Brand Engagement Study - Retail

1. Brand Engagement Study - Retail

2. Brand Engagement Studies • To demonstrate the ability of internet advertising to drive engagement • To measure the effects of internet advertising on brand strength relative to other media • To identify how internet advertising works alongside other brand contacts to increase brand consideration 08

3. Three brand engagement studies to date

4. A total of 38 communications tested 8 14 2 3 14

5. Associative Networks Qualitative research To define conceptual model of engagement for category & test brands PHASE 1 Integrated Communications Evaluation 3 Components of “ICE” Quantitative Research To capture data on brand engagement metrics and on all recent contacts with test brands PHASE 2 Multivariate Modelling To build model of drivers of brand engagement & identify relative impact of different contacts PHASE 3

6. Connecting brand contacts to engagement Attitudes to department stores brands Brand Contacts Internet ad Image Websites TV ad Outdoor ad Quality Department Stores Brand Engagement Press ad Direct Mail News Stories Sales Promotions Sponsorship Events Service Word of Mouth Shopping Experiences Service Experiences NOEFFECT

7. Key qualitativefindings

8. Sources of information Personal experience Sponsored links and search engines Email updates Word of mouth Knowledge and opinions of different stores Newspapers and magazine PR Company websites Newspaper & magazine ads Window displays TV ads In store PR • Information is both activelysought and passivelyconsumed • As an engaging and highly relevant category, consumers are generally receptiveto messages

9. ‘Major high street retailer’ associations Functional/tangible Customer service Emotional/Intangible Everything under one roof Range of products Heritage Sales Trust and reputation Quality Mainstream brands Advertising Familiarity Cues/prompts MAJOR HIGH STREET RETAILERS High street / retail park Nationwide presence Standardised layout Large stores Latent associations and key themes consistent across the category

10. The quantitativeresearch

11. Quantitative sample and fieldwork 1024 women Aged 30 – 50 All to have shopped in at least 3 of the stores included in the study in the last 6 months All to agree with the statement ‘I enjoy shopping in major stores on the high street’ All to have broadband internet access either at home or at work All to use internet at least 2-3 times a week and at least 7 hours a week Fieldwork undertaken between 12 and 27 May 2008

12. Definition ofbrand engagement

13. What Brands want to know: Does Internet Advertising drive brand engagement? What is engagement? Communications Engagement Brand Engagement Media Engagement

14. Brand engagement is expressed via four attributes • I would consider making a purchase from this store • I would recommend this store to friends and family • This store makes shopping an enjoyable experience • This store is one of my preferred retailers

15. Understanding the brand engagement system

16. 7 Engagement FactorsMade up of 35 brand perceptions Sales e.g. This store has sales worth going to Affinity e.g. This store is a store for people like me 2.4% 24.3% Department Stores Engagement Service e.g. This store has knowledgeable staff Quality e.g. This store sells high quality products 10.8% 19.3% 12.1% 16.5% Fits my needs e.g. I can always find something I want in this store Choice e.g. There’s a lot of choice in this store 14.7% Presence e.g. There are branches of this store all over the country

17. Measuring the impactof brand contacts

18. 1/3 of retail brand engagement is made up of base and 2/3 is driven

19. Brands’ own communications account for 5% of driven brand engagement

20. Across the five brands, on average online display advertising has contributed 40% of the gross communications effect

21. Across the five brands, on average online display advertising has contributed 40% of the gross communications effect

22. Average impact of communication channels relative to each other

23. Online advertising works hard for its money Online advertising for department stores is 16 times as effective per £ of spend as the all media average 40% 5 brand average 2.5% Source of the media spend: Nielsen Media Research Ltd Time period: Jan07 – Mar08

24. Website experiences have over twice the impact of brands’ own communications

25. The impact of online experiences in detail

26. How does this compare with the other studies?

27. Key findings

28. In the department storescategory online advertising delivered40% of the marketing communication effect on brand engagement(on average) Key findings

29. Key findings • All media channels can drive brand engagementfor high street retailers • Online advertising has a critical role to play in this • Other online touchpoints create a virtuous circle

30. Key findings • Focused messaging – e.g. “new collection”, “this is easy”, “exclusive” • Simple delivery • messages tend to be interpreted literally or not at all, so don’t be abstract • Get to the point

31. Brand Engagement Study - Retail Presented by Kieron Matthews, IAB and Mary Jeffries,ævolve