The Value of AdvertisingAPAN Conference 12 November 2009

WFA: The voice of advertisers worldwide

90% of global ad spend

The advertising community believes in advertising

Not everyone feels the same

"I trust..."

0

10

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frien

ds &

family

ads i

n ne

wspap

ers

ads o

n TV

ads o

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io

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n mag

azine

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web b

anne

r ads

ads o

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"Companies tell the truth in ads"

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

Disagree Agree

Source: Yankelovich Marketing Resistance Survey, 2004

Source: Forrester Research Inc. 2006

If advertising were a brand, it would be in trouble…

Source: Nielsen Buzz Metrics Oct 2007. Brand association map

...it is.

“By 2010, we estimate, television advertising could be only 35% as effective as it was in 1990”The McKinsey Quarterly

Source: CBS Outdoor

…Really?

“Advertising contributes to growth of the economy”

Note: excludes those who responded ‘don’t have an opinion’Source: Nielsen Online Global Online Survey 2009: Base: 25,420 across 50 countries

72%

78%

60%

80%

20%16%

28%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Global APAC Western Europe Portugal

AgreeDisagree

“… advertising creates jobs”

80%83%

67%

82%

14% 12%

22%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Global APAC Western Europe Portugal

AgreeDisagree

Note: excludes those who responded ‘don’t have an opinion’Source: Nielsen Online Global Online Survey 2009: Base: 25,420 across 50 countries

“… advertising reduces prices”

68%71%

59%

78%

27% 25%

34%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Global APAC Western Europe Portugal

AgreeDisagree

Note: excludes those who responded ‘don’t have an opinion’Source: Nielsen Online Global Online Survey 2009: Base: 25,420 across 50 countries

But on a more personal level…“…advertising is entertaining”

66%

76%

48%

69%

29%

20%

46%

29%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Global Asia-Pacific Western Europe Portugal

Agree

Disagree

Note: excludes those who responded ‘don’t have an opinion’Source: Nielsen Online Global Online Survey 2009: Base: 25,420 across 50 countries

“Can’t someone else do it?”(Homer Simpson, Trash of the Titans, 1998)

• Nobody is going to get the message out there for us…

• But the industry has made a start in defining the most important benefits of advertising

For more information visit www.wfanet.org/valueofadvertising

Thank you