eMarketer Webinar: Digital Media Scorecard—How Canadian Marketers Rate the Effectiveness of Digital Ad Formats and Channels

© 2015 eMarketer Inc.

Canada Digital Advertising

Scorecard

Paul Briggs

Analyst, Canada

Twitter: @briggsrp

May 20, 2015


Canada Ad Spending Reports


Today’s Agenda

Digital Ad Spending in Canada Primer

Tracking Digital Advertiser Sentiment

Scorecard Results

– Search (Desktop and Mobile)

– Display (Desktop and Mobile)

– Social Media

– Video

– Programmatic


Scorecard Methodology

eMarketer worked with 18 brands and agencies in

Canada between December 2014 and March 2015

Rated the following ad formats/channels: online

display, search, digital video, paid social media,

mobile search and mobile display, programmatic

A to F grading for each format/channel for each of the

following marketing objectives/tactics: engagement,

lead generation, brand awareness, website traffic,

targeting, return on investment and sales/transactions


Before we get started,

some definitions:

Ad Format/Channel: The major digital media through which

advertisers reach consumers

– e.g., online display, mobile search

Ad Objective: The expected outcome of ad investment

– e.g., brand awareness, lead generation

Ad Category: Scorecard metric that combines

format/channel with objective/tactic

– e.g., social media targeting, search ROI


Sizing Up Canada’s Digital Advertising Market

C$4.58 billion in 2015

15% over 2014

34.3% of all ad spending


Digital will make

up 43.2% of daily

media time in

2015

Up 66% since 2011,

a CAGR of 13.4%


In other words, digital and mobile ad spending

doesn’t align with the amount of time spent by

consumers

Digital will make up 34.3% of total ad spending but time

spent will be far higher, at 43.2%

Mobile will account for 22.6% of total time spent with

media in 2015, but only 11.7% of spending

Why the gap?


Overall Results


Scorecard:

Format/Channel

Rankings

1. Search

2. Social Media

3. Mobile Search

4. Digital Video

5. Online Display

6. Mobile Display


Plotting Advertising Sentiment

Maturity

Mobile Display

Scorecard

Rating

Search

Online Display

Paid Social

Mobile Search

Digital Video


Top 10 Digital Ad Categories

1. Social media—targeting

2. Search—ROI

3. Search—website traffic

4. Mobile search—ROI

5. Search—

sales/transactions

6. Search—lead generation

7. Programmatic—

targeting

8. Video—engagement

9. Video—brand awareness

10.Mobile search targeting


Bottom 10 Digital Ad Categories

1. Mobile Display—

engagement

2. Mobile Display—

sales/transactions

3. Online Display—

sales/transactions

4. Online Display—ROI

5. Mobile Display—lead

generation

6. Mobile Display—website

traffic

7. Online Display—lead

generation

8. Online Display—

engagement

9. Mobile Display—ROI

10.Search—brand

awareness


The Scorecards


Search

Average Score: B

Rated best of

the digital

advertising

formats, a

reflection of

its reliability

and

measurability


Search will

account for

54% of digital

ad spending in

2015, worth

almost

$C2.5 billion


Search Scorecard


Search delivers a “qualified intention”

“What we love about search is it’s a

qualified intention already. People are

actively seeking a solution that we

can provide for them, and knowing

someone’s state of mind really helps

us determine what the best piece of

content would be for them.”

—David Alexander, manager of integrated

marketing at Maple Leaf Foods


Search is predictable from a cost perspective

“Search is very predictable, very cost-

per-response driven. You know what

you’re going to spend, you can control

your spend, you can control your cost

per lead based on pay per click.”

—Adrian Capobianco, president of Proximity

Canada

http://sharepoint.emarketer.com/sites/interviews/Photos Originals/Song_Ethan.jpg



Social Media

Average Score: B

New ad

products from

Facebook and

Twitter have

increased

advertiser

perceptions of

paid social


Social

network ad

spending will

grow 29.8% in

2015, and

represent

12.3% of total

digital ad

spending


Social Media Scorecard


Social Media targeting is improving rapidly

“Targeting is just so robust, Facebook

especially. Twitter is coming along.

Other platforms are coming along.

Consumers give them so much

information every day and the

analytics make it so easy to target the

right people and really get a good

ROI.”

—Gary Edgar, managing director at

Ruckus Digital


But paid promotion in social media can be risky

“Most people engage with brands on

social around information and

customer care and support. I think

they view the social platform as a kind

of negative disruption when you try to

engage from a brand standpoint. So

you have to be very, very cautious on

how to use social, especially paid

social.”

—Terence Donnelly, CMO at MDC Partners


Mobile Search

Average Score: B

As a derivative

of desktop

search, mobile

search also

rates highly,

even though it’s

a newer format


Search will

represent

more than

half of total

mobile ad

spending in

2015


Mobile Search Scorecard


Mobile search meets consumers far down their

path to purchase

“Mobile search is a very powerful way to

drive sales. We understand their context

when using this tactic.”

—Sandy Fleischer, managing partner at

Pound & Grain




The utility of mobile search is its strength

“On mobile search you’re looking for

something very quickly, like directions

or location. But you’re probably not

going to do mobile search to look for

a brand and do a lot of your

shopping.”

—Naveed Ahmad, CEO of Addictive Mobility




Video

Average Score: B-

Video scores

best for

engaging

audiences and

impacting

brand

awareness


Video’s

hypergrowth

period is over,

but strong

spending

gains will

continue

through 2018


Digital Video Scorecard


Video is ‘king’ for engagement and storytelling

“I think video is the best method for

actually getting engagement off your

site for the longest amount of time. If

you have high-quality content, you

can capture someone’s attention for

up to a minute or more.”

—David Alexander, manager of integrated

marketing at Maple Leaf Foods


Online Display

Average Score: C

Banner

blindness

continues to be

an issue for

advertisers, as

evidenced by

poor activation

scores


Display will

account for

38% of digital

ad spending in

2015


Online Display Scorecard


Context is key for online display

“Display is less effective because

we’re not taking advantage of placing

ads in the right context, we’re not

using ad formats that break through,

and those ads are not relevant to the

consumers that are looking at them.

Agencies and advertisers are so

focused on price that they may have

downgraded the value of context.”

—Veronica Holmes, president of digital at

ZenithOptimedia


Mobile Display

Average Score: C-

Small screens

present a major

challenge for

display ads,

which create

distractions in

users’ mobile

experience


Mobile display

rivals mobile

search in ad

spending,

despite being

rated much

more poorly


Mobile Display Scorecard


A rethink is required on mobile display

“In our experience, people who click

on mobile display do so by mistake.

There is no better example of trying to

force an old medium paradigm onto a

new medium.”

—Sandy Fleischer, managing partner at

Pound & Grain




In-app mobile display provides better clarity on

legitimate impression delivery

“With mobile, particularly in-app

advertising, you know pretty much the

sites or the apps that you’re buying

on. So bot traffic is significantly

reduced. So you have a lot less

wasted impressions and viewability is

not much of an issue when it comes

to in-app advertising.”

—Naveed Ahmad, CEO of Addictive Mobility




Programmatic

Average Score: B-

Its importance

continues to

rise, but

programmatic

is limited by

persistent

transparency

issues in

execution

Source: pubinteractive.ca


Programmatic Ad Spending Forecasts


Programmatic Scorecard


Programmatic’s myriad ‘levers to pull’ give

advertisers a lot of flexibility

“[With programmatic] there is lots of

potential for optimization, real-time

changes, adjustments and different

data sets to be leveraged. There are

a lot of levers to pull and things that

we can change that drive good

performance.”

—Karel Wegert, vice president of digital

solutions at Media Experts




Conclusions

1. Search advertising got the highest grade among

digital ad formats. Desktop and mobile search’s predictability

gain the confidence of advertisers.2. Social media advertising is rapidly improving.

New ad products from Facebook and Twitter in particular have

enhanced targeting and ROI.

3. Mobile received mixed ratings. Mobile search was highly

regarded, while mobile display was scored low by most

respondents. 4. Display rated poorly for both online and mobile.

Banner blindness is a persistent issue for desktop advertising, but

the disruptive experience of mobile display ads is an even bigger

challenge.


How eMarketer creates its reports and forecasts

Analysis of

quantitative

data from a

broad spectrum

of sources

In-depth

interviews with

a variety of

industry experts


Highlights of 2015 Coverage

Mobile advertising in Canada

Programmatic advertising in Canada

Sports – the digital marketing opportunity

Canada ecommerce

Millennials and their media consumption habits

Time spent with media

Hundreds of proprietary eMarketer forecasts


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Q&A Session

You will receive an email tomorrow with a link to view

the deck and webinar recording.

To learn more: www.emarketer.com/products

800-405-0844 or [email protected]

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eMarketer Webinar: Digital Media Scorecard—How Canadian Marketers Rate the Effectiveness of Digital Ad Formats and Channels