Cómo Construir Marca Utilizando la Publicidad Online

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

© comScore, Inc. Proprietary and Confidential.

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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!

© comScore, Inc. Proprietary and Confidential.

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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?

© comScore, Inc. Proprietary and Confidential.

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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

© comScore, Inc. Proprietary and Confidential.

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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

© comScore, Inc. Proprietary and Confidential.

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Thank You!