Татьяна Хандурова comScore

Lessons Learned

Gregory DaleEVP International, comScore Inc

Measure what Matters for Online Advertising

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NASDAQ SCOR

Clients 1860+ worldwide

Employees 900+

Headquarters Reston, VA

Global Coverage170+ countries under measurement;43 markets reported

Local Presence 32 locations in 23 countries

comScore is a Global Leader in Measuring the Rapidly Evolving Digital World, Blanketing the Globe with a Local Presence

V1011

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Topics for Today

1. Worldwide Trends to Watch

2. The Rise of Digital Advertising

3. Lessons Learned for Optimising Ad Effectiveness

4. Key Take Aways

3 Worldwide Trends to Watch

SocialVideoMobile

5© comScore, Inc. Proprietary.

2008 2009 2010 2011

Time Spent on Key Categories OnlineWorldwide Hours per Month (Billions)

35

30

25

Nearly in 5 minutes online is spent on social networks today1

Source: comScore Media Metrix, April 2012Trendline: comScore Media Metrix, March 2007-October 2011

Social Networking

Search/Navigation

Retail

Communications (Email/IM)

Other Content

1 in 3 minutes online in Russia are

spent Social Networking

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Worldwide Video Engagement Increased 19 Percent in 7 Months Indicating a Shift from Short-Form to Long-Form Content

Source: comScore Video Metrix, Worldwide, Age 15+, Sep 2011 vs April 2012

51 billion minutes

spent watching

online videos

23.2 Hours per Viewer in Russia

+139% versus April 2011

Average Hours per Viewer

16.6

19.8

Worldwide Video ViewingSep-11 Apr-12

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The Rise of the Connected Consumer:New Devices are Changing How Consumers Access Content

Source: comScore Device Essentials, US, March 2012

Computer93.4%

Mobile4.8%

Tablet1.8%

Other0.1%

Share of Connected Device Traffic in RussiaSource: comScore Device Essentials, March 2012

Digital Advertising and Lessons Learned on how to deliver Results

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In Europe, richer formats and new platforms have resulted in brands investing more in display advertising

RussiaDisplay +25%

% Growth 2010 vs. 2009

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With continued investment in display, our lessons learned about online advertising are increasingly important

Cookies present a unique challenge for advertisers in the digital space

The click, although extremely popular, is an incomplete and often misleading metric

Accurate delivery of media plan is critical and challenging to measure correctly

With the right strategy, Display Advertising can be effective as TV at building engagement and delivering sales

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Branding advertisers on TV are accustomed to audience guarantees and expect the same in digital

Cookies Are Not People

Cookie Proliferation

Yet, accuracy of cookie-based digital plan delivery is problematic:

Cookie Deletion

X

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In 2007, comScore’s First Post-Buy Analysis Across 8 Digital US Campaigns Showed Execution Left a Lot to be Desired…

Source: comScore Inc, Custom Analysis

Percent of Ad Impressions for 8 Campaigns

In US But Not Target

Hit Target Frequency

>=5

Hit Target Frequency

<=4

Outside US0%

10%

20%

30%

40%

50%

60%

70%

61%

8%

19%12%

13© comScore, Inc. Proprietary.

Cookie-based demo targeting limits a campaign’s ability to selectively reach a targeted audience

Male40%

% C

om

po

sit

ion

of

Ex

po

se

d A

ud

ien

ce

Female 60%

40% of exposed consumers outside of planned gender target

14.4%

17.3%

25.3%

22.4%

20.6%

55+

Only 43% of females exposed to the campaign met the targeted age group

Only 25% of all exposed consumers met planned targeting criteria

45-54

35-44

25-34

15-24

Target for this health & well being product was females age 35-54

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Skewed ad server delivery causes wasted GRPs with overly saturated consumers

1 2 3 4 5 6 7 8 9 10+

48%

16%

8%5%

3% 3% 2% 2% 1%

13%

Exposures per Person

Overexposed: a majority of these

27 Exposures per Person!

Distribution of Exposed People by Frequency of Exposures

CPG Campaign• 4 Weeks• 43 GRPs• Reached ~ 8MM People• Average Frequency =

4.5

22%

64%

Source: comScore 2011

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Clickers represent a small and declining segment of internet users

• In Russia, 5% of all internet users account for 84% of all clicks

• Optimising against clicks means ignoring 9 of 10 internet users

Source: comScore, Inc. Custom Analysis; Russian data from Natural Born Clickers in Russia report, May 2011

July 2007 August 2010

68%

88%

Growth in U.S. Non-Clickers

Russian Non-Clickers

90% Non-Clickers

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Online Offline

$994

$9,905

$1,263

$11,550

Unexposed Exposed

Dollar Sales Lift Among Households Exposed to Online Advertising

% Lift: 17%

% Lift: 27%

Despite click rates of only 0.1%, comScore research has shown that display ads can lift retailer sales – both online and offline

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

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

Conclusions

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The Short-Term Offline Sales Lift from Digital Advertising Matches Longer-Term TV Impact

+8% +8%

comScore tests conducted over a three-month period; assumes 40% HH Internet reach

1: Digital display ads include more messages about price and promotion than TV ads, which tend to be strictly focused on brand building

2: More precise targeting of digital allows more impressions to be delivered against target

audience in a given period of time

TV Internet

Offline Sales Impact of Advertising for FMCG Brands: TV Versus Digital

BehaviorScan tests conducted over a one-year

period.

(BehaviorScan)

(comScore/dunnhumby)

Action Lift Case Study: Yandex and Automotive Brand

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AdEffx Action Lift™

Action Lift measures the immediate and latent impact of digital

advertising on consumers’ online behaviors, such as:

Site visitation

Site engagement

Trademark search

Provide a more reliable & actionable metric to advertisers which is more comparable to TV and does not depend on click-through

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Advertiser Site Visitation, Week 3

Source: comScore Action Lift

Week 1 after exposure

Weeks 1-2 after exposure

Weeks 1-3 after exposure

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

0.4%

1.1%1.7%

2.3%

3.8%

5.0%

% Reach of Auto Site

Control Group Test Group

5.0% of those exposed to the campaign visited the Automotive site at least once in the three weeks after first exposure to the campaign; compared to 1.7% of

those not exposed to the campaign

Test/Control Difference

Weeks 1-3

+199%

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Advertiser Site Engagement, Week 3

Source: comScore Action Lift

Control Group Test Group0

50

100

150

200

250

72.4

204.7

Average Pages @ Auto Site

Control Group Test Group0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

29.6

92.3

Average Minutes @ Auto Site

Exposed users consumed 183% more pages and spent

212% more time on the Automotive site

22© comScore, Inc. Proprietary.

Advertiser Search Term Usage, Week 3

Source: comScore Action Lift

Control Group Test Group0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.15%

0.21%

% Reach of Search Terms

Exposed users are

38% more likely to search for at least one of the defined set of

branded search terms

23© comScore, Inc. Proprietary.

Advertiser Conversion, Week 3

Source: comScore Action Lift

Exposed consumers were more likely to download brochure, visit car configurator site or request test drive

Test/Control Difference

Weeks 1-3

+148%

Week 1 after exposure

Weeks 1-2 after exposure

Weeks 1-3 after exposure

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

0.09%0.12%

0.16%0.15%

0.32%

0.40%% Reach of Conversion URL

Control Group Test Group

An Eye to the Future

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The great promise of the Internet has always been that it’s the ‘most measured and most accountable’ medium…

IMPRESSIONS Inflated Inflated

CLICK-THROUGHRATE Gamed Irrelevant

COOKIE REACH & FREQUENCY Not Important

Confounded by cookie-to-person relationship

PERSON-BASED REACH & FREQUENCY

Not ImportantDistorted by non-visible impressions

But 15 years later, the promise has frayed…

26© comScore, Inc. Proprietary.

The industry is discussing viewability

“Digital Action Group members are demanding greater transparency in the increasingly complex digital trading ecosystem.” -- Alex Tait, ISBA Digital Action Group Chairman (UK Advertisers)

Making Measurement Make Sense (3MS)

Auch die Standardisierung der Visibilitätsmessung ist für den Leistungsnachweis von zentraler Bedeutung und muss mit hoher Priorität weiter vorangetrieben werden. -- Susanne Wallraff, Head of Media DanoneThe standardisation of visibility is a key measure of performance and must be given the highest priority.

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vCE Charter Study:Major Branded Advertisers Came Together to Lead & Learn

Allstate

US18 campaigns

2 billion impressions 400,000 sites

EUROPE21 campaigns

1.3 billion impressions 240,000 sites

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vCE Charter Study: In-view Rates Need to Be Improved

Campaign In-view ad rates ranged from: US 55% to 93% EU 31% to 72%

US69%

AVERAGE64%

AVERAGE

EU

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The face of digital advertising is changing rapidly as consumers become more social, TV content continues to be moved online and new devices flood the market

Understanding the unique challenges of digital and adapting measurement principles can help unlock the power of digital advertising

− Know why cookie deletion matters− Closely monitor media plan delivery− Ensure targeting is accurate− Ignore the click, trust brand engagement metrics

Initial Action Lift results for major automotive advertisier are a great initial step towards validating digital advertising effectiveness in Russia, viewable impressions is the next global trend to watch

Conclusions

Thank youtkhandurova@comscore.com