Graham Page, EVP Head of Global Solutions

MULTIPLE AND CONFLICTING PERSPECTIVES ON WHAT THE MARKETING IMPERATIVE TO MAXIMISE GROWTH SHOULD BE

SALIENCE:top of mind awareness, the quality of standing out and grabbing attention

SALIENCE IS UNDENIABLY IMPORTANT

0 40 80120

160200

Salience index of different brand types

Source: Brandz

IconicStar

MainstreamGeneric

AspirationalLimitedFighter

OutsiderSpecialist

AUDIO VISUAL CHANNELS PLAY AN IMPORTANT PART IN DELIVERING SALIENCE

TV

Online Video

+2.41%+1.22%

0

% U

plift

in m

etric

pos

t exp

osur

e

+1.15%

Magazines

Source: Magnetic/Millward Brown 2015Setting trends measure: Online video n=8, TV n=60, Mags n=16, Radio n=17, News n=17, Online Display n=54, OOH n=37, Cinema n=15. 88 UK studies. Impact per person reached.

THE POTENTIAL AND UNINTENDED CONSEQUENCE OF PURSUING SALIENCE ALONE

VALUABLE BRANDS HAVE FIVE KEY PROPERTIES

Consumers feel an

affinity for them

Consumers feel they will

perform well and

meet their needs

They are seen as different

or unique in the category

They are dynamic and set category

trends

They are top of mind to consumers

Meaningful DifferenceMillward Brown Meaningfully Different Framework 2013

Salience

BEING MEANINGFULLY DIFFERENT MATTERS

Meaningful Difference Salience

216163 160165

123153

Brand perceptions among repeat & non repeat buyers

Repeat buyer Non-repeater

Brand buyers who go on to repeat purchase are more likely to perceive brands as meaningful and different, but salience makes little difference

1. CLOSER LINK BETWEEN MEANINGFUL DIFFERENCE AND REPEAT PURCHASE

Source: Combined MB & Worldpanel study, actual purchase behaviour and attitudinal data

2. SALIENCE FAILS TO PREDICT PRICE PREMIUM

Source: PowerPurchase studies, 42 different brands

BUT MEANINGFUL DIFFERENCE DOES…

Low M

eaningfu

l Differe

nce

Medium M

eaningfu

l Differe

nce

High M

eaningful D

ifference0.002.004.006.008.00

Brand-Driven Price-Driven

Aver

age

Pric

e Pa

id

Source: PowerPurchase studies, 42 different brands

3. A ‘MEANINGLESS’ BRAND THAT INCREASES SALIENCY WILL GROW

Source: 2012/3 compared to 2007/8 for 2,301 brands measured in BrandZ

BUT DRIVING SALIENCY FOR A MEANINGFULLY DIFFERENT BRAND WOULD DRIVE SALES EVEN MORE

They have the foundation and competitive edge to maximise growth

Source: 2012/3 compared to 2007/8 for 2,301 brands measured in BrandZ

DifferentMeaningful Salient

Foundation Competitiveedge

Growthlever

BRANDS NEED MEANINGFUL DIFFERENCE AS WELL AS SALIENCE

HOW DO WE HELP GUIDE BRANDS THROUGH THEIR MEDIA CHOICES?

MEANINGFUL:having a real importance or value to consumers that delivers against their functional and emotional needs

PERONI ACHIEVES AFFINITY BY DIALING UP HERITAGE

2008 2010 2012 2014 201580

85

90

95

100

105

110Peroni - Affinity

BIG VISUAL IMPACT MEDIA ACHIEVE BRAND AFFINITY

Cinema

Magazines+3.62%+1.53%

% U

plift

in m

etric

pos

t exp

osur

e

+1.89%

OOH

Source: Magnetic/Millward Brown 2015Affinity Measure: OOH n=12, TV n=15, Newspaper n=8, Online display=10, Radio n=8, Magazine n=3, Cinema n=9, Online video n=3

MANY HEALTHCARE & FINANCE BRANDS HAVE DRIVEN SUCCESS THROUGH FUNCTIONAL NEEDS

BUPA

Nurofen

Colgate

Pampers

Visa

0 20 40 60 80 100 120 140 160 180

Meets Needs Index

INFORMATIVE MEDIA CONVEY THAT A PRODUCT OR SERVICE MEETS NEEDS

Newspapers

Magazines+1.32%+0.83%

% U

plift

in m

etric

pos

t exp

osur

e

+1.08%

TV

Source: Magnetic/Millward Brown 2015Setting trends measure: OOH n=13, TV n=19, Newspaper n=3, Online disp. n=19, Radio n=6, Magazine n=7, Cinema n=7, Online video n=4

DIFFERENTIATION:to achieve a level of separation from other brands in the category due to sense of uniqueness or dynamism

JAGERMEISTER STANDS OUT

MeaningfulIndex

SalientIndex

0 20 40 60 80 100 120 140 160 180

Jagermeister

TARGETED, PREMIUM CHANNELS CONTRIBUTE TO UNIQUENESS

Cinema

Radio+3.50%+0.71%

% U

plift

in m

etric

pos

t exp

osur

e

+2.49%

Magazines

Magazine media has a diverse creative canvas

that allows successful delivery of

differentiation

AUDI STAND APART THROUGH LEADERSHIP CREDENTIALS

2014 2015 20160

20406080

100120140160180

Audi - Difference index

SPECIALIST CHANNELS ACHIEVE DYNAMISM

Cinema

Radio

+2.86%+0.83%

% U

plift

in m

etric

pos

t exp

osur

e

+1.45%

Magazines

Specialist knowledge of magazine editors and

their trusted voice on new trends

means they successfully deliver

differentiation

Salient

MAGAZINES UNIQUELY IMPACT CONSUMERS STRONGLY ACROSS ALL FIVE OF THE KEY MDF METRICS

NewspapersMagazines TV Online Display Radio OOH Cinema Online Video

Media ranking by metric (top 3 shown)

Source: Magnetic/Millward Brown 2015 See additional slides for samples of individual metrics

Meaningful

Difference

Salience

Meets Needs

Brand affinity

Unique

Sets Trends

123

3 2 1

3 2 1

2 3 1

1 2 3

A MEANINGFULLY DIFFERENT IMPACT

affinity

meet their needs

unique

dynamic

top of mind

WE CREATED A SINGLE METRIC WHICH AGGREGATES

CHANNEL PERFORMANCE ACROSS ALL FIVE METRICS.

WE REFER TO THIS AS MEANINGFULLY

DIFFERENT IMPACT

MEANINGFULLY DIFFERENT IMPACT

Magazines and Cinema excel at helping

brands deliver a meaningfully

different impact for consumers

TV

Cinema

+1.77%+0.89%

% U

plift

in m

etric

pos

t exp

osur

e

+1.59%

Magazines

Source: Magnetic/Millward Brown 2015MDI Measure: Magazines n=22, TV = 83, Newspapers n=32, Online Display n=68, Radio n=29, OOH n=59, Cinema n=28, Online video n=9

COST PER 1% MDI CONTRIBUTION

Magazines have the lowest overall cost to

deliver 1% of MDI

NewspapersMagazines TV Online Display Radio OOH Cinema

£0.55m £1.62m £3.32m £2.64m £1.45m £3.98m £3.99m

Source: Magnetic/Millward Brown 2015 MDI Measure: Magazines n=22, TV = 83, Newspapers n=32, Online Display n=68, Radio n=29, OOH n=59, Cinema n=28, Online video n=9 *Low base size

CONCLUSION> SALIENCE IS UNDENIABLY IMPORTANT AS A GROWTH LEVER

> MAGAZINE MEDIA IS A CONSISTENT ALL ROUNDER IN DELIVERING BRAND EQUITY

> MEANINGFUL DIFFERENCE IS A POWERFUL LONG-TERM BRAND DRIVER

> MAGAZINES ARE THE MOST COST-EFFICIENT CHANNEL IN THE MIX, AND PARTICULARLY STRONG AT DRIVING DIFFERENTIATION FOR A BRAND