digital media measurement and monetization roundtable notes

8/14/2019 Digital Media Measurement and Monetization Roundtable Notes

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Contact: Ephraim Cohen at [email protected] or +1-917-215-5413

www.ctdigitalmedia.com or www.fortexgroup.com

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On May 22, 2009, the CT Digital Media Business Network hosted a breakfast roundtable to discuss the

challenges and potential solutions for digital media measurement and monetization. The debate, led by

thought leaders Bruce Haymes, SVP of product research for Nielsen, and Jonathan Yarmis, formerly an

analyst with Gartner research, took several interesting turns. Not only was the importance of

engagement questioned, but the industry conversation about engagement was cited as a top problem

confronting the digital media industry as it searches for methods and technologies to resolve the

challenge of adequate measurement and monetization.

This document outlines both the questions and potential solutions raised by roundtable participants.

The order in which the points are presented is intended to illustrate how the group came to a general

consensus on several key issues while acknowledging the enormity of the challenge.

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One of the biggest challenges in the ability to measure and monetize digital media is not an issue of

technology, but rather the way in which the industry has been discussing the challenge itself. An

accurate, smart discussion is needed in order to move toward effective solutions.

The tendency to focus on engagement and behavioral targeting can prove to be a double-edged

sword, as these are not always the most effective approaches

o The predominate industry conversation often confuses several areas, thus more care needs to

be taken in the discussion of when it is more appropriate to spend money on branding versus

direct marketing/response as well as instances when those initiatives and expenditures shouldbe combined.

o The continuation of mass media is necessary to realize the full monetary potential of online

media, thus the preservation of mass media is imperative

The concept of branded networks such as those available on television may prove a successful

model for online media as well


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Digital Media Measurement and Monetization Roundtable Notes

Page 2 CT Digital Media 2/11/09

TV can be perceived as a walled garden that delivers controlled, predictable targets, while the web

has a significantly more fragmented and demographically diverse audience. This is not likely to

change.

In order to fully monetize digital media, measurement firms must find a way to determine audience

behavior across all digital media

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While it is clear that there is a long list of challenges that must be confronted in order to solve the digital

media measurement problem, the group divided them into several categories.

Technical challenges: A prime example of a technical challenge confronting digital media content is

the lack of ability to ensure proper. A related issue is the presence of infinite denominators. At a

time when TV has always been a finite and predictable resource, making it easier to track content

from its source, the online world has the capability for infinite, unpredictable content and content

sources. As a result, reliable tracking becomes a major issue.

Measurement sciences: For online media, data collection, or how to calculate an audience remains

problematic. The tradition panels approach is no longer sufficient. Hybrid approaches, such as

panels plus ISP data, are currently being pursued, but there is no widely accepted methodology forcollecting data as of now.

Ecosystem and economic model: Digital media is still subject to platforms with little ecosysteminfrastructure. While mobile is a good example of an ecosystem that developed in an early stage,

tracking digital media usage across screens requires stronger technical ecosystems and

measurement methodologies applicable across all three screens.

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Comparing the TV and online world was an inevitable part of the roundtable conversation. Participants

all seemed to agree that online media may never be like TV. In the online world, there are not only

those infinite sources of content, but information must also be measured frequently in real time,

otherwise it may become useless. Of course, should TVs become just a very large screen for the online

world, it may be a situation where TV viewing measurement becomes more like online content

measurement.

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Effective resource allocation requires knowing where to find the right people at the right place and at

the right time. Realizing the full monetization potential of digital media requires effective measurement

solutions that go beyond the need to measure infinite resources and viewing across three screens they

also have to aim for measurement in real time, or else proper resource allocation becomes impossible.

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There are a few thoughts on how measurement and monetization may be able to work together in order

to change the marketing and content industries. One idea thrown out by roundtable participants was

that ad agencies may increasingly form solutions implemented across their own advertising networks.

So, instead of running ad buys on other peoples networks, they would offer ad buys on their own

networks and have the content distributors sign up directly with them.


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The science of measurement has gone beyond a point where branding is the focal point. It must now

also include direct marketing and direct response (but its up to marketers to determine when it is

appropriate).

While roundtable participants couldnt agree on some facets of measurement for example, some

complain its too fragmented and want it to be more like TV, while others argue its already too much

like TV. They did agree that measurement objectives need to be clear, if not, measurement becomes

too fragmented.

Participants also felt the definition of brand and brand measurement may keep evolving. If this is the

case, the best solution will not be static, but rather dynamic, in order to keep up with these changes.

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The issue of privacy was only briefly raised, as many at the table, while acknowledging their own privacy

concerns, seemed to see it as more of an issue for the current generation that is not accustomed to

online privacyor the lack thereof. As one person queried, Did we complain about privacy with credit

cards? With the next generation of web users, this issue may eventually become non-existent.

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Previously, direct marketing and branding were seen as two distinct areas. Now, businesses are

attempting to combine them, possibly costing everyone more in the long run.

Successful direct marketing can also be successful branding (for example, the Shamwow), this is not

always the case. Direct marketing and direct response are about engagement, while branding is not

necessarily so. If the marketing investment is focused on direct marketing, it could result in giving away

the branding value of the investment.

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Participants agreed that a complete focus on engagement can become a double edged sword that

posses incredible risk to the industry by putting it in a corner and eventually killing mass media.

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While not every company should concentrate on branding nor should every company focus on direct

response, some should do both. While long term or image-directed results are generally more reliant on

branding, effecting short term decisions may be best achieved by a combination of the two.

Furthermore, branding is often more effective for premium products, while direct response/direct

marketing is for commodity products. The economic climate also should be considered. In the current

recession, marketers need more justification for ad spending, so direct marketing/direct response may

prove to be the better strategy for campaigns.

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The roundtable participants also explored the impact of social media and how best to target this

category for marketing. The main question was whether we should stop looking at large scale, mass

outreach campaigns and instead, focus on the power of the influencer consumer. In digital media, it is

these consumers that drive communications, and online, their power has been magnified. Social media

value may also not exist in marketing/PR, but in measurement. For example, the first application out for

twitter is intended to measuring influence.


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Participants questioned whether networks might be redefined to web networks. Networks provide

distribution and reach, which is true of both TV (e.g., ABC) and online (e.g,. Hulu) outlets. While

distributors are widely available, the industry needs brand name distributors like TV networks that will

attract both consumers and advertisers. ESPN360, Hulu, and others are examples of new types of

networks, web networks, that may end up leading the way to major monetization opportunities.

These networks are already familiar brands run by people that understand mass media and they arefocused on high value content against which brands want to advertise (monetize).

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One thing is for certain the major digital media opportunity is stillabout mass media. Behavioral

targeting and engagement are not mass media, and if these remain at the center of the discussion, the

industry risks missing the best chance for achieving full monetization. Targeting and engagement are still

important; theyre just not the drivers of the largest opportunities.

Roundtable Attendees (partial list)

Paula Green

Scott Lichtman

Kaye Nilson

Sal Tofano

Tom Peckenham

Ariana Rawls

Scott Berry Digitalics

David Robbins

Christopher Glowacki PlumTVLawrence Greenberg Greenberg Media

Owen Nieberg Overbrook Consulting

Chris Pfaff

PGA/Chris Pfaff Tech

Media

Eric Kogan Robinson & Cole

Bruce Haymes Nielsen

Ephraim Cohen The Fortex Group

Jason Liu

Visitwww.ctdigitalmedia.comfor information on future events
http://www.ctdigitalmedia.com/http://www.ctdigitalmedia.com/http://www.ctdigitalmedia.com/http://www.ctdigitalmedia.com/

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