Realizing the Chinese Dream to build great brands · Of the brands in the BrandZTM ranking whose brand power improved place advertising through Focus Media Of those clientsTM spend

Realizing the Chinese

Dream to build great

brands

and the

Value of media in

brand building

• A central unit of WPP, the world’s largest communications group

• Headquartered in NYC with 88 offices in 55 countries worldwide

• Clients including 90% of the top 100 brands in the world and many

Chinese brands

• Owning the world’s, and China’s, largest brand equity research

database — BrandZTM

• One of the largest research and consulting agencies in China

Kantar Millward Brown, the world's leading

expert in brand and communication strategy and

research

One of the first companies approved to conduct foreign-related researches in

China

The first representative of ESOMAR (European Society for Opinion and

Marketing Research) in China

Member of China Marketing Research Association (vice president before 2006)

Currently the only market research company recognized by General Social

Survey

Certified for ISO 20252 Quality in Market and Social Research in 2011

Mobile media campaign research

CrossMedia ResearchTM

Brand equity

research

projects

12 years of experience in

path to purchase research

The world’s leading consulting and market

research agency specializing in brand and

communication research

200,000

samples

Behavior

database

Brand

reports

4.5 million

samples Survey database

Marketing research experience

Digital media campaign

research

Digital creative

media research

BrandZTM The world’s most authoritative brand value ranking

March 2016:

Launch of BrandZTM Top100 Most

Valuable Chinese Brands

June 2016:

Launch of BrandZTM Top100 Most

Valuable Global Brands

400 CATEGORIES

3m CONSUMERS

100k BRANDS

4.5bn DATA POINTS

50 COUNTRIES

LARGEST

Brand Equity Database

BrandZTM on Nasdaq BrandZTM in China

BrandZTM in the world

28 top CEOs

105 authoritative media

Growing in “Style” is the new norm in the Chinese

economy driven by high quality and value added

chinese brands

China is well poised for a transition to move from

“manufacturing” to a “brand led economy”

This Chinese dream would

require strong Chinese brands

that are at par with MNC

brands!

The Value of Media in Brand Building

Cornerstones of A Successful Great Brand

Contribution of Media to Brand Building

Why Focus Media Can Help Build Brand Power Effectively

104 Categories

600,000 Consumers

5156 Brands

86.39 million

Data points

40 Countries

Insight Generation from BrandZTM Brand Equity Global Database 2015-2016

2015-2016 database

Meaningful, Different and Salient: The Three Cornerstones of a Strong Brand

Consumers feel an affinity for the

brand or think it meets their needs

Meaningful

(Meaningful connection,

generating resonance)

1

Different (Being different)

Feels different from other brands or

sets the trends for the category

2

Comes to mind quickly and readily

when activated by ideas relating to

category purchase

Salient (Needs based awareness)

3

Brand Power

Key Performance Indicators of Brand Power

Functional Brand Image

Emotional Brand Image

Five key Metrics

Needs- Based Unaided

Awareness or Awareness Intensity

Salient

Meaningful Different

Meet

needs

Affinity

Unique

Dynamic

1.

2.

3.

4.

5.

Kantar Millward Brown has summarized the insights gained from BrandZTM

global and China on the opportunities and challenges that brands

encounter in the Chinese market.

The Chinese dream of quality and value added

brands will be a continuous process of re

engineering and innovation

Insights on Consumers

(Based on BrandZTM database 2015 and 2016)

7 from Brand Building

Salient

42% Meaningful

35%

Different

23%

Resonance is the key metric to building brand

power in China 1 Leading brands are strong on all key

metrics of brand power 2

Chinese Market

Brand Power

Performance of

strong brands

Performance of

general brands

Meaningful Different Salient

Note:

Strong brands refer to the top 30% brands in terms of brand power in each category in the BrandZTM database.

General brands refer to the rest brands other than the strong brands in the same category in the BrandZ TM database.

MB BrandZTM database (2015-2016)

16

“Being different” is of greater importance to brands in China Performance of brands in terms of being different in China

However Chinese local brands need to strengthen

their performance in being different 3

Chinese Brands

Multinational Brands in China

Europe 19%

Asia

(including

China) 22%

China

22%

Africa

19% North

America

19%

South

America

22% Australia

18%

MB BrandZTM database (2015-2016)

4

New brands need to be more salient

Priorities for new brands and mature brands are different

While maintaining their salience, mature brands

should focus on being meaningfull and different

Go premium while delivering good value for money

Keys to Brand Building: Quality and Premium 5 6 Innovation Accelerates Brand Growth

Brand value increase in

percentage

Innovative brands, which rank

in the top 1/3

Brands weak in innovation

Source: MB 2016 BrandZTM Top100 Most Value Chinese Brands Report

7 Increasing global footprint of Chinese brands puts them at par with MNC brands

Source: MB 2016 BrandZTM Top100 Most Value Chinese Brands Report

Brands reach consumers via media.

Effective brand power building relies on media placement.





Measurement of contribution of different media types to brand key performance

indicators using MB CrossMedia ResearchTM

Note: All CrossMedia ResearchTM data used in this report are from Kantar Millward Brown’s research data between 2011 and 2016 in China

The world’s first model to measure the effectiveness of different media types in brand

building, with registered intellectual property rights

The world’s first validated cross-media effectiveness measurement model

Based on nearly 1,000 CrossMedia ResearchTM study cases worldwide

The world’s largest media database organized by category, brand, population and region

A cross-media research model recognized and used by leading brands across industries

including UL, Coca-Cola and Microsoft etc.

A cross-media research model that accurately and credibly measures reach of exposure

on the basis of opportunity to see (OTS)

Elevator poster enjoy a strong “solo contribution” and are less risky when there are limited

choices on media types

“Percentage of effective solo launching” and “Percentage of effective media synergy” by media type

Percentage of effective solo launching Percentage of effective media synergy Highest percentage of

effective solo launching

Analysis based on MB CrossMedia ResearchTM database of brand-

building oriented marketing campaign cases research

TV Online

Video Internet

banner

Mobile/tablet

banner

Elevator LCD Elevator Poster Cinema Video Metro Media

Brand performance vary by cities and TV channels

Average percentage uplift in brand performance indicators from a single campaign by TV channel (top 10)

Unaided

brand

awareness

Purchase

intent Brand image

Beijing

Shanghai

Elevator

LCD

Elevator LCD Certain

provincial

satellite TV

channel -

satellite TV

top 3

National

channel -

National top

61

Certain

Beijing TV

channel

- Beijing top

6

Certain

provincial

satellite TV

channel -

satellite TV

top 5

Certain

Beijing TV

channel

- Beijing

top 5

Certain

Beijing TV

channel

- Beijing top

3

Certain

CCTV

channel

- CCTV

top 4

Certain

Beijing TV

channel

- Beijing top 2

Certain

provincial

satellite TV

channel -

satellite TV

top 4

Certain CCTV

channel

- CCTV top 5

Certain

provincial

satellite TV

channel –

satellite TV

top 2

Certain

Shanghai TV

channel

- Shanghai top

2

Certain

Shanghai

TV channel

- Shanghai

top 1

Certain

Shanghai

TV channel

- Shanghai

top 4

Certain

Shanghai

TV channel

- Shanghai

top 3

Certain

provincial

satellite TV

channel -

satellite TV

top 18

Certain

CCTV

channel

- CCTV

top 4

Certain

Shanghai TV

channel

- Shanghai top

7

Certain

Shanghai TV

channel

- Shanghai top

5

Certain

Shanghai TV

channel

- Shanghai top

6

Note: TV channel naming according to CNRS TV reach ranking positions

TV Internet Elevator LCD

Elevator LCD screen’s impact on key brand performance metrics are consistent

and improving, while television declining

Contribution of different media types to brand building varies over time

Δ= difference between contribution in 2013~2015 and in 2011~2012

Unaided brand

awareness

Purchase intent

Brand image

Analysis based on MB CrossMedia ResearchTM database of brand-

building oriented marketing campaign cases research

(Based on BrandZTM data and spending on

Focus Media)

80% 73% Of the brands in the

BrandZTM ranking

whose brand power

improved place advertising

through Focus Media

Of those clients spend

more than RMB ten

million on Focus Media

Of BrandZTM Top 100 Most

Valuable Chinese Brands,

are Focus Media clients

82%

80% of the top 100 BrandZTM Chinese brands in the rencent two years are clients of

Focus Media

Other brands featured

in the ranking

that use Focus Media:

SOHO China China Telecom Belle JD.COM Lao Feng Xiang

Poly Real Estate China Unicom Youngor Suning Ming Jewelry

Country Garden 360 Herborist Yonghui Superstore Bank of China

R&F Properties Huawei Dabao PetroChina China Everbright Bank

Evergrande Real Estate Letv TCL Fortune Bank of

Communications

Gemdale Lenovo Gree Bright China Minsheng Bank

Longfor NetEase Haier Mizone Agricultural Bank of

China

Greentown China Sina Hisense Sanquan Industrial Bank

Vanke ZTE Robam Shuanghui China Merchants Bank

CPIC Spring Airlines Midea CR Sanjiu Moutai

New China Life China Eastern Airlines Supor Tong Ren Tang Wu Liang Ye

Ping An Air China Suofeiya Yunnan Baiyao Yanghe

PICC CITS New Oriental Harbin Beer Luzhou Laojiao

China Life BYD Hanting Tsingtao Beer ChangYu

China Taiping Changan Jinjiang Inn Snow Beer

Quanjude Great Wall Home Inn Pearl River

73% of those clients have spent more than RMB 10 million through Focus Media

28

Percentage of Focus Media clients featured in BrandZTM China ranking

that spend more than RMB 10 million

73%

ICBC China Telecom

China Everbright Bank China Unicom

China Construction Bank China Mobile

Bank of Communications Poly Real Estate

China Minsheng Bank R&F Properties

Agricultural Bank of China Evergrande Real Estate

Industrial Bank Gemdale

China Merchants Bank Longfor

Bank of China Wanda

Ping An Vanke

PICC Belle

China Life Herborist

China Taiping Dabao

Fortune Alibaba Harbin Beer

Bright JD.COM Tsingtao Beer

Mizone Suning Snow Beer

Mengniu 360 Wu Liang Ye

Shuanghui Baidu Yanghe

Yili Huawei

Luzhou Laojiao

Lao Feng Xiang Letv TCL

New Oriental Lenovo Gree

CITS Tencent/QQ

Haier

Ctrip NetEase Hisense

China Eastern Airlines ZTE Robam

BYD CR Sanjiu Midea

Changan Yunnan Baiyao

82% of the brands in the BrandZTM ranking whose brand power improved placed

advertising through Focus Media

82% placed advertising through Focus Media

In the BrandZTM ranking, among those brands whose brand power improved,

What is the role of Focus Media’s elevator LCD screens in brand building targeting the urban mainstream consumers?

Consumers Pursue Quality, Style & Trend

Spotlight on Focus Media’s

elevator LCD screens and its

impact on

Brands

(Based on Focus Media’s elevator LCD screens

advertising effectiveness test database 2014-2016)

Key highlights from Focus Media’s survey database 2014-2016

332 projects in the recent nearly 3 years

Covering 20 industries

3.92 million data points

Covering 27 cities across China

821 data entries

Method used by Focus Media survey database to

measure contribution of elevator LCD screens

Covering Focus Media’s elevator LCD screen audiences

aged from 20 to 45, mainstream urban consumers

Measuring the difference in brand performace indicators

between viewers and non-viewers of Focus Media’s

elevator LCD screens

to illustrate the contribution of Focus Media’s elevator

LCD screen on brands

∆ +8

A brand’s performance indicator Example

Focus Media Elevator LCD Ads

Focus Media Elevator Poster Ads

Viewers of

test ads

Non-viewers of

test ads

Focus Media’s elevator LCD screen’s build effective and comprehensive brand

performance

34

Analysis based on Focus Media’s Elevator advertising effectiveness test database 2014-2016

Short- to mid-term indicators of brand power

Mid- to long-term indicator of brand power

(Brand image)

Δ: +14

Δ: +19

Δ: +16 Δ: +14

Non-viewers of Elevator ads Viewers of Elevator ads

Brand image Purchase intent Aided brand awareness Unaided brand

awareness

...and it works seamlessly across local and international brands, with

better impact on local Chinese brands

Local brands International brands


Short- to mid-

term

indicators of

brand power

Mid- to long-term indicator of

brand power

(Brand image)

Δ: +16

Unaided brand

awareness

Aided brand

awareness

Δ: +22

Purchase intent

Δ: +18

Brand image

Δ: +15

Short- to mid-

term

indicators of

brand power

Mid- to long-term

indicator of brand

power

(Brand image)

Δ: +10

Unaided brand

awareness

Aided brand

awareness

Δ: +15

Purchase

intent

Δ: +12

Brand image

Δ: +11

Maintain the

performance of

mature brands

Support new brand/new

product launch

Short- to mid-term

indicators of brand power

Unaided brand

awareness of new

brand

Purchase intent for

new brand

Aided brand

awareness of new

brand

Brand image

Δ= +17

Δ= +19

Δ= +28

Δ= +17 Mid- to long-term

indicator of brand power

(Brand image)

Unaided brand

awareness of mature

brand

Purchase intent for

mature brand

Aided brand

awareness of mature

brand

Brand image

Δ= +13

Δ= +16

Δ= +17

Δ= +12

Focus Media’s elevator LCD screen’s are effective in promoting new brands and products and help

clients build their brands


37

51

91

50

26

59

21

Unaided awareness of parent brand

Aided awareness of parent brand

Purchase intent for parent brand

LCD viewers

LCD non-viewers

89

100

73

81

100

60




LCD viewers

LCD non-viewers

Case 1: A certain O2O local

service brand

Case 2: A certain local

dairy brand

Δ

+25

+32

+29

Δ

+8

0

+13

Promote new brands Continuously build

mature local brands


38

76

100

64

71

100

44




LCD viewers

LCD non-viewers

59

100

32

48

100

11




LCD viewers

LCD non-viewers

Δ

+5

0

+20

Δ

+11

0

+21

Support international brands

Case 3: A certain international smartphone brand Case 4: A certain international skincare brand


Focus Media’s LCD screens help local brands resonate with consumers, increase their

reputation, style and highlight their dynamism

How Focus Media elevator ads shape local

brands’ brand image

Brands

Dynamism Classiness

Meet

needs Reputation

Youthful Δ: +19

Setting trends Δ: +12

Unique Δ: +14

Meet needs Δ: +16

Classiness Δ: +5

Likable Δ: +15

Reliable Δ: +22

Mid- to long-term indicator of brand power

(Brand image)


40

Case 6: A certain international hair care brand

82

87

91

72

78

75

Setting trends

Youthful

Reliable

LCD viewers

LCD non-viewers

36

21

19

31

22

13

17

23

Fashionable

Classic

Conspicuous

Dynamic

Poster viewers

Poster non-viewers

Case 5: A certain local smartphone brand

Δ

+10

+9

+16

Δ

+14

+8

+2

+8

Helps increase the style

and trendiness of local

chinese brands

Helps strengthen resilience and

trendiness of international brands






Strong, sustainable reach and frequency, are the fundamentals in building great brands –

Focus Media’s elevator LCD screens are at ease in achieving this…

42

Weekly reach (%)

Weekly frequency

TV 69 22.1

Online Video 71 13.9

Transport Video 45 9.3

Elevator LCD 57 12.3

Elevator Poster 45 11.5

Bus Shelter/Stop Sign 55 12.9

Bus Body 57 15.7

Focus Film 10 0.25

Analysis is based on Kantar Millward Brown Report on Media Value in the Digital Era

Not necessary that Media’s that are strong in reach & frequency are effective in driving brand performance and purchase intent -Impact is the ultimate goal of brand salience

Online

Video

10

15

27

71

56%

67% 12

26

40

45

65%

46%

Transport

Video

15

29

41

57

71%

52%

Elevator

LCD

16

31

48

10

65%

52%

Cinema

11

24

39

45

62%

46%

Elevator

Poster

14

29

43

55

67%

48%

Bus

Shelter/

Stop Sign

11

25

36

57

69%

44%

Bus Body

13

26

39

45

67%

50%

Average

Elevator LCD screens and cinema screens have high impact on purchase intent. However

Cinema screens lack reach; online videos have high reach but lacks impact

Purchase: This type of ads usually motivates me

to buy instantly (Top 2)

Attention: I am usually attracted to the

featured content (Top 2)

Likability: I like this type of ads (top 2) Reach: Reach (week) (based on the entire

audience)

Based on the aware group

Performance in Reach by Media Type

15

21

37

69

57%

71%

TV …

Purchase

Likability

Attention

Reach


v

“Chinese consumers have a low acceptance of video ads on smartphones”. This is one of the important

reasons behind the less impact of online video ads. • Only less than 1/10 of Chinese consumer reported that they “like video ads on smartphones”, which is far below

the global average, and ranked fifth from the bottom among 42 surveyed countries.

Analysis based on Kantar Millward Brown’s global AdReaction research project in 2016

Kowtowing and idle times are best suited for positive ad reactions

Analysis based on Kantar Millward Brown’s global AdReaction research project in 2016

Based on our years of research experience, each type of media has its own characteristics:

• Elevator media and Cinema:

Reach consumers during their

boring time, where advertising is

“content” per se and has a strong

impact

• Movie/show placements: Reach

consumers during their time of leisure

for unconscious communication, which

facilitates the building of a dynamic,

trendy and international brand image,

and which is also suitable for

introduction of product features and

benefits

• Video ads on smartphones: Reach

consumers when they watch online

videos but with less impact, because

consumers resist video ads that

prevent them from watching the content

of their interest

Passive and bored

At loose ends

Radio, TV,

Movie/show placements

Passive and leisurely

Seeking emotional satisfaction

Magazine, tablet,

newspaper

Internet, smartphone

Digital TV (STB)

Proactive

With a clear purpose

Proactive and leisurely

Driven by interest or seeking inspiration or

stimulation

Elevator media, Outdoor LED,

Bus, Cinema video

Alignment with the category needs is also an important factor for attracting consumer attention

Media that rank in the top 30% in terms of fit for category

Media that rank in the bottom 30% in terms of fit for category

Media fit

for category Buyers of

food and

beverages

Buyers of

household

chemicals

Buyers of

luxury

products

Buyers of

housing/cars

Tourists Buyers of

Digital

products

E-commerce

shoppers

Buyers of

financial

products

Buyers of

home

appliances

Buyers of

game

products

TV

Online Video

Transport Video

Elevator LCD

Cinema

Elevator Poster

Bus Shelter/Stop Sign

Bus Body

Calculation method:

Category Buyer

Tendency Index

Media reach in buyers

of a category

Media reach in general consumers


The environment of consumption and Focus Media’s elevator LCD screens are one of the

factors that drive the perception of style and trend

Analysis based on Focus Media’s Elevator LCD and poster fundamental research in 2015

Focus Media

Elevator LCD poster

Novel and exquisite

equipment Quiet environment

Complete ad visuals Clear ad visuals

Perception of the

style and trendy of

the featured

products

Focus Media

Elevator LCD screen TV

Online

Video

Transport

Video

Takeaways for

media about

brands

Meaningful, Different and Salient are the three cornerstones of a strong brand;

Local Chinese brands are expected to be more salient

Closing the gap with MNC brands on being different is critical for Local

Chinese brands

Brand building for Chinese brands are in both short term with salience

and mid to long term in driving overall brand image and performance

Great brand building should also be geared to meet the Chinese and global

consumers to recognise the style and trend of Chinese brands

New brands/products need more intense efforts in brand building and

communications;

Impact as well as reach should be considered in selecting media;

The influence and popularity of media ensures reach and impact,

thus driving purchase;

Ads targeting users during their kowtowing and idle times are more

accepted and positively received;

Media image should be fit for brands’ purpose of promoting the

perception of quality and style

Not all media are capable of comprehensive brand building.

Takeaways

about media

For any questions, please contact:

Susan Yan (闫雪梅)

Susan.yan@Millward Brown.com

Tel: 8610-58579122

Thanks

Realizing the Chinese Dream to build great brands · Of the brands in the BrandZTM ranking whose brand power improved place advertising through Focus Media Of those clientsTM spend

Documents