changing how the world sees digital advertising

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    vCE Webinar | 10 May 2012

    Mike Shaw Director, Marketing Solutions

    @comScoreEMEA

    Changing How the WorldSees Digital Advertising

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    1 Brandings Digital Challenge

    2 Quantifying the Problem

    3 Kelloggs Solution

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    In 2007, comScores First Post-Buy Analysis Across 8 DigitalUS Campaigns Showed Execution Left a Lot to be Desired

    Percent of Ad Impressions for 8 Campaigns

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    In US But NotTarget

    Hit TargetFrequency >=5

    Hit TargetFrequency

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    X

    Branding advertisers on TV are accustomed to audienceguarantees and expect the same in digital

    Cookies Are Not People

    Cookie Proliferation

    Accuracy of cookie-based digital plan delivery is problematic:

    Cookie Deletion

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    Cookies Cant Accurately Identify Who is Using a Computer at

    any Given Point in Time due to Multiple Users

    Over 64% of home users share a computer with other users

    1 user

    36%

    2 users

    32%

    3+ users

    32%

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    Cookie Deletion is a Global Realityand a Global Challenge

    Ad Server Cookies

    Country

    Percent of

    computersdeleting

    Average # of cookies

    per computer forsame 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

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    Arguably the Most Important Digital Advertising Initiative ToDate: 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

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    to better understand sources of waste and

    ident i fy opportuni t ies to extract more value

    f rom digi tal advert is ing budgets

    comScore has now quantified incidence of sub-optimal addelivery across key ad delivery dimensions

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    vCE US Charter Study:12 Major Branded Advertisers Came Together to Lead & Learn

    Allstate

    18campaigns2 billion impressions400,000sites

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    15campaigns640 million impressions213,000sites

    Charter Study replicated in Europe with similar results

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    vCE Charter Study:In-view Rates Need to Be Improved

    Campaign In-view ad rates ranged from:US55% to 93% EU64% to 72%

    US69%

    AVERAGE

    67%AVERAGE

    EU

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    7%

    69%98%

    MINIMUM AVERAGE MAXIMUM

    0.2%

    63%

    100%

    MINIMIUM AVERAGE MAXIMUM

    In-View ad ratesacross Top 500

    US sites

    In-View ad ratesacross top 100

    EU sites

    vCE Charter Study:Opportunity for improvement at the largest sites

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    13 7seconds

    average by site category8.0

    seconds

    26.3

    seconds

    In-view duration

    vCE Charter Study:In-View Duration Rates Not Consistent

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    Large sites scored better than long-tail sites

    Percentage of Ads Served In-View

    77% 74% 70%61%

    66% 63% 61%55%

    US EU

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    Digital Ad Economics:The Good Guys Arent Necessarily Winning

    Low correlation of In-View Rates & CPM

    An equally as weak correlation was also observed between CPMand ability to hit a primary demographic target

    R=0.0373

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    vCE Charter Study:Ads Often Fall Outside of Desired Geography

    About half of geographic waste was notonly out of target but also out of language

    US4% of ads were served

    outside geography.Up to 15% of ads on agiven campaign

    7% of ads were served

    outside geography.Up to 27% of ads on agiven campaign

    EU

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    vCE Charter Study:Ads Often Served in inappropriate brand content

    72% and 67% of US and EU campaigns hadimpressions served in inappropriatebrand content

    US92,000 people

    In the US

    21,000 people

    In the EU

    EU

    Limited number of people,

    but big potential negative impact

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    vGRP can provide more accurate analysis of campaigneffectiveness in Marketing Mix Models

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    Month 1 Month 2

    GRP:NegativeCorrelation

    GRP

    Sales

    0

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    Month 1 Month 2

    vGRP:Positive

    Correlation

    vGRP

    Sales

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    There is good news for advertisers, agencies and publishers

    Analogous to TV audience guarantees

    Eliminating unseen online inventory supplyresults 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/accountabilitymeans increased confidence in digital .

    leading to more branding ad spendingmoving online

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    Using Data to Solve

    Digitals Problem

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    Visibility measures are enriching our KPI analysis

    Kelloggs is participating in the first ever Validated Campaign Essentials

    study outside the U.S. with two U.K. based campaigns

    Impressions ImpressionsAvg.

    Frequency% In View

    Targeting Index % on Target Total Campaign Total Campaign

    Campaign Total 116 30.3% 3.1 72%

    Publisher 1 76 19.9% 3.9 67%

    Publisher 2 94 24.7% 1.9 64%

    Publisher 3 93 24.5% 2 74%

    Publisher 4 147 38.6% 7.8 70%

    Publisher 5 191 50.0% 2.4 87%

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    Where We Are Going: In-Market Optimization at aCampaign 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/Q4Media

    Partner

    Avg

    Frequency

    Impressions

    in Target

    Impressions

    in ViewCPM

    1 3.5 24.5% 83% $2.44

    2 3.0 16.9% 91% $9.08

    3 8.4 23.5% 71% $8.62

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    holistic single tag people-basedmeasurement

    cross-mediacomparability

    complete in-viewmeasurement

    The Future in Focus

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    For more information:Visit www.comscore.com/vCE

    Email [email protected]

    Q&A

    mailto:[email protected]://www.comscore.com/vCE