state of digital advertising in 2014 : 3 ways how this might affect your brand
DESCRIPTION
the increasing digitization of marketing, retail sales and FMCG has completely changed the way we used marketing. While the digital economy has changed the way we use to market.It has fundamentally not changed the way we used to market, except that " it has forever changed the way we shop , led by the mobile revolutionTRANSCRIPT
© comScore, Inc. Proprietary. © comScore, Inc. Proprietary.
comScore Q1 2014
State of Digital Advertising Report
April 24, 2014
Presented By:
Andrea Vollman, Sr. Director of Product Marketing & Ad Effectiveness
Andrew Lipsman, VP of Marketing & Insights
© comScore, Inc. Proprietary. 2
Today’s Agenda
Digital Ad Industry Overview
Campaign Measurement
Video/Cross-Platform
Mobile Advertising
Native Advertising
Q&A
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Digital Ad Industry Overview
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Online ad revenues totaled $12.1 billion in Q4 2013, the highest quarter
on record
Online Ad Revenue $ Billions and % Chg vs. YA
%
Chg
vs.
YA
$5.8 $5.7 $5.8 $6.1
$5.5 $5.4 $5.5
$6.3 $5.9 $6.2
$6.5
$7.4 $7.3 $7.7 $7.8
$9.0
$8.3 $8.7
$9.2
$10.3 $9.8
$10.3 $10.7
$12.1
+18% +13% +11% +2% -5% -5% -6% +3% +9% +14% +18% +19% +22% +24% +21% +20% +14% +14% +18% +15% +18% +18% +15% +17%
SOURCE: IAB Internet Advertising Revenue Report, Full Year 2013, IAB &
PricewaterhouseCoopers
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Growth is driven by Mobile (+110% Y/Y) and Video (+22% Y/Y)
46%
21%
9%
6%
7%
5% 3%
2%
Ad formats – full year 2012 Total - $36.6 billion
Search
Display / Banner
Mobile
Digital Video
Classifieds
Lead Generation
Rich Media
Sponsorship
43%
19%
17%
7%
6%
4% 3%
2%
Ad formats – full year 2013 Total – 42.8 billion
SOURCE: IAB Internet Advertising Revenue Report, Full Year 2013, IAB &
PricewaterhouseCoopers
* Amounts may not equal 100% due to rounding and omission of minor categories
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Internet is larger than newspaper, radio, and magazine ad spend
individually, but still huge opportunity to close the gap on TV
† The total U.S. advertising market includes other segments not charted here.
* Broadcast Television includes Network and Syndicated and Spot television advertising revenue.
** Cable Television includes National Cable Networks and Local Cable television advertising
revenue.
*** Magazine includes Consumer magazines only.
$40.1
$42.8
$18.0
$16.7
$13.4
$7.9
$0.9
$0.8
$34.4 Television*
Internet
Newspaper
Radio
Magazine**
Out of Home
Video Games
Cinema
2013 Ad Revenue Market Share by Media ($ Billions)
Broadcast TV Cable TV
SOURCE: IAB Internet Advertising Revenue Report, Full Year 2013, IAB &
PricewaterhouseCoopers
$74.5
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Facebook delivered more than 1/4th of desktop display ad impressions
in Q1 — nearly 4x that of the next leading property
27.3%
7.5%
5.9%
2.6%
2.2%
1.3%
0.8%
0.8%
0.8%
0.6%
Yahoo Sites
Google Sites
Microsoft Sites
AOL, Inc.
Turner Digital
Answers.com Sites
Amazon Sites
eBay
Glam Media
Top 10 Publishers by Share of Display Ad Impressions Source: comScore Ad Metrix, U.S., Q1 2014
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AT&T led all advertisers in Q1 with more than 21 billion display ad
impressions on desktop
21.2
9.6
9.2
8.8
6.2
6.0
5.9
5.8
5.5
5.4
AT&T Inc.
Core Digital Media
Microsoft Corporation
Intuit Inc.
Nissan Motor Co., Ltd.
Verizon Communications Inc.
Amazon.com, Inc.
SoftBank Corp.
Fiat Automobiles SpA
Toyota Motor Corporation
Top 10 Advertisers by Display Ad Impressions (Billions) Source: comScore Ad Metrix, U.S., Q1 2014
Auto ads were popular in Q1
Seasonal advertising
from Intuit
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Campaign Measurement
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audience
age
gender
ethnicity
unique users
R/F
AUDIENCE MODULE
in-view
geography
brand safety
non-human
traffic
vCE measures a variety of ad delivery dimensions – including
viewability and audience delivery
AD VALIDATION MODULE
*Target audiences that include ethnicity will require a greater number of impressions
for reportability than a target using basic age and gender.
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vCE Benchmarks
Multitude of U.S. 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
Industry benchmarks are an important guidepost BUT they
shouldn’t be used as the only indicator of delivery performance.
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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
© comScore, Inc. Proprietary. 13
*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.
**Target audience is categorized based on the primary target selection in vCE, which is self-designated during campaign set-up.
***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.
Overall average in-target rate is 44%, with significant variance seen
across product categories
% In-Target: Overall* and by Select Advertiser / Product Category** Source: comScore vCE Benchmarks, Q1 2014, U.S.
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As the target narrows, so does the chance of hitting it
% In-Target by Age* Source: comScore vCE Benchmarks, Q1 2014, U.S.
*Target audience is categorized based on the primary target selection in vCE, which is self-designated during campaign set-up.
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This is true with age and gender as well – as the target narrows, so
does the chance of hitting the target
% In-Target by Age/Gender* Source: comScore vCE Benchmarks, Q1 2014, U.S.
*Target audience is categorized based on the primary target selection in vCE, which is self-designated during campaign set-up.
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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
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The MRC has lifted its advisory on viewable impressions, freeing the
market to transact on viewability
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Overall average in-view rate is 46%, with variance seen across
product categories, though spanning a smaller range than in-target
% In-View: Overall* and by Select Advertiser / Product Category** Source: comScore vCE Benchmarks, Q1 2014, U.S.
*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.
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Video/Cross-Platform
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From TV to Total Video: a new approach to video measurement
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Cross-Platform measurement requires a new approach
Single-Source Panel Multi-Source Attribution
Census data informs
platform audience
de-duplication
algorithm
PC
TV
Radio
Phone Tablet
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A few significant applications of comScore’s Cross-Platform
measurement
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Almost all ESPN media consumers are multi-platform, with 4 platforms
being the most common number for most demographic segments
4%
32% 25% 24%
40%
28%
24% 27%
31%
37% 48%
48%
23%
3% 3% 0% 2%
P18+ P18-34 P35-49 P50+
Total Media Platform Exposure (Avg Week) Source: Project Blueprint, May 2013
5 Platforms*
4 Platforms
3 Platforms
2 Platforms
1 Platform
* Five platforms were TV, PC, Smartphone, Tablet, Radio
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4hr 19min 4hr 28min 5hr 6hr 7min
50 min
59 min
55 min 51 min
40 min
47 min
TV Only TV + PC/LaptopOnly
TV + PC/Laptop +Mobile Only
TV + PC/Laptop +Mobile + Tablet
More screens = more time spent on every device.
Multi-platform users are often your most valuable.
Average Time Spent Per Day Following Olympics Source: NBC Billion Dollar Research Lab, 2012 Olympics
4hr 19min
5hr 18min
6hr 50min
8hr 29min
TV
Only TV +
Desktop
TV +
Desktop +
Mobile
TV +
Desktop +
Mobile +
Tablet
Tablet
Phone Desktop
TV
© comScore, Inc. Proprietary. 25
Mu
lti-
Pla
tfo
rm
Total Digital
Desktop
Total Mobile
SmartPhone
iOS
Android
Tablet
iOS
Android
Living Room Devices
Console
Playstation
PS3
PS4
Xbox
Xbox 360
Xbox One
Connected TV
SmartTV
LG/Samsung
Y! Widgets
Toshiba
Vizio
Dlink Bravia TV Roku
Measuring Sony Crackle
Measuring Sony Crackle across multiple platforms
requires many layers of video audience de-duplication
Audience de-duplication must
occur at multiple levels to
produce a single unduplicated
audience metric
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Crackle’s incremental reach from platforms beyond
desktop video translated to 50% increase in audience size
12.1
2.8
2.0
1.2
Desktop OnlineVideo
Plus Mobile Video Plus Living RoomVideo
Plus Co-Viewing Total VideoAudience
Total Video Measurement of Unique Viewers (MM) for Sony Crackle Source: comScore Custom Research, U.S., December 2013
Desktop Incremental from Mobile
Incremental from Living Room Devices Incremental from Co-Viewing
18.0
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Cross-platform campaign measurement can helps brands
reach incremental audiences more efficiently
0
10
20
30
40
50
60
70
Total
TV
Web
Video
Frozen Vegetable Brand: Cumulative Audience Reach (%) for a Multi-Platform Campaign
Source: comScore vCE Custom Study for CPG Brand
+12 pts
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Mobile Advertising
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Over the next 5 years, Mobile is expected to steal ad spending share
from every other medium
36% 28%
39% 36%
19%
12% 6%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2012 2013 2014 2015 2016 2017 2018
US Total Media Ad Spending Share, by Media 2012-2018 (% of total)
Print*/Radio**/Outdoor/Directories TV Web Mobile
Note: eMarketer benchmarks its US newspaper ad spending projections against the NAA and its US outdoor ad spending
projections against the OAAA, for both of which the last full year measured was 2012; numbers may not add up to 100% due to
rounding; *newspaper and magazine print only; **excludes off-air radio & digital
Source: eMarketer, March 2014
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Total digital media time spent has nearly doubled in the past three
years due to the explosion of tablet and smartphone usage
401 429
131
442 11
124
Dec-10 Dec-13
Total U.S. Time Spent by Digital Platform (Billion Minutes) comScore Media Metrix Multi-Platform, U.S., Dec 2013
Desktop Smartphone Tablet
+83% +1040%
+237%
+7%
© comScore, Inc. Proprietary. 31
If Mobile is becoming such an important part of the media landscape,
then why is it experiencing such a lag in monetization?
8%
18%
52%
11% 11%
24%
10%
44%
20%
2%
0%
10%
20%
30%
40%
50%
60%
Print Radio TV Desktop Mobile% o
f To
tal
Med
ia C
on
su
mp
tio
n T
ime
or
Bra
nd
Ad
vert
isin
g S
pen
din
g
Allocation of U.S. Advertising Spend vs. Time Spent by Medium
Time Spent Ad Spend
Sources: eMarketer, IAB, comScore
Potential
$20 Billion
Gap
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Audiences have gone mobile,
but $$$ have been slow to follow
What is still needed to improve
mobile monetization?
MEASUREMENT
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Mobile brand lift metrics show that mobile advertising can be effective,
especially in driving lower funnel metrics
20%
4%
22%
28%
Aided Awareness
Favorability
Likelihood to Recommend
Purchase Intent
Mobile Ad Effectiveness: Percentage Lift in Brand Metrics (Test vs. Control) Source: comScore BSL Mobile Benchmarks, U.S., 2012-2013
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comScore partnered with IAB and Vibrant Media to measure branding
impacts of “Mobile Rising Star” ad formats
Interaction
Brand Impact
vs.
Interaction
Standard Mobile Banner Rising Star
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Interaction Defined As Users Who:
SLIDE
SWIPE or
TAPPED
The mobile ad.
3x
Interaction with Mobile Rising Star ads inspired significantly more lift
in key branding metrics
Interaction Rates
3X
Standard Mobile Banner ads
+74%
+22%
+83%
Brand Recall Message Recall ImprovedImpression of
Brand
Interaction with IAB Mobile Rising Star Ad Formats vs. Viewed Banner
Ads
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Native Advertising
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As digital media usage goes mobile, native advertising will play an
increasingly important role
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Leading native advertising platforms deliver audiences at scale, but
the majority of activity happens on mobile banners not sufficient
55.4
61.8
64.0
69.6
80.3
186.3
BuzzFeed
Yelp
Pandora
Total Digital Unique Visitors (MM) comScore Media Metrix Multi-Platform, U.S., January 2014
7%
47%
39%
12%
4%
32%
93%
53%
61%
88%
96%
68%
Share of Time Spent Desktop Mobile
© comScore, Inc. Proprietary. 39
The Rise of the Visual Web
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‘Visual Web’ companies have grown dramatically in past several years
and will have significant impact on future of digital marketing
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Tumblr
Vine
Snapchat
Multi-Platform
‘Visual Web’ Social Networks: U.S. Unique Visitor (000) Trend Source: Media Metrix & Media Metrix Multi-Platform, U.S., Mar 2011 - Feb 2014
Desktop Only
© comScore, Inc. Proprietary. 41
Is Pinterest ready to take a big slice of the digital advertising pie?
Rumored ad commitments suggest hopes are high for the platform.
© comScore, Inc. Proprietary. 42
Why should advertisers care about Pinterest? Ability to generate very
high reach among strategic demo segments like Females 18-49
11.9%
21.1% 22.1% 19.8%
36.9%
43.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Desktop Mobile Total Digital Population
Total Audience Females Age 18-49
Pinterest: % Reach Among Total and F18-49 Populations by Platform Source: Media Metrix Multi-Platform, U.S., Feb 2014
© comScore, Inc. Proprietary. 43
Youth-oriented networks are attracting attention from marketers, but
will need to expand beyond Millennials if upside is to be realized
Demographic Index for Tumblr, Snapchat, Instagram and Vine Source: Media Metrix Multi-Platform, U.S., Age 18+, Feb 2014
0
50
100
150
200
250
300
350
Age 18-24 Age 25-34 Age 35+
Tumblr Snapchat Instagram Vine
© comScore, Inc. Proprietary. 44
Summary
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5 Key Takeaways for Marketers & Publishers
1. Use industry benchmarks to guide campaign planning and
performance evaluation, keeping in mind the context of the
campaign objectives and targets
2. Set proper expectations between buyers and sellers during the
upfront planning process to avoid painful reconciliations
3. Adopt a Total Video approach to quantifying video audiences
across platforms to account for mobile and OTT viewing
4. Measure mobile audiences & campaign effectiveness to begin
attracting dollars to a medium that accounts for a rapidly
increasing amount of consumer attention
5. Evaluate native advertising to generate incremental marketing &
monetization opportunities, reach audiences with high impact
advertising, and make better use of mobile
© comScore, Inc. Proprietary. 46
Effectiveness Measurement Will
Be Driven by 3 Primary Factors:
1. Mobile Usage Shift
2. Native Advertising
3. Big Data Enablement
Check out our latest article on social media effectiveness
measurement in the Journal of Advertising Research
Numbers, Please: Digital Game Changers: How Social Media Will Help Usher in the Era of Mobile and Multi-Platform
Campaign-Effectiveness Measurement By Gian Fulgoni & Andrew Lipsman
Read the full article here:
http://www.comscore.com/Insights/Blog/comScore_in_Journal_of_Advertising_Research_on_Topic_of_Social_Media_Effectiveness_M
easurement
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