IAB Conecta 2012Gian Fulgoni Executive Chairman and Co-founder, comScore
Changing How the World Sees Digital Advertising
1 Branding Advertising’s Digital Challenge
2 Kellogg’s Solution
3 Viewing the Future
SOURCE: IAB for Internet Advertising Revenue and KANTAR for Total Mediaedia Measurement
$31.7 Billion U.S. Online Ad Spending
in 2011
+22% vs. year ago
IAB says U.S. online ad spend is now larger than newspapers, magazines and radio, and equivalent to 46% of TV
10X Faster Growth
ThanAll Media
SOURCE: IAB for Online and Various for Total Media dia Measurement 2011
Online ad spend in Latin America* is growing twice as fast as in the U.S.
3.5X Faster Growth
ThanAll Media
$2.5 Billion Online
Ad Spendingin 2011
+42% vs. year ago
Latin America
*Argentina, Brazil, Chile, Columbia, Mexico, Peru
But, Branding Advertising is Relatively Weak Online
Only One Third of All Online AdSpending is Branding
Direct Response (Mainly Search) Still Dominates
In Traditional Media Branding Advertising Dominates
Branding’s Online Challenge:
Is the Target Audience Guaranteed?
comScore’s Approach to Digital Measurement
2 Million Person Panel 360°View of Person Behavior
CENSUS
Unified Digital Measurement™ (UDM)Patent-Pending Methodology
1 Million PropertiesAdopted by 80%
of Top Global Media Properties
PANEL
PERSON-Centric Panel with SITE-Census Measurement
Web Visiting &
Search Behavior
Online AdvertisingExposure
AdvertisingEffectiveness
Demographics,Lifestyles& Attitudes
Media & VideoConsumption
Transactions
Online& Offline
Buying
Mobile InternetUsage & Behavior
PANEL
V1011
Person Behavior Measured Passively
by Keystroke Typing Signature
In 2007, comScore’s First Post-Buy Analysis Across 8 Digital U.S. Campaigns Showed that Accuracy of Digital Delivery Left a Lot to be Desired
Percent of Ad Impressions for 8 Campaigns
In US But Not Target
Hit Target Frequency
>=5
Hit Target Frequency
<=4
Outside US0%
10%
20%
30%
40%
50%
60%
70%
61%
8%
19%12%
X
Branding advertisers on TV are accustomed to audience guarantees and expect the same in digital
Source: comScore 2011
Cookies Are Not People
Cookie Proliferation
But, accuracy of cookie-based digital plan delivery is problematic:
Cookie Deletion
Because of Multiple Users, Cookies Can’t Accurately Identify Who is Using a Computer at any Given Point in Time
Over 64% of home users share a computer with other users
30% of the time, someone other than
the Facebook logged-in person is actually using the
computer
Cookie Deletion is a Global Reality …and a Global Challenge
Ad Server Cookies
CountryPercent of computers
deleting
Average # of cookies per computer for same campaign
Australia 37% 5.7
Brazil 40% 6.6
U.K. 35% 5.9
U.S. 35% 5.4
Accurately counting reach with cookies is not possible, yet is currently the method used in most ad servers and analytics systems
… to better understand sources of waste and identify opportunities to extract more value from digital advertising dollars
comScore quantified incidence of sub-optimal ad delivery at the individual person level…
Reach, Frequency and Demographics
CE™: Massive Global Market Experience2,600+ Studies for 120 advertisers / agencies in 28 countries
North America Europe Asia Pacific
Allstate
Not an exhaustive list. Includes advertisers currently working with comScore vCE who have agreed to be named publicly.
Some Things We’ve Learned About Digital Media Plan Delivery
The negative impact of cookie deletion– Cookie deletion inflates ad frequency and deflates ad reach
by as much as a factor of 2.5X
Targeting accuracy using cookies:– 70% for 1 demo (e.g. women)– 48% for 2 demos (e.g. women age 18-34)– 11% for 3 demos (e.g. women age 18-34 with kids) – 36% for behavioral targeting (e.g. people visiting travel sites)
Kellogg’s Solution
The KPI Framework: Establishing a model for Advertising Effectiveness – applied initially to Online Media
• Brand Awareness• Purchase Interest• Message Association• Direct Response
• % Impressions to Target/Targeting Index
• Frequency of Exposure• CPM
• Branded Recognition • Brand Buy Next
PRE-MARKET QUALITYDoes my creative have the right to
succeed?
AUDIENCE DELIVERYDid we efficiently reach our Target?
IN-MARKET EFFECTIVENESS
Are we moving the needle?
Looking at a few of Kellogg’s larger campaigns
Data provided by comScore Campaign Essentials is at an individual publisher, individual campaign level
Aaron is there data for this
chart?
Impressions Impressions Avg. Frequency
Targeting Index % on Target Total Campaign
Campaign Total
Publisher 1
Publisher 2
Publisher 3
Publisher 4
Publisher 5
In total, this campaign effectively delivered to target and efficiently balanced the exposures
comScore shows that there have been some clear top performances
Impressions Impressions Avg. Frequency
Targeting Index % on Target Total Campaign
Campaign Total 216 58% 3.2
Publisher 1 163 44% 4.0
Publisher 2 225 60% 3.1
Publisher 3 140 37% 3.5
In this case many impressions are virtually being thrown away as the wrong audience is reached over and over
again
But comScore Also Shows That There Are Some BIG opportunities
Impressions Impressions Avg. Frequency
Targeting Index % on Target Total Campaign
Campaign Total 105 53% 12.0
Publisher 1 97 49% 8.8
Publisher 2 25 13% 21.7
Publisher 3 92 47% 11.4
Publisher 4 143 72% 15.6
Is Kellogg’s Strategy Working?The early results say ABSOLUTELY
Implemented new Digital strategy and analytics in the first half of 2011. ROI results from our first two Brand Market Mix Models
have just come in.
Year 1 Year 2 1H 2011
ROI
3X
6x
Year 1 Year 2 1H 2011
ROI2X
5X
Brand 1 ROI Brand 2 ROI
The Future
Arguably the Most Important Digital Advertising Initiative To Date: Making Measurement Make Sense (3MS) Mission
Reduce costs of doing business due to
complexity of digital advertising ecosystem
‘Single Tag’ solution to reduce complexity
Improve reporting of ad exposure
Bolster confidence that ads delivered are
actually visible
… to better understand sources of waste and identify opportunities to extract more value from digital advertising dollars
comScore quantified incidence of sub-optimal ad delivery across all key ad delivery dimensions…
vCE US Charter Study:12 Major Branded Advertisers Came Together to Lead & Learn
Allstate
18 campaigns2 billion impressions 400,000 sites
15 campaigns640 million impressions 213,000 sites
vCE Charter Study replicated in Europe with similar results
vCE Charter Study: In-view Rates Need to Be Improved
Campaign In-view ad rates ranged from: U.S. 55% to 93% EU 64% to 72%
U.S.69%
AVERAGE67%
AVERAGE
EU
Minimum Average Maximum
7%
69%
98%
Minimium Average Maximum
0.2%
63%
100%
In-View ad ratesacross Top 500
US sites
In-View ad ratesacross top 100
EU sites
vCE Charter Study: Opportunity for improvement at many of the largest sites
Large sites scored better than long-tail sites
Percentage of Ads Served In-View
77% 74% 70%61%
66% 63% 61%55%
US EU
Digital Ad Economics: The Good Guys Aren’t Necessarily Winning
Low correlation of In-View Rates & CPM
An equally as weak correlation was also observed between CPM and ability to hit a primary demographic target
R²=0.0373
vCE Charter Study: Ads Sometimes Fall Outside of Desired Geography
About half of geographic waste was not only out of target but also out of language
U.S.4% of ads were served outside geography. Up to 15% of ads on a
given campaign
7% of ads were served outside geography. Up to 27% of ads on a
given campaign
EU
vGRP can provide more accurate analysis of campaign effectiveness in Marketing Mix Models
Month 1 Month 20
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
GRP: Negative Correlation
vGRPSales
Month 1 Month 20
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
vGRP: Positive Correlation
GRPSales
The KPI Framework: Establishing a model for Advertising Effectiveness – applied initially to Online Media
• Brand Awareness• Purchase Interest• Message Association• Direct Response
• % Impressions to Target/Targeting Index• Frequency of Exposure• % Impressions in View• CPM
• Branded Recognition • Brand Buy Next
PRE-MARKET QUALITYDoes my creative have the right to
succeed?
AUDIENCE DELIVERYDid we efficiently reach our Target?
IN-MARKET EFFECTIVENESSAre we moving the needle?
Where Kellogg’s is Going: In-Market Optimization at a Campaign Level Based on Cost and Effectiveness
• Opportunity to optimize - Budgets follow performance• Multiple publishers, each with high reach potential• Wide variance in performance observed real-time
Brand X - Q3/Q4 Media
PartnerAvg
Frequency
Impressions in
Target
Impressions in View
Lift in Awarenes
sCPM
1 3.5 24.5% 83% 5.74 $2.44
2 3.0 16.9% 91% 0.55 $9.08
3 8.4 23.5% 71% 0 $8.62
There is good news for advertisers and publishers
Analogous to TV audience guarantees Eliminating unseen online inventory supply
results in: More effective / efficient campaigns and less
waste for advertisers
More accurate metrics for market mix models
Better proof of digital ad effectiveness Increased transparency/accountability
means increased confidence in digital …. leading to more branding ad spending moving online
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