Transcript Why keep spending online

Online advertising.. A smart
strategy for the crisis
“We have a
philosophy and a
strategy. When
times are tough,
you build share.”
Procter & Gamble CEO
A.G. Lafley, May 2008
Brands that
continue to
spend in a
downturn
come out
stronger
Past worldwide recessions
1981-1982
• The sales of companies who had kept advertising
during the 81-82 recession had risen 256% over
those who had not*
Early 1990s
• The companies who had cut their marketing budgets
saw ROCE (return on capital employed) decline by
0.8% after the recession.Those who increased their
marketing activity saw an increase of 4.3%
*Source: McGraw-Hill research, 600 companies from 1980-1985
** Source: Hillier analysis, 1000 companies on the Profit Impact on Marketing Strategy database
And in Russia in 1998
Компании «Вимм-Билль-Данн» именно кризис 1998 года
помог к 2000 году стать крупнейшим производителем
сока и молока в России. В то время компания
активизировала рекламную деятельность и на фоне
молчания конкурентов увеличила узнаваемость бренда
и продажи. В ВБД намерены оставаться на виду
и сейчас: маркетинговый бюджет останется на уровне 5%
от оборота компании, однако увеличится количество
рекламы в местах продаж.
Марина Каган, вице-президент «ВБД»
It’s all about share of voice
• If other brands are cutting back, the
marketing landscape is a little less cluttered
and your ad $ will look and act bigger
It’s all about share of voice
• Smart brands should take advantage as the
cost of buying SOV over competitors will
never be cheaper
• It will be much more expensive to re-build
awareness & preference afterwards if you let
it slip
Why you should keep spending
online
Your consumers are online
• In the UK time online is now only 2nd to TV
Source: BMRB Internet
Monitor, Nov 2006; UK
audience, utarget networks
• In Russia, media consumption is also changing fast
– Broadband penetration accelerating
– Sept 07: 11 days/month and 13.7 hrs/month
– June 08: 13 days/month and 16 hrs/month
Source: comScore World Metrix
Online can deliver a clear &
proven ROI
• All online spend can be monitored and made more
effective
• Any consumer actions can be allocated to the
advertising - you can track click throughs
Online can deliver a clear &
proven ROI
• Ineffective spend can be reduced/removed
and other spend upweighted
• Minimal lead times for copy, creative and
placement changes
• Low production costs
Online pricing is competitive
Average CPTs
$100
$90
$80
$70
$60
min
$50
max
$40
$30
$20
$10
$0
TV
Source: «Media Net».
Press
Outdoor
Radio
Internet
Rambler - an essential part of your
media plan
Rambler delivers scale
• 40 million monthly visitors and over 5
million daily engaged visitors
Rambler can deliver a targeted
audience
For male car buyers 25-35…
Advertise on Homepage, Lenta, Autorambler and Rambler
Finance and other properties
For the youth market…
Advertise on Rambler Friends, Rambler ICQ, Rambler Games and
Rambler photo and other properties
We don’t just create advertising
clutter
Rambler takes a structured approach to
ad placement
Branded banner with a
link to client’s website
Mark up with
colour in
catalogue list
Auto + advertising
message
Ad links to dealer’s
web site
Select check-box
«SALE» or «Special
Offerе»
2 banners!!!
And integration
into content.
Scale brings creativity
Rambler is investing in our brand
• Our winter marketing campaign ‘what’s new
today’
– Outdoor, press, TV, radio, online is
reaching 72% of 25-45 internet users
across Russia (99% in Moscow)