Comscore, Inc. · NASDAQ:SCOR
Comscore — ARF Webinar (May 2012)
57 slides from Comscore's conference presentation, May 2012
Slide 1: Next-Generation Strategies for Advertising to Millennials
©) COMSCORE. Next-Generation Strategies for Advertising to Millennials
Slide 2: Your Speaker
Your Speaker
Slide 3: comScore is a Global Leader in Measuring the Rapidly Evolving Digital World
comScore is a Global Leader in Measuring the Rapidly Evolving Digital World, Blanketing the Globe with a Local Presence NASDAQ SCOR Clients 1860+ worldwide Employees 900+ Headquarters Reston, VA 170+ countries under measurement; Global Gewersige 43 markets reported Local Presence 32 locations in 23
Slide 4: Preceding Generations
Preceding Generations €) comScore suonsuan ine Pepisnyanicostinos 4
Slide 5: Silent Generation (1925 — 1941)
Silent Generation (1925 — 1941) Born into hardship of Great Depression and Word War II Time Magazine — “It does not issue manifestos, make speeches or carry posters” No US Presidents from this generation However, many counterculture and civil rights leaders Harnessed technological advances from Worl
Slide 6: Baby Boomers (1946 — 1964)
Baby Boomers (1946 — 1964) Labeled by Born into time of rising prosperity Associated with ¢ and expansions of freedom Still a « First generation to grow up with ©) comScore. scnsiie he Pavan ®
Slide 7: Born into political and economic times
Born into political and economic times Then experienced times of - expansion of Stereotyped as “slackers”, but actually and More than preceding generations Experienced spread of the and C) comScore scons he Pepys 7
Slide 8: The Millennial Generation (1981 — 2000)
The Millennial Generation (1981 — 2000) Coveted by marketers due to size and purchasing power: = Individuals who have come of age in the new Millennium =" Approximately 79 million Millennials in the U.S. = versus 48 million from Generation X * Purchasing power estimated to be $170 billion per year.
Slide 9: Characteristics of Millennials
Characteristics of Millennials Comfort level with technology 93% 88% Ages 18-34 Ages 35-54 Ages 55+ Percent of Consumers Using the Internet by Age (Source: comScore, Inc.) ©) comScore. a SRE
Slide 10: Characteristics of Millennials
Characteristics of Millennials Embrace ethnic, cultural and family diversity oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential 10
Slide 11: Characteristics of Millennials
Characteristics of Millennials Known for multitasking, short attention spans, need for stimulation ©) comScore sunsuunine Popitayanscotious
Slide 12: The Evolving Environment
The Evolving Environment oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential 12
Slide 13: Key Questions
Key Questions # Are Millennials truly set apart from other generations, or are there broad commonalities which span generations? = Is traditional television advertising as effective for Millennials, or is digital a better alternative? = Regardless of the medium, are there unique ways to engage and/o
Slide 14: Study Background
Study Background = Findings mainly drawn from advertising pre-testing » Nearly 1,000 Television Ad Tests » 35 Digital Ad Tests » Over 150 Television Diagnostic Tests » Only categories with broad appeal! included = Primary Vietrics Examined . Liftin Share of Choice » Related Recall . Diagnostics = Ge
Slide 15: Lift in Share of Choice
Lift in Share of Choice™ Selection of Preferred Brand Pre-Exposure 53.3% CAMPANION Advertising is Embedded in its Natural Context to Establish Real- World Respondent Mindset Post-Exposure 59.9% Selection of Preferred Brand Lift in Share of Choice +6.6 points
Slide 16: Changes in Share of Choice Correlate Strongly with Changes in Sales
Changes in Share of Choice Correlate Strongly with Changes in Sales 14 5 12 10 Sales Increase Calculated by 8 MMM 0 2 4 6 8 10 12 14 Sales Increase Predicted by Pre-Test Scores oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 16
Slide 17: History of Prior Generational Studies Conducted by comScore
History of Prior Generational Studies Conducted by comScore €) comSCORE
Slide 18: Prior Studies — Television Ad Tests (Lift in SOC)
Prior Studies — Television Ad Tests (Lift in SOC) Average Lift in Share of Choice 13.4 13:8 10.7 = Younger u Middle-Aged = Older 1999 Study 1988 Study 1961 Study oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential 18
Slide 19: 2011 Study — Television Advertising
2011 Study — Television Advertising €) comSCORE
Slide 20: 2011 Study — Television Ad Test Results (Lift in SOC)
2011 Study — Television Ad Test Results (Lift in SOC) Average Lift in Share of Choice 6.4 E6 = Millennials = Generation X = Baby Boomers = Seniors ©) comScore. sconsnie ve Pitot 2
Slide 21: 2011 Study — Television Ad Test Results (Lift in SOC vs. Fair Share)
2011 Study — Television Ad Test Results (Lift in SOC vs. Fair Share) Average Lift in SOC Indexed to Fair Share 85 83 = Millennials = Generation X = Baby Boomers a Seniors © comScore. soswite Poptayacominns =
Slide 22: 2011 Study — Television Ad Test Results (Related Recall)
2011 Study — Television Ad Test Results (Related Recall) Average Related Recall Results 54% 54% 50% 43% 24% 9 23% 21% 18% Millenials Generation X Baby Boomers Seniors oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 22 = Immediate Recall Delayed Recall
Slide 23: 2011 Study — Television Ad Test Results (Diagnostics)
2011 Study — Television Ad Test Results (Diagnostics) Female Female Baby . . Female Seniors Millennials Top 2. Boomers Top 2 Top 2 Box Avg. Box Avg. Box Avg. 66 70M 708 45 48 49a Commercial Believable | 76A 75A 76 82 80a 67 73h 70 A capital letter indicates a significant difference at the 95% confid
Slide 24: 2011 Study — Digital Advertising
2011 Study — Digital Advertising €) comSCORE
Slide 25: Average Modeled Lift in Share of Choice
©) comScoRE Average Modeled Lift in Share of Choice 6.8 6.4 6.0 i Millennials Generation X = Baby Boomers m Seniors © comScore, Inc. Proprietary and Confidential
Slide 26: 2011 Study — Digital Ad Test Results (Lift in SOC vs. Fair Share)
2011 Study — Digital Ad Test Results (Lift in SOC vs. F Average Modeled Lift in SOC Indexed to Fair Share 104 103 106 = Millennials Generation X =u Baby Boomers = Seniors ©) comScore. scnsiun ie Popeye 2
Slide 27: Strategies for Advertising to Millennials: Employ Strong Creative
Strategies for Advertising to Millennials: Employ Strong Creative €) comSCORE
Slide 28: Over Half of the Impact of Advertising is Driven by the Strength of Creative
Over Half of the Impact of Advertising is Driven by the Strength of Creative % Influence on Market Share Shifts* Numbers represent the percent variance in share shifts explained by the corresponding factors *Includes 396 cases from the comScore Global Validation Summary ig) COMSCORE. cocst Ines repl
Slide 29: Creative Content Coding
Creative Content Coding Developed by comScore in conjunction with the MViarketing Science Institute and leading Academicians All tested ads are coded for more than 200 creative elements that can impact advertising’s effectiveness = Asub-set of these elements, called the Validated Drivers, have been
Slide 30: Employ Strong Creative
Employ Strong Creative , Correlations between each of the Validated Drivers and lift in Share of Choice were compared for Millennials and the older generations (Seniors and Baby Boomers) There were no statistically significant differences . Core campaign drivers were especially powerful among Millen
Slide 31: Core Campaign Drivers
Core Campaign Drivers Average Increase in Lift in Share of Choice among Millennials Brand Differentiation Competitive Comparison New Product/ 0.9 New Feature Information . ©) comScore. nse te Papaya
Slide 32: Employ Strong Creative
Employ Strong Creative . Correlations between each of the Validated Drivers and lift in Share of Choice were compared for Millennials and the older generations (Seniors and Baby Boomers) There were no statistically significant differences , Core campaign drivers were especially powerful among Millen
Slide 33: Selected Other Drivers
Selected Other Drivers Average Increase in Lift in Share of Choice among Millennials Actual Product Shown Longer 0.8 Brand Name/Logo Shown Longer | 0.8 More Brand Name Mentions | 0.5 oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 33
Slide 34: Employ Strong Creative
Employ Strong Creative . Correlations between each of the Validated Drivers and lift in Share of Choice were compared for Millennials and the older generations (Seniors and Baby Boomers) There were no statistically significant differences. Core campaign drivers were especially powerful among Millenn
Slide 35: Other Content Elements
Other Content Elements Elements Stronger Among Millennials Information on Results of Use fo 1.1 Product Benefits Main Message Ld 0.8 Child/Infant/Animal/Animated 07 Character* " *Represents importance of breakthrough and emotional connection oO CO m S CO R E. © comScore, Inc. Proprietary and Confide
Slide 36: Some Examples
Some Examples Amazon Kindle: Comparative with strong product focus ©) comScore suonssueine Popa anscotious oe
Slide 37: Some Examples
Some Examples Garmin: Fun with focus on product performance and results oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential a7
Slide 38: Some Examples
Some Examples Charmin: Digital ad incorporating key content Use 4x Less’ with America’s Softest Bath Tissue. Cha garmin) vassal ‘ oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential 38
Slide 39: Strategies for Advertising to Millennials: Place Ads Around Engaging Content
Strategies for Advertising to Millennials: Place Ads Around Engaging Content €) comSCORE
Slide 40: Engagement and Ad Amplification
Engagement and Ad Amplification comScore has extensively studied the relationship between how engaged viewers are in content and their relative reactions to advertising embedded in that content Engagement is measured via a battery of questions based on Flow Theory — the Psychology of Optimal Experie
Slide 41: Engagement and Ad Amplification
Engagement and Ad Amplification 120 | 110 + 100 - a Higher Engagement 90 = Lower Engagement 80 - 70 + Share of Choice ©) comScore. snsiue te payaso
Slide 42: Amplification Study
Amplification Study =» AcomScore study of more than 3,000 respondents « Participants were questioned about 25 current television programs and 15 websites = The Flow battery was administered to those who indicated recent viewership/ visitation =» Engagement scores were derived for each program/proper
Slide 43: Engagement for Millennials vs. Other Generations
Engagement for Millennials vs. Other Generations % Increase in Engagement for Millennials vs. Others 6.2% Generation X 1.6% u Digital 22.2% ¢ 2g Baby . uTelevision Boomers 10.3% 35.4% Seniors 21.4% oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 43
Slide 44: Strategies for Advertising to Millennials: Consider Millennials Embrace of Diversity
Strategies for Advertising to Millennials: Consider Millennials Embrace of Diversity when Developing and Targeting Advertising €) comSCORE
Slide 45: A Study of Advertising and Ethnicity
A Study of Advertising and Ethnicity =» Compared lifts in Share of Choice by ethnicity and age » Respondents split by ethnicity focusing on: » Caucasians s African Americans = Ads separated into two groups: . With an African American cast » Without an African American cast =» Respondents separated i
Slide 46: Average Lift in Share of Choice for Non-African American Casted Ads
Average Lift in Share of Choice for Non-African American Casted Ads (N=116) 75 6.7 6 + 5 + ‘ ~a- Caucasians 4.4 4 4 3 T Millennials Seniors oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 46
Slide 47: Average Lift in Share of Choice for Non-African American Casted Ads
Average Lift in Share of Choice for Non-African American Casted Ads (N=116) T 4 6.7 6 - 55 5.6 5 4 -=African Americans ~m~ Caucasians 4.4 44 3 r Millennials Seniors oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 47
Slide 48: Average Lift in Share of Choice for African American Casted Ads
Average Lift in Share of Choice for African American Casted Ads (N=24) 7.3 -—# African Americans - Millennials Seniors oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 48
Slide 49: Average Lift in Share of Choice for African American Casted Ads
Average Lift in Share of Choice for African American Casted Ads (N=24) 8 5 7.3 7 4 6 4 5.6 =—sAfrican Americans 5 5.3 =a—Caucasians 4 4.2 3 T Millennials Seniors oO CO m S CO R E. © comScore, Inc. Proprietary and Confidential. 49
Slide 50: Strategies for Advertising to Millennials: Help Millennials Make Informed Choices
Strategies for Advertising to Millennials: Help Millennials Make Informed Choices €) comSCORE
Slide 51: Millennials and Brand Loyalty
Millennials and Brand Loyalty General consensus suggests Millennials are less loyal than other generations. Reasons commonly cited include: Growing up bombarded by messages from brands, they are forced to seek out and evaluate the best options themselves. Product life cycles are shorter, giving bran
Slide 52: But They Are Decisive at a Point in Time
But They Are Decisive at a Point in Time Average Percent Switching Brands within Female Generational Groups 35 5 30 25 + 23 21 20 18 19 15 - =a Average Brand Switching 10 5 5 4 0 T T 1 1 Female Female Female Female Millennials GenxX Baby Seniors Boomers oO CO m S CO R E. © comScore, Inc. Proprietary
Slide 53: What Does This Mean?
What Does This Mean? Point in time decisiveness doesn’t conflict with the common consensus on brand loyalty of Millennials. Lack of brand loyalty is based on changes over time. It does refute assertions that Millennials are fickle and lack any kind of loyalty to brands. Rather it suggests Millennial
Slide 54: When Seeking Information, Digital is the Choice of Millennials
When Seeking Information, Digital is the Choice of Millennials Which if any of the following do you use for comparison shopping when you are trying to find the best price for something ? (please check as many as apply) The internet on computer The internet or apps on cell phone —_ Millennials (16-29
Slide 55: Information From the Internet is Persuasive
Information From the Internet is Persuasive AMAZON.COM +t, dsehne. wohave sscommensatons oryou (wetDachne?) ‘The Halloween Store: Scary Good Deals ‘Prime Daphne's Amazon.com iif Today's Deals | Gifts & Wish Lists _ GiftCards YourAccount | Help ~ Example: Expo TV User Generated Product Reviews ‘Membe
Slide 56: Conclusions
Conclusions Millennials have a different worldview from other generations which has been shaped by the ubiquity of technology and media Television advertising tends to be relatively less effective, and digital advertising tends to be more effective among Millennials Many of the same strategic approa
Slide 57: Questions?
Questions? Contact... For a copy of this deck dcrang@comscore.com and the whitepaper... sflosi@comscore:com €) comSCORE