Best Practices for High Impact Online Advertising - July 2010

8/7/2019 Best Practices for High Impact Online Advertising - July 2010

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Best Practices for High Impact Online Advertising

July 27, 2010


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Agenda

Review trends in online advertising formats

Present insights into consumer online shopping behavior

Introduce results of comprehensive In-Text brand & user experience study

Close & questions


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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.


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Kontera:In-Text Advertising Leader

Kontera Synapse Engine

15,000+ Vertical & Niche

85MM

140MM+

PREMIUM BRANDSPREMIUM SITES

(EXCLUSIVE IN-TEXT INVENTORY)
http://www.businessinsider.com/http://www.families.com/http://www.cardomain.com/


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Kontera Aggregates Audiences by Detailed Topics of Interest

HIGHLYQUALIFIED

AUDIENCE

TOPICAL

AGGREGATION
http://www.families.com/http://www.cardomain.com/


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Long Term Advertising Forecast

050

100

150

200

250

300

350

400

450

500

2009 2012

Television Newspapers InternetMagazines 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%

09-12CAGR

Global Advertising Expenditures By Medium Digital Marketing Forecasts - Global


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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


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SOURCE: IAB Internet Advertising Revenue Report, 2009 Full-Year Results,

AB & PricewaterhouseCoopers

Search continues to lead in revenue but display grew 4X faster in Q42009 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


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Non-

Clickers84%

Clickers16%

Non-

Clickers

68%

Clickers

32%

July 2007 March 2009

Source: comScore, Inc. custom analysisTotal U.S. Online Population,

July 2007 & March 2009

In the U.S., half as many clickers on any ad in 2009 vs. 2007


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Click is the wrong metric for measuring ad effectiveness

the branding impact of exposing the other 999people to the same ad?


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Hundreds of branding effectiveness studies have confirmed thatonline 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


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27%

21%

11%

10%

8%

3%

2%

2%

2%

2%

Social Networking

Portals

Entertainment

e-mail

News/Information

Sports

Online Gaming

Lifestyles

Business/Finance

Retail

Top Publisher Categories

Share of Total U.S. Internet Display Ads

Source: comScore Ad Metrix, March 2010

The vast majority of display inventory contextually relevant targeting is increasingly important


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Six in ten consumers: Internet is important when making buyingdecisions; 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 importanthas the Internet become in providing

you with information to help you makebuying 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


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Consumer loyalty to specific retailers and brands decreased over twoyears, 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

July2008

April2010

% 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 loyaltyprograms

22% 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%


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Consumers are turning to an increasingly fragmented set of sites forproduct 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)


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Display ads successfully build sales both online and offline

$994

$9,905

$1,263

$11,550

Online Off line

$ per 000 Exposed

Control Test

% Lift: 27.1%

% Lift: 16.6%


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Given these Trends in Online Ad Formats &


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How to Maximize Reach and Consumer Engagement


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Three Main Objectives

1. Connect with theTruly Qualified

2. Do this at Scaleacross the Web

3. Deliver Impact,

without Noise


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Within the editorial content


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In-Text Delivers Editorial Placement and User Initiated Ads

TOPIC AGGREGATEDPAGEVIEWS

Wireless

Small Business

Internet Service

How to Promote Your BusinessThe new rules of marketing require you to strike an emotionalchord with your customers, and combine effective

communications tools with social-media platforms to get yourbusiness from good to great.

Social media: a significant toolRand has observed that small businesses feel very empoweredwhen they start using it. Social media is also a cost savings thathas become a best business practice. While there used to be acost for experimentation, today the cost is getting closer andcloser to nonexistent.

Immediacy is another benefit on the online age. You can

PUBLISHERS HOW IT WORKSTOPICS ARE IDENTIFIEDBEST PHRASES ARE LINKEDMOST RELEVANT ADS ARE SELECTED

best business practice


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Marrying the Science of Search with the Art of Display

Science Art


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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


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In-Content Placement & User Initiated Engagement Open a Realmof Possibilities

Brands Are Placed In:

The Center of Attention

The Center of Interest

Reach is:

Qualified

Delivered at Scale


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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


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Brand Case Study Results


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Client Global CPG Brand

Objective Introduce New Product Offering

Target Women

Challenge Crowded Category in aCompetitive Marketplace

Product Differentiation Innovative Technology

comScore Study of Kontera


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Test Cell

Control Cell

Respondentexposed toadvertising

Send surveyinvite

Weight controlgroup to match test

group

AdministerSurvey

Respondentvisits site

and exposedto underlinedtext prompts

No adexposure

Send surveyinvite

AdministerSurvey

Brand Study: Experimental Test and Control Design

Respondenthovers on

underlined textRespondent

visits siteand exposedto underlinedtext prompts

The partnership with Kontera andcomScore in measuring Brand Liftvia Survey methodology allows forthe following efficiencies: Allows for less than 20MMimpressions to recruit Exposed Eliminates the need to allocatebonus inventory to recruit Control

since comScore node can capturestraight from the page

AnalyzeDifferences


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10

0 0

15

50%Lift

Not Exposed to theAdvertising (Control)

Exposed to theAdvertising (Test)

(e.g.: organic search, offlineadvertising, natural intent)

(e.g.: viewed onlineadvertising)

Site Visitors

Site Visitors

5 incremental Sitevisitors

What is Lift?


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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


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40%

LIFT

%

Has products that lead trends

In-text drove a 40% lift in a key brand perception

Kontera campaign



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comScore Norm: 21%

In-Text Results

42%Brand Purchase Intent

Brand Perceptions

LIFT

%


Favorability & purchase intent were also positively


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Product Favorability

77%

Product Purchase Intent

68%LIFT LIFT

Favorability & purchase intent were also positivelyimpacted




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Message Association

155%LIFT

Call to Action Slogan

Campaign Wide

action


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Product Recall

49%

Established Product Line

campaign

In-Text Halo Effect

LIFT

Kontera campaign



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Sprint Sites

view advertising campaign

direct to site

Site Visitation and Engagement


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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




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organic value is what we believe is a big win in acrowded marketplace. We are very pleased with

David Cohen

EVP, US Director of Digital Communications

May 2010

Agency / Client Reaction


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User Experience Study Results


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Test Cell

Control Cell

Send surveyinvite

AdministerSurvey

Respondentvisits site

and exposedto underlinedtext prompts

Send surveyinvite

AdministerSurvey

User Experience Study: Experiment Test and Control Design

Respondenthovers onunderlinedtext and isexposed toIn-Text ad

N=57

Respondent

visits siteand exposedto underlinedtext prompts

AnalyzeDifferences

Respondentdoes not hoveron underlined

text and is onlyexposed to the

In-Text linksN=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 inroughly the same proportion as Exposedsample, and matched for demos where

necessary

Standard survey response rate

range is: .005% (banner) to 1%(floating) of all recruitable units.Kontera recruitment is withinrange, given nuance in hover,

etc.


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In-Text is a Cleaner, Less Cluttering Ad Format

0%10%

20%

30%

40%

50%

60%

70%

Interstitial Video Rectangle Banner KonteraIn-Text

GoogleText

(Percent of Consumers who Highly Agree)


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In-

0%

5%

10%

15%

20%

25%

Kontera In-Text

GoogleText

Rectangle Interstitial Banner Video

(Percent of Consumers who Highly Agree)

Users Trust Sites with In-Text Ads More than Sites with


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Google Text Ads or Banner Ads

0%

2%

4%

6%

8%

10%

12%

14%

16%

Video Kontera In-Text

Interstitial Banner Rectangle Google Text

(Percent of Consumers who Highly Agree with the statement)

0%

5%

10%

15%

20%

25%

30%

35%

40%

Interstit ia l Video Rectangle Kontera In-Text

Google Text Banner

(Percent of Consumers who Highly Disagree with the statement)


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Kontera Delivers on Every Step of the Purchase Funnel


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Thank You!

Graham Mudd

[email protected]

Ammiel Kamon

[email protected]
mailto:[email protected]:[email protected]

Documents

Best Practices for High Impact Online Advertising - July 2010