1. IAB Brand Engagement Study 2007 - Haircare Conducted by Carat Insight for the IAB

2. IAB Brand Engagement Study objectives To demonstrate the ability of internet advertising to drive engagement To measure the effects of internet advertising on brand strength relative to other media To identify how internet advertising works alongside other brand contacts to increase brand consideration

3. Brand Engagement What do we mean by brand engagement? Communications Engagement Media Engagement What Brands want to know: Does Internet Advertising drive brand engagement?

4. Brands included in this study Fructis Herbal Essences Pantene Elvive Aussie

5. Connecting brand contacts to engagement - the basic idea for the IAB study Shampoo Brand Engagement Internet ad Websites TV ad Outdoor ad Press ad Direct Mail News Stories Product Reviews Promotions Sponsorship Events Word of Mouth Product Usage Product Experiences Service Experiences Brand Contacts Family Fresh For my hair Natural Attitudes to shampoo brands NO EFFECT

6. Multivariate Modelling To build model of drivers of brand engagement & identify relative impact of different contacts PHASE 3 Quantitative Research To capture data on brand engagement metrics and on all recent contacts with test brands PHASE 2 Associative Networks Qualitative research To define conceptual model of engagement for category & test brands PHASE 1 Integrated Communications Evaluation 3 Components of “ICE”

7. How women who are interested in beauty choose brands

8. Quantitative Sample 1000 interviews amongst 20-60 year old, ABC1C2 women Agreeing with at least 4 out of the following statements: I only buy exotic bath products I only buy the best makes / labels in life I regularly visit a beauty salon I spend hours pampering myself I only drink expensive wine I like splashing out on beauty products I keep up to date with the latest fashions

9. Overall, these women categorise toiletries on a continuum from ‘everyday’ to ‘luxury’ Body lotion Face creams Exfoliants Bath Salts Haircare Toothpaste Makeup Mouthwash More everydayMore luxury Unusually Shampoo/haircare products encompass both ends of the spectrum The condition & appearance of their hair is almost more important to these women than make up

10. Choosing shampoo - The never ending journey…? These women appeared to enjoy the amount of choice available to them Few feel as if they have arrived at a perfect solution The amount of ‘claims’ by brands forces a large amount of self-diagnosis regarding their hair Whilst this can cause some anxiety, most enjoy the choice and tend to believe that there could be a better / more effective product somewhere in the market They are inveterate trialists……..

11. Prompts for purchase The desire to ‘switch’ products Change in hair ‘state’ Whimsical Habitual Part of same range as existing product POS offers New product claim Read review/news WOM What ‘I’ want External Messages No set process for decision making, any of these factors can be most influential at each purchase occasion

12. Magazines & TV are cited as the main sources of information about the category, but the internet plays a role too Primary source of ad messages Celebrities used to ‘sell the dream’ of great hair – not always believed Some resistance to overly scientific content Heavyweight campaigns have potential for ‘overkill’ Highly accepted source of new product info Praised for educational messages and free samples Good fit between ‘me time’ usage of magazines and haircare category Currently used to pro-actively source information about products Also some incidence of reading news, reviews online TV Magazines Internet

13. Personal recommendations are often the key to choice Word of mouth also a much valued source of information on the haircare category Hairdressers tips/recommendations What’s worked for friends/family Also receptive to positive/negative comments about their own hair Will change/stick with their shampoos off the back of this

14. Online advertising also reaches a good percentage of the target audience 39 advertisements were tested across 3 media 9 TV ads 15 press ads 15 online ads

15. Understanding their brand engagement system

16. 10 Engagement Factors Made up of 25 brand perceptions Generally Good Brand X is a feminine brand Brand X is for all the family This brand makes your hell smell great Value This brand’s products are reasonable priced This brand is for everyday use This brand is for special occasions Brand X is on offer a lot Good for them This brand is aimed at people like me This brand has a good shampoo/conditioner for my type of hair Using this brand makes me feel I’m looking after myself properly Natural Brand X is a fresh brand This brand uses natural ingredients Brand X Engagement Quality Brand X is a quality brand The effects of this brands' products tend to stop working quite quickly Range This brand is always bringing out new products and ranges This brand has a good range of products for all types of hair This brand has a styling range that works well Trust I can always trust this brand to work on my hair I do not believe the claims made in this brand’s advertising Scientific This brand uses scientifically developed ingredients Brand X is a modern brand Marketing This brand is endorsed by celebrities I trust Brand X does a lot of advertising Packaging This brand’s packaging looks good The design of Brand X’s packaging makes it easy to use 15.9% 18.9% 24.2% 15.4% 9.6% 5.0% 3.8% 2.7% 2.4% 2.0%

17. 25 attitudes feature in the haircare brand engagement system

18. Top 7 attitudes account for 80% of brand engagement

19. Measuring the impact of brand contacts

20. Source of Brand engagement

21. Marketing communications account for 30% of change in engagement

22. Within experiences, positive effects on respondents hair is the biggest driver

23. The 4 Competitors’ communications have a larger combined effect than test brand (5.8% per competitor)

24. Competitor webpages are the largest influences

25. Online ads & webpages together account for 35% of each brand’s effects

26. Women seeing a brand’s online ads are 3.5 times more likely to see its webpage

27. Which collection will make you shine?

28. Which online creatives worked best? The most successful online ads talked about helping people find out what was right for them These ads linked through to a website designed to help identify the right product for them Many ads simply championed one or other variant and featured links to competitions etc These did very little for the brand

29. In the shampoo & conditioner category, online advertising & webpages delivered 35% of the marketing communication effect on brand engagement (on average) Key Findings

30. Key findings Online advertising more than pulls its weight as a driver of brand engagement For a highly involved audience such as this, personal relevance to them seems to be key The internet is uniquely able to combine brand advertising messages that can readily lead women to personally relevant content that helps them make choices for their hair

31. Online advertising works hard for its money Online advertising is 2.4 times more effective than its share of spend suggests

32. Brand Engagement Study Conducted by Carat Insight for the IAB For more information please contact: Laurence Bird Head of Research and Planning, IAB laurence@iabuk.net