Lessons learned in a digital marketing world

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Lessons Learned

In a Digital Marketing WorldJanuary 25, 2016

Gian Fulgoni

Co-Founder & Chairman

© comScore, Inc. Proprietary. 2© comScore, Inc. Proprietary.

Digital Marketing: Five Key Lessons

The Click

Search & Display Advertising

Mobile

Targeting, Viewability, Brand Safety & Invalid Traffic

Cross-Platform

© comScore, Inc. Proprietary. 3

Data sourced from comScore’s global panel of 2 million Internet users

2 Million Person Panel

360°View of Person Behavior

CENSUS

Unified Digital Measurement™ (UDM)

Patent-Pending Methodology

1 Million Domains ParticipatingAdopted by 90% of Top 100 U.S. Media Properties

PANEL

PERSON-Centric Panel with

WEBSITE-Census Measurement

Web Visiting & Search

Behavior Online AdvertisingExposure

AdvertisingEffectiveness

Demographics,Lifestyles& Attitudes

Media & VideoConsumption

Transactions

Online& Offline

Buying

Mobile InternetUsage & Behavior

PANEL

V0411Plus 5 Million TV Set Top Boxes for 3-Screen Measurement

© comScore, Inc. Proprietary. 4Percent of Time Spent


Digital advertising is forecast to become the #1 U.S. Media category in 2016, but

TV not expected to decline


Clicks on ads are at best an incomplete –and at worst a misleading – effectiveness metric.

Measure attitudinal and behavioral lifts instead.

© comScore, Inc. Proprietary.

In the early days of online advertising, many relied on the click-

through rate

Simple, fast &

inexpensive metric

Popular DR measure for

search

In the early days, many

people clicked due to

display’s novelty


G

U

Whither the Click?

Only 1 to 3 clicks per one thousand impressions!

But today, very few people click on display ads ….

Source: Google DoubleClick

Click-through rates across static image, flash and rich media formats

0.14% 0.15% 0.32% 0.16% 0.10%

8© comScore, Inc. Proprietary.

U.K. U.S.Germany France Spain


comScore research has shown that clicks don’t reflect sales impact

$-

$0.100

$0.200

$0.300

$0.400

$0.500

$0.600

0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80%

Sale

s L

ift/

HH

in

$

CTR

A negative pattern exists between Sales

Lift per Household and Click Through

Rate (i.e., as CTR increases, sales

decrease)

R2 = -0.039

A regression analysis shows there is no

statistically significant relationship

between CTR and Sales

Sale

s L

ift/

HH

in

$

Click-through Rate


27% 31% 32%

9%15% 10%

36%46% 42%

Agency(n=135)

Advertiser/ Marketer/Manufacturer/ Retailer

(n=80)

Publisher/ Ad Network(n=149)

Always

Most of the time

% Indicating Organization Relies on CTR

But, approximately four-in-ten industry professionals still

rely on CTRs to measure display ad effectiveness!

Question: How often does your organization rely on Click Through Rate (CTR) as a measure of the effectiveness of display

advertising campaigns? (Excluding ‘don’t know/NA’)


Use the correct metrics: Despite click rates of only 0.1%,

display ads can successfully lift sales – both online and offline


$994

$9,905

$1,263

$11,550

Online Offline

Unexposed Exposed

Dollar Sales Lift Among

Households Exposed

to Online Advertising % Lift: 17%

% Lift: 27%

CONCLUSIONS

Exposure to display ads

doesn’t just impact online sales

– it lifts in-store sales as well

The absolute dollar lift in offline

sales is 5x higher than the lift in

e-commerce sales

The click is misleading as a

measure of campaign

effectiveness

Source: “Whiter the Click?” 139 comScore studies in June 2009 Journal of Advertising Research


Forget Last-Click Attribution: Synergy Gains Can Be Obtained by Overlaying Display

Campaigns on Search


For multi-channel retailers, higher offline sales lifts are seen from search vs. display

advertising, but combined the synergy provides an even greater lift

0%

20%

40%

60%

80%

100%

120%

Search and Display Search Only Display Only

+82%

+16%

+119%

Incremental Lift in Retailers’ Offline Sales per (000) Exposed

Source: comScore Ad Effectiveness Solutions


For multi-channel retailers, the higher reach of display ads often helps lift TOTAL offline sales more

than does search. But, synergy gains can be obtained by using display overlaid on a search

campaign

Source: comScore Ad Effectiveness Solutions

+11%

% of Households Reached Incremental Impact on

Offline Sales per (000) Exposed

198

Total Sales Volume Lift Index

• 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

Note: 0 equals par in above chart.


The power of mobile advertising


0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oct-2015

Mil

lio

ns

Nu

mb

er

of

De

vic

e O

wn

ers

Source: comScore MobiLens and TabLens, U.S., 2000-2015

Continuing adoption of smartphones and tablets has led to a dramatic use of mobile

devices but growth rates beginning to slow, especially for tablets

194 MILLION78% PENETRATION

103 MILLION41% PENETRATION

Number of U.S. Smartphone and Tablet Owners

+10%

vs. YA

+8%

vs. YA

© comScore, Inc. Proprietary. 17Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S.

It’s not a zero sum game. Digital media usage time has been surging, predominantly

driven by smartphones, but desktop time has not declined

Growth in Digital Media Time Spent

519 497 528

409622

772117

178

168

Sep-2013 Sep-2014 Sep-2015

To

tal M

inu

tes

(B

illi

on

s)

1,044

1,297

1,469

+44%

+89%

+2%

+41%vs. 2013

Tablet

Smartphone

Desktop


55%

36%38%

55%

45%

64%

25%

35%

45%

55%

65%

75%

Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S.

Strong growth in mobile app usage has propelled apps to a majority of digital

engagement at 55%, while total mobile time is at 64%

Share of U.S. Digital Media Time Spent Shifts by Platform

Mobile

Mobile App

Desktop


50%

18%

10%

6%4% 3% 2% 2% 1% 1%

4%

59%

19%

9%

5%3% 2% 1% 1% 0% 0% 1%

1 2 3 4 5 6 7 8 9 10 11+

Sh

are

of T

ime

Sp

en

t o

n A

pp

s

Individuals’ Top Ranked App by Usage

Smartphone Tablet

Half of all time spent on smartphone apps occurs on the individual’s single most used

app, and it’s almost 85% on top four apps0% on tablets

Share of Time Spent on Apps Across Ranks

Source: comScore Custom Analytics, U.S., Age 18+, June 2015

© comScore, Inc. Proprietary. 20Left, Source: comScore BSL and Mobile BSL Benchmarks, U.S., 2015

Right, Source: comScore Media Metrix MP, July 2015

Mobile Ad Effectiveness Outpaces Desktop

Lifts From Mobile vs. Desktop Ads

0.6

1.2

1.3

1.4

1.4

1.3

1.1

3.2

2.5

10.2

3

4.3

4.3

3.2

Top-Of-MindAwareness

AidedAwareness

Ad Recall

Favorability

Likelihood toRecommend

PurchaseIntent

MessageAssociation

Desktop Norms

Mobile Norms

Mobile88%

Desktop12%

Mobile78%

Desktop22%

Mobile99%

Desktop1%

Share of Time Spent

on Desktop vs. Mobile


The accuracy of cookie-based targeting

leaves a lot to be desired. .


Cookie deletion can wreak havoc on measurement

30% of Internet users delete their cookies each

month at a rate of 5X per month.

Using only cookie-based measurement can…

• Overstate monthly unique visitors to a site by a

factor of 2.4X

• Overstate campaign reach by 3.5X and

understate frequency to the same degree.

Source: comScore Custom Analysis, June 2014


Cookies measure computers, not people

50% of consumers use multi-user

machines. Cookies can’t accurately

identify the user.

Cookie demo data become outdated

and inaccurate.

Source: comScore Custom Analysis, June 2014


Because of inaccuracies associated with cookies, demographic in-target rates are

low and vary significantly across industry verticals

*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

% In-Target: Overall* and by Select Advertiser / Product Category**Source: comScore vCE Benchmarks


Industry benchmarks can help media

buyers and sellers set campaign delivery

expectations.


Measurement of Viewability, Brand Safety and Invalid Traffic provides much-needed transparency in an increasingly opaque, programmatic world …. and substantially

improves campaign performance.


Viewability rates vary by campaign, publisher & placement type, but

need substantial improvement. Viewability lower on the exchanges.

% Ads Viewable by Placement Type

Source: comScore vCE, 2012-2013, Global.

Premium is defined by Ad Metrix as having an average CPM above USD $5.00 and an average monthly ad revenue of $100,000.

Premium is defined as impressions run directly on a property, media title, channel, sub-

channel, group or sub-group per comScore Media Metrix definitions. Non-Premium is defined

as impressions run indirectly via an Exchange


% Invalid Traffic by Placement Type

Invalid (non-human) traffic varies by type of site and is much lower on premium

sites but higher on the programmatic exchanges and for video

2.6%

8.2%

Premium Sites Non-Premium Sites

All Traffic Video Traffic

2.5%

23.0%

Premium Sites Non-Premium Sites


The Importance of Viewability: sales lift increases with improved viewability – and

the effects do not appear to be linear

Impact of Viewability on Sales Lift


As media consumption fragments, audience

measurement and media planning must adopt

a unified Cross-Platform view of the consumer.


Cross-Platform

Measurement

Is All About

THIS

Live TV

DVR

Desktop

Smartphone

Tablet

OTT

TV VOD

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 31

De-Duplication Reach Expansion


comScore cross-platform data shows that digital significantly

increases the unduplicated daily reach of ESPN TV by 21%

To take advantage of

ESPN’s TV/Digital

reach, an advertiser

needs to place

messages across all

platforms

25.0

5.0

1.2

Men 18+31 million total Reach

ESPN Daily Reach Build (Millions)

Added Reach-PC

Added Reach-Mobile

TV

Source: comScore Project Blueprint January 2015


Parks & Recreation Finale: Millennials show much greater

Time Shifted Viewing (TSV) and Digital consumption

Source: comScore Xmedia, February 2015

All Persons P18-34

Digital Only

Live + 7

Live + SD

Live

+21%

+3%+24%

+35%

+8%

+43%

Parks & Recreation Incremental Audience from TSV and Digital


Hulu’s audience grows by 95% when measuring mobile,

OTT and co-viewing on top of desktop

Source: comScore Hulu Total Audience Report, March 2015

0

5

10

15

20

25

30

Desktop Plus Mobile Plus OTT TV Plus Co-Viewing

Total Audience

Un

iqu

e V

iew

ers

(M

M)

13.2

6.3

4.51.8

25.8 MM

12.6 MM incremental unique viewers, or nearly half of Hulu’s Total Audience

% Share ofVideos

OTTTV

54%

Desktop34%

Mobile12%


“We have to get better at cross-platform measurement. Better at

deduplication. We need to understand how much reach we obtain on

a campaign across devices.

With the availability of cross-platform data that allows improved

media planning, I believe ad spending will increase across all

platforms.”

Irwin Gotlieb

Chairman, GroupM

comScore Client Summit, Sept 2015

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 36

Cross-Platform Campaign Effectiveness

Outpaces Single-Platform Approach


Cross-Platform Data Allows MEDIA-PLANNING EFFICIENCY

* Effective Reach is defined as 3+ impressions delivered

Media Plan GRPs Cost Total Reach Effective Reach*

TV Only 1,000 $10,000 85.1% 67.8%

TV + Digital Combination

TV (90%) 900 $9,000 83.7% 65.8%

Digital (10%) 500 $1,000 63.8% 44.0%

TV + Digital 1,400 $10,000 90.2% 83.7%

TV Only vs.

90% TV/10% Digital400 $0 5.1% 15.9%

Impact of a 90/10 TV/Digital Budget Allocation


A cross platform plan that includes TV & digital can be expected to generate a higher ROI


Sales lift per media dollar spent varies according to

brand, target segment, creative, platform and media

plan … putting increased importance on accurate

audience and attribution measurement

A general conclusion ….


Digital Marketing: Five Key Lessons

Forget the Click

Measure attitudinal and brand-related behavioral changes instead

Drop last-click attribution

Display advertising overlaid on search produces synergy and increases sales lift

Mobile advertising can be even more effective than desktop

Less clutter and lower funnel impact

Targeting, Viewability, Brand Safety & Invalid Traffic need to be monitored

Demand audience guarantees

Cross-Platform media plans offer great promise

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

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Lessons learned in a digital marketing world