The document discusses the path to scarcity in digital advertising. It notes that as more ads are blocked or viewed by the wrong audiences, inventory becomes worthless. This leads publishers and agencies to focus on viewable, fraud-free impressions that reach the right target audiences. The document advocates educating clients about these issues, reassessing metrics, and negotiating new deals based on quality over quantity to find stability in a scarce environment.

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The Path to Scarcity
 Mike Rich
@MikeR295
@comScore
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2. @comScore @MikeR295 #MPOMMA
 What’s all this talk about scarcity?
 How do we get to scarcity?
 What is an agency/publisher to
do?
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June 2012
June 2011
+15%
3 Source: comScore Ad Metrix

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June 2011 June 2012
+35%
-28%
5 Source: comScore Ad Metrix

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Rich
Search Banner Media
6 Source: IAB/PWC

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2010 -$0.64
2011 -$0.11
7 Source: IAB/PWC

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The path to scarcity
Not viewed =
Wo r t h l e s s
Wrong audience =
Overvalued
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Validated Campaign Essentials
vCE
Impressions
in-view
or correct geography
brand safety
fraud
target audience
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US EU
Allstate
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Over 800,000,000 impressions
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Large sites scored better than long-tail sites
77% 74% 70%
61%
66% 63% 61%
55%
US EU
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R²=0.0373
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Reaction
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Image: arindambanerjee / Shutterstock.com 17

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Reassess
and
Revalue
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Monthly Imps. CPM Revenue
What’s 500 MM $5 $2.5 MM
happening today 500 MM $2.50 $1.25 MM
1 BN $3.75 MM
Monthly Imps. CPM Revenue
450 MM $5 $2.25 MM
What sellers
250 MM $3 $750 k think will happen
700 MM $3 MM $750,000 loss
Monthly Imps. CPM Revenue
What should 450 MM $6 $2.7MM
actually happen 125 MM $6 $750 k
125 MM $3 $375 k
$75,000 gain
700 MM $3.825MM
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Educate
and
Negotiate
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Audience Composition Targeting Efficiency
42% 1.41x
of impressions more effective vs. an
hit their primary target… untargeted campaign
21 Source: vCE Norms, Worldwide, All Campaigns as of June 2012

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What’s Next?
• Adapt – quickly!
• Measure viewability
• Focus on the basics
• Educate your teams
• Define reasonable metrics
• Be good partners
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• Remove worthless clutter
• Assess true value
• Find fair metrics
Scarcity = Stability = Success
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Thank you!
 www.comscore.com/VCE

Mike Rich
mrich@comscore.com
@MikeR295
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