Case StudyHow Kellogg’s Brands Work Their

Digital Strategies

Aaron FettersAssociate Director

Global Digital Strategy & Analytics

Kellogg’s

Jeff SmithCMO & SVP

Client ServicesVizu

• A survey of more than 450 digital marketing and media professionals conducted in late 2011 by Digiday Media & Vizu

• Participants included Brand Marketers, Media Agencies, and Media Sellers

• Questions covered both the online brand advertising outlook for 2012 in addition to best practices for online brand advertising

The Online Advertising Outlook for 2012Industry Study

The Online Advertising Outlook for 2012Online considered a powerful brand-building medium

• Direct Response Advertising Growing: – 56% of brands respondents said they will increase spending

in 2012– 15% said they will increase spending by more than 20%

• Brand Advertising Growing Even Faster: – 64% of brand respondents said they will increase spending

in 2012– 22% said they will increase spending by more than 20%

The Online Advertising Outlook for 2012Brand Advertising surpassing Direct Response for 1st time

Brands: What type of digital advertising do you plan to use in 2012?

Branding59%

Direct Response

41%

The Online Advertising Outlook for 2012Some channels growing faster then othersBrands: How will brand ad spending in the following channels compare to prior year?

17%

20%

29%

57%

63%

69%

37%

60%

57%

34%

34%

26%

0% 20% 40% 60% 80% 100% 120%

Connected TV/IPTV

Standard Display Advertising

Rich Media Advertising

Video Advertising

Social Media Advertising

Mobile Advertising

Increase Stay about the same Decrease Don't Use

The Online Advertising Outlook for 2012Brand’s Perspective: What would make it better?

Brands: Which of the following would lead you to increase spending on online brand advertising? (Check all that apply)

38%

50%

53%

56%

68%

Ability to verify my online brand advertising was actually delivered to my target

audience

Purchasing efficiency (e.g. the ability to reach audience at scale through fewer

outlets)

Ability to use the same metrics to evaluate brand advertising effectiveness online as

are used offline

Ability to verify my brand advertising created the desired result (e.g. increased

awareness of my product)

Improved clarity around the actual return on your brand advertising investment

Cleaning up the “Metrics

Morass” in the online medium

Commenting on the amount of data bandied around in the online ecosystem, 34% of Brands stated:

“I’m drowning in data; I would prefer to focus on a few meaningful metrics to evaluate the

performance of my campaign”

The Online Brand Advertising Outlook for 2012Challenge: The online “metrics morass”

Asked to what extent they would like to leverage offline metrics in the online medium, brands say:

Asked what they typically report, Media Sellers say:

15%

24%

55%

6%

0% 10% 20% 30% 40% 50% 60%

Just metrics specific to the online medium

Some of the metrics from the offline medium, some metrics specific to the

online medium

The exact same metrics, and a few additional metrics specific to the online

medium

The exact same metrics, and nothing else

47%

30%

14%

10%

0% 10% 20% 30% 40% 50%

The Online Brand Advertising Outlook for 2012Challenge: The online “metrics morass”

20%

29%

29%

31%

57%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Time spent / Dwell time (e.g. on a micro-site)

Shares or re-posts of the advertising

Clickthrough rates on the advertising

Interaction rates with the advertising

Sales generated as a result of the advertising

Brand Lift generated as a result of the advertising

Asked specifically for the most appropriate metrics for brand advertising, marketers responded:

The Online Brand Advertising Outlook for 2012Challenge: The online “metrics morass”

Other key things brand advertisers are looking for:

• Proof on the front end: Only 6% of brand surveyed said they “Strongly believe” media sellers claims they can reach the custom / niche audiences the brands are looking for.

• Results on the back end: Nearly all respondents identified “in-market optimization of campaigns against relevant Brand Metrics” and “Proof of performance” as critical to maximizing ROI

The Online Brand Advertising Outlook for 2012Additional challenges

• In 2012, brand advertising is set to finally surpass performance based advertising in the online medium

• That said, the outlook could be even better, if we work to clean up the “metrics morass” in the online medium

• Use metrics that matter to maximize the return on your online brand advertising investment

The Online Brand Advertising Outlook for 2012Conclusion

Download the full reporthttp://brandlift.vizu.com/knowledge-resources/research/2012-industry-outlook/

Benchmark Your Brand Advertising IQ based on this Surveyhttp://brandlift.vizu.com/knowledge-resources/brand-ad-iq/

Playing “Moneyball” with Digital MediaReal Time Optimization Based on Metrics That Matter

Aaron Fetters – The Kellogg Company

It’s about getting the MOST out of the $ you have– We aren’t all the New York

Yankees (or Chelsea Football Club)

Don’t buy players, buy wins

Identify stats indicative of GAMES WON, vs. stats that are easy to count– On-base % vs. HR, RBI, etc.– Wins Above Replacement

Lessons From Moneyball

Digital Measurement – From a Brand’s Perspective• Kellogg Company Background

• Where We’ve Been– Challenges in Digital Measurement

• Where We Are– Establishing Goals and KPIs– What Have We Learned

• Where We Are Going– Enhanced Planning– Informed Buying– Near-time Optimization

• What it Means for Media and Measurement Partners

Agenda

Manufacturer and Marketer of some of America’s favorite food brands

• Attracting more of our consumers’ media time

• Attracting more of our Brands’ media $$$

• But filled with endless options – our Brands are looking for guidance

At Kellogg, Digital Marketing has Momentum

Where We’ve Been – Challenges in Digital Measurement

Though broad, historical efforts to track and measure digital have been disjointed

In the past 6 months we have focused on the

opportunities to:

1. Define a common set of Goals for Digital Media

2. Establish the KPIs (metrics) that REALLY matter to track against our Goals

3. Develop and communicate a Digital Measurement Framework, along with Principles for how we will track Digital and capture KPI results

Where We Are – The KPI Framework (which statistics really lead to Wins?)Establishing a model for Media Effectiveness – applied initially to Online Media

• Branded Recognition • Brand Buy Next

PRE-MARKET QUALITYDoes my creative have the right

to succeed?

• % Impressions to Target• Frequency of Exposure• % Impressions in View• CPM

AUDIENCE DELIVERYDid we efficiently reach our

Target?

• Brand Awareness• Purchase Interest• Message Association• Direct Response

IN-MARKET EFFECTIVENESS

Are we moving the needle?

Where We Are - What Have We Learned?

“oh my gosh you are the best ever - totally re-worked my plan just now.

 thank you so much!!!!!!!!!!!!!!!!!

!!!”

Campaign targeted to a Hispanic audience

One publisher delivering only 1.2% of our Impressions to the demographic

Target audience (that’s a 98.8% waste folks)

However, another publisher had a Targeting Efficiency of 5.1 – meaning their Targeting ability allowed us to

reach our Target 5X better than if we bought Run Of Network

What Else Have We Seen?

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

Let’s take a look at a few of our biggest campaigns from 2011

(Data provided is at an individual publisher, individual campaign level)

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%These publishers

effectively delivered to our target and efficiently balanced the exposures

There have been some clear top performances

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

Conversely, this execution is generating a great deal

of reach, but 75% is to someone other than our

Target audience

There are some clear opportunities

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

15.7 21.04% 24.68%

And in this case Impressions are virtually

being thrown away as the wrong audience is

reached over and over again

Sometimes BIG opportunities

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

15.7 21.04% 24.68%

14.5 69.57% 60.55%

Some data leads to important questions

Publisher is doing a nice job of finding our Target.

Did we ask for Frequency capping with them?

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

15.7 21.04% 24.68%

14.5 69.57% 60.55%

2.9 80.80% 80.48%

Incredible targeting results from a high reach portal

Opportunity to shift $ here to reach more of our target, at an increased

frequency

And some data reveals Potential

Where We Are Going – Our Vision

Online Audience Delivery Insights

Advertising Effectiveness Insights

Cost per Effective Audience Impression

Near-Time Decisions and Optimizations

We have begun to build the foundation of our Digital Measurement needs. We now want to move toward our vision of enabling near real-time decision making and optimization based on knowledge and insights of what is working.

2011 2012

Cross-Media measurement and

optimization?

2013

$0.00 $3.00 $6.00 $9.00 $12.000.0%

20.0%

40.0%

60.0%

80.0%

Efficiency/Effectiveness Publisher Overview

CPM

% o

f Tar

get

04/07/2023

Where We Are Going – Enhanced Planning

•Improved DSP / Portal / Publisher evaluation based on historical performance•Dig in deeper with Top Performers! – improve or eliminate buys far outside our KPIs•Next step is to layer in Advertising Effectiveness

The

Sweet

Spot

Where We Are Going – Informed Buying (Driving Partner Accountability and Return of Value on Our Investments!)

Conversations previously NOT had with “Partner A”: “in compliance with our 2011 RFP, we would like to work with you to create makegoods for the following campaigns:•Special K Evening Snacking Q2/Q3 •Frosted Mini-Wheats•Special K Fall Challenge •Crunchy Nut”

Conversations needed with Partner X:•What targeting approaches were used against Fiber Plus and Special K but not applied to Nutri-Grain?

Publisher Performance Across Three Similar Campaigns

Yahoo! Target

Average of Impressions - % on Target CPM

Sum of Impressions -

Total

Fiber Plus OLM Q3 F25-54 79.00%  $3.44 20,284

Nutri-Grain OLM Q3 F25-54 w-kids 24.80%  $3.83 14,208

Special K OLM F25-54 51.10%  $4.92 26,340

Partner X

Where We Are Going – In-Market Optimization Based on Cost and EffectivenessCombining Insights with costs to answer: HOW CAN I GET THE BIGGEST BANG FOR MY BUCK?

At a campaign level we need to drive optimization

decisions in near real-time

1

2

3

Avg. Frequency

Impressions in Target CPM

3.0

3.5 24.5% $2.44

8.4

16.9% $9.08

23.5% $8.62$•Opportunity to optimize - $ follow performance•Multiple publishers, each with high reach potential•Wide variance in performance observed real-time

Lift in Awareness

5.74

0.55

0

Brand X

Q3/Q4

Media Partner

Impressions in View

83%

91%

71%

What it Means – For Media and Measurement Partners

Media Partners Measurement Providers

Performance and results are the key to increased investments – help us get

more!

Market Mix Models will reflect the quality of what goes into them.

Need continued research and analysis of which metrics matter!

Rigorous and diligent pursuit of Research Quality

Final Lesson From Moneyball

Don’t just win

CHANGE THE GAME

THANK YOU

Playing “Moneyball” with Digital MediaReal Time Optimization Based on Metrics That Matter

Aaron Fetters – The Kellogg Company

Budweiser Tackles a New Approach to Content"

It’s about getting the MOST out of the $ you have– We aren’t all the New York

Yankees (or Chelsea Football Club)

Don’t buy players, buy wins

Identify stats indicative of GAMES WON, vs. stats that are easy to count– On-base % vs. HR, RBI, etc.– Wins Above Replacement

Lessons From Moneyball

Digital Measurement – From a Brand’s Perspective• Kellogg Company Background

• Where We’ve Been– Challenges in Digital Measurement

• Where We Are– Establishing Goals and KPIs– What Have We Learned

• Where We Are Going– Enhanced Planning– Informed Buying– Near-time Optimization

• What it Means for Media and Measurement Partners

Agenda

Manufacturer and Marketer of some of America’s favorite food brands

• Attracting more of our consumers’ media time

• Attracting more of our Brands’ media $$$

• But filled with endless options – our Brands are looking for guidance

At Kellogg, Digital Marketing has Momentum

Where We’ve Been – Challenges in Digital Measurement

Though broad, historical efforts to track and measure digital have been disjointed

In the past 6 months we have focused on the

opportunities to:

1. Define a common set of Goals for Digital Media

2. Establish the KPIs (metrics) that REALLY matter to track against our Goals

3. Develop and communicate a Digital Measurement Framework, along with Principles for how we will track Digital and capture KPI results

Where We Are – The KPI Framework (which statistics really lead to Wins?)Establishing a model for Media Effectiveness – applied initially to Online Media

• Branded Recognition • Brand Buy Next

PRE-MARKET QUALITYDoes my creative have the right

to succeed?

• % Impressions to Target• Frequency of Exposure• % Impressions in View• CPM

AUDIENCE DELIVERYDid we efficiently reach our

Target?

• Brand Awareness• Purchase Interest• Message Association• Direct Response

IN-MARKET EFFECTIVENESS

Are we moving the needle?

Where We Are - What Have We Learned?

“oh my gosh you are the best ever - totally re-worked my plan just now.

 thank you so much!!!!!!!!!!!!!!!!!

!!!”

Campaign targeted to a Hispanic audience

One publisher delivering only 1.2% of our Impressions to the demographic

Target audience (that’s a 98.8% waste folks)

However, another publisher had a Targeting Efficiency of 5.1 – meaning their Targeting ability allowed us to

reach our Target 5X better than if we bought Run Of Network

What Else Have We Seen?

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

Let’s take a look at a few of our biggest campaigns from 2011

(Data provided is at an individual publisher, individual campaign level)

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%These publishers

effectively delivered to our target and efficiently balanced the exposures

There have been some clear top performances

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

Conversely, this execution is generating a great deal

of reach, but 75% is to someone other than our

Target audience

There are some clear opportunities

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

15.7 21.04% 24.68%

And in this case Impressions are virtually

being thrown away as the wrong audience is

reached over and over again

Sometimes BIG opportunities

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

15.7 21.04% 24.68%

14.5 69.57% 60.55%

Some data leads to important questions

Publisher is doing a nice job of finding our Target.

Did we ask for Frequency capping with them?

Average Frequency Impressions Unique Viewers

Total Campaign % on Target % on Target

6 71.79% 61.26%

4.6 61.55% 38.67%

2.5 25.55% 27.52%

15.7 21.04% 24.68%

14.5 69.57% 60.55%

2.9 80.80% 80.48%

Incredible targeting results from a high reach portal

Opportunity to shift $ here to reach more of our target, at an increased

frequency

And some data reveals Potential

Where We Are Going – Our Vision

Online Audience Delivery Insights

Advertising Effectiveness Insights

Cost per Effective Audience Impression

Near-Time Decisions and Optimizations

We have begun to build the foundation of our Digital Measurement needs. We now want to move toward our vision of enabling near real-time decision making and optimization based on knowledge and insights of what is working.

2011 2012

Cross-Media measurement and

optimization?

2013

$0.00 $3.00 $6.00 $9.00 $12.000.0%

20.0%

40.0%

60.0%

80.0%

Efficiency/Effectiveness Publisher Overview

CPM

% o

f Tar

get

04/07/2023

Where We Are Going – Enhanced Planning

•Improved DSP / Portal / Publisher evaluation based on historical performance•Dig in deeper with Top Performers! – improve or eliminate buys far outside our KPIs•Next step is to layer in Advertising Effectiveness

The

Sweet

Spot

Where We Are Going – Informed Buying (Driving Partner Accountability and Return of Value on Our Investments!)

Conversations previously NOT had with “Partner A”: “in compliance with our 2011 RFP, we would like to work with you to create makegoods for the following campaigns:•Special K Evening Snacking Q2/Q3 •Frosted Mini-Wheats•Special K Fall Challenge •Crunchy Nut”

Conversations needed with Partner X:•What targeting approaches were used against Fiber Plus and Special K but not applied to Nutri-Grain?

Publisher Performance Across Three Similar Campaigns

Yahoo! Target

Average of Impressions - % on Target CPM

Sum of Impressions -

Total

Fiber Plus OLM Q3 F25-54 79.00%  $3.44 20,284

Nutri-Grain OLM Q3 F25-54 w-kids 24.80%  $3.83 14,208

Special K OLM F25-54 51.10%  $4.92 26,340

Partner X

Where We Are Going – In-Market Optimization Based on Cost and EffectivenessCombining Insights with costs to answer: HOW CAN I GET THE BIGGEST BANG FOR MY BUCK?

At a campaign level we need to drive optimization

decisions in near real-time

1

2

3

Avg. Frequency

Impressions in Target CPM

3.0

3.5 24.5% $2.44

8.4

16.9% $9.08

23.5% $8.62$•Opportunity to optimize - $ follow performance•Multiple publishers, each with high reach potential•Wide variance in performance observed real-time

Lift in Awareness

5.74

0.55

0

Brand X

Q3/Q4

Media Partner

Impressions in View

83%

91%

71%

What it Means – For Media and Measurement Partners

Media Partners Measurement Providers

Performance and results are the key to increased investments – help us get

more!

Market Mix Models will reflect the quality of what goes into them.

Need continued research and analysis of which metrics matter!

Rigorous and diligent pursuit of Research Quality

Final Lesson From Moneyball

Don’t just win

CHANGE THE GAME

THANK YOU