The Campaign 2 Campaign Goals and Research Objectives

The Campaign 2

Campaign Goals and Research Objectives Campaign Goals Research Objectives Launch the new brand platform "Approved by Life” to women open to diet/weight loss plans • Increase top of mind WW awareness, • Enhance association of ‘ABL’ with WW • Drive conversion Measure the online campaign in its ability to build ‘Approved By Life’ association with WW and drive consideration for the brand Understand the incremental effect of Video placements 3

Methodology Ad. Index uses a control-exposed methodology that measures the branding value of online ad campaigns as they run live across a site or set of sites. Two groups are simultaneously sampled and their responses compared. From the footprint of the plan Exposed* Yes Control* * Both groups are random samples from the same population (they are statistically the same people) Do the results indicate a difference? Did they see the campaign? No Weight Watchers Campaign: Sample recruited: n=2909 (1049 control; 1860 exposed) Fieldwork between Dec 17 2009 – Feb 28 2010 4 Online intercept, short 5 -7 minute survey Simultaneous recruitment: Both groups are surveyed at the SAME time about their attitudes toward the brand Adconion Drive PM Nine. MSN Shespot Media. Smart Yes Since the only statistical difference between groups Exposed and Control is the presence of the creative, we can attribute the lift to the creative Fairfax Digital Yahoo!7 News Digital Media Multi Channel Network

Measuring the Impact on Brand Awareness Measures the level of familiarity respondents have with the brand (aided and unaided) Message Association Measures the extent to which respondents can match the messages and/or concepts in the creative to the brand Brand Favorability Measures the extent to which respondents have a positive or favorable opinion of the brand Purchase Intent Measures the likelihood of respondents to purchase the brand in the future 5

Examples of Creative Units Video Standard Flash 6 Note: Creative screenshots are not to size

The Overall Results * Statistically significant increase at 90% confidence level Not a statistically significant movement at 90% confidence level 7 * Statistically significant decrease at 90% confidence level Note: Creative screenshots are not to size

To the total audience Unaided Awareness and Favourability show significant improvement Total Exposed v Control– Brand Metrics Percentage Increase (Exposed vs Control) Base, Total Sample: Control (n=1049) Exposed (n=1860) Unaided Brand Awareness Online Ad Awareness ‘Approved by Life’ Association Brand Favourability Purchase Consideration * Statistically significant increase at 90% confidence level 8

The campaign successfully communicates key Brand Attributes Total Exposed v Control– Brand Associations Percentage Increase (Exposed vs Control) Base, Total Sample: Control (n=1049) Exposed (n=1860) Weight Watchers. . . Allows you to eat w/ the whole family Fits an unpredictable, busy lifestyle Fits into your life Is a leader in weight management Is flexible Is modern/ up to date Is not a diet, is a lifestyle Makes you look at weight loss differently * Statistically significant increase at 90% confidence level 9

Compared to Dynamic Logic Market. Norms, at the overall level the campaign was excellent at increasing Favourability Ad. Index Score: Normative Benchmarking of Brand Metric Deltas* Note: Category includes packaged diet food brands Below Average Above Average Excellent Online Ad awareness ‘Approved by Life’ Association Brand Favorability Purchase Intent Percentile Ranking of Overall Delta Against Database * Market. Norms 2001 Q 1 to 2009 Q 4, (Category: CPG – Diet/Weight Loss, Baseline Unadjusted, N=20+ campaigns) 10

Key Question: Does Online Video provide incremental impact? 11

Dynamic Logic Market. Norms Database Market. Norms is the largest database of online brand-building campaigns in the world More than 5, 000 campaigns Can be filtered by category, creative type, demographics, etc. 12

Dynamic Logic Market. Norms: Online Video has more impact than standard display advertising Video vs Total Database – Brand Metrics Absolute Difference (Exposed minus Control) Aided Brand Awareness Online Ad Awareness Message Association Market. Norms Video Market. Norms Overall Brand Favourability Purchase Consideration Source: Dynamic Logic Global Market. Norms, Overall N=2, 309 campaigns, n=2, 767, 852 respondents, last 3 years, fixed frequency level of 1 / Video N=186 campaigns, n=2, 247 respondents, last 3 years 13

Dynamic Logic Market. Norms: Video ads cut through much more successfully than Rich Media at a single exposure Frequency and Online Ad Awareness Absolute Difference (Exposed minus Control) Q 4 / 2008 Difference in Online Ad Awareness Video Rich Media Frequency (Number of Exposures) Source: Dynamic Logic Global Market. Norms, Q 3/08; Video Freq 1 -2= c 194, Freq 3 -6= c 64, Freq 7+= c 33. ; Rich Media Freq 1 -2= c 1756, 3 -6= c 1234, 7+= 1030. 14

Dynamic Logic Market. Norms: There is a danger with negative brand response to Video at high frequency Frequency and Purchase Intent Absolute Difference (Exposed minus Control) Q 4 / 2008 Difference in Purchase Intent Rich Media Video Frequency (Number of Exposures) Source: Dynamic Logic Global Market. Norms, Q 3/08; Video Freq 1 -2= c 194, Freq 3 -6= c 64, Freq 7+= c 33. ; Rich Media Freq 1 -2= c 1756, 3 -6= c 1234, 7+= 1030. 15

Do we see similar results for the Australian Weight Watchers campaign? 16

Exposure to Creative Format Exposed to: Video 23% Both 27% Base, Total Exposed (n=1860) 17 Standard 50%

Standard Ad units moved brand metrics but required relatively high frequencies to have significant impact Exposed to Standard Only Percentage Increase (Exposed vs Control) Overall increase Unaided Brand Awareness Brand Favourability Purchase Intent Allows you to eat with the whole family Fits an unpredictable, busy life Fits into your life Is a leader in weight management Is flexible Is modern/up to date Is not a diet, is a lifestyle Makes you look at weight loss differently Optimal Increase at optimal frequency 16+ * 4 -9 * 16+ * 4 -9 16+ 4 -9 * 16+ * 4 -9 * Average Frequency 8. 7 Base: Control (n=1049) Exposed (n=936) * Statistically significant increase at 90% confidence level 18

Online Video ads able to impact brand metrics at much lower frequencies Exposed to Video Only Percentage Increase (Exposed vs Control) Overall increase Unaided Brand Awareness Brand Favourability Purchase Intent -Allows you to eat with the whole family Fits an unpredictable, busy life Fits into your life Is a leader in weight management Is flexible Is modern/up to date Is not a diet, is a lifestyle Makes you look at weight loss differently Optimal Increase at optimal frequency * 2 3+ 2 * 2 * 2 2 2 Average Frequency 1. 0 Base: Control (n=1049) Exposed (n=419) * Statistically significant increase at 90% confidence level 19

Consistent with Dynamic Logic Global Market. Norms The Weight Watchers campaign confirms that online video drives brand metrics at lower frequencies than standard online ads Video is more noticeable: * Video plus audio * More room to convey emotional and rational stories * Pre-roll = captive audience * in-banner generally in prime MREC placements 20

However, a combination of Video and Standard units worked best Campaign Performance by Creative Format Percentage Increase (Exposed vs Control) Standard Only Unaided Brand Awareness Brand Favourability Purchase Intent Allows you to eat with the whole family Fits an unpredictable, busy life Fits into your life Is a leader in weight management Is flexible Is modern/up to date Is not a diet, is a lifestyle Makes you look at weight loss differently Video Only Standard + Video * * -- * * * * Average Frequency 8. 7 Base: Control (n=1049) Standard Only Exposed (n=936), Video Only Exposed (n=419), Standard + Video Exposed (n=505) 1. 0 9. 3 * Statistically significant increase at 90% confidence level 21

Key Learning 1 Video more effective at lower frequencies Key Learning 2 Combination of Video and Standard most effective for this campaign 22

Key Learning 3 The Impact of creative Most and Least Noticed Video Ads Absolute Difference (Exposed vs Control) Video Best Video Norms Video Worst All online ads are not created equal. . . Aided Brand Awareness Online Ad Awareness Message Association Brand Favourability Purchase Consideration Note: Most/Least noticed defined as top/bottom 20 percent sorted by Online Ad Awareness delta Source: Dynamic Logic’s Market. Norms through Q 3/2006, Video N=108 campaigns, n=125, 733 respondents 23

Key Learning 3 The Impact of creative Succeeding with Video ads Commonalities among the MOST noticed video ads – ü Creative was well branded ü Web allowed consumers to have an interactive experience with their brand ü Enjoyable and entertaining ü Content was synergistic with offline marketing efforts ü Kept the brand constant through use of companion ads Key take-aways from the LEAST noticed video ads – û Ad didn’t engage and establish relevance quickly û It wasn’t clear what was being advertised in the video. Viewers will not want to work at understanding what is being featured and communicated — the branding and messaging should be readily apparent. û Keep in mind that many viewers may not have the audio turned on — do not rely on a catchy jingle or song to solely communicate your brand message 24

Key Learning 3 The Impact of creative The standard element of the campaign required high frequencies Based on analysis from our market norms database. . . • The most successful ads: • Well able to capture attention • ALL frames able to deliver the key message and brand (in non pre-roll units) 25

Key Learning 4 Impact on Brand does not Mean Clicks Performance Marketing and Brand Advertising are two different tasks and will most likely require different creative (and different measurement) • Clicks are not correlated to brand impact Source: “Can Rich Media Metrics Predict Brand Impact? ” by Ken Mallon (Dynamic Logic) and Rick Bruner (Google) 26

Summing Up • Online works: The Weight Watchers online campaign was successful in building key brand metrics and communicating brand attributes • Online video is effective at building brand metrics and requires lower frequency than standard ad units • Standard and Video work well together • • As Video is capable of driving brand metrics at lower frequencies (backed up by Market. Norms analysis), consider commencing with high impact Video for reach (setting lower caps) and following with Standard units to build frequency later in the campaign As with offline media, the quality of creative plays a major role in online brand success 27