1100 omma display mike rich
TRANSCRIPT
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#MPOMMA@comScore @MikeR295
The Path to Scarcity
Mike Rich@MikeR295@comScore
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What’s all this talk about scarcity?
How do we get to scarcity?
What is an agency/publisher to do?
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+15%
Source: comScore Ad Metrix
June 2011
June 2012
This is terrible news!We’re still serving more impressions…
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In 10 years we’d have nothing but commercials!If TV grew at the same pace…
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-28%
June 2011 June 2012
Remove Facebook and the situation worsens
Source: comScore Ad Metrix
+35%
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Search BannerRich
Media
Source: IAB/PWC
Search continues to gain share of online spendat the expense of Display
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Series1
Source: IAB/PWC
-$0.64
-$0.11
CPMs are still on the decline…What will 2012 bring?
2010
2011
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Display needs fewer ads to meet demand
S c a r c i t yWe need
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The path to scarcity
Not viewed =
W o r t h l e s s
Wrong audience =
O v e r v a l u e d
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Validated Campaign EssentialsvCE
in-view
correct geography
brand safety
fraud
Impressionsor
target audience
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Allstate
33 campaigns
2.6 billion impressions
Over 400,000 sites
US & EU Charter Studies
US EU
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US: 31% of ads were never seen!comScore vCE Charter Study
EU: 37% never seen!
Over 800,000,000 impressions
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Large sites scored better than long-tail sites
77% 74% 70%61%
66% 63% 61%55%
US EU
It’s not just the tail…
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R²=0.0373
CPM s have no relationship to viewability
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Reaction
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Buy side reaction
Make Goods!
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Sell side reaction
Make Goods!Image: arindambanerjee / Shutterstock.com
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Getting to sell side zen…
Reassessand
Revalue
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Monthly Imps. CPM Revenue
500 MM $5 $2.5 MM
500 MM $2.50 $1.25 MM
1 BN $3.75 MM
Monthly Imps. CPM Revenue
450 MM $5 $2.25 MM
250 MM $3 $750 k
700 MM $3 MM
Monthly Imps. CPM Revenue
450 MM $6 $2.7MM
125 MM $6 $750 k
125 MM $3 $375 k
700 MM $3.825MM
What’s happening today
What sellers think will happen
$750,000 loss
What should actually happen
$75,000 gain
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#MPOMMA@comScore @MikeR295
Getting to buy side zen…
Educateand
Negotiate
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Audience Composition
42%
of impressions hit their primary target…
Source: vCE Norms, Worldwide, All Campaigns as of June 2012
vCE Worldwide Norms: 2400 campaigns & counting…
Targeting Efficiency
1.41xmore effective vs. an untargeted campaign
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Sell Side
Buy Side
• Adapt – quickly!
• Measure viewability
• Focus on the basics
• Educate your teams
• Define reasonable metrics
• Be good partners
What’s Next?
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• Remove worthless clutter
• Assess true value
• Find fair metrics
Scarcity = Stability = Success
The path forward…
