The Proof The business case for newspaper advertising as part of the media mix

2

National newspapers played a distinct and cost-effective role in NESCAFÉ’s successful multimedia campaign, demonstrating specific strengths in driving sales and building both purchase intent and emotional involvement brand metrics: Why newspapers for NESCAFÉ? Both the heaviest commercial TV viewers and frequent newspaper readers spend heavily on instant coffee – making the two media ideal and complementary partners for advertising. Frequent newspaper readers are the heaviest category buyers, spending £28.59 per household in 2009. Newspapers – the most cost-effective medium to drive brand measures •  Newspapers delivered the highest overall return on

investment for NESCAFÉ, with TV second •  Newspapers were the most efficient medium for driving

brand consideration •  Newspapers were twice as efficient as TV in creating

emotional brand involvement •  TV and newspapers worked in complementary ways to

build brand image.

NESCAFÉ Headline results

sales uplift

Newspapers drive 2.6% sales increase Rising to 7.5% sales uplift among those exposed to 5 newspaper ads. Newspapers enhance TV ad performance The NESCAFÉ TV ad worked harder and was more engaging if seen alongside the newspaper campaign.

Expenditure on instant coffee £ per household 2009

TV viewers and national newspaper readers spend heavily on instant coffee

Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Heaviest third of TV is 29% of TV

£25.75 £28.22 £28.59

£27.27

Total market Heaviest 3rd TV viewers

Frequent newspaper readers

Frequent magazine readers

Expenditure on NESCAFÉ £ per household 2009

Readers of mid-market and popular newspapers are the heaviest spenders on NESCAFÉ

Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV

£13.08

£15.21 £15.05

£12.91

£16.32 £15.87

Total market Heaviest 3rd TV viewers

Frequent newspaper

readers

Frequent quality NPs

Frequent mid-market

NPs

Frequent popular NPs

Expenditure on NESCAFÉ GOLD BLEND £ per household 2009

Mid-market & Quality newspaper readers spend most on NESCAFÉ GOLD BLEND®

Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV

£3.59 £3.84

£4.36 £4.35 £4.79

£4.09

Total market Heaviest 3rd TV viewers

Frequent newspaper

readers

Frequent quality NPs

Frequent mid-market

NPs

Frequent popular NPs

10

15 14 14

8

39

Zero OTS 1-2 OTS 3-4 OTS 5-7 OTS 8-9 OTS 10+ OTS

Frequency distribution for NESCAFÉ TV campaign

National newspapers A perfect partner to TV

Source: BARB analysis of NESCAFÉ TV campaign – Adults

Low weights of TV exposure are

less effective The optimum OTS

High weights of TV exposure suffer diminishing returns

NESCAFÉ TV campaign Analysis of heavy TV viewers by social grade %

Heavy TV viewers more DE than brand profile

Source: BARB analysis of NESCAFÉ TV campaign – Adults/TGI 2009 Q3 NESCAFÉ Instant Coffee Adult user profile

AB

C1

C2

DE

41 23

21

22

24

29

14 26

Heavy TV viewers social class NESCAFÉ Instant Coffee TGI profile

124 117

186

108

142

Men 16-24 AB C1 London

TV: Profile % 43 10 15 26 16

NPs: Profile % 53 12 28 28 23

Newspaper audience delivery indexed against commercial TV

Newspapers’ audience profile complements TV with a profile that is relatively young, ABC1 and London

Source : BARB Jul – Dec 2009 / NRS Jul – Dec 2009

To quantify the effects of individual communications channels in a multi-media campaign for the NESCAFÉ brand. To establish the efficiency of each medium in building brand measures – what is the return on investment? To measure the sales impact of adding newspapers to the mix. To understand the synergistic effect of TV and newspaper ads working together.

Test Objectives

Aug 09 Sep 09 Oct 09 Nov09 Dec 09 £m

Media Target

Audience: 18-65 hot beverage drinkers

TV 3.2

Newspapers 0.9

Outdoor 0.7

Online 0.3

Research Dates

Millward Brown

CrossMedia™

Tracking

10

NESCAFÉ: Test detail

Media Plan

1004 TVRs

Pre

Campaign objective Relaunch the NESCAFÉ brand

418 GRPs

Pre Post

NESCAFÉ: The creative work

Newspaper creative

NESCAFÉ: The creative work

Newspaper creative

NESCAFÉ: The creative work

Outdoor creative TV newspaper creative Online creative

The findings

14

NESCAFÉ

Newspaper advertising effect on NESCAFÉ sales % increase

Immediate 2.6% sales uplift from newspapers

Source: dunnhumby

2.6

During campaign

Newspaper advertising effect on NESCAFÉ sales at different OTS % increase

Newspapers drive 7.5% sales increase at 5 OTS

Source: dunnhumby

1.7

2.6

4.5 4.9

7.5

1 OTS 2 OTS 3 OTS 4 OTS 5 OTS

Newspaper advertising effect on NESCAFÉ trial % increase

Newspaper campaign encourages trial

Source: dunnhumby

2.6

NP during and 12 weeks post campaign

Newspaper advertising effect on NESCAFÉ penetration % increase

Newspapers drive penetration

Source: dunnhumby

2.7

2.0

NP during NP post

Tesco Clubcard lifestyle profile Newspaper buyers who bought NESCAFÉ indexed against average Tesco Clubcard user profile

Newspaper readers less price sensitive

Source: dunnhumby

78

124

Convenience 100

Price sensitive

41 23

21

22

24

29

14 26

% of uplift % of cost

Contribution to overall uplift in NESCAFÉ brand measures versus cost of media %

Both Newspapers and TV punch above their weight

Source: Millward Brown CrossMedia™ modelling

Total uplift in brand measures

driven by media activity

5% uplift Online

Outdoor

Newspapers

TV

Overall uplift across brand measures per £1m invested %

Newspapers deliver the highest return on investment

1.2 1.1

0.2

0.4

Newspapers TV Outdoor Online

Cost of 1% uplift across NESCAFÉ brand measures £m

Newspapers most cost-efficient for building brand health

0.86 0.94

6.36

2.56

Newspapers TV Outdoor Online

Uplift in brand involvement per £1m invested Someone I’d like %

Newspapers twice as efficient as TV at creating emotional brand involvement

2.2

0.9

Newspapers TV

Uplift in brand commitment per £1m invested Likelihood to choose %

Newspapers most cost-effective at driving consideration

1.8

1.0

0.2

Newspapers TV Outdoor

Brand image uplift % endorsing NESCAFÉ

TV & Newspapers strengthen brand image

+3.2

+4.0

+4.0

+4.1

+4.2

+5.6

+7.3

+8.0

Fame

Everyday

Appeal

Quality

Premium

Stature

Sociability

Taste

Uplift in brand image per £1m invested % endorsing NESCAFÉ

Multimedia campaign strengthens brand image

0.8

1.0

0.2

0.5

Newspapers TV Outdoor Online

Recognition – Newspaper ads % recognising

Strong creative impact leads to good recognition

33

20

NESCAFÉ Millward Brown print norm (326 ads)

Newspaper ads % agreeing

Strong impact and branding ensures engagement

54

63

47

73

92

68

I'd stop and look rather than turn the page

Very eye-catching

Definitely remember ad was for NESCAFÉ

NESCAFÉ Millward Brown Norm

Distinctive

Interesting

Soothing

Pleasant

Gentle

Weak

Dull

Boring

Irritating

Unpleasant

Disturbing

Involving Norm: 61 NP ads

Recognise NP

(Each axis 0-80%)

Newspaper involvement diagnostics

Newspaper ads engage very strongly

Adding newspapers enhances TV performance

Response to TV ads % agreeing

42

51

51

50

56

43

+16

+24

+25

+17

+17

+17

Made me more likely to buy NESCAFÉ

Made brand more appealing

Points made were believable

Points made were relevant

Contained different information

Contained new information

45

48

68

59

43

52

TV solus Added effect of NP Millward Brown norm

Distinctive

Interesting

Soothing

Pleasant

Gentle

Weak

Dull

Boring

Irritating

Unpleasant

Disturbing

Involving Norm: 698 TV ads

Recognise TV solus

(Each axis 0-80%)

Recognise TV + NP

TV involvement diagnostics

TV ad more engaging when seen alongside newspapers

Advertising measures – Re-appraisal Surprising and gets me to think differently Top 2 Box %

Adding newspapers builds re-appraisal

49

66

77

TV solus TV + 1 newspaper ad TV +4/5 newspaper ads Recognise:

Advertising measures – Brand values Helps me connect and identify more strongly Top 2 Box %

TV plus newspapers boosts emotional impact

50

69

77

TV solus TV + 2/3 newspaper ads TV +4/5 newspaper ads Recognise:

Advertising measures – Depth of information Gives me enough information to decide Top 2 Box %

Depth of information builds across campaign

53 60

71 79

TV solus TV + 1 newspaper ad

TV + 2/3 newspaper ads

TV +4/5 newspaper ads

Recognise:

Advertising measures – Call to action Gives me a reason to go out and buy Top 2 Box %

TV + newspapers partnership drives powerful call to action

46

63

73

TV solus TV + 2/3 newspaper ads TV +4/5 newspaper ads Recognise: