Executive Summary

Sales correlation analysis for OTC J&J

January 2014

Google Confidential and Proprietary

Key Findings

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1

Digital media was particularly effective to optimize OTC J&J TV advertising reach

and frequency on the lighter TV viewers

2

Shift in penetration among those exposed to TV (5+OTS) + Digital was +52% vs.

the shift among those exposed to TV (5+OTS) only

3 Market share in value among those exposed to TV (5+OTS) + Digital was +57% vs.

the shift among those exposed to TV (5+OTS) only

!

This analysis under real environment conditions can not definitely attribute the

observed shifts to the presence of digital since other factors that could not be

controlled (price, promotions, ...) may have had an impact: this is a stop-gap

solution until more advanced methodologies (being developed in US and some EU

markets) are available in Spain.

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3

All TV, YouTube and “other digital” J&J OTC campaigns launched n H1 2013 were

measured for sales correlation analysis OTHER DIGITAL YOUTUBE

Scope of the analysis_ All H1 2013 J&J OTC TV+Digital campaigns were

measured for sales correlation analysis

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TOTAL J&J OTC campaigns measured for sales correlation analysis

PRODUCT TARGET

(onliners) ONLINE

PLANING GRPS TV IMPRESSIONS

Total TV reach

Total WEB reach

WEB incremental

reach

FRENADOL CX INDIVIDUALS

25 – 45 YOUTUBE

& “other digital” 3.208,90 54.449.861 96,4% 35,2% 0,7%

FRENADOL PS INDIVIDUALS

25- 54 YOUTUBE

& “other digital” 1.389,40 52.891.001 92,8% 32,6% 1,8%

FRENADOL JUNIOR

WOMEN 35 - 45

YOUTUBE & “other digital”

646,70 24.456.904 83,6% 16,5% 2,8%

FRENAGAR INDIVIDUALS

25-54 YOUTUBE

& “other digital” 1.294,9 35.362.309 92,3% 24,0% 1,6%

FRENASAL INDIVIDUALS

25-54 YOUTUBE

& “other digital” 1.053,90 44.587.894 90,8% 29,9% 2,6%

AVERAGE 1.518,7 42.349.594 91.2% 27.6% 1.9%

Scope of the analysis_ All H1 2013 J&J OTC TV+Digital campaigns were

measured for sales correlation analysis

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Methodology_ Analytical sequence for sales correlation analysis

Sales correlation analysis for J&J_ Kantar Worldpanel analytical process

TV (5+ OTS)+Digital Only TV (5+OTS)

1. Panels fusion to input TV exposure (KWP online panel of purchase is fused to Kantar Media TV currency panel to imput TV exposure)

TV exposure measured via fusion / Digital exposure measured via tagging

2 . Single source panel to look at purchase behaviour (KWP longitudinal households purchase panel of 8400 onliners)

PRE (September to

December)

DURING (January to

April)

Purchase behavior is measured at an individual level and for the same household (pre vs during)

Shift in sales KPI´s for “Only TV 5+OTS” group defined as

“control”

Shift in sales KPI´s for “TV+Digital” group indexed against “Only TV

5+OTS”

Sales correlation analysis was run on KWP purchase panel CPG purchase panel of 8.400 online households

PRE (September to

December)

DURING (January to

April)

Sales correlation analysis was run on effective period of purchase for the category (September to April

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How is individual purchase measured? • Kantar WorldPanel (KWP) operates a longitudinal households purchase panel where 8400 representative Spanish online panelists are reporting their

households purchases daily via product scanning (barcodes).

How is digital ad exposure measured? • The panelists connect weekly to the KWP online panel portal. During that connection KWP determines whether the panelist was exposed or not to

the tags previously inserted in the digital ads.

How is TV ad exposure measured? • Kantar Media (KM) panel is the Spanish currency measurement panel that provides TV exposure data at household level based on a household TV

meter. • KM panelists are fused with the KWP households to assign them the TV exposure data (to all TV content as well as to advertising). This is operated

via a fixed fusion 4 times per year. How is the baseline for the sales correlation analysis calculated? • The metric used to compare results among different exposed groups is the evolution (PRE vs DURING) for each of the sales KPI´s. And the 100 index

(or “baseline”) is the shift in penetration/share of value during the campaign period vs. the period prior to the campaign among those exposed to Only TV (5+OTS)

What are the analysis period for purchase behavior measurement? • Sales correlation analysis taking into account effective purchase period for the category (September to April). The analysis period were:

• PRE measurement: 4 months (from September to December 2012) • POST/ DURING measurement: 4 months (from January to April 2013)

What is the sample size? • A total of 5 campaigns were analyzed and accumulated to assure enough sample size to perform the sales correlation analysis (most campaigns

measured were too small to be individually analyzed) • Purchase behavior was analyzed at Total OTC J&J. Final sample size for each category purchasers was: Only TV = 4436; TV (5+ OTS) +Digital = 2942

Analysis based on behavioral metered data: single source for purchase & digital, fusion data for TV

Methodology_ Technical specifications

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Results_ TV generated massive reach but in a quite unbalanced way

7

100

1/3

1/3

1/3

Non TV exposed Total High TV exposed Medium TV exposed Low TV exposed

Source: Kantar Worldpanel 5 OTC J&J campaigns including TV+Digital January-February 2013)

Exposed to J&J TV campaigns were split in terciles with same size by their level of exposure to these campaigns

32.6 TV OTS

12.3 TV OTS

4.1 TV OTS

The highest 3rd had x8 TV OTS more than the lowest 3rd

OTS = Opportunity To See = one single contact with the ad in a given media

• Average TV GRP´s: 1.518 (max: 3.209; min: 1.647) • Average TV reach: 91,2%

The 1/3 of those exposed to TV J&J Frenas campaigns

that were most exposed to them

The 1/3 of those exposed to TV J&J Frenas

campaigns that were medium exposed to them

The 1/3 of those exposed to TV J&J Frenas campaigns

that were less exposed to them

Exposed to J&J Frenas TV campaigns

Non exposed to TV J&J Frenas campaigns

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Results_ Digital optimized frequency, making possible to add 5 extra OTS on light TV viewers, and almost 4 OTS among those non exposed to TV

8

16.3

32.6

12.3

4.1 0.0

4.8 4.7 5.2 4.7 3.6

Average TV OTS received by each group Average Digital OTS received by each group

Non TV exposed Total High TV exposed Medium TV exposed Low TV exposed

Average number of media OTS impacting viewers by their level of exposure to the TV campaigns

Source: Kantar Worldpanel 5 OTC J&J campaigns including TV+Digital January-February 2013

Google Confidential and Proprietary

Results_ More than 70% of digital GRPs were delivered out of the high TV exposed group

9

100

65.0

25.8

11.2 0.0

100

28.1 35.2 30.4

6.3

TV GRPs Digital GRPs

Non TV exposed Total High TV exposed Medium TV exposed Low TV exposed

71.9% of digital GRPs delivered out of High TV exposed

Share of media GRPs received by each group based on their level of exposure to the TV campaigns

Source: Kantar Worldpanel 5 OTC J&J campaigns including TV+Digital January-February 2013

Google Confidential and Proprietary

Results_ Shift in sales KPI´s among those exposed to TV + Digital was significantly higher vs. the shift among those exposed to TV only

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Shift on sales KPI´s comparing the campaign period vs. the period prior to the campaign

Baseline (100) = shift in penetration during the campaign period vs. the period prior to the campaign among those exposed to Only TV (5+OTS)

Sign. increase compared to Only TV exposed (test Z; confident level: 95.5%)

Weight of analyzed groups (Total online households exposed =100%): Only TV 5+OTS (57,1%); TV 5+OTS + Digital (37,9%)

Source: Kantar Worldpanel 5 OTC J&J campaigns including TV+Digital January-February 2013 TV exposure defined as 5+OTS according to Spanish market conventions on effective TV reach

100

152

100

157

Only TV (5+OTS) TV (5+OTS)+Digital

Only TV (5+OTS) TV (5+OTS)+Digital

Penetration Percentage of individuals who purchased J&J (OTC

category) at least once throughout a specified period

Market share in value Brand spend as % of the total market value

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thank you!