Como A Publicidade Online Realmente Funciona, por Gian Fulgoni

How Online Advertising Works Gian Fulgoni, Chairman, comScore, Inc. Digital Age 2.0 Sao Paulo, August 27, 2009

Topics Who is comScore? State of Online Advertising Today Online Display Advertising and the Relevance of the Click The View-Through Impact of Display Advertising © comScore, Inc. Proprietary and Confidential. 2

Who is comScore? A leader and innovator in Internet audience measurement Corporate headquarters: Reston, USA – Offices in London, Paris, Tokyo, NYC, Chicago, San Francisco, Seattle Toronto, Dusseldorf, Singapore Year founded: 1999 Current employees: 500+ Successful IPO (NASDAQ: SCOR) June 2007 Number of clients: 1,200+ (200+ advertising agencies) The world’s recognized source for Internet audience intelligence – Monthly reporting on 40 countries, powerful interface & analytic tools – Hundreds of custom research studies completed each year for advertisers, publishers – Leading source for US e-commerce data, online behavior, video, mobile, widgets etc. – comScore data cited 200 times per day in the global media 100% digital DNA © comScore, Inc. Proprietary and Confidential. 3 3

comScore’s Powerful Platform: Global Panel of 2 Million Internet Users Largest of Its Kind The Only Global Measurement of The Only Global Measurement of 360° View of Consumer Behavior 360° View of Consumer Behavior Audience and e-Commerce Audience and e-Commerce Web Visiting Web Visiting and Viewing and Viewing Demographics Demographics Online Online Life Stages Life Stages Transactions Transactions Streaming Streaming Search Search Video Video Behavior Behavior 37 Media Metrix Reported Countries Plus Global Regions Media Media Exposure Exposure 170+ Countries with Sample Presence © comScore, Inc. Proprietary and Confidential. 4

How Online Advertising Works The State of Online Advertising Today © comScore, Inc. Proprietary and Confidential. 5

Online Display Advertising in Brazil Growing Very Strongly Brazil Online Display Ad Spend $R ‘000 Source: IAB +44% vs. YA © comScore, Inc. Proprietary and Confidential. 6

Online display advertising accounts for 4% of all media spending in Brazil (7% with search) but lags TV which accounts for 60% Including search, online advertising estimated to be 7% of all media © comScore, Inc. Proprietary and Confidential. 7

In the U.S., Internet was 8% of all advertising spending and 34% of all TV ad dollars in 2008. Source: IAB 2008 Spending ($Billions) MEDIUM Percent Direct Mail $60.0 20% Newspapers $34.4 12% TV - Distribution $28.8 10% Internet $23.4 8% TV Networks - Cable $21.4 7% TV Networks - Broadcast $18.0 6% Radio $17.2 6% Yellow Pages $13.8 5% Consumer Magazines $12.7 4% Trade Journals $10.0 3% Out of Home $7.2 2% Miscellaneous $50.0 17% TOTAL $296.8 100% © comScore, Inc. Proprietary and Confidential. 8

U.S. Internet Ad Revenues Surged in 2007 but Growth Slowed in 2008 and Went Negative in 2009 Quarterly Ad Revenue ($Billions) 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 Q1 Q3 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 98 99 00 01 02 03 04 05 06 07 08 09 © comScore, Inc. Proprietary and Confidential. 9

Growth in U.S. Online Ad Spending Went Negative in Q1 2009 $ Billions and % Chg vs YA +29% +27% +23% +13% +11% +3% -5% Source: PricewaterhouseCoopers and the Internet Advertising Bureau (IAB) © comScore, Inc. Proprietary and Confidential. 10

Online Advertising is Leaving Branding Dollars on the Table 2008 U.S. Measured Media Spend: $186 Billion Branding $118 B 2008 U.S. Online Media Spend: Online as Percent of Total $26 Billion 5% $6 B 30% $20 B Response Direct $68 B Source: Lehman Brothers, ThinkEquity Partners © comScore, Inc. Proprietary and Confidential. 11

How Online Advertising Works Display Advertising and the Relevance of the Click © comScore, Inc. Proprietary and Confidential. 12

Business Week: So Many Ads, So Few Clicks Forrester: 35% of Marketers still use click for evaluating branding campaigns Source: DoubleClick DART for Advertisers, January – July 2008 © comScore, Inc. Proprietary and Confidential. 13

Ad Clickers Follow the 80/20 Rule Source: comScore Natural Born Clickers (2008) • Despite only representing 16% of the Internet population, moderate to heavy clickers account for 80% of display ad clicks • Clickers are predominately younger (24-44 age range) • Clickers tend to be lower income (under $40K) • Two-thirds of Web users don’t click Click Frequency © comScore, Inc. Proprietary and Confidential. 14

How Online Advertising Works The View-through Impact of Display Advertising © comScore, Inc. Proprietary and Confidential. 15 15

June 2009 Journal Of Advertising Research: comScore’s “Whither the Click?” Journal of Advertising Research “What We Know About Advertising: 21 Watertight Laws for Intelligent Advertising Decisions” – The 21 most important pieces of advertising research comScore’s “Whither the Click?” – 200+ comScore studies conducted to assess impact of paid search and online display ads on: • site visitation • trademark search • online and offline sales © comScore, Inc. Proprietary and Confidential. 16 16

comScore’s Analytical Design Real world analysis: comScore panelists divided into matched groups (exposed and non-exposed to advertising) – Search only – Display ads only – Search and display ads – Neither Passively measured behavior, no surveys involved: – Online activity through comScore behavioral panel – Linked to in-store buying through retailer loyalty cards and POS scanner data Analytical design compares behavioral changes in test and control groups from pre-campaign to campaign time periods © comScore, Inc. Proprietary and Confidential. 17

The impact of display ads on site visitation: There is a significant impact within the 1st week, with a substantial lift being observed over the four weeks following initial ad exposure …..even with minimal clicks Results from 139 comScore Campaign Effectiveness Studies A d ve rtis e r S ite R e a c h 6.6% 5.8% 4.8% 4.5% 3.9% 3.5% 3.1% 2.1% % Lif t: 65.0% % Lif t: 53.8% % Lif t: 49.1% % Lif t: 45.7% W eek o f f irs t W eeks 1-2 af ter W eeks 1-3 af ter W eeks 1-4 af ter ex p o s ure f irs t ex p o s ure f irs t ex p o s ure f irs t ex p o s ure Co ntro l Tes t © comScore, Inc. Proprietary and Confidential. 18 18

Display Ads Lift Site Visitation Across All Verticals A d v e r tis e r S ite R e a c h W e e k s 1 -4 a fte r fir s t e x p o s u r e 4.5% % L i f t: 4 6 % A v e ra g e , N = 1 3 9 ? L if t: 2 .1 % 6.6% 0.9% % L i f t: 1 1 4 % A u t o m o t iv e , N = 3 8 ? L i f t: 1 .0 % 1.9% 1.3% % L if t: 8 6 % F in a n c e , N = 1 6 ? L i f t: 1 .1 % 2.3% 0.6% % L if t: 7 7 % C P G & R e s t a u ra n t , N = 1 0 ? L i f t: 0 .5 % 1.1% 9.1% % L i f t: 5 2 % R e t a il & A p p a re l, N = 2 1 ? L if t: 4 .7 % 13.8% 7.0% % L i f t: 4 2 % M e d ia & E n t e rt a in m e n t , N = 2 4 ? L i f t: 2 .9 % 10.0% 5.8% % L i f t: 2 5 % E le c t ro n ic s & S o f t w a re , N = 1 4 7.2% ? L if t: 1 .5 % 4.8% % L i f t: 2 1 % Tra v e l, N = 9 5.8% ? L i f t: 1 .0 % C o n tro l T est © comScore, Inc. Proprietary and Confidential. 19

Display ads successfully lift trademark search activity Results from 139 comScore Campaign Effectiveness Studies % Making a TM/Brand Search 0.9% 0.7% 0.6% 0.5% 0.5% 0.4% 0.3% 0.2% % Lif t: 52.3% % Lif t: 46.0% % Lif t: 40.3% % Lif t: 38.1% Week o f f irst Weeks 1-2 af ter Weeks 1-3 af ter Weeks 1-4 af ter exp o sure f irst exp o sure f irst exp o sure f irst exp o sure Co ntro l Test © comScore, Inc. Proprietary and Confidential. 20

Display ads successfully build sales…. both online and offline $ per 000 Exposed % L if t : 1 6 . 6 % $11,550 $ 9 ,9 0 5 % L if t : 2 7 . 1 % $994 $ 1 ,2 6 3 O n li n e O f f lin e C o n t ro l Te s t © comScore, Inc. Proprietary and Confidential. 21

For multi-channel retailers, higher OFFLINE sales lifts are seen from search vs. display advertising, but combined, synergy provides an even greater lift Incremental Lift in Retailers’ Offline Sales per (000) Exposed Source: comScore Ad Effectiveness Solutions +119% © comScore, Inc. Proprietary and Confidential. 22

For multi-channel retailers, the higher reach of display ads often helps lift total offline sales more than does search. But, synergy gains can be obtained by using display overlaid on a search campaign • The overall number of people reached by display ads is typically much higher than search • As a result, even though the sales lift among those exposed to a search ad is higher, the total dollar sales gained from display ads is often larger than search due to the smaller lift acting on a larger base % of Households Reached Incremental Impact on Offline Sales per (000) Exposed Total Sales Volume Lift Index 198 +11% Note: 0 equals par in above chart. © comScore, Inc. Proprietary and Confidential. 23 Source: comScore Ad Effectiveness Solutions

82% of Online Ad Campaigns Measured by comScore have Generated an Average Lift of 22% in CPG Brand Sales in Retail Stores Campaigns we have analyzed: – Cookie Mixes, Cereal, Frozen Snacks, Pizza, Tea, Toothpaste, Juice Drinks, Deodorants, Snack Bars, Pasta, Meals and many more Online advertising (banners and rich media) increased (i.e. lifted) offline sales in 80% of all campaigns 100% 80% 60% Percent Lift in Average $ lift was22% Dollar Sales 40% 20% 82% of campaigns showed a positive sales lift 0% Offline Sales Effectiveness Studies -20% © comScore, Inc. Proprietary and Confidential. 24 Source: comScore CPG Ad Effectiveness Study 24

Preliminary comScore Findings: Short Term Retail CPG Brand Sales Lift From Online Advertising Matches Long Term TV Impact BehaviorScan tests conducted over one year period. comScore studies over three months Assumes 40% Internet Reach Against Target © comScore, Inc. Proprietary and Confidential. 25

How Online Advertising Works: Summary Forget the Click Focus on sales or behavioral impact over time Online branding campaigns can be very effective: – Internet sales impact at retail on a par with TV Use R / F metrics in pre-planning and post-analysis of media plan Don’t forget importance of creative © comScore, Inc. Proprietary and Confidential. 26

How Online Advertising Works For a copy of “Whither the Click?” or this presentation please e-mail: brazil@comscore.com For a schedule of webinars, complimentary data & press releases please visit: www.comscore.com © comScore, Inc. Proprietary and Confidential. 27

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Como A Publicidade Online Realmente Funciona, por Gian Fulgoni

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Como A Publicidade Online Realmente Funciona, por Gian Fulgoni — Presentation Transcript