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Adtech india-2012-keynote-comscore Adtech india-2012-keynote-comscore Presentation Transcript

  • State of the Global InternetWith Lessons Learned from Measurement of Online Advertising Gian Fulgoni Executive Chairman and Co-Founder, comScore Inc
  • Discussion Topics A Brief Introduction to comScore Key Trends in Global Internet Behavior Lessons Learned About Online Advertising: – The Click – The Cookie – Ad Visibility – Facebook © comScore, Inc. Proprietary. 2
  • comScore is a Global Leader in Measuring the Digital WorldNASDAQ SCORClients 1,900+ worldwideEmployees 1,000+Headquarters Reston, VA 170+ countries under measurement;Global Coverage 43 markets reportedLocal Presence 32+ locations in 23 countries © comScore, Inc. Proprietary. 3 V0411
  • comScore’s UDM Approach Leverages the Best of Panel and Server Data 2 Million Person Panel PERSON-Centric Panel with 360°View of Person Behavior SITE-Census Measurement Web Visiting & Search Online Behavior Online & Offline Advertising Buying Exposure PANEL CENSUS Advertising Transactions Effectiveness Media & Video Demographics, Consumption Lifestyles PANEL & Attitudes Unified Digital Measurement™ (UDM) Mobile Internet Usage & Behavior Patent-Pending Methodology 1 Million Domains Participating Adopted by 80% of Top 100 Global Media Properties And, a behavioral cross-platform measurement capability 4 © comScore, Inc. Proprietary. V0411
  • The U.S. Is No Longer the Center of the Online Universe U.S. Internet Population vs. Rest of the World Distribution of Worldwide Internet Audience Middle East -Rest of the World 34% Latin Africa, America, 8.8% 9.0% Asia 87% North Pacific, America, 41.3% U.S. 14.6% 66% Asia Pacific Europe, 13% 26.4% 1996 2011  In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region with over 40% of online population.  Many emerging regions likely to bypass old modes, skipping dial-up to go straight to broadband, making multimedia, video, and collaborative content immediately accessible.  Early adoption of mobile web in addition to PC web will likely be popular in many of these high- growth areas. © comScore, Inc. Proprietary. 5 Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011
  • Asia Continues Significant Growth in Size of Internet Audience Growth expected to continue as home Worldwide Online Population broadband penetration increases in Asia (Millions) and Latin America +9% Growth in developing regions likely to 1,444 also continue as people move from 1,323 shared-access to home & work use Growth slow in North America 2010 Dec 2011 Dec European growth mostly driven by Russia +11% Dec-11 Dec-10 595 534 +6% 381 361 +3% +15% +14% 210 203 129 112 126 111 Asia Pac Europe North America Latin America Middle east Africa © comScore, Inc. Proprietary. 6 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2010 and Dec 2011
  • Shared-Access Environments Make up Significant Portion of TotalPopulation in Some Regions Shared-access population in India is almost as large as the Internet population accessing from work and home 331 Unique Visitors (MM) 15+ H/W Other 105 47 43 52 32 25 29 11 12 China India Brazil Mexico Indonesia © comScore, Inc. Proprietary. 7 Source: comScore Media Metrix, Dec 2011
  • Size of Online Audience in BRIC countries, 15+ Home & Work Significant growth in BRIC countries in the past year, particularly in China, where 13% growth represents 40 million new web users from work & home Growth similarly high in many Latin American and Asian markets Online Population Sizes (MM) BRIC +13% Dec-10 Dec-11 331 291 +12% +15% +15% 42 47 45 52 46 53 China India Brazil Russia © comScore, Inc. Proprietary. 8 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2010 to Dec 2011
  • India Internet Users are Much Younger than Global Average Internet audience in India skews dramatically younger: 75% of web audience is under 35, compared to 52% of the world and 55% of the region Composition of Internet Audience 15+ Worldwide 26 26 22 14 12 Asia Pacific 28 27 23 12 9 75% India 33 41 17 6 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 15-24 25-34 35-44 45-54 54+ © comScore, Inc. Proprietary. 9 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2011
  • India’s Usage Relatively Low Compared to Some Other Countries Web users in China and India are lighter users than Russians and Brazilians Expect usage rates to increase as home/work Internet penetration increases and broadband becomes more readily available Total Hours Online per Visitor WW AVG: 24.4 Russia 25.1 Brazil 26.7 Indonesia 16.4 Mexico 21.1 China 14.1 India 13.0 © comScore, Inc. Proprietary. 10 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2011
  • Young People Drive Internet Consumption in India Today, SuggestingFuture Overall Usage Will Rise Dramatically 25-34 year olds are India’s heaviest Internet users Time Online by Age Total time in Billion Minutes 16 14.9 14 12.4 12 10 8 6.1 6 4 2 2 0.87 0 15-24 25-34 35-44 45-54 55+ © comScore, Inc. Proprietary. 11 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2011
  • Social Networking Has Exploded Globally Millions of Monthly Users I n O c t 2 0 11 Around the world, Social Networking 1,179.4 now reaches billion 1.2 Total Unique Visitors (MM) 916.8 users 444.9 82% of the world’s online population Email Instant Social Messengers Networking 95% Reach among © comScore, Inc. Proprietary. 12 India online users Source: comScore Media Metrix, October 2011
  • The Rise of the Global Social Networking Audience Worldwide Total Unique Visitors (MM)1,6001,400 +88% Total Internet1,2001,000 +174% Social 800 Networking 600 400 200 0 2007 2008 2009 2010 2011 Source: comScore Media Metrix, March 2007 - October 2011 © comScore, Inc. Proprietary. 13
  • Nearly in 1 5 minutes online is spent on social networks today. 2008 2009 2010 201135 Social Networking30 Search/Navigation Retail25 Communications (Email/IM) Other ContentTime Spent on Key Categories OnlineWorldwide Hours per Month (Billions) Source: comScore Media Metrix, March 2007 - October 2011 © comScore, Inc. Proprietary. 14
  • 3 Facebook’s worldwide site rank Facebook’s global55% penetration2 Facebook’s India site rank Source: comScore Media Metrix, October 2011 © comScore, Inc. Proprietary. 15
  • 3 in 4 minutes on social networking sites are spent on Facebook1 in 7 minutes spent online are spent on Facebook Source: comScore Media Metrix, October 2011 © comScore, Inc. Proprietary. 16
  • Since 2010, Facebook has taken the lead in 6 new markets across Asia, Latin America, and EuropeJan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011 Facebook 788MM Facebook overtakes overtakes StudiVZ in Windows Germany Live in Portugal Facebook Facebook overtakes Hyves overtakes Yahoo! in the Holland Facebook Wretch in Taiwan 471.4 overtakes Facebook Orkut in India overtakes Windows Live in Mexico Facebook’s Ascent in Recent Years Total Unique Visitors (MM) Source: comScore Media Metrix, January 2010 - October 2011 © comScore, Inc. Proprietary. 17
  • Social Networking is Not Just Facebook @online linkedin reaches 1 in 8 users in India and 1 in 14 worldwide @ Twitter reaches 1 in 12 online @ users in India and 1 in 10 users worldwide Source: comScore Media Metrix, Worldwide, October 2011 © comScore, Inc. Proprietary. 18
  • saw the largest decline in engagement with web-based15-24 year olds email and instant messaging 34% 25% 21% 15% 12% 1% -4% -3% -8% -22% -32% -34% -37% -36%-42% Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+ Instant Messengers Email Social NetworkingChange in Average Time Spent with Content Category by Age Segment Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 © comScore, Inc. Proprietary. 19
  • …but also saw the highest increase in engagement with social networking. 34% 25% 21% 15% 12% 1% -4% -3% -8% -22% -32% -34% -37% -36%-42% Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+ Instant Messengers Email Social NetworkingChange in Average Time Spent with Content Category by Age Segment Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 © comScore, Inc. Proprietary. 20
  • Online Advertising: Lessons Learned © comScore, Inc. Proprietary. 21
  • Some things we’ve learned about online advertising • The click is at best an incomplete and at worst a misleading metric • Display advertising is an efficient and effective way to build sales both online and offline • Accurate delivery of media plan is critical • Facebook is a very efficient way to amplify reach and persuasiveness © comScore, Inc. Proprietary. 22
  • Clickers represent a small and declining segment of Internet users •There were 50% fewer clickers in 2009 (16%) than in July 2007 (32%) • 8% of all Internet users account for 85% of all clicks • Optimizing against clicks means ignoring 84 percent of Internet users July 2007 March 2009 Clickers Clickers 16% 32% Non- Non-Cli Clickers 68% cker84 % Source: comScore, Inc. Custom Analysis, Total US Online Population, persons, July © comScore, Inc. Proprietary. 23 2007 and March 2009 data periods
  • Global Click Rates on Individual Campaigns are Pitifully Low Worldwide Click-Through Rates* Austria 0.05% France 0.11% Finland 0.05% Italy 0.11% UK 0.07% Germany 0.11% Canada 0.08% Belgium 0.11% Australia 0.08% Denmark 0.11% U.S. 0.09% New Zealand 0.13% Spain 0.09% Netherlands 0.15% Switzerland 0.09% Greece 0.17% Singapore 0.09% India 0.19% Ireland 0.10% Hong Kong 0.22% Luxemburg 0.10% China 0.64% *Click-through rates across static image, flash and rich media formats Source: DoubleClick Benchmarks data representing a cross-section of countries, Jan to Dec, 2010 © comScore, Inc. Proprietary. 24
  • How comScore measures advertising ROI:Link ad exposure to behavior Website Visiting & Search Video Name & Address Online Transactions Advertising Exposure © comScore, Inc. Proprietary. 25 Source: comScore 2011
  • Journal Of Advertising Research:comScore’s “Whither the Click?” Journal of Advertising Research, June 2009 “What We Know About Advertising: 21 Watertight Laws for Intelligent Advertising Decisions” Prof. Byron Sharp, Ehrenberg Bass Institute, University of South Australia Prof. Jerry Wind, The Wharton School comScore’s “Whither the Click?” – 200+ comScore studies conducted in the U.S. to assess behavioral impact of paid search and online display ads. Even with Minimal Clicks, Display Advertising can Lift: • Site visitation • Trademark search queries • Online and offline sales © comScore, Inc. Proprietary. 26 26
  • Despite click rates of only 0.1%, comScore research has shown thatdisplay ads can lift retailer sales – both online and offline Dollar Sales Lift Among Households Exposed to Online Advertising Conclusions % Lift: 17%  Exposure to display ads doesn’t just impact online $11,550 sales – it lifts in-store $9,905 sales as well  The absolute dollar lift % Lift: 27% in offline sales is 5x higher than the lift in e-commerce sales $994 $1,263  The click is misleading Online Offline as a measure of campaign effectiveness Unexposed Exposed Source: “Whither the Click?” 139 comScore studies in the © comScore, Inc. Proprietary. 27 June 2009 Journal of Advertising Research
  • Branding’s digital challenge • Branding advertisers on TV are accustomed to audience guarantees and expect the same in digital • Accuracy of cookie-based digital plan delivery is problematic: Cookie Deletion Cookies Are Not People Ads Are Not Always Visible © comScore, Inc. Proprietary. 28 Source: comScore 2011
  • Because of multiple users on a computer, cookies can’t accuratelyidentify who is using a computer at any given point in time U.S. Users per Computer 2011 Over 64% of home users share a computer with other users 3+ Users 1 User 32% 36% 2 Users 32% © comScore, Inc. Proprietary. 29 Source: comScore 2011
  • Cookie deletion is a global reality … and a global challenge Accurately counting reach with cookies is not possible, yet is currently the method used in most ad servers and analytics systems Ad Server Cookies Web Site Cookies Average # of Average # of Percent of Percent of cookies per cookies per Country computers computers computer for computer for deleting deleting same campaign same web site Australia 37% 5.7 28% 2.7 Brazil 40% 6.6 33% 2.5 U.K. 35% 5.9 27% 2.7 U.S. 35% 5.4 29% 3.5 © comScore, Inc. Proprietary. 30 Source: comScore 2011
  • Cookie-based demo targeting limits a campaign’s ability to selectivelyreach a targeted audience Target for this health & well being product was females age 35-54 Male 40% of exposed consumers outside of planned gender target 40% % Composition of Exposed Audience 20.6% 15-24 22.4% 25-34 Female 60% 25.3% 35-44 Only 43% of females exposed to the campaign met the 17.3% 45-54 targeted age group 14.4% 55+ Only 25% of all exposed consumers met planned targeting criteria © comScore, Inc. Proprietary. 31
  • Skewed ad server delivery causes wasted GRPs with overly saturatedconsumers Distribution of Exposed People by CPG Campaign Frequency of Exposures • 4 Weeks 64% • 43 GRPs • Reached ~ 8MM People • Average Frequency = 4.5 48% 65% of Exposures 27 Exposures per Person! 16% 22% 13% 8% 5% 3% 3% 2% 2% 1% 1 2 3 4 5 6 7 8 9 10+ Exposures per Person © comScore, Inc. Proprietary. 32 Source: comScore 2011
  • Making Measurement Make Sense (3MS) Mission: Reduce costs of doing business due to complexity of digital advertising ecosystem ‘Single Tag’ solution to reduce complexity Improve reporting of ad exposure Bolster confidence that ads delivered are actually visible © comScore, Inc. Proprietary. 33
  • Billions of impressions are being delivered – how can retailers ensurethe right consumers are seeing the messaging? © comScore, Inc. Proprietary. 34
  • vCE Charter Study18 campaigns2 billion impressions400k sites Allstate © comScore, Inc. Proprietary. 35
  • Charter Findings In-view ad rates ranged from 55% to 93% across 18 campaigns 69% AVERAGE0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% © comScore, Inc. Proprietary. 36
  • What’s new in social measurement? Using the comScore panel and proprietary technology, comScore is the first research company to provide continuous measurement of the impact of earned media among Fans and their Friends on Facebook. © comScore, Inc. Proprietary. 37
  • Facebook is the largest publisher of online display ad impressions,Publisher Share of Display Ad Impressions Source: comScore Ad Metrix, U.S., Q3 2011 © comScore, Inc. Proprietary. 38
  • SOCIAL ESSENTIALScomScore now measures most major engagements on Facebook Ad Exposed Friends Sponsored of Fans Stories Fans © comScore, Inc. Proprietary. 39
  • SOCIAL ESSENTIALSWhat we know to be true… Facebook Fans are NOT regular visitors to Facebook Fan Pages. Marketers need to reach out Fans in their News Feed with relevant content! Monthly Unique Visitors Brand No. of Fans* To Facebook Fan Pages** Coca Cola 24.0 Million 39,000 Oreos 17.5 Million 137,000 Best Buy 2.7 Million 175,000 *Source: Facebook ** Source: comScore © comScore, Inc. Proprietary. 40
  • Friends of Fans represent a way for brands to efficiently amplify their reach substantially beyond FansFANS Earned Exposed Fans Impressions Reach Frequency GRP Southwest 661K 2,457K 0.3% 3.7 1.1 Bing 1,070K 3,353K 0.5% 3.1 1.6 Starbucks 4,841K 13,664K 2.2% 2.8 6.3FRIENDS Earned Exposed Friends Impressions Reach Frequency GRPSouthwest 853K 1,460K 0.4% 1.7 0.7Bing 2,035K 3,183K 0.9% 1.6 1.5Starbucks 8,846K 18,073K 4.1% 2.0 8.4 Friends expand Fans Reach by © comScore, Inc. Proprietary. 41 133% to 186%
  • Fans and Friends of Fans exposed to earned brand impressions on Facebook exhibit higher brand engagement, e.g. site visitation, than the average Internet user Why do friends of fans have a higher orientation toward the brand? 1. Birds of a feather flock together 2. Trusted persuasion Friends Friends FriendsBaselineInternet User © comScore, Inc. Proprietary. 42 Source: comScore Social Esessentials May2011
  • Conclusions The digital world is expanding rapidly, driven by new users in some regions and / or by growth in time spent in others Younger consumers in India are leading the revolution, with higher engagement coming from 15-34 age segments Social Networking is a key driver of PC and Mobile activity, cannibalizing many other activities Online advertising is effective, both as a direct response and branding strategy For online advertising to get its fair share of advertising dollars – Ad effectiveness needs to be measured “beyond the click” – Accurate measurement of the delivery against media plan is critical – Facebook represents an efficient way to amplify reach and trusted persuasion © comScore, Inc. Proprietary. 43
  • Thank you!Gian FulgoniExecutive Chairman and Co-Founder, comScore Inc.