DEPLOY 2015

2015 TRENDS & STRATEGIC IMPERATIVES FOR BRANDS

Media Perspectives Presentation to esteemed Clients - 5th January, 2015

Sources: AMPS 2014, Nigeria Bureau of Statistics, World Facts Book, Tradingeconomics.com, Naij.com, World Bank Indexmundi.com & TNS

KEY INSIGHT & IMPLICATIONS:

Proliferation Of Niche Channels With Competitive Content

Paradigm Shift In Media Planning Convergence & Integration – way to go

1. Genre specialization per channel2. Channels can run on multiple

signal carriers3. Brands can target consumers

better & drive positive brand association

4. Access to regional pseudo- networks with relevant content

1.Planning to be based on content & not stations2.Consumers have open-ended options3.Quality content will be in hot demand

Digitalization

of TV1. Three Signal Distributors one of which is to evolve from NTA will serve as platforms to host

multiple channels covering national/regional markets 2. The transmission standard shall be the DVB-T2 format with MPEG-4 AVC compression format3. Pursuing the ITU switch over deadline of June 17th, 2015

STRATEGIC IMPERATIVES FOR BRANDS:

Digitalization

1 Take Best Mover advantage and lock down key Niche channels that address our market segments

• Exclusive partnership with key channels based on segmentation

• Drive brand association & positioning

2Create/Partner with existing branded content that is scalable across touch-points

• Must resonate from the CEP • Emanate from the Brand essence TG passion-points

Develop distinct regional strategies leveraging the pseudo - networks3

Drive integration & Social Currency4• Demand 360 communication planning approach as

against linear media silo approach from media agencies

ACTION POINT:Drive Content & Context Scalabilityof TV


High Demand On Media Inventory Harsh Media Payment Regime Non- Compliance Cases On The Rise

1. Politicians buy up media space for their campaigns2. Leading to aggressive SOV & media clutter3. This could lead to higher media rates4. Brands may lose existing primetime

to tactical buys from politicians

1. Cash & Carry policy from media suppliers2. No or less discounts 3. Multiple sales of media airtime & space

ElectionYear

1. Increase rate of program displacement on both

national & regional levels2. Outright non compliance or unscheduled

extra3. Yanking programs off-air without pre notice4. Non adherence to fixed time buys by

stations

1. Elections & related activities will hold from January to mid April 2015 2. Media is critical to connecting & communicating with electorates in different levels of society 3. This will have direct impact on Q1 media landscape for businesses & brands


ACTION POINT:Develop a localized & Effective Execution Roadmap

1Maintain Pulse Flighting in Q1’15 & Accelerate to Burst Levels afterwards

• Avoid head-on collision with election media buzz• Leverage opportunistic buys during elections for impact• Reserve budget for key brand initiatives after elections

2Pre-book all Q1 Media placement in Q4’14

• Conclude all key media placements in Q1’15

• Agency to issue MPOs to key suppliers where necessary after client approval

Secure/Guarantee all Discounts with Default Penalties

3• Media Agency must guarantee all discounts

to clients• Ensure strict adherence to all agreement &

penalties for all defaults

Drive Media Integration & Synergy for all Campaign4

• Media strategy must be through-the-line• Achieve execution excellence for all campaigns• Post campaign evaluation & re-application of

learning

ElectionYear


BRANDS CONSUMER THE MARKET

1. Low campaign effectiveness due to high media clutter from political campaigns & activities

2. Low Recall threshold for brands following compressed visibility

1. Loss of Top Of Mind Awareness and brand promise amongst consumers

2. Consumers to rely more on WOM & impulse purchase leading to low purchase ratio for

some brands

Pressure on TOMA & Recall

1. Increased political activities will lead to clutter and nuisance value 2 Message recall will be impeded due to excessive materials on air at same time

1. Consumers choices to be largely determined by advice from experts, loved ones & friends

2. Preponderance of cheap brands into the market by importers with less effort to convince the customers to buy


1 Deploy experiential marketing platforms to drive product trial & trigger purchase

• Create branded activations & experience centres amplified via ATL media• Leverage brand ambassadors for advocacy & loyalty

2Regional media strategy to strengthen presence and preference

• Partner with traditional leaders & regional champions to drive advocacy & influence factor in the regions

Seamless product availability and distribution channels to enhance effective speed to market objectives

3

Partner with OAPs to drive TOMA and connection amongst the TG4• Utilize the followership value of OAPs as a sales tool• Drive consumer engagement with relevant programs anchored by Popular OAP

ACTION POINT:Create Unit Customer Experience Centres Utilize Influencers As Awareness & Sales Tools

Pressure on TOMA & Recall


MEDIA CONSUMER COMPETITION

1. Likely cut in media budget across brands

2. Freezing budget at previous year mark

3. Media rate to remain constant or even higher in view of political campaign patronage

1. Low disposable income2. Consumer to become more discerning and price sensitive3. More cheaper options would be patronized4. Purchases to be restricted to core needs

Low Liquidity

Threshold

1. Decline in oil price fluctuating between $60-$75 with significant impact on revenue 2. Exchange rate 10% devaluation by CBN in Oct 20143. Risk of further devaluation in 2015 given the lower oil proceeds4. Higher interest rate on the back of recent CBN increase in inter-bank borrowing

1. Competitive activities to revolve around promotions to mop up scarce disposable income

2. More of functional campaigns rather than emotive campaigns

3. Price war & incentivised marketing


1 Long term deals through pre commitment to circumvent media rate inflation

• Collaborate with rated content owners for quarterly spots allocation and extra benefits • Utilize these platforms for quick to market

flexibility 2Co-create content with identified partners

• Partner with producers to co-create content and earn exclusivity benefits, right of first refusal and rebates

Own Sponsorship platforms to guarantee visibility and emotional connection with the TG3

Long term investment with estimated media budget4• Utilize yearly media budget allocation to negotiate with key suppliers • Enjoy better discounts, rebates and freebies from suppliers

Low Liquidity

Threshold

ACTION POINT:Optimal Visibility Via Cost Effective Media Buying & Long Term Negotiation Deals

RATIONALE (WHY):

O KEY INSIGHT & IMPLICATIONS

Online penetration/consumption spikes year on year

Google – Search/GDN -Search and GDN reinforce each other

Social –Integration and Engagement

1. Nigeria leads in Africa, with 54.8 Mn internet users and this puts internet penetration at 32%+

2. 63% of internet users in Nigeria go online daily

3. 54% of Nigerians access internet through mobile

4. 89% mobile penetration in Nigeria

1.High interest rate equates to high CTR2.103 search queries per second in Nigeria (Google Data)3.700+ Google Partners in Nigeria4.The Display Network reaches 83% of unique Internet users around the world

1. 24% of internet users in Nigeria are Brand fans on social network

2. Engagement platform that enables brands to connect with their consumers

3. Create an ongoing two-way dialogue with social community

nline On The Rise

1. Latest AMPS 2014 has shown 4% growth nationally against 2013 figures 2. Mobile is the key driver 3.Internet enabled smart phones are more affordable and accessible


1

2

3

44 GDN

1 Mobile

• More interactive and innovative• Target by device, operating system, location and

gender• In –App advertising

Search

• Have an “Always on Search Strategy”• Bid into relevant keywords that resonates

with product

3 Social

• Build engagement with TG around passion points• Generate conversation around products, day to day

updates & topical issues• Have contest activations as fans loves freebies

• Leverage Google display network to build reach and campaign visibility amongst TGs

ACTION POINT: Play to Win on Mobile, Search, GDN & Social Brands Must Accelerate their Digital Game

nline On The Rise O

KEY INSIGHT & IMPLICATION:

Growth Opportunity for Businesses/Brands

More Discerning & DemandingConsumer

Need to Offer multiple product portfolios & segmented marketing

1. Brands must position/leverage gains from this trend

2. Develop new competencies/SBUs to harness these opportunities eg. retail division/geo-marketing

YO

Y 1. Consumer profiling & understanding2. Proper interpretation & prediction of

consumer behavioural patterns & dynamics

3. Periodic media, consumer & market research & evaluation

4. Consumer feedback mechanism

1. Develop robust products that address consumer demands and resonate market realities

2. Insight & data based marketing communications aligned with TG segmentation

Growth of MC & Retail

1. The size & purchasing power of the Nigerian middle class spikes2. The informal sector is growing 3. The retail market is expanding as reflected in the spread of shopping malls/modern trade4. Urbanization rate increases annually as new cities/market surfaces


1Drive Innovation via R&D

• Constantly drive consumer & market innovation in product & communication

• Create trends don’t follow them

2Partner Best in Market Agencies

• Work with ONLY the best marketing agencies

• Transform them into your office expansions & partner in progress

• Co-create with your agencies

Set SMART KPIs3

Track, Evaluate and Apply Learning4• Periodic exercise involving all parties in a

transparent manner

ACTION POINT:Take First Mover & Best Mover Advantage in the Market

• Make it collaborative not dogmatic 360* Approach is preferable

Growth of MC & Retail

YO

Y

THANK YOU

Documents

DEPLOY 2015