Discovery // InsightsBusiness

GoalsBrandGoals

CustomerGoals

TechnologyLandscape

Personas/Scenerios

BehaviorMapping

Shadowing

BrandTranslation

Experience Brief

One PageBrief

MixedMediaBrief

Ideation // Deep Dive

Day 1:Collect

Artifacts

Day 2:All-DayIdeation

Day 3:Present

Concepts

Proof of Concept

AnimatedArtifact

RoughPrototype

Experience Design

ExperienceArchtecture

VisualDesign

Content

MotionDesign

InterfaceDesign

TechnicalDesign

Approach To Creating Experiences

DefineThe Experience Strategy

UncoverCustomer, Brand & Business Insights

IdeateImmerse Interdisciplinary Teams

BuildThe Concept

DesignThe Experience

It starts with the customer, their wants, needs and expectations—the brand and business objectives are also articulated to ensure that the experience (yet to be determined) will be strategi-cally aligned.

Personas, Scenerios, Social Trends and other illustrative tools bring the customer to life and help

establish emotional and rational mind-sets.

The Experience brief sets the stage for breakthrough ideas. A one-page Experience Brief succinctly captures the challenges and provides a high level strategy for how an Experience will be used to meet the challenges.

A Mixed Media version of the brief is then

created to provide inspiration and direction for both the internal team and client. Regardless of format—its purpose is to generate enthusiasm and understanding.

Teams must experience it for themselves. The ideation/deep dive is an intense 3-day series of worksessions involving both creative and non-creative team members:

Day 1: A day will be planned for teams to get out of the office and capture as much first-hand insight as possible.

Day 2: Teams will re-unite and engage in highly collab-orative ideation sessions lasting the entire day.

Day 3: Teams will present concepts in both written and visceral formats including sketches, photographs etc.

An Experience is tactile. The winning concepts, fueled by a “Big Idea” are built out in rough—but tangible fashion. A proof of concept can be executed in a number of ways (prototype, motion test, clickable storyboard, etc.) the

end result is something that goes beyond a static two-dimensional page.

With a Big Idea and Concept in

place—the detailed Ex-perience Design pro-cess begins.

The core and extended teams are now fully engaged in the design process. First the core team lays out the foundation—then the extended team is brought in to execute the design.

Fueled by customer insights and driven by brand values—the

Experience Brief lies the foundation for the actual experience to be built upon. It does not provide the answers—but forges the appropriate strategic direction for the teams to pursue.

Ideation/Deep dive allows the teams who architect the experience to explore various

methods that drive creative problem solving and innovative solutions.

1

Strategy and Solutions for Experience Marketing

vCREATIVITY

v

CULTURE

vTECHNOLOGY

BRANDEXPERIENCE

LAB

10

Self-Reinforcing Internet Momentum

Search

Broadband

CommerceCommun-

ication

Content

“Holy Trinity”

THE LOVEMARKS EFFECT THE LOVEMARKS EFFECT

Contents

BRANDSLow Love

High Respect

LOVEMARKSHigh Love

High Respect

PRODUCTSLow Love

Low Respect

FADSHigh Love

Low Respect

LOVE

RE

SP

EC

T

As CEO Worldwide of Saatchi & Saatchi, Ideas Company, Kevin Roberts leads an international team of 6,500 creative people. A dedicated traveller and sought-after speaker, he is a source of inspiration to thousands of people through his business vision, clarity of purpose, and inimitable, straight-talking style. Roberts is CEO in Residence at Cambridge University’s Judge Institute of Management, and Professor of Sustainable Enterprise at both the University of Limerick in Ireland and the University of Waikato Management School in New Zealand. He has homes in New York, St. Tropez, and Auckland. With staff in 132 offices and 82 countries, Saatchi & Saatchi works with several of the world’s most successful companies, transforming brands, businesses, and reputations by drawing upon the power of world-changing creative ideas.

Love/Respect Axis The Love/Respect Axis is a fantastic way to separate Lovemarks from brands, fads, and products. Remember—to be a Lovemark you must have high Respect. No Respect, no Lovemark.

Introducing Kevin Roberts

1. L IS FOR LOVEMARKS

An introduction to the transforming

potential of Lovemarks—how they

have been taken up, their emotional

impact, and what comes next in the

Lovemarks story. Featuring Alan

Webber, Co-founder, Fast Company;

and Maurice Lévy, Chairman and CEO,

Publicis Groupe.

2. CREATING CONSUMER DREAMS

To attract the new consumer we need

new ways of thinking and acting. A guide

to how to win consumer hearts by

attraction. Featuring Jim Stengel, Global

Marketing Officer, Procter & Gamble.

3. PLANET LOVEMARKS

A look at Lovemarks through the eyes

of Inspirational Consumers around

the world. Featuring Richard Hytner,

Chairman, Europe, Middle East, and

Africa, Saatchi & Saatchi; and Malcolm

Gladwell, author.

4. CREATING LOVEMARKS

A guide to putting Lovemark principles

into practice featuring comments from

28 Inspirational Owners, CEOs, and

senior marketers. Included are AVEDA,

Benetton, Ben & Jerry’s, Camper,

Dansko, Kiehl’s, Montblanc, REMO

General Store, Segway, Silhouette,

and Victorinox.

5. ROMANCING THE SHOPPER

An investigation into wooing the shopper

with Mystery, Sensuality, and Intimacy.

Featuring John Fleming, Chief Marketing

Officer, Wal-Mart; and Andy Murray,

Global CEO, Saatchi & Saatchi X.

6. FORM FOLLOWS FEELING

How design can create objects to

fall in love with. Featuring Tom Peters,

CEO, Tom Peters Company; Renzo

Rosso, CEO, Diesel; Inoue Masao,

Chief Engineer of the Toyota Prius;

Mary Quant, designer; Arno Penzias,

Nobel laureate; Derek Lockwood,

Worldwide Director of Design,

Saatchi & Saatchi.

7. LOVE ONE DAY AT A TIME

Sustainability is the bottom line and

Lovemarks are a way to realize this

dream. Featuring Mary Robinson,

former President of Ireland; Professors

Mike Pratt, Waikato Management

School, and Roger Downer, University

of Limerick; John Wareham, business

mentor and author; and Mika, dancer

and performer.

8. HEARTBEATS

Measuring the ripples of Lovemarks

on the world stage required market

research as we knew it to be

reinvented. Featuring Kevin Dundas,

Worldwide Strategy Director, Saatchi

& Saatchi; and Peter Cooper, CEO

and John Pawle, Managing Director,

QiQ International.

9. LOVE GOES TO WORK

Saatchi & Saatchi people use Lovemarks

to inspire, create, and innovate. Eight of

Saatchi & Saatchi’s ideas people share

their insights for creating emotional

connections and making Lovemarks

live in the world. Featuring 26 pages of

examples of Lovemarks at Work.

2006 Annual Trust Barometer

The Trust Pyramid

8

Trust is derivative of a corporation’s country of origin, industry, as well as its own behavior. It is conveyedthrough communications programs combining a channel mix, paid and earned media, credible spokes-people, frequency of communications, and the coupling of local and global communications.

Page 9

CONTENT

FORMAT

REVENUE

CONSUMERPASSIVE

CREATOR

AC T I V E

MUSIC

TIME SHIFTING

SPACE SHIFTING

FORMAT SHIFTING

VOICE

BLOGS

AUDIEN

CE

VOTIN

G

JOURN

ALISTS EDIT

ORIA

L

VIDEO

PAY PER VIEW

SUBSCRIPTION

CLASSIFIEDS

ADVERTISING

TEXT

IMAGES

FREE

EMBE

DDED

USERCONTROLLED

USER

FILTERINGCREA

TION

CHANNELS

MOBILEFI

XED

MEDIA DEVICES

DIRECTAGGREGAT

ED

TARGETED MEASURABLE

GAME

CONSOLE

ADSL

CABLE

GPRS

PRIN

T

WCDMA

WiMAX

PC

TV

PDAVIDEO iPOD

MP3 PLAYER

MOBILES

DISTRIBUTION

TV / RADIO

SPECTRUM

www.futureexploration.net

LOC

AL

IZA

TIO

NG

LOB

AL

IZA

TIO

N

MAINSTREAMMEDIA

SOCIAL MEDIA

CONVERSATION

ANNOTATION RELATIONSH

IPS

SELF-E

XPOSURE

ACCESS

PRODUCTIO

N CONSISTENCY

PROFESSIONALISM

FUTURE OF MEDIA :

This framework is published under aCreative Commons Attribution-ShareAlike 2.5 License

: STRATEGIC FRAMEWORK

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Web 2.0

River of consciousnessRiver of consciousness

Telemedicine Bio-simulations

On-demandUser-created

User-filtered

Online medical records

BoredomVoyeurism

Exhibitionism

Social networks

Customised treatments

Private currencies

Pre-pay Wisdom of crowds

Pay-as-you-go

Stored value cards

Digital cash

Speeding up

Time starved (need for speed)

Embedded intelligence

Road pricing Road booking

Loneliness

Depression

Market deregulation

Outsourcing

Emotionally aware machines

Trust + transparency

Compliance

Nationalism

Psychological neotenyPessimism

Web 2.0

Guilty c pleasures

Luxury travel

Luxury goods Speed retailToo much choice

PremiumisationPremiumisation

UrbanisationUrbanisation

Indulgence

Sensory experiences

Work/Life balance

Distributed manufacturing

Liberalism (opens in 2008)Conservatism

Global voting

e-voting

Individualism

Corporate power

TribalismTribalism

Democracy 2.0

Single global currencyVirtual currencies

Micro-payment

Contactless payment

EthicsEthicsDocumentaries

Artificial intelligence

Robotics

Generational change

Nostalgia

Corporate social responsibility

AnxietyAnxiety

Free agents

AgeingAgeingForgetting

Story telling

Search for meaning (Mon – Fri only)

Voter antipathy

Religion

Extended financial families

AuthenticitySelf-relianceBlended familiesConstant partial attention

Third spaces Self-servePop-up retail

Flat tax systemsActivismCar politicsEmission

taxes

Local transport

Alternative technologiesHydrogen power

Slowing down

Fuel cells

ConvenienceRegional

Slow food

Food miles

Seasonal

LocalisationServicesSustainabilitySustainability

Car sharing

Water scarcity

Climate change

Discipline convergence

Open innovation

VoIPLocation tagging

Remote monitoring

Low cost travel

Device convergence

Death of cheques

RFID

Smart vending

Mass customisation

PersonalisationPersonalisation

Fragmentation

Time compressionPlace shifting

Identity solutions

RealityAlways-on

GlobalisationGlobalisationPrivate equity

Health

Fantasy

DebtFertility

BiotechNanotech

CloningFearHumans 2.0

Aggregated customisation

Farmaceuticals

Skills shortages

Blurring of sectors

Fair trade

Natural

Resource scarcityResource scarcity

Carbon trading

NGO power

Power shift eastwards

Geospatial web

Too much information

Long-tails SimplicityEscapism

Labourmigration

HappinessHappiness

SOCIETY & CULTURE

GOVERNMENT & POLITICS

WORK & BUSINESS

MEDIA & COMMUNICATIONS

SCIENCE & TECHNOLOGY

FOOD & DRINK

MEDICINE & WELL-BEING

FINANCIAL SERVICES

RETAIL & LEISURE

TRANSPORT & AUTOMOTIVE

LEGEND

High speed link

�

This map is published under a Creative Commons Attribution - ShareAlike 2.5 License.

River of consciousnessRiver of consciousness

Telemedicine Bio-simulations

On-demandUser-created

User-filtered

Online medical records

BoredomVoyeurism

Exhibitionism

Social networks

Customised treatments

Private currencies

Pre-pay Wisdom of crowds

Pay-as-you-go

Stored value cards

Digital cash

Speeding up

Time starved (need for speed)

Embedded intelligence

Road pricing Road booking

Loneliness

Depression

Market deregulation

Outsourcing

Emotionally aware machines

Trust + transparency

Compliance

Nationalism

Psychological neotenyPessimism

Web 2.0

Guilty c pleasures

Luxury travel

Luxury goods Speed retailToo much choice

PremiumisationPremiumisation

UrbanisationUrbanisation

Indulgence

Sensory experiences

Work/Life balance

Distributed manufacturing

Liberalism (opens in 2008)Conservatism

Global voting

e-voting

Individualism

Corporate power

TribalismTribalism

Democracy 2.0

Single global currencyVirtual currencies

Micro-payment

Contactless payment

EthicsEthicsDocumentaries

Artificial intelligence

Robotics

Generational change

Nostalgia

Corporate social responsibility

AnxietyAnxiety

Free agents

AgeingAgeingForgetting

Story telling

Search for meaning (Mon – Fri only)

Voter antipathy

Religion

Extended financial families

AuthenticitySelf-relianceBlended familiesConstant partial attention

Third spaces Self-servePop-up retail

Flat tax systemsActivismCar politicsEmission

taxes

Local transport

Alternative technologiesHydrogen power

Slowing down

Fuel cells

ConvenienceRegional

Slow food

Food miles

Seasonal

LocalisationServicesSustainabilitySustainability

Car sharing

Water scarcity

Climate change

Discipline convergence

Open innovation

VoIPLocation tagging

Remote monitoring

Low cost travel

Device convergence

Death of cheques

RFID

Smart vending

Mass customisation

PersonalisationPersonalisation

Fragmentation

Time compressionPlace shifting

Identity solutions

RealityAlways-on

GlobalisationGlobalisationPrivate equity

Health

Fantasy

DebtFertility

BiotechNanotech

CloningFearHumans 2.0

Aggregated customisation

Farmaceuticals

Skills shortages

Blurring of sectors

Fair trade

Natural

Resource scarcityResource scarcity

Carbon trading

NGO power

Power shift eastwards

Geospatial web

Too much information

Long-tails SimplicityEscapism

Labourmigration

HappinessHappiness

SOCIETY & CULTURE

GOVERNMENT & POLITICS

WORK & BUSINESS

MEDIA & COMMUNICATIONS

SCIENCE & TECHNOLOGY

FOOD & DRINK

MEDICINE & WELL-BEING

FINANCIAL SERVICES

RETAIL & LEISURE

TRANSPORT & AUTOMOTIVE

LEGEND

High speed link

Trend Blend 2007+

wildfire / designing interactions /

Wildfire / Designing Interacions / Digtal technology has

changed the way we interac wih everything from the games we play to the

tools we use at work. In his new book, Bill Moggridge, designer of the firs

laptop computer and co-founder of design firm IDEO tells the personal

sories of 40 innovators who have shaped our interacion with technology /

FIAT / SERVICE ECOLOGY / LIVE|WORK /

wildfire.qxp 15/11/06 11:17 Page 1

Media Fragmentation

BIGResearch, 2006

Outdoor BillboardPicture Phone

Instant MessengerEmail Ads

Yellow PagesSatellite Radio

Text MessagingMP3 PlayerWeb Radio

Video GamesPDA

Cell PhoneTIVO

26 Different Media Touchpoints

Word of mouthTV Cable

ISP/Search EngineAt Retail

RadioProduct ArticleIn-Store Promo

NewspapersNewspaper Insert

Direct MailTV Broadcast

MagazinesInternet Ads

7

What Does the Brand Experience Lab (BEL) Do?

Creative Product Solutions

BEL Narrative

&IntegrationExpertise

Research Authentic &RelevantBranded

Experience

Emerging Technologies

Cultural Knowledge & Testing

Development

& Implementation& Ideation

Project Apollo: Measuring Impact of Cross-Medium Integrated Advertising

18 19Our perspective

Figure 2Lifestyle Advertising in a media marketplace

Lifestyle Media Lifestyle Advertising

Consumer Advertiser

Personalization Relevance

Participation Engagement

Socialization Trust

Conversations Content providerMedia distributor

September 2004

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C O N F I D E N T I A LC O N F I D E N T I A L

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Digital

Digital A

lchemyst

Alchem

ystVideo Over IP

Digital EngagementNetwork

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• 84% of home buyers plan major improvements

• 79% of home buyers plan to make new appliance purchases

• 71% of movers will need a variety of insurance products

• 71% of movers will change cable/satellite services

20 of our customers moved away this year!

Research indicated that Movers spend $8,500 during their move, and are open to trying new products and services.

How do we more effectively target that consumer segment?

Economics of Moving

• 67% of movers plan to buy new furniture

• 58% of movers will purchase an existing home

• 52% of movers will change or use banking services

• 38% of movers will build a new home

Homestore*Beta Research Corporation

Key Mover Categories:*

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C2✆

© 2006 NFC Forum 5

New Touch-Based Mobile Services Emerging

Your NFC device is your travel card!

Your NFC deviceis your ticket!

Get informationby touchingsmart posters!

Your NFC deviceis your credit card!

Buy goods fromvending machineswith your phone!

TOUCHTOUCH

Get informationabout your currentjob or task!

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C2✆

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Digital

Digital A

lchemyst

Alchem

yst

14

Telesoft VC Ecosystem Mtg Nov 2005% of Time Spent on Internet

3%

10%

43%

4%

19%21%

0%

10%

20%

30%

40%

50%

60%

Email IM Voice Browsing Chat Search

Communications44%

There is a clear imbalance

Source: “Surveying the Digital Future”, Jeffrey Cole, 28 countries, 2005

Hours per week during leisure time (global average)

30%

5%

0.4

%

37%

9%

13%

12

6

2 2 2

14

11

8

2 2 1

16

13

8

3 2 1

1616

7

5

3

1

8

TV Radio Newspapers Magazines Cinema Digital

Under 18

Aged 18-35

Aged 35-54

55 and over

% adspend

Communacopia 20061020 September 2006

Mobile Plus strategy – advertising

SMS/MMS push

Customerpull

Idlescreen

Mobile TV inserts

Different Advertising Opportunities on Mobile Global On-line Advertising Revenues (£bn)

31.7

27.8

24.6

21.2

17.2

9.46.4

5.05.3

13.4

0.0

5.0

10.0

15.0

20.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

25.0

30.0

35.0

Source: Yahoo investor presentation

Mobile advertising currently being trialled in UK, Spain and Ireland

Leading in innovation: a history of firsts

• Carat: first media independent; quantitative media Carat: first media independent; quantitative media Carat: first media independent; quantitative media Carat: first media independent; quantitative media planning a lead disciplineplanning a lead disciplineplanning a lead disciplineplanning a lead discipline

• Isobar: first global digital communications networkIsobar: first global digital communications networkIsobar: first global digital communications networkIsobar: first global digital communications network

• Posterscope: first global OOH networkPosterscope: first global OOH networkPosterscope: first global OOH networkPosterscope: first global OOH network

• Deepblue: first in communications planningDeepblue: first in communications planningDeepblue: first in communications planningDeepblue: first in communications planning

• MMAMMAMMAMMA’’’’s Avista: s Avista: s Avista: s Avista: ““““filling a void in [ROI] analyticsfilling a void in [ROI] analyticsfilling a void in [ROI] analyticsfilling a void in [ROI] analytics…”…”…”…”****

• Synovate Tandem: first global therapy monitorsSynovate Tandem: first global therapy monitorsSynovate Tandem: first global therapy monitorsSynovate Tandem: first global therapy monitors

• Synovate Motoresearch: first virtual reality techniquesSynovate Motoresearch: first virtual reality techniquesSynovate Motoresearch: first virtual reality techniquesSynovate Motoresearch: first virtual reality techniques

* Source: Gartner, Gartner, Gartner, Gartner, Cool Vendors, MarchCool Vendors, MarchCool Vendors, MarchCool Vendors, March2006200620062006

… is the 30 second TV commercial

dead…?… Nigel Morris, CEO - Isobar

PAGE# 4

Advertising Dollars Follow Audiences

$28.8

$35.2

$41.4

$46.7$51.6

$22.5

5.8%7.0%

8.1% 8.8% 9.5% 9.9%

2005 2006E 2007E 2008E 2009E 2010E

Source: PricewaterhouseCoopers LLP, “Global Entertainment and Media Outlook: 2006-2010”, June 2006.

5 yr Projected CAGR = 18%

Global Online Advertising Revenue(dollars in billions and % of total ad spend)

Online ad growthOnline ad growthUS Online Ad Market $ in Bn

Classifieds/Other Branded/Display Search

$2.4 $3.0 $3.6 $4.5 $5.4 $6.5$5.0 $6.5 $8.3

$10.1$12.0

$13.9$5.1

$7.2

$11.2

$13.2

$15.0

$9.2

2005 2006 2007 2008 2009 2010

$12.5

$16.7

$21.1

$25.8

$30.6

$35.4

4

Multi-Channel Online Marketing

Advertisers(5,000)

Comparison Shopping

Online Users

VCLK Markets:160mm US80mm EU

Publishers

Web Sites

Search

Email

(50,000)

Publishers & Agencies

Ad Serving Tech.Email Mgt. Tech.Ad Agency Tech.

2) Optimizes Traffic via Technology and Expertise

1) ValueClick Aggregates Online Users via Publisher Networks

3) Drives Traffic to Advertisers via Multiple Online Channels:

Display Ad Units

Opt-In Email

CPC Search

AffiliateMarketing

Explosion of videoExplosion of video

Scale mattersScale matters

56641,45073,273$0.36

2064431,969$0.35

16816,44597,681$1.04

13114,601111,612$1.23

27435,651129,876$2.72

10110,734106,382$4.11

PV / UV

December 2006PVs(MM)

December 2006UVs

(000)

2006E Domestic Revenues(ex-TAC)

Top US Online Properties, Ranked by Ad Revenue

Interactive Media

Note: Domestic revenue is estimated based on analysts’ reports, except for AOL, which are actuals. Traffic source is comScoreMedia Metrix, Dec. 2006

Top 10 overall advertisers• P&G• GM• Time Warner• Verizon• AT&T• Ford Motor• Walt Disney• Johnson and Johnson• GlaxoSmithKline• DaimlerChrysler

Underinvested in the InternetUnderinvested in the Internet

For 2005Source: AdAge, June 26, 2006

Jan – Nov. 2006Source: TNS

Top 10 online advertisers• Vonage• AT&T• Dell• Walt Disney• GM• Apollo• Experian Group• TD Ameritrade Holding Corp.• Netflix• Verizon

Average hours per week media consumption

Print

Internet

Analogue TV

Digital TVAnalogue radio

Digital radioCinema

Outdoor

Wireless

Games

0

10

20

30

40

50

60

70

80

90

100

1900 1920 1940 1960 1980 2000 2020

Source: Carat Source: Carat Source: Carat Source: Carat

And digital is on the rise

• 80% of all media digital by 202080% of all media digital by 202080% of all media digital by 202080% of all media digital by 2020

• 66% of all media digital by 201066% of all media digital by 201066% of all media digital by 201066% of all media digital by 2010

• 50% of all media digital by 200750% of all media digital by 200750% of all media digital by 200750% of all media digital by 2007

0%

2%

4%

6%

8%

10%

12%

6am 8 10 12 2 4 6pm 8 10 12 2 4 6am

2001

2005

While consumers are moving on

Source: Carat

% UK adults carrying out more than 1 media activity, during timeslot

Diminishing returns in TV

[ 7.84 / 21.00 ] x [ 0.5 x 0.5 ] = [ 7.84 / 21.00 ] x [ 0.5 x 0.5 ] = [ 7.84 / 21.00 ] x [ 0.5 x 0.5 ] = [ 7.84 / 21.00 ] x [ 0.5 x 0.5 ] = 9.3%9.3%9.3%9.3%

appendices

> Linking Strategy and Measurement

Enterprise Value

Creation

Customer Value

ProgramSuccess

OperationalManagement

> eP&L> Shareholder value> Channel value

> Cross BU value> Lifetime value> Customer retention

> Customer acquisition cost> Response rates> Net yield

> Daily traffic volumes> Click throughs> Log file analysis

Metric Examples

US Adv Spending 2004-2006

Another take on the same numbers...

Same four categories account for only 51%of the aggregate marketing budget in 2005

And note a new category...

Let’s compare to overall U.S. advertising spend

Same four categories account for only 57.5%of the aggregate marketing budget in 2005

PAGE# 7

24/7 Media: Targeted Global Online NetworkThe 24/7 Media segment offers advertisers an array of campaign solutions, fromhighly targeted to broadest possible, across the Web sites of the 24/7 Web Alliance.

■ Competitive Advantages� Proprietary behavioral targeting solution� Sound editorial content across branded network of 850 publishers� Alignment with publisher ensures quality inventory and dependable volumes

CompetitorsValueClickRight MediaBurst!Tribal FusionOther ad networks

PAGE# 9

24/7 Technology: Integrated Ad ServingIn addition to powering all 24/7 Media solutions, 24/7 Technology’s innovativeproducts are licensed to publisher clients with independent ad sales teams.

■ Competitive Advantages� Fully integrated analytics package enables advanced ad targeting� Leverages internal development specs and vetting for external clients� Flexible deployment options based on singular platform

CompetitorsDoubleClick/FalkValueClickAccipiterADTECHOther ad servers

PAGE# 8

24/7 Search: Paid Search OptimizationPowered by the industry leading Decide DNA technology, 24/7 Search providesmarketers with highly optimized paid search campaigns.

■ Competitive Advantages� Highly scalable, award-winning Search Engine Marketing technology� Integrated advanced character capabilities (foreign language functionality)� Multivariable optimization controlling: keywords; bids; search engines;

content

CompetitorsaQuantiveEfficient FrontierPerformicsDid-itOther SEM’s

PAGE# 12

Pan-Asian Joint Venture with Dentsu24/7 and Dentsu have expanded their partnership beyond Japan to deliverSEM services to additional strategic advertising markets throughout Asia.

K.K.SEARCH

■ Dentsu and TFSM each contribute$5.0 million in capital to Dentsu 24/7Search Holdings (“DTF-SH”)

■ K.K. 24-7 Search will establish andprovide initial management for localoperations in each target country

■ TFSM will license its leading SEMtechnology, Decide DNA, to eachlocal operating company (Opco)

■ Dentsu leverages local relationshipsfor the benefit of local Opco’s.

■ Local Opco’s will be the preferredSEM service providers for Dentsuand TFSM affiliates in each region

DTF-SH

SPECIAL ADVERTISING SECTION OF ADVERTISING AGE

M5

A 360° CONVERSATION

To find out where this is all heading, along with the wrench-

ing changes the trends have wrought within companies, writer

Kathy Haley talked recently with David Adelman, media direc-

tor, Johnson & Johnson Global Marketing Group; Richard

Beaven, CEO, Initiative North America; and Andrew Swinand,

president-chief client officer, Starcom Worldwide. An edited

transcript of their conversation follows.

�ADVERTISING AGE: Is 360° media the approach you and

your organizations are using today?

DAVID ADELMAN: That’s a good enough name for it. We call

it integrated communications.

ANDREW SWINAND: The definition has changed. Before,

people talked about surrounding the target, and it was very much

that you would build a silo around every angle. But it was all still

very isolated. The biggest thing that changed is the definition of

New York, as U.S. director of digital communications in March.Smaller integrated shops, such as Deutsch Inc., say their

larger competitors are finally coming around to their way ofdoing things, putting creative development and media plan-ning under one roof. “We’ve been seeing for a number ofyears a growing frustration with the separateness that exists atthe media-only shops,” says Peter Gardiner, chief media officerat Deutsch. “They’ve figured out this all has to work together,and they’re hiring people to rebuild themselves back into inte-grated companies.”

Ms. Gerzema says Universal McCann is organizing itselffrom a communications perspective, tying three “ecosystems”together organically. The client relations department consistsof account directors and planners who understand the busi-ness side and work with clients most directly. The insights andapplications team includes researchers, media planners andconsumer insight specialists. The operational team is the inter-nal group working behind the scenes in human resources andinternal communications to help optimize efficiencies acrossthe board. Ms. Gerzema says that each group includes differ-ent disciplines but that each can learn from the other.

“One of the things I’m trying to do is share best practices,”Ms. Gerzema says. “Even though people may be in different

departments, their experience is similar. Making sure differentdisciplines are working together is crucial, with insights peopleproviding oxygen to people providing ideas.”

As agencies reorganize, they are also trying to improve howthey assess the effectiveness of their campaigns. Many compa-nies are building proprietary systems and tools to measurehow consumers come into contact with brands and which con-tacts are most effective in building usage and loyalty.

Both Starcom and Mediaedge:cia are working with marketresearch company Integration to build custom versions of itsMCA (Market Contact Audit) product. Mediaedge calls its toolConnections and designed it to analyze the relative impact ofdifferent media choices, not only in driving initial demand fora product but also in spurring consumers in the activationphase, when ad campaigns are trying to get them to buy.

By studying consumer behavior and the way differentmedia influence it, Mediaedge and other agencies are adapt-ing to the 360° world, says Lee Doyle, the company’s manag-ing partner and director of client services. “We’re examiningwhat is the communications challenge better than we have inthe past,” he says.

Because tools such as Connections rely partly on consumerinterviews, however, they can’t always provide much measure-

ment of emerging media that might be highly appropriate forsome clients’ campaigns. To experiment with venues such asthese, agencies and their clients must be willing to take somecalculated risks, Mr. Tobaccowala says.

He recommends an approach he calls 95/5: “Take some ofthe most interesting people in your company and, instead ofputting them against your biggest existing business, put themagainst your biggest opportunities.” Assign to these people5% of the company’s budget to pursue the opportunity, leav-ing the rest of the company to deliver 100% of objectives with95% of budget. Do not, under any circumstances, cut the 5%of budget assigned to the experimenters, and do not requirethem to move a single case of product.

“By their very nature these people know your existing busi-nesses, and they have the credibility within the company thatthey can mess things up if they are learning,” Mr. Tobaccowalasays. “And once they learn, they can incorporate their learninginto the company.”

Above all, Mr. Tobaccowala says, companies must move for-ward with strategies like 95/5 if they are to take full advan-tage of 360° media realities.

“You cannot learn by thinking about this,” he says. “Youcan only learn by doing.” o

Continued on page M48

The rise of digital media, with all its new forms of reaching consumers,is bringing about a change in how marketers and their agencies dobusiness. Before, marketing efforts centered around different mediasilos, such as print, broadcast, cable and online.Today, in a move that isshaking up marketing as companies are pushed to rethink—and evenrestructure—their efforts, the focus is shifting to a customer-centricapproach: a 360° media world.

Even while some are just starting to realize they need to change, thedefinition of 360° media is expanding as the marketers and their agen-cies already in this area push the boundaries and explore the shiftingrelationship with the consumer.

David Adelman, media directorJohnson & Johnson Global Marketing Group

Richard Beaven, CEOInitiative North America

NOVEMBER 6, 2006 M5

tabdoc.qxp 10/31/06 3:33 PM Page 1

SPECIAL ADVERTISING SECTION OF ADVERTISING AGE3600

MEDIA GUIDE

M30 NOVEMBER 6, 2006

New platforms, new metrics

and new accountability

require a new approach to the

marketplace, and NBCU is

working with clients develop-

ing the best solutions for

brands and products.

Beginning with the 2006

upfront, NBCU introduced

the TV360 programming

strategy, designed to engage

consumers with original

content on multiple plat-

forms and provide advertis-

ers with deeper integration

opportunities.

The NBCU sales team is

well-versed at working with

clients to develop these mul-

tiplatform opportunities.

NBCU recognizes that suc-

cessful campaigns are ones

that work for both the client

and the media company, and

most important, the view-

er/user. These campaigns

need to be organic to the

programming concept, rele-

vant and timely.

The core programming con-

tent of each NBCU network

and cable channel has been

extended online with original

“webisodes,” behind-the-

scenes videos and blogs, Flash

games and full-episode

streaming, as well as other

interactive features.

NBCU wireless offerings

have been expanded to

include wireless Web, video,

ringtones, wallpaper and

games, in addition to live

text polling and voting.

Video-on-demand has

extended promotion and

advertiser reach into a medi-

um allowing consumers

more control over when and

what they watch, in a pre-

qualified ad environment.

And finally, with the addi-

tion of broadband sites such

iVillage.com and dotcome-

dy.com, NBCU is able to give

advertisers greater exposure

in some of the fastest grow-

ing consumer segments

online. o

NBCU sales and marketing is well-positioned toserve clients in the rapidly changing media land-scape.

NBC UNIVERSALAT AGLANCE2 broadcast networks, 13 cablechannels, more than 25 Web sites

Keith TurnerPresident, Sales and MarketingNBCU Television Networkskeith.turner@nbcuni.com

Marianne GambelliEVP, Sales and Marketingmarianne.gambelli@nbcuni.com

James HoffmanSVP, Network Entertainment Salesjames.hoffman@nbcuni.com

Shari PostVP, NBC Late Night, NBC Daytimeand Bravo Salesshari.post@nbcuni.com

John KellySVP, NBC News Networksjohn.kelly@nbcuni.com

Mark MillerSVP, USA Network, Sci Fi ChannelSalesmark.miller@nbcuni.com

Seth WinterSVP, Sports and Olympic Salesseth.winter@nbc.com

Tom ParedesVP, Sports and Olympic Salestom.paredes@nbcuni.com

Steve MandalaSVP, Telemundo Network Salessteve.mandala@nbcuni.com

Peter NaylorSVP. Digital Media Salespeter.naylor@nbcuni.com

PLATFORM PRODUCT DESCRIPTION MARKETING OPPORTUNITIES

On-Air NBC, Telemundo, MSNBC, CNBC, Bravo, Sci Fi,USA Network, Sleuth, Universal HD,Weatherplus, Mun2, Telemundo Puerto Rico,CNBC World

Entertainment, news and sports programming across two broadcast networks and 13 cable channels.

Branded entertainment and customized solutions within-show product placement, off-channel promotions,billboards, logo features and customized segments

TV Web Sites NBC.com, YahooTelemundo.com, MSNBC.com,CNBC.com, BravoTV.com, SciFi.com,USANetwork.com, SleuthChannel.com,UniversalHD.com, Weatherplus.com,HolaMun2.com AccessHollywood.com,MeganMullally.com, NBCSports.com

Deep interactive online content such as deleted scenes,webisodes, games, blogs from show characters and exec-utive producers and mash-ups from most NBCU shows.

Customized sponsorships with branded integration onshow sites, including sponsor logo, display ads, preroll and rich media ads

Broadband iVillage.com, Gurl.com, Astrology.com,Healthology.com, GardenWeb.com,HealthCentersOnline.com, NBCFirstLook.com,DotComedy.com, Trio.com,BrilliantButCancelled.com, Outzonetv.com

User-generated video, blogs, message boards, photogalleries, RSS feeds and podcasts on NBCU originalbroadband community building Web sites.

Customized sponsorships with feature/site ownershipthrough logo and product integration, display ads, preroll and rich media ads

VOD NBC, Bravo, USA Network, Sci Fi Channel Full episodes, available after network airing Commercial units and sponsorship (lengths vary)

iTV Various shows from across NBC, Bravo, USANetwork, Sci Fi Channel

Remote-controlled iTV applications for voting, polling andbrochuring

Sponsorship, ads (varying lengths) and brochures

Mobile NBC Mobile Wireless video, ringtones, games and wallpaper from NBCNews, NBC Late Night, “Access Hollywood,” Bravo origi-nals and NBC Primetime programming

Logo and commercial integration into programming(commercial lengths vary)

SIZZLINGOPPORTUNITIES

Sci Fi givesadvertisers

full access to what critics hail as“one of the best shows ontelevision” with a 360° opportunitythat includes on-air, online, VOD,DVD and print.

New look, newcommunities,more

opportunities to reach women whoare dynamic, smart and excitedabout the possibilities of life.

CASE STUDIES*

Consumers interacted withadvertiser’s brand throughsponsorship of NBC.com play-at-home game, exclusive mobilemodel video bios, SMS alerts andmultiple in-show integrations.

Advertiserengagedconsumersthrough in-showintegration,

nominated artists’ ringtones, andfeatured-artist segments through-out Telemundo, Mun2 andYahooTelemundo.comprogramming.

Advertiserreceivedsponsorship

of mobile SMS and MMS cam-paigns, iTV voting, customizedBravotv.com features and in-showintegration connecting consumers tothe brand across multiple platforms.

Contact your NBCU account executive for more information on case studies or visit www.nbcumarketplace.com.

aa45m00.qxp 10/31/06 4:16 PM Page 30

Publication Date: 27 October 2006/ID Number: G00144450 Page 25 of 29

© 2006 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

The result of the additional sensing and connectivity will be a rapid proliferation of applications that take advantage of this "real-world Web," similar to the flood of ideas (many ill-founded, some transformational) that have surrounded the World Wide Web (see Figure 15). Business applications will center on increasing visibility of physical assets, including equipment, products and even people. CIOs should seek early tagging and sensing applications where improved visibility of items or location will avoid ongoing costs or avert undesirable events.

Figure 15. Emerging Technologies

Wireless NetworksWi-Fi, Bluetooth, ZigBee

Lookup ServicesPeople, Products, Bar Codes ...

Point-of-Sale ScannerReads Phone Screen

LocationGPS, Galileo

Object Identification1-D and 2-D Bar Codes, RFID Tags

Sensor NetworksTemperature, Chemicals …

Micro-electromechanical SystemsDirection, Acceleration

Source: Gartner (September 2006)

3.2 Create Road Maps for Emerging Business Figure 16 shows some emerging business trends. Proactive transparency has crept up on businesses during the past five to seven years. Innovators are using the trend as a competitive weapon. A clear example is open-source software, through which powerful new models for creating business value have been developed.

For public corporations, the globalization of capital flows requires increased disclosure of information. To compete for capital, they must reduce risk to lenders by keeping them better informed. In globalized microbusiness, IT is penetrating emerging consumer markets at an incredible rate. Using the Internet, a small company such as Share Microfin can interact with major financial corporations around the globe. Companies lend small amounts, perhaps $60 or $70 at a time, to transform the lives of individuals who use the money to start a village business. In this case, business units of ING and Deutsche Bank are forming partnerships with this innovative institution.

In the "next era of productivity," improvements in productivity from past IT efforts will slow down, causing businesses to commence a new generation of profit-seeking productivity gains in business processes and especially in occupations that have been largely untouched by IT. Of the 22 major occupational categories recognized by the U.S. Department of Labor, five clerical

AOL Confidential - not to be reproduced or distributed without prior written consent of America Online, Inc.

Using The Internet to Engage Consumers: Techniques and TechnologiesHarun AsadMay 2006

Agenda

Why Focus on “Engagement”?

What Is AOL Doing?

AOL Consumer Insights

Social Orientation

Med

ia E

ngag

emen

t

A Framework for Engagement

IAG Research, Making Engagement Work, April 2006

AOL Targeting Capabilities

Audience Affinities

Data Targeting

Behavioral Targeting

Content Affinities

How Does Targeting Fit With Engagement?

Targeting

13

>

Measurement & Ongoing Optimization

Customer Strategy & Investment Optimization

Design & Execution

Customer Strategy

Measurement & Reporting

Economic Business

Case

Measure-ment Plan

Strategy Development

Mission: Drive significant improvements in marketing productivity by “building the bridge” between strategies and ongoing performance optimization

> Channel Investment Optimization

>Ongoing Cross-Channel Marketing Optimization

>Measurement Infrastructure Enablement> Analytic Customer Insight> Loyalty Strategy> Pricing Strategy

>Customer Information Design

> CRM Strategy> Segmentation> Value Proposition Development

> Strategy & Analysis Team Overview

Strategy Development (SD)

Measurement and Decision Analysis (MDA) Customer Research (CRG)

Increasing Marketing Productivity Through Customer Insight

> Measurement strategy development> Analytic segmentation> Test design> Reporting and analysis design> Statistical modeling> Financial modeling> Web marketing measurement> Site analysis> Customer data design/architecture> Process modeling and design> SAS, SQL, on-line measurement tools

> Market analysis> Competitive analysis & benchmarking> Channel strategy & analysis> Value chain analysis> New technology trends> Business model analysis> Financial & economic analysis

> Survey development> Test design and sampling> Analysis and Interpretation

>Multivariate analysis>Conjoint and discrete choice

> In-house moderating>Focus groups>On-on-ones>Usability

> Use model analysis> Competitive assessment> Benchmarking

> Focused on practical, achievable initiatives that can be implemented• Grounded in 20 years of implementation experience of what works

> Accountability for success of results in the market> Combination of strategy generalists and analytic specialists> Experienced consultants from top strategy & analytics firms – Bain, BCG, McKinsey, Mercer, MAC

Group, Monitor, Accenture, Epsilon, Capital One> 92 team members globally

Team

> Key Trends/ Challenges

Industry trends are making measurement more challenging…

Difficulty linking marketing investments to shareholder value

Difficulty optimizing marketing investments across multiple dimensions

• Channels• Products• Lifecycle stages

…Digitas is working with clients to face these challenges and drive greater insights

> GM, Delta, Celebrity Marketing “Balanced Scorecards”

> Financial Services interactive P&L

> Gillette, FedEx brand testing

> ATT Winback Test & Learn

> Delta, Celebrity Lifecycle Measurement/ Modeling

> AEFA Channel Performance

> Barnes & Noble Readers Advantage ROI Modeling

> LL Bean Cross-Channel Measurement/ Modeling

Cost/ complexity of robust measurement solutions

> Financial Services Profiling/ Targeting

> Travel Services Web Measurement Improvement

> Gatorade Consumer Panel

Proprietary and confidential. Do not copy, duplicate or distribute without prior permission from Javelin Direct Inc. © 2006 Javelin Direct Inc. All rights reserved.

Client’s Measurable

Success Objectives

Core Competency

ThreeService Areas

Mission

Operating Method

Summary

Proprietary and confidential. Do not copy, duplicate or distribute without prior permission from Javelin Direct Inc. © 2006 Javelin Direct Inc. All rights reserved.

Accountability Solutions

Minimalists

NoFrills

VarietySeekers

Piecemealers

MovieWatchers Fans

High Risk/High Maintenance

NewCustomers

High Risk/ New Movie Piece- Variety Voluntary InvoluntaryStarting Segment MinimalistsHigh Maint.Customers Fans Watchers mealers Seekers No FrillsDisconnectDisconnect TotalMinimalists 62.5% 1.6% 0.3% 0.1% 0.4% 7.9% 0.5% 6.3% 14.8% 5.6%100%High Risk/High Maint. 6.7% 15.7% 0.2% 3.0% 9.0% 8.2% 5.8% 6.7% 12.7% 32.0%100%New Customers 16.6% 6.6% 2.8% 7.8% 5.0% 10.5% 5.3% 9.2% 14.9% 21.4%100%Fans 0.5% 2.7% 0.1%65.9% 3.5% 0.7% 10.1% 0.7% 8.5% 7.3%100%Movie Watchers 1.9% 2.8% 0.1% 6.0% 52.5% 4.7% 11.8% 6.9% 10.3% 3.0%100%Piecemealers 9.0% 1.6% 0.1% 0.4% 4.8% 50.9% 9.6% 11.1% 10.1% 2.5%100%Variety Seekers 1.5% 3.1% 0.1% 7.6% 10.2% 9.5% 50.9% 2.5% 9.3% 5.2%100%No Frills 10.3% 1.8% 0.2% 0.2% 6.8% 6.3% 2.3% 57.0% 12.4% 2.6%100%

All Customers 17.9% 4.2% 0.4%10.0% 10.2% 12.5% 12.4% 11.5% 11.8% 9.2%100%

Migration of 10% or more is represented in highlighted cells. Rows sum to 100%

Ending Segment

Churn by Month -- Actual and Moving Average curves

1.25%

1.51%1.58%

1.44%

1.66%

1.36% 1.35% 1.40%

1.09%

1.37%1.31%

1.46% 1.42%1.53%

1.42%

1.61%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

Apr-02 May -02

Jun-02 Jul-02 Aug-02

Sep-02

Oct-02 Nov -02

Dec-02

Jan-03 Feb-03

Mar-03

Apr-03 May -03

Jun-03 Jul-03

Churn R

ate

Involuntary Voluntary Total3 per. Mov. Avg. (Voluntary) 3 per. Mov. Avg. (Involuntary) 3 per. Mov. Avg. (Total)

Segmentation

Customer Migration

Predictive Models

Churn Models

LTV Analysis

VarietySeekers

Fans

High Value Customer

RecognitionProgram

Test Design

Customer Level Data Company Level DataCampaign Level Data

Media Mix Modeling

Retention Modeling

Causal Modeling

Campaign Planning

5.25.6

66.46.87.2

1 2 3 4 5 6 7 8 9 10111213141516 1718

Best Practices -- Flighting of Tactics

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8Mass DRTV InteractiveCatalogEventsDM (Other)FSIBill Insertsup2speedeMail*Bundles DM

*email sent in Week Two of each month per client requirement

Mass, interactive and events : Raise awareness for promotion and seed the market for targeted tactics

Catalog, DRTV, bill inserts and FSIs: Generate interest in specific offers; capture low hanging fruit

Direct Mail: Communicates one-to-one based on optimal model/consumer criteria to stimulate purchase

Permission marketing and events: Follow up and reinforce awareness/offers

Individual tactics play a unique role while integrating seamlessly for clarity, consistency and maximum communication impact.

Campaign Reporting