Audience r&f gr ps online ad campaigns

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

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Audience r&f gr ps online ad campaigns

  1. 1. 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
  2. 2. Discussion topics <ul><li>Online media: “The best of worlds and the worst of worlds” </li></ul><ul><ul><li>Online as the “media darling”…online’s share of total ad spend continues to grow </li></ul></ul><ul><ul><li>But CPMs and click-through rates are declining and leading brand advertisers question if online can nurture their brands </li></ul></ul><ul><ul><li>“ The most measureable medium” has some shortcomings </li></ul></ul><ul><li>Desperately seeking true cross-media metrics </li></ul><ul><li>Introducing Nielsen Online Campaign Ratings </li></ul><ul><ul><li>The strengths and weaknesses of panels in the online space </li></ul></ul><ul><ul><li>Collaborating with the industry’s largest registered user databases </li></ul></ul><ul><ul><li>Comparing online to traditional media with consistent metrics </li></ul></ul>
  3. 3. Nielsen Online Campaign Ratings Online advertising continues impressive growth trajectory
  4. 4. Nielsen Online Campaign Ratings In 2010, Internet ad spend surpassed newspaper, after passing cable
  5. 5. May 24, 2011 Nielsen Online Campaign Ratings But why have the big ad-spending industries been slow to join the party?
  6. 6. The unmeasured 99.9% Nielsen Online Campaign Ratings “ 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.
  7. 7. Nielsen Online Campaign Ratings Industry associations are grappling with online media’s metric challenge <ul><li>Leading advertising trade groups working together to develop digital metrics and cross platform measurement solutions </li></ul><ul><li>Looking to drive better marketing and media management decisions </li></ul>
  8. 8. Nielsen Online Campaign Ratings 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
  9. 9. Notes: <ul><li>Audience metrics for online ad campaigns are lacking </li></ul><ul><li>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 </li></ul>Nielsen Online Campaign Ratings
  10. 10. Challenges in online measurement Nielsen Online Campaign Ratings <ul><li>Audience measurement metrics needed: </li></ul><ul><ul><li>Accurate reach and frequency </li></ul></ul><ul><ul><li>Measure people, not machines </li></ul></ul><ul><ul><li>Unbiased, consistent measurement </li></ul></ul><ul><ul><li>Comparability with other media </li></ul></ul><ul><li>Impressions are a weak measurement </li></ul><ul><ul><li>Measures only volume, not audience </li></ul></ul><ul><ul><li>Not comparable to other media </li></ul></ul><ul><ul><li>Creates discrepancies between Buy and Sell </li></ul></ul><ul><ul><li>Does not tie back to planning criteria </li></ul></ul>
  11. 11. Current measurement approaches fall short Nielsen Online Campaign Ratings Traditional Panel Approaches Ad Servers Cookie-Based Ascription Sample Coverage Low single digits (<2-3%) Scalability Requires large campaign size Delivery Usually post-campaign due to small sample coverage Comparability Only Nielsen has direct integration with “currency” data Demo Reporting Demographic reporting does not exist Unique Audience Counts Third-party cookies are prone to error Comparability Not comparable to other media Sample Coverage Not verifiable Primary Data Source Extrapolations and modeled data Unique Audience Counts Third-party cookies prone to error Comparability Not comparable to other media
  12. 12. Nielsen approach to advertising effectiveness Nielsen Online Campaign Ratings WHO DID MY CAMPAIGN REACH? WHAT IMPACT DID IT HAVE ON MY BRAND? WHAT DID IT MOTIVATE THEM TO DO? Nielsen Online Campaign Ratings
  13. 13. What is Nielsen Online Campaign Ratings? <ul><li>Provides a new, highly accurate method to identify and measure audiences exposed to online ad campaigns </li></ul>Nielsen Online Campaign Ratings 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
  14. 14. How it works Nielsen Online Campaign Ratings Data Provider: A registration web site that has agreed to share a demographic sample with Nielsen to aid in measurement. Panel Calibration Factors: F actors from the Nielsen Cross-Platform panel used to calibrate and correct for bias in the Data Provider sample.
  15. 15. Notes (1): <ul><li>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. </li></ul><ul><li>Facebook is our first data provider, but over time Nielsen will add additional premium web publishers to act as data providers. </li></ul><ul><li>Starting in the top left corner, all ad units in the campaign are tagged with the Nielsen pixel tag </li></ul>Nielsen Online Campaign Ratings
  16. 16. Notes (2): <ul><li>The ad renders in the user’s browser, and the tag fires first to Nielsen servers, where a census level count of impressions occurs. </li></ul><ul><li>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. </li></ul>Nielsen Online Campaign Ratings
  17. 17. Notes (3): <ul><li>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. </li></ul><ul><li>Finally the data provider summarizes the data into aggregated, de-identified summary files, and sends to Nielsen. </li></ul>Nielsen Online Campaign Ratings
  18. 18. Notes (4): <ul><li>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. </li></ul><ul><li>To project to the full audience, Nielsen calibration factors are used to correct for bias in the Data Provider sample. </li></ul>Nielsen Online Campaign Ratings
  19. 19. Sample audience report Nielsen Online Campaign Ratings Women’s Personal Care Product Campaign Target: Females 18-34 23% of delivery reached the target audience 51% of audience was Male
  20. 20. Notes: <ul><li>This is an example of the standard Audience Report. </li></ul><ul><li>This report is from an actual campaign in our beta program for a CPG product intended for women age 18-34. </li></ul><ul><li>The report shows that 23% of the impressions delivered reached the intended audience. </li></ul><ul><li>Over half of the campaign impressions were delivered to Men. </li></ul>Nielsen Online Campaign Ratings
  21. 21. Key benefits of this approach Nielsen Online Campaign Ratings 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.
  22. 22. <ul><li>Methodology/technology validation </li></ul><ul><li>Client trials </li></ul><ul><li>Benchmarking </li></ul><ul><li>Objectives </li></ul>Beta program Nielsen Online Campaign Ratings <ul><li>High sample coverage (42% on average) </li></ul><ul><li>Test campaigns/publishers exhibited varying levels of success in delivering target audiences </li></ul><ul><li>Average frequencies varied widely across demographic groups </li></ul>Learnings The combination of sites across many campaigns resulted in hundreds of individual campaign * site observations for this analysis. Total Non-Facebook campaign = ~40 <ul><li>25+ advertisers </li></ul><ul><li>150+ publishers </li></ul><ul><li>80+ campaigns </li></ul>Key Statistics
  23. 23. <ul><li>Finding : Individual sites within a single campaign often delivered the target audience with differing degrees of precision </li></ul><ul><li>In the example campaign below, the overall campaign % On-Target was 32%, with individual sites as high as 60% and as low as 18% </li></ul>Key finding from beta test: Dramatic variability in reaching target audiences Nielsen Online Campaign Ratings Target Audience: Males 25-49
  24. 24. Nielsen approach to advertising effectiveness Nielsen Online Campaign Ratings WHO DID MY CAMPAIGN REACH? WHAT IMPACT DID IT HAVE ON MY BRAND? WHAT DID IT MOTIVATE THEM TO DO?
  25. 25. Resonance: Nielsen Online Brand Effect Nielsen Online Campaign Ratings <ul><li>Nielsen Online Brand Effect measures attitudinal impact of online ads via polls on Facebook </li></ul><ul><li>Leverages the same tag employed for Nielsen Online Campaign Ratings </li></ul><ul><li>Shared measurement platform results in synchronized demos for Nielsen Online Brand Effect and Nielsen Online Campaign Ratings </li></ul><ul><li>Fast, high quality metrics </li></ul><ul><li>Consistent with Nielsen Online Campaign Ratings </li></ul>
  26. 26. Notes: <ul><li>Brand Effect is a second solution from Nielsen that leverages a partnership with Facebook. </li></ul><ul><li>This product measures ad campaign resonance via surveys delivered on the Facebook platform. </li></ul><ul><li>This product shares a common tag with OCR. </li></ul>Nielsen Online Campaign Ratings
  27. 27. Reaction: Nielsen Catalina Solutions Nielsen Online Campaign Ratings <ul><li>National Media Consumption </li></ul><ul><li>National Television Panel </li></ul><ul><li>National Internet Panel </li></ul><ul><li>Cable Set Top Box Data </li></ul><ul><li>Direct Match (online publishers, mobile, etc) </li></ul>Actual Consumption of Goods <ul><li>National Data Set (+60MM HHs) </li></ul><ul><li>Homescan Multi-Outlet Panel </li></ul>What people WATCH What people BUY Anonymously linking consumers’ television, online and mobile media usage with actual household purchase behavior Anonymous Single Source Database
  28. 28. Key Takeaways <ul><li>Advertisers need to look beyond the standard metrics to evaluate the impact of their online media campaigns </li></ul><ul><li>Nielsen Online Campaign Ratings delivers enhanced accountability to the online advertising space </li></ul><ul><li>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 </li></ul><ul><li>Advertisers can understand true audience composition and size, both in-flight and post-campaign </li></ul>Nielsen Online Campaign Ratings
  29. 29. Today’s presenters Nielsen Online Campaign Ratings Charles Buchwalter Senior Vice President, Nielsen Online Campaign Ratings Mark Kalus Director, Product Management, Nielsen Online Campaign Ratings
  30. 30. Notes (1): <ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>Nielsen Online Campaign Ratings
  31. 31. Notes (2): <ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>Mark holds an M.B.A from New York University, Stern School of Business; and a B.S. in Marketing from Xavier University. </li></ul>Nielsen Online Campaign Ratings
  32. 32. Q&A Nielsen Online Campaign Ratings <ul><li>Thank you for attending. </li></ul><ul><li>If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative. </li></ul><ul><li>If you are not a current Nielsen client, please contact us by phone or email: </li></ul><ul><li> Phone: 800-553-3727 </li></ul><ul><li> email: [email_address] </li></ul><ul><li>OR if you have any questions regarding the content of this webinar, you can also contact: </li></ul><ul><li> Charles Buchwalter, email: [email_address] </li></ul>

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