are you leaving roi on the table?
TRANSCRIPT
Best Practices for Maximizing Campaign Results in Ch allenging Times
Are You Leaving ROI on the Table?Lessons Learned
Evan Neufeld, Vice President, Advertising EffectivenessMay 2009
– About Us …
� The Current Environment
� Implications for Measuring Digital Advertising Effe ctiveness
� Benchmarking Success via Comprehensive Norms
Agenda
2© comScore, Inc. Proprietary and Confidential.
DEMOGRAPHICS• Self-reported and validated
• Appended Segments (e.g. Claritas, Acxiom)
• Individual & Household Level
WEB VISITING & VIEWING• All Web Site/Page Click Stream• Content Viewed• Search Engine Queries• Keyword Used
SURVEYS• E-mail or Contextual “Pops”
• Behavior-activated Surveys
• Observation of All Surveys Taken Across All Suppliers
ONLINE TRANSACTIONS• All Secure Session Activity• Purchases and Subscriptions• Price Paid, Shipping & Handling,
Promotions
comScore Customer Knowledge Platform: A 360°View of 2 Million Global Internet Users
3© comScore, Inc. Proprietary and Confidential.
Across All SuppliersPromotions • Applications/Configurations
MARKETING STIMULI• Online Ads
• Referral LinksTV VIEWING• Link to Digital Set Top TV Data
using name and address
Designed to be representative of the online populat ionProjectable to the total US population
TRUSTe certified for information privacy & security
OFFLINE PURCHASING• Linked using Name and Address
• Client CRM Databases
• Retailer Loyalty Card Data
• IRI Scanner Panel Data
How It Works: Using a Test and Control Design
Both groups are invited and surveyed with the same screeners and incentives via our
proprietary AdRecruit technology
The randomized experimental design creates campaign exposed (Test ad cell) and non-exposed groups(Control ad ce ll)
4© comScore, Inc. Proprietary and Confidential.
Exposed to Ads(Test Cell)
Not exposed to Campaign Ads(Control)
Benefits of Real-World Test/Control + Panel: Observ ance of the Campaign Live In-Market
This allows us to provide:
� Behavioral metrics such as
comScore PanelistsA sub-set of the Test and
Control will naturally fall to the comScore panel
5© comScore, Inc. Proprietary and Confidential.
� Behavioral metrics such as lift in search and visitation
� TotalLift™ Calibration
� Inclusion of select Post – Buy Metrics
� Accurate demographics thru elimination on sample bias
Exposed to Ads(Test Cell)
Not exposed to Campaign Ads
(Control)
Brand Metrix ™ : Proof That Online Ads Work
• Brand awareness and attitudes • Brand purchase intent • Advertising awareness and message recall
Includes branding effects!
6© comScore, Inc. Proprietary and Confidential.
• Advertising awareness and message recall
• % Lift in Site Visitation • % Lift in Brand Search
Includes behavioral metrics!
• Reach and frequency,• Gross rating points (GRPs)• Demographics
Includes key campaign metrics!
comScore Brand Metrix ™ : Over 300 Ad Effectiveness Studies Across Multiple Industries
Media Agencies Financial Retail TravelCPG/RestaurantPharma AutoTele/Tech
7© comScore, Inc. Proprietary and Confidential.
� About Us …
– The Current Environment
� Implications for Measuring Digital Advertising Effe ctiveness
� Benchmarking Success via Comprehensive Norms
Agenda
8© comScore, Inc. Proprietary and Confidential.
The Internet is Important to at Least 6 in 10 Consu mers, with 50% Citing an Increase Compared to a Year Ago
Q: How important has the Internet become in providing you with information to help
you make buying decisions?
65%
Q: How has this changed versus a year ago?
Importance of InternetSource: comScore Survey, January 2009
9© comScore, Inc. Proprietary and Confidential.
Past 3 months Versus a year ago
Very Important
Slightly Important
50%
Significantly Increased
Somewhat Increased
Economic Hardship Leads to Dramatic Increase in Financial/Economic-related Searches Across the Web
Y/Y % change +27% +58% +100% +83% +160% +157% +223%
Number of Unique Searchers (MM) for Each Term: Dec . 2008 vs. YASource: comScore
10© comScore, Inc. Proprietary and Confidential.
$171
$200
+9%+22%
+20%
+17%
+7%
2008 eCommerce Growth Substantially Lower Than Prec eding Years
Source: comScore
$221
Online Consumer Dollar Sales GrowthExcluding Auctions, Autos and Managed Travel ($Bill ions)
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$72$93
$117
$143
Non-Travel
Travel
+26%
+33%
+26%
+26%
+20%
+24%
+24%
+13%
+21%
+12%
+6%
+29%
+26%
35%
40%
45%
50%
25,000
30,000
35,000
40,000
+33% +33%
+38%
+46%
Uni
que
Vis
itors
Percent G
rowth
Number of Unique Visitors to Coupon Sites and Growt h vs. YASource: comScore
All Income Segments Are Turning to Coupon Sites Mor e so Than They Did Last Year
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0%
5%
10%
15%
20%
25%
30%
0
5,000
10,000
15,000
20,000
25,000
Feb-2008 Mar-2008 Apr-2008 May-2008 Jun-2008 Jul-2008 Aug-2008 Sep-2008 Oct-2008 Nov-2008 Dec-2008
+29%
+21%+20%
+26%
+33% +33%
Uni
que
Vis
itors
Percent G
rowth
+4%
+4%
+11%
� About Us …
� The Current Environment
– Implications for Measuring Digital Advertising Effe ctiveness
� Benchmarking Success via Comprehensive Norms
Agenda
13© comScore, Inc. Proprietary and Confidential.
Holistic Measurement More Important Than Ever…
Who?Who was reached and how often?
• Reach/Frequency
• Impressions
• Demographics
• Flighting
• Audience Build
• Distribution
Premium TargetingRe-Target In-Market Consumers
• Improve Campaign Effectiveness by hitting the right audience
• Previous Shoppers
• Competitor Shoppers
•Behavioral targets
•Etc.
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What Happened?On & Offline Behavioral Lifts
•Site Visitation
•Searches
•Paid/Organic Clicks
•Offline Purchases
•“Retail Impact” & “Close the Loop” Studies
•Etc.
Branding ImpactBrand Metrix™ Lifts
•Brand Awareness
•Attitudes
•Message Recall
•Purchase Intent
•Offline Conversion
The Majority of Advertising Often Falls Outside the Desired Target
61%
8%
60%
70%
80%
90%
100%
Outside USFrequency <=4In US But Not TargetHit Target with >=5 Frequency
Area of improvement
15© comScore, Inc. Proprietary and Confidential.
12%
19%
61%
0%
10%
20%
30%
40%
50%
60%
Weighted Average - 8 Campaigns
Likely Waste
Think Beyond Demos Into Premium Targets:7200 Segments Suitable for a Myriad Audience Target s
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, ….
16© comScore, Inc. Proprietary and Confidential.
Online and off-line Travel Air, hotel, car travel, cruises, ….
Personal Consumption 100 categories
Wireless Usage Mobile Apps and Devices
Financial Credit card, insurance, mortgage applications, trading activities, brokerage and banking information
Off-line Media Consumption TV, Magazine,…
Off-line Product Ownership Appliances, Electronics, …
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%
17© comScore, Inc. Proprietary and Confidential.
Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline across 11 product categories for 60 days post-search
Latent Offline Effects 63%
Only measuring direct (i.e. immediate) online effec ts understates ROI by a factor of 6X
Awareness, Perceptions &
UsageBrand
Differentiation & Attribute
Association
Objective Setting is Critical -- Which Needle(s) are You Trying to Move?
Attitudinal
– Awareness
– Opinions
– Intent
Behavioral
Number of Individuals
Increased Value of Individuals
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Preference
Actual Purchase
Future Intent
– Site visitation
– Site engagement
– Share of mind
– Search
Purchase
– Online
– Offline
Increased Value of IndividualsTarget
The Cookie Deletion Problem: Overstates Campaign R each but Understates Frequency
� 30% of Internet users delete their cookies in a mon th
– 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
19© comScore, Inc. Proprietary and Confidential.
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
� Solution: TotalLift™ Calibration – We use the comScore panel to determine control
group contamination
comScore Panelists
Problem: Since users delete cookies, current contro l groups are contaminated and effectiveness is understated
Why is Cookie Deletion so Important with Regard to Measuring Ad Effectiveness?
20© comScore, Inc. Proprietary and Confidential.
group contamination– Lift is adjusted upward, providing accurate
results
Example• Unaided recall is 15%
• comScore determines that
there was a 20% cookie
deletion rate
• comScore TotalLift™
algorithm reveals 19.5%
lift
15% LiftEveryone Else
19.5% LiftcomScore TotalLift™
Exposed to Ads(Test Cell)
Not exposed to Campaign Ads
(Control)
The Percent of Users Deleting Cookies Varies Across Ad Campaigns
Sample of cookie deletion percentages
across campaigns in different categories
17.6% 17.9%19.0%
19.8% 19.8%
22.5%23.7%
26.6%
15.0%
20.0%
25.0%
30.0%
21© comScore, Inc. Proprietary and Confidential.
3.9%
8.6%
0.0%
5.0%
10.0%
Ph
arm
a
Fin
an
ce
Fin
an
ce
Re
tail
Re
tail
Ph
arm
a
Te
ch
CP
G
No
n P
rofi
t
Ph
arm
a
Source: comScore Ad Effectiveness Studies
Under-estimation of branding effects can be signifi cant
By Analyzing Cookie Deletion Data We Can Understand the True Impact of the Campaign
40% 38%
28%
45% 45% 45%
20%
30%
40%
50%
% T
op
2 B
ox
Control
Favorability towards BRAND XFavorability towards BRAND X
40% 38%
28%
45% 45% 45%
20%
30%
40%
50%
% T
op
2 B
ox
Control
Test
22© comScore, Inc. Proprietary and Confidential. indicates a significant lift above control at 90% (CL)
0%
10%
Favorability Low Cookie Deletion
(3.9%)
High Cookie Deletion
(26.6%)
% T
op
2 B
ox
Test
0%
10%
Favorability Low Cookie Deletion
(3.9%)
High Cookie Deletion
(26.6%)
% T
op
2 B
ox
Test
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)
∆ Lift +5% Lift: +12.5%
∆ Lift +7% Lift: +18.4%
∆ Lift +18% Lift: +60.1%
� About Us …
� The Current Environment
� Implications for Measuring Digital Advertising Effe ctiveness
– Benchmarking Success via Comprehensive Norms
Agenda
23© comScore, Inc. Proprietary and Confidential.
Measuring the Holistic Impact of Online Ad Campaign s
� 300+ studies conducted to assess the impact of paid search and online ads on online and offline sales
� Real world analysis: comScore panelists divided int o two matched groups (exposed and non-exposed to advertising)
– Search only
– Display ads only
– Search and display ads together
24© comScore, Inc. Proprietary and Confidential.
– 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
29.6
89.3
32.6
90.1
Top-of-Mind Unaided
Awareness
Aided Awareness
∆ Lift +3.0% Lift: +10.1%
∆ Lift +.8% Lift: +.9%
Brand Metrix ™ Market Norms For Attitudes: Online Sh ows Positive Impact Across Key Measures
∆ Lift +3.0% Lift: +10.1%
25© comScore, Inc. Proprietary and Confidential.
29.7
27.3
90.1
31.9
30.8
Total Advertising Awareness
Favorability (Top 2 box)
Control Test
∆ Lift +2.2% Lift: +7.4%
∆ Lift +3.5% Lift: +12.8%
Brand Metrix ™ Market Norms Can Help Measure Impact Across Properties...
The campaign drove directional lift in intent to re commend BRAND X, with significant lift on Site B
28% 28%
32%
38%
30%30%
35%
40%
Unaided Awareness of BRAND XUnaided Awareness of BRAND X
26© comScore, Inc. Proprietary and Confidential. indicates a significant lift above control at 90% (CL)
28%26%
28%30%
0%
5%
10%
15%
20%
25%
30%
Site A Site B Site C
% T
op
2 B
ox
Control
Test
Control: 412 Test: 393 Control: 91 Test: 80 Control: 321 Test: 313
Q. When thinking of types of Y what brand comes to mind first?
∆ Lift +4% Lift: +14.3%
∆ Lift +12% Lift: +46.1%
∆ Lift +2% Lift: +7.1%
75%66%
85% 81%80%
100%
Favorability towards BRAND XFavorability towards BRAND X
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
27© comScore, Inc. Proprietary and Confidential.
56%66%
61%
0%
20%
40%
60%
80%
Rich Media Video Standard
% T
op
2 B
ox
Control
Test
Control: 151 Test: 189 Control: 117 Test: 293 Control: 184 Test: 769
indicates a significant lift above control at 90% (CL)
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)
∆ Lift +5% Lift: +8.9%
∆ Lift +15% Lift: +22.7%
∆ Lift +10% Lift: +13.3%
53%
50%
60%
Intent to Purchase BRAND XIntent to Purchase BRAND X
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
28© comScore, Inc. Proprietary and Confidential.
24%
33%
26%
39%36%
0%
10%
20%
30%
40%
50%
ROS Sponsorship Roadblock
% T
op
2 B
ox
Control
Test
Control:181 Test: 487 Control: 206 Test: 233 Control: 321 Test: 313
indicates a significant lift above control at 90% (CL)
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)
∆ Lift +15% Lift: +62.5%
∆ Lift +20% Lift: +60.1%
∆ Lift +10% Lift: +38.5%
5.8%
6.6%
Advertiser Site Reach
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
29© comScore, Inc. Proprietary and Confidential.
2.1%
3.1%
3.9%
4.5%
3.5%
4.8%
5.8%
Week of first exposure Weeks 1-2 after first exposure Weeks 1-3 after first exposure Weeks 1-4 after first exposure
Control Test
% Lift: 65.0% % Lift: 53.8% % Lift: 49.1% % Lift: 45.7%
4.5%
0.9%
1.3%
6.6%
1.9%
2.3%
Average, N=139
Automotive, N=38
Finance, N=16
Advertiser Site ReachWeeks 1-4 after first exposure
% Lift: 46%∆ Lift: 2.1%
% Lift: 114%∆ Lift: 1.0%
% Lift: 86%∆ Lift: 1.1%
Brand Metrix ™ Market Norms for Behavioral Data: Dis play Ads Lift Site Visitation Across All Verticals
30© comScore, Inc. Proprietary and Confidential.
0.6%
9.1%
7.0%
5.8%
4.8%
1.1%
13.8%
10.0%
7.2%
5.8%
CPG & Restaurant, N=10
Retail & Apparel, N=21
Media & Entertainment, N=24
Electronics & Sof tware, N=14
Travel, N=9
Control Test
% Lift: 77%∆ Lift: 0.5%
% Lift: 52%∆ Lift: 4.7%
% Lift: 42%∆ Lift: 2.9%
% Lift: 25%∆ Lift: 1.5%
% Lift: 21%∆ Lift: 1.0%
0.7%
0.9%
% Making a TM/Brand Search
Brand Metrix ™ Market Norms for Behavioral Data: I mpact of Display Ads on Search Still Evident 4 Weeks Post Initial Ex posure
� 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.
31© comScore, Inc. Proprietary and Confidential.
0.2%
0.4%
0.5%
0.6%
0.3%
0.5%
0.7%
Week of first exposure Weeks 1-2 after first exposure
Weeks 1-3 after first exposure
Weeks 1-4 after first exposure
Control Test
% Lift: 52.3% % Lift: 46.0% % Lift: 40.3% % Lift: 38.1%
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 $$ spent per 000 exposed, it’s clear that the combination of search & display together outpace the sum of the results of display and search separately
1.0% 1.1%1.9%1.5%
2.4%
5.1%% Making A Purchase on the Advertiser Site
(Retail Only)
32© comScore, Inc. Proprietary and Confidential.
1.0% 1.1%1.5%
Display Only Search Only Search & Display% Lift: +42% % Lift: +121% % Lift: +173%
$994 $1,548$2,723
$1,263$2,724
$6,107
Display Only Search Only Search & Display
Control Test
Online $$ per 000 Exposed(Retail Only)
% Lift: +27% % Lift: +76% % Lift: +124%
Incremental Impact on Offline Sales per (000) Expos edSource: comScore
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
33© comScore, Inc. Proprietary and Confidential.
Brand Metrix ™ Market Norms for Behavioral Data: Reach of Display Ads Often Helps Lift Sales More Th an 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
119%
Incremental Impact on Offline Sales per (000) Exposed% of Households Reached Total Sales Lift Index
34© comScore, Inc. Proprietary and Confidential.
11% 8%
81%
Search &
Display
Search Only Display
Only
119%
82%
16%
Search and
Display
Search Only Display Only
200%
100%
198%
Search &
Display
Search Only Display Only
200
100
198
� 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 impac t of your campaign on both attitudes & behavior
� Exploit the synergies between media types (search, display, cross
Don’t leave ROI on the table: 6 Key Takeaways
35© comScore, Inc. Proprietary and Confidential.
� Exploit the synergies between media types (search, display, cross media)
� Be sure to correct / understand the impact of cooki e deletion
Questions?
Thank you!
Evan Neufeld ( eneufeld @ comscore.com )