P. 1
IAB Bain Building Brands Summary

IAB Bain Building Brands Summary

|Views: 19|Likes:
Published by Ashley Ma

More info:

Published by: Ashley Ma on Aug 08, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

09/04/2013

pdf

text

original

Building Brands Online

:
November 12, 2009

An Interactive Advertising Action Plan

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.

Project sponsors

SFR

091112 Building Brands Discussion2

2

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.

Why care about Building Brands Online?
• Direct response and driving “transactions” is the “killer app” for online advertising … • …but online advertising is not delivering on brand marketer requirements and expectations • Growth in supply of online inventory creating price pressure and commoditization • Trend toward ROI-based and “response” advertising, (versus longer-term brand equity investments) exacerbated by cyclical downturn
SFR 091112 Building Brands Discussion2

3

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.

5 10 3.7 3.5 -10 -17 -19-20 -23 2.7 20 30% +21 "Reach" vs. Bain analysis N et w o M rk ag T V Ca azi bl ne Sp e T Na ot V t'l T ra V M dio D obi is le pl N Sea ay ew r Lo sp ch ca ap l r er ad io Reach/ brand building SFR Call-toaction 091112 Building Brands Discussion2 4 This information is confidential and was prepared by Bain & Company solely for the use of our client.8 2. it is not to be relied on by any 3rd party without Bain's prior written consent. 1 = Poor) 4.0 Average 2.0 3. but consider it a call-to-action medium NATIONAL ADVERTISERS Media "Value" (5 = Excellent.8 2.0 3.Marketers see high “value” in online. "Call-to-Action" Ratio 3.0 3.7 2. .0 Di sp l Se a y M ar c N aga h et z w in or e Ca k T N ble V ew sp T V ap M er ob il Ra e Sp dio ot TV -30 -24 Source: Bain ad buyer survey (02/2009).6 0 +2 -4 -10 -20 -7 2.0 3.

4B SFR Internet $23. it is not to be relied on by any 3rd party without Bain's prior written consent.0 Study 5 This information is confidential and was prepared by Bain & Company solely for the use of our client. Bain Media 3.4B Magazine $13.Marketers believe online can be more effective at all stages of the purchase funnel Which marketing objectives are the following media vehicles best suited for? 100% Promoting Loyalty 75 Driving Traffic/ Purchase Intent Promoting Consideration 50 25 Generating Familiarity Creating Awareness Brand objectives 0 Total Ad Spend (2008) TV $64. .3B Newspapers $34.1B 091112 Building Brands Discussion2 Source: Bain/IAB 2009 Marketer survey.

while response marketers advertise more online Weighted above-the-line marketing budget (2008) 100% Mobile Yellow Pgs Other Outdoor 80 Radio Newspapers Magazine 40 Internet 20 TV 0 Brand Marketers (>75% of spend) Response Marketers (>75% of spend) 0 20 40 2008 2011 60 Future mix shift to Online much more pronounced among Response Marketers % of above-the-line ad spend 80% +3 60 +8 -4 Internet TV & Magazines 2008 2011 Internet TV & Magazines Source: Bain/IAB 2009 Marketer survey Brand Marketers SFR 2008 2011 Response Marketers 091112 Building Brands Discussion2 2008 2011 6 +5 This information is confidential and was prepared by Bain & Company solely for the use of our client.Brand marketers expect only modest growth in online spend Brand marketers rely heavily on TV. . it is not to be relied on by any 3rd party without Bain's prior written consent.

. metrics everywhere … but not the ones that brand marketers really need Media companies lack ideas. it is not to be relied on by any 3rd party without Bain's prior written consent. low-cost inventory Metrics. instead they get a model rooted in platform-specific silos SFR 091112 Building Brands Discussion2 2 • 3 • 4 • 5 • 7 This information is confidential and was prepared by Bain & Company solely for the use of our client.We need to address five key obstacles to bring more brand advertising online 1 • Ad formats and creative are not innovating with the medium We are awash in undifferentiated. strategic expertise and engage too late in the planning process Marketers want cross-platform campaigns.

it is not to be relied on by any 3rd party without Bain's prior written consent. .1 Problem: Ad formats and creative are not innovating with the medium SFR 091112 Building Brands Discussion2 8 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. 091112 Building Brands Discussion2 Source: Bain/IAB 2009 Marketer survey SFR 9 This information is confidential and was prepared by Bain & Company solely for the use of our client.1 Bulk of online advertising volume is ineffective for brand building Effectiveness for online brand-building 50% 40 Effective Sponsorships Extremely effective 30 20 10 0 Search Digital video Email Premium display Rich media Social networking Non-prem. display Lead Classifieds gen. .

. it is not to be relied on by any 3rd party without Bain's prior written consent.1 Solution: more custom execution showcasing emotional potential of online Fake response ad clutter What’s different? •Non-standard formats •Interactive and engaging •Creative/technical support from media •Cross-platform integration SFR 10 This information is confidential and was prepared by Bain & Company solely for the use of our client.

1 Solution: more custom execution showcasing emotional potential of online What’s different? •Non-standard formats •Interactive and engaging •Creative/technical support from media •Cross-platform integration SFR 11 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. .

1 Solution: more custom execution showcasing emotional potential of online What’s different? •Non-standard formats •Interactive and engaging •Creative/technical support from media •Cross-platform integration SFR 12 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. .

it is not to be relied on by any 3rd party without Bain's prior written consent. . low-cost inventory SFR 091112 Building Brands Discussion2 13 This information is confidential and was prepared by Bain & Company solely for the use of our client.2 Problem: We are awash in undifferentiated.

.000 30.000 400.000 12/05 12/06 12/07 6/05 6/06 6/07 6/08 0 0 10 30 CPM $40 800.000 0 Endless supply + “Response dependency” = Relentless path to commoditization Source: Morgan Stanley.000 2. it is not to be relied on by any 3rd party without Bain's prior written consent. ComScore Building Brands discussion document 100109 SFR 14 This information is confidential and was prepared by Bain & Company solely for the use of our client. marketers have more options at lower cost Banner Ad Impressions & CPM.000 20.0 200.000 0. 2005-2008 Impressions (MM) 1.0 Banner Ads Impressions Banner Ads CPM Rich Media Impressions & CPM.0 1.5 6/05 6/06 6/07 12/05 12/06 12/07 6/08 0.000 10.000 25.000 CPM $3. 2005-2008 Impressions (MM) 35.2 As inventory continues to expand.0 2.000 5.000.5 3.5 600.5 1.000 20 15.

efficiency model Larger-scale. rich media • Mix of premium and nonpremium positions • Banners. rich media • Premium position banners • Social/UGC applications • Cross-platform integration • Brand marketing team • Creative agency (upstream) • Buying agency Larger-scale.2 Solution: develop and deliver three distinct “triple play” service models Response Brand reach Brand engagement Marketer • Drive customers to site • Supplement buys in other • Build brand awareness objectives • Generate transactions and and purchase intent media immediate ROI • Generate wide exposure • Deliver custom. . more automated. it is not to be relied on by any 3rd party without Bain's prior written consent. reduced service. efficiency model SFR High touch. high cost. highat low cost impact campaigns Product offerings • Banners. rich media • Mix of premium and nonpremium positions • Content/placement control Key decision maker • Buying agency (downstream) • Creative agency (large clients only) • Brand marketing team • Creative agency (upstream) • Buying agency • Digital video. premium model 091112 Building Brands Discussion2 15 This information is confidential and was prepared by Bain & Company solely for the use of our client.

gender.g. age.2 Super-charge offerings: segment service levels and match to customer needs and value ILLUSTRATIVE Custom solutions Full creative/ customization support Individual ad space creation or customization and creative support for key accounts “Flexible” nonstandard options Non-standardized ad options that allow for “efficient customization” Multi-platform integration Full cross-platform menu Large number of cross-platform options throughout all properties of media company Single-property cross-platform Cross-platform “bundles” within single property of media company Enhanced targeting options Custom/ behavioral targeting Ability to selectively target individuals based on past behavior and preferences Proprietary audience insights Proprietary data on audience behaviors and characteristics (e.) General demographic statistics Basic information on demographics of audience (i. etc. it is not to be relied on by any 3rd party without Bain's prior written consent. .e. etc.) SFR Marketing support Category expertise High-touch category experts provide extensive marketing support to key accounts Assigned marketing lead Designated account lead providing moderate marketing support to key accounts Basic sales support Marketer interacts with general sales team on as needed basis Enhanced offering Portfolio of standard products Platform-driven sales approach Platform-specific sales forces (even within same media property) Basic offering Range of standardized ad options to allow “plug and play” for creative 091112 Building Brands Discussion2 16 This information is confidential and was prepared by Bain & Company solely for the use of our client. consumption trends.

2 Embrace non-premium for reach/response. MediaPost. Sports • Partners with audiences • Premium ad units. .reach marketers upstream in buying process • Publisher can deepen advertiser relationships across properties Source: Advertising Age. it is not to be relied on by any 3rd party without Bain's prior written consent. Illustrated. Marketing Pilgrim SFR 091112 Building Brands Discussion2 17 This information is confidential and was prepared by Bain & Company solely for the use of our client. ClickZ. (People. build scale through networks or partnerships Partner with smaller sites to offer greater reach and scale Network own properties Description: • Demo-focused vertical ad networks • Ad network by content • Suite of advertising area on proprietary sites. Time) similar to MTVN campaign reporting and optimization • Ads only shown on branded sites Impact: • Large publishers get higher ad rates and revenue from small publisher sales • Small publishers access scale .

it is not to be relied on by any 3rd party without Bain's prior written consent. metrics everywhere… but not the ones that brand marketers really need SFR 091112 Building Brands Discussion2 18 This information is confidential and was prepared by Bain & Company solely for the use of our client. .3 Problem: metrics.

3 Brand marketers maintain preference for traditional brand impact metrics Which metrics are most valuable for brand-building campaigns? Percent of respondents 60% What brand marketers want What brand marketers get #3 40 #2 20 #1 0 Brand awareness Likelihood to Conversion recommend rates Purchase Favorability Recall intent Click through Unique visitors Message association Time spent View on page through Ad Interaction Engagement impressions/ rate time views SFR 091112 Building Brands Discussion2 19 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. .

.3 Solution: New metrics can help marketers better compare and fully value brand campaigns Key measurement needs • Combined target audience reach and frequency Reach/ frequency • Unified metrics across multiple sites (de-duplicated) • Share of voice • Brand recall and awareness within target audience • Link to sales impact Brand Impact Reliability/ • Consistent standards enabling comparison across media consistency platforms • Engagement/interactivity measures “Currency” • Brand equity measures standards SFR 091112 Building Brands Discussion2 • True number of “unique” impressions 20 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.

. it is not to be relied on by any 3rd party without Bain's prior written consent.4 Problem: Media companies lack ideas. strategic expertise and engage too late in the process SFR 091112 Building Brands Discussion2 21 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. customization and a relationship mindset 30 #2 20 10 #1 0 Deep knowledge of marketer and industry Strong relationship with marketer Customized options Digital advt success metrics Digital advt knowledge Effective targeting Source: Bain/IAB 2009 Marketer survey High impact online creative Best contextual fit for ads Crossplatform campaign options Streamlined purchasing options Full ad placement transparency 22 SFR 091112 Building Brands Discussion2 This information is confidential and was prepared by Bain & Company solely for the use of our client.4 Brand marketers desire high-impact partnerships with their media companies % of respondents 40% Which capabilities are most important in supporting your online advertising? Brand marketers want category expertise. .

it is not to be relied on by any 3rd party without Bain's prior written consent.. creative support • Demographic expertise (e. women) • Relationships with marketers.4 Solution: Adapt capabilities and learnings from offline and portal sales teams Current capabilities • Marketer knowledge and relationships • Product integration.g. customer understanding • Consumer insights • Customization. creative support • Consumer insights • Deep category expertise. . creative agencies • Category-specific offerings and insights • Creative services and customization support • More comprehensive targeting options Television Networks Online portals/ search Online capability needs Magazines • Ability to deliver cross-title packages through corporate sales • Transactional sales model. focused on buying agencies • Limited marketing/creative support Online publishers SFR 091112 Building Brands Discussion2 23 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.4 Solution: Leverage new capabilities and scale to move upstream in the value chain Marketing Planning Process Overall marketing objectives Brand campaign design Creative process Online Media planning Online Media buying Online Media Co Support Strategic support • Campaign ideas • Support in campaign design • Consumer insights Creative services Planning support Selling • Response to RFPs • Pro-active development of ad packages • Ad allocation and placement • Customization • Proactive to marketer media campaign planning objectives involvement • Full creative execution • Crossplatform integration Move upstream SFR 091112 Building Brands Discussion2 24 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. .5 Problem: marketers want crossplatform campaigns. instead get platform-specific silos SFR 091112 Building Brands Discussion2 25 This information is confidential and was prepared by Bain & Company solely for the use of our client.

often through new team structures • Most media companies retain separate organizations across platforms 60 40 20 Crossplatform campaigns 0 2008 In 3 years SFR 091112 Building Brands Discussion2 Source: Bain/IAB 2009 Marketer survey 26 This information is confidential and was prepared by Bain & Company solely for the use of our client. integrated marketing is becoming a necessity Q: What percent of your total above-the-line budget is spent on each type of marketing campaign? Percent of brand marketer above-the-line spend 100% Single media vehicle campaigns Separate but simultaneous on. it is not to be relied on by any 3rd party without Bain's prior written consent. . not platforms • Agencies are being forced to follow suit.and offline campaigns 80 • Leading brand marketers are reorganizing teams around campaigns.5 After many fits and starts.

.5 Marketers who use the same creative agency for “the whole egg” are more satisfied Most marketers use the same agency for online and offline creative… Agency usage 100% Separate agencies for online and offline …and tend to be much more satisfied with online capabilities than when using separate agencies Online agency ratings (% respondents choosing 4 or 5) 80 80 60 40 Separate online/offline agencies 40 20 Same agency for online and offline 20 0 2008 0 Same online/offline agency Effective targeting 60 Source: Bain/IAB 2009 Marketer survey Deep knowledge of marketer and industry High impact Digital online creative advertising Strong Customized knowledge relationship options with marketer SFR 091112 Building Brands Discussion2 27 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.

impractical for cross-platform campaigns • “One-size-fits-all” approach • Limited category expertise • Vertical-specific sales forces with hightouch and innovation focus • Separate reach/response sales force • Ability to meet reach requirements as necessary for brand customers SFR 091112 Building Brands Discussion2 28 This information is confidential and was prepared by Bain & Company solely for the use of our client.5 Solution: Revamp the sales force structure ILLUSTRATIVE Typical legacy sales force approach Media company Example future sales force approach Media company Online sales force Offline sales force Multi-platform “engagement” sales force CPG Auto Etc. . it is not to be relied on by any 3rd party without Bain's prior written consent. Transactional online sales force Most needs Engagement needs Engagement needs Reach/ response needs • Separate online and offline sales forces.

with separate sales force for reach/response selling • Establish scale to enhance selling/delivery of brand solutions • Collaborate on common standards and metrics SFR 091112 Building Brands Discussion2 29 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. .Summary: online media companies need to change both their offerings and sales approach • Create distinct value propositions for each leg of the “Triple Play” • Sell cross-platform “solutions.” not “units” – with deeper relationships and more differentiated ad offerings • Deepen audience insights and strategic marketing skills to help increase branding impact • Build category sales forces for brand advertisers.

and key developments 2 3 Automated processes 4 Online creative 5 Engaging marketers SFR 091112 Building Brands Discussion2 30 This information is confidential and was prepared by Bain & Company solely for the use of our client.For the IAB: focus on five key areas to improve online branding value 1 • Work with other associations to establish clear standards for Measurement measurement of brand impact and reach/frequency • Address current scale and data limitations for targeting Targeting • Identify ways to adjust for overlapping audience in reach buys • Help develop low-cost and/or automated processes for brand reach and response buys • Establish common technical standards for the industry • Identify and communicate success factors for marketers. agencies. and publishers in executing cross-platform creative • Create ongoing forums with marketers for discussion of branding approach. limitations. it is not to be relied on by any 3rd party without Bain's prior written consent. .

.SFR 091112 Building Brands Discussion2 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.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->