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What Advertisers Think™
The More You KnowThe Stronger Your BrandThe More You’ll Sell™
The State of Advertising Measurement Report
August 2018
The State of Advertising
Measurement
Advertiser Perceptions by the Numbers
2
YEARS
16of proprietary,
historical data about “what advertisers think”
STUDIES
65conducted per year:
syndicated & custom,quantitative &
qualitative,U.S. & Global
COMPANIES
700continuously
measured across digital, television,
radio, print, agencies and
ad tech
PRESENTATIONS
300delivered per year,
sparking active dialogues about key issues in the
marketplace
CLIENTS
85ranging from
traditional media to emerging ad tech
The State of Advertising
Measurement
Our Clients
Partial list 3
The State of Advertising
Measurement
Today’s Hosts
4
Justin FrommVice President,
Business IntelligenceAdvertiser Perceptions
Stuart SchneidermanVice President,
Business IntelligenceAdvertiser Perceptions
Frank PapsadoreExecutive Vice President,
MarketingAdvertiser Perceptions
Howard ShimmelPresident
Janus Strategy & Insights
The State of Advertising
Measurement
5
Methodology and Respondent Profile
FieldedApril2018
49%Marketer
51%Agency
45%VP+
36%Director/
Supervisor
19%Mgr./Buyer/
Planner
Sample: Marketer and Agency contacts from The Advertiser Perceptions Media Decision Maker Database
Qualification: Measure advertising in past 12 months/ involved in measurement decision-making
303interviews conducted
RANGING IN TITLE:
SENIOR MID-LEVEL JUNIOR
WITH ANNUAL AD BUDGETS:
54%46%$30
MILLION+$5-30MILLION
The State of Advertising
Measurement
6
Measurement in the News – Two Steps Forward, One Step Back
The State of Advertising
Measurement
7
Measurement is table stakes for the ad industry. Advertiser Perceptions is among the first to quantify advertisers' attitudes about this critical topic with The State of Advertising Measurement Report. Among our findings:
☞ Measurement issues dominate advertisers' biggest challenges
☞ Measurement has multiple shortcomings – from an inability to measure across screens holistically, to identifying where to attribute success to an over-reliance on cookies
☞ Accuracy – getting to the true value - is the one thing many advertisers want to solve for
☞ Quality measurement impacts how many ad dollars are spent and where
☞ While advertisers don’t put all the blame on measurement providers, they are very open to doing business with new (to them) measurement companies
Overview
Identifying the Challenges
The State of Advertising
Measurement
When advertisers specify pain points, measurement issues dominate
9
Biggest Issues Facing Advertisers
1. Determining ROI and ROAS2. Ad fraud3. Inaccurate measurement4. Ad viewability5. Incomplete cross-media measurement6. Poor/inaccurate targeting
7. Ad adjacency to unsafe content8. Google and Facebook's duopoly9. Staying ahead of the next big consumer trend10. Keeping up with the latest advances/ad technologies11. Ad adjacency to low quality content12. Lack of transparency into inventory supply13. Unlocking value from data sources
The State of Advertising
Measurement
3-in-5 advertisers believemeasurement accuracy,
usefulness and actionability has declined/stayed the same
in the past 12 months
11
Only 11% of advertisersare extremely satisfied with the current state of measurement
Industry sentiment for measurement is low
The State of Advertising
Measurement
12
Why is measurement critical? Because if we can't measure it, we can't monetize it
87% hold back spending due
to poor measurement
67% hold back adopting new media
formats due to poor measurement
The State of Advertising
Measurement
31%
23%
19%
15%
10%
Viewability guarantee
Audience demo guarantee
Sales & ROAS guarantee
Ad Completion guarantee
Brand lift guarantee
Importance of Performance GuaranteesRank 1
37%
35%
31%
21%
18%
Viewability guarantee
Audience demo guarantee
Ad Completion guarantee
Sales & ROAS guarantee
Brand lift guarantee
13
One way to monetize inventory is to guarantee performance –and quality measurement is necessary to execute guarantees
Percentage of Ad Campaigns Including Performance Guarantees
Average Percent
The State of Advertising
Measurement
47%
42%
36%
34%
33%
28%
21%
15%
14%
Audience Measurement
Viewability
Optimization
Brand Safety
Conversion Tracking (click-thru,download, purchase, etc.)
Media Mix Modeling
Survey-based Ad EffectivenessResearch
Location/Visit-based attribution
Multi-Touch Attribution Modeling
14
50%
43%
35%
29%
26%
25%
21%
19%
17%
Conversion Tracking (click-thru,download, purchase, etc.)
Audience Measurement
Optimization
Viewability
Survey-based Ad EffectivenessResearch
Media Mix Modeling
Multi-Touch Attribution Modeling
Location/Visit-based attribution
Brand Safety
Most Valuable Types of Measurement When Evaluating…
Media Placements (pre-sale) Campaign Performance (post-sale)
First- and third-party measurement have significant pre-and post-campaign roles
The State of Advertising
Measurement
15
Top Measurement Challenges
The biggest challenges around measurement – too incomplete, conflicting, inflated and artificial
1. Inability to measure cross-platform media buys holistically2. Conflicting results from different sources3. Too reliant on cookie-based technology4. Overestimation of performance metrics5. Insufficient attribution for every media type
6. Complexity of integrating data sources7. Glitches in reporting technology/algorithms8. Lack of industry consensus on which tools to use9. Results are too slow to take action on10. Lack of 3rd party accreditation11. Too many black box solutions12. Incomplete coverage underestimates media consumption13. Too reliant on panel data
The State of Advertising
Measurement
17
If advertisers could improve one thing about measurement...(in their own words)
The State of Advertising
Measurement
26%
18%
18%
11%
10%
9%
8%
Measurement providers
Ad tech companies
Media companies/brands
Media Agencies
Industry Associations (IAB, ARF,TVB, etc.)
Brand-side marketers
Media Rating Council (MRC)
26%
15%
14%
13%
11%
11%
10%
Measurement providers
Media companies/brands
Media Rating Council (MRC)
Ad tech companies
Media Agencies
Industry Associations (IAB, ARF,TVB, etc.)
Brand-side marketers
18
Who Is Most Accountable for Poor/Inadequate Measurement
Rank #1
Measurement companies are not held solely responsible for the state of measurement, nor expected to solve this alone
Who Is Most Responsible for Leading The Way Towards Improving Measurement
Rank #1
The Measurement Provider Landscape
The State of Advertising
Measurement
42%
36%
35%
33%
33%
27%
26%
23%
22%
18%
Quality of deliverable
Actionable recommendations/insights
Cost effectiveness
Cross-device measurement
Reputation of company
Easy to use/integrate
Personalized/high quality support
Innovative features or capabilities
Case studies
Previous experience working with the provider
20
Importance of Attributes When Selecting Advertising Measurement ProvidersRated Extremely Important
Quality deliverables, actionability and cost matter most when choosing measurement providers – past experience much less a factor
The State of Advertising
Measurement
Quality of deliverable
Actionable recommendations/insights
Cost effectiveness
Cross-device measurement
Reputation of company
Easy to use/integrate
Personalized/high quality support
Innovative features or capabilities
Case studies
Previous experience working with the provider
21
Companies Considered The Best at [INSERT ATTRIBUTE]“Top Mentions”
When asked to name a company to match important attributes, most are unsure
43%
44%
49%
48%
36%
48%
46%
47%
47%
40%
21%
20%
19%
20%
30%
19%
17%
22%
21%
26%
7%
9%
9%
7%
10%
8%
9%
8%
10%
8%
5%
4%
8%
5%
3%
3%
4%
4%
2%
5%
Unsure Nielsen Google ComScore
Taking a Closer Look IntoCross Platform Measurement
The State of Advertising
Measurement
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Whether Currently Running Ad Campaigns Across Platforms, Screens or Devices
About three-quarters of advertisers run cross-media campaigns –but could this be higher with better measurement?
Yes71%
No29%
Agency 77%
Marketer 66%
The State of Advertising
Measurement
Cross-platform measurement: where we are is not where we need to be
24
MOBILE
Rating Current Measurement Offerings(listed in order of importance)
DESKTOP VIDEO
MOBILE VIDEO
STB/VOD
OTT/CONNECTED TV
16%
14%
12%
14%
12%
60%
44%
45%
36%
37%
23%
33%
33%
40%
42%
1%
9%
10%
10%
9%
excellent good fair poor
DESKTOP
TV
TV
The State of Advertising
Measurement
8%
21%
32%
22%
14%
4%
NeverMore than 3years from now
Within the next3 years
Within the next2 years
Within thenext year
Already in place
26
Length of Time for TV and Digital Video to be Measured by the Same Performance Metrics
A majority think TV and digital video will have the same KPIs by 2022
2019 20212020 2022
Takeaways
The State of Advertising
Measurement
5 Key Takeaways
28
The measurement industry may best be described by the adage "two steps forward, one step back." At the same time there are measurement advances, the industry is undermined by concerns over accuracy and transparency
Advertisers admit these concerns can impact where dollars go and how much is spent. Newer media (e.g., OTT, ATV, et al) may be most impacted
Cross-screen and cross-platform measurement is also a significant pain point for advertisers, and being able to attribute what drives success is not there
Where do we go from here? More is needed from measurement companies – more innovation, more partnering with clients to experiment and more transparency
But the marketplace believes measurement companies are not alone in this – industry leaders like the MRC, CIMM, IAB et al have a role, as does ad tech and the sell-side to take two steps and more forward
1.
2.
3.
4.
5.
The State of Advertising
Measurement
32
Currently Available Reports• Advertiser Intelligence Report
• Digital Campaign Management Report
• Programmatic Intelligence Report – DMP, SSP, DSP
• The Ad Measurement Report
• The Upfront / NewFront Report
• The Mobile Advertising Report
• The Native and Branded Content Report
• The Video Advertising Report
Plus…
• A Variety of Proprietary Advertiser Insights and Events
What Advertisers Think™
The More You KnowThe Stronger Your BrandThe More You’ll Sell™
THANK YOU!Justin Fromm
Stuart [email protected]
Frank [email protected]
Twitter.com/adperceptions
Linkedin.com/company/advertiser-perceptions
AdvertiserPerceptions.comInfo@AdvertiserPerceptions.com212-626-6683
