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Reaching the Right Audiences Online:Early Findings from Nielsen Online Campaign Ratings                                   ...
substantially better positioned than             understand the web, as well as make it       percent of the impressions a...
Table 1                                              Audience Reach Percentage                                            ...
About This White Paper                      About NielsenThe data and insights in this white paper   Nielsen Holdings N.V....
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Nielsen online campaign ratings reaching audiences online


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  1. 1. Reaching the Right Audiences Online:Early Findings from Nielsen Online Campaign Ratings Some publisher business models are Marketers, especially brand advertisers, need a simple and just naturally well-suited for this. For consistent way to measure the combined reach of TV, the web example, websites like ESPN, Facebook, The New York Times, The Wall Street and mobile advertising to determine marketing ROI. It all comes Journal, Yahoo, and others all have high down to a few simple questions: How many people saw my ad? quality registration data and relatively How many times? Who are they? Getting accurate answers has high levels of user authentication. its challenges depending on the medium. Online, with underlying 2. Prove (and improve) your advertising effectiveness. Reaching the right technology that’s unlike any other medium, can more effectively audience is not enough – publishers control who gets served what ad. But, despite these technological must prove the effectiveness of the advances, understanding the demographics of the people behind advertising running on their websites. Just think of the complexity facing all those page views presents a new set of questions. advertisers. As more and more forms Since its launch in mid-August, Nielsen Online Campaign Ratings™ of advertising emerge on the web, marketers are left puzzling over which has been tracking the day-to-day performance of numerous format works best for their particular online campaigns from some of the world’s largest advertisers. need and budget. When is a sponsored Early results indicate that there is definite room for brands to tweet more cost-effective than a Hulu pre-roll? Are 10 banner ad exposures improve their media buys. Through Nielsen’s analysis of campaigns worth more or less to a brand than a that have run to date, three key findings have emerged: mention in a friend’s social media 1 newsfeed? These are the questions that Some online publishers appear better positioned to deliver confront advertisers, and publishers desired audiences. who provide trustworthy data on effectiveness are likely to separate 2 Advertisers have much to gain from further improvement in reaching their intended demographic audience and driving accountability on delivery. themselves from the competition. Once you initially measure the effectiveness of your ad units, experiment to create increasingly more effective units or 3 High campaign impressions don’t necessarily result in high placements. reach. 3. Think media mix. Most major brands spend a lot more on TV today than they do on the web. Smart publishersOpportunities for publishers establish confidence in a world of increasing advertiser expectations: recognize this and work hard to show advertisers how their website worksPublishers 1. Know your user. Websites with with the established TV campaign to build reach or frequency, or enhanceNielsen research shows that many online accurate user data and a high level of overall campaign effectiveness. As acampaigns are struggling to reach the user authentication are best able to whole, however, the Internet makes itadvertisers’ desired audiences, but some meet advertiser expectations. This is just quite difficult for advertisers to knowweb publishers are beginning to separate common sense – if a publisher knows how the web and TV (not to mentionfrom the pack. In analyzing the early precisely who the user is, they’re able to other media platforms) work together.results from Nielsen Online Campaign deliver the right advertisement. On the New metrics and new forms of analysisRatings on relative campaign performance other hand, if the publisher (or network) are required to help advertisers buildby publisher, Nielsen has identified has a weak understanding of the users, their understanding of cross-platformseveral strategies that are likely to help they are likely to deliver poor results. marketing. Those who embrace this are
  2. 2. substantially better positioned than understand the web, as well as make it percent of the impressions actually reach those publishers who remain committed more accountable. the intended group. That’s 65 percent to the idiosyncratic web-only metrics. waste. For very broad audiences (such as In a recent study, Nielsen Online Campaign all adults) 72 percent of impressions areOpportunity for Ratings measured a campaign for a beauty care brand that was hoping to improve its delivered to the right group.Advertisers: Efficiency image among younger women (Figure 1).and Accountability The advertiser designed a campaign Figure 2 focused on women 18-34 and ran 213 Impressions vs. ReachOnline advertising has long promised million impressions across 14 websitesadvertisers that it would eliminate for Online Campaigns and ad networks for a six week period.waste and deliver audiences better than Auto Manufacturer Desired Audience Nielsen analysis showed that 33 percenttraditional media. While search Adults 25-54advertising provides both efficiency of these impressions reached the desiredand accountability, there’s significant audience (W 18-34), while 40 percentroom for improvement on both counts of the impressions were served to men.with display and video campaigns. Most Clearly, these figures were disappointingcampaigns on the web today are notbought on the basis of demographics, to the advertiser. They never expected the campaign to deliver more impressions to 75.8 Million Impressionsbut characteristics such as age and men than their young female audience! 25.6 Milliongender are foundational to brand Total Reachstrategies and media buys on TV, Unfortunately, this is not an isolated 15.7 Millionradio, etc. These metrics are crucial to case. Looking across dozens of campaigns Target Reachunderstanding how media works across spanning hundreds of websites, the resultsplatforms to drive brand results. Our show that the web consistently deliversearly learnings suggest that, while some Packaged Food Brand Desired Audience millions of impressions – if not tens ofindividual websites perform very well on Women 25-54 millions of impressions – to the wrongthis basis, nearly all campaigns delivermany, many impressions to consumers people. Advertisers focusing on narrowwho are not valued by the brand. We audiences (that is, the intended audienceexpect Nielsen Online Campaign Ratings is only one gender, or an age group withwill help brand advertisers better less than a 20 year span) only about 35 65 Million Impressions Figure 1 Big Impression Counts Don’t Mean High Reach 19.6 Million Total Reach Beauty Care Brand Desired Audience Women 18-34 8.2 Million Target Reach Beverage Brand Desired Audience 213 Men 21-34 Million Impressions 43 213 million impressions 40 Million reached 40 million people. Million Total Reached Impressions Only 10.5 million people in target. 8.5 Million Total Reach 10.5 Million 2.3 Million Target Target Reach Reached Source: Nielsen Source: Nielsen2 Copyright © 2011 The Nielsen Company.
  3. 3. Table 1 Audience Reach Percentage Online* American Idol Nielsen Online Campaign Ratings: Broad Audience (e.g. Adults 18-54) 72% 55% How it works Narrow Audience (e.g. Women 18-34) 35% 11% Nielsen Online Campaign Ratings Source: Nielsen measures the true audience*Online results exclude Facebook campaigns of an Internet ad campaign byHowever, despite the considerable waste, reach. In reality, the campaign overall combining Nielsen panel datathe web holds its own with TV. For the first hit slightly more than 40 million people with aggregated, anonymoustime, Nielsen Online Campaign Ratings across all demographic segments —a 13.6 demographic data from onlineprovides the opportunity to compare percent reach. However, when you zero in on women 18-34, the campaign reached data providers. Using thisdelivery across the web and television on only 10.5 million women, bringing the innovative approach, Nielsenthe same metric. While it is premature to effective reach down to small single digits.deliver broad, generalized learnings, it’s is able to measure Internet Brand advertisers expect more in thisinstructive to compare these early data with technology-driven medium. advertising campaigns of nearlyresults from popular television programs. any size, running nearly anywhereAs noted in Table 1, the web does in factdeliver the audience more efficiently than So, Where Do We Go on the web.a program like American Idol whose broad From Here?audience virtually guarantees delivery As brand advertisers continue to increaseoutside of the intended group. their reliance on online media, their demands from media companies, onlineOpportunity for publishers and ad networks will only grow. We are entering a new phase ofAdvertisers: the industry’s development whereinMeasuring Reach quality (i.e. the ability to reach the desired audiences) will increasingly be rewarded,As Internet usage continues to increase, and others will be left behind. Thesethe U.S. online audience is looking more same brand advertisers understand thatand more like the U.S. population. As consumers are living in a cross media world,such, people feel it should be just as so they are seeking ways to support theirstraightforward to build reach with brands across all media. Access to toolsonline campaigns as it is to reach specific that lend greater accountability to thedemographics on the web. online advertising market will benefit the industry, giving more confidence to brandOnline campaigns are typically measured advertisers, and allowing leading publishersin tens of millions, if not hundreds of to finally demonstrate their true value.millions of impressions, but these hugenumbers can be misleading. When youreduce the impressions by those actually Demands for Online Measurementreaching the desired audience, and thenaccount for how many times any one Accountability Verify the audience delivered matches intended audienceindividual sees a given advertisement,these valuable reach numbers are reduced. Cross-Media Comparability A consistent set of metrics to measure audiences across online & TVIn the same beauty care product campaignreferred to earlier, the 213 million Demonstrate Qualityimpressions tracked-to-date seems to be Differentiate the value of inventory and targeting capabilitiesat a level that could generate significant Copyright © 2011 The Nielsen Company. 3
  4. 4. About This White Paper About NielsenThe data and insights in this white paper Nielsen Holdings N.V. (NYSE: NLSN) isare compiled from a range of Nielsen a global information and measurementresources. For more information, company with leading market positionscontact your Nielsen representative. in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, please visit For more information visit www.nielsen.com4