Exploring The Effectiveness of Branded Content October 21, 2013

Consumers are Bombarded With Ads All Day, Every Day

v
Daily Ad Exposure

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The Greatest Loss of Value for Advertisers is Inattention

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How Can Advertisers Reach and Influence Consumers When Neither Polite Nor Rude are Effective?

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What About Native Content?

Specifically, branded content that
! Takes on the natural form and function of the user experience ! Provides value to the consumer through journalistic story-telling

2013 IPG Media Lab. Proprietary & Confidential

So We Had Some Questions

! How does the long-form branded content perform across traditional brand metrics? ! Does it matter where the content lives? ! Brand website vs. 3rd party website? ! How does performance of branded content compare to display ads?

2013 IPG Media Lab. Proprietary & Confidential

We Did Some Research

What? Virtual Lab Test: Exposed consumers to test article page, followed by the post-exposure survey to access branding

Who?

n=2,259 Adults 18+ (Forbes.com readers)

Where?

Sample recruited from relevant sections of Forbes.com into online survey

When?

March 2621, 2013

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Methodology
Test Cell 1 2 3 4 5 Control Page Display Branded Website Brand Content Without Display Brand Content With Display Description Generic article with control ad Generic article with test ad Branded content on brand website Brand content on Forbes.com with control ad Branded content on Forbes.com with test ad Post-exposure survey to access brand metrics

Participants recruited from Forbes.com 2,259 participants recruited into online survey

Participants randomized into test cell and asked to view 1 of 5 webpages

2013 IPG Media Lab. Proprietary & Confidential

3 Test Brands in Different Verticals

Sample recruited from business section of Forbes.com

Sample recruited from lifestyle section of Forbes.com

Sample recruited from finance section of Forbes.com

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Control

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Branded Content Without Display

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Branded Content With Display

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Branded Content On Woodford Website

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Branded Content Works!

Impact of Branded Content

41 35 29 22 28 22 27 29 25 22 29 37 31

0
Unai ded

Control Branded Content

Bran Purc Is a Is a Is a Is a n En hase d Fa Qual Bran Pers gagi Bran v onab i d Inten o t y r I a T B n b r d Re r g u l ility and t/Co e Bra st Bran call nsid nd d erati on
Satisfactory significant difference between branded content with & without display at 90% confidence

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

2013 IPG Media Lab. Proprietary & Confidential

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Those In-Market For Product Appear To Be Particularly Engaged

In-Market Status By Likelihood to Read/Share Branded Content
83 75

45

39 In-Market For Product Not In-Market For Product

Likelihood to Read Article

Likelihood to Share Article

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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While Content On Brand Websites Is Effective, Reach Is The Challenge

Role of Content Location
Control Unaided Brand Recall Is a personable brand Is an engaging brand Is a quality brand Is a brand I trust Brand Favorability Purchase Intent/ Consideration 0% 22% 22% 35% 25% 29% 22% Brand Content on Brand Website 45% 31% 33% 46% 31% 42% 36% Branded Content on Forbes.com 31% 28% 27% 42% 30% 39% 30%

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And, Consumers Are Less Likely To Share & Discuss Content From Brand Websites

45 41 38

29 Branded Content on Brand Website Branded Content on Forbes.com

Likelihood to Share Among Those Satisfied Likelihood to Discuss With Friend/Family Among those Satisfied Satisfactory significant difference between branded content with & without display at 90% confidence

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

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How Does Branded Content Compare To Display?

Branded Content Provides Better Brand Recall Than Display Ads

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33 26 21 0 Unaided Brand Recall 2 Aided Brand Recall Control Display Ad Branded Content (Without Display)

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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Perceptions Impacted More By Branded Content, Particularly Among Those Satisfied With The Article
Brand Favorability
54 43 34 29 37 37 Control Display Ad Branded Content (Without Display) Overall Audience Those Most Satisfied With Article

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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Perceptions Impacted More By Branded Content, Particularly Among Those Satisfied With The Article (cont'd)
Is a Brand I Would Follow On Social Media Sites
17

11

9
6 7

10

Control Display Ad Branded Content (Without Display)

Overall Audience

Those Most Satisfied With Article

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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Branded Content 3x As Effective At Driving Intent

Purchase Intent/Consideration

31 25 22 Control Display Ad Branded Content (Without Display)

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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Branded Content 3x As Effective At Driving Intent 2

7

3 6

Satisfaction With Article

34 37

37 Very Unsatisfied Somewhat Unsatisfied Neither Satisfied Nor Unsatisfied Somewhat Satisfied Very Satisfied Branded Content Without Display 20

34

20 Branded Content With Display

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

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So, What Happens When Display is Added?

Example of Branded Content Without Display

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So, What Happens When Display is Added?

Example of Branded Content Display

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Pairing Display With Branded Content Boosts Awareness

66

Awareness Metrics
51

38 33 26 21

Control Display Ad Branded Content (Without Display)

Branded Content (With Display)

Unaided Brand Recall

Aided Brand Recall

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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Addition Of Display Doesn't Play A Role In Middle & Bottom Funnel Metrics
Persuasion Metrics
34 29 25 22 Display Ad Branded Content (Without Display) Branded Content (With Display) 31 29 Control 41 37

Unaided Brand Recall

Aided Brand Recall

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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Those In-Market For Product Appear To Be Particularly Engaged

In-Market Status By Likelihood to Read/Share Branded Content
83 75

45

39 In-Market For Product Not In-Market For Product

Likelihood to Read Article

Likelihood to Share Article

Control=310; Display Ad n=320; Branded Content (Without Display) n=345, Branded Content (Brand Authored With Display) n=324

Satisfactory significant difference between branded content with & without display at 90% confidence

2013 IPG Media Lab. Proprietary & Confidential

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In Summary
! Because branded content takes on the form and function of the user experience, it is more effective at breaking through banner ads ! Consumer ad avoidance and limited real-estate in banner ads make them less effective at moving beyond top-funnel metrics ! The journalistic storytelling within branded content, however, pick-ups where banner ads leave off and help brands drive more meaningful metrics - like favorability and intent ! While the same content on a brands websites can be effective - Its difficult to achieve reach on a brand website - It is much more likely to drive earned reach and word-of-mouth when it appears on a trusted 3rd party website

2013 IPG Media Lab. Proprietary & Confidential

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