The end of the world

THE END OF THE WORLD AS WE KNOW IT- The portrait of a conflict…

Thomas Schnoor – MD nugg.ad nordic

I. INTRODUCTION

II. THE PAST – COUNTING CLICKS

III. THE FUTURE – BRAND PERFORMANCE

IV. DOES IT REALLY WORK? – MEDIA CASES

TABLE OF CONTENT

I. INTRODUCTION

ABOUT nugg.ad

Founded in 2006 by Ex TNS directors Since 2010 a company of Deutsche Post DHL

nugg.ad developed the first real-time Predictive Behavioural Targeting solution

Employees primarily from TNS & AC Nielsen Thomas Schnoor former TNS Gallup Director

nugg.ad ist ein Unternehmen vonDeutsche Post DHL

WE ARE EUROPE‘S LARGEST TARGETING PLATFORM:

Predictive Behavioural Targeting

Behavioural profile

News

Sport

Finance

Travel

Cars

Real estate

Health

Predicted profile by nugg.ad

Sex Age 20 - 29

Title

Health

Sport

Finance

Travel

Cars

Real Estate

FMCG products

Education level

Children in household

Number of persons in household

Personal care

Impulse buyers Early adopters

nugg.ad | Real Target groups

Personal income

Decisionmaker

Business travel

TRENDANALYSIS 2012

Top 350 advertisers in Denmark

Figures in the columns represents how many advertisers that previously used the platforms. Last column represents the proportion who expects to use in 2012. Used in 2010 Used in 2011 Plan to use in 2012 Online marketing

90% 97% 97% Paid search

70% 78% 84% Display advertising

82% 83% 82% Social media (Facebook etc) 54% 67% 78% (Predictive) Behavioural targeting

52% 76% TV

81% 76% 72% Nationwide newspapers 76% 79% 69% Below-the-line aktiviteter 66% 64% 64% Magazins, eg monthly etc. 68% 67% 63% Mobile marketing

26% 36% 63%

Source: Trendanalysen 2012, TNS Gallup, Mindshare

II. THE PAST – COUNTING CLICKS

InteractiveMedia

VISION IN THE EARLY DAYS: MASS-CUSTOMIZATION OF MEDIA

InteractiveMedia

VISION IN THE EARLY DAYS: MASS-CUSTOMIZATION OF MEDIA

Mass MediaReach

InteractiveMedia

VISION IN THE EARLY DAYS: MASS-CUSTOMIZATION OF MEDIA

Mass MediaReach

1-to-1 Individuali-

sation

InteractiveMedia

VISION IN THE EARLY DAYS: MASS-CUSTOMIZATION OF MEDIA(IN AN IDEAL WORLD)

Mass MediaReach

1-to-1 Individuali-

sation

DirectResponse

InteractiveMedia

VISION IN THE EARLY DAYS: MASS-CUSTOMIZATION OF MEDIA

Mass-MediaReach

1-to-1 Individuali-

sation

DirectResponse

DirectResponse

CURRENT STATUS

Advertisers only believe in CTR and Conversions and prefer response oriented campaigns.

Decreasing clickrates

60% of agencies cite brand recall and intent to purchase as the most important measures of online success.

Collective: ”Digital Advertising 2011: A Portrait of Conflict”

LIGHT AT THE END OF THE TUNNEL

IT SEEMS LIKE TIME‘S UP FOR ONLY COUNTING CLICKS.

FMCG advertisers started to discover the potential of online branding campaigns. Online- video advertising budgets have increased 100% year on year.

Financial Times, 2011

CURRENT STATUS

WE HAVE TO

TAKE ACCOUNT

OF THE„MENTAL CLICK“.

III. THE FUTURE – BRAND PERFORMANCE

DIGITAL BRANDING CAMPAIGNS

traditional

digital

Branding

Direct-Marketin

g

THE NEXT EVOLUTION IN DIGITAL MARKETING

Makes little sense to apply direct marketing mechanisms on branding campaigns.

We need to apply classical branding mechanisms in the digital world.

nugg.ad et selskab i Deutsche Post DHL koncernen

• Specific targetgroup

• High reach

• Predefined frequency

• Measurable brand impact

• High quality environment

What are important for advertisers in Print and TV…

IV:BRANDINGSOLUTIONS

BRANDING METRICS – just like TV & Print

without campaign contact with campaign contact

BRANDAWARENESS

+50%

33%

49%

Product:L’Oréal Excell 10

comScore, 2012

…AND WHAT ARE ADVERTISERS DOING RIGHT NOW?

HOW CAN WE ACHIEVELARGE-SCALE REACH

– COMPARABLE WITH TV?

TV budgets and Branding metrics depends on…

• Precise targetgroup definition

• High reach & frequency in quality networks (ability to control the frequency corridor)

• An integrated platform which can report uplifts in branding metrics

Microsoft, AOL, And Yahoo Announce Huge Ad-Selling Partnership

Microsoft, AOL, and Yahoo have agreed to begin selling remnant, or "class two," inventory on each other's sites, Peter Kafka reports.

"The theory," says Kafka, "is that if, say, AOL has a big order for a certain kind of ad impressions, it will fill it with its own inventory as well as what’s available from Microsoft and Yahoo.“

The companies will split the revenues on any sales made this way.

The goal: win back some of the ad dollars flowing to ad networks, Facebook, and Google.

Source: http://www.businessinsider.com/microsoft-aol-and-yahoo-announce-huge-ad-selling-partnership

Same trend in Denmark & Finland

PBT Network: EkstraBladet, eBay Classified, Bilbasen, BT, sporten.dk, kino.dk, Onside.dk, lokalavisen.dk, TV3 Viasat, SBS TV (kanal 4,5 & 6) and Borsen.dk

PBT Plus Network: Berlingske.dk, Jyllands-Posten.dk, Politiken.dk, Business.dk, epn.dk etc.

Jubii PBT Network: Jubii, Lauritz.com, Yahoo.dk, CPH.dk, Pricerunner.dk, DMI.dk, Kogebogen.dk, Proinvestor, Yahoo, Momondo, Proinvestor etc.

Klikki PBT Network Other PBT networks will approach the market shortly…

These “networks” have realised that it is impossible to fight Facebook, and Google alone and expands their commercial reach and value proposition by selling PBT advertising in the networks

BRANDING SOLUTIONS

VI. DOES IT REALLY WORK? + Media CASE

nugg.ad ist ein Unternehmen vonDeutsche Post DHL

Control Group = 764; Test Group = 1695

Brand Awareness Brand Sympathy Purchase Intention0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

16%12%

30%

16%

10%

31%

De Cecco Pasta – Campaign uplift before Nugg.ad Branding optimiser

Control Group Pretest (no CampaignContact) Test Group (CampaignContact)

0%

-17%

3%

nugg.ad ist ein Unternehmen vonDeutsche Post DHL

Uplift on all three branding metrics

Control Group = 764; Test Group = 1695, Branding opt. = 1105

Brand Awareness Brand Sympathy Purchase Intention0%

10%

20%

30%

40%

50%

60%

16%12%

30%

16%

10%

31%34%

22%

43%

Pretest, RON og Nugg.ad Branding optimiser

Control Group Pretest (no CampaignContact) Test Group (CampaignContact)Branding opt. total

113%

83%

43%

nugg.ad ist ein Unternehmen vonDeutsche Post DHL

Compared to control group uplift in Purchase intention = 53% in Frequency corridor „4-6“.

Control Group = 774; 1-3= 335; 4-6 = 327 ; >=7 = 423

Control Group Pretest (no CampaignContact)

1-3 4-6 >=70%

10%

20%

30%

40%

50%

60%

70%

30%

40%46% 43%

Purchase Intention: „Would buy/try De Cecco pasta?"

Purchase Intention

53%

OTHER CASES

Goal: Increase brand awareness of

Garnier “Pure Active“

Campaign: 3 weeks | 6,8 mio. pre-roll video ads

Targetgroup: Men, 14-29 years,

brand engagement measurement,

contact class management

Results: Brand awareness uplift +41%

CASE STUDY: BRAND ENGAGEMENT MEASURE-MENT & CONTACT CLASS MANAGEMENT

Goal: Increase purchase intention

for the product “AGEING +12“

Campaign: 4 weeks, AdBundle in RON

Product: Branding Optimiser

Results: Purchase intention uplift +84%

CASE STUDY: BRANDING OPTIMISER

Purchase intention forROYAL CANIN AGEING +12

Goal: Increasing brand awareness

for the Chevrolet Orlando

Campaign: 8 weeks, MR, superbanner,

skyscraper, banderole ads

Targetgroup: Men, 30-59 years, with children younger than14 yrs

Result: Brand awareness uplift for the model

Orlando +50%

CASE STUDY: BRANDING OPTIMISER

MANY MAJOR TV ADVERTISERS DO ALREADY

IMPROVE THEIR BRAND IMPACT WITH nugg.ad

NUGG.AD COOPERATE WITH MEDIA AGENCIES

Coop between agencies and Media

MEDIAAGENCIES

PUBLISHERS/AD NETWORKS

FINALLY THERE IS ONE MORE REALLY IMPORTANT ISSUE FOR US & MORE IMPORTANTLY FOR OUR PARTNERS.

nugg.ad et selskab i Deutsche Post DHL koncernen

EU commision European Privacy Seal – nugg.ad is one of only 18 companies

Nugg.ads role in the political landscape