This document discusses challenges with digital media measurement and opportunities for improvement. It notes that cookies often provide an inaccurate view of audiences as they don't always reflect unique individuals and are frequently deleted. Additionally, clicks are an incomplete metric and optimization based solely on clicks ignores most users. The document recommends moving to a viewable impressions standard and currency based on audience size rather than gross impressions to address these issues.

1. Bolo 2011Lessons Learned in Digital MediaHugh McGoran, SVP Agency Sales

2. The Digital LandscapeV1011

3. Let’s Talk About Me

4. Because this is a presentation on digital media and measurement…$7M$500K$250K$15K14RESPECTV1011

5. Day 1Day 2Day 3Busy Mom!

6. Historical Footnote:*Comscore6

7. Because this is a presentation on digital media and measurement…$7M$500K$250K$15K14V1011

8. Semantic TargetingTiger + Woods{}=

9. Semantic TargetingTiger + Woods{}+=

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11. Changes in the Display Media EcosystemAdNetworksAgency Trading DesksExchanges, & SSPsData ProvidersPublishersBrandsDSPsAgencies

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13. comScore is a Global Leader in Measuring the Rapidly Evolving Digital World, Blanketing the Globe with a Local PresenceV1011

14. comScore Leverages Rich Panel Data to Deliver Unique and Broad Digital Business AnalyticsWeb Visiting & Search BehaviorOnline AdvertisingExposureOnline& Offline BuyingAdvertisingEffectivenessTransactionsPANELMedia & VideoConsumptionDemographics,Lifestyles& AttitudesMobile InternetUsage & BehaviorV1011

15. Unified Digital Measurement™ (UDM) Establishes Platform For Panel + Census Data IntegrationGlobal DEVICE MeasurementGlobal PERSON MeasurementPANELCENSUSUnified Digital Measurement (UDM)Patent-Pending MethodologyAdopted by 90% of Top 100 U.S. Media PropertiesV1011

16. Percentage of Machines Included in UDM Measurement August 2011 Penetration DataAsia Pacific Australia 89%China 69%Hong Kong 91%India 90%Indonesia 90%Japan 73%Malaysia 91%New Zealand 91%Philippines 92%Singapore 90% South Korea 59%Russia 63%Taiwan 80%Vietnam 93%North AmericaCanada 93%United States 90%Europe Austria 81%Belgium 88%Denmark 89%Finland 83% France 92%Germany 89% Ireland 89%Italy 85%Netherlands 88%Norway 89%Poland 81%Portugal 90%Spain 92%Sweden 90%Switzerland 85%Turkey 95%United Kingdom 91%Latin AmericaArgentina 94%Brazil 97%Chile 95%Colombia 96%Mexico 94%Peru 97%Puerto Rico 89%Venezuela 93%Middle East & Africa Israel 92%South Africa 74%V1011

17. North AmericaDistribution of Worldwide Internet AudienceUS Internet Population vs. Rest of the WorldEuropeLatin AmericaRest of the WorldMiddle East - AfricaAsia PacificUSIn 1996, 2/3 of the world’s Internet population was in the US, yet today Asia Pacific is the largest region with over 40% of the population.

18. Many emerging regions are likely to bypass old modes, skipping dial-up to go straight to broadband, making multimedia, video, and collaborative content immediately accessible.

19. Early adoption of mobile web in addition to PC web will likely be popular in many of these high-growth areas.The US Is No Longer the Center of the Online UniverseSource: comScore World Metrix, April 2011

20. 11% Worldwide Growth Fueled by Country GrowthInternet Users Age 15+ (MM) Annual GrowthUS: 0.8%Mexico: 22%China 18%Brazil 18%Russian Federation 14%Source: comScore World Metrix, July 2011

21. The Majority of Top Properties’ Audiences are Coming from Outside the USTotal Worldwide Unique Visitors (MM)Non-US AudienceUS Audience99184%89382%79%69867675%83%38126967%54%23722873%22060%65%218Source: comScore World Metrix, April 2011

22. UDM provides insight across device types (what are customers using) and content consumption (what are customers doing).Device coverage across WiFi and non-WiFi connections.

23. Mobile Web Usage On Track to Eclipse the DesktopSource: Morgan Stanley ResearchNumber of Global Users (Millions)

24. Half of Pandora’s Total Audience Access from Mobile Only

25. Mobile Adds Incremental Reach for Key Publishers

26. Android share of non-fixed computer traffic now exceeds that of iPhone but iOS dominates when iPad and iPod included U.S. Non-Fixed Computer Traffic by DeviceSource: comScore Device Essentials, U.S. May 2011

27. Google’s Android Has Rapidly Grown its Smartphone Market Share and Has Taken the Lead in the Race with Apple and RIMProduct: MobiLensData: Three month average ending July 2011Country: US, N= 31,100

28. Google’s Android Has Rapidly Grown its Smartphone Market Share and Has Taken the Lead in the Race with Apple and RIMProduct: MobiLensData: Three month average ending July 2011Country: US, N= 31,100Smartphone ownership increase year over year:54%Android growth year over year:278%

30. Platform Explosion is Just Getting Started66% of Americans DO NOT yet have a SmartphoneUS Smartphone Penetration:95% of Americans DO NOT yet have an iPadUS iPad Penetration:

31. May 1995 Time Magazine Special Issue

32. Wifi accounts for majority of non-fixed computer trafficTotal U.S. Traffic from Non-Fixed ComputersSource: comScore Device Essentials, U.S. May 2011

33. Mobile networks far more important to Android devicesShare of Traffic by DeviceSource: comScore Device Essentials, U.S. May 2011Smartphone = MobileTablet = Portable

34. 72 Million People (31% of 234 Million U.S. Mobile Subscribers, up 15% vs. Previous Qtr) Now Use a Smartphone to Access a Wide Variety of ContentWhen it Comes to Mobile Content Consumption, Retail Ranks as 3rd Fastest Growing Category

35. Smartphone usage and shoppingSmartphone Usage For ShoppingQ. For which of the following have you used your smartphone? Source: comScore Survey – April 201161%50%“Smartphone shoppers” are defined as those who stated they have used their phones to research or purchase products online

36. Smartphone usage and shoppingSmartphone Usage For ShoppingQ. For which of the following have you used your smartphone? Source: comScore Survey – April 201152%38%“Smartphone shoppers” are defined as those who stated they have used their phones to research or purchase products online

37. Smartphone usage and shoppingSmartphone Usage For ShoppingQ. For which of the following have you used your smartphone? Source: comScore Survey – April 201152%52%35%38%“Smartphone shoppers” are defined as those who stated they have used their phones to research or purchase products online

38. Smartphone usage and shoppingSmartphone Usage For Shopping681 Barcode Apps for the iPhone!Q. For which of the following have you used your smartphone? Source: comScore Survey – April 201129%20%“Smartphone shoppers” are defined as those who stated they have used their phones to research or purchase products online

39. Smartphone usage and shoppingSmartphone Usage For ShoppingQ. For which of the following have you used your smartphone? Source: comScore Survey – April 201148%33%“Smartphone shoppers” are defined as those who stated they have used their phones to research or purchase products online

40. In the Consumer Electronics category, e-commerce is having a profound negative impact on bricks & mortar retailers. Tuesday, March 8, 2011 Forecast for Best Buy: Worst Is Yet to Come Some key observations:E-commerce represents 25%+ of all sales of consumer electronics

41. Spending on the consumer electronics category at retail during the holiday season was down 5%* while online saw growth of 20%**.

42. Domestic same store sales of Best Buy declined by 5% and total sales declined by 3% in Q4 2010

43. Online sales of Best Buy increased by 13% in December

44. comScore data show Amazon consumer electronics sales up 37% Source: *NPD & ** comScore

45. The Power of Like

46. It is difficult to overstate the importance of social mediaUsage among US and overseas internet users is nearly ubiquitousSocial media is transforming:Geopolitics: Tunisia, Egypt, Libya, etcUS politics: 2008 election, and soon the 2012 electionRetail: GroupOn visitation is up 250% versus last yearMarketing: Facebook is the single largest server of display inventory on the webConsumer behavior: Social media accounts for 18% of all time spent online

47. Total Minutes on Social Media sites has increased 38% year over yearQ: How many minutes do internet users spend on Social Media sites?comScore Media Metrix, June 2011 (Panel Only Data)A: 73 Billion

48. Social Media sites draw more visitors than retail, e-mail, and news sitesQ: What percentage of internet users visit a Social Media site?A: 84.2%comScore Media Metrix, June 201 (Panel Only Data)

49. Just how important is social media?381minutes per user704pages per user33visits per user

50. Facebook can deliver massive audiences, but Tumblr, LinkedIn & Twitter are growing fastest

51. Google+ already at 25 million visitors worldwide

52. Brand pages on Google+ might become very important to retailersZeny Huang, Emerging Media Strategist at JWT New York4 Reasons Google+ Brand Pages will be Better than Facebook’sBetter Search OpportunitiesMore CustomizationBetter AnalyticsGoogle Can Learn from Facebook"Google+ tries to take the best from Facebook and the best from Twitter and brings it together.”Shiv SinghGlobal Head of Digital, PepsiCo

53. Who visits Social Media sites? Pretty much everyone.

54. Between September 2010 and April 2011, the percentage of adults who have ‘liked’ a brand increased from 47% to 59%eMarketer Daily, June 16, 2011Nearly 6 out of 10 Facebook users over age 18 liked a brand in April 2011.

55. Strategic challenges addressed by Social Essentials insights:Social EssentialsDetermine whether a brand is reaching it’s target consumer.Benchmarka brand’s presence on Facebook to their competitors.Compare the reach and frequencyof a brand’s Facebook presence to other media channels.Tailor marketing campaigns and partnerships to Facebookaudience’s interests and passions.

56. Measuring engagement on FacebookSegments can be applied to any comScore analysis

57. Newsfeed & Ad Exposures

58. Sponsored Stories

59. Profile/Wall Exposures

60. What we know to be true…Facebook Fans do not translate into regular visitors to Facebook Fan Pages. Marketers need to reach out to them with relevant content!*Source: Facebook** Source: comScore

61. Brands should focus more on the news feed and less on the fan pageRatio of News Feed Exposures to Fan Page Views42 to 145 to 1156 to 1

62. Brands can relate social impressions to the rest of their campaign

63. Fans are heavy Facebookers

64. Fans spend 1/3 of their time on social networking sites

65. Facebook is reaching a younger audience than the brand’s typical site visitors

66. Fans and Friends over index on visitation to the brand site when compared to the average Internet userStarbucks, Southwest, Bing: Lift in Website Visitation Among Fans & Friends vs. Average Internet UserSource: comScore Social Essentials, U.S., May 2011Why do friends of fans have a higher orientation toward the brand?Birds of a feather flock togetherTrusted persuasionFansFriends

67. Across key data points, Bing Fans outperform the average Bing visitor

68. For Starbucks, Exposed Fans also tend to spend more than the average Internet user

69. Some advertisers heavily use social media to encourage brand interactionHeineken heavily used socially enabled ads in May to encourage users to interact with its brand through FacebookKraft delivered the most socially enabled ads in May (about 166M impressions)* Ad Metrix (May 2011) US data

70. comScoreSocial Essentials WhitepaperCase study on Starbucks, Southwest Airlines and BingPublished in collaboration with FacebookDemonstrates how holistic understanding of social impact can change the way brands think about, leverage and build social audiencesTo download white paper please visitwww.comscore.com/like

71. The need to verify and measure media plan delivery and effectiveness is more important than ever

72. Cookies are not people. They may have some data tied to them but they are by nature not overly accurate regarding a user’s demographics or profile.

73. Clicks are at best an incompleteand at worst a misleading metric

74. Clickers Represent a Small and Declining Segment of Internet Users Clickers fell by half between 2007 and 2009

75. 8% of all Internet users account for 85% of all clicks

76. Optimizing against clicks means ignoring 84 percent of Internet usersJuly 2007March 2009Source: comScore, Inc. custom analysis, Total US Online Population, persons, July 2007 and March 2009 data periods

77. The Meddlesome Click ….“A click means nothing. A click earns no revenue and creates no brand equity. Your online advertising has some goal – and it’s surely not to generate clicks. Regardless of whether they clicked an ad or not, the key is to determine how that ad unit influenced a consumer to think, feel, or do something they wouldn’t have done otherwise.”John Lowell SVP Director, Research & Analytics Starcom

78. But, Many Agency and Advertisers Still Preoccupied with the Click Source: Feb 2010 Collective Survey of 420 Agency and Advertiser Executives What Metrics Do You Use To EvaluateAd Network Performance?

79. IAB Initiative:Making Measurement Make Sense

80. 3MS Initiative issued the following recommendationsPrinciple #1: Move to a “viewable impressions” standard.Principle #2: Online advertising must switch to currency-based on audience impressions, not gross ad impressions.Principle #3: Because all ad units are not created equal, the industry must create a better classification system.Principle #4: Determine interactivity metrics “that matter” for brand marketers, so that marketers can better evaluate digital’s contribution to brand building.Principle #5: Digital media measurement must become increasingly comparable and integrated with other media.

81. 5 Key Challenges in Digital Ad DeliveryAds are delivered but not visible to userAds appear next to objectionable contentFraud can occur in daisy chain of ad deliveryAds are delivered outside of intended targetsAds are delivered at sub-optimal frequency

82. Cookie Deletion: Rampant & GrowingSite CookiesAd Server CookiesOne Key Result: Substantial Understatement of Individuals Reached at an Optimal Frequency Level…

83. Does This Look Familiar?> 50% of Campaign Audience Exposed 1XOnly Around 15% of Audience Exposed at “Ideal” Frequency Levels

84. The Result of Proper Counting…< Half the number of uniques originally identified as “1x”Proper R/F counting illustrates a 2.5X increase in the number of individuals exposed at optimal frequency levels

85. Because of Multiple Users on a Computer, Cookies Can’t Always Accurately Identify who is Using a Computer at any Given Point in TimeOver 64% of home users share a home computer with other users The average number of users per machine is 2.1 Percent of People

86. Cookie-based demo targeting limits a campaign’s ability to selectively reach a targeted audience Target for this health & well being product was females age 35-5440% of exposed consumers outside of planned gender target15-2425-34Only 43% of females exposed to the campaign met the targeted age group35-4445-54Only 25% of all exposed consumers met planned targeting criteria