This document provides an overview of digital advertising effectiveness from comScore. It summarizes that click-through rates on banner ads are very small and shrinking over time. It also notes that heavy clickers, who drive the majority of clicks, are not representative of the overall internet population. However, the document establishes that digital advertising can be effective for branding when measured by lift in awareness, purchase intent, favorability, and sales. It suggests moving to more relevant metrics beyond clicks and explores solutions like post-buy analysis, understanding attitudinal changes, and measuring behavioral effects.

1. Digital Advertising Effectiveness
The death of the click
Prepared for
Osnat Zaretsky, Senior BD manager - comScore Europe

2. comScore is a Global Leader in Measuring the Digital World
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43 markets reported
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 V0910

3. comScore Digital Business Analytics
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Advertising Analytics Ad Effectiveness
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Customer Experience & Retention
© comScore, Inc. Proprietary. 3 V091410

4. Our EU clients (partial list)
Publishers Agencies
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5. © comScore, Inc. Proprietary. 5

6. Where are the online advertising $$$ coming from?
The internet is disproportionately used for direct response advertising
Source: Brand.net analysis based on data from Barclays Capital, Think Equity
Partners, LLC, and DMA
© comScore, Inc. Proprietary. 6

7. The last surviving clicks
0.25%
Banner Ad Click Rate is Small and Shrinking
0.20%
0.15%
Click-Through Rate
0.10% 0.20%
0.18%
0.16%
0.14% 0.14%
0.13%
0.12% 0.12%
0.05% 0.10%
0.08%
0.00%
China France Germany India Italy Netherlands Spain Turkey United United
Kingdom States
-0.05%
Country
Source: DoubleClick Overall Performance Norms, 2008
© comScore, Inc. Proprietary. 7

8. Display advertising’s early mistake
© comScore, Inc. Proprietary. 8

9. Clickers becoming extinct in USA?
Heavy and Moderate clickers are only 8% of the internet population but
account for 85% of all clicks
July 2007 March 2009
4%
6% 4%
10% 18% 8% 22%
16% 50%
31% 26% 67%
84%
68% 30%
51% 52% 18%
20% 15%
% Internet Pop % of Clickers % of Clicks % Internet Pop % of Clickers % of Clicks
Heavy Moderate Light Non
Source: comScore, Inc. custom analysis, Total US Online Population, persons, July 2007 and March 2009 data periods
© comScore, Inc. Proprietary. 9

10. And the Russian clickers?
2%
3%
5% 20%
58%
33%
90%
26%
47%
16%
% Internet Population % Clickers % Clicks
Non clickers Light Moderate Heavy
Only 10% of the Russian online population click on Display ads!
© comScore, Inc. Proprietary. 10 Source: comScore Marketing Solutions, Russia, August 2010

11. Heavy Clickers: Not Representative
Internet Usage Skew
© comScore, Inc. Proprietary. 11 Source: comScore Marketing Solutions, Germany, August 2010

12. But Digital Advertising Has Been Proven to Work!
Branding Impact Significant
1.60%
1.40%
Average Lift from Exposure to
Online Advertising
1.20%
1.00%
0.80%
0.60%
0.40% Computers & Technology
Consumer Goods
0.20% All Marketers
0.00%
Awareness Purchase Intent Recommend Favorability
© comScore, Inc. Proprietary. 12 Source: comScore Brand Survey Lift Norms, US Market January 2011

13. Can it Increase Consumer Engagement: Yes!
© comScore, Inc. Proprietary. 13 Source: comScore “Whither the click in Europe?” – February 2010

14. Does it Drive Sales: Yes
Source: “Whither the Click?” 139 comScore studies in the
© comScore, Inc. Proprietary. 14 June 2009 Journal of Advertising Research

15. Sales Impact Comparable to TV
BehaviorScan tests conducted over one year period
comScore studies over three months*
© comScore, Inc. Proprietary. 15 *Assumes 40% HH Internet reach against target.

16. The Way Forward: More Relevant Metrics
© comScore, Inc. Proprietary. 16

17. Can it work in Russia?
Russian online audience devotes time to brand sites!
Time Per Visit (Session)
7
6
5
4
3
2
1
0
Beauty, Fashion & Style Fragrances & Cosmetics Jewelery & Luxury goods
Time Per Visit (Session)
© comScore, Inc. Proprietary. 17

18. The future of advertising revealing itself
Rich media and takeovers - on premium publisher sites reduce clutter and
increase creative quality – better for brand advertising.
Apple on New York Times Takeover AT&T on last.fm Takeover
© comScore, Inc. Proprietary. 18

19. Visitor Non-Buyer Analysis
Transaction Share of Lost Sales Among
Analysis of Airline Non-Buyers (VNBs) VNBs
7.6%
Bought at
easyJet
4.1Million 13%
Unique Had No
Visitors Other
Relevant
Activity
92%
Became
Visitor 88%
Non- 87% Did Not
Buyers That Visit Convert
(VNBs) Another
Relevant
Site
12%
Bought
Elsewhere
ILLUSTRATIVE DATA ONLY
© comScore, Inc. Proprietary. 19

20. Ad Effectiveness Solutions
Post Buy Analysis Attitudinal Effectiveness Behavioural Effectiveness
Reporting on actual Understanding consumer Measuring consumer
campaign delivery attitudes after exposure behaviour after exposure
to online ads to online ads
50% Visitor Penetration
45% (% Visiting Site)
40% 37.1% 201%
35%
30%
25% 24.6%
20% 18.6%
15% 15.0%
10% 12.3%
Control Test
5%
0%
Pre-Campaign Campaign Post-
Period Period Campaign
Period
© comScore, Inc. Proprietary. 20

21. Thank You.
THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE™
Osnat Zaretsky
ozaretsky@comscore.com +44 7503146040