21.09.2010 comscore at red apple / mixx russia

Prepared for Red Apple MiXX Event

Online Advertising Effectiveness

Mike Shaw – Marketing Solutions Director, Europe

September 21st, 2010

Measuring Online Advertising Effectiveness

� Understanding why measurement matters

� A fresh approach to measuring effectiveness

� Examples of measurement success

2© comScore, Inc. Proprietary and Confidential.

$118B

Measured Media Spend:

$186B

Online Media Spend:

Bra

nd Only 23% Online

dollars are spent on

Brand Marketing

63% Total dollars are spent on Brand

Marketing

The internet is disproportionately used for direct response advertising

Why Is This Important To The Market


Source: Lehman Brothers, ThinkEquity Partners. Data represents 2008 US figures;

$68B

$6B$6B

$20B

Online Media Spend:

$26B

Dir

ect

Resp

on

se

77% Online dollars are spent on Direct

Response Marketing

37% Total dollars are spent on Direct

Response Marketing

Latent Impact of Display AdsAdvertisers judging display campaigns on CTR alone are not properly evaluating their

investment because CTR ignores the behavioural/attitudinal change over time

that display exposure drives

Cookie DeletionAd servers relying on cookies to identify

previously exposed users, and implement frequency capping, are overstating reach and understating frequency because UK

users are having 3rd party cookies deleted

Key Issues With Current Campaign Measurement

7.71%

CONTROL TEST


2.01%

3.43%

4.45%3.99%

6.02%

7.71%

Wk 1 Wks 1-2 Wks 1-3

Time from first exposure

% Lift: 99% % Lift: 75% % Lift: 73%

Ad Clickers Follow the 80/20 Rule

8%4%

26%

4%

22%

67%

• 84% of internet users do not click on ANY ads

• Despite comprising only 8% of the total online population, moderate and

heavy clickers account for 85% of all click-thrus


84%

52%

15%

26%

18%

67%

% Internet Pop % of Clickers % of Clicks

Heavy Moderate Light Non

Source: comScore, Natural Born Clickers (US), March 2009

Russian Internet User Profile

Age Gender

% Composition of Russian

Internet Population

15-2432.9%

25-3428.7%

35-4419.1%

45-5413.8%

55+5.5%

Male48.7%Female

51.3%


Average Pages per

Visitor

Russian Internet Audience 15+ accessing Internet from Home or Work

Source: comScore Media Metrix, July 2010

28.7%

2,454

2,780

2,852

2,477

3,324

55+

45-54

35-44

25-34

15-24

3,168

2,561

Female

Male

Russian Audience Segmentation By Activity

Share of Total Visits, Minutes, and Pages by Intensity of Internet Usage

30%

20%

55%63% 63%

7© comScore, Inc. Proprietary and Confidential. Russian Internet Audience 15+ accessing Internet from Home or Work

Source: comScore Segment Metrix, July 2010

50%

14% 10% 9%

32%

28% 28%

Unique Visitors Visits Minutes Pages

Heavy

Moderate

Light

Russian Search Market in July 2010

Russian Searchers

40.0 million unique searchers

Average 98 searches per searcher

Share of Russian Search by Property

Google Sites 31.7%


Total Russian Searches

3.9 billion searches

5.3 billion search result pages

134 search results pages per searcher

Russian Internet Audience 15+ accessing Internet from Home or Work

Source: comScore qSearch, July 2010

Yandex Sites 58.5%

Mail.RuSites 5.9%

Rambler Media 1.6%All Others

2.3%

A Fresh Approach To Advertising Effectiveness Measurement

Campaign EssentialsReporting on actual campaign delivery

Action LiftMeasuring consumer

behaviour after exposure to online ads

Brand Survey LiftUnderstanding consumer attitudes after exposure

to online ads


Visitor Penetration

(% Visiting Site)

15.0%

24.6%

12.3%

37.1%

18.6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Pre-Campaign

Period

Campaign

Period

Post-

Campaign

Period

Control Test

201%

Understanding Behavioural Impact Of Ad Exposure

EXPOSED GROUP

Site Visitation

Site Engagement

LIFT METRICS

Test and control groups matched on demographic and behavioural variables


UNEXPOSED GROUP

Site Engagement

Search Behaviour

demographic and behavioural variables

Display Ad Exposure Lifts Reach of Advertiser Site Considerably More Than CTR Analysis Alone Suggests

4.45%3.99%

6.02%

7.71%

Time-Aligned Analysis

CONTROL TEST

4.03%

7.26%

6.05%

Campaign/Post-Campaign Analysis

CONTROL TEST


2.01%

3.43%

3.99%



Source: comScore Whither the Click in Europe, Feb 2010

4.03%

3.53%

Campaign Period Post-Campaign Period

Analysis Period

% Lift: 99% % Lift: 75% % Lift: 73% % Lift: 80% % Lift: 71%

1.80%

1.54%

2.56%

3.27%

Time-Aligned Analysis

CONTROL TEST

Users Exposed To Display Ads Far More Likely To Search For Advertiser Search Terms

2.72%

1.95%

Campaign/Post-Campaign Analysis

CONTROL TEST


0.81%

1.36%1.54%




1.15%

0.91%

Campaign Period Post-Campaign Period

Analysis Period

% Lift: 91% % Lift: 89% % Lift: 81% % Lift: 136% % Lift: 114%

� European audiences show a higher lift at up to 3 weeks after display ad exposure

in both advertiser site reach and use of advertiser search terms than their U.S.

counterparts

European Audiences More Impacted By Display Campaigns ThanU.S. Audiences

94%

Lift in Search Term Reach

72%

Lift in Advertiser Site Reach


40%

Europe U.S.

49%

Europe U.S.


(time-aligned and campaign period/post-period studies included)

Analysing Effectiveness Of Alternative Formats:Video Achieves Results Faster Than Display

2.5%

2.9%

3.3%Video only

1.1%

1.4%1.6%

Display only

Absolute Percentage Point Lift in Site VisitationExposed Group vs. Control


1.9%

Wk 1 Wks 1-2 Wks 1-3 Wks 1-4

0.7%

1.1%

Wk 1 Wks 1-2 Wks 1-3 Wks 1-4

Campaign Breakout:Video Only: FinancialDisplay Only: Travel, Utilities & Public Sector

Source: comScore & .FOX Networks Study, UK, Q1 2010

Analysing Effectiveness Of Alternative Formats:Incremental Impressions After 5 Exposures More Valuable For Display

3.3%2.9%

4.3%

Video only

2.4%

3.8%

Display only

Absolute Percentage Point Lift in Site VisitationExposed Group vs. Control


1-5 exposures 6-9 exposures 10+ exposures

1.2%

2.4%

1-5 exposures 6-9 exposures 10+ exposures

Campaign Breakout:Video Only: FinancialDisplay Only: Travel, Utilities & Public Sector

Source: comScore & .FOX Networks Study, UK, Q1 2010

10.26%

17.33%

8%

10%

12%

14%

16%

18%

20%

Ad Unit Creativity Has A Huge Impact On Effectiveness

∆ 7.07 percentage points+69%


0%

2%

4%

6%

Low Dwell High Dwell

High-dwell campaigns saw an average lift of 17.33% in the reach of the advertiser’s site

between test and control groups, compared to 10.26% for low-dwell campaigns; creativity has led to a 69% increase in campaign effectiveness.

Source: comScore & .Microsoft Advertising

‘Dwell on Branding’, Europe, Q1 2010

11.86%

39.10%

15%

20%

25%

30%

35%

40%

45% Lift in Brand Search Term Reach

Even Higher Impact On Brand Recall Via Search

∆ 27.24 percentage points+230%


11.86%

0%

5%

10%

15%

Low Dwell High Dwell

High-dwell campaigns saw an average lift of 39.1% in the reach of brand search terms

between test and control groups, compared to under 12% for low-dwell campaigns; creativity has led to a 230% increase in campaign effectiveness.

Source: comScore & .Microsoft Advertising

‘Dwell on Branding’, Europe, Q1 2010

Summary

� Reporting campaign effectiveness on CTR alone fundamentally undervalues the role online display has in influencing consumer behaviour

� Effective campaign measurement considers the requirement of each advertiser brand and reports accordingly

� Proper reporting and use of data can help publishers justify appropriate display rates, and agencies and brands understand


appropriate display rates, and agencies and brands understand the real value they obtain

Thank You


For More information on comScore in Russia please contact:

Osnat [email protected]

21.09.2010 comscore at red apple / mixx russia

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