Digital Ad Measurement Evolution

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Camino a Una Medición Digital
con Sentido
Cómo Aprovechar Viewability a Favor de los Anunciantes. Una mirada
desde comScore
Iván Marchant | VP Sales, México
Mayo, 2014

© comScore, Inc. Proprietary. 2
comScore Turning Big Data into Powerful Insight
2 Million Person Panel
360°View of Person Behavior
CENSUS
Unified Digital Measurement™ (UDM)
Patent-Pending Methodology
1 Million Domains Participating
Adopted by 80% of Top 100 Global Media Properties
PANEL
PERSON-Centric Panel with
WEBSITE-Census Measurement
Web Visiting
& Search
Behavior
Online
Advertising
Exposure
Demographics,
Lifestyles
& Attitudes
Media & Video
Consumption
Transactions
Online
& Offline
Buying
Mobile Internet
Usage & Behavior
PANEL
+5 Million
TV Set Top
Boxes for
3-Screen
Measurement

comScore’s History of Innovation Establishes More Value
for Digital Ads in Mexico
Video Metrix®
Video
Measurement
Validated
Campaign
Essentials™
BSL
Advertising
Validation
Ad Metrix®
Display
Measurement
Digital
Analytix®
Enterprise
Analytics
Cross-Platform
Measurement
Mobile
Metrix®
Mobile
Measurement
2010 2011 2012 2013 2014 Future
Media Metrix®
Audience
Measurement
2005

con Sentido
How better measurement can bring more brand advertising to digital
Paul Goode | SVP Marketing APAC, LATAM, EMEA
Mayo, 2014

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 5
The Evolution of Digital Advertising:
Whither the Click?

The digital mistake that undervalues display advertising

‘The click’ not an appropriate measure of online
advertising effectiveness
84%
8%
52%
15%
4%
26%
18%
4%
22%
67%
% Internet Pop % of Clickers % of Clicks
Heavy Moderate Light Non
Source: comScore, Natural Born Clickers (US), March 2009

The Studies
 200+ comScore studies
conducted in the U.S. to assess
behavioral impact of paid search
and online display ads.
 Analytical design: Exposed vs.
Unexposed panelists
Journal Of Advertising Research (2009)
Site visitation
Trademark Search
Queries
On & Offline Sales
The Results
 Even with Click Rates of Only 0.1%,
Display Advertising can Lift:

© comScore, Inc. Proprietary. 9comScore Action Lift Study in 2010
Latent Impact of Online Display Advertising

Correlation Analysis
Negative pattern between Sales Lift per
Household and CTR (i.e., as CTR increases,
sales decrease)
R2 = 0.039
Regression analysis indicates this
relationship is not statistically significant,
therefore there is no significant relationship
between CTR & Sales
No significant relationship between CTR & offline sales lift
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
0.00% 0.20% 0.40% 0.60% 0.80%
SalesLift/HHin$
CTR

Conclusions
Exposure to display ads doesn’t just
impact online sales – it lifts in-store
sales as well
The absolute dollar lift in offline sales
is 5x higher than the lift in e-commerce
sales
The click is misleading as a measure of
campaign effectiveness
Display ads can lift retailer sales – both online and offline
Dollar Sales Lift Among Households
Exposed to Online Advertising
+17%
Lift
+27%
Lift

© comScore, Inc. Proprietary. 12comScore & Association of Online Publishers Study in the UK in Jan 2012
Original Content Sites Outperform on Latent Impact
Lift in advertiser-brand search term usage Lift in advertiser site visitation

UK Case Study Today

UK Ad Spend

IAB UK: The UK Digital Media Mix (% Share of Revenues
2013)

IAB UK: Banners plus Embedded Formats plus Video =
92% of digital display

IAB UK: Mobile Ad Spend

IAB UK: Brand Advertising online is 17% of total

INGREDIENTS OF DIGITAL SUCCESS IN THE UK
1. DEREGULATED MARKETS & COMPETITION IN INTERNET ACCESS & MOBILE
2. ENGLISH SPEAKING, EUROPEAN HQ FOR US INTERNET & MEDIA COMPANIES, SIZE/ GDP
3. LONDON - MEDIA & ADVERTISING HUB, ATTRACTING GLOBAL TALENT
4. NO ADS ON BBC TV. NUMBER OF TV ADS LIMITED ON COMMERCIAL CHANNELS
5. OPENNESS, IAB UK, MEDIA MEASUREMENT, DESIRE TO LEARN WHAT IS NEXT

From Direct Response to Branding

Chapter 1
Publisher
BRAND PERFORMANCE
Media Buys planned on known publishers; Seductive power of the click
Advertiser
Agency
Advertiser
Publisher
Publisher
AD SERVER
TRADING
CURRENCY

Chapter 2
Publisher
BRAND PERFORMANCE
Planning tools report people & more sites. Not aligned to trading currency
Advertiser
Agency
Advertiser
Publisher
PublisherPLANNING
CURRENCY
AD SERVER
TRADING
CURRENCY

Chapter 3
Publisher
BRAND PERFORMANCE
Ad networks/exchanges loss of control on where ads run. Content matters
Advertiser
Agency
Advertiser
Publisher
Publisher
NETWORKS&
EXCHANGES
?
PLANNING
CURRENCY
AD SERVER
TRADING
CURRENCY

Chapter 4
Publisher
BRAND PERFORMANCE
Programmatic + data offer promise to buy audiences, not media proxies
Advertiser
Agency
Advertiser
Publisher
Publisher
NETWORKS&
EXCHANGES
PLANNING
CURRENCY
Programmatic &
1st & 3rd PARTY
DATA
AD SERVER
TRADING
CURRENCY

Chapter 5
BRAND PERFORMANCE
Person-based trading metrics with viewability and audience guarantees
Advertiser
Agency
Advertiser
TV GRPs
Publisher
Publisher
Publisher
PRINT GRPs
DIGITAL vGRPs

Chapter 6
BRAND PERFORMANCE
Cross media alignment with comprehensive marketing mix models
Advertiser
Agency
Advertiser
TV
Publisher
Publisher
Publisher
PRINT
DIGITAL

Digital Scarcity:
Preventing unlimited impressions

© comScore, Inc. Proprietary.
… price is regulated by the proportion between the
quantity brought to market, and the demand of
those who are willing to pay…
- Adam Smith
‘The Wealth of Nations’, 1776

Quantity
Where supply meets demand
everything sells.
Demand Supply
Price

Price
Quantity
Increasing Demand at Steady Supply:
Price Increases
SupplyDemand

CPM
Impressions
When supply is constrained,
price is extremely
sensitive to demand.
Price
Quantity
SupplyDemand

… with more marketing dollars coming
online, CPM will go up, right?

The supply and demand model has two requirements:
Supply & Demand are Independent
Supply is Resource Constrained

Media Market Examples
Ad Medium:
Constraint:
Scarcity:
Ad Pricing:
Network TV
36 spots per hour,
5 hours per viewer = 180 spots

Increasing 

Media Market Examples
Ad Medium:
Constraint:
Scarcity:
Ad Pricing:
Inventory sold through Display Exchanges
None! Cost are negligible,
ad space is virtually unlimited.

Declining 

Price
Quantity
If demand increases,
but supply is unconstrained
Price Does
NOT Increase!
CPM
Impressions
Supply
Demand

The Problem
Counting unlimited served
impressions hurtsadvertising economics.
The Solution
Introduce Digital Scarcity to the system.

Achieving Digital Scarcity
Only count impressions that reached a real user and had a
chance to make a real impact.

Improve reporting of ad exposure
Bolster confidence that ads delivered are actually viewable:
 50% of pixels in-view for 1 secs for non-video ads
 50% of pixels in-view for 2 secs for video ads (preliminary MRC)
Making Measurement Make Sense (3MS) Mission

Viewable Transacting is now here in USA and UK.

Market does currently price quality inventory correctly
Little correlation between In-
View rates and CPMs
Little correlation between
success of demographic
targeting & CPMs

“We recognize that the move to viewable is rattling many businesses to
their cores. Publishers need to adjust the very constitution of their
operations to manage this important currency change…For publishers, it
means being ready to satisfy marketer demand for viewable impression
transactions by the end of [2013].”
Bob Liodice – President and CEO, Association of National Advertisers

What’s Normal?
In-Target Benchmarks
The latest data from comScore validated Campaign Essentials™

In-view
Correct geography
Brand safety
Non-human traffic
In-target audience delivery

 Multitude of US campaigns
 200 billion impressions
 Rolling 12-month period
 Display and video campaigns
 Diverse set of advertisers as well as publishers and ad networks
 Range of brand-building and direct-response objectives
vCE Benchmarks
Industry benchmarks are an important guidepost BUT they shouldn’t be used as the only
indicator of delivery performance.

In-Target: 100% isn’t Realistic
Demographic
data becomes
outdated
Not all
registration
data is accurate
More than 60%
of computers are
shared, so cookies
can show ads to the
wrong person
Some targeting
infers demography
based on content
consumption

In-target delivery varies
*The Overall Norm comprises data from more than 200 billion impressions over the course of a 12-month rolling period. This includes campaigns that go beyond the select Advertiser / Product categories listed above to also include additional Advertiser / Product categories as well as studies run directly
by publishers and ad networks. **Viewability benchmarks include display campaigns only; viewability is defined as 50% of the ad’s pixels in-view for at least one second. ***The Health / Wellness category includes campaigns for brands, products and/or services in the following sectors: health
associations, health insurance, hospitals, over-the-counter, pharmaceutical, public health and wellness.

*Target audience is categorised based on the primary target selection in vCE, which is self- designated during campaign set-up.

A targeting Efficiency Index can also help you set
expectations
It compares in-target delivery to the prevalence of that target on a site,
based on data from comScore Media Metrix®
Females 18- 49
35% in-target
28% composition PVs
Targeting
Efficiency
Index
X 100 = 125

What’s Normal?
In-View Benchmarks
The latest data from comScore validated Campaign Essentials™

In-Target: 100% isn’t Realistic
User leaves page before
1 second
User’s browser isn’t
on full-screen setting
Non-human traffic drives
up impression counts,
when a person never
actually saw the ad

Viewability: there is no such thing as normal
1000s of campaigns
290 billion impressions
Mix of advertisers
& publishers
54% 46%
*The Overall Norm comprises data from more than 200 billion impressions over the course of a 12-month rolling period. This includes campaigns that go beyond the select Advertiser / Product categories listed above to also include additional Advertiser / Product categories as well as studies run directly
by publishers and ad networks. **Viewability benchmarks include display campaigns only; viewability is defined as 50% of the ad’s pixels in-view for at least one second. ***The Health / Wellness category includes campaigns for brands, products and/or services in the following sectors: health
associations, health insurance, hospitals, over-the-counter, pharmaceutical, public health and wellness.

Source: comScore validated Campaign Essentials 2012-13, global
Premium defined by Ad Metrix as having average CPM above USD $5, and monthly ad revenue above $100,000
Premium Publishers Boast Higher Average In-View Rates
53%
31%
Premium Sites
Overall viewable
46%
Networks & Exchanges

“At Kellogg’s we have tripled our digital marketing spend over the past few
years …One of the key factors justifying this shift is the ability to measure
every impression – from viewability to targeting effectiveness”
Matt Pritchard, European Digital Director at Kellogg Company

Advertisers get huge return from increasing viewability
Sales Lift Index: In-Store Sales Lift Indexed to 100 for
Less Than 50% Viewability of Impressions
100
175
Less Than 50% Viewability At Least 70% Viewability
A 40% increase in
viewability drives a
75% increase in in-
store sales lift for
Kellogg’s

Campaign delivery monitored and optimized in-flight
In-Flight Optimization (Publisher Cost & Effectiveness)
Using comScore Campaign Essentials
Publisher
Avg
Freq.
In-target In-view
Lift in
Awareness
CPM
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
Share of Ad
Spend to be
allocated

Driving rapid gains in ROI
Increase in ROI from Improved In-Flight Targeting
Brand 1 ROI Brand 2 ROI

“I can see this is a great tool for the
buyers, but what about the sellers?”

Introducing validated Media Essentials™
Audience (in future)
Viewability
Engagement
validated Media Essentials™ provides media sellers with the insights they need to
evaluate ad inventory across their site or network of sites

With vME™, you can evaluate your inventory in a variety
of ways
Ad
Slot
3
Ad Slot 4
Ad Slot 1
Ad
Slot
2
News Section
Business Section
Sports Section
Locations on a web
page that represent
available inventory
Ad Slot
Aggregations of similar
ad slots, often based on
sections of a site or
channels of advertising
inventory
Site Section
120X60
120X60
120X60
Creative Size
Aggregations of ad
slots by creative size
Custom reporting dimensions – such as Traffic Source, Campaign ID, Creative ID or other client-defined
segments – are available as an add-on to the standard vME offering.

Designed specifically for media sellers, vME™ helps you
make important decisions about your inventory
Create custom packages and sponsorships to
differentiate offering in competitive selling
situations
vME
enables
you to…
Re-evaluate site design, sales strategy and overall
approach to packaging and pricing
Leverage OneCall API to plug data into
inventory management systems
Inventory Management
Leverage reports in vME interface to evaluate
pricing and packaging
Ad Sales & Operations Teams
Quickly find the highest performing ad slots for
proposals

Using the same methodology as vCE provides consistency between
inventory performance and campaign performance evaluation
viewability
geography
non-human traffic
engagement
AD VALIDATION
A single ad tag is appended to
every ad slot to provide complete,
census-based measurement
Independent
Doesn’t rely on sampling approaches
Aligned
Uses the IAB definition for viewability
Census
Provides complete measurement, including
most cross-domain iframes
VIEWABILITY

• How is my inventory trending?
• What is my most viewable inventory?
• What is my most engaged inventory?
• What inventory gets the most PC traffic?
• What percent of impressions are in my primary country?
• How measureable is my inventory for viewability?
• How well does my inventory perform by creative size?
Intuitive reports enable you to answer questions specific
to your business needs

Premium publisher uses vME viewability data to revise
baseline pricing
Measurement
Goals
Incorporate viewability into baseline pricing for ad slots
Pricing of tiers now aligns with viewability averages
so price matches value
Initial
Pricing
CPM:
£4
Revised
Pricing
Ad Slot 1
CPM: £6
Ad Slot 2
CPM: £4
Ad Slot 3
CPM: £1.60
Publisher changes pricing
based on vME data
Ad Slot Viewability
1 75%
2 50%
3 20%

Premium publisher uses vME to optimise site Viewability
Measurement
Goals
Identify high- and low-performing ad slots
Eliminate or redesign low ad slots to improve average viewability
vME delivers viewability data for every ad slot
Ad Slot 2
View =
55%
Ad Slot 3
View =
25%
Ad Slot 1: View = 50%
Ad Slot 4: View = 20%
Ad Slot 3
View =
60%
Improve the viewability
(and revenue!) from
low-performing ad slots

What’s next?
Working to Make the Process More Automated for Media Sellers
Tag Ad Slots
Measure ad
slot
performance
across site
vME Reports
Analyse
packaging
and
positioning
opportunities
OneCall API
Retrieve data
for inventory
planning to
forecast and
book based
on viewability
Automation
Seamlessly
integrate vME
data into
inventory
management
systems and
ad servers

The Process: RFP’s & Proposals
Best practices for outlining campaign goals, setting expectations and eliminating painful post-campaign
renegotiations

Managing the upside is all about your knowledge

Audience Considerations

RFPs and Proposals should clearly articulate audience
delivery expectations
Absolute number
of impressions in-target
Percent
of impressions in-target
There are two common ways to buy and sell audiences:

Steps you can take during the negotiations process
Be sure to determine:
• Audience delivery requirements and target audience based on industry
data/thresholds
• Expectation of delivery and thresholds
• Measurement solution for optimization and invoicing
• How impressions that cannot be measured will be invoiced

There will be situations where audience delivery data is
not available
NOT ENOUGH
IMPRESSIONS WERE
SERVED:
Pay based on the
overall in-target
percentage of the site
MOBILE
IMPRESSIONS:
Pay based on the overall
in-target percent for
impressions delivered and
measured via desktop
Common ways to approach such situations:

Viewability Considerations

There are two routes buyers and sellers take when it comes
to evaluating campaigns based on viewable impressions
Require a minimum
percentage of ads to
be viewable
Only buy/sell
impressions that are
viewable
$
“I want to deliver 1 million ads
but I will only pay for the ones
that are viewable.”
“You must prove to me that 50%
of the impressions are
viewable.”

Sometimes viewability cannot be assessed, such as when delivery
occurs on certain types of video and mobile or for technical reasons
Common ways to pay for missing impressions:
Apply overall
rate of
viewability
for non-
measurable
impressions
Use vendor
who can
project
viewability on
non-
measurable
impressions
Pay 0% for
all ads
where
viewability
cannot be
measured
Pay 100% for
all ads
where
viewability
cannot be
measured

There are other ad delivery dimensions that should be
addressed during upfront negotiations
FREQUENCY: What is the frequency goal? How should excessive frequency
be managed and invoiced?
GEOGRAPHY: What is the expectation for geographic delivery, and how,
if at all, will an ad delivered outside of the geographic region be invoiced?
BRAND SAFETY: What are the ad blocking and alerting parameters?
How will blocked impressions be invoiced?

Once the IO is signed, the campaign can be actively
managed
Here are some steps you can take to ensure proper campaign management
• Evaluate delivery early in the campaign to confirm tagging was correctly
deployed
• Watch for situations where a high number of impressions cannot be
measured for viewability
• Watch for situations where audience data is not reportable
• Optimize delivery at the placement-level to meet performance delivery
objectives

“How can you measure smaller
campaigns and placement level
demos?”

In-view
Correct geography
Brand safety
Non-human traffic
In-target audience delivery

Audience Module Leverages the Accuracy of the comScore panel
with demographic data from multiple partners to report at scale
Unified Digital
Measurement™
comScore
Panel
comScore
Census
Network
Partner Demo
Data

vCE 2.0: Panel Amplification using Census-level Demographics
comScore
panel
Partner
C
Partner
B
Partner
A
comScore
panel
Partner
A
STEP 1: Establish
Partner Demographic
Alignment for Each Partner
STEP 2: Use Census-level Demographic
Observations for a Campaign to predict
panel measurements

comScore and Google Partner to Offer Actionable
Audience Metric for Brands
EASE OF USE
Media buyers/sellers
will get third-party measurement
of campaigns with a single click
CROSS-SCREEN
COMPARABILITY
AT SCALE
Neutral reach, frequency and
GRPs will be available to clients
for real-time comparability to TV
NEUTRALITY
Having neutral data from vCE in
DoubleClick will enable
buyers/sellers to
act on insights
comScore vCE to be available to all DoubleClick customers for
measurement of display and video campaigns across screens,
including mobile. Data Science Collaboration for scale & quality

Yahoo and comScore Partner to Expand Global Access to
Ad Measurement
IMPROVED WORKFLOW
Media buyers gain near real-
time access to vCE campaign
optimization metrics within
their existing Yahoo workflow
SCALABLE REPORTING
vCE enhances reporting scale
based on high-quality
anonymized audience data
from Yahoo
GLOBAL ACCESS
Use of Yahoo global
demographic data means an
accelerated global rollout of
vCE 2.0, enabling cross-
border campaign
measurement
comScore vCE to be Available to Yahoo Advertising Clients,
Providing TV-Comparable Metrics on Video, Display and
Mobile Ads

comScore has several other integration partners
(Formerly MediaMind)

Buyers are interested in making deals based on comparable metrics and digital, as share of
media spend is increasing.
All major agency groups are adopting vCE

And in Mexico?

“El CIM está comprometido con el concepto de Viewability, al igual que cualquier otro
estudio de medición de audiencias, en trabajar para definir los estándares aprovechando
los aprendizajes y prácticas internacionales, privilegiando el punto de vista de la industria
mexicana asesorados por sus expertos en la materia, así como promover la realización de
auditorías por entidades reconocidas internacional o localmente.”
David Fierro, Presidente, Consejo de Investigación de Medios

• Question 1: Are there problems measuring viewability in countries as Mexico with slow
internet speed connections?
• Question 2: Are there problems measuring viewability in older PC’s?
• Question 3: What happens with Mobile: smartphones and tablets?
• Question 4: What happens with the computers with older versions or without Java Script?
• Question 5: How viewability is measured in computers with shared internet access (café
Internet)
Some questions from the Mexican Industry…

 Moving from clicks to viewability has boosted value of publishers’ digital advertising
 In-flight campaign optimization of viewability, targeting and frequency is being
demanded by advertisers and promises to accelerate the shift of branding ad
spending to digital
 It can be expected that Publishers’ CPMs will increase as advertisers realize the
benefits of improved visibility and increased sales lift
 comScore vCE and vME provide viewability-based services to advertisers and
publishers designed to deliver additional value to both parties
 The future of media planning and analysis requires cross-platform measurement at
the device, content and campaign level
Key Takeaways

¡MUCHAS GRACIAS!
con Sentido
Cómo Aprovechar Viewability a Favor de los Anunciantes. Una mirada
desde comScore

Digital Ad Measurement Evolution

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