October 2007    Editor's note: You are receiving our newsletter, which provides research insights focusing on integrated advertising. Dynamic Logic's "What's In The Mix" newsletter will highlight cross-media advertising "news you can use" and insights about multimedia campaigns. We welcome your feedback and hope you pass it along.

N E W S  Y O U  C A N  U S E

Media Work Best Together, Playing Different Roles in Driving the Consumer Purchase Process Magazine Strengths Drive Persuasion and Purchase Intent Dynamic Logic, a Millward Brown company, releases new analysis of 32 cross-media campaigns* across ten categories showing that media work best when used together. All three media platforms – television, magazines, and online – contribute incrementally to brand metrics, but at different levels, bringing various strengths at different points along the purchase funnel. TV and online's contributions were more apparent during the awareness stages while magazines were stronger at building brand favourability and purchase intent. These findings are consistent with results from an earlier analysis conducted by Dynamic Logic in 2006. For this analysis, Dynamic Logic isolated the impact of TV advertising, then assessed online's contribution in addition to TV, and finally looked at magazines added to the online and TV combination. The chart below summarises the increases in brand metrics from media combinations over the levels represented by TV alone. The study compared people who had the opportunity to see only TV advertising with those who had the opportunity to see TV in combination with other media. For example, online advertising represents the increased impact of online display advertising combined with TV (+3.7 percentage points for aided brand awareness). The magazine values represent the (positive) change in each metric produced by adding magazine advertising to TV and online using the same approach. The incremental values from the addition of magazines were very strong, adding most impact further down the purchase funnel with contributions to brand favourability perceptions and purchase intent. Incremental Effect of Medium on Brand Metrics: Overall Studies Average Percentage-Point Increase Over Unexposed (Control) Baseline Source: Millward Brown & Dynamic Logic CrossMedia Research N=32 campaigns 2004-2007 Delta=Exposed-Control NOTE: Percentage-point increases are calculated and tested for statistical significance at a 90% confidence level. Campaigns included in these aggregate results include those which have television, magazine, and online media scheduled comparatively at similar time periods, where the audience overlap did not result in highly discrete groups with atypical audience characteristics. Other key findings: TV advertising performs the strongest for generating brand awareness. When used in combination with TV, magazine and online each build on the initial awareness impact of TV. Over these 32 multimedia campaigns, magazines' incremental awareness added nearly as much to the total as TV. Both magazine and online advertising generate significant lifts when used in conjunction with TV. TV and magazine advertising produced greater incremental brand and ad awareness gains than online advertising. Incremental contributions from magazine advertising are strongest for brand favourability and purchase intent. They about double the average persuasion contribution of TV and online combined. Online is a booster on all key awareness and persuasion metrics This initial research allows us to begin to quantify the synergy of cross-media campaigns. It also suggests that through further research we may begin to examine whether there are cost-efficiencies within certain media combinations that could significantly increase an advertiser's impact, without increasing costs. The results across these studies were aggregated in order to better understand how these media work together to support brand metrics. The cross-media campaigns used in the analysis had similar media allocation and duplication levels. * This analysis is based on evaluations of 32 cross-media campaigns: FMCG (14), Automotive (5), Consumer Electronics (4), Information Technology (4), Apparel, Financial Services, Alcohol, Non-Profit, Entertainment.

A B O U T  D Y N A M I C   L O G I C

Dynamic Logic (www.dynamiclogic.com) is a leading research company with expertise in measuring marketing effectiveness. Dynamic Logic's research includes: AdIndex® to test and analyse online advertising, CrossMedia Research™ to evaluate multimedia campaigns, MarketNorms®, a syndicated ad effectiveness planning and benchmarking database, and Link™ Select for Digital, an online copy-testing solution developed jointly with Millward Brown. Founded in 1999, the company is headquartered in New York City with offices in Chicago, Providence, San Francisco, London, and Tokyo. Clients include leading marketers, advertising agencies and media companies. Dynamic Logic is a Millward Brown company, which is part of The Kantar Group, the information and consultancy arm of WPP.

A B O U T  C R O S S M E D I A   R E S E A R C H ™

Dynamic Logic's CrossMedia Research measures the value of integrated media packages and quantifies the success of a cross-media campaign with any combination of media (most commonly online, print, television or radio). CrossMedia Research allows advertisers, agencies and publishers to understand cost effectiveness of different media in the mix.

A B O U T   M A R K E T N O R M S ®

Advertisers, publishers and agencies use MarketNorms to understand which aspects of online advertising have the greatest impact on brand lift. The MarketNorms database developed by Dynamic Logic of over 3,480 campaigns across more than a dozen industries has branding lift metrics, ad and brand attributes, environmental/site data, audience data and other campaign information collected in over 5.2 million surveys. www.marketnorms.com

A B O U T   A D I N D E X ®

Dynamic Logic's AdIndex is a research tool used by online advertisers to measure the effectiveness of their campaign beyond click-through. By providing real-time metrics on brand awareness, purchase intent, message association, and creative evaluation, AdIndex empowers online marketers to optimise their campaigns and get a true measure of the campaign's impact. AdIndex was developed by Dynamic Logic and is patented technology. www.adindex.com

A B O U T   L I N K ™

Link for Digital, an online copy-testing solution developed jointly with Millward Brown, provides advertisers, agencies and publishers with consumer feedback on their creative executions before the campaign goes live. Online ads must be memorable, communicate your message, and be persuasive. Link provides diagnostic and evaluative insight into which creative performs best.

C O N T A C T   U S

www.dynamiclogic.com/eu Level 2 24-28 Bloomsbury Way London WC1A 2PX t: +44 (0) 20 7126 5000 f: +44 (0) 20 7126 5003 europe@dynamiclogic.com

Copyright © 1999-2007 Dynamic Logic Inc. - A Millward Brown Company. All Rights Reserved. If you enjoy What's In The Mix, let us know. Please send feedback, comments and topics you'd like to see addressed to europe@dynamiclogic.com. All letters become property of Dynamic Logic and may be edited for space and clarity. To subscribe to this email newsletter, please visit http://www.dynamiclogic.com/eu/research and enter your email address in the newsletters box on the left.