Presentation given my Marcelo Salup, CMO of DMG, to Versailles Breakfast Club on December 3, 2010.

1. Media for the rest of us How to navigate today’s media environment successfully whether you are a small business or a giant company 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

3. I would also like to avoid talking about this media, that media or the other one... 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

4. Advertising is only about modifying Behavior Choice Opinion 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

6. 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

7. Media Delivers 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

8. one 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

9. one decision 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

10. Eye opener #1 All messages are individual All media is local All media exists in the same plane All media goes into the same place 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

11. Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

12. Millward Brown ’s BrandDynamics (c) Pyramid Brand Loyalty: The Link Between Attitude & Behavior How Brands Grow When Ads Work Recency Theory Eye openers #2 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

13. Understanding, Measuring, and Using Brand Equity Nigel Hollis, Andy Farr and Paul Dyson Nov/Dec 1996 For the average 7% of consumers who are “bonded” with a brand, that brand represents 38% of its purchasing But for the average 76% of consumers who are merely “aware”, that brand represents 13% of purchasing ocassions Awareness is not enough... what you need is consumers bonding with your brand 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

14. Brand Loyalty: The Link between Attitude and Behavior Joel Rubinson and Allan L. Baldinger Journal of Advertising Research, Nov/Dec 1996 Only about 12% of a brand ’s consumers can be considered loyal (purchase the brand a second time over 50% of the time). The average brand will lose 50% of its loyal consumers in a year. 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

15. Why Brands Grow Allan L. Baldinger, IPSOS-NPD  Edward Blair, University of Houston  Raj Echambadi, University of Central Florida Journal of Advertising Research, Jan/Feb 2002 Reach wins  Loyalty is a far second Penetration has an 83% correlation with share growth; loyalty only 59% 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

16. When Ads Work John Phillip Jones, 1995 For most products, a single impression is enough to cause a sale. A second impression may not be cost efficient. 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

17. One exposure is far more cost-effective in influencing brand purchase. Recency Theory 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

19. 5% 10% 15% 25% 45% Every media delivers a disproportionate amount of weight to its heaviest viewers 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

20. So... pouring more money into a single medium is inefficient 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

21. And just as ineffective 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

22. Audiences were never monolithic and are even less so today 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

23. so... 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

24. Can it move the needle? Do you reach enough people to make an impact in your sales? 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

25. How far up the inverted pyramid do you need to be? Big Sales - High Reach Small Sales – Low Reach 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

26. How do I know how much reach? 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229 I need to sell 100,000,000 of these That makes it roughly 2,000,000 per week I am 70% of the market  70% of purchasing decisions Each tube = 1 purchasing decision Need to reach 2.8 million people who will purchase toothpaste every week  70% = 2,000,000 If there are 20,000,000 potential buyers and about ¼ of them will be in the market on a weekly basis, I need to reach 56% of them every week; 56% x 5,000,000 = 2,800,000

27. Does my Message... Fit the Media In a recent test we conducted, contextual and behavioral advertising in the web outdelivered regular advertising 3:1 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

28. Tailoring Messaging and media 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

29. High Involvement Low Involvement Rational Emotional The FCB Grid High chance of a financial mistake if the wrong decision is made. Decisions tend to be objective. High chance of a financial mistake if the wrong decision is made. Decision tends to be subjective. Low chance of a financial mistake if the wrong decision is made. Decisions tend to be objective. Low chance of a financial mistake if the wrong decision is made. Decision tends to be subjective. 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

30. High Involvement Low Involvement Rational Emotional The FCB Grid Life ’s Big Decisions (e.g., life insurance) Life ’s Big Pleasures (e.g., a vacation) Life ’s small needs (e.g., toothpaste) Life ’s small pleasures (e.g., a soft drink) 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

31. High Involvement Low Involvement Rational Emotional The FCB Grid Media should be able to convey information (to ease decision, drive to action...) and have some sort of response device Media only needs to convey key points and perhaps a reason why 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

33. How many messages do I need? 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

34. Broad Reaching Media = General Messaging Limited Reach = Customized Messaging How many messages will I need? 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

35. Media Strategy - The Decision Tree So, what do I need to do? (Objectives) Media 1 Does it cover my reach and segmentation needs? Media 2 Media 3 Media 4 Does it match my messaging needs? Can I achieve results with my budget? Leftover Budget? Organize media by some parameter like CPM, Reach, Affinity, audience segmentation… and begin with the “best” medium 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229

36. In summary Number of discrete groups Size of these groups Ability of the media to segment them in a cost-efficient way Messaging needs Budget Maintain Reach & Continuity Affect purchasing decisions 11/15/10 Marcelo Salup - msalup@hotmail.com, marcelo@salup.com, 305-215-7229