STIMA Congress 2015: Stuart Wilkinson - Comscore

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It’s a Cross-Platform World

Insights Into Today’s Digital Consumer

Stuart Wilkinson, Head of Industry Relations, EMEA

comScore, Inc.

#LessonsLearned

@comScoreEMEA

© comScore, Inc. Proprietary. 2

comScore makes audiences & advertising more valuable


The major trends changing how digital media is planned,

valued and traded

What is my unduplicated

audience reach across

devices?

How many GRPs do I

gain when I integrate

TV with digital?

Should I trust

programmatic?

Can I validate my

advertising is working?

Am I reaching a human, not a bot?

How, when and where

are consumers engaging?


Our products suite integrates to fulfil many industry needs


comScore’s unparalleled data sources are the foundation

for our products, enabling precision and scale

1.6 Billion Demographic

Profiles

PARTNER

DEMO DATA

231 Million Consumers,

90% US HHs

PARTNER

SALES DATA

1.8 Trillion Global Digital

Interactions/Month

CENSUS

NETWORK

~2 Million Person

Global Panel

OPT-IN

PANEL

1 Million Domains

Participating

Web Visitation, Online Buying,

Digital Advertising, Demos,

Video Viewing,

Mobile Behavior

Gender, Age, HH

Income, etc. IRI, Data Logix,

Symphony Health,

etc.

6 Million

TV Set Top Boxes &

70,00 Person Panel Second-by Second Channel

Tuning

U.S. TV DATA

© comScore, Inc. Proprietary.

Panel

Census

comScore and big data Worldwide daily records, July ‘09 – October ‘14

Total records collected in October 2014

1,770,519,465,676 (1.77 Trillion)


= 1 million bytes

(1 spoonful of Sand)


= 1 billion bytes

(1 Patch of Sand – 23cm square by 31cm deep)


= 1 trillion bytes

(A Sandbox – 155cm square by 31cm deep)


= 1 quadrillion bytes

(A mile-long beach – 30.5m wide by 31cm deep)


comScore currently stores ‘25 beaches’… and growing

© comScore, Inc. Proprietary. 13 © comScore, Inc. Proprietary.

Five Advertising Lessons Learned in a Cross-Platform World

Forget the Click

Limitations of the Cookie

Importance of Targeting, Viewability & Invalid Traffic

Power of Mobile

Value of Cross-Platform Data


Online Advertising in Europe Growing Strongly

Source: IAB

€ 27.40

€ 30.70

2013 2014

+12%

2014 Total Online Advertising Spend in Europe (€bn)


Online Ad Spending in Europe Set to Overtake TV

Source: IAB for Online & IHS for All Other Media

€ 5.2

€ 7.8

€ 26.8

€ 30.7

€ 33.5

Radio

OOH

Print

Online

TV

Ad Spend in Europe in 2014 by Platform (€bn)


Search Remains the Largest Online Advertising Category in

Europe But Display is Growing Faster

Source: IAB

€ 14.80

€ 10.90

€ 4.90

Search Display Classified &Directories

+11% Y/Y

+16% Y/Y

+6% Y/Y

Online Advertising in Europe in 2014 By Category (€bn)

With Year / Year Growth Rates


Mobile and Video Advertising Growing Rapidly in Europe

Source: IAB

17.8%

15.5%

Mobile Video

Mobile and Video Share of Display Advertising in Europe in 2014

With Year-Over-Year Growth Rates

+73% Y/Y

+39% Y/Y


18 © comScore, Inc. Proprietary.

Clicks on ads are at best an incomplete –

and at worst a misleading – effectiveness metric.

Measure attitudinal and behavioral lifts instead.


Whither the Click? Only 1 to 3 clicks per one thousand impressions!

Today, very few people click on ads ….

Source: Google DoubleClick, February to April 2014 Click-through rates across static image, flash and rich media formats

0.14% 0.15% 0.32% 0.16% 0.15%



$-

$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

$

A negative pattern emerged between

Sales Lift per Household and Click

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

sales decrease)

R2 = -0.039

The regression analysis shows there is

no statistically significant relationship

between CTR and Sales

Click-Through Rate

comScore research has shown that clicks don’t reflect sales

impact

Sale

s L

ift/

HH

in

$


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



While superior to traditional media, the

accuracy of cookie-based targeting leaves a

lot to be desired.


comScore in-target benchmarks show low demographic

targeting accuracy


52%

France

49%

Italy

45%

Spain

41%

UK

Source: comScore vCE Benchmarks, Q2 2014.

The global vCE norms database comprises data from more than 200 billion impressions over the course of a 21-month rolling period.

% Ad Impressions Delivered to Correct Demographic


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.

© comScore, Inc. Proprietary. 26 26 © comScore, Inc. Proprietary.

An industry mandate: improving viewability

Improve reporting of ad exposure

Bolster confidence that ads delivered are actually viewable:

50% of pixels in-view for at least 1 sec for non-video ads

50% of pixels in-view for at least 2 secs for video ads (preliminary MRC)

“Making Measurement Make Sense”


European Benchmarks

% In-view: Country Overall

Source: comScore vCE Benchmarks, Q1 2015

ITALY SPAIN UK GERMANY FRANCE



In the U.S., viewability rates vary by campaign, publisher & placement type, but

need substantial improvement. Viewability lower on the exchanges.

% U.S. 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.

100

118

141

168

At least 50% At least 55% At least 65% At least 70%

Impact of Viewability on Index of Campaign Sales Lift


Accurate Digital Targeting With 100% Viewability Increases Sales Lift to Rival TV’s But

Occurs Faster Because More Impressions Can Be Delivered Against Target in a Given

Period of Time

Source: comScore/Dunnhumby for Digital, IRI/BehaviorScan for TV

3.8%

6.8%

8.0%

Non-TargetedDigital

Targeted Digital TV

Average In-Store Brand Sales Lift: TV vs. Digital

3 Mo. For Digital vs. 1 Yr. for TV

Because digital’s targeting

accuracy surpasses TV,

the Impact of Targeted

Digital with all ads being

viewable ultimately rivals

that of TV and occurs

faster



Mobile means Internet access

anywhere and at anytime.


0% 50% 100%

MULTI-PLATFORM MOBILE ONLY DESKTOP ONLY

97% (+22)

83% (+24)

75% (+9)

-

70% (+7)

74% (+6)

73% (+12)

51% (+21)

78% (+4)

76% (+6)

85% (+8)

Millennials (% mobile or multi-platform)

vs.

0% 50% 100%

USA

Canada

Australia

Brazil

France

Germany

Italy

Russian Federation

Spain

Taiwan

UK

75%

59%

66%

44%

63%

68%

61%

30%

74%

70%

77%

All Users (% mobile or multi-platform)

The global rise of the monthly ‘multi-platform majority’’D


432,816 402,152 420,399

Aug 2013 Aug 2014 Aug 2015

88,145 76,761

82,437

Aug 2013 Aug 2014 Aug 2015

53,751 49,030

51,802

Aug 2013 Aug 2014 Aug 2015

CANADA UK USA

Desktop minutes are not declining


432,816 402,152 420,399

Aug 2013 Aug 2014 Aug 2015

88,145 76,761

82,437

Aug 2013 Aug 2014 Aug 2015

53,751 49,030

51,802

Aug 2013 Aug 2014 Aug 2015

BROWSING

BROWSING BROWSING

APPS APPS

APPS 70%

of digital mins

63%

of digital mins 66%

of digital mins

70%

of digital mins

63%

of digital mins 66%

of digital mins

CANADA UK USA

Mobile, especially apps, now dominates usage time, but is

largely incremental to desktop use


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

*Source: comScore BSL and Mobile BSL

Benchmarks, U.S., 2015

Share of Time Spent on Desktop vs. Mobile**

Mobile 88%

Desktop 12%

Mobile 78%

Desktop 22%

**Source: comScore Media Metrix MP, July 2015

Mobile 99%

Desktop 1%

Mobile ad effectiveness outpaces desktop because of less

clutter and greater bottom-funnel impact



As media consumption fragments, audience and

campaign measurement 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


Percent of Time Spent

© comScore, Inc. Proprietary. © comScore, Inc. Proprietary. 40

#1 It’s Not a Zero-Sum Game.

Cross-Platform Usage Increases Opportunities

to Reach Consumers:

“New Markets in Time”


#2 De-Duplication Reach Expansion


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

comScore Cross-Platform data shows that Digital increases

the unduplicated daily reach of ESPN TV by 21%

© comScore, Inc. Proprietary. 44 Source: comScore Hulu Total Audience Report, March 2015

0

5

10

15

20

25

30

Desktop Plus Mobile Plus OTTTelevision

Plus Co-Viewing

Total Audience

Mo

nth

ly U

niq

ue V

iew

ers

(M

M)

13.2

6.3

4.5 1.8

25.8 MM

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

% Share ofVideos

OTT 54%

Desktop 34%

Mobile 12%

Hulu’s unique audience almost doubles when measuring

mobile, Over-The Top and co-viewing on top of desktop


#3 Cross-Platform Ad Effectiveness


Using a combination of TV and Digital Advertising lifts sales

more than using TV alone or Digital alone


A Cross-Platform Plan that Includes TV & Digital Can Be

Expected to Generate a Higher ROI


Key Takeaways for Increasing Digital Advertising Effectiveness

Forget the Click ; Measure Attitudinal or Behavioral Response

Accountability and Transparency Improve Campaign Impact :

• Improve Targeting Accuracy

• Increase Viewability

• Minimise Invalid Traffic

• Ensure Brand Safety

Mobile Ad Effectiveness Surpasses Desktop

In-Flight Campaign Optimization Proven to Increase ROI

Cross-Platform Data Enhances Media Plan, Promises to Increase Ad Spend and Improves ROI


“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

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

www.comscore.com @comScoreEMEA www.linkedin.com/company/comscore www.facebook.com/comscoreinc

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STIMA Congress 2015: Stuart Wilkinson - Comscore

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