the death of the click - conde nast russia 13.04.11

The death of the click

Digital Advertising Effectiveness

Prepared for

Osnat Zaretsky, Senior BD manager - comScore Europe

2© comScore, Inc. Proprietary.

comScore is a Global Leader in Measuring the Digital World

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Clients 1600+ worldwide

Employees 900+

Headquarters Reston, VA

Global Coverage170+ countries under measurement;

43 markets reported

Local Presence 30+ locations in 21 countries

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comScore Digital Business Analytics

Audience Measurement

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Ad Effectiveness

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User Analytics

Advertising Analytics

Mobile Analytics

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Our EU clients (partial list)

Publishers Agencies

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6© comScore, Inc. Proprietary.

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

7© comScore, Inc. Proprietary.

The last surviving clicks

0.18%

0.12%0.13%

0.20%

0.12%

0.16%0.14% 0.14%

0.08%0.10%

-0.05%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

China France Germany India Italy Netherlands Spain Turkey United Kingdom

United States

Clic

k-T

hro

ug

h R

ate

Country

Banner Ad Click Rate is Small and Shrinking

Source: DoubleClick Overall Performance Norms, 2008

8© comScore, Inc. Proprietary.

Display advertising’s early mistake

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84%

8%

52%

15%

4%

26%

18%

4%

22%

67%

% Internet Pop % of Clickers % of Clicks

68%

16%

51%

20%

10%

31%

30%

6%18%

50%

% Internet Pop % of Clickers % of Clicks

Heavy Moderate Light Non

July 2007 March 2009

Source: comScore, Inc. custom analysis, Total US Online Population, persons, July 2007 and March 2009 data periods

Clickers becoming extinct in USA?

Heavy and Moderate clickers are only 8% of the internet population but

account for 85% of all clicks

10© comScore, Inc. Proprietary.

And the Russian clickers?

90%

5%

47%

16%

3%

33%

26%

2%

20%

58%

% Internet Population % Clickers % Clicks

Non clickers Light Moderate Heavy

Source: comScore Marketing Solutions, Russia, August 2010

Only 10% of the Russian online population click on Display ads!

11© comScore, Inc. Proprietary.

Heavy Clickers: Not Representative

Source: comScore Marketing Solutions, Germany, August 2010

Internet Usage Skew

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But Digital Advertising Has Been Proven to Work!

Branding Impact Significant

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

Awareness Purchase Intent Recommend Favorability

Average Lift from Exposure to Online Advertising

Computers & Technology

Consumer Goods

All Marketers

Source: comScore Brand Survey Lift Norms, US Market January 2011

13© comScore, Inc. Proprietary.

Can it Increase Consumer Engagement: Yes!

Source: comScore “Whither the click in Europe?” – February 2010

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Does it Drive Sales: Yes

Source: “Whither the Click?” 139 comScore studies in the

June 2009 Journal of Advertising Research

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Sales Impact Comparable to TV

BehaviorScan tests conducted over one year period

comScore studies over three months*

*Assumes 40% HH Internet reach against target.

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The Way Forward: More Relevant Metrics

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Can it work in Russia?

0

1

2

3

4

5

6

7

Beauty, Fashion & Style Fragrances & Cosmetics Jewelery & Luxury goods

Time Per Visit (Session)

Time Per Visit (Session)

Russian online audience devotes time to brand sites!

18© comScore, Inc. Proprietary.

The future of advertising revealing itself

Rich media and takeovers - on premium publisher sites reduce clutter and

increase creative quality – better for brand advertising.

AT&T on last.fm TakeoverApple on New York Times Takeover

19© comScore, Inc. Proprietary.

Analysis of Airline Non-Buyers (VNBs)Transaction Share of Lost Sales Among

VNBs

7.6%

Bought at

easyJet

92%

Became

Visitor

Non-

Buyers

(VNBs)

87%

That Visit

Another

Relevant

Site

88%

Did Not

Convert

12%

Bought

Elsewhere

4.1Million

Unique

Visitors

13%

Had No

Other

Relevant

Activity

Visitor Non-Buyer Analysis

ILLUSTRATIVE DATA ONLY

20© comScore, Inc. Proprietary.

Ad Effectiveness Solutions

Post Buy Analysis

Reporting on actual

campaign delivery

Visitor Penetration

(% Visiting Site)

15.0%

24.6%

12.3%

37.1%

18.6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Pre-Campaign

Period

Campaign

Period

Post-

Campaign

Period

Control Test

201%

Behavioural Effectiveness

Measuring consumer

behaviour after exposure

to online ads

Attitudinal Effectiveness

Understanding consumer

attitudes after exposure

to online ads

Thank You.

Osnat Zaretsky

ozaretsky@comscore.com +44 7503146040

THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE™