making online measurement make sense - iab …...the nielsen company appointed the sole and...

Making online measurement make sense

Speakers

• Paul Fisher – CEO of IAB Australia

• Matt Bruce – MD, Media Audience Measurement, APMEA, Nielsen

• John Grono – Owner of GAP Research

• David Gaines – CEO of Maxus Australia

$4 billion+

Driven by

buyers Growing

complexity and # of vendors

Market growth forecast

Credibility of current

measurement

Evidence from

overseas markets

Comparable data with

other media

Newspapers 25%

Free TV 25%

Online 19%

Classifieds Directories

(Print) 12%

Radio 7%

Mags 5%

Outdoor 3%

STV 3% Cinema

1%

AU Advertising Share by media 6 months to 30 June 2011

Source: Commercial Economic Advisory Service of Australia (CEASA) 6 months to 30 June 2011

Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates, IAB Australia.

.

The Nielsen Company appointed the sole and exclusive preferred supplier for the provision of online audience measurement services by the IAB

with endorsement from the MFA and AANA.

“The online space has been using a variety of measurement tools, which has made it extremely difficult for advertisers to understand the value of audience data. To move to an Industry supported standardised currency will allow advertisers, in partnership with their agencies, to better understand the audience online, to assist in planning and where to invest their media budget. This process has been important to explore the opportunity to deliver true cross-platform metrics for digital media. Awarding the preferred supplier status to Nielsen allows a set of criteria that is accepted by advertisers, agencies and media, to guide audience measurement in digital media as it evolves further in this rapidly moving space, developed with an eye toward the cross-platform metrics every one seeks.” Scott McClellan, CEO of AANA

“The MFA has been a keen participant, active collaborator and contributor at both a technical and Board level in this tender process from inception in order to ensure an optimum outcome for the industry. While it has been a lengthy process, our members would be encouraged by the rigour and the effort that has gone in to providing the best solution for our market and we eagerly await the ability to start applying more relevant user data for online” MFA Digital Committee Chair, David Gaines

The Nielsen Company appointed the sole and exclusive preferred supplier for the provision of online audience measurement services by the IAB with endorsement

from the MFA and AANA.

11

Copyright © 2011 The Nielsen Company. Confidential and proprietary.

Nielsen Online Ratings

13


The new Online Ratings approach provides more robust people based metrics

Representative Comprehensive Consistent

Key benefits for the industry

1

2

3

4

5

Captures data from all sources

Measures people not computers, browsers, devices

Enables cross-media measurement

Consistent market-wide rules ensure a level playing field

Accurate representation of ad inventory and audiences

14


What we know about Australians

Of 22 million Australians - how many are online?

20.1m Active

16.3m - Active Monthly

Source: Nielsen Online Ratings October 2011

Sources: ¹Australian Bureau of Statistics, June 2010.

15


“Which is why quality not just size, is the

foundation to ensuring an accurate, truly

representative measurement of consumers…

16


High quality opt-

in panel of

consumers -

comparable to

Television panel

At Nielsen, to accurately measure all Australians,

we construct a quality panel

We recruit

to ensure a

statistically

representative

sample of

all online

consumers

We conduct

Establishment

Surveys and

follow stringent

quality control

procedures

Ongoing Panel

Management and

IAB Health checks

ensure quality and

robustness

17


How large should a properly constructed panel

sample be to ensure accuracy?

• MYTH - A common misconception is the larger the population the larger the

sample needs to be in order to have the same accuracy.

• FACT: The most important criteria is the level of granularity and ensuring the

sample size enables you to drill down deep into demographic segments.

• Below is an overview of how the sample size affects the sampling error. We

have used a 95% confidence interval with a 50% reach in this example

0%

2%

4%

6%

8%

10%

12%

0 2000 4000 6000 8000 10000 12000

Sam

plin

g E

rro

r

Sample Size

Sampling Error - 50% reach - 95% confidence

Sampling Error - 50% reach - 95% confidence

18


Why is the Online Ratings panel world’s best

practice?

• Our panel is the only online audience measurement panel to have now

been audited and endorsed by the IAB

• We undertake monthly enumeration (establishment) surveys to ensure

an ongoing, accurate understanding of the online population in Australia

• The RDD (Random Digital Dial) is a random recruited sample of

Australians which we use to weight the Online recruited part of the panel

• RDD offers an accurate sample of Australian internet users without the

skews seen with a purely online recruited panel.

• RDD is the world wide recognised best practice in recruiting an accurate

panel employed in other Nielsen panels such as the OZTAM TV panel

• Nielsen is active in 100 countries globally, and our commitment to

establishing and maintaining quality panels is world’s best practice.

19


Online Ratings measures devices in Australia

Understanding traffic from all

devices people use:

Requires high quality tag based

web site measurement with these

key features:

• Robust implementation and audit

procedures

• World leading data cleaning to

exclude non human traffic

• A significant proportion of tagged

web sites that Australians visit

• Quality Assurance procedures

20


How Does Nielsen Online Ratings Work?

Behaviour

Activity

Reporting

Tagged Data All Locations

Census Data Home & Work

Audience Metric Comparable to

Other Media

Person-

Centric

Audience

Metric for all

Locations

Before After

21


Online universe usage over time

0

2

4

6

8

10

12

14

16

18

Au

str

alian

s

(millio

ns)

Trend break July 2009

(RDD Online*)

Trend break September

2011 (Hybrid**)

*RDD Online The RDD Online was brought in to better estimate usage across the home and work and for the first time captured work usage in a shared setting. At the same time, the panel size increased dramatically

**Hybrid The Hybrid universe fills in the gaps of audience which is unmeasurable through a home and work only panel. Hybrid data therefore captures users from places such as internet cafes , schools and Universities. Hybrid also captures usage from all devices


22


0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

Monthly MI UB

Monthly NV UA

Previously the market has relied on unique

browsers that don’t measure people

Hybrid universe

commences

Australian population 22.7 million in 2011

Australia

Browser/cookie

universe

continues to

grow

RDD/Online

Methodology

Update

23


Reasons for Cookie Inflation:

Proliferation of devices, particularly iPhones and other smartphones, which by default block 3rd party cookies

Increasing prominence of “In Private Browsing” in popular browsers like Internet Explorer, Firefox and Chrome

Increasing use of multiple browsers (e.g. Firefox, Chrome)

Unique Browsers are affected by Cookie

Inflation

What is the data showing?

26


Australian online universe - key statistics

48hrs

PC Time per

person

(excluding apps)

16.3m

people

Active Digital

Media Universe

2,927

Web page

views per

person

73.2

Visits per

person

45.4bn

Total page

views 26.2bn

Total

minutes


27


Are Men slower than Women?

Men Women

% of online Australians

Average pages viewed per month

# visits per month

Average PC time per

month

50% 50%

2836 3017

74 72

74hrs 69hrs

“Whilst men spend significantly longer online per

month, women have higher activity rates”


28


Over 35

Below 35

Under 35

40%

60%

“The Internet now has more people age

35+ using it than those below 35”


“The Internet now appeals to the higher

income, more established over 35s”

The Web has shed its younger skew

30


AUS Online Landscape; Top Brands

Rank Name

Unique

Audience

[000]

Population

Reach

(%)

Time

per Person

(hh:mm:ss)

1 Google 14,384 65.65 1:40:23

2 Facebook 11,482 52.40 7:23:42

3 NineMSN/MSN 11,123 50.77 1:32:08

4 YouTube 9,067 41.38 0:56:44

5 Yahoo!7 8,583 39.17 0:55:00

6 eBay 6,826 31.15 1:43:24

7 Blogger 4,348 19.84 0:12:09

8 Ask Search Network 4,274 19.51 0:04:29

9 Amazon 3,046 13.90 0:14:20

10 smh.com.au 3,031 13.83 0:45:15

Online Ratings reports on; 5,707 brands, 43.9 billion online pages,

24.8 billion measured minutes online

Source: Nielsen Online Ratings September 2011

“New methodology did not see a change to the top

10 brands Unique audience rankings”

31


Current Events & Global News – stickiness

0%

5%

10%

15%

20%

25%

0 2 4 6 8 10 12 14 16 18

Visits per Person

Yahoo!7 News - 7News Websites

ninemsn Nine News

BBC

The Age

Heraldsun.com.au

NEWS.com.au

THE AUSTRALIAN

ABC News Websites

thetelegraph.com.au

smh.com.au

Bubble Size = Time per Person

Ac

tive R

eac

h (

%)

“ninemsn Nine News leads the category in reach although smh.com.au has higher visits per person and time per person”


*Stickiness is a custom visualization derived from reach, time and visits – not a standalone metric

How has the end user experience improved?

33


Insights obtained from Nielsen Online Ratings

to enhance your reporting needs

Nielsen Online Ratings

(monthly hybrid)

Market Intelligence mobile, video, online

(daily census)

Audience (people) data

Traffic (tagging) data

Use for

•Total Reach figures

•Demographics

•R&F

•Loyalty

•Time

Use for

•Daily and weekly

data

•Inventory

•Long tail sites

•Mobile MI

34


35


Devices supporting mobility are on the rise

77% of online Australians

access the internet via laptop

(up 4 percentage points)

50% of online Australians

access the internet via mobile

phone

(up 14 percentage points)

93% of online Australians access

the internet via desktop PC

(down 2 percentage points)

Base: Online Australians 16+ (n=5,886) source 2011 Australian Online Consumer Report)

36


Australian’s spend 5.5

hours each week watching

TV shows on the web *(source 2011 Australian Online Consumer Report)

of online Australians now

access audio-visual

content*

70%

Australians love watching video online

37


What makes Online Video Difficult To Measure?

Distributed content presents unique challenges:

• Distributed content is “de-coupled” from the traditional page view measure.

• Difficult to identify specific videos based on stream URL alone

• Content Delivery Networks (ex: Akamai & Limelight) make crediting the source of the video stream URL difficult

• Differences in file detail available (ex: program names, distribution partner)

• Many media formats, stream delivery protocols, and video player technologies

• Increasingly complex syndication models/embeddable players: who gets credit?

38


How do you measure?

VideoCensus is the first syndicated audience measurement product to combine passive and active measurement:

1.Passive Measurement

– Collect and credit streaming video activity using

panel-based stream URL observations

– Does not require client participation

2.Active Measurement: Tagging

– Collect census stream counts & granular detail on

consumption by observing video player-based

communication with Nielsen

– Requires client participation

Hybrid Panel Census

39


Full Market

Coverage

Audience

Overlap

VideoCensus – launching early 2012

Program-level Reporting

40


Internet browsing via mobile is booming

amongst mobile phone users

52%

2009

29%

2010

Base: Online Australians 16+ (n=5,886) source 2011 Australian Online Consumer Report)

41


Mobile continues to grow on a daily basis

source Nielsen Mobile Market Intelligence

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11

+71% 2011

Mobile Market Aggregate; Average Daily Unique Browsers

42


Towards hybrid Mobile Measurement

Mobile Panel (Apple, Google,

RIM)

Tags/

Logs

Mobile Audience

Measurement

Survey

Mobile NetView

Mobile Video Report

43


44


Average weekly hours for different media

activities

21.7

15.1

10.0

7.5

6.0

5.5

4.3

4.0

3.0

3.0

2.7

2.0

17.6

13.4

9.3

6.2

4.6

4.1

3.2

2.5

2.0

0 5 10 15 20 25

Internet

Watching TV through a television set (2009)*/ Broadcast TV (2010)

Radio

Time-shifted TV

Gaming (computer/console)

TV shows or movies downloaded or streamed - unofficial sources

Official TV on-demand or 'catch up TV' services

Online radio

Newspaper

Internet via Mobile

IPTV

Magazine

Hours

2010 2009

During the past

decade, the

average amount of

time spent online

has more than

tripled

Base: Online Australians 16+ who consume the following media in an average week

(n=5,886 in 2010 and n=2,162 in 2009) source 2011 Australian Online Consumer Report)

46


+

Evaluating audience across media platforms

= ? ?

Internet

+

27

15

12

32

34

42

0 10 20 30 40 50

1.3

4

1

1.3

2.6

2.4

Combined TV, Internet &

Cinema

Combined TV & Internet

Combined TV & Cinema

Cinema

Internet

TV

Ave

rage

Op

po

rtu

nity T

o S

ee

% Target Reached

Mobile Internet Users – Weekly Reach

Cinema Television

Summary • Online audience measurement the most accurate and

advanced in 20 years • Australia at the forefront of global technology and

methodology • People-based measurement and metrics • Comparable with other media

– ‘enabler’ for Australian multi channel media companies

• No longer a ‘barrier to entry’ for advertisers into online advertising

• Significant step towards true cross-media measurement • Online will be at the heart of every advertising strategy

and campaign

Questions?

making online measurement make sense - iab …...the nielsen company appointed the sole and...

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