The document discusses the evolving landscape of digital advertising, highlighting the rapid growth of online ad spending compared to traditional media and the challenges brands face in establishing effective online branding strategies. It emphasizes the importance of accurate measurement methods, like Comscore's unified digital measurement, to overcome issues related to cookie-based targeting and optimize ad delivery to the right audience. Through Kellogg's advertising effectiveness model, the document illustrates the potential for improved ROI and campaign performance in the digital ecosystem.

1. Changing How the World
Sees Digital Advertising
IAB Conecta 2012
Gian Fulgoni Executive Chairman and Co-founder, comScor

2. 1 Branding Advertising’s Digital Challenge
2 Kellogg’s Solution
3 Viewing the Future

3. IAB says U.S. online ad spend is now larger than
newspapers, magazines and radio, and equivalent to 46% of TV
10X Faster
+22% Growth
vs. year ago Than
All Media
$31.7 Billion
U.S. Online
Ad Spending
in 2011
SOURCE: IAB for Internet Advertising Revenue and KANTAR for Total Mediaedia
Measurement

4. Online ad spend in Latin America* is growing twice as
fast as in the U.S.
3.5X Faster
+42% Growth
vs. year ago Than
All Media
Latin
America
$2.5 Billion
Online
Ad Spending
in 2011
*Argentina, Brazil, Chile, Columbia, Mexico, Peru
SOURCE: IAB for Online and Various for Total Media dia
Measurement 2011

5. But, Branding Advertising is Relatively Weak Online
Only One Third of All Online Ad
Spending is Branding
Direct Response (Mainly Search)
Still Dominates
In Traditional Media
Branding Advertising Dominates

6. Branding’s Online Challenge:
Is the Target Audience Guaranteed?

7. comScore’s Approach to Digital Measurement
2 Million Person Panel PERSON-Centric Panel with
360°View of Person Behavior SITE-Census Measurement
Web
Visiting &
Online Search Online
& Offline Behavior Advertising
Buying Exposure PANEL CENSUS
Person Behavior
Measured Passively
Advertising
Transactions
by KeystrokeEffectiveness
Typing Signature
Media & Video Demographics,
Consumption Lifestyles
PANEL & Attitudes
Unified Digital Measurement™ (UDM)
Mobile Internet
Usage & Behavior Patent-Pending Methodology
1 Million Properties
Adopted by 80%
of Top Global Media Properties V1011

8. In 2007, comScore’s First Post-Buy Analysis Across 8 Digital
U.S. Campaigns Showed that Accuracy of Digital Delivery Left
a Lot to be Desired
70%
Percent of Ad Impressions for 8 Campaigns
60%
50%
40%
30% 61%
20%
10% 19%
12%
8%
0%
In US But Not Hit Target Hit Target Outside US
Target Frequency >=5 Frequency <=4

9. Branding advertisers on TV are accustomed to audience
guarantees and expect the same in digital
But, accuracy of cookie-based digital plan delivery is problematic:
Cookie Deletion Cookie Proliferation
X Cookies Are Not People
Source: comScore 2011

10. Because of Multiple Users, Cookies Can’t Accurately Identify
Who is Using a Computer at any Given Point in Time
Over 64% of home users share a computer with other users
3+ users 1 user
30% of the
32% 36%
time, someone other
than the Facebook
logged-in person is
actually using the
2 users
computer
32%

11. Cookie Deletion is a Global Reality
…and a Global Challenge
Accurately counting reach with cookies is not possible,
yet is currently the method used in most ad servers and analytics systems
Ad Server Cookies
Percent of Average # of cookies
Country computers per computer for
deleting same campaign
Australia 37% 5.7
Brazil 40% 6.6
U.K. 35% 5.9
U.S. 35% 5.4

12. comScore quantified incidence of sub-optimal ad delivery at
the individual person level…
Reach, Frequency and Demographics
… to better understand sources of waste and
identify opportunities to extract more value
from digital advertising dollars

13. CE™: Massive Global Market Experience
2,600+ Studies for 120 advertisers / agencies in 28 countries
North America Europe Asia Pacific
Allstate
Not an exhaustive list. Includes advertisers currently working with comScore
vCE who have agreed to be named publicly.

14. Some Things We’ve Learned About Digital Media Plan Delivery
 The negative impact of cookie deletion
– Cookie deletion inflates ad frequency and deflates ad reach
by as much as a factor of 2.5X
 Targeting accuracy using cookies:
– 70% for 1 demo (e.g. women)
– 48% for 2 demos (e.g. women age 18-34)
– 11% for 3 demos (e.g. women age 18-34 with kids)
– 36% for behavioral targeting (e.g. people visiting travel sites)

15. Kellogg’s Solution

16. The KPI Framework: Establishing a model for Advertising
Effectiveness – applied initially to Online Media
PRE-MARKET QUALITY • Branded Recognition
Does my creative have the right to succeed? • Brand Buy Next
• % Impressions to Target/Targeting Index
AUDIENCE DELIVERY • Frequency of Exposure
Did we efficiently reach our Target?
• CPM
• Brand Awareness
IN-MARKET EFFECTIVENESS • Purchase Interest
Are we moving the needle? • Message Association
• Direct Response

17. Looking at a few of Kellogg’s larger campaigns
Data provided by comScore Campaign Essentials is at an
individual publisher, individual campaign level
Impressions Impressions Avg. Frequency
Targeting Index % on Target Total Campaign
Campaign Total
Publisher 1
Publisher 2
Publisher 3
Aaron is there
data for this
Publisher 4 chart?
Publisher 5

18. comScore shows that there have been some clear
top performances
In total, this campaign effectively delivered to target and efficiently
balanced the exposures
Impressions Impressions Avg. Frequency
Targeting Index % on Target Total Campaign
Campaign Total 216 58% 3.2
Publisher 1 163 44% 4.0
Publisher 2 225 60% 3.1
Publisher 3 140 37% 3.5

19. But comScore Also Shows That There Are Some
BIG opportunities
In this case many impressions are virtually being thrown away as
the wrong audience is reached over and over again
Impressions Impressions Avg. Frequency
Targeting Index % on Target Total Campaign
Campaign Total 105 53% 12.0
Publisher 1 97 49% 8.8
Publisher 2 25 13% 21.7
Publisher 3 92 47% 11.4
Publisher 4 143 72% 15.6

20. Is Kellogg’s Strategy Working?
The early results say ABSOLUTELY
Implemented new Digital strategy and analytics in the first half of 2011.
ROI results from our first two Brand Market Mix Models have just come in.
Brand 1 ROI Brand 2 ROI
6x
5X 3X
2X
ROI ROI
Year 1 Year 2 1H 2011 Year 1 Year 2 1H 2011

21. The Future

22. Arguably the Most Important Digital Advertising Initiative To
Date: Making Measurement Make Sense (3MS) Mission
 Reduce costs of doing business due to
complexity of digital advertising ecosystem
 ‘Single Tag’ solution to reduce complexity
 Improve reporting of ad exposure
 Bolster confidence that ads delivered are
actually visible

23. comScore quantified incidence of sub-optimal ad delivery
across all key ad delivery dimensions…
… to better understand sources of waste and
identify opportunities to extract more value
from digital advertising dollars

24. vCE US Charter Study:
12 Major Branded Advertisers Came Together to Lead & Learn
18 campaigns
2 billion impressions
400,000 sites
Allstate

25. vCE Charter Study replicated in Europe with similar results
15 campaigns
640 million impressions
213,000 sites

26. vCE Charter Study:
In-view Rates Need to Be Improved
U.S. EU
69% 67%
AVERAGE AVERAGE
Campaign In-view ad rates ranged from:
U.S. 55% to 93% EU 64% to 72%

27. vCE Charter Study:
Opportunity for improvement at many of the largest sites
98%
69%
In-View ad rates
across Top 500
7% US sites
MINIMUM AVERAGE MAXIMUM
100%
63%
In-View ad rates
across top 100
0.2% EU sites
MINIMIUM AVERAGE MAXIMUM

28. Large sites scored better than long-tail sites
Percentage of Ads Served In-View
77% 74% 70%
61%
66% 63% 61%
55%
US EU

29. Digital Ad Economics:
The Good Guys Aren’t Necessarily Winning
Low correlation of In-View Rates & CPM
R²=0.0373
An equally as weak correlation was also observed between CPM
and ability to hit a primary demographic target

30. vCE Charter Study:
Ads Sometimes Fall Outside of Desired Geography
U.S. EU
4% of ads were served 7% of ads were served
outside geography. outside geography.
Up to 15% of ads on a Up to 27% of ads on a
given campaign given campaign
About half of geographic waste was not
only out of target but also out of language

31. vGRP can provide more accurate analysis of campaign
effectiveness in Marketing Mix Models
GRP: Negative vGRP: Positive
Correlation Correlation
100 80 100 80
90 90
70 70
80 80
60 60
70 70 vGRP
GRP 50 50
60 60 Sales
Sales
50 40 50 40
40 40
30 30
30 30
20 20
20 20
10 10
10 10
0 0 0 0
Month 1 Month 2 Month 1 Month 2

32. The KPI Framework: Establishing a model for Advertising
Effectiveness – applied initially to Online Media
PRE-MARKET QUALITY • Branded Recognition
Does my creative have the right to succeed? • Brand Buy Next
• % Impressions to Target/Targeting Index
AUDIENCE DELIVERY • Frequency of Exposure
Did we efficiently reach our Target? • % Impressions in View
• CPM
• Brand Awareness
IN-MARKET EFFECTIVENESS • Purchase Interest
Are we moving the needle? • Message Association
• Direct Response

33. Where Kellogg’s is Going: In-Market Optimization at a
Campaign Level Based on Cost and Effectiveness
• Opportunity to optimize - Budgets follow performance
• Multiple publishers, each with high reach potential
• Wide variance in performance observed real-time
Brand X - Q3/Q4
Media Avg Impressions Impressions Lift in
CPM
Partner Frequency in Target in View Awareness
1 3.5 24.5% 83% 5.74 $2.44
2 3.0 16.9% 91% 0.55 $9.08
3 8.4 23.5% 71% 0 $8.62

34. There is good news for advertisers and publishers
 Analogous to TV audience guarantees
 Eliminating unseen online inventory supply
results in:
 More effective / efficient campaigns and less
waste for advertisers
 More accurate metrics for market mix models
 Better proof of digital ad effectiveness
 Increased transparency/accountability
means increased confidence in digital ….
leading to more branding ad spending
moving online

35. Thank You!
© comScore, Inc. Proprietary. 35