lamac seminar miami 2009

8/8/2019 LAMAC Seminar Miami 2009

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Crisis without Precedents

- Video CNN -


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The day is born from the dark night

- Video -


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Don Schultz

Professor Emeritus of Service at Northwestern

UniversitySpecialist in integrated marketing and

communications


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Don Schultz

Promote to the right consumer; not just everyone.

Indentify motives.

Build relationships, not just reach.

People buy from people they like.

Use media with which the consumers are involved(engagement).

Ratings dont measure relationships, they measure opportunities-to-see.

The real issues are affinity and engagement.

Use multiplatform communications.


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CEOs

Worldwide

Regional

Agencies Top Management


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Premise

The world is going through an economic crisis without

precedents.Media planning is going through a process of

modernization.

Now more than ever media buyers and advertisers

have to change the way they do things and find new

inspirational concepts.


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Questions

1. Are you in agreement with this premise?

2. What do you think should be the role of cable TV?


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Questions


2. What do you think should be the role of Cable TV?


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MainardoMainardo dede NardisNardis

CEOCEO WordwideWordwide OMDOMD

Are you in agreement with this premise?


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A mix of art and science


CEOCEO WordwideWordwide OMDOMD



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Creative brand-consumer connection


CEO Worldwide OMDCEO Worldwide OMD



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AndrewAndrew SwinandSwinand

President of Global OperationsPresident of Global Operations StarcomStarcom



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Discrete market segmentation





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Exploit the digital era through interactive communications


PresidentPresident ofofGlobalGlobal OperationsOperations StarcomStarcom



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DavidDavid BylesByles

LLder Latinoamder Latinoamricarica MindshareMindshare



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Mariano RomMariano RomnnCEO RegionalCEO Regional MediaComMediaCom


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Crisis equals Opportunity


Mariano RomMariano RomnnCEO RegionalCEO Regional MediaComMediaCom


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EdgarEdgar TarazonaTarazonaPresidentPresident LatAmLatAm

Universal McCannUniversal McCann


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The constant is change


EdgarEdgar TarazonaTarazonaPresidentPresident LatAmLatAm

Universal McCannUniversal McCann


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Questions


2. What do you think should be the role of Cable TV?


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What do you think should be the role of Cable TV?


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Pay TV is the largest provider of qualitycontent in the region





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The content give you the context to create relationships

The opportunity is in the partnership


CEO Worlwide OMDCEO Worlwide OMD



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Pay TV offers the opportunity to define audiences byinterests and experiences





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The right message, in the right place, in the right context is moreeffective. Contextually relevant content is more memorable, more

action orientated and drives better purchase intent





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Channels are BRANDS





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Pay TV owns strong brands, with values,Based on content of quality





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Integrate brands with content





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Think of Pay TV as multiplatform brands, not just TV





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Mariano RomMariano Romnn

CEOCEO MediaComMediaCom



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We should not be afraid of innovation

Mariano RomMariano Romnn

CEOCEO MediaComMediaCom



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Edgar TarazonaEdgar Tarazona

PresidentPresident UniversalUniversal McCannMcCann LatamLatam


h d hi k h ld b h l f C bl ?


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Take advantage of Pay TVs content and explore new waysof brand integration

Edgar TarazonaEdgar Tarazona

PresidentPresident UniversalUniversal McCannMcCann LatamLatam



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The business world agrees with theacademic world that there is a need for

change


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It is imperative to accelerate the adoption

of new models of thinking


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The new model is being built based on

ENGAGEMENT


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What is

engagement?

How do we apply it

to brand

development?

How do we apply

it to mediastrategy?

How is it

measured in

TV?


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Bobby Calder

Distinguished Professor of Marketing,Kellogg School of Management

Bobby Calder


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Bobby Calder

We are in a transition to a new model of marketing

that will prevail over the challenge of hyper-

competition.

The new trend in branding is building brands based

on motivational engagement.

The media companies need to transition from selling

time and space to selling their brands.

These brands can help provide the motivationalengagement that the new model of branding demands.


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What are we doing in Latin America in

regards to this?


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Pioneer study on engagement inTelevision in Latin America

E g g t d


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Engagement and

Advertising Effectivenessin Television in Latin

America

Bobby CalderProfessor Charles H. Kellstadt de Marketing, Kellogg School of Management

Director of the Center for Cultural Marketing

Edward C. MalthouseProfessor of Integral Marketing Communications in Northwestern University

Specialized in media and data mining

Co-editor of The Journal of Interactive Marketing


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Bobby Calder

Ed Malthouse

Objectives

Evaluating the relationship between engagement andadvertising effectiveness

Evaluating the profile of several programs and channelsbased on the different experiences that make up

engagement

Evaluating how congruency between message andcontext potentializes advertising effectiveness

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Bobby Calder

Ed Malthouse

Non-Objectives

We are not here to say that one program is better thananother

We are not here to say that one channel is better thananother

We are not here to say Pay TV is better than BroadcastTV

We are not here to evaluate any networks quality

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Why these two professors?


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Bobby CalderEd Malthouse

y p

Because they are the two professors with the longest history of

exploring engagement in media.

They have explored engagement in a sophisticated way, based onhuman experiences.

Bobby

Calder

Ed

Malthouse


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Why OTX?


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They have developed many studies on engagement in

media.

They have a specialized study to evaluate advertising

effectiveness.

Why these three countries?


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Argentina, Colombia and Mexico represent 60% of Pay TV

Households in Latin America

Distribution of Pay TV Households - LatAm

Mexico, 22%

Rest of LatAm,

40%Colombia, 18%

Argentina,21%

What is Engagement?


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Bobby CalderEd Malthouse 55

What is Engagement?

55

Engagement is the group ofexperiences of a person

towards a mediums content.

Experiences are the thoughts, feelings and beliefs of an

audience about a medium.

How can we catalogue these experiences?


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Social

Utilitarian

Projection

InspirationalEmotionalIdentity

Social


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This program gives me something to talk about. It frequently comes up in conversations.

I love talking about it with my friends and peers.

Utilitarian


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This programs gives me good advice and tips that I can apply inmy daily life.

I get ideas just watching it.

I learn how to do new things.

Projection


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This program takes me away from my daily life, I can picture

myself in the places and times that it shows.

When I see it I can escape my reality.

It helps me relax

Inspirational


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It makes me feel that I can do important things in my life, and it

inspires me to match what other people have done.


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Identity


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It makes me feel like I belong to a club

This channel reflects the way I want others to perceive me

How do we evaluate an experience?


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Example: ProjectionIt is evaluated by asking the following questions:

Can you indicate how much you agree with the following statements?

This is the type of the program that takes my mind off things

that are going on in my life.

This is the type of program that makes me picture myself in theplaces and times that it describes.

This is the type of program that allows me to forget my reality

when I watch it.

Experiences: Social, Utilitarian, Projection and Inspiration


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Technical Info

Technical Info


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Methodology

Argentina, Colombia and Mexico

Online survey

Each participant was recruited based on the TV genre that he/she

watches

The same 4 spots were imbedded in each mini-program The study was divided in 6 cells for each country: 4 cells for Pay TV and

2 for Broadcast TV

Target Men (50%) and women (50%) 18-54

Have Pay TV

Watch TV for more than 10 hours a week

Sample

1350 surveys

225 surveys per cell (divided by the three countries)


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Results: Engagement in Latin America

Key finding


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We found that in all countries, all cells and all programs

there is a positive correlation between engagement and

advertising effectiveness


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Engagement and advertising effectiveness

Greater engagement = Greater Purchase Intent


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Mexico Ch1 - Beer

Mexico Ch 2 - Movie

Mexico Ch 3 - Auto

Mexico Ch 4 - Cleaner

Colombia Ch 1 - Beer

Colombia Ch 2 - Movie

Colombia Ch 3 - Auto

Colombia Ch 4 - Cleaner

Argentina Ch 1 - Beer

Argentina Ch 2 - Movie

Argentina Ch 3 - Auto

Argentina Ch 4 - Cleaner

Purchase Intent(Congruent Ad)

(Top 2 Box - indexed to country overall)

Less Engagement More

Engagement

LessPurchase

Intent

MorePur

chase

Inten

t

Attitude towards Ad per Brand in Mexico


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3.37

3.05 3.07 3.022.942.66 2.75 2.61

113 115 113104

0

1

2

3

4

5

Audi Victoria Terminator Glade

AttitudeTowardsth

eAd

0

20

40

60

80

100

120

140

GrowthIndex

People with high engagement with the program

People with low engagement with the program

Growth Index

Attitude towards the ad is calculated based on the following questions:

Would you describe the ad as emotive/motivating/likeable?

Average Index: 114

Attitude towards Ad per Brand in Argentina


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3.133.4

3.11 3.092.8

3.27

2.812.68

112104

111115

0

1

2

3

4

5

Renault Heineken Harry Potter Lysoform

At

titudetowardstheA

d

0

20

40

60

80

100

120

140

GrowthIndex



Growth Index

Average Index: 110



Attitude Towards ad per Brand in Colombia


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3.47 3.433.53

3.462.98

3.16 3.212.97

116109 110

116

0

1

2

3

4

5

Audi Redds Terminator Glade

A

ttitudetowardsthead

0

20

40

60

80

100

120

140

GrowthIndex



Growth Index

Average Index: 113




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Purchase Intent by Brand in Argentina


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6.79

7.9

7.05

8.07

66.86 6.24

7.73113 115 113

104

0

1

2

3

4

5

6

7

8

9

10

Renault Heineken Harry Potter Lysoform

PurchaseIntent

0

20

40

60

80

100

120

140

GrowthIndex



Growth Index

Purchase intent is measured in a 1-10 scale

Average Index: 111

Purchase Intent by Brand in Colombia


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7.78

8.89

8.058.48

5.98

8.15

7.346.74

130 126109110

0

1

2

3

4

5

6

7

8

9

10

11

Audi Redds Terminator Glade

PurchaseIntent

0

20

40

60

80

100

120

140

GrowthIntent



Growth Index

Purchase intent is measured in a 1-10 scale

Average Index: 119


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A single program can have different engagement levelsdepending on the experience


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Engagement takes place at three levels:

Channel

Program

Spot


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Mexico - Programs

Two and a Half Men Warner Projection - Mexico


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6.48

5.11

7.16

4.36

Social Utilitarian Projection Inspirational

Experience

Engageme

nt

0-10 Scale

Two and a Half Men helps me escape from my daily

life

24 Fox Channel Projection and Social - Mexico


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7.43

5.92

7.82

5.14


Experience

Engag

ement

24 projects me to a different reality, and gives me

something to talk about with my friends

0-10 Scale

News Hechos Noche Azteca 13 Social Mexico


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Bobby Calder

Ed Malthouse

7.89

6.566.28

5.66


Experience

Engag

ement

Hechos Noche is a source of conversation topicsfor me

0-10 Scale


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Bobby Calder

Ed Malthouse

Mexico - Channel

History Channel Social Mexico


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Bobby Calder

Ed Malthouse

8.54

7.8

8.12

7.48


Experience

Engag

ement

History Channelgives me something to talk about

0-10 Scale


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Bobby Calder

Ed Malthouse

Argentina - Programs

Numb3rs A&E Projection - Argentina


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Bobby Calder

Ed Malthouse

6.015.7

7.13

4.89


Experience

Engag

ement

Watching Numb3rs takes me away from myreality

0-10 Scale


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W hi T l f N id i h

News Telefe Social - Argentina


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Bobby Calder

Ed Malthouse

7.03

6.58

5.144.97


Experience

Engag

ement

Watching Telef News provides me withconversation material

0-10 Scale


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Bobby Calder

Ed Malthouse

Argentina - Channel

TNT Projection - Argentina


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Bobby Calder

Ed Malthouse

5.35

4.08

5.78

3.6


Experience

Engag

ement

Watching TNTtakes me away from reality

0-10 Scale


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Bobby Calder

Ed Malthouse

Colombia - Programs

How I Met Your Mother takes my mind off my daily life

How I Met Your Mother Fox Life Projection and social - Colombia


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Bobby Calder

Ed Malthouse

7.19

6.56

7.36

6.45


Experience

Engag

ement

How I Met Your Mothertakes my mind off my daily life,and gives me something to talk about with my friends

0-10 Scale

C.S.I. AXN Projection - Colombia


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Bobby Calder

Ed Malthouse

7.16

6.58

7.59

5.16


Experience

Engag

ement

I like to imagine Im part of the C.S.Iteam

0-10 Scale

hi h C l i

News Caracol Social - Colombia


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Bobby Calder

Ed Malthouse

7.6

6.49

5.82

5.36


Experience

Engagement

Watching the News on Caracol gives me

something to talk about

0-10 Scale


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Bobby Calder

Ed Malthouse

Colombia - Channel

Discovery Channel teaches me useful and

Discovery Channel Utilitarian Colombia


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Bobby Calder

Ed Malthouse

8.46

8.8

87.87


Experience

Engagement

Discovery Channelteaches me useful and

practical things

0-10 Scale


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Bobby Calder

Ed Malthouse

Congruency

What is congruency?


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Bobby Calder

Ed Malthouse

It is creating a coincidence between the experience of an

ad, and the experience of a program

Congruency potentializes the existent engagement aconsumer has with the medium

Therefore, it increases advertising effectiveness

Key Finding


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Bobby Calder

Ed Malthouse

We found examples which prove that congruency

contributes to increase the advertising effectiveness

created by engagement

Two studies combined for the first time


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Bobby Calder

Ed Malthouse

Mexico

WITHOUT CONGRUENCYWITHOUT CONGRUENCY WITH CONGRUENCYWITH CONGRUENCY

Mexico

Audi in Clean House of Discovery H&H: there is NO


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Bobby Calder

Ed Malthouse

y

congruency

4

5

6

7

8

9

10

Social Utilitarian Projection Inspiration

Program

Ad

Engagem

ent

Mexico

Audi in 24 of FOX: there IS congruency


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Bobby Calder

Ed Malthouse

4

4.5

5

5.5

6

6.5

7

7.5

8

8.5


Program

AdEngagement

Purchase intent increases 8 5% when there is

Mexico


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Bobby Calder

Ed Malthouse

Purchase intent increases 8.5% when there is

congruency

6.7

7.3

Without Congruency With Congruency

Audi Purchase Intent

8.5%


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Bobby Calder

Ed Malthouse

Argentina



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Argentina

Lysoform in Clean House: there IS congruency


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Bobby Calder

Ed Malthouse

0

1

2

3

4

5

6

7

8

9

10


Program

AdEngagement

Purchase intent increases 7% when there is

congruency

Argentina


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Bobby Calder

Ed Malthouse

7.5

8


Lysoform Purchase Intent

7%


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Bobby Calder

Ed Malthouse

Colombia


Colombia

Glade in C.S.I. : there is NO congruency


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Bobby Calder

Ed Malthouse

0

1

2

3

45

6

7

8

9

10


En

gagement

Program

Ad

Colombia

Glade in Clean House: there IS congruency


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Bobby Calder

Ed Malthouse

0

1

2

3

4

5

6

7

8

9

10


Program

Ad

En

gagement

Purchase intent increases 9% when there is

Colombia


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Bobby Calder

Ed Malthouse

congruency

8.2

9


Glade Purchase Intent

9%

Conclusions

Engagement is a universal concept, it can be observed inall the countries and categories included in our analysis


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Bobby Calder

Ed Malthouse

all the countries and categories included in our analysis

Engagement is a composition of different experiences

Engagement has a direct relationship with advertisingeffectiveness

Each channel has a different profile according to itsexperiences

When there is congruency between the experience of anad and the experience of a program, there is a positiveeffect on the advertising effectiveness

Creating congruency is more an art than a science


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Conclusions

Conclusions

The crisis is real.


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Academics and top industry executives agree on the need for

change.

The new paradigm is being built based on the concept ofengagement.

We conducted this study to make this new reality evident inLatin America.

Channels, agencies and advertisers have the opportunity andthe responsibility to take action.

k d h f

For Agencies and Advertisers


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Take into consideration the measurement of engagement as a

key variable in media planning not just ratings and CPM.

Engagement as a

syndicated metric

Consensual concept

Systematic and holisticmeasurement

Integrated to optimizers

Partial and individual

advancements

Research on specific brands and

media

Associated indicators / Symptoms

Pre-optimization or weighting

We need to sell differently.

For Networks


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We need to sell differently.

We need to understand the essence of our brand.

We need to understand the essence of our clientsbrand.

Sell brands, not just time and space.

Dont be afraid to innovate, be bold.

Dont focus only on the numbers, but move towardsengagement and brand value.

Construct creative, organic and multiplatform

proposals that will help us create an interactivecommunication.

For All of Us


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This is a historic opportunity for us to play aleading role in the change of our industry.


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Copyright LAMAC 2009

lamac seminar miami 2009

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