1) Smartphone usage in Colombia is rising rapidly, with over 30% of Colombians already using smartphones. Mobile internet subscriptions in Colombia are projected to increase to 65 million by 2018. 2) Smartphones are the dominant connected device in Colombia, with Colombians spending 38% of their daily screen time on smartphones. Smartphones are used constantly throughout the day. 3) To effectively engage Colombian consumers and grow their brands, marketers need to utilize mobile advertising and follow consumers as they increasingly interact via smartphones. However, testing is needed to maximize the impact and ROI of mobile investments given lower receptiveness to ads on personal devices.

1. #AdReaction
Connecting with
Colombian Consumers
in 2014
James Galpin,
Head of Media & Digital, LATAM
james.galpin@millwardbrown.com

2. AdReaction 2014
OVER 30% OF
COLOMBIANS
ALREADY USE
SMARTPHONES
2
Ericsson, forecasts a massive increase in
mobile internet subscriptions in Latin America
by 2018.
Ericssson sees the amount of mobile Internet
users in Colombia increasing to 65 million

3. MORE PEOPLE ARE NOW GOING ONLINE FOR FIRST TIME
ON MOBILE, THAN ARE ON PC

4. The Colombian consumer is
moving to smartphone
connectivity very fast

5. AdReaction 2014
Marketing in the multiscreen world
COLOMBIA

6. HOW MUCH & WHEN ARE SCREENS
USED IN COLOMBIA?

7. AdReaction 2014
SMARTPHONES
ARE THE
DOMINANT DEVICE
Device Key
TV Smartphone Laptop Tablet
Global Average: 113 (27%)
114
minutes
(26%)
Global Average: 147 (35%)
165
minutes
(38%)
123
minutes
(28%)
35
minutes
(8%)
Global Average: 108 (26%)
Global Average: 50 (12%)
TOTAL MINS: 437 COL vs. 417 global
Roughly how long did you spend yesterday... 7

8. AdReaction 2014
Colombia above
average on
smartphone usage
Overall Colombian screen
minutes are 20 minutes above
from the global average –
mainly due to more
Smartphone and Laptop time
spent.
Smartphone minutes are
higher than the global
average, behaviour also
observed in LATAM, specially
in Argentina and Mexico.
Device Key
TV Smartphone Laptop Tablet
GLOBAL 113
= 417
132
114
69
89
148
85
108
117
161
123
65
97
109
79
147
193
181
165
111
34
50
55
14
35
110
115
Indonesia
Phillipines
China
Brazil
Vietnam
USA
Nigeria
Colombia
Thailand
Saudi
South Africa
Russia
Argentina
UK
Kenya
Australia
Spain
Turkey
Mexico
India
South Korea
Germany
Canada
Japan
France
Italy
= 540
= 317
= 437
Roughly how long did you spend yesterday… 8

9. AdReaction 2014
ONLY SLEEP BREAKS
THE SMARTPHONES’
HOLD
In Colombia, smartphones are
used constantly through the
day
Laptops are primarily a
daytime screen
TV rises its consumption
along the primetime and
briefly wins out in its evening
peak time, from 9pm to 12
midnight.
Device Key
TV Smartphone Laptop Tablet
40%
35%
30%
25%
20%
15%
10%
5%
0%
6am to
9am
9am to 12
noon
12 noon to
3pm
3pm to
6pm
6pm to
9pm
9pm to 12
midnight
12
midnight
to 6am
What times of day yesterday were you… 9

10. AdReaction 2014
SHARE OF SCREEN MINUTES VS. MEDIA SPEND
10
Global Daily Screen Minutes
27%
12%
26%
35%
Global Media Spend
2016
60%
29%
12%
2013
66%
29%
4%
+

11. When are the peak times for digital /
online marketing communications?
Which connected device is used most
then?
So which device gives brands the best
chance to reach consumers at the right
moment?

12. HOW ARE SCREENS USED?

13. AdReaction 2014
PEOPLE NOW
ROUTINELY USE
CONNECTED
DEVICES WHILE
WATCHING TV
Of their 7.3 hours screen
consumption, 125 minutes is
simultaneous consumption of
another digital screen while
watching TV.
Simultaneous: At the same time as you were watching TV
yesterday, how much time did you also spend using the Internet
13
AT THE
SAME TIME
AT DIFFERENT
POINTS IN TIME
SHIFTING
186’
60%
SIMULTANEOUS
125’
40%
TOTAL MINS: 437 COL vs. 417 global
NET MINS: 311 COL vs. 308 global

14. AdReaction 2014
SOMETIMES FOR
SAMETHING, MOSTLY
FOR DIFFERENT
MESHING – where people are
engaging with content in deeper
way through another device
STACKING – when people are
looking for distractions from the
content or doing something else at
the same time
RELATED
CONTENT
MESHING
45’
14%
186’
60% STACKING
80’
26%
UNRELATED
CONTENT
AT THE
SAME TIME
AT DIFFERENT
POINTS IN TIME
SHIFTING
Simultaneous: At the same time as you were watching TV
TOTAL MINS: 437 COL vs. 417 global
yesterday, how much time did you also spend using the Internet
Meshing: While you were watching TV and using the Internet
NET MINS: 311 COL vs. 308 global
yesterday, how much of the time were you doing something
related to what was happening on TV?
Stacking = Simultaneous minutes minus Meshing minutes 14

15. AdReaction 2014
MAINTAINING SOCIAL
CONNECTIONS AND
DISTRACTION ARE A
KEY FACTORS IN
SIMULTANEOUS USE
BUT CONTENT
INTERACTIONS ARE
ALSO IMPORTANT
COL GLOBAL
31%
23%
19%
17%
28%
26%
21%
10%
48%
46%
To fill time during ad breaks
To keep up with friends on
social media (not TV related)
TV not interesting enough for all
my attention
Just have TV on for background
noise
Someone else has chosen
what's on TV
Need to get other things done
More information about what's
on TV
To discuss what I’m watching
(e.g. via social media)
To interact with what's
happening on TV
To follow up on a TV ad
AVERAGE
42%
39%
25%
27%
20%
28%
24%
19%
14%
11%
ANY
STACKING
REASON:
89%
(85% global)
ANY
MESHING
REASON:
37%
(41% global)
Why do you also use a second device (laptop, smartphone, or
tablet) when you are watching TV? 15

16. AdReaction 2014
SIMULTANEOUS
AND EXCLUSIVE
USAGE BY DEVICE
16
Device Key
TV Smartphone Laptop Tablet
Global Average: 31 (29%)
+ 35 MINS
(28%)
+ 73 MINS
(45%)
Global Average: 24 (49%)
+ 17 MINS
(49%)
88 MINS (72%)
91 MINS (55%)
18 MINS (51%)
Global Average: 77 (71%)
Global Average: 93 (63%)
Global Average: 25 (51%)
Global Average: 54 (37%)
AT THE
SAME TIME
AT DIFFERENT
POINTS IN TIME

17. AdReaction 2014
EACH DIGITAL DEVICE CAN PLAY MULTIPLE ROLES – BUT
EACH HAS DIFFERENT FOCUS
17
Smartphone Laptop Tablet
Entertainment Tool
Great for content in transit
Stacking
alternative entertainment
when bored by TV
Meshing
additional video content
(e.g. behind the scenes)
Shifting
personal entertainment
Productivity Tool
Faster for lots of content
Better for online shopping
Stacking
getting work done,
searching
Meshing
detailed digging into
TV content
Shifting
tasks where you need
to be fully engaged
Default Device
“Do it all” device if you don’t
have laptop/ tablet with you
Stacking
social check-ins
Meshing
polls, sharing opinions via
social & messaging
Shifting
connectivity whenever,
wherever

18. AdReaction 2014
Smartphones do not just connect across screens
Festival of Media LATAM 2014 – Winner, Best use of Digital

19. AdReaction 2014
BUT BE AWARE:
MARKETING
RECEPTIVITY IS
LOWER IN MORE
PERSONAL
DEVICES
VERY/
SOMEWHAT
FAVOURABLE %
34
33
30
46
PAY AT LEAST
SOME
ATTENTION %
57
50
60
80
GLOBAL
AVERAGE
41
25
24
23
GLOBAL
AVERAGE
72
52
51
52
BASE: ALL ANSWERING BASE: OWN OR HAVE ACCESS TO DEVICE
How would you characterize your attitude towards each of the
following formats of advertising?
Each time you see each of the following, how much do you
typically pay attention? Base: access to device. 19

20. Smartphones are becoming the
connective tissue between all consumer
touchpoints
They are allowing the analog to become
digital

21. Mobile connectivity offers Brands many
new opportunities to engage with and
build relationships with people
But personal devices are just that.
Personal. Marketers must not be too
intrusive or invasive.

22. HOW TO MEASURE MOBILE
CAMPAIGN EFFECTIVENESS?

23. # Brand
Brand Value
(USD MM)
Country
1 Corona 8,025 México
2 Skol 7,055 Brasil
3 Falabella 6,084 Chile
4 Telcel 5,308 México
5 Bradesco 4,177 Brasil
6 Sodimac 4,107 Chile
7 Televisa 3,625 México
8 Brahma 3,585 Brasil
9 Aguila 3,565 Colombia
10 Modelo 3,477 México
* Concentra valores 23 de Modelo Especial, Negra Modelo y Modelo Light.

24. Consumer decision-making
Source: The Consumer Decision Journey, McKinsey
Quarterly Review
24
BRAND CONSIDERATION:
brands in the initial-consideration
set can be up to
three times more likely to be
purchased eventually than
brands that aren’t in it.”

25. B R A N D Z T O P 1 0 0 B R A N D S
O U T P E R F O R M T H E M A R K E T
Source: Millward Brown Vermeer, BrandZ™ data
100
80
60
40
20
-20
-40
-60
Percentage value growth
BRANDZ™
Strong
Brands
Portfolio
S&P 500
APR 07 APR 08 APR 09 APR 10 APR 11 APR 12 APR 13 APR 14

26. How “brand” impacts the bottom line
Immediate, short term
Mostly incremental sales to
existing users
Meaningful
Different
Salient
Brand
Power
26
Marketing
Activities
Total
Revenue /
Profit
Most digital
metrics
The Sales Response Effect
The Brand Effect
Maximises future
revenue / share
growth
Sustained, longer term
Maximises share in
the current period
Strengthens loyalty of existing users
and brings new users into brand

27. O c t o b e r 5 , 2 0 1 4 8 : 1 4 p m
Go o g l e up b e a t o v e r b r and
adv e r t i s ing t o o l s
G o o g l e h a s c l a ime d p r omi s i n g e a r l y
r e s u l t s f r om i t s l a t e s t a t t emp t t o d r a w
b r a n d a d v e r t i s e r s , f o l l o w i n g y e a r s o f
d i s a p p o i n tme n t o v e r t h e s l o w g r o w t h o f
b r a n d e d d i s p l a y a n d v i d e o a d s t o ma t c h
i t s s e a r c h b u s i n e s s .
27

28. Brand Impact of Mobile - AdIndex for Mobile
WE HAVE COMPLETED 400+ MOBILE ADVERTI S ING
EFFECTIVENES S STUDIES ACROS S A BROAD RANGE OF
INDUSTRY VERTICALS
28
Tablets
Location
Multi-
Screen
Display &
Rich Media
Ads
SMS
Apps
Mobile
Video

29. How It Works
BOTH GROUPS SURVEYED ABOUT ATTITUDES TOWARD
BRAND; RESPONSES COMPARED
29
MOB I L E A D S C A N B E ME A S U R E D WI T H T H E S AME A P PROAC H
A S ON L I N E A D S :
CONTROL GROUP
(n=300)
Control Cell fielded one to
two weeks prior to
campaign launch. Banner
invite included on mobile
page inviting respondents to
participate in a survey.
EXPOSED GROUP
(n=300)
Test Cell collected during
campaign. Banner invite
residing in same area as
mobile ad invites
respondents to participate
in survey.

30. MOBILE EFFECTIVENESS Vs. OTHER CHANNELS
CrossMedia Research
30
How did my campaign perform?
What role did each channel play?
What was their cost efficiency?
How can I optimise moving forward?

31. 12
26
21
40
Model Output
M e d i a c a m p a i g n e l e m e n t s ’ i m p a c t o n b r a n d m e t r i c s a r e
i d e n t i f i e d f r om t h e mo d e l i n g o u t p u t
31
Media Contribution
Mobile
OOH
Press
TV
CAMPAIGN IMPACT
BRAND METRIC
(Post Campaign)

32. How does the
GLOBAL
brand impact of
TV
channels compare Digital
21%
23%
21%
33%
44%
17%
18%
21%
18%
10%
62%
49%
59%
58%
46%
Spend
Salience
Meaningful
Different
Bonding
Other Media
CrossMedia Research 2014

33. How does the
LATAM
brand impact of
TV
channels compare Digital
39%
26%
31%
34%
51%
25%
3%
17%
13%
3%
46%
41%
57%
58%
56%
Spend
Salience
Meaningful
Different
Bonding
Other Media
CrossMedia Research 2014

34. WHAT SHOULD BRANDS DO?

35. AdReaction 2014
• The key to consumer interaction and
information exchange is now personal mobile
devices,
• Core consumer segments are going mobile fast
• Brand Marketers need to follow them if they
wish to effectively grow their brands in future
• But must test and learn more to maximize
impact and ROI of mobile investments

36. #AdReaction
Thank you
James Galpin,
Head of Media & Digital, LATAM
james.galpin@millwardbrown.com
www.millwardbrown.com/AdReaction
www.millwardbrown.com/BrandZ