Digiday Mobile with Nielsen: Measuring the Effectiveness of Advertising within a Mobile App Environment

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Mobile apps have overtaken browsing on the desktop Web, and consumers are spending nearly two times more time in mobile apps than on the Web. It’s now critical for marketers to have relevant metrics on the branding impact of their mobile in-app marketing campaigns. Learn about Nielsen’s solutions for quick and cost-effective mobile brand advertising effectiveness measurement and optimization to help advertisers maximize their mobile ROI and understand how to best take advantage of this growing medium.
Presenter: Jeff Smith, svp, solution marketing and account activation, Nielsen

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  • Mobile has a huge $ opportunity relative to time spentInternet (excl mobile) advertising reached $30B in USA in 2011 per IAB. Mobile advertising reached $1.6B per IAB. $20B opportunity calculated assuming internet and mobile ad spend share equal their respective time spend share. Time spend and ad spend share data eMarketer, 12/11. Internet and mobile ad dollar spent amount per IAB.Print includes newspaper and magazine.
  • Metrics remain a problem
  • Our vision for measurement at Nielsen is consistent across all screens
  • A big part of that is mobile has unique tech challenges that make measurement difficultThere is no mobile cookie
  • UDID has been around from the very beginning of Android devicesIFA was only released with iOS6We evaluated several of the methods of identifying devices including device fingerprinting and IP address, and these are the ones we are the best for our purposes due to the accuracy (can accurately identify unique devices) and sensitivity around privacy (i.e. can be deleted or turned off). There are a lot of unique IDs out there, but these are the standard ones used by Google and Apple, which represent over 85% of the marketFor the market to support this on a scalable manner, app providers need to build their apps so they can support UDID and IFA. In addition, they have to be able to pass this information to market research companies such as Nielsen so we can use it to inform advertising effectiveness metrics.
  • Our approach to measurement is the same for mobile and onlineFor online, we use the mobile equivalent of a cookie – unique IDs that we’ve vetted for accuracy to provide granular exposure informationAndroid – Unique Device ID (UDID)Apple – Identifier for Advertisers (IFA)
  • Digiday Mobile with Nielsen: Measuring the Effectiveness of Advertising within a Mobile App Environment

    1. 1. Measuring and Optimizing Resonancefor Mobile Brand Ad CampaignsDigiday Mobile Jeff SmithDecember 2012 Senior Vice President, Product Leadership The Nielsen Company 1 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    2. 2. Nielsen: World’s leading information and insights companyWorking with the majority of the world’s leading brand advertisers• Analyzing 55% of the world’s advertising• Measuring audiences and effectiveness in all 210 US TV markets and 29 countries• Connected to 10,000,000 consumers worldwide; scanning billions of transactions daily Nielsen helps brand advertisers intelligently leverage data to maximize return on advertising investmentAlso working with the majority of the world’s leading media sellers & agencies• 75% of top media agencies and all major holding companies• 90% of the top 50 ad networks, 75% of the top 100 publishers Nielsen helps media sellers intelligently leverage data to maximize brand advertising sales 2 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    3. 3. Upwardly Mobile: The Rapid Evolution of Mobile Media The Smartphone Revolution: From 7% to 56% of mobile phones in 5 years U.S. Smartphone Penetration, Q2 2006-Q3 2012 60.00% 53% 56% 56% 49% 50.00% 46% 43% 38% 40.00% 36% 30% 30.00% 28% 25% 23% 21% 18% 20.00% 17% 16% 13%14% 10%10% 10.00% 7% 6% 7% 5% 3% 3% 4% 0.00% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20062006200620072007200720072008200820082008200920092009200920102010201020102011201120112011201220122012 2006 2007 2008 2009 2010 2011 2012 3 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    4. 4. What do we mean by mobile? Different devices Different environments in devices: in-browser, in-app iPhone Android 4 Tablet Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    5. 5. Upwardly Mobile: The Rapid Evolution of Mobile Media Increasingly App-Focused: 5 Million More Consumers Use Mobile Apps than Mobile Web Number of App Users Nearly Doubled (+85%) Last Year 5 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    6. 6. Upwardly Mobile: The Rapid Evolution of Mobile Media App-Happy: Time spent on mobile apps rose 120% Social Is Helping Drive Time Spent on Apps 6 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    7. 7. Simultaneous Usage: Mobile + TV Multitasking in the New Normal: 38% of smartphone owners use their phone daily while watching TV Consumers report that they are: • Shopping Visiting a social networking site • Looking up product info related to an ad seen on TV 7 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    8. 8. Advertising: Big growth opportunity in mobile 8 2012 KPCB Internet Trends Year-End Update KPCB, 12/3/2012 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    9. 9. The Brand’s Take: Shifting advertising to new media Brands: Which of the following would lead you to increase spending in new media? Improved clarity around the actual return 68% on your brand advertising investment Ability to verify my brand advertising Cleaning up the created the desired result (e.g. increased 56% “Metrics Morass” awareness of my product) with new media Ability to use the same metrics to evaluate brand advertising effectiveness online as 53% are used offline Purchasing efficiency (e.g. the ability to reach audience at scale through fewer 50% outlets) Ability to verify my online brand advertising was actually delivered to my target 38% audience 9 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    10. 10. Why they don’t spend now “For our brands, the challenge is prioritizing mobile over other well-understood, well-measured results drivers. Forthe organization, the challenge is learning about mobile — what works, what doesn’t and how to do it well.” Jim Cuene, Director, Interactive Marketing, General Mills 10 Brands’ Greatest Mobile Challenges Digiday, 12/5/2012 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    11. 11. Advertising effectiveness simplified Effectiveness principles are consistent across screensReach the right people Influence their opinion Reach Resonance Impact their behavior 11 Reaction Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    12. 12. Understand campaign effectiveness across devices Use a consistent metric to compare brand-building effectiveness across all digital platforms Which metrics do you believe are most appropriate to use to determine the effectiveness of your online brand advertising? Brand Lift: 10% Brand Lift: 25% Brand Lift: 45% Brand Lift: 40% 12 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    13. 13. Advertising effectiveness complicatedMobile measurement faces unique technological challenges Creative exposure Ad exposure Ad exposure frequency Targeting or site METHODOLOGY: CONCURRENT TEST AND CONTROL – Best Practice How did my X ??? mobile campaign do? 13 METHODOLOGY: PRE / POST – More limited Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    14. 14. Challenges with pre/post methodology In-appCollect responses BEFORE in- Exposed collected AFTER in- campaign app campaign starts app campaign starts starts Launch Truly Control Test exposed?Consumer ExternalFavorability influence? Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 But… Don’t let better wait on perfect 14 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    15. 15. Evolving technology landscape will improve mobilemeasurement Smart Phone Operating System Share Others, 5.9 % iOS6 Sept 2012 iOS, 34.3 % Unique Device ID Identifier for Advertisers Android, 5 (UDID) (IFA) 1.8% Rim Blackberry, 8.1% UDID IFA 15 Nielsen Mobile Insights June 2012 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    16. 16. Mobile measurement evolved:Will become more consistent Consistent approach to online and mobile – concurrent test and control, granular data to evaluate advertising effectiveness Creative exposure Ad exposure Ad exposure frequency Targeting or site 16 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.
    17. 17. Summary• 3R Framework – simple, actionable, powerful – Consistent cross screen measurement is critical – For brand advertisers, resonance is brand lift• Mobile advertising measurement faces unique challenges – No cookie, can’t employ best practices in experimental design – Lack granular performance data (creative, frequency, etc)• Don’t let better wait on perfect – Don’t let better wait on perfect – Use best available resources today, build for tomorrow 17 Digiday: Measuring and Optimizing Resonance for Mobile Brand Ad Campaigns Copyright © 2012 The Nielsen Company. Confidential and proprietary.

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