Overview of DataMethodology and Practices                                           Compete, a Kantar Media Company       ...
Navigating the Digital Universe                               Reaching Consumers in MotionAs our universe grows more digit...
1.	Multi-source panel	–	combines	both	recruited	             partnership with Lightspeed Research in October 2009 and     ...
participation in the panel. Consumer Input also serves as                         top	boxes	and	directly	measured	web	anal...
minimum, each panelist is assigned an anonymous and              The clickstream data from Compete’s consumer panel isuniq...
and publishers. This third component of Compete’s             comprehensive and fastest growing online measurementdata met...
Marketing effectiveness – Marketing Effectivenessmeasures the impact of offline advertising and promotionalcampaigns on cr...
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Overview of Data Methodology and Practices

  1. 1. Overview of DataMethodology and Practices Compete, a Kantar Media Company Ja n u a r y 2 0 1 0 1Copyright Compete 2010. Confidential. mutiple data sources 2 harmonization 3 projection and normalization 4 metrics that matter Online ad exposure Audience profiles Traffic metrics Search terms Shopping/purchase behavior pg 1
  2. 2. Navigating the Digital Universe Reaching Consumers in MotionAs our universe grows more digital, marketers are Online consumer behaviors create new digital researchfinding that the data from traditional research providers that can offer a highly quantifiable depiction of dailyare not comprehensive or timely enough to improve life as it’s come to be lived. While the marketing/their advertising, engagement or ROI. Consumers are advertising industry recognizes these digital breadcrumbstransitioning from the couch to the driver’s seat when as opportunities for true engagement, traditionalit comes to shopping, socializing, viewing and even demographic-based media planning and buying metricscreating their own media online. And marketing and media can’t fully capture the dynamism of consumers. Inputs likestrategists who once relied on plan-and-place tactics are CPM and CPC are helpful for establishing a currency fornow actively seeking a more nimble, look-listen-respond media investments, but are only narrow entry points for aapproach. But existing audience measurement currencies marketplace demanding richer insights about differentiatedlike demographics and reach are not sufficient to keep audiences and marketing impact.pace with new consumers-in-motion. The old way simplydoesn’t work in the new world. Compete provides a wide spectrum of actionable metrics and insight-based products that help marketers develop,Compete’s data methodology and products are designed execute, and measure their digital media strategies. Theseto connect the dots from insights to marketing actions that products track success and failure along every point in theresonate with today’s consumers. Compete’s data provide consumer purchase pathway from early consideration tothe large sample size and resulting granularity that make online and offline purchase to loyalty and satisfaction.it possible to uncover new metrics and insights that chartthe entire purchase pathway: from exposure to search For example, Compete works with a leading wirelessand digital media campaigns to website engagement to carrier to measure, strategize and act on newonline/offline conversion. Drawing from the largest online insights drawn from consumers’ online behaviors.consumer panel in the industry, Compete combines a Specifically, the carrier relies on Compete:multi-data source approach, state-of-the-art harmonizationalgorithms, and advanced normalization techniques to • to develop efficient media plans that target consumer and business segments;provide advertisers, media companies, and agencies with • to measure how effectively its display ads and the metrics they need to achieve new levels of marketing landing pages achieve brand and sales goals; success. • to create new online user experiences and promotional strategies that maximize conversion on its website and at retail locations; and Compete’s approach helps clients drive site traffic, • to create digital programs that reduce build their brands and increase sales. And through subscriber churn. collaborations with sister WPP and Kantar companies suchas TNS, DynamicLogic, 24/7 Real Media, Wunderman, Compete’s data methodology is unique in the industry andGroup M, Kantar Retail, and the Media Innovation Group, is designed to provide comprehensive, granular insightsCompete’s clients are able to gain far more comprehensive that advertisers, agencies and media companies can useand integrated insights. This constellation of partnerships to build their businesses. Compete’s methodology includesexpands Compete’s capabilities and helps marketers four distinct components:confidently navigate their expanding digital universe. pg 1
  3. 3. 1. Multi-source panel – combines both recruited partnership with Lightspeed Research in October 2009 and panelists and licensed clickstream data from expects to begin reporting on these panels by April 2010. partners, resulting in a very large and representative online consumer panel; clickstream-sharing 2. Harmonization algorithms – proprietary processes partnerships and technology that work together to integrate Compete’s multiple data sources into a unified online consumer panel; 3. Sophisticated normalization techniques – unique processes that weight, calibrate and project metrics across panel sources resulting in accurate base proprietary recruited panel audience measurement data; 4. Metrics that matter – analytics on site visitation, audience profiles, media exposure, search term usage, cross-shopping, conversion, competitive behaviors, and audience segmentation.Bigger is Better: Compete’sMulti-Source PanelDepicting consumer activities across millions of websitesin a timely and reliable manner poses a substantial At the core of Compete’s panel is a 350,000-personmarket research challenge. Marketers need accurate proprietary, recruited consumer panel that has optedmeasurement of consumers’ constantly evolving behaviors in to install Compete’s online meter software on theirat ever-smaller internet outposts in order to identify and computers. These panelists are recruited online, throughtarget profitable segments, to gauge the penetration of email and partner marketing, and from within sister Kantarthe latest micro-site, or to stay abreast of traffic trends research panels including Lightspeed Research and theon rivals’ social media brand pages. Meeting this TNS Sixth Dimension panel. When a consumer agrees tomeasurement need is simply not possible using traditional participate, he or she will complete a short registrationaudience measurement providers, because these panels questionnaire before joining the panel. After completingfall short of providing the necessary level of detail. the questionnaire, all panelists must provide permission to Compete to analyze their clickstream data before theyCompete solves this problem by maintaining the largest install the online meter on their computers. Once installed,online consumer panel in the industry, totaling 2,000,000 the online meter delineates clickstream behaviors atconsumers in the United States. Compete’s unique multi- the individual level. Prior to transmission to Compete,source panel combines proprietary, recruited panels with personally identifiable information is filtered from thelicensed clickstream data resulting in a unified panel clickstream.that is an order of magnitude larger than Comscore andNielsen. This size advantage provides marketers with the Recruited panelists are directed to www.consumerinput.deepest metrics across the largest set of websites in the com to learn about the information Compete collects,industry. Compete began international panel operations in how it is used and how they will be compensated for their pg 2
  4. 4. participation in the panel. Consumer Input also serves as top boxes and directly measured web analytics the brand for opt-in client surveys. data leveraging web beacons, into its existing methodologies. As Compete’s data sources change over time, Compete has created processes to Additionally, Compete licenses clickstream data gradually add and remove sources over time to representing millions of consumers from internet service ensure that a panel change does not create bias. providers and application service providers to increasethe size and diversity of its panel. The geographic and The Whole is Greater:demographic distribution of these clickstream-sharing Harmonizationpartnerships is representative of the U.S. internet browserpopulation. Each month, Compete adds consumers Transforming raw consumer clickstreams from multiplefrom each data source to achieve its goal of 2,000,000 sources into accurate and actionable metrics forrepresentative panelists. marketing and media planning requires a rigorous process. Compete’s harmonization algorithms are theAs part of their individual agreements with Compete, transformational system that unifies the data collectedclickstream-sharing partners are required to have customer from Compete’s proprietary and licensed sources. Thepermission to collect and license their clickstream data algorithms perform three specific functions: first, on a dailyin exchange for the use of their respective applications basis, the algorithms process the incoming clickstreamsor services. Partners must meet Compete’s privacy from each individual data source into sessions to reflectrequirements, and must also satisfy Compete’s technical household and individual internet activities; second,and business process standards to ensure their algorithms combine the clickstreams, convertingclickstream data adheres to strict data type, format, heterogeneous feeds into a homogeneous, unified dataset;quality, and timeliness specifications. and third, the algorithms use data inference techniques to identify and populate any missing demographicCompete integrates its proprietary and licensed data into cells according to similarities in internet usage amonga single, unified online panel. Compete’s multi-source other panelists. The end result is a single, unified onlineapproach offers distinct benefits compared to other panel- consumer measurement panel that is representative of thebased measurement providers: internet browser population in the United States • the size of the panel provides the granularity 150m needed to uncover behavioral insights and targeting What’s in the torso & tail? (all the stuff that’s really important) opportunities that are impossible with smaller panels; Microsites, Micro-segments, Search Unique Visitors Phrases, Conversions Rates, Product • the diversity of different data sources ensures that & Category Interest the unified panel is representative of the consumer segments marketers need to measure and target; 10k 25k 1m • the diversity of sources enables Compete to isolate 0 Nielsen Online comScore Compete the bias of any single source, and then provides a Number of Sites basis for addressing that bias; and • Compete’s technology infrastructure and data Compete’s harmonization algorithms integrate data from management processes prepare the way for each panel source to create a unified panel with complete integrating new data sources, including mobile demographic and behavioral records for all panelists. At internet usage, return path data from cable set- pg 3
  5. 5. minimum, each panelist is assigned an anonymous and The clickstream data from Compete’s consumer panel isunique user identifier which is mapped to age, income, then weighted to match the total internet population usinggender and geographic buckets based on the profiles the weights depicted by the omnibus survey. During thisof panelists. Panelist demographic and geographic process Compete’s normalization system triangulatesinformation is gathered during initial registration, in specific audience metrics -- such as site visitation, searchsubsequent surveys, via third-party data appends, and/ activity, and online purchases -- across its entire panel toor via inferences that are based on panelists with similar, adjust for geographic and online behavioral biases that areknown internet behaviors natural and unavoidable in single data sources. Additional adjustments are made to correct for any bias associatedLike Compete’s multi-source panel, the harmonization with recruiting programs that offer rewards or coupons.algorithms are versatile, meaning that they adapt over timeto address the industry’s need for continuous and accurate Compete also accounts for aberrational gaps that occurdigital media measurement. in measurement due to technical interruptions or abrupt changes in panelist lifestyles. These may include workProjecting to the Population: time-off, computer crashes or replacements and otherProjection and Normalization events that cause abrupt changes in user behavior. Compete handles these “panel inactives” by applyingOnce the harmonization algorithms transform the diverse a seasonal and inter-period adjustment algorithm toinputs into a cohesive and unified panel, the next step in respondents who exhibit precipitous drops in usage.Compete’s data methodology is to weight the raw data so Compete’s normalization factors are integrated into finalthat final projections are representative of internet behavior estimates coincident with Compete’s weekly and monthlyin the United States. Compete’s normalization system was reporting schedule.developed by leading experts in the fields of marketing, 60%media and data research in 2000. Compete periodically Compete US Internet Populationupdates its underlying normalization models to accountfor changes in consumer demographics, behaviors, and 40%internet technologies.The normalization process begins with a 4,000-person 20%omnibus survey of the U.S. internet population whichis updated monthly and is administered independentlyfrom Compete’s consumer research panel. The 0% AGE GENDER INCOME GEOGRAPHICSinformation collected in this survey includes geographic M id dle A t la n t i c S o u t h A t la n t i c W. S . C e n t r a l W. N . C e n t r al E . S . C en t r a l E.N. Central $ 6 0 -10 0 K N ew E ngla n d M o un t ain $30-60K $ 10 0 K+ 18 -24 F ema le P aci fi c 45-54 2 5 -3 4 <$30K 55-64 35-44 M a le 65+and demographic profiles, household characteristics,technology usage, internet connection, and internetlocation. The resulting data from the omnibus surveycreates an accurate depiction of the internet browserpopulation for that month; this serves as the basis for Compete’s normalization process has been provenCompete’s audience and behavioral projections. over the past ten years across more than one thousand client relationships that span advertisers, agencies, pg 4
  6. 6. and publishers. This third component of Compete’s comprehensive and fastest growing online measurementdata methodology has been extended to support new service in the industry. Advertisers, agencies andcapabilities over time, including cross media studies and publishers rely on Compete PRO for daily and monthlymatching with external databases like frequent shopper digital intelligence, audience profiles, and search marketingprograms, credit profile databases, and transactional metrics across the top one million websites.databases. Media planning – Compete’s Behavior Match providesCombined with multi-source data and harmonization agencies with a new ability to develop media plans thatalgorithms, the Compete normalization process creates are based on more than 300 standard segments, plusdata that meet the high quality threshold required for customized segments that precisely match their clients’trusted, reliable consumer and media research. segmentation schemas. Publishers use Behavior Match to understand how the composition of their propertiesInsights, Actions, ROI: Metrics indexes against other online properties for key advertiserThat Matter categories.The Compete data methodology has been designed to Ad effectiveness – Compete’s Ad Impact solutionhelp companies navigate their ever-expanding digital measures how display advertising helps to drive branduniverse with confidence. Compete’s offerings help and sales metrics beyond basic impressions and click-advertisers improve online engagement and conversion,as well as apply online consumer insights to develop more Compete’s comprehensive vieweffective “offline” advertising campaigns. Compete has of the purchase funnelincorporated these same high-value and differentiatedinsights into products that agencies and publishers can STRATEGY INSIGHTS AND INTELLIGENCEnow use to target and sell media more effectively. And REACH MEDIA PLANNINGCompete’s client service teams work closely with clients toensure they gain the maximum business impact from theirrelationship with Compete. BRAND AD EFFECTIVENESSCompete’s client service teams support the digitalstrategies of leading brands in the automotive, consumer BEHAVIOR MARKETING EFFECTIVENESSelectronics, financial services, packaged goods,pharmaceutical, retail, telecom, and travel industries; the MOMENTUM ONLINE CHANNEL EFFECTIVENESSlargest advertising, media and direct marketing agencies;and the fastest growing search engines, portals, adnetworks and online media sites. throughs. Using an exposed-control methodology, AdCompete’s product offering includes: Impact measures changes in consumer behavior for key measures such as viewthrough, conversion, brand-termAudience insights and Competitive intelligence – search activity, and visits to consideration, social mediaCompete PRO, found at www.compete.com, is the most and/or competitor sites. pg 5
  7. 7. Marketing effectiveness – Marketing Effectivenessmeasures the impact of offline advertising and promotionalcampaigns on creating demand in high considerationproduct categories such as the automotive and mobiledevice/handset markets; marketers use this service to gainvaluable new insights into their advertising effectiveness,brand awareness, and competitive position.Web effectiveness – Online Channel Effectivenessenables marketers to optimize their customer acquisition,search marketing, and online sales, service, and loyaltyprograms. By benchmarking web effectiveness versusdirect rivals across industry-relevant metrics, marketerscan invest in the most effective customer acquisition andwebsite development initiatives.Holistic marketing measurement – For large globalbrands with integrated digital, traditional and socialmedia strategies, measuring the influence and interplayof each tactic on brand equity and sales is critical.Compete partners with other Kantar companies includingDynamic Logic, Cymfony, Cannondale and TNS tocreate comprehensive and actionable insights for brandmanagers to measure marketing performance across allcustomer touchpoints. Compete’s data, products and client service teams generate new insights that help clients optimize their digital strategies across a wide array of touch points within the digital purchase pathway. By expanding the focus from impressions and clicks to a more holistic view that includes branding, sales, and loyalty, Compete helps marketers increase the returns from their search, advertising, and website investments. pg 6