the state of advertising measurement report state of advertising measurement report ... generates...

What Advertisers Think™

The More You KnowThe Stronger Your BrandThe More You’ll Sell™

The State of Advertising Measurement Report

September 2017

The State of Advertising

Measurement

Overview

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This first-of-its-kind, State of Advertising Measurement report delivers the Advertising Industry’s first look at what advertising decision makers – both Marketers and Agencies–think about the data, measurement, and research tools that they use on a daily basis.

Advertising Week and Advertiser Perceptions interviewed nearly 200 advertisers from the Advertiser Perceptions database for this report, which details attitudes, usage, trust, and needs around all aspects of media measurement.

As the industry continues to move towards people-based marketing it is vital to understand how advertisers think about and use the tools that make it possible.


Measurement

Importance of research and insight capabilities when making media buying decisions

3Q.100 - How important are each of these research and insight capabilities when making Digital/Mobile media buying decisions? How about when making TVmedia buying decisions?Base: Total Respondents - Digital/Mobile,TV

1 Optimization 52%

2 Conversion Tracking 51%

3 Audience Analytics/Measurement 49%

4 Audience Insights 46%

5 Ad Campaign Reporting 42%

6 Ad Effectiveness Research 39%

7 Market Intelligence 37%

8 Multi-Touch Attribution Modeling 37%

9 Syndicated Research 34%

10 Media Mix Modeling 33%

1 Audience Analytics/Measurement 38%

2 Ad Campaign Reporting 36%

3 Market Intelligence 35%

4 Ad Effectiveness Research 35%

5 Audience Insights 33%

6 Optimization 32%

7 Media Mix Modeling 30%

8 Syndicated Research 29%

9 Multi-Touch Attribution Modeling 26%

10 Conversion Tracking 26%

Summary table of ‘very important’

Digital/Mobile Media Buying Decisions TV Media Buying Decisions


Measurement

Important factors/capabilities regarding Audience Insights

Q.110A - Please rank the 5 most important factors/capabilities regarding Audience Insights (RFP, proposal and negotiation stage) when making media buying decisions. Base: Audience insights very/somewhat important

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Generates actionable consumer insights that have bottom line relevance to my business 77%

Provides information and intelligence I cannot get anywhere else 62%

Utilizes multiple data sources (primary, secondary, 3rd party) to generate holistic insights 61%

Provides direct access to key consumer segments/audiences through proprietary online panels or communities 46%

Consistently contributes insights to key industry trade media and participates in trade conferences 30%

Distributes insights in user friendly, easily digestible presentation formats 25%

Summary of Rank 1-3 (NET) - Audience insights very/somewhat important


Measurement

How trustworthy are Audience Insights?

Q.110B - Thinking about the Audience Insights you have reviewed recently… How trustworthy were the results?Base: Audience insights very/somewhat important 5

Completely Trustworthy (5) 33%

Somewhat Trustworthy (4) 49%

Neither Trustworthy/Not Trustworthy (3) 16%

Not Trustworthy (1 & 2) 3%

Percent of respondents


Measurement

Use of Audience Insights?

Q.110D - Regardless of your sense of trust in the Audience Insights you have reviewed recently, how much did/do you use the results?Base: Audience insights very/somewhat important 6

Use Frequently (5) 44%

Use Often (4) 36%

Use Moderately (3) 17%

Don’t Use (1 & 2) 3%


Measurement

Most important factors/capabilities regarding Advertising Effectiveness Research

when making media buying decisions

Q.115A - Please rank the 5 most important factors/capabilities regarding Advertising Effectiveness Research (post campaign) when making media buying decisions.Base: Total Respondents 7

Optimizes campaign and adjusts strategies while still in market, as opposed to solely reporting results when it is completed 58%

Measures the performance of specific media or media combinations (which medium or combination of media within the mix was most effective at achieving objectives) 57%

Goes beyond reporting how the campaign performed and delivers insights on why it performed the way it did 42%

Provides actionable recommendations for future ad programs based on results 38%

Delivers digestible, user-friendly reports that can be shared with multiple departments within the company 36%

Holistically measures the effectiveness of campaigns (how all media worked together to accomplish marketing objectives) 32%

Effectively communicates and present results via in person presentation 19%

Accurately gauges ROI by tying campaign to actual sales/transactional data 19%

Summary of Rank 1-3 (NET) - Total Respondents


Measurement

How trustworthy is Advertising Effectiveness Research?

Q.115B - Thinking about the Advertising Effectiveness Research (post campaign) you have reviewed recently… How trustworthy were the results?Base: Advertising effectiveness very/somewhat important 8

Percent of respondents –Advertising effectiveness very/somewhat important


Trustworthy (4) 59%


Not at all trustworthy (1 & 2) 1%


Measurement

Use of Advertising Effectiveness Research?

Q.115D - Regardless of your sense of trust in the Advertising Effectiveness Research you have reviewed recently, how much did/do you use the results?Base: Advertising effectiveness very/somewhat important 9



Use (3) 14%

Did not Use at All (1 & 2) 0

Percent of respondents - Advertising effectiveness very/somewhat important


Measurement

Most important Audience Analytics/Measurementfactors/capabilities when making media buying decisions

Q.120A - Thinking about a recent campaign, rank these 5 Audience Analytics/ Measurement (Implementation/optimization and post campaign stage) factors/capabilities in order of importance when making media buying decisions.Base: Audience analytics/measurement very/somewhat important 10

Ability to validate impressions via accurate viewability measurement 70%

Separately measures audiences on different devices (Desktop/Laptop, smartphone, tablet) 66%

Holistically measures audiences on different devices and operating systems (unduplicated measurement) 59%

Holistically measures audiences on different mediums (“single source” unduplicated measurement of multiple media users: TV, web, mobile, print, social, etc.) 57%

Separately measures audiences on different operating systems (iOS, Android, etc.) 49%

Percent of respondents - Summary of Rank 1-3 (NET) - Audience analytics/measurement very/somewhat important


Measurement

How trustworthy is Audience Analytics/Measurement?

Q.120B - Thinking about the Audience Analytics/Measurement you have reviewed recently… How trustworthy were the results?Base: Audience analytics/measurement very/somewhat important

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Somewhat Trustworthy (4) 59%


Not at all Trustworthy (1 & 2) 1%


Measurement

Use of Audience Analytics/Measurement?

Q.120D - Regardless of your sense of trust in the Audience Analytics/Measurement you have reviewed recently, how much did/do you use the results?Base: Audience analytics/measurement very/somewhat important 12



Use (3) 23%

Did not Use at All (1 & 2) 0

Audience analytics/measurement very/somewhat important Percent of respondents


Measurement

Thinking about your biggest or most important recent digital/mobile campaign, and including programmatic and re-targeting,

about how many web sites did it appear on?

Q.130 - Thinking about your biggest or most important recent digital/mobile campaign, and including programmatic and re-targeting, about how many web sites did it appear on? We realize that programmatic/audience buying and re-targeting can obscure the site specifics/counts, please use your best guess if necessary.Base: Total Respondents 13

10 or fewer 4%

10 to 25 6%

26 to 50 13%

51 to 100 12%

101 to 250 13%

251 to 500 15%

501 to 1000 15%

1001 to 2500 15%

2501 to 5000 7%

5001 or more 1%

30%250 – 1000 sites

23%more than 1000 sites

25%50 – 250 sites

23%less than 50 sites


Measurement

Has your company had recent discussions about “coring down” digital/mobile campaigns and running on significantly fewer,

specifically listed media properties, including programmatic and re-targeting?

Q.135 - Has your company had recent discussions about “coring down” digital/mobile campaigns and running on significantly fewer, specifically listed media properties, including programmatic and re-targeting?Base: Total Respondents 14

YES, we have discussed, formally or informally, “coring down” 63%

NO, we have not discussed “coring down” 23%

NON-ISSUE: all our campaigns run only on specific, known media properties 14%


Measurement

You say your company has discussed “coring down” and running campaigns on fewer digital/mobile media properties.

Which of these best reflects the status of that discussion.

Q.140 - You say your company has discussed “coring down” and running campaigns on fewer digital/mobile media properties. Which of these best reflects the status of that discussion.Base: Those had recent discussions about “coring down” digital/mobile campaigns and running on significantly fewer 15

We have discussed, and implementation is likely in the future 32%

We have discussed, but implementation is uncertain 28%

The discussion(s) has been informal and speculative 19%

We have discussed, and there is a plan for implementation, with a start date 15%

We have already begun to “core down” our digital/mobile media buys 7%


Measurement

48% 52%

95% of respondents estimate that they’re losing at least some of their spend to fraud…

52% say it’s 10% or more of their spend!

Q.150 - What share of your digital/mobile advertising spend is lost to fraud? Your best estimate is fine.Base: Total Respondents 16

Less than 10%lost to fraud

Between 10% – 50%lost to fraud


Measurement

Most respondents “estimate” fraud percentage

Q.155 - You say [RANGE FROM Q150/1-8] of your digital/mobile advertising spend is lost to fraud, which of these statements best characterizes how you arrived at that number. Base: Digital/mobile advertising spend 17

It's my best estimate based on my experience and expertise 42%

Loss to fraud is informally discussed at my company and this is our best informal estimate 33%

Loss to fraud is formally discussed at my company and this is our formal estimate/assumption 14%

My company has done specific research/audits to arrive at a fraud-loss estimate and the result is in this range 11%


Measurement

Share of Digital Mobile campaigns subject to formal verification and analytics

Q.160A - What share of your digital/mobile campaigns are subject to formal verification and analytics in each of these ways?Base: Total Respondents

18

16% 6% 6%

30%

26% 29%

14%

20% 14%

19% 22% 25%

21% 26% 26%

In-HouseIndependent Third party

Media Brand/Partner

More than 75%

50% to 75%

25% to 50%

Less than 25%

None


Measurement

How thorough do you feel each type of verification and analytics effort is?

Q.160B - How thorough do you feel each type of verification and analytics effort is?Base: Digital/mobile campaigns - (Variable Base)

19

In-House 26%

Independent Third-Party 26%

Media Brands/Partners 21%

Summary Table of 5-Very Thorough


Measurement

How trustworthy do you feel each type of verification and analytics effort is?

Q.160C - How trustworthy do you feel each type of verification and analytics effort is?Base: Digital/mobile campaigns (Variable Base)

20

In-House 32%

Independent Third-Party 31%

Media Brands/Partners 28%

Summary Table of 5-Very Trustworthy


Measurement

Your company’s stance on the IAB/MRC viewability standard

Q.180A - Which of these statements best characterizes your company’s stance on the IAB/MRC viewability standard?Base: Total Respondents

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The viewability standard is adequate, and we do not pay for non-viewable ads 44%

The viewability standard sets too low a bar, but we don't require a stricter standard for our ads 34%

The viewability standard sets too low a bar, and we require a stricter standard for our ads 26%

We typically don't include a viewability requirement in our contracts 18%


Measurement

Both ‘percentage of pixels’ and ‘time viewable’ are important

Q.180B - Which is more important, percentage of pixels, or time viewable?Base: Total Respondents 22

Which is more important, percentage of pixels, or time viewable?

6%Percentage

of pixels

62%Both equally

32%Time

viewable


Measurement

Importance of MRC (Media Ratings Council) accreditation when assessing the value of a vendor’s data

Q.185 - How important is MRC (Media Ratings Council) accreditation when assessing the value of a research vendor’s data?Base: Total Respondents

23

21%Neither Important nor Unimportant

66%Very/Somewhat

Important

13%Unimportant


Measurement

Familiarity with TAG (Trustworthy Accountability Group)

Q.190 - How familiar are you with the trade group Trustworthy Accountability Group (TAG)Base: Total Respondents 24

52%Very/

Somewhat Familiar28%

Heard of It, but Don't Really

Know What They do

20%Never Heard

of it


Measurement

Views on Nielsen C3 & C7 metrics

Q.210 - Which statement best reflects your company’s views on the Nielsen C3 and C7 metrics?Base: Total Respondents 25

We make decisions based on C3, but there is a desire for C7 38%

We make decisions based on C3 for some video buys and C7 for others 32%

We make decisions based on C3 only 15%

We make decisions based on C7 14%


Measurement

How trustworthy is Nielsen C3/C7? How about, generally speaking, the network’s efforts

to fold-in behavioral targeting?

Q.220 - How trustworthy is Nielsen C3/C7? How about, generally speaking, the network’s efforts to fold-in behavioral targeting?Base: Nielsen C3/C7 very/somewhat valuable 26

Summary Table of Completely Trustworthy

Nielsen C3/C7 34%

Network Behavioral Targeting 32%


Measurement

Your level of trust in networks’ behavioral targeting is a on a 5-point scale where 5 is very trustworthy. Which of these statements best

characterizes how you arrived at that?

Q.225 - Your level of trust in networks’ behavioral targeting is a on a 5-point scale where 5 is very trustworthy. Which of these statements best characterizes how you arrived at that?Base: Network Behavioral Targeting is Nielsen C3/C7 27

It's my best estimate based on my experience and expertise 44%

Network behavioral targeting is discussed at my company and this is our best informal estimate 30%

Network behavioral targeting is discussed at my company and this is our formal estimate/assumption 16%

My company has done specific research/audits to understand network behavioral targeting and this is our conclusion 10%


Measurement

How accurate is your first party data?

Q.300A - How accurate do you feel your first-party (customer) data is?Base: Total Respondents 28

Very Accurate (5) 32%

Somewhat Accurate (4) 51%

Neither Accurate/Not Accurate (3) 16%

Not Accurate (1 & 2) 2%


Measurement

Do you rely on/use your first-party data?

Q.300B - Regardless of your sense of its accuracy, how heavily you rely on/use your first-party (customer) data?Base 29

Base: Total Respondents

Rely on it Heavily (5) 34%

Rely on it (4) 46%

Neither Rely on it/Do not Rely on it (3) 14%

Do not rely on it (1&2) 7%


Measurement

Thinking about all sources of third-party/partner data you have access to for digital campaigns, how accurate do you feel the data is?

Q.305A - Thinking about all sources of third-party/partner data you have access to for digital campaigns, how accurate do you feel the data is?Base: Total Respondents 30


Accurate (4) 45%


Not Accurate (1&2) 3%


Measurement

Thinking about all sources of third-party/partner data you have access to for TV campaigns, how accurate do you feel the data is?

Q.310A - Thinking about all sources of third-party/partner data you have access to for TV campaigns, how accurate do you feel the data is?Base: Total Respondents 31


Accurate (4) 43%


Not Accurate (1&2) 4%


Measurement

Do you use modeled consumer data in digital campaigns?

Q.315A - Do you use modeled consumer data in digital campaigns?Base: Total Respondents 32

15%NOT SURE

64%YES

21%NO


Measurement

Definitions

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• Audience Insights (RFP, proposal and negotiation stage)

• Advertising Effectiveness Research (post campaign)

• Audience Analytics/ Measurement (Implementation/optimization and post campaign stage)

• “Coring down” big digital/mobile campaigns and providing a specific list of digital/mobile sites/apps to run on. This suggested “coring down” would cut the number of sites for a campaign by 75% or more

• The IAB/MRC standard for viewability is:

• Display Ads: Greater than or equal to 50% of the pixels in the advertisement were on an in-focus browser tab on the viewable space of the browser page for at least one continuous second, post ad render.

• Video Ads: Greater than or equal to 50% of the pixels in the advertisement were on an in-focus browser tab on the viewable space of the browser page and at least 2 continuous seconds of the video advertisement is played


Measurement

Methodology and Respondent Profiles

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• Sample: Marketer and Agency contacts from The Advertiser Perceptions Media Decision Maker Database and third-party databases as needed.

• Qualification: 100% involved in media brand selection decisions

• Directional Data: Some findings in the presentation could reflect data with low bases and will be noted.

• Weighting: Data has been sample balanced and weighted to reflect relative agency/marketer influence.

Sector:

• Automotive

• Parenthood Related

• Consumer Electronics

• Consumer Packaged Goods

• Entertainment

• Financial Products/Services

• Home & Appliance

• Liquor, Beer and Wine

• Apparel/Fashion

• Toiletries & Cosmetics

• Pharmaceuticals

• Quick Service Restaurants

• Retail

• Technology

• Telecommunications

• Travel

Involved in Media Selection for:

• Fielded: Aug/Sept 2017• Incentives include cash and

information

Marketers ranging in title: • 55% VP and above • 31% Director/Supervisor• 14% Manager/Planner/Buyer

Agencies ranging in title: • 60% VP and above • 31% Director/Supervisor• 8% Manager/Planner/Buyer

197 Online Interviews Conducted

Expressing opinions from:• 60% Agencies • 40% Marketers

With annual ad budgets:• $1-50 million (19%)• $50 million+ (79%)

Media Type

• Magazines• National Newspapers• Cable TV• Broadcast TV• Advanced/Interactive TV• Digital Display• Digital Search• Digital Video• Programmatic• Sponsored Content/Native

Advertising• Social Media Advertising• Mobile Web• Mobile Apps• Terrestrial Radio• Pure Play Digital Radio• Online-Terrestrial Radio• Outdoor/Out of Home

What Advertisers Think™

The More You KnowThe Stronger Your BrandThe More You’ll Sell™

Contacts:Randy Cohen

[email protected]

Kevin [email protected]

Andy [email protected]

Justin [email protected] AdvertiserPerceptions.com

Twitter.com/adperceptions

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