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Are you leaving ROI on the table?
1.
Are You Leaving
ROI on the Table? Lessons Learned Best Practices for Maximizing Campaign Results in Challenging Times Evan Neufeld, Vice President, Advertising Effectiveness May 2009
2.
Agenda – About Us
… The Current Environment Implications for Measuring Digital Advertising Effectiveness Benchmarking Success via Comprehensive Norms © comScore, Inc. Proprietary and Confidential. 2
3.
comScore Customer Knowledge
Platform: A 360° View of 2 Million Global Internet Users WEB VISITING & VIEWING DEMOGRAPHICS • All Web Site/Page Click Stream • Self-reported and validated • Content Viewed • Appended Segments (e.g. Claritas, Acxiom) • Search Engine Queries • Individual & Household Level • Keyword Used ONLINE TRANSACTIONS SURVEYS • All Secure Session Activity • E-mail or Contextual “Pops” • Purchases and Subscriptions • Behavior-activated Surveys • Price Paid, Shipping & Handling, • Observation of All Surveys Taken Promotions Across All Suppliers • Applications/Configurations MARKETING STIMULI OFFLINE PURCHASING • Linked using Name and Address • Online Ads TV VIEWING • Client CRM Databases • Referral Links • Link to Digital Set Top TV Data using name and address • Retailer Loyalty Card Data • IRI Scanner Panel Data Designed to be representative of the online population Projectable to the total US population TRUSTe certified for information privacy & security © comScore, Inc. Proprietary and Confidential. 3
4.
How It Works:
Using a Test and Control Design The randomized experimental design creates campaign exposed (Test ad cell) and non-exposed groups(Control ad cell) Both groups are invited and surveyed with the same screeners and incentives via our proprietary AdRecruit technology Exposed to Ads (Test Cell) Not exposed to Campaign Ads (Control) © comScore, Inc. Proprietary and Confidential. 4
5.
Benefits of Real-World
Test/Control + Panel: Observance of the Campaign Live In-Market comScore Panelists A sub-set of the Test and Control will naturally fall to the comScore panel This allows us to provide: Behavioral metrics such as Exposed to Ads (Test Cell) lift in search and visitation TotalLift™ Calibration Inclusion of select Post – Buy Metrics Accurate demographics thru elimination on sample bias Not exposed to Campaign Ads (Control) © comScore, Inc. Proprietary and Confidential. 5
6.
Brand Metrix ™
: Proof That Online Ads Work Includes branding effects! • Brand awareness and attitudes • Brand purchase intent • Advertising awareness and message recall Includes behavioral metrics! • % Lift in Site Visitation • % Lift in Brand Search Includes key campaign metrics! • Reach and frequency, • Gross rating points (GRPs) • Demographics © comScore, Inc. Proprietary and Confidential. 6
7.
comScore Brand Metrix
™ : Over 300 Ad Effectiveness Studies Across Multiple Industries Media Agencies Financial Retail Pharma CPG/Restaurant Travel Tele/Tech Auto © comScore, Inc. Proprietary and Confidential. 7
8.
Agenda About
Us … – The Current Environment Implications for Measuring Digital Advertising Effectiveness Benchmarking Success via Comprehensive Norms © comScore, Inc. Proprietary and Confidential. 8
9.
The Internet is
Important to at Least 6 in 10 Consumers, with 50% Citing an Increase Compared to a Year Ago Importance of Internet Source: comScore Survey, January 2009 Q: How important has the Internet become Q: How has this changed versus in providing you with information to help a year ago? you make buying decisions? 65% 50% Very Important Significantly Increased Slightly Important Somewhat Increased Past 3 months Versus a year ago © comScore, Inc. Proprietary and Confidential. 9
10.
Economic Hardship Leads
to Dramatic Increase in Financial/Economic-related Searches Across the Web Number of Unique Searchers (MM) for Each Term: Dec. 2008 vs. YA Source: comScore Y/Y % change +27% +58% +100% +83% +160% +157% +223% © comScore, Inc. Proprietary and Confidential. 10
11.
2008 eCommerce Growth
Substantially Lower Than Preceding Years Online Consumer Dollar Sales Growth Excluding Auctions, Autos and Managed Travel ($Billions) Source: comScore +7% +17% $221 $200 +20% +22% $171 +9% +12% +26% $143 +13% +29% $117 +20% $93 +26% $72 +33% +21% +6% Travel +24% +24% +26% +26% Non- Travel © comScore, Inc. Proprietary and Confidential. 11
12.
All Income Segments
Are Turning to Coupon Sites More so Than They Did Last Year Number of Unique Visitors to Coupon Sites and Growth vs. YA Source: comScore 40,000 50% +46% 45% 35,000 40% 30,000 +38% Percent Growth Percent Growth Unique Visitors 35% 25,000 +33% +33% 30% 20,000 +29% +26% 25% +21% 20% 15,000 +20% 15% 10,000 +11% 10% 5,000 +4% 5% +4% 0 0% Feb-2008 Mar-2008 Apr-2008 May-2008 Jun-2008 Jul-2008 Aug-2008 Sep-2008 Oct-2008 Nov-2008 Dec-2008 © comScore, Inc. Proprietary and Confidential. 12
13.
Agenda About
Us … The Current Environment – Implications for Measuring Digital Advertising Effectiveness Benchmarking Success via Comprehensive Norms © comScore, Inc. Proprietary and Confidential. 13
14.
Holistic Measurement More
Important Than Ever… Who? Premium Targeting Who was reached and how often? Re-Target In-Market Consumers • Reach/Frequency • Improve Campaign • Impressions Effectiveness by hitting the right audience • Demographics • Previous Shoppers • Flighting • Competitor Shoppers • Audience Build •Behavioral targets • Distribution •Etc. Branding Impact What Happened? Brand Metrix™ Lifts On & Offline Behavioral Lifts •Site Visitation •Brand Awareness •Searches •Attitudes •Paid/Organic Clicks •Message Recall •Offline Purchases •Purchase Intent •“Retail Impact” & •Offline Conversion “Close the Loop” Studies © comScore, Inc. Proprietary and Confidential. 14
15.
The Majority of
Advertising Often Falls Outside the Desired Target Outside US Frequency <=4 In US But Not Target Hit Target with >=5 Frequency 100% 8% 90% 80% 70% 60% 61% Area of improvement 50% 40% 30% 20% 19% 10% 12% Likely Waste 0% Weighted Average - 8 Campaigns © comScore, Inc. Proprietary and Confidential. 15
16.
Think Beyond Demos
Into Premium Targets: 7200 Segments Suitable for a Myriad Audience Targets CPG 150 Categories, 500 + brands Pharma RX and conditions Auto Cars owned, date of purchase, New purchases Online Shopping computers, cameras, TV’s, office supplies, furniture, apparel, … Offline Shopping Retail, Restaurants, Grocery, Entertainment …. Online and off-line Travel Air, hotel, car travel, cruises, …. Personal Consumption 100 categories Wireless Usage Mobile Apps and Devices Credit card, insurance, mortgage applications, trading activities, Financial brokerage and banking information Off-line Media Consumption TV, Magazine,… Off-line Product Ownership Appliances, Electronics, … © comScore, Inc. Proprietary and Confidential. 16
17.
comScore study with
Google: “The Role of Search in Consumer Buying” The Three Components of How Search Drives Buying Direct Online Effects 16% Latent Online Effects 21% Latent Offline Effects 63% Only measuring direct (i.e. immediate) online effects understates ROI by a factor of 6X Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline © comScore, Inc. Proprietary and Confidential. 17 across 11 product categories for 60 days post-search
18.
Objective Setting is
Critical -- Which Needle(s) are You Trying to Move? Number of Individuals Attitudinal Increased Value of Individuals Increased Value of Individuals – Awareness Awareness, Perceptions & Usage – Opinions Brand Differentiation & – Intent Attribute Association Behavioral – Site visitation Target Future – Site engagement Intent – Share of mind Preference – Search Purchase – Online Actual Purchase – Offline © comScore, Inc. Proprietary and Confidential. 18
19.
The Cookie Deletion
Problem: Overstates Campaign Reach but Understates Frequency 30% of Internet users delete their cookies in a month – This rate corroborated by independent studies from Belden, Jupiter, and others These deleters do so an average of 4 times a month – 5 different cookies for same site in a month on one computer Cookie deletion creates major problems: – 2.5 times overstatement of unique visitors in server logs – 2.5 times overstatement of reach and a similar understatement of frequency in ad server log News: The deletion rate has increased by about 25% in only two years © comScore, Inc. Proprietary and Confidential. 19
20.
Why is Cookie
Deletion so Important with Regard to Measuring Ad Effectiveness? Problem: Since users delete cookies, current control groups are contaminated and effectiveness is understated comScore Panelists Solution: TotalLift™ Calibration – We use the comScore panel to determine control group contamination – Lift is adjusted upward, providing accurate results Exposed to Ads (Test Cell) Example 15% Lift • Unaided recall is 15% • comScore determines that Everyone Else there was a 20% cookie deletion rate • comScore TotalLift™ 19.5% Lift Not exposed to algorithm reveals 19.5% comScore TotalLift™ Campaign Ads lift (Control) © comScore, Inc. Proprietary and Confidential. 20
21.
The Percent of
Users Deleting Cookies Varies Across Ad Campaigns Sample of cookie deletion percentages 30.0% across campaigns in different categories 26.6% 25.0% 23.7% 22.5% 19.8% 19.8% 20.0% 19.0% 17.6% 17.9% 15.0% 10.0% 8.6% 5.0% 3.9% 0.0% Pharma Pharma Pharma Non Profit Tech CPG Finance Finance Retail Retail Under-estimation of branding effects can be significant © comScore, Inc. Proprietary and Confidential. 21 Source: comScore Ad Effectiveness Studies
22.
By Analyzing Cookie
Deletion Data We Can Understand the True Impact of the Campaign Favorability towards BRAND X 50% 50% 45% 45% 45% 45% 45% 45% 40% 40% 38% 40% 38% 40% % Top Box % Top 22Box 30% 28%28% 30% 20% Control Control 20% 10% 10% ∆ Lift +5 ∆ Lift +7 ∆ Lift +18 Test Test % Lift: +12.5% % Lift: +18.4% % Lift: +60.1% 0% 0% Favorability Favorability Low Cookie Deletion HighHigh Cookie Deletion Low Cookie Deletion Cookie Deletion (3.9%) (3.9%) (26.6%) (26.6%) Control: 327 Test: 313 Control: 327 Test: 313 Control: 327 Test: 313 Q. How would you describe your overall opinion of each of the following brands? (scale of 1 to 7 where 1 = Very unlikely and 7 = Very likely) © comScore, Inc. Proprietary and Confidential. 22 indicates a significant lift above control at 90% (CL)
23.
Agenda About
Us … The Current Environment Implications for Measuring Digital Advertising Effectiveness – Benchmarking Success via Comprehensive Norms © comScore, Inc. Proprietary and Confidential. 23
24.
Measuring the Holistic
Impact of Online Ad Campaigns 300+ studies conducted to assess the impact of paid search and online ads on online and offline sales Real world analysis: comScore panelists divided into two matched groups (exposed and non-exposed to advertising) – Search only – Display ads only – Search and display ads together – Neither Passively measured behavior and / or surveys – Linked to in-store buying through CRM databases, retailer loyalty cards (we have 125 Million card dataset accessible), credit card data, IRI scanner panel © comScore, Inc. Proprietary and Confidential. 24
25.
Brand Metrix ™
Market Norms For Attitudes: Online Shows Positive Impact Across Key Measures Top-of-Mind 29.6 ∆ Lift +3.0 ∆ Lift +3.0 Unaided % Lift: +10.1% % Lift: +10.1% Awareness 32.6 89.3 ∆ Lift +.8 Aided Awareness % Lift: +.9% 90.1 Total Advertising 29.7 ∆ Lift +2.2 Awareness 31.9 % Lift: +7.4% Favorability (Top 2 27.3 ∆ Lift +3.5 box) 30.8 % Lift: +12.8% Control Test © comScore, Inc. Proprietary and Confidential. 25
26.
Brand Metrix ™
Market Norms Can Help Measure Impact Across Properties... The campaign drove directional lift in intent to recommend BRAND X, with significant lift on Site B Unaided Awareness of BRAND X 40% 38% 35% 32% 30% 30% 28% 28% 26% % Top 2 Box 25% 20% Control 15% Test 10% ∆ Lift +4 ∆ Lift +12 ∆ Lift +2 5% % Lift: +14.3% % Lift: +46.1% % Lift: +7.1% 0% Control: 412 Test: 393 Control: 91 Test: 80 Control: 321 Test: 313 Site A Site B Site C Q. When thinking of types of Y what brand comes to mind first? © comScore, Inc. Proprietary and Confidential. 26 indicates a significant lift above control at 90% (CL)
27.
Brand Metrix ™
Market Norms Can Help Measure Impact Across Ad Unit Types…. Both Video and Standard creative units achieved significant lifts showing successful execution at both the basic and most advanced design levels Favorability towards BRAND X 100% 85% 81% 80% 75% 66% % Top 2 Box 61% 60% 56% Control 40% Test ∆ Lift +5 ∆ Lift +10 ∆ Lift +15 20% % Lift: +8.9% % Lift: +13.3% % Lift: +22.7% 0% Rich Media Video Standard Control: 151 Test: 189 Control: 117 Test: 293 Control: 184 Test: 769 Q. How would you describe your overall opinion of each of the following brands? (scale of 1 to 7 where 1 = Very unlikely and 7 = Very likely) © comScore, Inc. Proprietary and Confidential. 27 indicates a significant lift above control at 90% (CL)
28.
Brand Metrix ™
Market Norms can help measure impact across placements… At the campaign level, all placements proved a success with the Sponsorship achieving highest impact Intent to Purchase BRAND X 60% 53% 50% 39% % Top 2 Box 40% 36% 33% 30% 24% 26% Control 20% Test ∆ Lift +15 ∆ Lift +20 ∆ Lift +10 10% % Lift: +62.5% % Lift: +60.1% % Lift: +38.5% 0% ROS Sponsorship Roadblock Control:181 Test: 487 Control: 206 Test: 233 Control: 321 Test: 313 Q. In the next 30 days how likely are you to purchase each of the following brands? (scale of 1 to 7 where 1 = Very unlikely and 7 = Very likely) © comScore, Inc. Proprietary and Confidential. 28 indicates a significant lift above control at 90% (CL)
29.
Brand Metrix ™
Market Norms for Behavioral Data: Driving Traffic to Advertiser Web Site There is significant lift that would be overlooked by only considering immediate actions The effects of online display advertising are persistent Though additional benefits are gained over time the proportional value of the lift when compared to the Control group (i.e. percent lift) lessen over time Advertiser Site Reach 6.6% 5.8% 4.8% 4.5% 3.9% 3.5% 3.1% 2.1% % Lift: 65.0% % Lift: 53.8% % Lift: 49.1% % Lift: 45.7% Week of first exposure Weeks 1-2 after first exposure Weeks 1-3 after first exposure Weeks 1-4 after first exposure Control Test © comScore, Inc. Proprietary and Confidential. 29
30.
Brand Metrix ™
Market Norms for Behavioral Data: Display Ads Lift Site Visitation Across All Verticals Advertiser Site Reach Weeks 1-4 after first exposure 4.5% % Lift: 46% Average, N=139 ∆ Lift: 2.1% 6.6% 0.9% % Lift: 114% Automotive, N=38 ∆ Lift: 1.0% 1.9% 1.3% % Lift: 86% Finance, N=16 ∆ Lift: 1.1% 2.3% 0.6% % Lift: 77% CPG & Restaurant, N=10 ∆ Lift: 0.5% 1.1% 9.1% % Lift: 52% Retail & Apparel, N=21 ∆ Lift: 4.7% 13.8% 7.0% % Lift: 42% Media & Entertainment, N=24 ∆ Lift: 2.9% 10.0% 5.8% % Lift: 25% Electronics & Sof tware, N=14 7.2% ∆ Lift: 1.5% 4.8% % Lift: 21% Travel, N=9 5.8% ∆ Lift: 1.0% Control Test © comScore, Inc. Proprietary and Confidential. 30
31.
Brand Metrix ™
Market Norms for Behavioral Data: Impact of Display Ads on Search Still Evident 4 Weeks Post Initial Exposure While a relatively small percentage of users exposed to an online display ad subsequently make a search on an advertiser’s Trademark/Brand term the lift between test and control is significant However, this dynamic is important because of the synergy between display ads and search (more on this later) and because a Trademark or a Brand search is a significant indicator of purchase intent. % Making a TM/Brand Search 0.9% 0.7% 0.6% 0.5% 0.5% 0.4% 0.3% 0.2% % Lift: 52.3% % Lift: 46.0% % Lift: 40.3% % Lift: 38.1% Week of first exposure Weeks 1-2 after first Weeks 1-3 after first Weeks 1-4 after first exposure exposure exposure Control Test © comScore, Inc. Proprietary and Confidential. 31
32.
Brand Metrix ™
Market Norms for Behavioral Data: Clear Synergies Between Search & Display Conventional wisdom says that media works best when multiple approaches are employed to work together Here we see clear synergies between search and display. In each case, both in terms of % reach and $$ spent per 000 exposed, it’s clear that the combination of search & display together outpace the sum of the results of display and search separately % Making A Purchase on the Advertiser Site (Retail Only) 5.1% 2.4% 1.9% 1.0% 1.5% 1.1% Display Only Search Only Search & Display % Lift: +42% % Lift: +121% % Lift: +173% Online $$ per 000 Exposed (Retail Only) $6,107 $2,724 $2,723 $994 $1,263 $1,548 Display Only Search Only Search & Display % Lift: +27% % Lift: +76% % Lift: +124% Control Test © comScore, Inc. Proprietary and Confidential. 32
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Brand Metrix ™
Market Norms for Behavioral Data: Online is Important but What About Offline? Higher offline sales lifts are found for search advertising vs. display but when combined the synergy provides even more lift Lift generated by online advertising is significant and would not be captured by a CPC or cookie-based model Incremental Impact on Offline Sales per (000) Exposed Source: comScore © comScore, Inc. Proprietary and Confidential. 33
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Brand Metrix ™
Market Norms for Behavioral Data: Reach of Display Ads Often Helps Lift Sales More Than Search The overall number of people reached by Display ads is typically much higher than Search As a result, even though the sales lift among those exposed to a Search ad is higher, the total dollar sales gained from Display ads is often larger than Search due to the smaller lift acting on a larger base Incremental Impact on Offline % of Households Reached Sales per (000) Exposed Total Sales Lift Index 119% 200 198 81% 200% 198% 82% 100 100% 11% 8% 16% Search & Search Only Display Search & Search Only Display Only Display Only Search and Search Only Display Only Display Display © comScore, Inc. Proprietary and Confidential. 34
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Don’t leave ROI
on the table: 6 Key Takeaways Focus on 360 degree campaign measurement Look to target, enhance, and focus media buying Set clear objectives & measure accordingly Be sure to measure both the direct and latent impact of your campaign on both attitudes & behavior Exploit the synergies between media types (search, display, cross media) Be sure to correct / understand the impact of cookie deletion © comScore, Inc. Proprietary and Confidential. 35
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Thank you! Questions? Evan Neufeld
(eneufeld @ comscore.com)
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