comscore best practices for high impact online advertising (jul 10)
TRANSCRIPT
Best Practices for High Impact Online Advertising
July 27, 2010
2
Agenda
Review trends in online advertising formats
Present insights into consumer online shopping behavior
Editorial placement and user initiated ads’ fit within the online media mix
Introduce results of comprehensive In-Text brand & user experience study
Close & questions
3
comScore:
A granular 360° view of the online activities of 2 million global users
Designed to be representative of the total online population.
TRUSTe certified for information privacy & security.
4
Kontera:
In-Text Advertising Leader
Kontera Synapse Engine
15,000+ Vertical & Niche
85MM PV’s Analyzed/Day
140MM+ Monthly UU’s WW
PREMIUM BRANDSPREMIUM SITES(EXCLUSIVE IN-TEXT INVENTORY)
5
Kontera Aggregates Audiences by Detailed Topics of Interest
HIGHLYQUALIFIEDAUDIENCE
TOPICALAGGREGATION
6
Long Term Advertising Forecast
0
50
100
150
200
250
300
350
400
450
500
2009 2012
Television Newspapers Internet Magazines Radio OutdoorCinema
Source: ZenithOptimedia, December 2009
39.2%
23.3%
12.4%
10.3%
7.7%
6.6%
US$ MM
CAGR:
3.1%$438 B
40.2%
20.0%
16.2%
8.9%
7.4%
6.8%
$479 B
0
10
20
30
40
50
60
70
80
90
2009 2012Search Display + Rich Media
Classified Other
28.1 25.8
11.2
17.7
9.1
5.6
12.3
Source: IDC, November 2009
$ Bn
CAGR:
14.1%
$60.5 B
$89.9 B
30%
7%
13%
13%
09-12
CAGR
Global Advertising Expenditures By Medium Digital Marketing Forecasts - Global
7
Where do user-initiated ad formats like in-text fit in?
Awareness
Consideration
Choice / Action
• Display – Reach Buys
• Demo Targeted Display
• Video (premium & ad nets)
• Behaviorally Targeted Display
• Contextually Relevant Display
• Contextually Relevant Video
• Search
• Display – Performance
• Lead Gen
8
Where do user-initiated ad formats like in-text fit in?
Awareness
Consideration
Choice / Action
In-Text:
• Search/contextual-like targeting
• Display-like creative canvas
This study pointed out that in-text is effective for mid-funnel marketing objectives
9
SOURCE: IAB Internet Advertising Revenue Report, 2009 Full-Year Results,
AB & PricewaterhouseCoopers
Search continues to lead in revenue but display grew 4X faster in Q4
2009 driven by banners and video
Dollars
(Millions)
% of Total % Change vs.
YA
Search $2,900 47% +4%
Total Display
Related
$2,300 37% +15%
Banner Ads $1,400 23% +8%
Rich Media $441 7% +2%
Video $306 5% +48%
Sponsorship $110 2% +26%
Classifieds $594 9% -23%
Lead Generation $374 6% -14%
TOTAL ONLINE $6,300 100% +3%
ONLINE ADVERTISING SPENDING IN Q4 2009
10
Non-Clickers84%
Clickers16%
Non-Clickers68%
Clickers32%
July 2007 March 2009
Source: comScore, Inc. custom analysis
Total U.S. Online Population,
July 2007 & March 2009
In the U.S., half as many clickers on any ad in 2009 vs. 2007
11
Display advertising’s early mistake:
Click is the wrong metric for measuring ad effectiveness
Does this one person’s click effectively reflect
the branding impact of exposing the other 999
people to the same ad?
12
Hundreds of branding effectiveness studies have confirmed that
online advertising moves the needle
17%
25%
62%
13%
19%
21%
Unaided Awareness
Aided Awareness
Ad Awareness
Top of Mind Awareness
Favorability
Intent to Purchase
comScore Norms for Display Advertising
Source: comScore Ad Effx norms
13
27%
21%
11%
10%
8%
3%
2%
2%
2%
2%
Social Networking
Portals
Entertainment
News/Information
Sports
Online Gaming
Lifestyles
Business/Finance
Retail
Top Publisher CategoriesShare of Total U.S. Internet Display Ads
Source: comScore Ad Metrix, March 2010
The vast majority of display inventory isn’t contextually relevant –
targeting is increasingly important
14
Six in ten consumers: Internet is important when making buying
decisions; 56% of those say this has increased in the past year
Importance of the Internet in Making Purchasing Decisions
Q. In the past 3 months, how important
has the Internet become in providing
you with information to help you make
buying decisions?
Source: comScore Survey – April 2010
40%
16%
% of those who found the Internet important
Significantly Increased
Somewhat Increased59%
10%
31%
Slightly/very important
Slightly/very unimportant
Neither important nor unimportant
56%
Q. How has this changed versus a year ago? Source: comScore Survey – April 2010
Source: comScore survey, April 2010
15
Consumer loyalty to specific retailers and brands decreased over two
years, likelihood to shop online for deals and use coupons has risen
Source: comScore Surveys,
July 2008 & April 2010
Q. Please indicate how you are cutting your shopping expenses
July
2008
April
2010
% Chg(07/08 to 04/10)
Reducing gift spending 41% 57% +16%
Shopping at different retailers 20% 33% +13%
Shopping online for deals 24% 32% +8%
Signing up for retail point programs or customer loyalty
programs22% 29% +7%
Using coupons more often when making purchases 59% 64% +5%
Buying different brands (including generic brands) 52% 57% +5%
Shopping less frequently 68% 72% +4%
Shopping only when there are sales (i.e. one day sales) 40% 43% +3%
Shopping at secondhand stores, garage sales, etc. 30% 31% +1%
Buying in bulk at warehouse/discount retailers like Costco,
Sam`s Club, BJ`s etc.27% 28% +1%
Shopping at auction sites such as ebay.com 13% 13% 0%
Only shopping for basic necessities 66% 62% -4%
16
Consumers are turning to an increasingly fragmented set of sites for
product research
100
110
120
130
140
150
160
170
Source: comScore Media Metrix, June 2010
Blogs (+49% y/y)
Travel Info (+26% y/y)
Comp. Shopping (+24% y/y)
Coupons (+20% y/y)
Total Internet (+11% y/y)
17
Display ads successfully build sales – both online and offline
$994
$9,905
$1,263
$11,550
Online Off line
$ per 000 Exposed
Control Test
% Lif t: 27.1%
% Lif t: 16.6%
Source: ―How Online Advertising Works‖, comScore, 2009
18
Given these Trends in Online Ad Formats &
Consumer Online Shopping Behavior …
19
The Marketers’ Challenge:
How to Maximize Reach and Consumer Engagement
20
Three Main Objectives
1. Connect with the
Truly Qualified
2. Do this at Scale
across the Web
3. Deliver Impact,
without Noise
21
One approach…
To reach the consumer where & when they are engaged…
22
Within the editorial content
23
In-Text Delivers Editorial Placement and User Initiated Ads
TOPIC AGGREGATED
PAGEVIEWS
Wireless
Small Business
Internet Service
How to Promote Your BusinessThe new rules of marketing require you to strike an emotional
chord with your customers, and combine effective
communications tools with social-media platforms to get your
business from good to great.
Social media: a significant tool
Rand has observed that small businesses feel very empowered
when they start using it. Social media is also a cost savings that
has become a best business practice. While there used to be a
cost for experimentation, today the cost is getting closer and
closer to nonexistent.
Immediacy is another benefit on the online age. You can
always regroup. ―That’s the beauty of the digitalized message,‖
said Federico. ―If your customers are not excited by what you’re
telling them, go back to the drawing board.‖
PUBLISHERS HOW IT WORKSTOPICS ARE IDENTIFIEDBEST PHRASES ARE LINKEDMOST RELEVANT ADS ARE SELECTED
best business practice
24
Marrying the Science of Search with the Art of Display
Science Art
25
A Targeted Display and Consumer Engagement Platform
Video Freedom
Related ContentExpandable
at a news conference Tuesday..the 2010 Winter Olympics and
will become the new chair of
26
In-Content Placement & User Initiated Engagement Open a Realm
of Possibilities
Brands Are Placed In:
• The Center of Attention
• The Center of Interest
Reach is:
• Qualified
• Delivered at Scale
27
But Does it Work?
We tested Kontera In-Text Efficacy During a 3 month Period
Advertiser Branding Metrics:
– Brand and Product Awareness
– Brand and Product Perception & Consideration
– Brand and Product Purchase Intent
– Brand-Driven Consumer Intent and Behavior
End User Experience Factors:
– Page Clutter
– Ad Relevancy to Page Content
– Intrusiveness of Ad
– In-Text Publisher Site Trust
Brand Case Study Results
29
Client — Global CPG Brand
Objective — Introduce New Product Offering
Target — Women
Challenge — Crowded Category in a
Competitive Marketplace
Product Differentiation — Innovative Technology
comScore Study of Kontera
30
Test Cell
Control Cell
Respondent
exposed to
advertising
Send survey
invite
Weight control
group to match test
group
Administer
Survey
Respondent
visits site
and exposed
to underlined
text prompts
No ad
exposure
Send survey
invite
Administer
Survey
Brand Study: Experimental Test and Control Design
Respondent
hovers on
underlined textRespondent
visits site
and exposed
to underlined
text prompts
The partnership with Kontera and
comScore in measuring Brand Lift
via Survey methodology allows for
the following efficiencies:
• Allows for less than 20MM
impressions to recruit Exposed
• Eliminates the need to allocate
bonus inventory to recruit Control
since comScore node can capture
straight from the page
Analyze
Differences
31
10
0 0
15
50%
Lift
Not Exposed to the
Advertising (Control)Exposed to the
Advertising (Test)(e.g.: organic search, offline
advertising, natural intent)(e.g.: viewed online
advertising)
Site Visitors
Site Visitors
5 incremental Site
visitors
What is Lift?
32
Top of Mind Awareness
73%LIFT
Unaided Awareness
69%LIFT
comScore Norm: 17% comScore Norm: 13%
Brand awareness results were 4-5x comScore norm
Kontera campaign Kontera campaign
Source: comScore Ad Effx study, May 2010
33
40%
LIFT
%
Has products that lead trends
In-text drove a 40% lift in a key brand perception
Kontera campaign
Source: comScore Ad Effx study, May 2010
34
comScore Norm: 21%
In-Text Results
42%Brand Purchase Intent
Brand Perceptions
LIFT
%
Source: comScore Ad Effx study, May 2010
35
Product Favorability
77%
Product Purchase Intent
68%LIFT LIFT
Favorability & purchase intent were also positively
impacted
Kontera campaign Kontera campaign
Source: comScore Ad Effx study, May 2010
36
Message Association
155%LIFT
Call to Action Slogan
Campaign Wide
Consumers remembered the campaign’s primary call to
action
37
Product Recall
49%Measured Lift of Brand’s
Established Product Line
The product’s sister brand also benefited from the
campaign
In-Text Halo Effect
LIFT
Kontera campaign
Source: comScore Ad Effx study, May 2010
38
Sprint Sites
view advertising campaign
direct to site
Site Visitation and Engagement
39
Product Website Visits
151%
Product Searches
400%LIFT
In-text also lifted search and site visitation for the brand
LIFT
Panel Activity 3 Weeks After First Exposure
Kontera campaign Kontera campaign
Source: comScore Ad Effx study, May 2010
40
―Becoming ―one‖ with the content and providing
organic value is what we believe is a big win in a
crowded marketplace. We are very pleased with
the results of this study.‖
David Cohen
EVP, US Director of Digital Communications
May 2010
Agency / Client Reaction
User Experience Study Results
42
Test Cell
Control Cell
Send survey
inviteAdminister
Survey
Respondent
visits site
and exposed
to underlined
text prompts
Send survey
invite
Administer
Survey
User Experience Study: Experiment Test and Control Design
Respondent
hovers on
underlined
text and is
exposed to
In-Text ad
N=57
Respondent
visits site
and exposed
to underlined
text prompts
Analyze
Differences
Respondent
does not hover
on underlined
text and is only
exposed to the
In-Text links
N=75**
140K invites =
10% of the target
who will hover;
.01% response
rate
1.3MM invites =
90% of the target
who does not hover;
.01% response rate
**Control sample was adjusted to be in
roughly the same proportion as Exposed
sample, and matched for demos where
necessary
Standard survey response rate
range is: .005% (banner) to 1%
(floating) of all recruitable units.
Kontera recruitment is within
range, given nuance in hover,
etc.
43
In-Text is a Cleaner, Less Cluttering Ad Format
0%
10%
20%
30%
40%
50%
60%
70%
Interstitial Video Rectangle Banner Kontera In-Text
Google Text
“This Ad Format Clutters the Page”(Percent of Consumers who Highly Agree)
44
In-Text is in the Middle in Terms of Intrusiveness
0%
10%
20%
30%
40%
50%
60%
70%
Interstitial Video Rectangle Kontera In-Text
Banner Google Text
“This Ad Format is Intrusive”(Percent of Consumers who Highly Agree)
45
In-Text Viewed as More Relevant to Page’s Content
0%
5%
10%
15%
20%
25%
Kontera In-Text
Google Text
Rectangle Interstitial Banner Video
“The Ad is Related to Content”(Percent of Consumers who Highly Agree)
46
Users Trust Sites with In-Text Ads More than Sites with
Google Text Ads or Banner Ads
0%
2%
4%
6%
8%
10%
12%
14%
16%
Video Kontera In-Text
Interstitial Banner Rectangle Google Text
“I Trust Websites Featuring this Ad Type”
(Percent of Consumers who Highly Agree with the statement)
0%
5%
10%
15%
20%
25%
30%
35%
40%
Interstitial Video Rectangle Kontera In-Text
Google Text Banner
“I Trust Websites Featuring this Ad Type”
(Percent of Consumers who Highly Disagree with the statement)
47
Kontera Delivers on Every Step of the Purchase Funnel
Thank You!
Graham Mudd
Twitter: @grahammudd
Ammiel Kamon