In this presentation, Justin Gibbons summarises the key findings from our new research and concluded that as an industry, we value what we measure but we are measuring the wrong stuff; not what drives performance.

1. 2010 Media Performance
Industry Survey Report
A work.report
Wednesday 3rd November 2010

2. Background
• The 2010 Media Performance Industry Survey was commissioned to
assess the industry’s thinking in relation to Media Performance,
specifically exploring the very latest thinking on the measurement of
media performance.
• In context of re-examining value and values in media, this research
sets out to unearth how leading influencers in the industry view the
management of relationships and strategies for managing change
• The survey was conducted online in October 2010 – with 250
responses obtained from a sample composed of media agencies,
media owners and client-side marketers

3. Key findings
• We value what we can measure
• A new view of performance, and new metrics required
• It’s not just about buying
• Integration can save advertising
• We know where we need to get to, it’s how

4. Contribution vs. Measurement
74%
63% 63%
50% 50%
46%
9%
15%
12%
39%
13%
56%
Communications planning Media planning Engagement strategy Conversion rate
optimisation
Media innovation Media buying
Perceived to contribute towards media performance (top 2 box out of 6 point scale)
Perceived to be succesfully measured by the industry in terms of performance (top 2 box out of 6 point scale)
Planning contributes but is measured poorly.
Media buying makes less contribution, but is well measured

5. Media Performance Projections
2% 3% 4% 4%
24%
16%
32%24%
30%
46% 49%
46%
67%
56%
75%
68%
50% 48%
30%
17% 13%
Buzz and
reputation
monitoring
Web analytics Econometric
modelling
Conversion rate
optimisation
Awareness
tracking
Competitive
monitoring
Media auditing
Q. For each of the following performance management activities, state whether they will be
of more, less or of equal importance over the next 5 years?
More important
Of equal importance
Less important
Big growth areas are ‘buzz monitoring’ and ‘web analytics’.

6. Media Performance Metrics
2% 3% 2% 4% 5%
45% 43%
24% 26% 29%
39%
49%
45% 51%
75% 71% 70%
57%
46%
9% 7%
Revenue creation Engagement
metrics
Customer value Cost per sale /
action
Conversion rates Cost per
thousand (CPT or
CPM)
Reach and
frequency
Q. Do you expect the following performance metrics to become more or less important in
the next 5 years?
More important
Of equal importance
Less important
The industry standards are becoming less important.
Revenue creation, customer value & engagement metrics are
becoming more important

7. Role of Media Agencies
23%
15%
32%
23%
39%
27%
43%
47%
38%
58%
25% 30%
All respondents Media Agency respondents Media Owner respondents Client-side respondents
Q. Do you think the media agency’s role will become more or less important over the next
5 years?
More important
Of equal importance
Less important
Overall, responses diverge

8. On the one hand ...
Media agencies are the best placed to be
the guardian of the process from comms
strategy to evaluation, but they need to
take this place proactively
More of the value chain is
converging on media agencies

9. ... on the other
Media agencies are the best placed to be
the guardian of the process from comms
strategy to evaluation, but they need to take
this place proactively
Clients have a greater understanding about
the consumer than ever before, through
the data that they have its more possible to
be able to deal direct with the media
owners.
More of the value chain is
converging on media agencies
Agencies are struggling to get the right talent at the top of their
organisations to win the battles. Equally there will be a trend for
clients to move buying in house as they seek to "own" data and not
rely on agencies to be the guardians of it - search is first , online
display will follow and other media will follow after that.

10. Media Agencies
5% 24% 24% 33% 12% 3%
Q. How well do you think media agencies are equipped to meet the challenges of their clients?
1 - Not well 2% 3% 4 5 6 - Very well
Only 48% of respondents believe that media agencies are well
equipped to meet client challenges.
NET % Well equipped to meet
client challenges = 48%

11. Getting left behind?
Media agencies are incentivised to continue to
promote the use of traditional media as that is what
they understand and that is where their current
revenues are derived.
Media agencies do not fully understand data and
developments in technology and are not structured
sufficiently to deal with key issues like convergence
and the opportunities available

12. Media Performance: Agency Attributes
81%
76%
69% 69%
66%
63%
46%
41%
31%
63%
68%
16%
55%
40% 39%
80%
52%
31%
Strategic input Innovative
thinking
Talent
development
Client servicing
levels
Consumer
journey insights
Marketing
effectiveness
capabilities
Buying
performance
Category
expertise
Proprietary
technologies
Perceived as an important media agency attribute in terms of delivering performance to clients (top 2 box out of 6
point scale)
Perceived as an important media agency attribute in terms of determining the outcome of media pitches (top 2 box
out of 6 point scale)
Buying is the pitch winner

13. Media Performance: Delivering performance
79% 78%
70%
75% 75%
70%
45%
36% 33%
76% 73%
68% 66% 65%
60%
46% 46%
39%
96%
86%
82%
57%
61%
57%
61%
54%
29%
Strategic input Innovative
thinking
Client servicing
levels
Talent
development
Consumer
journey insights
Marketing
effectiveness
capabilities
Buying
performance
Category
expertise
Proprietary
technologies
Q. How important are the following attributes of a media agency in delivering
performance to clients?
Media agency respondents Media owner respondents Client-Side respondents
Strategy and innovation are the shared performance priorities

14. Media Performance: Pitch outcome
82%
74%
65%
46%
53%
45%
40%
38%
17%
78%
59% 61%
51% 54%
32%
28% 25%
15%
74%
82%
93%
78%
54%
50%
71%
25% 25%
Buying
performance
Innovative
thinking
Strategic input Client servicing
levels
Category
expertise
Consumer
journey insights
Marketing
effectiveness
capabilities
Proprietary
technologies
Talent
development
Q. Now rate these media agency attributes in terms of how important they are in
determining the outcome of media pitches
Media agency respondents Media owner respondents Client-Side respondents
Client priorities are very different from their pitching agencies (oops!)

15. Client Media Performance
79%
65%
54% 54%
25%
21% 19%
16% 15%
Developing
integrated media
strategies
Developing cross
platform
initiatives
Engaging more
with media
owners
Changing media
performance
metrics
Tightening media
buying targets
Changing media
agency’s contract
Holding a pitch Improving
compliance
Changing the
media agency
team
Perceived as beneficial to a client's media performance (top 2 box out of 6 point scale)
Integration is the challenge

16. Client Media Performance
74%
54%
51%
37%
17%
20%
7% 9% 9%
70% 68%
53%
83%
23%
15%
23% 21%
15%
93%
81%
59% 59%
44%
26%
33%
26%
30%
Developing
integrated media
strategies
Developing cross
platform
initiatives
Changing media
performance
metrics
Engaging more
with media
owners
Tightening media
buying targets
Changing media
agency’s contract
Holding a pitch Improving
compliance
Changing the
media agency
team
Q. Using the scale below, how would you rate the following activities in terms of their
benefits for a client's media performance?
Media agency respondents Media owner respondents Client-Side respondents
Media owners are very keen to engage more with clients

17. Media Performance by Channel
25%
21%
16% 16%
12%
11%
Sponsorship Online media Out of home media Mobile Print media Broadcast media
Q. In your view, for which of the following media channels is the
assessment of media performance at its weakest?
Assessment of media performance weakest in sponsorship
and online, strongest in TV and Press

18. Guess the survey
The research used does not reflect the reality of either
circulation or readership or attention. A survey gives an
average for a page in a title? The metrics are based
largely on cover & frequency, much less on role or
relationship for communication.
Agencies create nonsense plans based on cost ranks
and beating an auditors pool. We are buying the
cheapest collection of food to make a meal vs. planning
a meal to make it appealing. Now going to connect itself
into online in the wrong way.

19. Media Auditing
54%
47%
31%
15%
1% 1% 0%
67%
38%
47%
36%
15%
8%
15%
67%
63%
78%
52%
33% 33%
19%
media auditing has
lowered media costs
for clients
media auditing has
improved agency
financial transparency
media auditing
improves an agency’s
contribution to client
performance
media auditing
improves an agency’s
client service
media auditing
encourages neutrality
in media planning
media auditing
measures the most
relevant metrics
media auditing
enhances the
creativity of a media
agency
Q. To what degree you agree/disagree with the following statements about media
auditing? NET % agree with statements
Media agency respondents Media owner respondents Client-Side respondents
Base – all respondents (247)
Auditing is a one way street

20. Thank you