audience r&f gr ps online ad campaigns

Nielsen Online Campaign Ratings Audience Reach, Frequency and GRPs for Online Ad Campaigns

Charles Buchwalter, SVP, Nielsen Online Campaign Ratings

Mark Kalus, Director, Product Management, Nielsen Online Campaign Ratings

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Copyright © 2011 The Nielsen Company. Confidential and proprietary.

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Nielsen Online Campaign Ratings

Discussion topics

• Online media: “The best of worlds and the worst of worlds”– Online as the “media darling”…online’s share of total ad spend

continues to grow– But CPMs and click-through rates are declining and leading brand

advertisers question if online can nurture their brands– “The most measureable medium” has some shortcomings

• Desperately seeking true cross-media metrics

• Introducing Nielsen Online Campaign Ratings– The strengths and weaknesses of panels in the online space– Collaborating with the industry’s largest registered user databases– Comparing online to traditional media with consistent metrics

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Online advertising continues impressive growth trajectory

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In 2010, Internet ad spend surpassed newspaper, after passing cable

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May 24, 2011

But why have the big ad-spending industries been slow to join the party?

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The unmeasured 99.9%“An unmeasured medium is an inherently undervalued medium.”

– Arthur C. Nielsen

Brand advertisers are left asking

‘Who saw my ad?’

Today, impressions and clicks are de facto currency for online media. But less than 1 in 1000 click on online ads.

Impressions measure machines, not people.

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Industry associations are grappling with online media’s metric challenge

• Leading advertising trade groups working together to develop digital metrics and cross platform measurement solutions

• Looking to drive better marketing and media management decisions

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Reach: What is my true audience?

Brand advertisers rely on audience demographics to

plan and evaluate their marketing/media

investments

Effectiveness starts with going beyond impressions to

understand how your campaign delivered against

the target audience

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Notes:

• Audience metrics for online ad campaigns are lacking

• Panels historically have been the method to measure audiences, but the fragmentation of the web has rendered panel measurement inadequate for tracking and measuring online advertising campaigns


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Challenges in online measurement

• Audience measurement metrics needed:

• Accurate reach and frequency

• Measure people, not machines

• Unbiased, consistent measurement

• Comparability with other media

• Impressions are a weak measurement

• Measures only volume, not audience

• Not comparable to other media

• Creates discrepancies between Buy and Sell

• Does not tie back to planning criteria

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Current measurement approaches fall short

Traditional Panel Approaches

Sample Coverage

Low single digits (<2-3%)

ScalabilityRequires large campaign size

Delivery

Usually post-campaign due to

small sample coverage

Comparability

Only Nielsen has direct integration with “currency”

data

Ad Servers

Demo Reporting

Demographic reporting

does not exist

Unique Audience Counts

Third-party cookies are prone to error

ComparabilityNot comparable

to other media

Cookie-Based Ascription

Sample Coverage

Not verifiable

Primary Data Source

Extrapolations and modeled

data

Unique Audience Counts

Third-party cookies

prone to error

ComparabilityNot comparable to other media

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Nielsen approach to advertising effectiveness

WHO DID MY CAMPAIGN REACH?

WHAT IMPACT DID IT HAVE ON MY

BRAND?

WHAT DID IT MOTIVATE THEM TO DO?


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What is Nielsen Online Campaign Ratings?

Provides a new, highly accurate method to identify and measure audiences exposed to online ad campaigns

Accurately identifies the audience via actual registered user demographics from data providers

Evaluates unique reach and frequency across campaigns, and within each publisher

Gross Rating Points (GRPs) outputs for ad campaigns are comparable to Nielsen TV Ratings

30-50%sample coverage

for actual user demographics

Nielsen Online Campaign Ratings User Interface

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How it works

Data Provider: A registration web site that has agreed to share a demographic sample with Nielsen to aid in measurement.

Panel Calibration Factors: Factors from the Nielsen Cross-Platform panel used to calibrate and correct for bias in the Data Provider sample.

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Notes (1):

• This diagram shows how the Nielsen Online Campaign Ratings platform measures an ad campaign using 3 streams of data: (1) server level counts, (2) a sample of actual user demos from our data provider, and (3) a calibration sample from the high-quality Nielsen panel.

• Facebook is our first data provider, but over time Nielsen will add additional premium web publishers to act as data providers.

• Starting in the top left corner, all ad units in the campaign are tagged with the Nielsen pixel tag


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Notes (2):

• The ad renders in the user’s browser, and the tag fires first to Nielsen servers, where a census level count of impressions occurs.

• Next, Nielsen servers return a command to the user’s browser re-directing it to the data provider (i.e. Facebook). This is an encrypted “ping” masking the source of website where the ad appears, and encrypting in the information in the tag itself. If the machine has a logged-in cookie from the data provider, the data provider can assign an age and gender to the impression.


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Notes (3):

• So the data provider continues to log impressions throughout the day, matching demographics when possible. The next step is for the Data Provider to run a set of Nielsen Correction rules on the user level data, which is based on learnings from prior matches to Nielsen panel. This enables incorrect information in the registration data to be corrected before inclusion in the measurement.

• Finally the data provider summarizes the data into aggregated, de-identified summary files, and sends to Nielsen.


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Notes (4):

• Nielsen combines the sample from the Data Provider with the overall census impressions count. Typically the Data Provider sample covers 30-50% of a campaign’s impressions.

• To project to the full audience, Nielsen calibration factors are used to correct for bias in the Data Provider sample.


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Sample audience report Women’s Personal Care Product

Campaign Target: Females 18-34

23% of delivery reached the

target audience

51% of audience was Male

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Notes:

• This is an example of the standard Audience Report.

• This report is from an actual campaign in our beta program for a CPG product intended for women age 18-34.

• The report shows that 23% of the impressions delivered reached the intended audience.

• Over half of the campaign impressions were delivered to Men.


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Key benefits of this approach

Accountability: Verify the audience delivered matches intended audience

Insights for Planning: Understand the true audience composition and size, both in-flight and post-campaign

Comparability: A consistent set of metrics to measure audiences across Online & TV

Automation: Reports updated daily via a robust platform capable of measuring billions of impressions per day

Specificity: Measure any size campaign, running on any size website, for any duration

Privacy: Leverages aggregated user counts, with no individual-level measurement. Users can opt out via Nielsen.

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• Methodology/technology validation • Client trials • Benchmarking

Objectives

• High sample coverage (42% on average)

• Test campaigns/publishers exhibited varying levels of success in delivering target audiences

• Average frequencies varied widely across demographic groups

Learnings

The combination of sites across many campaigns resulted in hundreds of individual campaign * site observations for this analysis.

Total Non-Facebook campaign = ~40

Beta program

• 25+ advertisers• 150+ publishers• 80+ campaigns

Key Statistics

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• Finding: Individual sites within a single campaign often delivered the target audience with differing degrees of precision • In the example campaign below, the overall campaign % On-Target was 32%,

with individual sites as high as 60% and as low as 18%

Key finding from beta test: Dramatic variability in reaching target audiences

Target Audience:

Males 25-49

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Nielsen approach to advertising effectiveness

WHO DID MY CAMPAIGN REACH?

WHAT IMPACT DID IT HAVE ON MY

BRAND?

WHAT DID IT MOTIVATE THEM TO DO?

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Resonance: Nielsen Online Brand Effect

• Nielsen Online Brand Effect measures attitudinal impact of online ads via polls on Facebook• Leverages the same tag employed for Nielsen Online Campaign Ratings• Shared measurement platform results in synchronized demos for Nielsen Online Brand Effect

and Nielsen Online Campaign Ratings

• Fast, high quality metrics• Consistent with Nielsen Online Campaign Ratings

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Notes:

• Brand Effect is a second solution from Nielsen that leverages a partnership with Facebook.

• This product measures ad campaign resonance via surveys delivered on the Facebook platform.

• This product shares a common tag with OCR.


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National Media Consumption• National Television Panel• National Internet Panel• Cable Set Top Box Data

Direct Match (online publishers, mobile, etc)

Actual Consumption of Goods• National Data Set (+60MM HHs)• Homescan Multi-Outlet Panel

What people WATCH What people BUY

Anonymously linking consumers’ television, online and mobilemedia usage with actual household purchase behavior

Anonymously linking consumers’ television, online and mobilemedia usage with actual household purchase behavior

Anonymous Single Source

Database

Anonymous Single Source

Database

Reaction: Nielsen Catalina Solutions

Digital

TV

FSD

Homescan

Result: robust data, projectable to the US population’s Watch and Buy behaviors

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Key Takeaways

• Advertisers need to look beyond the standard metrics to evaluate the impact of their online media campaigns

• Nielsen Online Campaign Ratings delivers enhanced accountability to the online advertising space

• Combines the breadth of registered user data from leading data publishers with Nielsen’s cross platform panel and measurement science expertise to produce reach, frequency and GRP insights for banner, rich media and video campaigns

• Advertisers can understand true audience composition and size, both in-flight and post-campaign

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Today’s presenters

Charles Buchwalter Senior Vice President, Nielsen Online Campaign Ratings

Mark Kalus Director, Product Management, Nielsen Online Campaign Ratings

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Notes (1):

• Charlie Buchwalter has a 30-year career in the information services industry, spending the last 12 years helping leading advertisers, agencies and publishers understand online media and marketing trends.

• Charlie is overseeing the go-to-market plans for Nielsen Online Campaign Ratings which was developed to provide the online media industry with a new and highly accurate method to identify and measure the audiences exposed to online ad campaigns.

• Previously, Charlie served as Chairman/CEO of our online business in Japan, a joint venture with TransCosmos and Dentsu. Before that Charlie oversaw the Research & Analytics function for Nielsen Online in the U.S. where his team advanced our online thought leadership and custom analytics capabilities.

• Charles started his career with DRI/McGraw-Hill where he served as Vice President of the financial information group managing DRI's national financial services practice. After DRI, he joined CMP Publications (now CMP Media) where he worked with the management team to conceive and implement electronic publishing strategies. At ParaMarketing, He helped leading companies respond to Internet market developments; he assisted in the development of go-to-market channel strategies for the Internet business units of IBM, Digital Equipment, Novell, Oracle and Sun Microsystems.

• Charlie holds a M.S. in Natural Resource Economics from the University of California, Berkeley, and a B.S. in Economics from University of Washington.


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Notes (2):

• Mark Kalus has led product development for Nielsen Online Campaign Ratings since just prior to the announcement of the initiative in September 2010. Nielsen Online Campaign Ratings is being developed to provide the online media industry with a new and highly accurate method to identify and measure the audiences exposed to online ad campaigns. The key innovation of the product is the inclusion of demographic data from leading web publishers.

• Mark has 10+ years experience in a variety of product and analytics roles in the advertising and media space. Before joining Nielsen, Mark led the advertising product group for ad technology start-up HookLogic in New York. Prior to that he worked for digital ad agency Mediacom/Beyond Interactive, in the development of a comprehensive web-based reporting platform for online media analytics. Mark began his career in traditional media research at Gannett Co.

• Mark holds an M.B.A from New York University, Stern School of Business; and a B.S. in Marketing from Xavier University.


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Q&A

Thank you for attending.

•If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative.

•If you are not a current Nielsen client, please contact us by phone or email:

Phone: 800-553-3727 email: [email protected]

OR if you have any questions regarding the content of this webinar, you can also contact:

Charles Buchwalter, email: [email protected]