1. Digital Inspiration
June 15, 2011
Gunter Blanckaert
Trade Marketing Lead
guntbl@microsoft.com
Twitter: @guntbl | @MSAdvertisingBE
WL Messenger: gunterblanckaert@hotmail.com
Skype  gunter.blanckaert

2. Agenda
Introduction
6 Online Trends
Always connected
Everybody’s gaming
The rise of online video
Internet use is highly planned
Internet changed consumer behaviour
Creativity and innovation are key

3. SOFT WARE MEDIA MARKETER

4. MSA Solutions Framework
With Microsoft Advertising, advertisers can benefit fully from a complete
solutions portfolio covering all their advertising needs…
Solutions whatever the objective:
01 02
BRANDING - BUY ON A PERFORMANCE -
PRODUCT /SITE BASIS TACTICAL /
PROMOTIONAL
Branded Content Microsoft &
Creative, Integrated Extended Network
& Impactful Formats CPC & CPA
TARGET YOUR AUDIENCE
Profile | Re-messaging | Category | E-mail
…helping them navigate the complex media and digital landscape

5. The Situation
01 Lifestyles are evolving
and becoming more
and more digital
02 Regardless of where
and when, we can
always be connected
03 PCs, Mobile Phones and
TVs are
becoming one of the same
04 There are now generations
that didn’t know life before
the internet

6. Kids Today: class of 2011
Are the Heaviest Mobile Video Viewers
Are More Receptive to Mobile Advertising than their Elders
Out-Text All Other Age Groups
Talk Less on the Phone
Watch Less TV than the General Population

7. Pace of Change
The Amount of time to get to 1 million users
730 days
365 days
365 days
74 days
28 days
10 days

8. Where’s your audience?
Users are completely in control
They can jump from one experience to another – instantly
Technology is changing so fast, more channels are appearing everyday

9. Mobile:
Always
connected

10. Mobility is on the Rise
59%
Of Europeans have
access to the internet
wirelessly
71m
Access the web via their
mobile phone on a
weekly basis

11. Mobility is on the Rise
14%
Of Europeans do not have
a landline phone, only a
mobile
2x
Watching video, film & TV
clips on a mobile have
doubled YOY

12. Smartphone market grows
rapidly - 80% YOY

13. Time distribution by device

14. When do you use your
smartphone

15. What do you use your mobile
20%
for?
15%
10% Communication
5%
Information
0%
6am-9am 9am- 12pm- 2pm-4pm 4pm-6pm 6pm-8pm 8pm- 10pm- 12am-
12pm 2pm 10pm 12am 6am
Information Entertainment Creation Transaction Surfing Communication
Among Smartphone/Tablet owners : Activities on Handhelds

16. Internet use on a mobile
Share of Sessions by Device by Motive
Smartphone/Tablet
Motivations PC, laptop or netbook
device
Communication 57% 53%
Information 43% 36%
Surfing 15% 12%
Entertainment 31% 16%
Transaction 15% 7%
Creation 13% 14%
Total
motivations 1.74 1.38
per occasion
Totals add to more than 100% because multiple motives possible per session

17. How fast is mobile internet
growing?

18. Today in Japan…

19. What is the state of social &
mobile marketing?

20. How are coupons used
on mobile devices?

21. Offering targetable,
premium content

22. Mobile rich media
Engage your audience
• Microsoft Mobile delivers rich
media with premium content
• Available across MSN, Hotmail and
Messenger (iPhone and iTouch)
• Expands from standard 300x50 to
300x300 with the tap of your finger
• Allows for multiple panels
Ad Functionality Targeting
• In-unit video • Device
• Click-to-map • Carrier
• Click-to-call • Demo
• Send to friend

23. Everybody
is gaming

24. A Gaming Culture
31%
European active gamers
aged 16-49
72%
Online Europeans
play video games

25. It All Started with Gaming
Call of Duty 2: Modern Warfare Avatar
1st Day Sales Opening Day Ticket Sales
(11/10/2009): (12/18/2009):
$310M1 $270M

26. Gamification
“The integration of the mechanics
that make games fun and
absorbing into non-game platforms
and experiences
in order to improve engagement
and participation.”

27. Social Gaming
“social games have become the modern “Calgon Moment”
for busy women who often feel life spiraling
out of control around them.”

28. Console Usage
Males 15-34 yrs average 12
Console usage is similar
hours per week gaming &
To TV usage
increasing
Europe: Time Spent Gaming per Week
Avg. hours gaming per Week

29. Engagement
Gaming offers a dedicated audience
Additional Activities
People Engage in While…
20
18
15
14
12 12
7
6
2 2
Playing Video Games Watching TV Using the Internet
Watched TV Text Messaged Cell Phone Call Surfed the Web

30. Xbox LIVE : Momentum
Insert Momentum video

31. Xbox LIVE: A new vision of
entertainment
$billion franchises
outselling film
industry
GAMES MUSIC
CINEMA
SOCIAL
& TV
200m avatar
1 billion hours per
wardrobe
month on XBL – 30
changes in first
hours per
12 months
month/user average

32. Proven Results:
3%

33. Proven Results:
How do Xbox LIVE campaigns impact a Brand?

34. Examples: Static Banner to Full
Screen HD Video

35. Examples: Video Banner to
Full Screen HD Video

36. The rise of
Online Video

37. Media Consumption
134
Hours
Monthly media
consumption
55% 200%
Media exposure
Of Europeans’ TV consumption (18-24 age group
is time-shifted or on-demand TV compared to 54+)

38. Online Viewing Growth ≠
Online Video Ad Spend
More U.S. viewers watch web video than watch recorded TV on
DVRs (and often skip the ads), according to Nielsen Online.
Still, the economic potential of web video remains mostly
unrealized.
A major stumbling block for web video is the inability of the
biggest TV advertisers to make a direct comparison between the
effectiveness of TV and the effectiveness of an equivalent buy
online
Source: AdvertisingAge: THE ECONOMICS OF ONLINE VIDEO (Jan. 18, 2010)
.

39. Online vs./& TV
Repurposed TV
Online Online Video & vs. Original
Video vs. TV TV Together Online Ads
Online video A campaign Overall,
performed combining repurposed TV
better than TV online video ads are at least
across every and TV ads as effective as
brand metric improved recall original online
and for every and likeability video ads
vertical for all verticals
Source: Nielsen IAG, A18-49, Premium Online Video Measurement 2008-09, includes individuals only exposed to
brand/product on one platform (in prior 15 days). Television norms inclusive of Primetime programming only and
based on survey responses during same time period as Premium Online Video survey responses. TV norms are based
on all ads for those Brand/Products which ran on both Premium Online Video & TV during time period; specific
creative executions may vary.

40. TV Ads Are Significantly More Effective Among Viewers
Who Were Previously Exposed to the Brand’s In-stream Ads
Message Recall Exhibited the Greatest Lift Among the
Dual-platform Exposed Group
60
52 +18% TV + Premium Online Video TV Only
50
44
40
35 +35%
+53%
29
30
26 +31%
19
20 17
13
10
0
TV Ad General Recall TV Ad Brand Recall TV Ad Message Recall TV Ad Likeability
Source: Nielsen IAG, A18-49, Premium Online Video Measurement 2008-09, includes individuals only exposed to
brand/product on one platform (in prior 15 days). Television norms inclusive of Primetime programming only and
based on survey responses during same time period as Premium Online Video survey responses. TV norms are based
on all ads for those Brand/Products which ran on both Premium Online Video & TV during time period; specific
creative executions may vary.

41. Study: Online Video Ads Beat TV Ads In
Viewer Recall

42. Video in Display Advertising

43. Video
in Messenger

44. Rise of the
Multi-Screen Consumer
19m 2x
European Doubled
Multi- in the last
Screen two years
Consumers

45. Rise of the
Multi-Screen Consumer
66%
multi-task once a week
40% 56%
Multi-task most Multi-task several times
days or evenings a week

46. Media Consumption
46
HOURS
66%
Have a game
On media & entertainment console at home
devices a week

47. What are they doing whilst
watching TV?

48. Multiple screens
are better than one
Saw ad on 1 channel only … on 2 channels ... on 3 channels
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Took any action Plan on seeing Plan on seeing
post-ad exposure the movie Avatar opening weekend

49. Multiple screens
are better than one

50. Living with
The Internet:
A global study of what’s
driving web behavior

51. Established six basic motivations
driving Web behavior
• To find out (more) about a specific topic or news story
Information • To find out (more) about a specific product or service (eg. Train times)
• Keeping up to date with the news or a hobby
• Entering into a discussion forum, online community or social network to
communicate with others
Communication • Picking up/sending emails
• Chatting on IM
• Chatting on VOIP eg. Phone calls over the internet via broadband
• Updating website, blog or social network profile page (i.e. Twitter or
Facebook)
Creation • Upload video
• Upload photos
• Paying bills or checking out online bank account
• Ordering / purchasing groceries
Transaction • Ordering / purchasing something (not everyday groceries)
• To go to an auction site (eg e-Bay)
• To watch video clips, TV shows online (both short and long form)
• To download video clips, TV shows (both short and long form)
Entertainment • To listen to music online
• To download music
• To play games/gaming
Surfing • Just browsing/surfing (for nothing in particular)

52. Internet use is highly planned
Ten-country average
21%
Spontaneous
79% Planned
79% of activity carried out 21% of activity carried
WAS planned in advance out WAS NOT planned
in advance

53. Which makes the internet ‘routine’
more important than ever
Intimate Zones Public Zones
Start of the Social Blogs, forums, RSS
and spaces Emails
Google news, BBC etc.
Networks
journey News
updates
Check for Log into any forums or
Log in and reply to any
messages and blogs to get updated
messages
respond Entertainment YouTube
etc.
Throughout the journey, Instant Messenger is
always on as is music (iTunes/YouTube)
Online
Shopping/Banking
Information
Amazon, eBay etc.
Emails search
Blogs, forums, RSS
Google, Wikipedia
End of the Social
Networks
and spaces
Check emails
etc.
journey Final check of Final check of
again
social network forums or blogs
From intimate ⇒ public and back again
NB: From other research we know that an average of six websites are visited on a regular basis

54. Despite reports, email is still top activity
Share of Activity within All Web Behavior across Ten Countries
Email 23%
Surfing 10%
Seeking info on a topic or news story 9%
Keeping up to date with news or hobby 8%
Played online games 7%
IM 6%
Online forums or community 6%
Update blog, profile or personal webpage 4%
Finding out about a specific product 4%
Pay bills/online banking 3%
Watch shortform video 3%
Upload photos/video 2%
Download music/video 2%
Online auction 2%
0% 5% 10% 15% 20% 25%
Note: Based on completed diaries; all devices and locations

55. What drives people to go online:
All time periods
About half of web use is planned; about a third is random
What Drives Users to go Online
58%
50%
Always use at this time 43%
46%
13%
12%
Prompted by conversation or event 16% Russia
12%
Spain
3% UK
4%
Prompted by offline media 3% France
4%
26%
34%
No reason 38%
39%
0% 10% 20% 30% 40% 50% 60% 70%
59

56. Online activity (Weekday)
Share of day by mode/day part
SPAIN
20% FRANCE
15%
10%
Communication
Communication
5%
Entertainment
Information Information
0%
20%
UK RUSSIA
15%
10% Communication
Surfing Communication
5%
Entertainment
0% Information Information
Information Entertainment Creation Information Entertainment Creation
Transaction Surfing Communication Transaction Surfing Communication
60

57. Online activity (Weekend)
Share of day by mode/day part
20%
SPAIN FRANCE
15%
10% Communication Communication
Surfing
Creation
5%
Entertainment Entertainment
Information
Information
0%
20%
UK RUSSIA
15%
10% Communication
Communication
Transaction Surfing
5%
Entertainment
Information Information
0%
Information Entertainment Creation
Information Entertainment Creation
Transaction Surfing Communication
Transaction Surfing Communication
61

58. Internet changed
consumer behaviour

59. Digital Media has Changed
Consumer Behavior
More Information
More complex decisions
More opportunities to influence
Greater expectations

60. Hierarchy of Shoppers’ New Behaviors
Source: New Shopper Journeys Europe 2010

61. Three core shopping journeys emerge
Home Clothes, Shoes Groceries & Fast Food
Electronics & Accessories Personal Care
6%
12% Research purchase
68% 21%
Longer path to purchase
Greater effort
52%
39% Habitual purchase
66%
Shorter path to purchase
Minor effort
40% 42%
14% Impulse purchase
Short path to purchase
18% 22% Little or no effort
"Thinking about the last time you bought, which statement best describes your actions?"
Source: New Shopper Journeys Europe 2010

62. • Purchase decisions are no longer linear, they’re more dynamic than ever

63. Touchpoints play an important role
in influencing the initial decision
SOMETHING
SOMETHING SEEN OR
SEEN WHEN READ
SHOPPING
25%
33% 33% 32%
38%
• 12% online
• 13% internet • 12% brochure
• 10% expert
• 13% TV • 26% friends/ • 9% email
reviews online
• 9% magazines • 14% promotion colleagues • 7% coupons
• 7% newspapers
Source: New Shopper Journeys Europe 2010

64. Purchases are widely discussed across
categories
57%
44%
37% 37%
QD4a After you made the purchase did you do any of the following?
SOURCE: New Shopper Journeys Europe 2010

65. But actual posting on Social Networks
or micro-blogs still low
UK France Italy Germany Spain
Grocery 1% 0% 2% 0% 1%
Fast Food 1% 1% 4% 1% 1%
Home
Electronics 3% 2% 3% 0% 3%
Clothing, Shoes
& Accessories 2% 2% 2% 0% 2%
QD4a After you made the purchase did you do any of the following?
Source: New Shopper Journeys Europe 2010

66. Creativity and
Innovation
Are key

67. Creativity through Rich Media
Downloads
Shopping PDF, Video, Reminders
Coupon, Printing, Music,
Calendar, SMS,
Secure Wallpaper
E-mail, Social
Transaction, Bookmarking
Conversions
Relevance Video
Zip Code, Ad- High-definition, Full-
Sequencing, Geo- screen, Customisable &
Targeting, Re- skinnable controls,
Streaming / progressive
targeting
Capabilities
3D Data
Out-of-banner & Upload, Polling,
In-banner, CGI Zip Code, …
Viral Web Services
Email, Widget, RSS Feeds,
Skinning /
SMS, IM, Social Data Capture
Wallpapers
Bookmarking
Static, Toggle,
Animation, Rotation,
User-Initiation

68. Branding. Creativity.

69. Branding. Creativity.

70. Branding. Creativity.

71. Branding. Creativity.

72. Branding. Creativity.

73. Branding. Creativity.

74. Hotmail. Expanding Header

76. The IAB Filmstrip

78. IAB Sidekick

79. Coming Soon: Sliver

80. Coming Soon: Page Reveal

81. Questions?
guntbl@microsoft.com
@guntbl
@MSAdvertisingBE