

growthGovernments

RegulatorsCommunities

Responsive dependable

jobs

NGOs - NonGovernmentalOrganizations

Responsibility, sustainability

AcademicsRecruits

Cooperation

career openings

4

Groups of external stakeholders whose opinions, economic and/or political decisions have a potential significant impact on Shell’s business performance

and/or reputation:

Governments, Policy makersNOCs/IOCs

Business decision-makersNGOs/IGOsAcademics

MediaInformation brokers / Next generation SPs

Prioritizing our Corporate Special Publics

5

The Special Publics Engagement Programme (SPEP) is a core element of Shell’s external

communications, with a clear focus on creative and proactive communication, involving PR, advertising

and sponsorships. This activity generates opportunities for direct and face-to-face

engagement opportunities with Shell’s Special Publics

Engaging with Special Publics globally and in key markets

6

Forecourts

High control Low/No control

Website

Display Advertising

TVDigital OutdoorLoyalty

Scheme

SponsorshipsPartnerships Viral

Seeding

SocialMedia

PR

Cove

rage

+

-

Owned Media

Bought Media

Earned Media

From forecourt to face-to-face

Loyalty Awareness Favourability

7

Role of advertising: pave the way to engagement

• Always-n strategy. Continued presence in international media and in key markets

• Serves to keep “the company’s flag flying” in a relevant opinion setting

8 AUG SEP OCT NOV DEC

Search

Search

OWNED MEDIA PLATFORM

DIGITAL DISPLAY DIGITAL DISPLAY DIGITAL DISPLAY

TACT

ICAL

ONLINE FILM

NEFNEF

NEFDIGITAL DISPLAY

DIGITAL DISPLAY

DIGITAL DISPLAY

PPs rest of Shell.com PPs rest of Shell.com

NEF PRESS& DIGITAL DISPLAY

LONG TERM STRATEGIC MEDIA PARTNERSHIPS (OFFLINE & ONLINE)

‘PERMANENT’, HIGH IMPACT, BOLD OUTDOOR ALONG CORRIDORS OF POWER

MEDIA PARTNERSHIPS PRINT DISPLAYDIGITAL DISPLAY

ONLINE FILM

WEBCHAT

Search

EVEN

TST

RATE

GIC

HONE BLOG

WEBCHAT

WEBHAT

REVIEW REVIEW

ONLINE FILM

COPE

NHAG

EN

Owned Channels

Bought Channels

Earned Exposure

N.B. Additional bought media may be required in response to unpredictable occurrences

Example - implementation

9

Global Key markets

Paving the way for engagement through

advertising, sponsorships and

other creative tools

- Adapt and use global materials in local media -Create opportunities to reach out to local SPs by using the global tools -Optimize participation in projects bringing in local perspective

- Implement Energy Dialogues

-Invite local SPs to join web chats, create follow-up engagement opportunities

- Bring local SPs to participate in global events taking place in country-Use global partnerships as template for development of

local/national similar ones

Creating and optimizing

engagement opportunities

The SPEP as an integrated programme