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Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score   measuring online advertising
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Measuring the Effectiveness of Online Advertising: Lessons LearnedCom score measuring online advertising

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Measuring the Effectiveness of Online Advertising: Lessons Learned

Measuring the Effectiveness of Online Advertising: Lessons Learned

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  • 1. Lessons Learned Measuring the Effectiveness of Online Advertising: Gian Fulgoni, Chairman, comScore Todd Curtis, Senior Consumer Insights Manager Digital and Applied Analytics for Marketing Effectiveness, General Mills
  • 2. 2© comScore, Inc. Proprietary and Confidential. Topics  The explosive growth in online advertising  The challenge of accurately measuring its effectiveness  The C-Level challenge: clicks and cookies  One solution: continuous online behavioral panels  Lessons learned
  • 3. 3© comScore, Inc. Proprietary and Confidential. Cross Media Advertising Market Spending: Online Ranked Third Behind TV and Newspapers SOURCE: IAB Internet Advertising Revenue Report, 2009 Full-Year Results, April 2010, IAB & PricewaterhouseCoopers 14.3% share of total
  • 4. 4© comScore, Inc. Proprietary and Confidential. Online Now Equivalent to 28% of TV Ad Dollars and Approaching Cable TV Ad Spending Source: CAB Analysis of Nielsen TV Data Online from IAB / PWC Total TV Cable TV Online $81.9 $25.0 $22.7 Total Ad Spend in 2009 ($Billions)
  • 5. 5© comScore, Inc. Proprietary and Confidential. Search, followed by Display, dominates U.S. online advertising Percent of 2009 Online Advertising Revenue
  • 6. 6© comScore, Inc. Proprietary and Confidential. Display Ad Spending De-accelerated Markedly Under Impact of Recession but Rebounded Strongly in H2 2009 Total Display Ad Spending* in $ Billions and % Chg vs. YA $1.9 $1.9 $1.8 $2.0 $1.9 $1.9 $1.9 $2.3 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 % Chg vs. YA +27% +13% +5%0% +15%0%+0% -4% *Total Display Ad Spending includes banners, rich media, video and sponsorships SOURCE: IAB Internet Advertising Revenue Report, 2009 Full-Year Results, April 2010, IAB & PricewaterhouseCoopers
  • 7. 7© comScore, Inc. Proprietary and Confidential. Number of Online Display Ad Impressions Continues to Surge Through Q2 2010 0 200 400 600 800 1000 1200 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 974 1,050 1,064 1,090 1,173 Millions (+20% Y/Y)
  • 8. 8© comScore, Inc. Proprietary and Confidential. 6% of Branding Dollars Despite having grown to become a major advertising medium, the Internet is lagging badly in capturing branding dollars because of a focus on direct response metrics such as the click Source: Brand.net analysis based on data from Barclays Capital, Think Equity Partners, LLC, and DMA 63% 37% $91B $55B $6B $18B 2009 US Measured Media Spend: $147B Branding Direct Response 30% of DR Dollars
  • 9. 9© comScore, Inc. Proprietary and Confidential. Measuring Advertising Effectiveness: Lessons from the Net: How not to do it …
  • 10. 10© comScore, Inc. Proprietary and Confidential. Click Rates on Individual Campaign Ads are Minimal Source: DoubleClick for Advertisers, U.S. Advertisers, January – December 2009 DoubleClick Rich Media Formats Only A Cross-Section of Major U.S. Verticals 0.15% 0.08% 0.09% 0.06% 0.10% 0.09% 0.10% 0.07% 0.08% 0.09% Auto B2B CPG Financial Services Media/Entertainment Retail Tech Telecom Travel Wellness Click-Through Rate on Individual Ad Campaigns by Industry Vertical for DoubleClick Rich-Media Format
  • 11. 11© comScore, Inc. Proprietary and Confidential. Non- Clickers 84% Clickers 16% Non- Clickers 68% Clickers 32%  Only 16% of internet users clicked on at least one display ad in March 2009, down from 32% two years earlier July 2007 March 2009 Source: comScore, Inc. custom analysis Total U.S. Online Population July 2007 and March 2009 data periods In the U.S., Half as Many Clickers on Any Display Ad in 2009 vs. 2007
  • 12. 12© comScore, Inc. Proprietary and Confidential. But. Agency and Advertisers Still Preoccupied with the Click Source: Feb 2010 Collective Survey of 420 Agency and Advertiser Executives 0% 20% 40% 60% 80% CTR CPC CPA Ability to Drive Brand Awareness Interaction Rate Ability to Drive Brand Favorability 64% 61% 48% 35% 33% 25% What Metrics Do You Use To Evaluate Ad Network Performance?
  • 13. 13© comScore, Inc. Proprietary and Confidential. If Not The Click, Then What? “A click means nothing. A click earns no revenue and creates no brand equity. Your online advertising has some goal – and it’s surely not to generate clicks. You want people to visit your website, seek more information, purchase a product, become a lead, keep your brand top of mind, learn something new, feel differently, etc. Regardless of whether they clicked an ad or not, the key is to determine how that ad unit influenced a consumer to think, feel, or do something they wouldn’t have done otherwise.” John Lowell SVP Director, Research & Analytics Starcom
  • 14. 14© comScore, Inc. Proprietary and Confidential. Clicks on Display Ads Are a Misleading Metric and Don’t Reflect Brand-Building Effects Clicks don’t reflect the cumulative (latent) impact of ads Clicks don’t tell you anything about brand building effects Only use clicks to evaluate direct response ad campaigns (or Search) Evaluate the effectiveness of online ad campaigns using behavioral impact over time 14
  • 15. 15© comScore, Inc. Proprietary and Confidential. Cookie Deletion Creates Havoc in Ad Measurement Cookie deletion creates audience measurement issues Cookie Deletion* Year Method Belden 43% 2004 Survey Nielsen 44% 2005 Survey Jupiter 39% 2005 Survey comScore 31% 2006 Electronic U.S. Forrester 50% 2008 Survey comScore 24% 2009 Electronic Europe * % of responders/users deleting cookies during past month
  • 16. 16© comScore, Inc. Proprietary and Confidential. Deletion Rates Add to the Problem: Number of Different Cookies Per Machine Per Month for Same Site Among Deleters No. of Different Cookies for Same Web Site No. of Different Ad Server Cookies for Same Campaign U.S. 5 7 Europe 4 8 Source: comScore
  • 17. 17© comScore, Inc. Proprietary and Confidential. The Cookie Deletion Problem: Overstated Audiences and Ad Campaign Reach, but Understated Ad Frequency Cookie deletion creates major problems: – 2.5 times overstatement of unique visitors as measured by Web site server logs – 2.5 times overstatement of reach and a similar understatement of frequency in ad server logs
  • 18. 18© comScore, Inc. Proprietary and Confidential. A Solution: Continuous Behavioral Panels That Don’t Use Cookies for Tracking
  • 19. 19© comScore, Inc. Proprietary and Confidential. Powerful Platform from the Industry Leader Global Panel of 2 Million Users, Largest of Its Kind 360° View of Consumer Behavior Advertising Exposure Online / Offline Transactions Search Behavior Demographics Life Stages Online Video Web Visiting and Viewing The Only Global Measurement of Audience and e-Commerce 41 Media Metrix Reported Countries 170+ Countries with Sample Presence Mobile Usage
  • 20. 20© comScore, Inc. Proprietary and Confidential. Measuring the Retail Sales Impact of Online Ad Campaigns  300+ comScore studies conducted to assess impact of paid search and online ads on offline sales  Real world analysis: comScore panelists divided into matched groups (exposed and non-exposed to advertising) – Search only – Display ads only – Search and display ads together – Neither  Passively measured behavior: • Online activity through comScore behavioral panel • Linked to in-store buying through CRM databases, retailer loyalty cards, credit card data, IRI scanner panel  Analytical design compares behavioral changes across exposed and unexposed groups from pre- to campaign time periods
  • 21. 21© comScore, Inc. Proprietary and Confidential. 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”  comScore’s “Whither the Click?” – 300+ comScore studies conducted to assess behavioral impact of paid search and online display ads. 21 Even with Minimal Clicks, Display Advertising can Lift: • Site visitation • Trademark search • Online and offline sales
  • 22. 22© comScore, Inc. Proprietary and Confidential. Display Ads Lift Site Visitation Across All Verticals 4.5% 0.9% 1.3% 0.6% 9.1% 7.0% 5.8% 4.8% 6.6% 1.9% 2.3% 1.1% 13.8% 10.0% 7.2% 5.8% Average, N=139 Automotive, N=38 Finance, N=16 CPG & Restaurant, N=10 Retail & Apparel, N=21 Media & Entertainment, N=24 Electronics & Software, N=14 Travel, N=9 Advertiser Site Reach Weeks 1-4 after first exposure Control Test % Lift: 46% Δ Lift: 2.1% % Lift: 114% Δ Lift: 1.0% % Lift: 86% Δ Lift: 1.1% % Lift: 77% Δ Lift: 0.5% % Lift: 52% Δ Lift: 4.7% % Lift: 42% Δ Lift: 2.9% % Lift: 25% Δ Lift: 1.5% % Lift: 21% Δ Lift: 1.0%
  • 23. 23© comScore, Inc. Proprietary and Confidential. Display ads successfully build retailer sales both online and offline – even with minimal clicks $994 $9,905 $1,263 $11,550 Online Offline $ per 000 Exposed Control Test % Lift: 27.1% % Lift: 16.6% % Lift: 27% % Lift: 17% Source: comScore “Whither the Click?” Journal of Advertising Research June 2009
  • 24. 24© comScore, Inc. Proprietary and Confidential. Measuring Advertising Effectiveness: An Advertiser’s Perspective …
  • 25. 25© comScore, Inc. Proprietary and Confidential. TV – Ad Development Process Target & Insight Idea Creative Media Plan In-Market Purchase
  • 26. 26© comScore, Inc. Proprietary and Confidential. Digital – Ad Development Process Target & Insight Idea Creative Media Plan In-Market Purchase
  • 27. 27© comScore, Inc. Proprietary and Confidential. In-Market Key Questions to Answer Media Reporting – Did the advertising reach the targeted audience? – What websites displayed the ad? Effectiveness and Efficiency – Did the campaign drive purchasing? – What is the ROI? – Why? What’s next?
  • 28. 28© comScore, Inc. Proprietary and Confidential. Media Reporting – As Early as Possible Do you know who saw your ad?
  • 29. 29© comScore, Inc. Proprietary and Confidential. Media Reporting – As Early as Possible Do you know where your ad is displayed? Viagra.com Allgals.com Adultvideo.com Spankwire.com XXXMatch.com
  • 30. 30© comScore, Inc. Proprietary and Confidential. Media Reporting Metrics Key Metrics – Developing…which ones matter?  Total Impressions  Unduplicated Reach  Frequency  Demo Impressions  Target  US (Local Country) 20% 12% 14% 9% 6% 4% 7% 4% 24% 1 2 3-4 5-6 7-8 9-10 11-15 16-20 21+ Campaign Frequency Example Experimenting with others…  GRPs: Household, individual, targeted  High value task, social media, earned media impressions  Impressions by geography
  • 31. 31© comScore, Inc. Proprietary and Confidential. Did the Campaign Drive Purchase? Purchase is stronger than stated intentions Effectiveness – Test/Control (Single Source) – Newer touch points – Marketing Mix -- Large spends by campaign Why? – Online advertising trackers – Custom surveys – Result Roll-ups
  • 32. 32© comScore, Inc. Proprietary and Confidential. Media Measurement Evolution Experimental Commercialization • Digital Video • Social Media • Viral/Earned • Mobile •Paid Search • TV • FSI • Promotions • Print • Radio Measurement Continuum Usage •Digital FSI •Digital Banner •Relationship Marketing •Rich Media • Scale increases need for measurement precision
  • 33. 33© comScore, Inc. Proprietary and Confidential. comScore -- 82% of Online CPG Brand Campaigns Increased Sales  Average $ Sales lift in retail stores was 22%  Campaigns comScore has analyzed … – Pizza, Snack Bars, Pasta, Meals, Cereal, Frozen Snacks, Tea, Cookie Mixes, Toothpaste, Juice Drinks, Deodorants, and more Average $ lift was 22% 82% of campaigns showed a positive sales lift Percent Lift in Dollar Sales No. of Offline Sales Effectiveness Studies Source: comScore CPG Ad Effectiveness Study
  • 34. 34© comScore, Inc. Proprietary and Confidential. Short Term Offline CPG Brand Sales Lift From Online Advertising Matches Longer Term TV Impact: TV (BehaviorScan) Internet (comScore) +8% +9% BehaviorScan tests conducted over one year period comScore studies over three months* *Assumes 40% HH Internet Reach Against Target Hypothesis: More precise targeting ability of the Internet allows more impressions to be delivered against target audience in a given period of time
  • 35. 35© comScore, Inc. Proprietary and Confidential. Effectiveness Drivers (Digital)  Standard ROI principles apply  Business size, seasonality, etc  US Impressions  Reach your target  Frequency: 5-10 impressions per campaign  Digital is scalable  Strength of branding, message, creative, and placement
  • 36. 36© comScore, Inc. Proprietary and Confidential. Creative Power: Over 50% of the impact of advertising is driven by the strength of creative Ad Quality 52% Media Weight 13% Other 35% *Quality of creative is based on ARS Persuasion Score which measures changes in consumer preference through a simulated purchase exercise with and without exposure to the creative . comScore ARS Global Validation Summary includes an evaluation of 396 TV ad campaigns, utilizing sales data from R. L. Polk New Vehicle Registration, IMS HEALTH, IRI InfoScan, Markettrack, Nielsen SCANTRACK or Nielsen Retail Index. Media Weight = Medi Plan elements, such as GRPs, wearout & continuity/flighting of airing Ad Quality = quality of the creative based on ARS Persuasion Score*. % Influence on Market Share Shifts Source: Source: comScore ARS Global Validation Summary Creative is 4x More Impactful in Influencing Sales Than Planning Variables Numbers represent the percent variance in market share shifts explained by the corresponding factors.
  • 37. 37© comScore, Inc. Proprietary and Confidential. Five Universal Truths about the Role of Creative in Advertising Getting Creative Strategy Right from the Start Is Critical Consider the Sum of the Parts as a Key Part of the Creative Process Sound Creative is Critical, but Context Matters Too The Importance of Emotion Cannot Be Ignored Manage Advertising Wearout to Maximize Effectiveness
  • 38. 38© comScore, Inc. Proprietary and Confidential. What’s Next … Continued measurement experimentation across touch points – Online video – Earned media – Paid search – Rich media – High value tasks – Gaming How do consumer touch points work together?
  • 39. 39© comScore, Inc. Proprietary and Confidential. How Do Media Vehicles Work Together? TV FSI Radio Internet Mobile Earned Media Direct Mail Package Trade Print In-StoreRelationship Marketing •Cross media interactions provide additional insights
  • 40. 40© comScore, Inc. Proprietary and Confidential. Industry Needs Tools to track complete digital efforts Strong partnerships for data integration and single source experimentation
  • 41. 41© comScore, Inc. Proprietary and Confidential. Thank You!

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