This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
Project sponsors
4.0 30%
3.7 3.7
+21
20
3.5
10
3.0
3.0 3.0 +2
3.0 Average 0
2.8
2.8 -4
2.7
-10 -7
2.6 -10
2.5
-20 -17
-19-20
-23
-24
2.0 -30
Se a y
N aga h
ra V
V
Na ot V
M dio
io
bl ne
is le
N ble V
sp T V
TV
Sp dio
l r er
N ea ay
or e
Ra e
Lo sp ch
M er
c
il
w in
t'l T
ag T
Sp e T
Ca k T
ad
D obi
l
ca ap
ap
M ar
ob
Ca azi
ew r
pl
sp
et z
ot
M rk
Di
S
w
ew
et
N
Reach/
Call-to-
brand
action
building
Source: Bain ad buyer survey (02/2009); Bain analysis SFR 091112 Building Brands Discussion2 4
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
Marketers believe online can be more
effective at all stages of the purchase funnel
Which marketing objectives are the following
media vehicles best suited for?
Promoting
Loyalty
100%
Driving
Traffic/
75 Purchase
Intent
Promoting
50 Consideration
Generating Brand
Familiarity objectives
25
Creating
Awareness
0
TV Magazine Newspapers Internet
Total Ad
$64.4B $13.3B $34.4B $23.1B
Spend (2008)
Source: Bain/IAB 2009 Marketer survey; Bain Media 3.0 Study SFR 091112 Building Brands Discussion2 5
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
Brand marketers expect only modest
growth in online spend
Brand marketers rely heavily on TV, while Future mix shift to Online much more
response marketers advertise more online pronounced among Response Marketers
Weighted above-the-line
marketing budget (2008) % of above-the-line ad spend
Mobile
Yellow Pgs
100% 80%
Other
Outdoor
+3
80
Radio 60
Newspapers
60
Magazine +8 -4
40
2011
2008
40
Internet
+5
2011
2008
20
2011
2008
20
2011
2008
TV
0 0
Brand Response Internet TV & Internet TV &
Marketers Marketers Magazines Magazines
(>75% of spend) (>75% of spend)
Brand Response
Marketers Marketers
Source: Bain/IAB 2009 Marketer survey SFR 091112 Building Brands Discussion2 6
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
We need to address five key obstacles to
bring more brand advertising online
1• Ad formats and creative are not innovating with
the medium
50%
40
Effective
30
20
Extremely
effective
10
0
Sponsor- Digital Email Social Non-prem.
ships video networking display
Search Premium Rich Lead Classifieds
display media gen.
Source: Bain/IAB 2009 Marketer survey SFR 091112 Building Brands Discussion2 9
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
1 Solution: more custom execution
showcasing emotional potential of online
Fake
response
ad clutter
3.0 30,000
800,000
30
2.5 25,000
600,000
2.0 20,000
20
1.5 Banner Ads 15,000
400,000 Impressions
Banner Ads CPM
1.0 10,000
10
200,000
0.5 5,000
0 0.0 0 0
12/05
12/06
6/05
12/05
6/06
12/06
6/07
12/07
6/08
6/05
6/06
6/07
12/07
6/08
Endless supply + “Response dependency” =
Relentless path to commoditization
Source: Morgan Stanley; ComScore Building
SFR Brands discussion document 100109 14
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
2 Solution: develop and deliver three
distinct “triple play” service models
Response Brand reach Brand engagement
Marketer • Drive customers to site • Supplement buys in other • Build brand awareness
objectives • Generate transactions and media and purchase intent
immediate ROI • Generate wide exposure • Deliver custom, high-
at low cost impact campaigns
Product • Banners, rich media • Banners, rich media • Digital video, rich media
offerings • Mix of premium and non- • Mix of premium and non- • Premium position banners
premium positions premium positions • Social/UGC applications
• Content/placement • Cross-platform integration
control
High-touch category
offering
General
Portfolio of Platform-driven Basic sales
demographic
standard products sales approach support
statistics
Range of Platform-specific Marketer interacts
offering
Basic information on
sales forces (even with general sales
Basic
standardized ad
demographics of
options to allow “plug within same media team on as needed
audience (i.e. age,
and play” for creative property) basis
gender, etc.)
Impact: • Large publishers get higher ad rates and • Publisher can deepen
revenue from small publisher sales advertiser
• Small publishers access scale - reach relationships across
marketers upstream in buying process properties
Source: Advertising Age, MediaPost, ClickZ, Marketing Pilgrim SFR 091112 Building Brands Discussion2 17
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
3
Problem: metrics, metrics
everywhere… but not the ones that
brand marketers really need
#3
What brand
40 marketers get
#2
20
#1
• Engagement/interactivity measures
“Currency” • Brand equity measures
standards
40%
Brand marketers want
category expertise,
customization and a
30
#2 relationship mindset
20
10 #1
0
Deep Strong Customized Digital Cross- Streamlined
knowledge relationship options advt platform purchasing
of marketer with marketer success campaign options
and industry metrics options
Best Full ad
Effective High impact Digital advt
contextual placement
targeting online creative knowledge
fit for ads transparency
Source: Bain/IAB 2009 Marketer survey SFR 091112 Building Brands Discussion2 22
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
4 Solution: Adapt capabilities and learnings
from offline and portal sales teams
Current capabilities
Move upstream
0
2008 In 3 years
Source: Bain/IAB 2009 Marketer survey SFR 091112 Building Brands Discussion2 26
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
5 Marketers who use the same creative
agency for “the whole egg” are more satisfied
Most marketers use the
same agency for online …and tend to be much more satisfied with online
and offline creative… capabilities than when using separate agencies
Separate
agencies
80
for online 60
60
0 0
2008 Effective High impact Digital
targeting online creative advertising
Deep Strong Customized knowledge
knowledge relationship options
of marketer with marketer
Source: Bain/IAB 2009 Marketer survey
and industry
SFR 091112 Building Brands Discussion2 27
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.
5
Solution: Revamp the sales force structure
ILLUSTRATIVE
Multi-platform Transactional
Online Offline “engagement” online
sales force sales force sales force sales force
CPG Auto Etc.
Reach/
Engagement Engagement
Most needs response
needs needs
needs
• Separate online and offline sales • Vertical-specific sales forces with high-
forces, impractical for cross-platform touch and innovation focus
campaigns • Separate reach/response sales force
• “One-size-fits-all” approach • Ability to meet reach requirements as
• Limited category expertise necessary for brand customers
2
• Address current scale and data limitations for targeting
Targeting
• Identify ways to adjust for overlapping audience in reach buys
3
• Help develop low-cost and/or automated processes for
Automated brand reach and response buys
processes
• Establish common technical standards for the industry
4
Online • Identify and communicate success factors for marketers,
creative agencies, and publishers in executing cross-platform creative
5
• Create ongoing forums with marketers for discussion of
Engaging branding approach, limitations, and key developments
marketers