This was a presentation made to the group of international advertising agencies meeting in Edinburgh Scotland in May 2009.

1. What’s Next for Agencies ? Greg Stuart Co-author: What Sticks

2. Legacy of The Stuart’s in Scotland `

5. What If We Were Wrong? Worldwide Partners, Inc. Summit Edinburgh, Scotland May 2009 Greg Stuart Co-author: What Sticks

6. Advertising’s Inconvenient Truth Greg Stuart Co-author: What Sticks Insights from Research against US$1Billion in Advertising Spending What If We Were Wrong?

9. $1US Billion Ad Spending Researched 1.1 million consumers surveyed

11. So, What Else do We Know 36% 31% 83% Media Motivations Messaging

14. So What is a Marketer to Do? One Solution for Making Sure Your Advertising Sticks!

17. Are You Prepared if You Are Wrong? Used with permission Cartoonbank.com

20. Who’s Headquarters is This?

22. Today’s Ads for ING Simplifies a Complicated Financial World

24. Creative Matters Source: IAB Cross Media Study B A

25. Creative Makes a BIG Difference Better creative can make the difference between success and absolute failure Ad A Source: IAB Cross Media Study

26. What Made the Difference? Persistent Branding! Source: IAB Cross Media Study B A

28. What Do You See?

30. Media Timing Influences Success Average If Marketer had focused impressions on the 6 hours around lunch time, impact would have been significantly better Time of Day Lunch

31. Sometimes Spending Less is More Introducing New Menu Item: Grilled Chicken Flatbread Sandwich Ad Frequency (or Budget) % Aided Awareness 20% of Broadcast Budget Reinvested 13.6% in Online Point of Diminished Returns 5pt Gain! Cut 6.4% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0.0%

32. Beware of the Diminishing Returns % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5

33. Media Mix Influences Success TV Use Online Use Heavier Heavier Lighter Lighter Heavy Online Heavy TV Heavy TV Light Online Light TV Light Online Heavy Online Light TV 26% 38% 15% 21% Media Usage among 18-49 year old target 34.3 Million!

34. Media Optimizations Matters for Retail Too Payback ROI: Profit Payback Per Dollar Spent on Advertising Cost to Generate an Equivalent Sale (indexed) Overall, Online was the most cost effective & efficient in driving sales

38. “ Most Important Launch In History Of Ford” - Bill Ford F150 Truck is #1 selling vehicle in U.S.

39. The F-150 Online Ads

40. Trying Something Brand New: Home Page Takeover Ad Ran One Day on Each Portal - Roadblock Roadblock 43% One Day Reach

41. Cost Effectiveness of Each Medium Cost to Increase Purchase Consideration Interpretation: If it cost Roadblock $1 (indexed at 100) to increase purchase consideration, then it cost $1.35 for Online, $4.56 for magazine and $11.04 to TV to achieve the same increase. $1.35 $1.00 $4.56 $11.04 Sample Cost 100 Roadblock 456 Magazine 1104 TV 135 Online Relative Cost Index Brand Metric: Purchase Consideration (top 2 box)

42. The Value of Small Changes Ford Media Mix * Traditional Media Plan * Approx. $200 Million Budget Online Online Result was another $750,000,000 in U.S. Truck sales Total of +$1,350,000,000 in U.S. Truck Sales (at retail vs. Base Plan)

45. What If We Were . Wrong? Right? Media Motivations Messaging 36% 31% 83%

46. Greg Stuart [email_address] Thank You +1.631.702.0682

47. Increasing Online Advertising Impact +1,000% by End of Today Bonus

49. Respect Diminishing Returns It’s a Law of Physics in Media % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5

50. Heaviest Online Quintile Captures Half the Ad Impressions Percent of Total Impressions Light Users All other quintiles Heavy Users Avg Freq: 1.0 2.1 3.2 5.5 25.0

51. One Solution: Website Frequency Caps Can Really Help Frequency of 3 Per Week per Site Dramatically Increases Reach & Thus Performance Light Users All other quintiles Heavy Users Increased reach by 72% +50% to 70% in Ad Effectiveness

52. Many Things can Affect Effectiveness (e.g., Time of Day) +10% to 15% in Ad Effective-ness Average If Marketer had focused impressions on the 6hours around lunch time, impact would have been significantly better % Purchase Intent Lunch

53. Results: Size Matters 1 Aggregated results for three brands tested 2 The average of four brand measures tested The 336x280 resulted in an average +54% increase in brand impact vs. 468 x 60 2 +20% to 54% in Ad Effective-ness IAB, DoubleClick Ad Effectiveness Research 2001 Banner Small Rectangle Small Skyscraper Large Rectangle

54. Make Sure EVERYTHING Works! Same Media Budget  310% Increase Source: InsightExpress

55. Creative Possibilities Priceless!

57. Greg Stuart [email_address] Thank You {Again} +1.631.702.0682