Online advertising.. A smart strategy for the crisis.

Online advertising.. A smart strategy for the crisis

“We have a philosophy and a strategy. When times are tough, you build share.”

Procter & Gamble CEO A.G. Lafley, May 2008

Brands that Brands that continue to continue to spend in a spend in a downturn downturn come out come out strongerstronger

Past worldwide recessions

1981-1982• The sales of companies who had kept advertising during

the 81-82 recession had risen 256% over those who had not*

Early 1990s• The companies who had cut their marketing budgets saw

ROCE (return on capital employed) decline by 0.8% after the recession.Those who increased their marketing activity saw an increase of 4.3%

*Source: McGraw-Hill research, 600 companies from 1980-1985** Source: Hillier analysis, 1000 companies on the Profit Impact on Marketing Strategy database

And in Russia in 1998

Компании «Вимм-Билль-Данн» именно кризис 1998 года помог к 2000 году стать крупнейшим производителем сока и молока в России. В то время компания активизировала рекламную деятельность и на фоне молчания конкурентов увеличила узнаваемость бренда и продажи. В ВБД намерены оставаться на виду и сейчас: маркетинговый бюджет останется на уровне 5% от оборота компании, однако увеличится количество рекламы в местах продаж.

Марина Каган, вице-президент «ВБД»

It’s all about share of voice

• If other brands are cutting back, the marketing landscape is a little less cluttered and your ad $ will look and act bigger

It’s all about share of voice

• Smart brands should take advantage as the cost of buying SOV over competitors will never be cheaper

• It will be much more expensive to re-build awareness & preference afterwards if you let it slip

Why you should keep spending Why you should keep spending onlineonline

Your consumers are online• In the UK time online is now only 2nd to TV

Source: BMRB Internet Monitor, Nov 2006; UK audience, utarget networks

• In Russia, media consumption is also changing fast– Broadband penetration accelerating– Sept 07: 11 days/month and 13.7 hrs/month – June 08: 13 days/month and 16 hrs/month

Source: comScore World Metrix

Online can deliver a clear & proven ROI

• All online spend can be monitored and made more effective

• Any consumer actions can be allocated to the advertising - you can track click throughs

Online can deliver a clear & proven ROI

• Ineffective spend can be reduced/removed and other spend upweighted

• Minimal lead times for copy, creative and placement changes

• Low production costs

Online pricing is competitive

Average CPTs

Source: «Media Net».

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

TV Press Outdoor Radio Internet

min max

Rambler - an essential part of your Rambler - an essential part of your media planmedia plan

Rambler delivers scale

• 40 million monthly visitors and over 5 million daily engaged visitors

Advertise on Homepage, Lenta, Autorambler and Rambler Finance and other properties

Rambler can deliver a targeted audience

For male car buyers 25-35…

For the youth market…

Advertise on Rambler Friends, Rambler ICQ, Rambler Games and Rambler photo and other properties

We don’t just create advertising clutter

Rambler takes a structured approach to ad placement

Branded banner with a link to client’s

website

Ad links to dealer’s web site

Mark up with colour in catalogue

list

Select check-box «SALE» or

«Special Offerе»

Auto + advertising message

2 banners!!! And integration into content.

Scale brings creativity

Rambler is investing in our brand• Our winter marketing campaign ‘what’s new

today’ – Outdoor, press, TV, radio, online is

reaching 72% of 25-45 internet users across Russia (99% in Moscow)