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Omma metrics joe_laszio

  1. 1. Digital Media Measurement:Friend or Foe for Marketers?<br />Joe Laszlo, Director of Research (outgoing); Deputy Director of IAB Mobile Marketing Center of Excellence (incoming)<br />OMMA Metrics and Measurement Conference<br />March 2011<br />
  2. 2. Digital Media Measurement Today<br />Robustly competitive with many diverse vendors<br />Leading vendors bring a high degree of integrity to the marketplace<br />Innovation comparable with that of online media itself<br />Nearly ANYTHING is measurable in a way that other media can only dream of<br />And all media are becoming digital, so some of these “digital” media measurement characteristics spread to other media<br />FRIEND!<br />p 2<br />
  3. 3. Digital Media Measurement Today<br />A cacophony of contradictory metrics from dozens of competing vendors<br />Almost impossible to determine reach and frequency of an ad schedule on multiple sites and/or ad networks<br />No consistency across research vendors on basics like the Top 20 sites within a content genre<br />Census-based web analytics and vendor data yield different exposure numbers <br />Vendor methodology changes render dramatic fluctuations in measurement<br />FOE!<br />p 3<br />
  4. 4. Contrast With Traditional Media Measurement<br />Media buyers and sellers accept a shared margin of error<br />Value chain players work within scientific norms<br />Agreement on exposure measurement and “currency” allows billions of dollars to flow through the television advertising supply chain<br />Planning and buying, <br />Guaranteeing and stewarding guarantees<br />Settling up the differences between guarantees and deliveries, make goods or overdelivery<br />Reach and frequency of a TV schedule against target demos are readily available<br />Reach and frequency across traditional media (e.g.,TV + print) can be calculated<br />p 4<br />
  5. 5. At Best Maybe Marketers and Digital Media Measurement are “Frenemies?”<br />DIGITAL MEDIA MEAS.<br />MARKETERS<br />Source: Gossip Girl<br />p 5<br />
  6. 6. Even if Measurement isn’t a Friend, the Market’s Growing Fine…?<br />Quarterly Online Ad Revenue Comparisons — 1Q2001-3Q2010<br />$22,661<br />$23,448<br />$21,206<br />$9,626<br />$12,542<br />$7,267<br />$16,879<br />$6,010<br />$7,134<br />2008<br />2009<br />2010<br />2001<br />2002<br />2003<br />2004<br />2005<br />2006<br />2007<br />Source: IAB Internet Advertising Revenue Report, 2010 First Half and Second Quarter Report; IAB Press Release: “$6.4 Billion in Q3 2010 Sets New Record for Internet Advertising Revenues.”<br />p 6<br />
  7. 7. But Especially in Terms of Brand Advertising, Measurement is a Barrier<br />2009 US Measured Media Spend:<br />$147 Billion Total<br />2009 US Online Media Spend:<br />$24 Billion Total<br />Source: analysis based on Barclay’s Capital, Think Equity Partners LLC and DMA. From Ad Age, Building Brands Online, 2010<br />p 7<br />
  8. 8. The Data Issue Deters Marketers<br /><ul><li>The lack of online measurement standards makes accurate comparisons impossible</li></ul>“There isn’t one ‘standard’ for online measurement. Comscore, NetRatings, servers all have different numbers.”<br />- CPG Marketer Client Lead, Agency<br />“Measurement should still be an important part of the story … but I submit that it should be the sizzle not the steak.” -- Andy Atherton, (Ad Age, Feb 2009.)<br /><ul><li>Marketers have difficulty justifying large campaigns without trustworthy data</li></ul>“If reliable metrics were available, we would put a much larger chunk of money into online. It is too high-risk to sell this approach upwards without hard data. Right now, we can’t scale our content marketing efforts confidently.”<br />- Prospect Acquisition, Financial Services<br /><ul><li>Without proper metrics, marketers have to try to piece together the story themselves</li></ul>“Reliable metrics on brand-building are the Holy Grail. Right now, we use a collage of metrics to prove things out.”<br />- Account Manager, Digital Agency<br />Source: IAB and Bain & Co., Building Brands Online: An Interactive Advertising Action Plan, Nov., 2009<br />p 8<br />
  9. 9. The Digital Metrics Universe:Publishers<br />By the way, this line is getting pretty blurry…<br />p 9<br />
  10. 10. The Digital Metrics Universe:Agencies and Marketers<br />p 10<br />
  11. 11. The Digital Metrics Universe: IAB Has Helped Create Rigor and Standards<br />The IAB’s work so far has been vital, but it’s treating symptoms not the underlying issue.<br />p 11<br />
  12. 12. What is Making Measurement Make Sense?<br />An initiative to fix digital measurement with an eye to building cross platform measurement metrics and systems and making our medium more brand hospitable <br />A process that will create an efficient supply chain so that the planning, buying and evaluating of all media are transparent and consistent<br />A new perspective: digital media measurement is a business issue, not a research problem<br />An independently led, short-term way to create digital media currency   <br />A mechanism for developing recommendations for the establishment of a measurement governance body that will oversee standards, quality and change management for all media measurement  <br />p 12<br />
  13. 13. Who is Behind Making Measurement Make Sense?<br />IAB,4A’s and the ANA are the founding partners and form the leadership team<br />IAB, 4A’s and ANA jointly issued an RFP to consulting firms to lead the process<br />The founders evaluated consultant proposals together<br />Bain and Medialink selected by the partners to lead the effort<br />p 13<br />
  14. 14. Making Measurement Make Sense: Project Objectives<br />Determine the right metrics and solutions<br />Drive industry consensus around the solution<br />Establish measurement governance model<br />p 14<br />
  15. 15. Making Measurement Make Sense Can Significantly Improve Digital Measurement<br /><ul><li>Increased effectiveness and accelerated growth of brand marketing in digital media
  16. 16. Reduced “supply chain” costs in planning, buying and managing digital media
  17. 17. Rapid expansion of cross-platform marketing campaigns that better leverage digital
  18. 18. Strong foundation for ongoing cross-ecosystem collaboration and metrics/standards change management</li></ul>p 15<br />
  19. 19. Conclusion: Digital Measurement is a Friend. But it Could be a Better Friend<br />Digital measurement is a powerful tool, delivering insights on consumer behavior and ad impact that no other media can match. <br />But maybe digital measurement is a little nerdy, lacking in listening skills (among other social graces).<br />Past IAB measurement efforts have been helpful, but also scattershot and somewhat reactive.<br />The industry has a real opportunity to improve digital measurement, holistically, preserving the dynamism we love while encouraging greater clarity and accountability.<br />Since all media are ultimately going to be digital, it’s even more important to seize this opportunity now. <br />p 16<br />
  20. 20. Thanks!<br /><br />