Vital Signs
Media measurement &
engagement
Eleanor Baird
Mídia Master Conference
June 1, 2008
1

Purpose of this Presentation:
A case for change
• Show how changes in audience behavior create urgency to
re-examine the measurements publishers and advertisers use
• Argue that our reasons for measuring and our desired outcomes should be
closely connected & align incentives for advertisers, publishers and
audiences
• Propose a framework for discussing “engagement” across platforms
• Discuss early engagement metrics through case studies
• Suggest steps for the future
• Pose questions for future consideration and investigation
2

How I Got Here: My two roles at MIT
MBA Candidate, Class of 2008
Thesis on targeted online advertising
Graduate Student Researcher
Work on metrics, social media, digital marketing
3

The Challenge: finding the right metrics to ensure
sustainabillity in the face of rapid change
balanced
cost effective
cross-platform timely
fair
meaningful
protected consistent
f l e x i b l e
4

The U.S. Market as a Case Study in Changing
Metrics and Shifting Dynamics
shifts in “traditional”
audience’s “traditional” media outlets
media media outlets propose
consumption can’t offer alternative
& same audience metrics;
participation reach change value
patterns proposition
advertisers
?
look for
fragmentation
alternative
across multiple
publishers
channels, new
publishers &
outlets begin to
technologies
acquire
emerge
emerging
companies
5

The Argument: The reasons and the outcomes
need to connect to create value & align interests of
advertisers, publishers and (ideally) audiences
Reasons we measure Outcomes we want
Monetizing Branding
the right measure of Lead
Engagement generation
would align
Balancing incentives and risks
across platforms Direct
response
Purchase
Understanding
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Reasons for measuring media are interrelated,
address need to monetize, balance, understand
• Generate revenue from content
Monetizing • Know what you are buying/selling
• Differentiate offerings from competitors’
• Allocate risk and reward to advertisers, publishers
Balancing • Determine content to advertising proportions
• Establish value and price
• Know the customer segment to target effectively
Understanding • Map media usage, affinity, engagement
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Ways we measure capture one type of audience
(re)action over another and assess the costs
Lead Direct
Branding
generation response
Consumption: reach & Possibility: targeting & Replies: expressions of
goal frequency opportunities interest & purchase
Cost per click (CPC),
currency Cost per thousand Cost per lead (CPL), Cost per sale (CPS)
type impressions (CPM) Cost per interaction
(CPI)
risk Advertisers -> high Advertisers -> medium Advertisers -> low
profile Publishers -> low Publishers -> medium Publishers -> high
Degree of targeting
possible reduces risk Conversion rate of
other to advertiser, this, with leads generated, linked
points scarcity, can increase assessments after the
the price; brand recall lead is created
surveys used ex-post
8

Industry definitions of “engagement” are more
focused on the consumer’s actions across media
Consumption Sharing
time spent embedded content
related content accessed forwarded content
frequency of viewings posted content
focus moves from consumption and
Purchase
stimulus response metrics to advocacy
& Viewing
Participation
and interaction Advocacy
metrics
discussion with other
satisfaction/liking
consumers/fans
recommendations
related content created
reviews
interaction with producers
9

The Implication: Consumer voices are louder and
clearer in media measurement, messages become
more targeted, data improves incentive alignment
• Measurement beyond what is watched and consumed, better sense of cause
and effect in consumer behavior
• Focus on data-driven decision making, competitive advantage in the speed,
accuracy of analysis from volume of data over time, processing power
• Targeting segments of like-minded consumers over broad demographic
groups
• Shifting assessments of CLV
• Measurement of both costs and change over time
• More data from more sources enhances both information quality and
accountability
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Technology and certain marketing techniques
already facilitate data collection & targeting
• Coupons and promotional codes
• Consumer databases
• (Online) Surveys
• Census and other research data
• Cookies
• Profiles
• Digital television
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Case studies: The Hills & American Idol
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The Challenges
• Protecting privacy and maintaining trust of consumers
• Gaining acceptance for a new metric as a “currency”
• Managing and interpreting data efficiently and effectively; choosing the right
segments
• Determining which activities or groups to track, and focus on cost versus
other, “softer” factors, assigning values
• Researching the relationship between engagement with content and
engagement with advertising and applying it in setting prices and
communicating with audiences
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Creating a Single Engagement Metric: First steps
• Collaborate
• Select components for each category
• Determine weights
• Determine measurement units (R$?, % change?/buzz, advertiser product
sales?)
• Choose segments, timeframes
• Decide collectively if measuring engagement in content or advertising, or
what the relationship between them could be
• Start a dialog with the audience
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The Incentive: Create new value and expand the
potential earnings of publishers and advertisers
• Targeting effectively reduces “wasted” advertising, increases value of
relevant inventory
• Maintaining relationships reduces cost of acquiring new consumers, builds
loyalty and encourages word of mouth
• Understanding consumers’ motivations can help improve both publishers’
and advertisers’ product development, operations, and the bottom line
15

Future and Final Thoughts
• This is a long-term proposition, and may enhance rather than replace existing
measures, depending on how the media system evolves
• Relationship management over transaction management
• Need to rethink how we link business objectives to media use
• Inclusion of consumers in the conversation becomes critical - may move to
an opt-in system
• Increasingly global media could pose challenges in establishing meaningful
metrics
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Contact
Eleanor Baird
eleanor@sloan.mit.edu
Skype: eleanor.baird
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Appendix: Eggo example
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Appendix: An attempt using the % change
model, single program against multiple
media forms
4 equally important “engaged”
...could translate to ...and be measured with
Behaviors & Attitudes
Share of media interaction In week share of demo(s)/ Nielsen ratings, census-
time behavioral groups style viewing data
Network site ad supported
Views online
streams
% change in
Purchasing patterns C3 rating Nielsen Ratings
Sponsor product sales Nielsen, Retailers
Retention/Repeat interaction Program content & merch. sales Billboard, Amazon, Studios
Change in weekly rating Nielsen Ratings
BuzzMetrics, Hey Nielsen, You
Social interactions Conversation & buzz
Tube, Facebook, MySpace
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Appendix: An attempt using the % change
model, single program against multiple
media forms
}
In week share of demo(s)/ behavioral 0.125 * % change in share of demo
groups
25%
Views online 0.125 * % change in share of demo on site
}
0.125 * % change in demo C3 rating
C3 rating
25% 0.125 * % change in product sales
Sponsor product sales
}
Program content & merch. sales 0.125 * % change in sales of DVDs (retail), downloads (iTunes, Amazon
Unbox) and program merchandise (retail)
25% 0.125 * % change in weekly rating
Change in weekly rating
0.05 * % change in blog activity
Conversation & buzz
}
25% 0.05 * % change in YouTube views of program clips
0.05 * % change in YouTube views of sponsor ad clips
0.1 * % change in top 5 fan group membership in Facebook, MySpace
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