Philips Healthcare Advertising Update

1. Philips HealthcareAdvertising Update October 5, 2011

2. Advertising Team Brigitte Franssen Global Branding and Advertising Lisa Jenei Amanda M. Brown Advertising Manager Advertising support

3. Agenda • Review of our agency partners • Introduction to new creative concept • Process for ad development • Ad development costs • 2010 media spend summary • Process for requesting a media schedule • Advertising Order Site refresher

4. Advertising Partners Carat– media planning and buying agency Carat researches opportunities, provides recommendations, secures media placements and provides post campaign data for our online campaigns. Anderson DDB & DDB Bovil – creative agencies A-DDB in Toronto and DDB Bovil in the Netherlands are the creative agencies commissioned by Philips Healthcare for the development of all print and online advertisements. Creanza – post production agency Creanza has all ads on file. Creanza reformats the ads to fit the mechanical specifications required by each publication and delivers them by deadline. Creanza also manages our ad order site, keeping it updated with current ads and handling requests submitted online.

5. New creative concept 2011 Objective: Building on the new Brand experience The New creative campaign was developed to build on the new Philips brand look and feel. It reinforces the strong “People Focus” The campaign visualizes how the Philips focus on people translates into the best outcome possible. Each ad is designed to highlight the one “key insight” that differentiates our product. These insights go beyond the clinical benefits and highlight the higher level benefit to either the patient or the physician

6. New creative concept 2011 The idea • Uses a series of images to tell the story and demonstrate how we get to the primary objective– better patient outcomes • This concept brings emotion to the clinical world • Non-clinical images adds softness and warmth • in keeping with the Philips brand • This concept uses the new photographic style and leverages the look and feel of the new Imaging 2.0 website

7. Images-Telling the Philips Story

8. Images-Telling the Philips Story

9. Images- Telling the Philips Story

10. Images- Telling the Philips Story

11. Images Telling the Philips story Concept is comprised of 4 elements: The Inset Image The Portrait Image The Clinical or Product Image The Copy Box 1 2 3 4

12. Images • Telling the Philips story • The Inset image: • Introduces a warm human element showing • the interaction between a patient and • a caregiver (doctor, nurse, technician etc.) • It puts the focus on the patient rather than • the machine

13. Images • Telling the Philips story • 2. The Portrait Image • This represents the high level benefit- a patient with a favorable outcome. • A head-on, close-up shot of the patient in their natural lifestyle setting helps to evoke emotion. • In cases where the benefit relates directly to the clinician- a portrait of the medical professional can be used. (see example next slide)

14. Images • Telling the Philips story • Example: Portrait Image featuring a medical professional. • Portrait Image can be either patient focused or health care professional focused. • It is important that we use images that are most appropriate for telling the story effectively.

15. Images • Telling the Philips story • 3. The Clinical or Product Image • Clinical Image does three things: • It highlights the problem • It provides an element the audience can • relate to • It represents the important role of PHC in • a successsful diagnosis • d) It reinforces the high quality of the images Very important: The clinical image must be relevant to the patient shown. In this case a Pediatric Image

16. Images • Telling the Philips Story • 3. The Clinical or Product Image (cont.) • Product Image: • To be used • By a non-imaging modality • When a clinical image is not available • Preferably be an image of the product in use or just a beauty shot of the product • It captures the system/solution we are talking about • It highlights PHC’s involvement in the category

17. Images • Telling the Philips story • 4. Copy Box • The headline captures the Insight/High level benefit & ties the story together • The copy: • Provides the support points • Connects to Imaging 2.0 (as appropriate) • Has a clear call to action

18. Images- Telling the Philips Story Online banners Introductory Series Transition to Imaging 2.0 View the animated banner ad here: http://www.addbinteractive.com/Philips/Images_Campaign/index.html Sign-off and call to action

19. Images- Telling the Philips Story Deliverables for Marcom Team • Creative Brief – complete using the new, standardized Marcom brief • Images (all images must be Hi res) • Inset Image • Image depicting interaction between a patient and a caregiver (doctor, nurse, technician etc.) • Portrait Image • A head-on, close-up shot of the patient in their natural lifestyle setting • Clinical or Product Image • Clinical images must relate directly to patient featured in ad • Non-imaging modalities can submit a product image • Call to action. The landing page must be designed to pay off the call to action • URL www.Philips.com/xxxxxxx

20. Philips Healthcare New concepts 2011 Image Sourcing • If a photo shoot has already been done or “on brand” images exist • Select a few images of the patient and technician/physician interaction • Try to find some portrait shots of the same models in the discard bin • If a portrait shot is not available the agency will source a stock shot • If you are planning to do a photo shoot following the new photographic style • Direct the photographer to take “Portrait” style photographs of each model used in the shoot (A head-on, close-up shot of the patient in their natural lifestyle setting) • Would be best to have agency to provide creative direction prior to shoot

21. Process: Development of Ads Briefing Marcom manager to complete brief (use new standardized Marcom brief) Brief is sent to agency (DDB) for review T-con call to discuss brief between DDB and Philips Client Agency (DDB) to make revisions to brief based on discussion Agency forwards final briefing document to Philips for approval IMPORTANT: the following key stake holders should be involved in the briefing process: Marcom Manager Senior Director or V.P. of Marketing Product Manager The key to creating a great ad is to provide DDB with a clear and detailed creative brief. 

22. Process: Development of Ads Development Marcom Manager signs off on cost “estimate” giving approval Agency (DDB) creates ad concepts based on the approved brief Agency presents concepts to Philips Client Concepts typically include 3 draft headlines 1-2 drafts body copy Philips to discuss internally and choose one concept to move forward with Philips directs DDB to make any changes necessary For online ads, all changes must be received prior to programming Agency makes the requested revisions (1 round is included in cost) Philips gives final client approval Final approval must include legal & regulatory approval A-DDB cannot begin the development of any ads until they have received a signed “estimate” from the Marcom Manager.

23. Process: Development of Ads Production Agency (DDB) to produce final files Agency proofreading and internal approval Agency forwards final ad to Creanza for resizing & delivery Agency must receive approval from client on final art prior to upload Ad is complete! A few things to note… Timing: DDB's turnaround time for the completion of an ad is 3 to 4 weeks (from briefing to final file delivery). Revisions: The cost of your ad includes one round of revisions, any changes beyond this will incur additional fees.

24. Anderson DDB Advertising development costs We have negotiated a package rate for all Businesses using Anderson DDB. Print ad: $11,500 to $14,500 Online ad: $10,100 to $13,200 (includes Flash) Online ad when a print ad for this product already exists: $5,961 to $7,461 (includes Flash) The cost of ad development can vary based on multiple factors. An estimate for your specific ad will be provided by DDB at the beginning of each project. Costs shown include briefing, development, one round of revisions, stock photography, & production. Marketing Materials: DDB can also be commissioned for the creation of marketing materials such as brochures, mailers and campaigns surrounding product launches.

25. 2010 Media Spend Summary Total Spend- $3.6MM

26. BU Media Spend Implications • $3+ Million spent annually on Advertising by Philips Healthcare • Split amongst 25 businesses • Many targeting the same audiences, utilizing the same publications/sites • In Q4 2011, overarching Imaging Campaign was executed in support of Imaging 2.0 concept • Aunt Minnie • Hotel Networks • Major radiology-specific publications and sites • High impact units such as page takeovers, consecutive RHP ads and belly bands • Major trade show support with Outdoor advertising • When related businesses work together and leverage budgets, more value can be delivered via larger investment media partnerships

27. Media: Process for Booking Media via Carat Marcom Manager completes media briefing form (we are still using a specific media briefing form) Philips Advertising Manager submits completed form to Carat Carat uses completed media brief to research and provide a media recommendation There is generally a two week turn around for all media requests

28. Media: Process for Booking Media via Carat Completed media recommendation is then sent back to the Marcom Manager to review and request any changes Marcom Manager to approve final schedule Advertising Manager works with Carat to book media Advertising Manager submits your media schedule along with creative rotation to Creanza Creanza works off of this schedule to deliver the correct advertising materials to each publication by deadline

29. Philips Healthcare – Ad Order Site All completed ads are housed on the new Ad Order Site and made available to all of Marcom.

30. Philips Healthcare – Ad Order Site Print ads and online ads that have been developed by the BU’s are available to order on this website.

31. Philips Healthcare – Ad Order Site Ads can be searched by modality, language, or by keyword.

32. Philips Healthcare – Ad Order Site Choose an ad by clicking the shopping cart icon, this saves the ad in your shopping basket.

33. Philips Healthcare – Ad Order Site Open your shopping basket to finalize and order your ad. Provide details for size needed and delivery instructions.

34. THANK YOU!