are you leaving roi on the table?

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Best Practices for Maximizing Campaign Results in Challenging Times Are You Leaving ROI on the Table? Lessons Learned Evan Neufeld, Vice President, Advertising Effectiveness May 2009

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Page 1: Are you leaving ROI on the table?

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

Page 2: Are you leaving ROI on the table?

– About Us …

� The Current Environment

� Implications for Measuring Digital Advertising Effe ctiveness

� Benchmarking Success via Comprehensive Norms

Agenda

2© comScore, Inc. Proprietary and Confidential.

Page 3: Are you leaving ROI on the table?

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

Page 4: Are you leaving ROI on the table?

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)

Page 5: Are you leaving ROI on the table?

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)

Page 6: Are you leaving ROI on the table?

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!

Page 7: Are you leaving ROI on the table?

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.

Page 8: Are you leaving ROI on the table?

� About Us …

– The Current Environment

� Implications for Measuring Digital Advertising Effe ctiveness

� Benchmarking Success via Comprehensive Norms

Agenda

8© comScore, Inc. Proprietary and Confidential.

Page 9: Are you leaving ROI on the table?

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

Page 10: Are you leaving ROI on the table?

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.

Page 11: Are you leaving ROI on the table?

$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)

11© comScore, Inc. Proprietary and Confidential.

$72$93

$117

$143

Non-Travel

Travel

+26%

+33%

+26%

+26%

+20%

+24%

+24%

+13%

+21%

+12%

+6%

+29%

+26%

Page 12: Are you leaving ROI on the table?

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

12© comScore, Inc. Proprietary and Confidential.

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%

Page 13: Are you leaving ROI on the table?

� About Us …

� The Current Environment

– Implications for Measuring Digital Advertising Effe ctiveness

� Benchmarking Success via Comprehensive Norms

Agenda

13© comScore, Inc. Proprietary and Confidential.

Page 14: Are you leaving ROI on the table?

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.

14© comScore, Inc. Proprietary and Confidential.

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

Page 15: Are you leaving ROI on the table?

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

Page 16: Are you leaving ROI on the table?

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, …

Page 17: Are you leaving ROI on the table?

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

Page 18: Are you leaving ROI on the table?

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

18© comScore, Inc. Proprietary and Confidential.

Preference

Actual Purchase

Future Intent

– Site visitation

– Site engagement

– Share of mind

– Search

Purchase

– Online

– Offline

Increased Value of IndividualsTarget

Page 19: Are you leaving ROI on the table?

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

Page 20: Are you leaving ROI on the table?

� 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)

Page 21: Are you leaving ROI on the table?

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

Page 22: Are you leaving ROI on the table?

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%

Page 23: Are you leaving ROI on the table?

� About Us …

� The Current Environment

� Implications for Measuring Digital Advertising Effe ctiveness

– Benchmarking Success via Comprehensive Norms

Agenda

23© comScore, Inc. Proprietary and Confidential.

Page 24: Are you leaving ROI on the table?

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

Page 25: Are you leaving ROI on the table?

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%

Page 26: Are you leaving ROI on the table?

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%

Page 27: Are you leaving ROI on the table?

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%

Page 28: Are you leaving ROI on the table?

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%

Page 29: Are you leaving ROI on the table?

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%

Page 30: Are you leaving ROI on the table?

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%

Page 31: Are you leaving ROI on the table?

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%

Page 32: Are you leaving ROI on the table?

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%

Page 33: Are you leaving ROI on the table?

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.

Page 34: Are you leaving ROI on the table?

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

Page 35: Are you leaving ROI on the table?

� 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

Page 36: Are you leaving ROI on the table?

Questions?

Thank you!

Evan Neufeld ( eneufeld @ comscore.com )