How to Build Brands Using Online Advertising: Lessons Learned IAB Chile Seminar on Interactive Marketing
Gian Fulgoni, Chairman, comScore Inc.
Discussion
Online Advertising in Latin America The Correct Metrics to Use to Measure Online Ad Effectiveness – Not the click – Latency must be measured
Understanding the Media Plan Delivered – Reach and Frequency Delivered
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Advertising Revenues in Latin America ($ Millions)
TV Online (Search + Display) Newspaper Magazines Radio Outdoor
2008 $10,075 1,509 2,912 1,084 1,113 993
2009 $9,625 1,691 2,644 1,001 1,010 894
2010F $10,842 2,066 2,797 1,128 1,106 974
Total Media
17,687
16,864
18,913
Online as a Percent of Total Media
8.5%
10.0%
10.9%
Online Change, YOY
47.7%
12.0%
22.2%
Source: Magna Global
Š comScore, Inc. Proprietary and Confidential.
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Search Dominates Online Advertising Spending in Latin America: How Do We Best Grow Display Advertising’s Share?
2009 Total Online Advertising Spending: $1.7 Billion
Display 41% Search 59%
Source: Magna Global and IAB Š comScore, Inc. Proprietary and Confidential.
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The Internet is lagging badly in capturing branding dollars
37%
Direct Response
63%
Branding
2009 US Measured Media Spend: $147B
6% of Brand Dollars
$91B
$6B $18B
$55B
Š comScore, Inc. Proprietary and Confidential.
30% of DR Dollars
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Source: Brand.net analysis based on data from Barclays Capital, Think Equity Partners, LLC, and DMA
The Correct Metrics to Use to Measure Online Ad Effectiveness: It’s not the Click!
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Powerful Platform: Global Panel of 2 Million Users: 150,000+ in Latin America The Only Global Measurement of Audience and e-Commerce
360° View of Consumer Behavior Web Visiting and Viewing
41 Media Metrix Reported Countries
Online / Offline Transactions
Streaming Video
Search Behavior
Media Exposure
170+ Countries with Sample Presence
Š comScore, Inc. Proprietary and Confidential.
Demographics Life Stages
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In the U.S., Half as Many Clickers on Any Ad in 2009 vs. 2007
 Only 16% of internet users clicked on at least one display ad in March 2009, down from 32% two years earlier July 2007
March 2009
Clickers 16%
Clickers 32% NonClickers 68%
NonClickers 84%
Source: comScore, Inc. custom analysis Total U.S. Online Population July 2007 and March 2009 data periods Š comScore, Inc. Proprietary and Confidential.
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Ad Clickers Follow the 80/20 Rule
• 84% of Internet users don’t click on ANY ads •
Despite comprising only 8% of the total online population, moderate and heavy clickers account for 85% of all click-thrus 4% 4% 22% 8%
26%
67%
52%
18%
84%
15% % Internet Pop Heavy
% of Clickers Moderate
% of Clicks Light
Non
Source: comScore, Natural Born Clickers (US), March 2009 © comScore, Inc. Proprietary and Confidential.
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Sweden
0.10%
Does the Click Tell Us Anything About Branding Impact? United States 0.10% Global Click Rates on Individual Campaigns are Pitifully Low Hungary 0.11%
Worldwide
Switzerland Denmark Click-Through France Italy Germany New Zealand Spain Turkey Austria Netherlands Belgium China Greece India Singapore Hong Kong United Arab Emirates Malaysia
Norway 0.07% Ireland 0.08% Luxembourg 0.08% United Kingdom 0.08% Finland 0.09% Australia 0.10% Canada 0.10% Sweden 0.10% United States 0.10% Hungary 0.11% Switzerland 0.11% Denmark 0.12% France 0.12% Italy 0.12% Germany 0.13% *Click-through rates across Static Image, Flash, and Rich Media formats New Zealand 0.14% Spain 0.14% Turkey 0.14% 10 Š comScore, Inc. Proprietary and Confidential. Austria 0.15%
0.11% 0.12% Rates* 0.12% 0.12% 0.13% 0.14% 0.14% 0.14% 0.15% 0.16% 0.17% 0.18% 0.18% 0.20% 0.20% 0.21% 0.26% 0.29%
Source: DoubleClick DART for Advertisers, a cross section of regions, January – December 2008
Display advertising’s early mistake: Click is the wrong metric for measuring ad effectiveness
Does this one person’s click effectively reflect the branding impact of exposing the other 999 people to the same ad?
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If Not The Click, Then What? “A click means nothing. A click earns no revenue and creates no brand equity. Your online advertising has some goal – and it’s surely not to generate clicks. You want people to visit your website, seek more information, purchase a product, become a lead, keep your brand top of mind, learn something new, feel differently, etc. Regardless of whether they clicked an ad or not, the key is to determine how that ad unit influenced a consumer to think, feel, or do something they wouldn’t have done otherwise.” John Lowell SVP Director, Research & Analytics Starcom
© comScore, Inc. Proprietary and Confidential.
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Understanding Behavioral Impact Of Ad Exposure: comScore’s Methodology AD EXPOSED GROUP
LIFT METRICS Site Visitation
Test and control groups matched on demographic and behavioural variables
Site Engagement
Search Behavior Buying Behavior BALANCED UNEXPOSED GROUP
© comScore, Inc. Proprietary and Confidential.
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comScore “Whither the Click in Europe?” Display Ads Lift Visitation to Advertiser Site Even With Minimal Clicks Time-Aligned Analysis CONTROL
TEST
Campaign/Post-Campaign Analysis CONTROL
7.71%
TEST
7.26% 6.02% 6.05% 4.45% 3.99%
4.03%
3.43%
3.53%
2.01%
% Lift: 99% Wk 1
% Lift: 75%
Wks 1-2
% Lift: 80%
% Lift: 73%
Campaign Period
Wks 1-3
Time from first exposure
% Lift: 71%
Post-Campaign Period
Analysis Period
Source: Average of 20 Studies Published in comScore’s “Whither the Click in Europe?” Feb 2010 © comScore, Inc. Proprietary and Confidential.
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comScore “Whither the Click in Europe?” Display Ads Increase No. of Trademark Search Queries Even With Minimal Clicks Time-Aligned Analysis CONTROL
Campaign/Post-Campaign Analysis
TEST
CONTROL
TEST
3.27% 2.72% 2.56% 1.95% 1.80% 1.54% 1.36%
1.15% 0.91%
0.81%
% Lift: 91% Wk 1
% Lift: 89%
Wks 1-2
% Lift: 136%
% Lift: 81%
Campaign Period
Wks 1-3
Time from first exposure
% Lift: 114%
Post-Campaign Period
Analysis Period
Source: Average of 20 Studies Published in comScore’s “Whither the Click in Europe?” Feb 2010 © comScore, Inc. Proprietary and Confidential.
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European Audiences Show a Greater Response to Display Ad Campaigns Than U.S. Audiences  Over a 3 week period following display ad exposure, European audiences show a higher lift in advertiser site visitation and trademark search than their U.S. counterparts Lift in Site Reach
Lift in Search Reach
81% 73%
49% 40%
Europe
Europe
U.S. Š comScore, Inc. Proprietary and Confidential.
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U.S.
The .Fox U.K. Ad Studies Objective: Partnering with .FOX Networks, comScore examined the effectiveness of display vs. video ad formats as well as the frequency of exposure to the campaign ads
Methodology: Four U.K. campaigns were examined from different sectors (Travel, Finance, Government and Utilities) comprising over 300 million impressions served to U.K. Internet users across various ad formats in 2009. comScore used its panel of 70,000 U.K. Internet users to passively track online behaviour to understand the impact of advertising on specific activities linked to campaign effectiveness over time, namely: -- Advertiser Site Visitation
-- Trademark Search Queries
Š comScore, Inc. Proprietary and Confidential.
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Campaign Overviews
Sector
Campaign Objectives
Finance
Branding campaign to raise awareness of the brand and also drive consideration of one of their leading products
Travel
Price-led promotional campaign to both raise brand awareness and increase passenger bookings
Public Sector
Public service campaign aimed at making the population aware of a key upcoming voting event, supported by the launch of a new site, and to encourage registration
Utilities
Awareness-building campaign for a leading utility firm focusing on the environment and sustainability
Š comScore, Inc. Proprietary and Confidential.
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Reach & Frequency Information by Campaign
Campaign
Overall Campaign Reach
Average Frequency of Exposure
Online Gross Rating Points (GRPs)
Formats Used
Finance
8.2MM (23%)
3.5
82
Only Video
Travel
26.4MM (72%)
5.6
405
Display
Public Sector
22.8MM (62%)
6.5
403
Display + Video
Utilities
16.9MM (46%)
6.0
276
Display
Š comScore, Inc. Proprietary and Confidential.
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Overall Campaign Summary: Very Strong Results Even With Minimal Clicks Advertiser site reach within 4 weeks of first exposure to display ad Unexposed Group
Exposed Group
Absolute Percentage Point Lift
% Lift
Finance
1.98%
5.47%
3.49
176%
Travel
0.33%
4.88%
4.55
1,379%
Public Sector
0.19%
1.05%
0.86
453%
Utilities
0.05%
0.55%
0.50
1,000%
Sector
Reach of advertiser search queries within 4 weeks of first exposure to display ad Unexposed Group
Exposed Group
Absolute Percentage Point Lift
% Lift
Finance
3.97%
7.43%
3.46
87%
Travel
0.20%
2.40%
2.20
1,100%
Public Sector
1.97%
3.50%
1.53
78%
Utilities
1.07%
2.55%
1.48
138%
Sector
Š comScore, Inc. Proprietary and Confidential.
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Campaign Search Queries Climb Steadily With Increased Display Exposures While Video Has a More Immediate Impact with Fewer Exposures
Absolute Percentage Point Lift in Campaign Search Term Reach Exposed Group vs Control Group
Video only 2.1%
2.0%
Display only 2.2%
3.0% 2.4% 1.2%
1-5 Exposures 6-9 Exposures
1-5 exposures 6-9 exposures
10+ Exposures
Campaign Breakout: Video Only: Financial Display Only: Travel, Utilities & Public Sector Š comScore, Inc. Proprietary and Confidential.
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10+ exposures
Within the Public Sector Campaign, Video Generated Higher Lifts than Did Display Absolute Percentage Point Increase in Campaign Search Term Reach Exposed Group vs. Control Group
Absolute Percentage Point Lift in Site Visitation Exposed Group vs. Control Display Only
Display Only
Video Only
Video Only
0.95% 2.70% 0.74% 1.39%
Wks 1-4
Wks 1-4
Š comScore, Inc. Proprietary and Confidential.
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The Key to Ad Effectiveness Measurement is Behavior ‌.
“This .Fox research is valuable because it looks beyond the usual data used by the industry for media trading. As opposed to relying on the usual simplistic denominators of click-thru and last event attribution, this research centres on consumer behaviour proxies that are better placed to reflect communication goals, defining success based on a mix of visitation, engagement and search behaviour across a four week period. By addressing difficult planning considerations such as cross format and multiple touchpoint attribution, this .Fox research better reflects the way Havas Digital believes campaigns must be evaluated if the digital media industry is to continue to grow in terms of significance for major advertisers." Anthony Rhind
Global Co-CEO, Havas Digital
Š comScore, Inc. Proprietary and Confidential.
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Display ads successfully build sales – both online and offline
$ per 000 Exposed % Lif t: 16.6% $11,550 $9,905 % Lif t: 27.1%
$994 $1,263 Online
Of f line Control
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Test
Short Term Offline CPG Brand Sales Lift From Online Advertising Matches Long Term TV Impact BehaviorScan tests conducted over one year period comScore studies over three months*
+9%
+8%
TV (Bscan)
Internet (comScore)
*Assumes 40% HH Internet Reach Against Target Š comScore, Inc. Proprietary and Confidential.
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Relating Campaign Effectiveness Results to the Media Plan
• Reach and Frequency Actually Delivered • Target Reached
© comScore, Inc. Proprietary and Confidential.
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The Cookie Deletion problem Cookie deletion creates audience measurement issues Cookie Deletion*
Year
Method
Country
Belden
43%
2004
Survey
U.S.
Nielsen
44%
2005
Survey
Italy
Jupiter
39%
2005
Survey
U.S.
comScore
31%
2006
Electronic
U.S.
Forrester
50%
2008
Survey
U.S.
comScore
24%
2009
Electronic
U.K.
* % of responders/users deleting cookies during past month Š comScore, Inc. Proprietary and Confidential.
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Deletion Rates Add to the Problem: Number of Different Cookies Per Machine for Same Site / Campaign Among Deleters
Web Site Cookies
Ad Server Cookies
U.S.
5
7
U.K.
4
8
Source: comScore Š comScore, Inc. Proprietary and Confidential.
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Cookie Deletion Skews Campaign Delivery Relative to Plan The high rate of deletion of first party ad server cookies causes unique visitor (people) counts in web site analytics data to be severely overstated
The high rate of deletion of third party ad server cookies causes: – Ad reach to be significantly under-achieved relative to plan – Frequency to be similarly over-delivered
It’s critical to understand the characteristics of the media plan that were actually delivered if accurate conclusions are to be drawn about plan effectiveness
© comScore, Inc. Proprietary and Confidential.
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Introducing MMX 360: Panel-Centric Hybrid Measurement
Complete and Fully Reconciled Measurement PANEL
SERVERS
People Measurement Reach, Demographics, Affinity, Duration
Census Coverage of Usage Anywhere
QUERY TAGS Content Categorization Š comScore, Inc. Proprietary and Confidential.
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Panel Measurement
However…
Strengths
A panel is still a sample:
Tracks real people and measures person demographics
– Universe limited to home and
Better duration and usage
work
measurement
– Niche audiences difficult to
UVs not affected by bots or cookie
measure
deletion
– Challenging to recruit adequate
Measures ad impressions delivered
sample sizes of users in large enterprises due to IT security policies
by demographic
Captures cross site visitation
© comScore, Inc. Proprietary and Confidential.
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Panel-Centric Unified Audience Measurement
Panel-Centric Unified provides “best of breed” by combining strengths of both Web site-server and panel measurement
Panel-Centric Unified involves beaconing of Web site data processed with comScore’s filtering technology to eliminate extraneous traffic, combined with panel to provide accurate people-based demographics, duration, reach, intensity
Adding census data from beacons increases accuracy for niche and long tail sites, heavy work visitation sites and out of home Internet access
Provides most accurate measurement of unique site visitors, ad reach and frequency
© comScore, Inc. Proprietary and Confidential.
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Measuring Online Advertising Effectiveness: Lessons Learned
Clicks are an inappropriate metric for measuring effectiveness of display advertising – Online advertising can have substantial impact even in the face of minimal
clicks
Online advertising needs to be measured with an eye toward its latent and branding impact on consumer behavior – Compelling evidence that online is a particularly effective and efficient branding
medium, lifting site visitation, trademark search queries and both online and offline buying – even in the face of minimal clicks – Measuring behavioral impact can increase confidence in the effectiveness of display advertising as a branding strategy
Because of cookie deletion, ad server data overstate reach and understate frequency actually delivered – Unified server and panel data can provide most accurate R/F data
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Thank You!