An introduction to Online Media

Slide 1: An introduction to Online Media

Slide 2: 2 Claude Sabbah

Slide 3: Agenda The market  The landscape  The terminology  The tools  The formats  Tomorrow  3

Slide 4: The players 4

Slide 5: The players Sales Houses Specialists Brands Media Consumers Media agency Ad agency initiators shapers transmitters allowers 5

Slide 6: Broadcast 6 Hypergene.net

Slide 7: Intercast 7 Hypergene.net

Slide 8: The Person @ the center 8 Logic+Emotion

Slide 9: The “newcast” 9 Logic+Emotion

Slide 10: The landscape 10

Slide 11: Online penetration evolution 11 Source: BIM 15

Slide 12: Coverage per age & sex Internet coverage on various targets (by gender on total Belgian pop.) 95% 94% 94% 93% 91% 89% 78% 71% 64% 54% cov. (%) 51% 46% 40% 39% 29% 17% 11% 7% 15-24 25-34 35-44 45-54 55-64 65+ targets Male % Female % Total % 12 Source: BIM 15

Slide 13: Internet connections 13 Source: ISPA 2005

Slide 14: European perspective: 2010 14 Source: JupiterResearch Broadband in Europe

Slide 15: Media consumption 18.7 Hours spent on each medium on an average week 15.4 Increase in time spent online 2004 vs. 2005: +11% 11.7 5.1 4.5 TV Radio Internet Newspaper Magazine 15 Source: EIAA, Belgium results 2005

Slide 16: Media investments 16 Source: IAB/CIM 2005

Slide 17: Belgium vs. USA media mix % .2 % 40 .1 38 % .9 29 3% . 24 % .5 % 5% 13 .8 . 11 11 % 8% 8 8. 8. 2% 0% 5. 3% 4. % % 2. 2 1. 4 0. TV Newspaper Radio Magazines Outdoor Internet Cinema Belgium USA 17 Source: IAB & Future Media Report

Slide 18: “A day in the life...” Watch TV Read Newspapers Read Magazines 100 Listen to Radio Use the Internet 90 89% 80 67% 66% 70 60 51% 54% 50 43% 45% 48% 40 30% 38% 30 14% 27% 22% 20 14% 16% 11% 10 9% 4% 5% 2% 0 'When you wake up' (6am - 'During the Day' (10am - 'During the Evening' (5.30pm - 'During the Night' (9pm - 6am) 10am) 5.30pm) 9pm) [Base: All Respondents in Belgium using each type of media] 18 Source: EIAA, Belgium results 2005

Slide 19: Multi-tasking reality When Mainly Watching TV When Mainly Using the Internet 33% 16% 8% 9% 4% 25% 37% 3% [Base: All Belgium TV Viewers] [Base: All Belgium internet users] 19 Source: EIAA, Belgium results 2005

Slide 20: Access & usage on 12+ MMS 15 SMS 60 Messenger/ICQ 25 SKYPE 8 E-Mail 49 TOTAL WEB 54 GSM 3 FRIENDS 17 Accessing the CAF 3 internet from WORK 26 HOME 44 20 Source: Cyberscan 11

Slide 21: Belgium: campaign budget 21 Source: IAB 2005

Slide 22: Europe: Online vs. Offline 50% (in billions) Ū 6.5 Ū 6.0 Ū6 Ū 5.5 40% Percentage of Total Ad Spending Ū 4.9 Total Online Ad Spending Ū 4.1 30% Ū4 Ū 3.2 20% Ū 2.3 Ū2 10% 6.0% 5.8% 5.5% 5.1% 4.5% 3.8% 2.8% Ū0 0% 2004 2005 2006 2007 2008 2009 2010 Total online ad spending Percentage of total ad spending 22 Source: JupiterResearch Internet Advertising Model, 8/05 (Western Europe only)

Slide 23: European online ad market (in millions) € 2,500 Ū 2,349 30% 27% Compound Annual Growth Rate, 2005 to 2010 € 2,000 23% 22% 22% 22% 22% 22% Total Online Ad Spending in 2010 21% 21% 20% 20% 20% 20% 19% € 1,500 17% Ū 1,211 15% 14% 13% € 1,000 Ū 760 10% Ū 519 € 500 Ū 306 Ū 269 Ū 250 Ū 138 Ū 125 Ū 90 Ū 110 Ū 83 Ū 116 Ū 72 Ū 72 Ū 53 Ū7 €0 0% UK I taly Norway I rel and Germany Fr ance Finl and Gr eece Denmark Por tugal Austria Luxembourg Spain Sweden Belgium Swi tzer land Netherlands 23 Source: JupiterResearch Internet Advertising Model, 8/05 (Western Europe only)

Slide 24: The Terminology 24

Slide 25: Reach The percentage (%) of an audience exposed one or more times to a communication vehicle within a specified period of time 25 Source: Southern Methodist University & IAB.net

Slide 26: Average number of times those who are reached have an opportunity to be exposed to a message within a given time period 26

Slide 27: 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. 27

Slide 28: 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 28

Slide 29: Average online CPM Average CPM for webvertising campaigns - Skyscraper Finance 50,0 € Business/IT 39,0 € Dailies 35,0 € Content Specific* 23,0 € Website Type Global average 21,5 € Entertainment 15,0 € Community 12,0 € Portal 8,0 € Application 6,5 € Run of Network 5,0 € CPM * Women, Men, Youth, Sports, Auto, Real Estate, Travel 29 Source: FastBridge

Slide 30: 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 % 30

Slide 31: 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.  31 Source: IAB Belgium

Slide 32: 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  32 Source: www.magazine.org/retail/2151.cfm

Slide 33: Selectivity Index Percentage of Users in a Demographic Segment X 100 SI = Percentage of Population in the Same Segment 33

Slide 34: 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. 34

Slide 35: Long tail Large audience Small audience mainstream influentials 35

Slide 36: The tools 36

Slide 37: Audience knowledge 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 37

Slide 38: Audience Measurement 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 38

Slide 39: Site Traffic measurement Brand Campaign Site 39 Google Analytics

Slide 40: Cross Media Research Brand Campaign Site Pre- & Post Advertising Test  Advertising Tracking  Cross Media Campaign  Evaluation 40 Metrix Lab

Slide 41: Online Impact Surveys Brand Campaign Site Aided and Unaided Brand  Awareness Advertising Awareness  Message Association  Sponsorship Awareness  Brand Favorability  Brand Attributes  Purchase/Behaviour Intent  41 Metrix Lab

Slide 42: Buzz metrics Brand Campaign Site 42

Slide 43: Buzz metrics Brand Campaign Site 43

Slide 44: 3rd Party technology Brand Campaign Site 44 IAB 2006

Slide 45: The Formats 45

Slide 46: 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 46

Slide 47: Universal Ad Package 47

Slide 48: Content Integration  Advertising woven into editorial content or placed in a contextual envelope.  Also known as "Web advertorial” 48

Slide 49: 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) 49

Slide 50: Keyword SEO - Natural Positioning  Optimize the html code  to ease the work of the search  engine spiders Long term approach  SEA  Relevancy index optimization  Cost efficient investment SEA SEA - Performance driven  SEO Buy relevant search queries   “You pay for what you get” - Cost per click  Contextual & short term / mid term driven  Managed costs 50

Slide 51: Channel evolution 51 Source: IAB 2005

Slide 52: Tomorrow 52

Slide 53: Stages in Internet use Becoming a lead contributor to an online community Creating your (e.g., regular posts, own TV channel Creating your Making posts to moderator) own IM / chat an online room avatar message board Writing your own Setting up email Posting your blog/newsletter forwarding group profile on a IM for “joke” emails Visiting an community site Internet chat Setting up Signing up for room Browsing Building your personal news Email email own website dating / views/alerts newsletter Uploading Regularly “friends” sites photos to reading news Communication / album site online Community Sharing iTunes Using Google to Selling Web surfing playlists Listening to research Buying something on Internet radio something on Ebay Entertainment / Information / Ebay Personal Research / Expression Everyday Tasks Playing viral Watching Buying a Video Booking a games that streaming Regularly book/CD chat/Webcams flight online were emailed video shopping for from Amazon Visiting groceries online websites others have Internet Downloading recommended Joining an online banking music RPG community (e.g., Joining an Internet Bookmarking your SimsOnline) payment service Downloading own library of (e.g., Paypal) Basic games “favourite” sites Subscribing to online movie service Experienced Enthusiast 53 Source: Isobar

Slide 54: Future of Media 54 Future Exploration Network

Slide 55: “It makes no sense today to advertise on tv if you don’t offer a gate to interactivity” Guillaume Van der Stighelen 55

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