1. Brand Engagement Study - Retail

2. Brand Engagement Studies 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 08

3. Three brand engagement studies to date

4. A total of 38 communications tested 14 2 3

5. 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”

6. Connecting brand contacts to engagement Department Stores Brand Engagement Department Stores Brand Engagement Websites TV ad Outdoor ad Press ad Direct Mail News Stories Promotions Sponsorship Events Word of Mouth Shopping Experiences Service Experiences Brand Contacts Sales Quality Image Attitudes to department stores brands NO EFFECT Internet ad Service

7. Key qualitative findings

8. In store PR Email updates Newspaper & magazine ads TV ads Personal experience Company websites Word of mouth Knowledge and opinions of different stores Window displays Newspapers and magazine PR Sponsored links and search engines Information is both actively sought and passively consumed As an engaging and highly relevant category, consumers are generally receptive to messages Information is both actively sought and passively consumed As an engaging and highly relevant category, consumers are generally receptive to messages Sources of information

9. Mainstream brands Mainstream brands Standardised layout Standardised layout ‘Major high street retailer’ associations Range of products Range of products Everything under one roof Everything under one roof Sales Functional/tangible Heritage Trust and reputation Trust and reputation Customer service Customer service Large stores Large stores High street / retail park High street / retail park Nationwide presence Nationwide presence Familiarity Quality Advertising Emotional/Intangible Cues/prompts MAJOR HIGH STREET RETAILERS MAJOR HIGH STREET RETAILERS Latent associations and key themes consistent across the category

10. The quantitative research

11. Quantitative sample and fieldwork 1024 women Aged 30 – 50 All to have shopped in at least 3 of the stores included in the study in the last 6 months All to agree with the statement ‘I enjoy shopping in major stores on the high street’ All to have broadband internet access either at home or at work All to use internet at least 2-3 times a week and at least 7 hours a week Fieldwork undertaken between 12 and 27 May 2008

12. Definition of brand engagement

13. What is engagement? Brand Engagement Brand Engagement Communications Engagement Communications Engagement Media Engagement Media Engagement What Brands want to know: Does Internet Advertising drive brand engagement?

14. Brand engagement is expressed via four attributes I would consider making a purchase from this store I would recommend this store to friends and family This store makes shopping an enjoyable experience This store is one of my preferred retailers

15. Understanding the brand engagement system

16. 7 Engagement Factors Made up of 35 brand perceptions Department Stores Engagement Department Stores Engagement 24.3% 16.5% 12.1% 10.8%19.3% 2.4% 14.7% Service e.g. This store has knowledgeable staff Service e.g. This store has knowledgeable staff Sales e.g. This store has sales worth going to Sales e.g. This store has sales worth going to Affinity e.g. This store is a store for people like me Affinity e.g. This store is a store for people like me Quality e.g. This store sells high quality products Quality e.g. This store sells high quality products Choice e.g. There’s a lot of choice in this store Choice e.g. There’s a lot of choice in this store Presence e.g. There are branches of this store all over the country Presence e.g. There are branches of this store all over the country Fits my needs e.g. I can always find something I want in this store Fits my needs e.g. I can always find something I want in this store

17. Measuring the impact of brand contacts

18. 1/3 of retail brand engagement is made up of base and 2/3 is driven

19. Brands’ own communications account for 5% of driven brand engagement

20. Across the five brands, on average online display advertising has contributed 40% of the gross communications effect

22. Average impact of communication channels relative to each other

23. Online advertising works hard for its money Online advertising for department stores is 16 times as effective per £ of spend as the all media average 5 brand average 2.5% 40% Source of the media spend: Nielsen Media Research Ltd Time period: Jan07 – Mar08

24. Website experiences have over twice the impact of brands’ own communications

25. The impact of online experiences in detail

26. How does this compare with the other studies?

27. Key findings

28. In the department stores category online advertising delivered 40% of the marketing communication effect on brand engagement (on average) Key findings

29. All media channels can drive brand engagement for high street retailers Online advertising has a critical role to play in this Other online touchpoints create a virtuous circle

30. Key findings Focused messaging – e.g. “new collection”, “this is easy”, “exclusive” Simple delivery ‒ messages tend to be interpreted literally or not at all, so don’t be abstract Get to the point

31. Brand Engagement Study - Retail Presented by Kieron Matthews, IAB and Mary Jeffries, ævolve