FMCG Sector Update – Spring 2010

Quick Links
1. FMCG Overview
2. Insights and Trends
3. Research & Resources
4. Digital Updates
5. Microsoft Advertising Opportunities
6. Contact Us

Market Overview
Several key consumer trends have emerged from the recession and
uncertain economic outlook. With austerity becoming fashionable and canny
consumers replacing expensive luxuries with smaller treats, sectors such as
make-up and chocolate have outperformed. Declining trust in institutions
appears to have impacted positively on consumer‟s relationship with branded
goods with brand heritage and perceived value now the focus of much
advertising. Meanwhile, the increasing time that consumers spend online,
coupled with a growing appetite for sharing opinion, has ensured that brands
Katherine
now have many gatekeepers. Customer endorsements are becoming a
Eills, FMCG
hugely important tool for marketers and this trend can be hugely beneficial for
Manager
those open to an honest dialogue with consumers. Procter & Gamble, which
has invited consumers to post their views about products online, shows the
value of this approach.
Key roles digital can play for FMCG brands
 Building Brands see pages 12-16 of the FMCG Case Study Compendium
 Exploring New Frontiers see pages 17-22 of the FMCG Case Study Compendium
 The Art of Conversation see pages 23-30 of the FMCG Case Study Compendium
 Driving Offline Sales see pages 31-34 of the FMCG Case Study Compendium

Insights and Trends

Top 10 Digital Trends for 2010
The Millward Brown Futures Group argues that the basic rules of brand building will remain in force
in 2010, and that digital communications need to be creative, engaging and relevant to succeed.
Here are the Group‟s top 10 trends for 2010:
1. Online display: advertisers will experiment with new, larger ad formats (though some may fail
the test if they prove too intrusive)
2. Viral video: viral video analytics are becoming sophisticated, helping fuel a more scientific
approach to viral campaign planning in 2010
3. Gaming gets socially mobile: set for release later this year, Microsoft‟s Project Natal will
revolutionise gaming and user interaction, as interactive and social elements continue to fuel
gaming growth
4. Mobile prepares to take a bite out of online
5. Look at me, I‟m over here: innovative geo-targeting solutions will take advantage of more
widely distributed GPS whether users are in-aisle, in-store or in-proximity. Utility-focused location
applications are gaining popularity
6. Search evolves: the arrival of Bing has intensified competition, driving search to be more
relevant and efficient. Look out for vertical searches, more visual integration and greater integration
between search and social media
7. Online video is not a panacea: Online video advertising will continue its rapid growth but
increased competition means creative quality is vital.
8. Social graphs: the late noughties were the era of the social network, the early „10s will see the
rise of the "social graph". These segmented networks will demand more interaction from brands
9. Integration and privacy: the “privacy by design” movement will continue, with user control and
a Global privacy standards framework becoming vital
10. Data integration vital for learning: with new patterns of media consumption blurring the
boundaries between traditional channels, online listening techniques will become a key focus for
marketers.
Focus on Social Media
(By Kate Box – Head of Social Media, Microsoft Advertising)

„Social Media‟ will remain a hot topic in 2010. What does this
mean for FMCG brands? That‟s a discussion for a much longer
piece, but we can start by defining social media and what it
means for digital marketers. Social media can be defined as
interactive digital media that empower consumers to choose to
interact with your brand and share content and opinions with others. Making the most of this
requires an understanding of how consumers use online for their social needs, and what motivates
them to interact with and share brand content. Facebook and Twitter are excellent platforms for
enabling community discussion and sharing. But to take true advantage of social media we need to
understand the full online journey. Consumers do not use these networks in isolation: they join
social communities from many other place and share content from many sources including portals,
gaming sites, email, online shopping, messenger, mobile and even offline. The rise of „social‟
means we now have an extra layer of planning to think about – it does not mean that existing online
channels are obsolete. The best use of social media ultimately depends upon a campaign‟s
objectives.

An example is Pepsi, which included fun,

interactive social functions in its recent
Pepsi Hub targeted at young males. The
brand controlled most of the environment,
but still ensured that its content was
shareable.
http://thepepsimaxclub.msn.com/

„
Research and Resources
A new aggregate econometric study for the FMCG Sector offers some fascinating insights into
planning your media mix. It tracks the ROI delivered by different media channels to explore the
likely impact of increasing online spend.
Key findings include the high value
currently delivered by online for FMCG
brands, including strong RROIs and
adstocks. The study also shows the
powerful synergistic effects of online
spend with projections showing that
increased online investment will
improve the success of a campaign
across all media channels. The study
shows that online is currently under-
represented in FMCG‟s media mix, and that online spends should be increased to maximise ROI for
campaigns.

Pre-Family Men – The Shocking Truth

Out of education but not yet starting a family, unscrupulous in his pursuit of
love and independence, desperate to stay in touch with his closest friends and
ambitious for a meaningful career: Pre-Family Man (PFM) chaotically juggles
hedonism, responsibility and change. He also represents 2.7 million men in
the UK. Get a surprising, uncensored view in our new PFM Unplugged study
and gain real insights on new ways to reach PFM. For example did you know 1 in 3 Pre-Family Men
have had a date with someone they first met online? Or that 52% share their grocery shopping
duties?

Nivea Case Study

Exercising the male body and mind helped to power a muscular launch for
NIVEA‟s new Silver Protect deodorant and its antibacterial formula with silver
ions. Strongly targeted display advertising drew men aged 25-44 to a high-
performance microsite, where rich, interactive content further strengthened
engagement. When exposed to the full campaign, purchase intent for the target audience rose 34%
with brand favourability up 20%. Read more
Coca Cola Case Study
Coca-Cola‟s Happiness Factory campaign proved it had the game plan for
delivering deeper „brand love‟ amongst younger audiences. Measured using
unique ICE methodology, which analyses shifts in brand engagement in terms
of experiences as well as communications, a branded Messenger game
proved the most effective channel for driving „brand love‟ amongst 16-19 year-olds. The game‟s on
„brand love‟ was over 7 times that of TV. Read more

Search and Social Media

Both expose the strengths and weaknesses of brands through the views of
consumers and both are growing rapidly due to user demand: the relationship
between search and social media is becoming increasingly significant for
advertisers. A new report from the IAB and Microsoft Advertising highlights
how the two disciplines are linked and provides insights on how they can work better together.

Download the full Search and Social Media Report

Digital Updates
Online Video Never Looked Better - http://video.uk.msn.com/

More than half of the UK‟s adults with web

access watched online video last year and MSN
Video has a larger audience base than any
commercial broadcaster. Newly launched, the
MSN Video Player is taking online video to the
next level, with HD streaming through Silverlight,
surround dim for enhanced viewing and great
content sharing features. With over 1,000 hours
of programming, it‟s where viewers who love TV choose to watch online. And with top shows like
Shameless, Peep Show and How To Look Good Naked, it‟s already outweighing Five‟s share of TV
viewers.

Contact Kelly Wearmouth for full details of the advertising opportunities.

Gaming
Men, women, young and old: with Gaming Solutions from Microsoft Advertising, you can reach a
highly engaged target audience from casual gamers to hard-core enthusiasts.

MSN Games, Games on Windows Live Messenger, Xbox, Xbox LIVE and in-game advertising with
the Massive Network can generate brand awareness and allow you to interact with an audience that
is influential, social and spends a significant amount of time online. And whether your needs are
action or brand-focused, games advertising offers multiple solutions that can be tailored to your
campaign needs.

Xbox Live: your in-house entertainment centre....

The Sky Player, Sky TV‟s online service,

launched on Xbox LIVE at the end of last year,
bringing with it a vast array of channels and
programming that you can view live or on-
demand. The ink is barely dry on the deal and
we‟re still finalising the full line-up, but you can
reckon on accessing blockbuster movies,
Premier League football, absorbing documentaries and the very best of music, the arts and must-
see entertainment shows for all the family – all delivered direct to your Xbox 360. A broadband
connection is all that‟s required.

Atlas Advertiser Suite In-Stream

Rich media ads can make any online campaign more impactful – but the right approach to
deploying them is vital for success. Advertiser Suite In-Stream makes it easy for advertisers that run
pre-roll video ads across multiple sites to format their creative to fit the publisher player. It makes In-
stream as easy to traffic and manage as standard media. With Engagement Mapping, FMCG
clients can see how pre-roll is working alongside the rest of their media. For more information
please contact: giles.hall@microsoft.com
Creativity & integrated Opportunities
Online advertising is the perfect medium for getting your brand front-of-mind and
setting yourself apart from the competition. Online offers the opportunity to
reach both very large and targeted audiences and delivers true engagement and
dialogue with consumers. If used correctly, an online campaign can build
brands, create strong relationships and encourage deep consumer loyalty in a
far more engaging way than traditional media. When used alongside channels
such as TV it can greatly enhance a campaign‟s success through increased awareness and deeper
engagement.

Creativity from Microsoft Advertising

Over the past few months we have seen a number of really exciting bespoke creative executions in
the FMCG sector as advertisers recognise the creative potential for engagement created by this
medium and here are a few of them.
Cadbury Creme Egg
MSN is the number one online partner for Cadburys 2010
Creme Egg campaign, which is built around eggs‟ urge to “get
their goooo out”. MSN have provided extensive editorial
content, support and promotion, hiding the eggs across six
main MSN channels: Entertainment, Life and Style, Cars,
Travel, Tech and Gadgets, and Celebrity. The online activity
forms part of a larger media campaign.

Schwartz “Spice” Partnership

http://style.uk.msn.com/advertorials/schwartz-
spice/
MSN was chosen as the sole partner for
Schwartz‟ largest on-line campaign to date.
“Spice”, an MSN Life & Style sub-channel built
around the brand proposition of “Add a little,
change a lot”, engaged the target audience
through editorial content and ideas designed to
add a little spice to life, whilst also delivering
recipes in a credible, relevant environment.
MSN achieved its first month targets within two
weeks of the channel‟s launch.
Sure Nature Minerals on Life & Style
Unilever worked with Microsoft Advertising
for the launch of Sure Natural Minerals,
taking over the Life & Style channel for
maximum impact and exposure.

Microsoft Advertising opportunities

Score with our winning World Cup package

Microsoft Advertising is offering advertisers to sponsor its

coverage of the 2010 FIFA World Cup, with a guaranteed 30
million PVs and world-class sponsorship packages that are
both flexible and affordable. Spreading the appeal of the
tournament beyond hardcore fans, the MSN World Cup hub is
the place where all can come to be informed, entertained and
engaged.

MSN Him
MSN Him http://him.uk.msn.com/ is the
male lifestyle channel for 18-44-year-olds
that fills the gap between smutty and
specialist. Its scorching start shows
there‟s a real appeal in its mix of new
male lifestyle content. Warner Bros has
snapped up the 3-month launch
sponsorship, rotating its film titles
throughout the environment. Full channel sponsorship is available for periods of 1 to 3 months from
24 May onwards, with 100% SOV, title header branding, full channel skin and partner poll features.
Hotmail Push Down
Available as part of a Hotmail roadblock, our new Push Down format, which „pushes down‟ other
content on the page, provides a fantastic way to create impact amongst mass-reach or targeted
audiences.

Want more information….

If you have any further questions on anything contained in this document please contact
Katherine Eills, FMCG Category Manager: keills@microsoft.com

You dream it. We deliver it.