Media Industry

Trends for

2014

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What ’s Inside

!‣Executive Summary !

‣Cross-Channel Campaigns !

‣Visual Content !

‣Quality Content is King !

‣Interactivity

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Executive Summary

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EXECUTIVE SUMMARY It has been a long time coming, but with the changing media landscape, media planning is shi!ing towards communications planning where the starting point is the consumer, not the media channel. !Media, as a discipline, is moving away from the job of delivering messages to audiences and moving toward be"er understanding of how consumers receive and respond to communication. !The below chart is a summary of consumer expectations for brand communications and how emerging media strategies are facilitating interaction between brands and consumers in a meaningful and bo"om-line impacting way.

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Consumer Expectations from

Brand Communications

Media Communication

Trends in 2013

Media Hot

Topics for 2014

I want relevant and personalized content that is not confusing when I switch from

device to device throughout my day Cross-Channel Campaigns Mobile Ads

I crave instant gratification Visual Content Video Ads

I am tired of online ads Quality Content is King Native Ads

I want ads that don’t suck, fit into current context, and give me something we want Interactivity Rich Media Ads

Cross-Channel Campaigns

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CROSS-CHANNEL CAMPAIGNS!The Challenge and Opportunity

Home Depot had 11 different offers ranging from $20 off a five-gallon bucket of paint, to 10% off appliances of $397 or more and they wanted to drive incremental sales leading up to and through Memorial Day. To do so they needed to generate consumer awareness around the key products and seasonal offers. !The Mobile Ad Media Plan

‣ Home Depot deployed a Mobile Circular ad unit - similar to the traditional free-standing inserts o!en used by retailers in outlets like

local newspapers - gave consumers the option to “swipe through” the range of products and offers

‣ The campaign began running 10 days before Memorial Day, and featured a 3-day ad-block around the holiday weekend where the ads were assured a dominant share of voice around Home Depot’s predetermined audience and channels

‣ Targeted ad placements reached Home Depot’s desired audience of adults 25-54, and utilized local market and demographic targeting

‣ The ads ran cross-platform across iPhone, Android and other smartphone operating systems

!The Results

‣ On the Saturday of Memorial Day weekend, the ad-block generated the highest mobile site traffic in Home Depot history

‣ Consumers engaged with every offer featured in the Mobile Circular, allowing Home Depot to successfully market 11 products in a single ad unit

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CROSS-CHANNEL CAMPAIGNS!Why Mobile Works:

‣ It presents opportunities for engagement as people rely on smartphones to both research online service brands and connect with them

‣ Targeting can be very precise and include behavioral, demographic, content, location, contextual, private pool & retargeting

‣ Mobile ads can be optimized to help people connect by utilizing click-to-call, form fill, link to map, link to site, etc !!Basic Mobile Ad Types:

‣ Banners - Connects brands with their target audiences economically and efficiently across a broad range of inventory

‣ Interstitial - Displays full-screen rich media ads either at app or mobile browser launch or in between content pages

‣ Mobile Circular - apply highly localized features, benefiting consumers and retailers

‣ Expandable banner - Expands an ad to cover the full screen upon a tap, without removing the user from the app or mobile browser

experience ‣ Interactive Video

- Delivers the rich branding experience of a TV commercial on a platform that is uniquely personal and always on

‣ Gamification - Activate consumer interest and brand affinity by presenting an entertaining game that has powerful viral

appeal and longevity

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Visual Content

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VISUAL CONTENT The Challenge and Opportunity

Rokenbok Toy Co. offers premium specialized educational systems and their products were historically demonstrated on play tables in specialty toy stores. When the population of specialty toy stores dramatically collapsed they had to find a way to provide playtime experience without the hands-on capability. !The Video Ad Media Plan

‣ With fun and educational videos, Rokenbok Toys was able to create entertaining in-store demos of their toys virtually

‣ They pushed the message out through paid YouTube ads ‣ Targeted ad placements reached kids and adults who have an affinity for

mechanical things - the ability to narrowly target this audience was of enormous value

!The Results

‣ Today, the majority of their online sales come from YouTube channel viewers who make up more than half of their customer base

‣ Video advertising has not only been a good return-on-investment for this brand but has also set the direction for all of their marketing communication

!Link to Ad h"p://youtu.be/0qX7CS4t1IY

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VISUAL CONTENT!Why Video Works:

‣ Allows for “permission marketing” and engaging with the right audience - only pay when people watch - zero in on the right people based on who they are, where they’re located and what

they’re interested in ‣ Create powerful stories that integrate with digital advertising campaigns ‣ Shows up across devices ‣ Ability to see what’s working

- Analytics can be used to fine-tune the media plan in real time ‣ Build a following

- ads can drive video shares and new channel subscriptions !!Three Basic Video Ad Types:

‣ In-Stream: pre-roll, mid-roll or post-roll - run in the same player as the video content

‣ In-Banner: not connected to any video content and therefore could appear on any webpage - typically needs to be started by the user

‣ Branded Content: longer-form ads sponsored by the marketer - sometimes the audience does not even view this branded content is an ad since most

of the video contains potentially valuable information or entertainment !!!

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Quality Content is King

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QUALITY CONTENT IS KINGThe Challenge and Opportunity

MINI wanted to go beyond methods of conventional advertising to enhance the brand’s perception. The primary goals were to broaden awareness for the brand slogan “Not Normal” and to emotionally engage with their audience ultimately enhancing the perception of MINI as a fun brand. !The Native Ad Media Plan

‣ MINI partnered with BuzzFeed to create 7 new custom social posts ‣ The posts challenged readers to reconsider “normal” - inspiring them

with amazing “not normal” topics ranging from environmental phenomena to interesting competitions and bold fashion statements

‣ The theme reflected MINI’s personality and voice, allowing the branding to integrate seamlessly into the content

‣ By increasing the length and flight of their campaign in collaboration with BuzzFeed, MINI achieved cumulative gains from exposure and drove more traffic to existing posts

!The Results

‣ Over one million engagements - 2/3 of which resulted in social sharing - 3.0x social li!

‣ Featured in the right rail section of BuzzFeed’s new posts page. providing even greater exposure, momentum and page views

‣ 32.9% Brand Li! - MINI was a car they might consider for their next vehicle purchase

‣ 52.2% Brand Li! - MINI is a brand that stands for fun !12

QUALITY CONTENT IS KING Why Native Ads Work:

‣ Native advertising came about by the need for brands to stop interrupting and start talking to consumers ‣ Native ads offer the opportunity to publish content that’s interesting to an audience that is interested in the

content - The content should not be promotional

‣ Ads match the visual design of the experience they live within, and look & feel like natural content ‣ Ads behave consistently with the native user experience, and function just like natural content ‣ Consumers looked at native ads 52% more frequently than banner ads *

!Basic Native Ad Types:

‣ Gallery - Brand content is integrated into the organic look and feel of publisher sites - To experience the content users click through to individual, high quality viewing pages.

‣ Posts - Contextually targeted brand content is delivered in-page within the content - The content flows with the natural experience of the page, capturing the a"ention of engaged readers.

‣ Feed - Brand content is integrated within content feeds on the homepage of social discovery and premium editorial

sites - Brand content is placed near the freshest content and can be watched directly within the feed

‣ Game - Videos are integrated directly within a social game - When a user chooses to watch the video, the game is paused and the video player is overlayed on the screen to

provide a full viewing experience !

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Interactivity

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INTERACTIVITYThe Challenge and Opportunity

Faced with declining flavored milk sales and low market share, Promised Land Dairy needed a fresh way to drive brand awareness for their products. Research conducted indicated that Promised Land Dairy’s variety of flavors gave them a competitive advantage so they utilized this information to launch a rich media campaign that promoted the flavors online. !The Mobile Ad Media Plan

‣ Each Rich Media Ad featured a dairy farmer pulling a wheelbarrow of milk canisters across the computer screen, the farmer would stumble, causing the milk to “spill” into a 300x250side unit containing the farm-fresh ingredients specific to that quarter’s seasonal flavor of milk. The resulting 300x250 ad unit highlighted one of the Promised Land Dairy’s seasonal varieties including Marvelous Mocha, Mooberry Blueberry, Creamy Dreamy Orange and Egg Nog.

‣ This single unit ran in one-month flights and was used to create awareness and drive consumers to find a store location

!The Results

‣ While category sales declined, Promised Land saw revenue increase driven by the flavored milks

‣ Total site traffic increase of 511% during rich media flights

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INTERACTIVITY

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Why Rich Media Ads Work: ‣ Engage users with in-ad interactive features, functionality and content ‣ Capture user a"ention and keep it, all while measuring engagement, time spent and other key metrics including

site-side activity tied to the ad unit ‣ Rich media ad units can include multiple panels and videos, polls, data collects, newsle"er sign-ups, syncing and/

or linking to Facebook, Twi"er and other social sites, photo galleries and much more ‣ Create a mini-website experience, so the user doesn’t have to click through to a site ‣ Leverage platform capabilities like real time marketing to personalize the ad experience for each of your

audiences without the need to produce multiple creative versions !!Basic Rich Media Ad Types:

‣ Polite: a universal rich media ad - All features and functionality are contained within the borders of the ad unit but the advertiser is afforded

with unlimited k-weight as opposed to the standard limits of 30-45k ‣ Peelback:

- Located in the top right corner of the browser, this unit enables users to interact and unveil deeper content - Upon click, the unit fully expands and the advertiser’s content lays over the editorial—focusing more

a"ention on the marketing message ‣ Pushdown

- A pushdown starts as a regular ad unit but upon page load it instantly expands while politely pushing all editorial elements downwards (rather than covering them)

- A!er a set duration, the unit retracts and resolves into an expandable or polite ad unit ‣ Rising Star Units

- The IAB created Rising Star program to help increase creativity and branding options within standard ad unit sizes

- Includes Billboard, Pushdown, Portrait, Filmstrip, Sidekick and Slider