Investment Case

CAPTIVE MEDIA

A Better Beer Experience at Bars

“Our strategy is all about providing these unexpected moments”

Heineken Frontier Brief

• Meet the ‘Millennials’, ‘Gen Y’, or ‘Born Digital’ generation

• Born between 1982 and the late nineties. Now aged 18 – 34

• They are very hard to engage

• They:

• are exposed to over 600 advertising messages a day1)

• filter these messages as never before

• are out and about 30% more than a decade ago

• watch less TV, and consume less traditional media

• Worse, recent research suggests that they don’t respond much to Digital either

• [Research by UC Berkley and eBay finds response to paid search is less than 0.4%]

Meet the generation who have switched off to traditional media

Note 1) Source: Media Matters

• Our starting point: the consumer’s

relationship to media has

changed! Traditional media are

less effective for Gen Y

consumers

• Our focus: achieving “cut

through” through a uniquely

novel and talkable experience in

the bar

• The battleground: Leisure venues:

bars, clubs, restaurants, initially in

the UK – but with global ambition

• Our philosophy: do something

different!

At Captive Media we think deeply about ‘nudging’ consumer behaviour at the point of sale

Our Influences

• The new path to purchase:

McKinsey estimate that 40% of all

purchase decisions are make at

the point of sale. For drinks brands

this can be as high as 70%

• Thaler and Sunstein: Nudge.

Influencing consumer behaviour

requires different a different

approach. Gamification is a

powerful tool

• Ogilvy Labs: a test bed for new

customer engagement

technologies. We are an Ogilvy

lab partner

• Captive – 55 seconds

• Interactive, so has a return path for advertisers

• Highly engaging

We are building a new media channel in licensed retail

So far we have installed 30 venues in London and we’re now busy installing around the UK

7

0 20 40 60 80

Intuitive

Hygienic

Newsworthy

Enjoyable

Agree

Disagree

% of total responses

Customers were asked whether they thought Captive

Media’s system was . . .

“Fun, pleasurable, fulfilling!”

“Genius! Alan Sugar would be

impressed”

“One of the best ideasI’ve heard of, absolutely

genius”

“Funny, innovative,clever idea”

Source: survey of 50 respondents, conducted between July to October 2011 2

“That is awesome!That is like a man’s

dream”

Research confirms that Gen Y consumers love the technology

“Took a photoand showed my

mates!”

• Heineken and Captive Media each exemplify one of three “Future Trends” for brands

• View clip by clicking or going to www.onlinemba.com/blog/future-of-advertising/

We have something in common with Heineken: we both feature in the Online MBA’s thought piece: The Future of Advertising

9

25%

Tiger’s Sales Share at VenueWeekly Tiger unit sales as % of total weekly bottled beer unit sales

4.21 %

9.74 %

0

2

4

6

8

10

12

Source: Venue’s EPOS data

Prior Year(Jan+Feb2011)

Captive Media

Pilot (Jan+Feb2012)

Note. This is one of a number of test promotions conducted since July 2011.

For full details of this and other trials see www.captive-media.co.uk/case-studies

• Tiger Beer ran a promotion on-screen in Jan/Feb 2012

• They used a number of different creative executions

• Tiger’s share of bottled beer sales at the venue more than doubled

• Average weekly sales nearly tripled compared to the same period last year

• Sales even topped the peak Christmas period

We have also doubled sales of one of Heineken’s brands,

Tiger, in an early pilot

To view actual footage of this

particular promotion click here

10

Our technology can deliver a three part experience for Heineken

consumers – bringing the brand right to top of mind in each venue

1. ‘Ambient loop’ plays during

approach

The customer views the

screens as soon as they enter

the washroom, and whilst they

approach the screen

Leverage existing TV / video

assets – playing up to 40 times

an hour

2. Interactive Game experience.

Once at the bowl, the screen

detects the player and activates

the game

Games last between 30 – 70 secs,

or until the player’s ‘ammo’ runs

out!. (see game ideas below)

This is what gets consumers talking

to each other

3. Call to action. The parting

thought

Extends the engagement beyond

the Captive Media unit and onto a

player’s mobile.

Examples include: on-line

leaderboards for competitions,

vouchers (see next pages)

0 sec 10 20 30 40 50 1:00 1:10 1:20 1:30

1 2 3

Ambient Loop Interactive Session Call to Action

Part 1. We can play Heineken’s current TV and video assets up to 40 times and hour on each unit

Leverage existing TV and Digital Out of

Home video assets

… playing up to 40 times an hour on each screen in each venue

The customer views the screens as soon as they enter the

washroom, and whilst they approach the screen

This amounts to over one million gross impressions per month

across the current installed base

The Tiger Beer sales uplift cited above used only this ambient

media

Part 2. We will develop a bespoke interactive Heineken game, with which each and every male bar-goer will engage

The Heineken in-bar game

Our unique game experience works best as an extension of

your wider mutli-channel marketing mix. For example:

• To activate the Open Your City / London Unlocked

campaign, a driving game where the user navigates

around a cityscape populated with interesting

locations or events. He collects points for discovering

them

• To activate Heineken’s Champions League

sponsorship, a football themed game – eg simple

penalty shoot out as shown

All game concepts will be branded and themed with

Heineken colours and imagery. We’ll work with your

Marketing team to develop a bespoke game that meshes

with your campaign objectives. (see process slide below)

>> Played by all male customers in the bar – not just those

who have a particular app or device on their person!

>> Our own screen network will number 100 screens in the

UK by Christmas 2014, serving over 250,000 games per

month

Part 3. The game engagement extends to real-world action, via the user’s mobile phone

At the end of each game, the screen displays a call to action. There are three types:

Type 1: Compete. Enter Global Online Leaderboard

• Each game allows players to enter their score and name on a global leaderboard,

displayed at the end of each game, between games, and on-line.

• Players compete against their friends. Or for their country! For the London Olympics

we staged a five country athletics game (which was won by Spain, alas)

• Social Media integration: Players can tweet their score – along with an auto-

populated Heineken hashtag

• Facebook integration is an added option we can explore with you

Type 2: You’ve won! Claim your prize

• Games can be configured to be “winnable” – eg collect 10 points to win a free

bottle of Heineken

• We have partnerships with more than one mobile voucher fulfillment app enabling

us to deliver vouchers to players’ mobile phones IF they score highly. A great

talking point

Type 3: Just go to the bar and buy a Heineken!

• Sometimes simple is best. A common call to action is simply to display the product

with a call to action to sample it at the bar. If near term sales uplift is the goal, this

is highly effective – having driven a 12.4% sales uplift for the brand pictured here,

and up to 50% uplifts for other drinks brands (see case studies at

http://www.captive-media.co.uk/case-studies/)

Process: we’ll work with your Marketing team to develop a bespoke game that meshes with your current campaign

Stage 1: Game / Experience Development

We begin by taking a proper creative brief from your marketeers, then follow a four step process: 1) Creative brief

development, 2) Brainstorming / game concept design, 3) Artwork, including sign off, 4) Game coding and testing.

The process end to end can take as little as 6 weeks, and culminates with a light hearted demonstration and testing

event with your team

Stage 2: Deployment / Execution

Where do you want to achieve most impact? In which locations do you most want Heineken to be top of mind? Our

units can be installed in a morning. We can agree with you to invest a portion of the prize budget in installing the

technology in venues that best support Heineken’s Marketing themes:

• In or near Champion’s league venues – even stadia

• In selected top music venues – or venues featured in Open London

• In key influencer /Style bar venues where Heineken would like to boost distribution. We are often able to secure

distribution for bottled product at venues where we install our game

Stage 3: Measurement and Feedback

With the game deployed we can measure its impact in three ways

1. We can measure sales impact directly by gathering EPOS data from the venues at which the game is playing

2. We interview customers in the bar (alongside a control group) to measure things like brand recall, brand association

and even purchase intention. You can see examples at www.captive-media.co.uk/case-studies/.

3. We can also film footage of customer’s emotional reaction to the activation. It is the strength of this reaction – and

the conversations it starts – which constitute the greatest value. See an example here or at

https://www.youtube.com/watch?v=2a6gKCIida0

Summary: Six advantages of Captive Media

Well timed – 90 secs in washroom; 55 seconds

at screen … just before next purchase decision

Captive – Truly captive audience. No distractions and impossible to avoid.

Interruptive and engaging

Targeted Reach – Perfect gender targeting: 10,000 impacts per month per venue. (Non-

interactive) screens in Ladies

Talkable – Creates Zealots. Lots of them. 90% of men tell friends

Flexible. Each screen networked; ad copy can change by day / time of day / weather!

Accountable –logs every game played, reporting by timeslot vs. EPOS data