2014 Visual Marketing Summit - Keynote and Intro

© comScore, Inc. Proprietary. 1#VISUALMARKETINGSUMMIT

VISUALMARKETINGSUMMIT


WHAT IS NATIVE?

© comScore, Inc. Proprietary. 3

Scale22%

Creative56%

Measurement22%

THE REASONS WE DON’T BUY NATIVE

#VISUALMARKETINGSUMMIT


Scale34%

Creative22%

Measurement44%

AREN’T THE REAL OBSTACLES


CTR15%

Shares21%

Con-ver-sions26%

Brand lift38%

94%use native for branding

#VISUALMARKETINGSUMMIT


80% agree that an ad’s image is more likely to affect consumer behavior than copy



For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

The Visual WebAndrew Lipsman, VP of Marketing & InsightsJune 12, 2014

How the Digital Consumer is Shaping


“Technology is a glittering lure, but there’s the

rare occasion when the public can be engaged

on a level beyond flash…. If they have a

sentimental bond with the product.”

~ Don Draper


The Visual Web

The Rise of the Visual Web Reaching Valuable Audiences w/ Visual Content Social + The Mobile Platform Shift Native Advertising Final Thoughts

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 11

The Rise of the Visual Web

© comScore, Inc. Proprietary.

Virtua

The Rise of the Visual Web

Visual Web 2.0Visual Web 1.0


‘Visual Web’ companies have grown dramatically in past several years and will impact future of digital marketing

Mar

-201

1

Apr-2

011

May

-201

1

Jun-

2011

Jul-2

011

Aug-2

011

Sep-2

011

Oct-20

11

Nov-2

011

Dec-2

011

Jan-

2012

Feb-2

012

Mar

-201

2

Apr-2

012

May

-201

2

Jun-

2012

Jul-2

012

Aug-2

012

Sep-2

012

Oct-20

12

Nov-2

012

Dec-2

012

Jan-

2013

Feb-2

013

Mar

-201

3

Apr-2

013

May

-201

3

Jun-

2013

Jul-2

013

Aug-2

013

Sep-2

013

Oct-20

13

Nov-2

013

Dec-2

013

Jan-

2014

Feb-2

014

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Tumblr Pinterest Instagram Vine Snapchat

Multi-Platform

‘Visual Web’ Social Networks: U.S. Unique Visitor (000) TrendSource: Media Metrix & Media Metrix Multi-Platform, U.S., Mar 2011 - Feb 2014

Desktop Only


Visual Web companies have achieved billion dollar valuations with almost no revenue. Why is that?

* Some numbers are reported but unconfirmed

Company Transaction Valuation at Time of

Transaction

Revenue at Time of Transaction

Tumblr Acquired by Yahoo in 2013

$1.1 Billion $14 Million

Pinterest $200 million fundraise in 2014

$5 Billion ~$0

Instagram Acquired by Facebook in 2012

$1 Billion $0

Vine Acquired by Twitter in 2012

$30 Million $0

Snapchat Turned down FB offer in 2013

$3 Billion $0


For Advertisers Reach Engagement Emotional resonance Brand connections Target attractive audiences

For Consumers + Personal Interesting Aspirational Nostalgic Shareable

Because the Visual Web creates value…


Reaching Valuable Audiences with Visual Content


Social media users spend 31% more than average online, and Pinterest users spend nearly 2x the norm

E-Commerce Buying Power Index for Selected Leading Social PlatformsSource: comScore Media Metrix, U.S., March 2014

Social Networking Facebook Tumblr Instagram Pinterest

50

100

150

200

131 139 144154

194


Is Pinterest ready to take a big slice of the digital advertising pie?


Pinterest continues to grow in both reach and engagement, while offering a great visual experience for brand marketers

Pinterest: Trends in % Reach and User EngagementSource: Media Metrix Multi-Platform, U.S., Age 18+, Feb 2014

Apr-2013

May-2013

Jun-2013

Jul-2013

Aug-2013

Sep-2013

Oct-2013

Nov-2013

Dec-2013

Jan-2014

Feb-2014

Mar-2014

Apr-2014

0102030405060708090

100

0%

5%

10%

15%

20%

25%

Average Minutes per Visitor % Reach


Not only does Pinterest have overall reach, but also within especially valuable demos such as F18-49

Desktop Mobile Total Digital Population0%

10%

20%

30%

40%

50%

12%

21% 22%20%

37%43%

Total Audience Females Age 18-49

Pinterest Penetration (%) by Platform for Total Audience and Females Age 18-49Source: Media Metrix Multi-Platform, U.S., Age 18+, Feb 2014


While Pinterest reaches Females, other visual web networks skew heavily towards Millennials

Demographic Index for Tumblr, Snapchat, Instagram and VineSource: Media Metrix Multi-Platform, U.S., Age 18+, Feb 2014

Age 18-24 Age 25-34 Age 35+

0

50

100

150

200

250

300

350

Tumblr Snapchat Instagram Vine


While Facebook remains the strong leader in competition for consumers’ attention, Instagram is now 2nd

Age 55+

Age 35-54

Age 18-34

60% 65% 70% 75% 80% 85% 90% 95% 100%

91%

89%

76%

2%

3%

10%

3%

4%

6%

1%

1%

3%

1%

2%

2%

2%

1%

0%

0%

0%

3%

Percent Share of U.S. Total Minutes Among Selected Leading Social NetworksSource: comScore Media Metrix Multi-Platform, U.S., Age 18+, Nov-2013

Facebook.com Instagram.com Twitter.com Tumblr.comPinterest.com Linkedin Snapchat, Inc


Instagram continues strong growth trajectory, but nearly 4 out of 5 minutes come from 18-34 year olds

Feb-2013

Mar-2013

Apr-2013

May-2013

Jun-2013

Jul-2013

Aug-2013

Sep-2013

Oct-2013

Nov-2013

Dec-2013

Jan-2014

Feb-2014

Mar-2014

Apr-2014

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Instagram Total Mobile Minutes (Billions) by Age DemographicSource: comScore Mobile Metrix, U.S., Age 18+, Feb 2013 – Apr 2014

Age 35+Age 25-34Age 18-24


Brands of Instagram tend to have youth appeal, but are also aspirational


Instagram can make the everyday brands feel meaningful and extraordinary


Social + The Mobile Platform Shift


Total digital media time spent has nearly doubled in the past three years due to explosion of smartphone & tablet usage

Dec-10 Dec-13 % Increase

401,278,000 429,104,439

130,915,638

441,692,836 10,845,633

123,661,452

Total U.S. Time Spent by Digital Platform (Billion Minutes)Source: comScore Media Metrix Multi-Platform, U.S., Dec 2013

+83% +1040%

+237%

+7%


Many content categories are already mobile-majority in terms of engagement

Photos

Maps

Games

Weather

Social Networking

Retail

News/Information

Entertainment News

Business/Finance

Healh Information

Portals

5%

11%

17%

31%

33%

48%

54%

56%

64%

64%

72%

95%

89%

83%

69%

67%

52%

46%

44%

36%

36%

28%

Desktop Mobile

Share of Content Category Time Spent by PlatformSource: comScore Media Metrix Multi-Platform, U.S., February 2014


Camera-based content creation is fueling the rapid growth in the mobile-first Visual Web

Apr-2012

May-2012

Jun-2012

Jul-2012

Aug-2012

Sep-2012

Oct-2012

Nov-2012

Dec-2012

Jan-2013

Feb-2013

Mar-2013

Apr-2013

May-2013

Jun-2013

Jul-2013

Aug-2013

Sep-2013

Oct-2013

Nov-2013

Dec-2013

Jan-2014

Feb-2014

Mar-2014

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Took Photos

Number of U.S. Smartphone Users (000) Who Have Engaged in Camera Capturing Activity At Least Once a Week

Source: comScore MobiLens, U.S., Apr-2012 – Mar 2014

Recorded Video

+91%

+54%


Most leading social networks see majority of engagement come via mobile, particularly among mobile-first players

Vine

Snapchat

Tumblr

Pinterest

Linkedin

Instagram

Twitter

Facebook

Social Networking

2%

52%

7%

69%

2%

10%

32%

33%

98%

100%

48%

93%

31%

98%

90%

68%

67%

U.S. Share of Time Spent on Social Networks Between PlatformsSource: comScore Media Metrix Multi-Platform, U.S., Age 18+, Feb-2014

Desktop Mobile


Native Advertising


Why Native Advertising has become so important

Google Trend for “Native Advertising” News Headlines

Optimized to scale across platforms

Work within context of mobile scrolling

Leverage cross-platform synergies

32%

59%

9%

Desktop OnlyMulti-PlatformMobile Only

U.S. Web Users


Native ad units take many forms, and almost universally work well within a mobile environment


Leading native advertising platforms deliver audiences at scale, but the majority of activity happens on mobile

BuzzFeed

Yelp

Twitter

Pandora

Facebook

61.8

64.0

69.6

80.3

186.3

Total Digital Unique Visitors (MM)comScore Media Metrix Multi-Platform, U.S., January 2014

47%

39%

12%

4%

32%

53%

61%

88%

96%

68%

Share of Time SpentDesktop Mobile


What’s next for Native Advertising?

Scalability for niche content providers via

solutions that help aggregate inventory

Measurement of audience validation, brand lift

and sales lift for native campaigns

Cross-Platform Comparability in

evaluating campaign performance with consistent metrics


Final Thoughts


Final Thoughts…

Excellent way to reach the right audiences in the right context

Native advertising aligns with consumers’ shift to mobile

Early stages in a new ad medium are when potential is highest to generate

strong ROI

Native platforms have built-in ‘copy-testing’ & content optimization

Digital (desktop + mobile) is finally coming of age as a true branding medium

5 Reasons Why Now is a great time to explore Native Advertising

on the Visual Web


The Visual Web

Thank You!



2014 Visual Marketing Summit - Keynote and Intro

Business

comscore products

comscore media metrix

visual web visual web

proprietary technology

visual web networks

visual web companies

media metrix media metrix

great visual experience