An introduction to Online Media

Claude Sabbah

Agenda The market The landscape The terminology The tools The formats Tomorrow

The market

The landscape

The terminology

The tools

The formats

Tomorrow

The players

The players Brands Sales Houses Specialists Media agency Ad agency Media Consumers initiators shapers transmitters allowers

Broadcast Hypergene.net

Intercast Hypergene.net

The Person @ the center Logic+Emotion

The “newcast” Logic+Emotion

The landscape

Online penetration evolution Source: BIM 15

Coverage per age & sex Source: BIM 15

Internet connections Source: ISPA 2005

European perspective: 2010 Source: JupiterResearch Broadband in Europe

Media consumption Source: EIAA, Belgium results 2005 Hours spent on each medium on an average week Increase in time spent online 2004 vs. 2005: +11%

Media investments Source: IAB/CIM 2005

Belgium vs. USA media mix Source: IAB & Future Media Report

“ A day in the life...” [Base: All Respondents in Belgium using each type of media] Source: EIAA, Belgium results 2005

Multi-tasking reality When Mainly Watching TV When Mainly Using the Internet [Base: All Belgium internet users] [Base: All Belgium TV Viewers] Source: EIAA, Belgium results 2005

Access & usage on 12+ Source: Cyberscan 11 Accessing the internet from

Belgium: campaign budget Source: IAB 2005

Europe: Online vs. Offline Total Online Ad Spending Percentage of Total Ad Spending ( in billions) Source: JupiterResearch Internet Advertising Model, 8/05 (Western Europe only)

European online ad market Total Online Ad Spending in 2010 (in millions) Compound Annual Growth Rate, 2005 to 2010 Source: JupiterResearch Internet Advertising Model, 8/05 (Western Europe only)

The Terminology

Reach Source: Southern Methodist University & IAB.net The percentage (%) of an audience exposed one or more times to a communication vehicle within a specified period of time

Average number of times those who are reached have an opportunity to be exposed to a message within a given time period

OTS when a page is successfully displayed on the user's computer screen when a poster is available for viewing in a 2m2 when a radio spot is aired (H), etc.

Cost per Thousand : Media term describing the cost of 1000 gross contacts (impressions). For example a Web site that charges 1500 euros and reports 100 000 gross contacts has a CPM of 15 euros. CPM = (cost / number of gross contacts) x 1000

Average online CPM Average CPM for webvertising campaigns - Skyscraper Source: FastBridge

SOV Number of gross contacts received by an advertisement on a site (or site section) / Total impressions served by the site (or site section) during the same period, expressed in %

Others (Ad) audience : Number of unique users or visitors exposed to a site (or an ad) within a specific time period (Ad) Click : A measurement of the user-initiated interaction (such as clicking on) an element causing a re-direct to another Web location or another frame or page within the advertisement. (Ad) Click Rate : Gross click rate = Number of clicks / Number of impressions, expressed in % Net click rate = Number of clicks / Number of unique users, expressed in % (Ad) impression or Gross contact : An ad which is served to a user's browser. Ads can be requested by the user's browser (referred as pull ads) or they can be pushed, such as e-mail ads. Cost per click or CPC : Cost of advertising based on the number of clicks received. Cost per action or CPA Online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations Unique Visitor : Individual or browser which accesses a Web site within a specific time period. Source: IAB Belgium

(Ad) audience :

Number of unique users or visitors exposed to a site (or an ad) within a specific time period

(Ad) Click :

A measurement of the user-initiated interaction (such as clicking on) an element causing a re-direct to another Web location or another frame or page within the advertisement.

(Ad) Click Rate :

Gross click rate = Number of clicks / Number of impressions, expressed in %

Net click rate = Number of clicks / Number of unique users, expressed in %

(Ad) impression or Gross contact :

An ad which is served to a user's browser. Ads can be requested by the user's browser (referred as pull ads) or they can be pushed, such as e-mail ads.

Cost per click or CPC :

Cost of advertising based on the number of clicks received.

Cost per action or CPA

Online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations

Unique Visitor :

Individual or browser which accesses a Web site within a specific time period.

GRP Definition the reach of 1% of a target audience. Gross Rating Points (grps) is the sum of reach of a media schedule. Essentially synonymous with TRPs (target rating points). How to calculate it? GRP = % Reach X Frequency Cost-Per-Point (CPP) – the cost of delivering one GRP. Formula: CPP= media cost/GRPs Source: www.magazine.org/retail/2151.cfm

Definition

the reach of 1% of a target audience. Gross Rating Points (grps) is the sum of reach of a media schedule. Essentially synonymous with TRPs (target rating points).

How to calculate it?

GRP = % Reach X Frequency

Cost-Per-Point (CPP) – the cost of delivering one GRP.

Formula: CPP= media cost/GRPs

Selectivity Index SI = Percentage of Users in a Demographic Segment Percentage of Population in the Same Segment X 100

Long tail In these distributions a high-frequency or high-amplitude population is followed by a low-frequency or low-amplitude population which gradually "tails off." In many cases the infrequent or low-amplitude events—the long tail, represented here by the yellow portion of the graph—can cumulatively outnumber or outweigh the initial portion of the graph, such that in aggregate they comprise the majority.

Long tail Large audience mainstream Small audience influentials

The tools

Audience knowledge BIM (Belgian Internet Mapping by Insites) Extensive study among Belgian Internet users, which provides a detailed overview of the Belgian Internet population. Deliverables: Insights into socio-demographic information on Internet users and their attitudes and behaviors related to the Internet Data-collection on basis of online (pop-up & e-mail data collection) as well as offline (by phone) methods in order to guarantee representative figures The largest Internet study in Belgium, more than 140.000 people participated in the pop-up survey and more than 10.000 in the e-mail survey Frequent updating of the B.I.M. figures every six months and evolution tracking of B.I.M. figures with previous periods Brand Campaign Site

BIM (Belgian Internet Mapping by Insites)

Extensive study among Belgian Internet users, which provides a detailed overview of the Belgian Internet population.

Deliverables:

Insights into socio-demographic information on Internet users and their attitudes and behaviors related to the Internet

Data-collection on basis of online (pop-up & e-mail data collection) as well as offline (by phone) methods in order to guarantee representative figures

The largest Internet study in Belgium, more than 140.000 people participated in the pop-up survey and more than 10.000 in the e-mail survey

Frequent updating of the B.I.M. figures every six months and evolution tracking of B.I.M. figures with previous periods

Audience Measurement CIM (Centre d’information des media) Metriweb Tactical measurement system based on cookies and providing data on 250+ Belgian sites at three levels Unique Visitors (+ regular), Visits & Page Requests Objective, comparable and authentified data Metriplan Deduplication tool which uses the Metriweb raw data Allows to evaluate the performance of a multi-site media selection over a perdiod of time Metriprofile Provides the media planners with socio-demographic data for each site participating in the Metriweb study Brand Campaign Site

CIM (Centre d’information des media)

Metriweb

Tactical measurement system based on cookies and providing data on 250+ Belgian sites at three levels

Unique Visitors (+ regular), Visits & Page Requests

Objective, comparable and authentified data

Metriplan

Deduplication tool which uses the Metriweb raw data

Allows to evaluate the performance of a multi-site media selection over a perdiod of time

Metriprofile

Provides the media planners with socio-demographic data for each site participating in the Metriweb study

Site Traffic measurement Brand Campaign Site Google Analytics

Cross Media Research Pre- & Post Advertising Test Advertising Tracking Cross Media Campaign Evaluation Brand Campaign Site Metrix Lab

Pre- & Post Advertising Test

Advertising Tracking

Cross Media Campaign Evaluation

Online Impact Surveys Aided and Unaided Brand Awareness Advertising Awareness Message Association Sponsorship Awareness Brand Favorability Brand Attributes Purchase/Behaviour Intent Brand Campaign Site Metrix Lab

Aided and Unaided Brand Awareness

Advertising Awareness

Message Association

Sponsorship Awareness

Brand Favorability

Brand Attributes

Purchase/Behaviour Intent

Buzz metrics Brand Campaign Site

Buzz metrics Brand Campaign Site

3rd Party technology Brand Campaign Site IAB 2006

The Formats

Display Ads Defines all forms of online advertising that is integrating various kinds of elements (images, video, texts, animations, forms, layers, interactions, etc.) and that follows common formatting guidelines Measured in pixels and kilobytes Mostly known formats Leaderboard, Skyspcrapers Overlayer IMUs, Showcases Buttons & Banners

Defines all forms of online advertising that is integrating various kinds of elements (images, video, texts, animations, forms, layers, interactions, etc.) and that follows common formatting guidelines

Measured in pixels and kilobytes

Mostly known formats

Leaderboard, Skyspcrapers

Overlayer

IMUs, Showcases

Buttons & Banners

Universal Ad Package

Content Integration Advertising woven into editorial content or placed in a contextual envelope. Also known as "Web advertorial”

Advertising woven into editorial content or placed in a contextual envelope.

Also known as "Web advertorial”

Emailing Advertising campaign distributed via e-mail Email Addresses selection is possible on socio-demographic, behavioral, professional sector criteria Main Email list Brokers JustForYou (Skynet) Permesso (WegenerDM)

Advertising campaign distributed via e-mail

Email Addresses selection is possible on socio-demographic, behavioral, professional sector criteria

Main Email list Brokers

JustForYou (Skynet)

Permesso (WegenerDM)

Keyword SEO - Natural Positioning Optimize the html code to ease the work of the search engine spiders Long term approach Relevancy index optimization Cost efficient investment SEA - Performance driven Buy relevant search queries “ You pay for what you get” - Cost per click Contextual & short term / mid term driven Managed costs SEO SEA SEA

SEO - Natural Positioning

Optimize the html code

to ease the work of the search engine spiders

Long term approach

Relevancy index optimization

Cost efficient investment

SEA - Performance driven

Buy relevant search queries

“ You pay for what you get” - Cost per click

Contextual & short term / mid term driven

Managed costs

Channel evolution Source: IAB 2005

Tomorrow

Stages in Internet use Communication / Community Entertainment / Personal Expression Information / Research / Everyday Tasks Email IM Posting your profile on a community site Creating your own IM / chat room avatar Visiting an Internet chat room Making posts to an online message board Becoming a lead contributor to an online community (e.g., regular posts, moderator) Setting up email forwarding group for “joke” emails Using Google to research Buying something on Ebay Buying a book/CD from Amazon Regularly shopping for groceries online Internet banking Joining an Internet payment service (e.g., Paypal) Selling something on Ebay Setting up personal news views/alerts Regularly reading news online Bookmarking your own library of “favourite” sites Writing your own blog/newsletter Building your own website Booking a flight online Sharing iTunes playlists Playing viral games that were emailed Joining an online RPG community (e.g., SimsOnline) Downloading games Watching streaming video Downloading music Listening to Internet radio Uploading photos to album site Subscribing to online movie service Video chat/Webcams Web surfing Visiting websites others have recommended Browsing dating / “friends” sites Signing up for email newsletter Basic Experienced Enthusiast Source: Isobar Creating your own TV channel

Future of Media Future Exploration Network

“ It makes no sense today to advertise on tv if you don’t offer a gate to interactivity” Guillaume Van der Stighelen