This is the PowerPoint presentation I developed for the SPAA (Screen Producers Association Australia) Fringe event session titled 'Sponsor Generated Programming' (aka Branded Entertainment' which was held on 23 October 2010 in Sydney, Australia.

1. Sponsor Generated Content:aka Branded Entertainment SPAA Fringe 23 October 2010 Sydney, Australia Panel: Martin Walsh Head of Digital @ IBM and Producer, Red Dune Films Ross Crowley Head of Programming, FOXTEL Tammy Stone Commercial Integration Manager, Lifestyle Channel Alistair Henderson Director, OMD Anthony Damianakis Managing Director, VokyoEntertainment

2. “Branded entertainment is the integration of a product or a brand into a piece of entertainment.”

3. “Branded content is when the brand becomes or provides the entertainment.”

4. “Branded content is original programming that a brand owns rather than rents, and the storyline or the program subject matter emanates from the brand DNA.” Doug Scott Executive Director, Branded Content Ogilvy & Mather

5. The brothers Auguste and Louis Lumiere included Sunlight Soap in certain films made in 1896.

6. At the beginning of the 20th Century, Model T Fords were included in the comedies of Mack Sennett and were listed in the films credits.

7. Product ‘advertising’ on ‘In Melbourne Tonight’ (IMT) with Graham Kennedy. IMT was a highly popular nightly variety television show produced at GTV-9 Melbourne (Australia) from 1957 to 1970

8. The birth of the 30 Second TVC – 1960’s. Cadbury’s Crunchie – ‘Snap Goes the Crunchie’ (c1966)

9. The Gods Must Be Crazy – 1980. Coca Cola integration.

10. Most placed brands in major feature films 2001 - 2010

11. Product placement reached its zenith with movies like 007

12. Rolex watches Bollinger Champagne Aston Martin Sony Vaio Laptop

13. But things started changing…

14. In 2001 & 2002 the BMW series of branded content films introduced the concept of short, entertaining films made by brands and delivered primarily via the internet.

15. In 2001 & 2002 the BMW series of branded content films introduced the concept of short, entertaining films made by brands and delivered primarily via the internet.

16. In 2005 digital technology has added a new twist to the practice of putting brand-name items into TV shows and movies during post production or live broadcasts. When a scene from the CBS TV show “Numbers” was filmed there was nothing on the table. In post-production, presto, a steaming cup of Campbell’s soup is added. The process is called digital brand integration and it is the newest form of product placement developed by a company called Marathon Ventures.

17. 2009 - Chanel No.5 branded content films featuring actress Audrey Tautou

18. Current Environment for Advertisers Supremacy of the 30 second ad is gone Exponential growth of online video Fragmented media landscape

19. Media Consumption by Australians in 2010 *Australians with Internet: Nielsen 2010 Internet & Technology Report

20. So brands have started to create their own content, known as webisodes or sponsor generated programs to advertise around, reviving a strategy from the early days of radio and television.

21. Easy to Assemble is a web series created for Ikea by actress Illeana Douglas and it generated over 5 million views in its second series. It features a host of well-know actors.

22. 2008 – ‘Easy to Assemble’ is a web series created for Ikea by actress Illeana Douglas

23. But brands are branching out and experimenting even further….

24. Video Games – In Game Advertising

25. Video Games – In Game Advertising

26. SupaStrikas is a soccer themed comic that prints 1.4 million copies per month in 16 countries. Brands are inserted into comic frames and use story characters in ads.

28. History of Branded Entertainment Timeline Product Placement – 1896 to today Soap Opera Sponsors – 1950’s 30 Second Ad Spot – 1960’s Cause Campaigns & Events – Early 1960’s Games / Viral Video / Webisodes – Early 2000’s to today Post Production digital product placement –2005 to today Sponsor Generated, User Generated Content, Social & Experiential – 2009+

29. Sponsor generated programming is a view to a USD$33b a year Opportunity Watching TV shows when and where you want to is quickly becoming commonplace in a world awash with FOXTEL iQ, Hulu, TiVo, xBox, PS3, NetFlix, iTunes and YouTube. But if the fragmented media landscape is great for consumers, it's hell for advertisers.

30. A view to a USD$33b Opportunity Spending on these forms of branded entertainment, as it's being called, grew 13 percent in 2008 to $25 billion and to $33b in 2009. During the GFC this spending only declined 0.8% and it’s now forecast to grow at a CAGR (Continued Average Growth Rate) of 9.3% through to at least 2014. *PQ Media.

31. Current Media Landscape (By Discipline) The landscape is fractured; the territory battles continue between digital and offline media organisations and agencies, particularly over interactive TV and video as GRPs decline. Radio Media is trying to tap into the media dollars allocated to emerging media / gaming, digital, and sponsorships. Key growth opportunities exist at the intersections: Online Display and Video Cable Television Broadcast Television Local TV OOH Guerilla Offline(187B$+) Newspaper Digital OOH Emerging Channels Magazine DRTV VOD TiVo Set-top video extensions Mobile Broadcast TV Google TV Gaming Cable TV Online Video Search Content integration Online microsite / brand extensions Digital ($26B+) Product Placement Display Sponsorships Events Size of circles is not proportional to agency head count or channel spend. Emerging channels / sponsorships spend included in digital and offline totals.

32. What’s happening across Media & Entertainment? CAGR 13% 25% 7% 6% 5% 7% 4% *40% 2007-2008

33. TV 2.0: More about Digital and Less about Television

34. Digital Channels & Platforms 2mof Xbox Live's30m active monthly members are already Netflix members and they have watched more than 17m videos, mostly movies (1.9b minutes of content) through the Xbox console directly into the home. In October 2009, SKY TV UK begins broadcasting via the Xbox removing the need for a Satellite dish. In November 2010, Australians with an Xbox Live Gold membership will be able to watch FOXTEL via their Xbox for $20 per month. Netflix has more than 90,000 titles and more than 10 million paying subscribers. Hulu served more than 1 billion movies & TV shows in June 2010 watched by more than 48.7m unique users making it the second-largest video site (behind YouTube) in the U.S., according to Comscore.

35. Explosion of Digital Devices & Channels

36. TV 2.0: Today

37. TV 2.0: Tomorrow

38. Today’s Panel Martin Walsh - Head of Digital Marketing, IBM / Film & Documentary Producer, Red Dune Films Ross Crowley - Director Programming, FOXTEL (Cable Broadcaster) Tammy Stone- Commercial Integration Manager, Lifestyle Channels (Broadcast Channel) Anthony Damianakis - Managing Director & Executive Producer, VokyoEntertainment (Production Company) Alistair Henderson - Director, OMD Fuse (Ad Agency)

39. Sponsor generated programming in action. The Party Garden.

40. The Party Garden The underlying entertainment concept...

42. The Party Garden …which translates into sponsor generated programming.

45. What makes this case study interesting? Power of an insight Stand-alone activity How it worked for all parties

47. Platform to overcome their barriers to gardening

49. Search for the engagement idea Engagement Idea Brand (Values/Personality) Channel insights Engagement territory Engagement thought Product (functional) Executable idea Truly consumer centric; Matters deeply Genuinely new & interesting Focussed and ownableby the brand

50. A lot going on in the garden! An end in itself Connection with nature Healthy exercise Creative outlet Enjoy seeing things grow Relaxing A means to an end Nice place for the kids to play Escape at the end of the day Capital growth Designer living Enjoy homegrown food Sustainable living Love to entertain

52. Kids and neighbourhood/community feed into the entertaining arenaBackyard Entertaining Food Community/ Neighbourhood Kids

53. Finding the idea Engagement thought “I love having people round. When everyone’s in the yard having fun, it makes me feel part of everything” Engagement Idea Celebrate and share the role of the garden in outdoor entertaining in all its forms Executable idea ‘The Party Garden’ – an original TV series which follows great garden entertainers as they prepare for their signature backyard party Brand (Values/Personality) Trusted expert Channel insights TV – ‘love Lifestyle’MagazinesFriends, family and neighbours Territory Backyard Entertaining + kids + neighbourhood Product (functional) Everything for a growing garden

54. Yates

55. The main parties +

56. TV Lifestyle +2 On demand Download full episodesPC + iPod + 90 second promo spots Wed & Thurs across XYZ channels + Foxtel marketing: 4x over delivery of promo spots N:lientsatesroject Managementesults & Outputs/Yates Post Report Week One

57. Print – driving reach

58. Digital – deeper information and more direct sell

59. Editorial – exploring the entertaining territory

60. Trade Bunnings ‘Handyman’ October 2009 PR launch event Trade activity

62. Total reach of over 5 million

63. 250,000+ 25-54 cumulative saw the show (511,000 total audience)

65. 74% have been ‘inspired to entertain in their garden’(Sources: OMD Insights, LifeStyle Channel, Yates Consumer Tracking) Better consumer recall, understanding and preference 47% 29% 62% increase among regular LifeStyle viewers who say they bought a Yates product in the last 3 months

67. Listening to their consumers to find relevance

68. Better understanding of the power of consumer engagement for cut-through and persuasion

70. Our viewers don’t want advertising

72. LifeStyle Involvement Titles / Content Casting Promos Editorial Marketing Digital Talent On-Demand

73. Q&A and Panel Discussion

74. Thank you! For more details contact: Martin Walsh – Red Dune Films mwalsh@reddunefilms.com Alistair Henderson – OMD Alistair.Henderson@omd.com Tammy Stone – Lifestyle Channel Tammy.Stone@xyznetworks.com.au Anthony Damianakis – VOKYO ant@vokyo.tv