Nice, 8 November 2017

Andy Brown

CEO & Chairman, Kantar Media

@andyjamesbrown

THE DEATH

OF THE

AD SPOT?

A new international study exploring many of the key challenges faced by the industry

Our response: DIMENSION

5of the largest advertising markets worldwide

Brazil, China, France, UK, USA

5,200+Consumers

(Connected Adults)

40 Industry leaders from Marketing,

Media & Communications

40 Industry leaders from Marketing, Media & Communications including

DIMENSION 2017

Have access to

three or more

connected devices

Of total sample =

HEAVY USERS –

access online media

several times a day

CONSUMER SAMPLE

5,213 connected adults

18+ years old

55% live in an urban setting

5 major ad markets

Sample

DIMENSION 2017

Some of our findings

2

Integrated brand campaigns

1

Attitudes to advertising3

Who’s feeding ad blocking?

4

A call for quality

Attitudes to Advertising

Consumers attitudes towards advertising

overall remain positive

1

1. Consumers think advertisers are getting better at reaching them

Consumers either

like / tolerate

advertising

But online is less popular than advertising in more established vehicles

Advertisers are doing a

better job of

communicating with me

now than in the past.

73% agree

I would like to have more

control over the types of

advertising that I see

online.

66% agree

Base: 5,213 connected adults.

Source: Kantar Media, DIMENSION study 2017

Integrated Brand Campaigns

Integrated campaigns across media are

recognised by consumers, serve as a sales

enabler and are becoming an expectation of

successful brands

2

Online and more established forms co-exist in the media world of the

connected adult

Higher % of sample felt more positive about ads within established media

formats than online equivalents, e.g. negativity around ads on online media

forms of print (80% print Vs 70% online)

HEAVY segment particularly positive about ads on ‘TV’

One platform does

not destroy the

other, it makes the

other adapt,

change, and

complement.

Paulo Saad,

Bandeirantes Group,

Brazil

Base: 5,213 connected adults.

Source: Kantar Media, DIMENSION study 2017

All media forms still have a major role to play

Consumers adapt and change, not replace media forms

Established Online Mobile

Watch TV 97% 73% 70%

Listen to the Radio 91% 68% -

Read articles 83% 93% 84%

Q: How often do you notice advertising from a similar brand across different media (TV, social media, online video, magazines, etc)?

Base: 5,213 connected adults

Source: Kantar Media, DIMENSION study, 2017

85%of consumers

claim they notice

multi-media campaigns

43% more likely to

go online to learn more

about the brand

46% likely look for

the brand in store

All media forms still have a major role to play

Integrated campaigns are recognised by consumers

Ad Blocking

Efforts to deliver targeted advertising and

relevant content are welcomed, but we’re

at risk of becoming our own worst enemy.

3

Sophisticated targeting tools to Consumers are working

Aware of being reached - personalisation noticed

Question: How often do

you see ads that appear to

have been specifically

shown or tailored to you?

say they sometimes

or often see ads

aimed at them

(89% of HEAVY)

agree they prefer ads

that are relevant to

them

agree such ads are more

interesting to them

Question How strongly do you agree / disagree …?

agree they like to see relevant

ads based on browsing history

Base: 5,213 connected adults.

Source: Kantar Media, DIMENSION study 2017

Blind and unthinking

[online targeting] is like

going into a department

store and walking briefly

past the shoe section,

glancing at the shoes, and

saying you quite like those,

and then for the next hour

having some sales man

running around the store

[after you] saying buy these

shoes, buy these shoes.

There is no depth,

no brand context, no

consumer understanding.

Nick Emery, Mindshare

Consumers: at a tipping point

We’re becoming our own worst enemy … at risk of feeding ad blocking!

We have become so bombarded by

advertising I don’t take any notice of it

anymore.

Respondent, UK

agree/strongly agree they often

see ads for something they’ve

already bought

agree/strongly agree ‘Sometimes

I see the same ad over and over

again, it's too repetitive’.

20% say they always use

adblocker software

(a further 34% say they

‘sometimes’ use a blocker)

Amongst those with adblockers, 47% claim

to like or tolerate advertising, suggesting

that their concern is with aspects of online

advertising as opposed to with advertising

as a whole

Base: 5,213 connected adults

Source: Kantar Media, DIMENSION study 2017

A call for data quality

Consumer relevance is driven by data; and

‘data’, in all its forms, is a key topic for the

industry’s leaders.

4

Base: 5,213 connected adults.

Source: Kantar Media, DIMENSION study 2017

The more we get

smarter with data…the

bigger the chasm will

become regarding the

message not being

attuned to the context or

the relevancy of how the

audience has been

segmented.

Paul Frampton,

Havas Media Group, UK

Consumer relevance is driven by data; and ‘data’, in all its forms,

is a key topic for the industry’s leaders.

What tells me whether

what I buy has good data

quality?

I repeat: third-party tools.

Erik-Marie Bion,

AOL Advertising, France

What does it

mean for us?

2

Integrated brand campaigns

1

Attitudes to advertising

3

Who’s feeding ad blocking?

4

A call for quality

1. Mind the measurement black hole! Secure investment and consensus

to deliver holistic measurement if brands are to sustain (and increase) ad spend

Brands are activating and executing

holistic campaigns

Connected consumers

are recognising and

responding to them …

AUDIENCE

MEASUREMENT ATTRIBUTIONCONSUMERBRANDS

Common Currencies

Universally-understood & trusted metric

Fuel buying and selling for the future

2. Deliver confidence & accurate standards across all media platforms

Comparable, independent metrics are needed else ad industry growth is at risk

“The media supply chain

is murky at best,

fraudulent at worst”

A final thought

The business has changed unrecognisably… digital itself has

changed the way that the ad industry works…driven by

available technology and consumer behaviour.

(Today you need) engineers who can speak human… agencies

and clients need to be good interpreters.

Data is key but if you put rubbish meat in the top of the sausage

machine you end up with a rubbish sausage. It doesn’t

suddenly turn into a fantastic sausage.

(We will always need) cognitive skills coming from a human.

Mark Howe, Google, EMEA