Interact 2017 Keynote speech: Measuring the future by Gian Fulgoni, CEO & Co-Founder, comScore

© comScore, Inc. Proprietary.

#InteractIAB

MEASURINGFOR THE FUTUREHow to Apply Lessons Learned in Media Measurement to Advance the Digital Industry

Dr. Gian FulgoniCEO & Co-FoundercomScore, Inc.23 May 2017For info about the proprietary technology used in comScore products, refer to http://comscore.com/Patents

© comScore, Inc. Proprietary. 2


Digital is the most measurable medium in the world

...but it’s far from perfect

© comScore, Inc. Proprietary. 44© 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 4 clicks per one thousand impressions!

Today, very few people click on ads…

Source: Google DoubleClick, November 2016 to April 2017 Click-through rates across static image, flash and rich media formats

0.11% 0.16% 0.20% 0.22% 0.15%

5© comScore, Inc. Proprietary.


…and research says clicks don’t predict sales impact


A negative pattern exists between Sales Lift per Household and Click Through Rate (i.e., as CTR increases, sales decrease)

R2 = -0.039

A regression analysis shows there is no statistically significant relationship between CTR and Sales

$-

$0.100

$0.200

$0.300

$0.400

$0.500

$0.600

0.00% 0.20% 0.40% 0.60% 0.80%

Sales Lift/HH in $

CTR

Sales Lift/HH in $

Click-through Rate


Self-reported online survey data that requires consumer recall is misleading for cross-channel and

cross-platform measurement.


Source: comScore behavioral research, via passive observation

Major source of the problem: online survey panelists are heavier-than-average Internet users by a factor of 2 to 3

0

50

100

150

200

250

300

350

Time spent online Pages downloaded

Searches conducted

Dollars spent online

Made online credit card application

Paid bills online

Average User Survey Panelist

AVERAGE USER

Index


5.0

3.7

Online Survey Behavioral

4.35.4

Online Survey Behavioral

35% OverstatementHours Per Day Online

20% UnderstatementHours Per Day Watching TV

The reality is that online surveys overstate time spent online by 35% – and understate TV time by 20%


* NRF Survey

Online surveys dramatically overstate e-commerce spend.

E-commerce as % of Discretionary Consumer Spending

E-commerce as % of Discretionary Consumer Spending

U.S. DEPARTMENT OF COMMERCE

ONLINE SURVEY*

42%

14%

** Excludes autos, gas and food / bev


The accuracy of cookie-based targeting leaves

a lot to be desired…


comScore in-target benchmarks show low demographic targeting accuracy


39%France

47%Italy

42%Spain

44%UK

Source: comScore vCE Benchmarks, Q1 2017.

% Digital Ad Impressions Delivered to Correct Demographic


In-target accuracy: why 100% requires audience guarantees and make-goods


Some targeting infers demography based on content consumption

Nearly 50% of computers are shared, so cookies don’t know who is using the computer at any given point in time

Not all registration data are accurate

Demographic data become outdated


Industry benchmarks can help media buyers and sellers set campaign delivery

expectations.


Measurement of Viewability, Brand Safety and Non-Human Traffic provides much-needed transparency in an

increasingly opaque, programmatic world.

“Keeping that digital ad in view makes a real impression”


About a half of ads worldwide still don’t have the opportunity to be seen

DESKTOP DISPLAY VIEWABILITY RANGES FROM 48% - 55% ACROSS MARKETS

Source: comScore vCE Benchmarks, Global, Q1 2017

Australia48%

UK49%

Germany50%

France50%

Brazil53%

Spain54%

Italy54%

Mexico54%

Canada55%

US55%

© comScore, Inc. Proprietary. 16Source: comScore vCE Benchmarks, US, Q1 2017

Direct buys see higher viewability than programmatic

DESKTOP DISPLAY DESKTOP VIDEO

DIRECT

PROGRAMMATIC

DIRECT

PROGRAMMATIC

60%

54%

73%

51%

Q1 2017


High-price video ads attract the most IVT

6% IVTDESKTOP DISPLAY

10% IVTDESKTOP VIDEO

Q1 2017


Programmatic magnifies the IVT problem

DESKTOP DISPLAY DESKTOP VIDEO

6%4% DIRECT

PROGRAMMATIC 10%4% DIRECT

PROGRAMMATIC

Q1 2017


Digital media and measurement needs to continue to evolve


The industry is calling for more focus on IMPACT

“Viewability means opportunity to see [but it has] been confused with fully viewed, was recalled, was effective, made an impact, paid attention, delivered ROI.” – Marc Pritchard, Chief Brand Officer, P&G

“Not every marketer is obsessed with how much time consumers spend with their digital ads or how many pixels they see….They just want their ads to work.”

“Although viewability standards can increase the overall quality of online ads, viewability by itself is not an adequate measurement of ad quality.”

“It seems like a total no-brainer: No one wants to pay for ads that can’t be seen. But viewability is just one factor in an effective campaign…viewability is a useful metric but doesn’t add up as a be-all end-all goal for marketers.”


As an industry, we must bring focus back to the advertising metrics that matter – and that means accepting viewability as a necessary but not sufficient – and increasing our attention on Unduplicated R/F, GRPs and Lift in Attitudes and Sales

It’s clear: Viewability alone is not enough.


Measuring for the future in a cross-platform world

• Measurement of unduplicated audiences across platforms at a granular level

© comScore, Inc. Proprietary. 23Source: comScore Xmedia, February 2015

Cross-platform deduplication in action: Millennials exhibited much greater Time Shifted Viewing (TSV) and Digital consumption for a Network TV Series Finale

All Persons P18-34

Digital Only

Live + 7

Live + SD

Live

+21%+3%

+24%

+35%

+8%+43%

Incremental Audience from TSV and Digital


“We have to get better at cross-platform measurement. Better at de-duplication. 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, including television.”

Irwin Gottlieb, Global Chairman, GroupM



• Measurement of unduplicated audiences across platforms at a granular level

• Effective frequency capping across platforms

1-2 3-9 10-20 21-50 51+

0.8%

33.3%

1.4%

11.0%

19.6%22.4%

75.4%

23.7%

2.8%9.6%

% PEOPLE

% IMPRESSIONS

MANY PEOPLE RECEIVE TOO FEW IMPRESSIONS

TOO MANY IMPRESSIONS WASTED ON

SMALL NUMBER OF PEOPLE

Frequency Distributions Are Not Optimal

IMPRESSIONS PER PERSON

50 EXPOSURES15-20 EXPOSURES

POINT LIFT (BRAND)

Contribution of Incremental Exposures Declines Quickly After 20 Exposures

IMPRESSIONS PER PERSON

INCREASING EFFECTIVENESS

MINIMALEFFECTIVENESS

DECLINING EFFECTIVENESS

Implications for Excessive Frequency

v Frequency caps from 20 to 50 are appropriate for most brands

v Exposures above those thresholds are, at best, wasted

v The marginal contribution of an incremental exposure declines quicklyand loses over 90% of its effectiveness even earlier

v The thresholds for wasteful or harmful effects are likely to be lower forinterruptive advertising such as online video ads or pop-up ads



• Measurement of unduplicated audiences across platforms


• Aligned metrics between TV and Digital Video• - Average minute TV audience vs. number of digital video views





• Aligned metrics between TV and Digital Video- Average Minute TV Audience vs. Number of Digital Video Views

• Correct measurement of reach on social media- De-duplicating across followers

§






• Un-duplicated measurement of reach on social media- De-duplicating across followers

• Measurement of cross-platform campaign effectiveness

© comScore, Inc. Proprietary. 32Source: comScore/dunnhumby for Digital, IRI/BehaviorScan for TV

3.8%

6.8%8.0%

???

Non-Targeted Digital Targeted Digital TV Targeted TV

The value of viewable and addressable puts digital on par with TV

Average In-Store Brand Sales Lift: TV vs. Digital3 Mo. For Digital vs. 1 Yr. for TV

Includes 100% viewable ads

Addressable Digital


$1.00

$1.19 $1.20

$1.60

TV TV + Print TV + Radio TV + Digital

Source: ARF

A cross platform plan that includes TV & digital can be expected to generate a higher ROI than TV alone

Investing in TV + Digital = +60% ROI






• Un-duplicated measurement of reach on social media- De-duplicating across followers

• Measurement of campaign effectiveness• Cooperation of the industry

© comScore, Inc. Proprietary.

#InteractIAB

THANK YOUGian Fulgoni

[email protected]

@gfulgoni

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

Marketing

Interact 2017 Keynote speech: Measuring the future by Gian Fulgoni, CEO & Co-Founder, comScore