2010.06 The Proof for Branding Online

The Proof for Branding Online

Gian Fulgoni, Executive Chairman, comScore, Inc.

2© comScore, Inc. Proprietary and Confidential.

Does the Click Tell Us Anything About the Branding Impact of Online Advertising?

30% of marketing VPs still believe the click is the best measure of the branding impact of online ad campaigns

Forrester Study

64% of advertisers and agencies cited the click as the most important metric to use when evaluating the impact of a campaign running on an ad network

2010 Collective Study

However, a recent comScore study shows that 84% of Internet users do NOT click on any ad in a month

Click rates on individual campaigns have fallen to levels of only 0.1%

2


Does the Click Tell Us Anything About Branding Impact?Global Click Rates on Individual Campaigns are Pitifully Low

Source: DoubleClick DART for Advertisers, a cross section of regions, January – December 2008

0.07%

0.08%

0.08%

0.08%

0.09%

0.10%

0.10%

0.10%

0.10%

0.11%

0.11%

0.12%

0.12%

0.12%

0.13%

0.14%

0.14%

0.14%

0.15%

0.16%

0.17%

0.18%

0.18%

0.20%

0.20%

0.21%

0.26%

0.29%

Norway

Ireland

Luxembourg

United Kingdom

Finland

Australia

Canada

Sweden

United States

Hungary

Switzerland

Denmark

France

Italy

Germany

New Zealand

Spain

Turkey

Austria

Netherlands

Belgium

China

Greece

India

Singapore

Hong Kong

United Arab Emirates

Malaysia

Worldwide Click-Through Rates*

*Click-through rates across Static Image, Flash, and Rich Media formats

0.07%

0.08%

0.08%

0.08%

0.09%

0.10%

0.10%

0.10%

0.10%

0.11%

0.11%

0.12%

0.12%

0.12%

0.13%

0.14%

0.14%

0.14%

0.15%

0.16%

0.17%

0.18%

0.18%

0.20%

0.20%

0.21%

0.26%

0.29%

Norway

Ireland

Luxembourg

United Kingdom

Finland

Australia

Canada

Sweden

United States

Hungary

Switzerland

Denmark

France

Italy

Germany

New Zealand

Spain

Turkey

Austria

Netherlands

Belgium

China

Greece

India

Singapore

Hong Kong

United Arab Emirates

Malaysia


If Not The Click, Then What?

“A click means nothing. A click earns no revenue and creates no brand equity. Your online advertising has some goal – and it’s surely not to generate clicks. You want people to visit your website, seek more information, purchase a product, become a lead, keep your brand top of mind, learn something new, feel differently, etc. Regardless of whether they clicked an ad or not, the key is to determine how that ad unit influenced a consumer to think, feel, or do something they wouldn’t have done otherwise.”

John Lowell

SVP Director, Research & Analytics

Starcom


Panels Provide the SolutioncomScore Global Panel of 2 Million Users, Largest of Its Kind

360° View of Consumer Behavior360° View of Consumer Behavior

Advertising Exposure

Advertising Exposure

Online / Offline Transactions

Online / Offline Transactions

Search Behavior

Search Behavior

DemographicsLife Stages

DemographicsLife Stages

Streaming Video

Streaming Video

Web Visiting and Viewing

Web Visiting and Viewing

The Only Global Measurement of Audience and e-Commerce

The Only Global Measurement of Audience and e-Commerce

41 Media Metrix Reported Countries

170+ Countries with Sample Presence

Mobile Usage

Mobile Usage


Understanding Behavioral Impact Of Ad Exposure:comScore’s Methodology

AD EXPOSED GROUP

BALANCEDUNEXPOSED GROUP

Site Visitation

Site Engagement

Search Behavior

Buying Behavior

LIFT METRICS

Test and control groups matched on demographic and behavioural variables


comScore “Whither the Click in Europe?”Display Ads Lift Visitation to Advertiser Site Even With Minimal Clicks

Source: Average of 20 Studies Published in comScore’s “Whither the Click in Europe?” Feb 2010

% Lift: 99% % Lift: 75% % Lift: 73% % Lift: 80% % Lift: 71%


comScore “Whither the Click in Europe?”Display Ads Increase No. of Trademark Search Queries Even With Minimal Clicks

Source: Average of 20 Studies Published in comScore’s “Whither the Click in Europe?” Feb 2010

% Lift: 91% % Lift: 89% % Lift: 81% % Lift: 136% % Lift: 114%


Going Beyond Site Visitation and Search to E-Commerce:Display Campaigns Increase Buyer Conversion

Campaign generated 50,000 (33%) more buyers

Campaign Reached 34% of U.K. Internet Users

with an Average Frequency of 7 Impressions

Campaign Reached 34% of U.K. Internet Users

with an Average Frequency of 7 Impressions

+50,000 buyers

Total HH Reached

Buyer Conversions

12.8m 12.8m

1.2% 1.6%

Total Buyers 154,000 204,000

Source: comScore Campaign Metrix

Metric Without Campaign With Campaign


Online Advertising Matches TV in Ability to Lift Offline Sales of CPG Brands

The Superior Targeting Ability of the Internet Likely Explains the Faster Offline Sales Response

BehaviorScan tests conducted over one year period. comScore studies over three monthsAssumes 40% Internet Reach Against Target


The .Fox U.K. Ad Studies

Objective:

Partnering with .FOX Networks, comScore examined the effectiveness of display vs.

video ad formats as well as the frequency of exposure to the campaign ads

Methodology:

Four U.K. campaigns were examined from different sectors (Travel, Finance,

Government and Utilities) comprising over 300 million impressions served to U.K.

Internet users across various ad formats in 2009. comScore used its panel of 70,000

U.K. Internet users to passively track online behaviour to understand the impact of

advertising on specific activities linked to campaign effectiveness over time, namely:

-- Advertiser Site Visitation

-- Trademark Search Queries


Reach & Frequency Information by Campaign

CampaignOverall

Campaign Reach

Average Frequency of

Exposure

Online Gross Rating Points

(GRPs)

Formats Used

Finance 8.2MM (23%) 3.5 82 Only Video

Travel 26.4MM (72%) 5.6 405 Display

Public Sector 22.8MM (62%) 6.5 403 Display +

Video

Utilities 16.9MM (46%) 6.0 276 Display


Overall Campaign Summary

SectorUnexposed

GroupExposed Group

Absolute Percentage Point Lift

% Lift

Finance 1.98% 5.47% 3.49 176%

Travel 0.33% 4.88% 4.55 1,379%

Public Sector 0.19% 1.05% 0.86 453%

Utilities 0.05% 0.55% 0.50 1,000%

SectorUnexposed

GroupExposed Group

Absolute Percentage Point Lift

% Lift

Finance 3.97% 7.43% 3.46 87%

Travel 0.20% 2.40% 2.20 1,100%

Public Sector 1.97% 3.50% 1.53 78%

Utilities 1.07% 2.55% 1.48 138%

Advertiser site reach within 4 weeks of first exposure to display ad

Reach of advertiser search queries within 4 weeks of first exposure to display ad


Within the Public Sector Campaign, Video Generated Higher Lifts than Did Display


Campaign Search Queries Climb Steadily With Increased Display Exposures While Video Has a More Immediate Impact with Fewer Exposures

Absolute Percentage Point Lift in Campaign Search Term Reach Exposed Group vs Control Group

Campaign Breakout:Video Only: FinancialDisplay Only: Travel, Utilities & Public Sector


The Key to Measuring the Branding Effectiveness Online Advertising is Behavior ….

“This .Fox research is valuable because it looks beyond the usual data used by the industry for media trading. As opposed to relying on the usual simplistic denominators of click-thru and last event attribution, this research centers on consumer behavior proxies that are better placed to reflect communication goals, defining success based on a mix of visitation, engagement and search behavior across a four week period. By addressing difficult planning considerations such as cross format and multiple touchpoint attribution, this .Fox research better reflects the way Havas Digital believes campaigns must be evaluated if the digital media industry is to continue to grow in terms of significance for major advertisers."

Anthony Rhind

Global Co-CEO, Havas Digital

2010.06 The Proof for Branding Online

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2010.06 The Proof for Branding Online