Are you leaving ROI on the table?

Are You Leaving ROI on the Table?
Lessons Learned
Best Practices for Maximizing Campaign Results in Challenging Times

Evan Neufeld, Vice President, Advertising Effectiveness
May 2009

Agenda

– About Us …

The Current Environment
Implications for Measuring Digital Advertising Effectiveness
Benchmarking Success via Comprehensive Norms

© comScore, Inc. Proprietary and Confidential. 2

comScore Customer Knowledge Platform:
A 360°
View of 2 Million Global Internet Users

WEB VISITING & VIEWING DEMOGRAPHICS
• All Web Site/Page Click Stream • Self-reported and validated
• Content Viewed • Appended Segments (e.g. Claritas, Acxiom)
• Search Engine Queries • Individual & Household Level
• Keyword Used

ONLINE TRANSACTIONS SURVEYS
• All Secure Session Activity • E-mail or Contextual “Pops”
• Purchases and Subscriptions • Behavior-activated Surveys
• Price Paid, Shipping & Handling, • Observation of All Surveys Taken
Promotions Across All Suppliers
• Applications/Configurations

MARKETING STIMULI OFFLINE PURCHASING
• Linked using Name and Address
• Online Ads TV VIEWING • Client CRM Databases
• Referral Links • Link to Digital Set Top TV Data
using name and address • Retailer Loyalty Card Data
• IRI Scanner Panel Data

Designed to be representative of the online population
Projectable to the total US population
TRUSTe certified for information privacy & security


How It Works: Using a Test and Control Design

The randomized experimental design creates campaign exposed
(Test ad cell) and non-exposed groups(Control ad cell)

Both groups are invited and surveyed with
the same screeners and incentives via our
proprietary AdRecruit technology

Exposed to Ads
(Test Cell)

Not exposed to Campaign Ads
(Control)


Benefits of Real-World Test/Control + Panel: Observance of the
Campaign Live In-Market

comScore Panelists
A sub-set of the Test and
Control will naturally fall to
the comScore panel

This allows us to provide:
Behavioral metrics such as
Exposed to Ads
(Test Cell) lift in search and visitation
TotalLift™ Calibration
Inclusion of select Post – Buy
Metrics
Accurate demographics thru
elimination on sample bias
Not exposed to
Campaign Ads
(Control)

Brand Metrix ™ : Proof That Online Ads Work

Includes branding effects!

• Brand awareness and attitudes
• Brand purchase intent
• Advertising awareness and message recall

Includes behavioral metrics!

• % Lift in Site Visitation
• % Lift in Brand Search

Includes key campaign metrics!

• Reach and frequency,
• Gross rating points (GRPs)
• Demographics


comScore Brand Metrix ™ : Over 300 Ad Effectiveness Studies
Across Multiple Industries

Media Agencies Financial Retail Pharma CPG/Restaurant Travel Tele/Tech Auto


Agenda

About Us …
– The Current Environment



The Internet is Important to at Least 6 in 10 Consumers, with 50%
Citing an Increase Compared to a Year Ago

Importance of Internet
Source: comScore Survey, January 2009

Q: How important has the Internet become Q: How has this changed versus
in providing you with information to help a year ago?
you make buying decisions?

65%

50%
Very Important
Significantly Increased

Slightly Important
Somewhat Increased

Past 3 months Versus a year ago


Economic Hardship Leads to Dramatic Increase in
Financial/Economic-related Searches Across the Web

Number of Unique Searchers (MM) for Each Term: Dec. 2008 vs. YA
Source: comScore

Y/Y %
change +27% +58% +100% +83% +160% +157% +223%


2008 eCommerce Growth Substantially Lower Than Preceding Years

Online Consumer Dollar Sales Growth
Excluding Auctions, Autos and Managed Travel ($Billions)

Source: comScore
+7%

+17% $221
$200
+20%

+22% $171 +9%
+12%
+26% $143
+13%
+29% $117
+20%
$93
+26%
$72
+33%
+21% +6%
Travel +24%

+24%
+26% +26%
Non-
Travel


All Income Segments Are Turning to Coupon Sites More so Than
They Did Last Year

Number of Unique Visitors to Coupon Sites and Growth vs. YA
Source: comScore

40,000 50%

+46% 45%
35,000

40%
30,000 +38%

Percent Growth
Percent Growth
Unique Visitors

35%

25,000
+33% +33% 30%

20,000 +29% +26% 25%

+21% 20%
15,000 +20%

15%
10,000
+11% 10%

5,000 +4%
5%
+4%

0 0%
Feb-2008 Mar-2008 Apr-2008 May-2008 Jun-2008 Jul-2008 Aug-2008 Sep-2008 Oct-2008 Nov-2008 Dec-2008


Agenda

About Us …
– Implications for Measuring Digital Advertising Effectiveness



Holistic Measurement More Important Than Ever…

Who? Premium Targeting
Who was reached and how often? Re-Target In-Market Consumers

• Reach/Frequency • Improve Campaign
• Impressions Effectiveness by hitting
the right audience
• Demographics
• Previous Shoppers
• Flighting
• Competitor Shoppers
• Audience Build
•Behavioral targets
• Distribution
•Etc.

Branding Impact What Happened?
Brand Metrix™ Lifts On & Offline Behavioral Lifts

•Site Visitation
•Brand Awareness •Searches
•Attitudes •Paid/Organic Clicks
•Message Recall •Offline Purchases
•Purchase Intent •“Retail Impact” &
•Offline Conversion “Close the Loop”
Studies


The Majority of Advertising Often Falls Outside the Desired Target

Outside US
Frequency <=4
In US But Not Target
Hit Target with >=5 Frequency
100%
8%
90%

80%

70%

60% 61%
Area of improvement
50%

40%

30%

20% 19%
10%
12% Likely Waste
0%

Weighted Average - 8 Campaigns


Think Beyond Demos Into Premium Targets:
7200 Segments Suitable for a Myriad Audience Targets

CPG 150 Categories, 500 + brands

Pharma RX and conditions

Auto Cars owned, date of purchase, New purchases

Online Shopping computers, cameras, TV’s, office supplies, furniture, apparel, …

Offline Shopping Retail, Restaurants, Grocery, Entertainment ….

Online and off-line Travel Air, hotel, car travel, cruises, ….

Personal Consumption 100 categories

Wireless Usage Mobile Apps and Devices

Credit card, insurance, mortgage applications, trading activities,
Financial
brokerage and banking information

Off-line Media Consumption TV, Magazine,…

Off-line Product Ownership Appliances, Electronics, …


comScore study with Google:
“The Role of Search in Consumer Buying”

The Three Components of How Search Drives Buying

Direct Online Effects 16%
Latent Online Effects 21%

Latent Offline Effects 63%

Only measuring direct (i.e. immediate) online effects understates
ROI by a factor of 6X
Source: Google/comScore “The Role of Search in Consumer Buying” Press Release,
March 21, 2006; based on holiday-related purchases completed online and offline
© comScore, Inc. Proprietary and Confidential. 17 across 11 product categories for 60 days post-search

Objective Setting is Critical -- Which Needle(s) are You
Trying to Move?

Number of Individuals
Attitudinal

Increased Value of Individuals
Increased Value of Individuals
– Awareness
Awareness,
Perceptions &
Usage – Opinions
Brand
Differentiation & – Intent
Attribute
Association
Behavioral

– Site visitation

Target Future – Site engagement
Intent
– Share of mind
Preference
– Search

Purchase

– Online
Actual Purchase
– Offline

The Cookie Deletion Problem: Overstates Campaign Reach but
Understates Frequency

30% of Internet users delete their cookies in a month
– This rate corroborated by independent studies from Belden, Jupiter, and others
These deleters do so an average of 4 times a month
– 5 different cookies for same site in a month on one computer
Cookie deletion creates major problems:
– 2.5 times overstatement of unique visitors in server logs
– 2.5 times overstatement of reach and a similar understatement of frequency in
ad server log

News: The deletion rate
has increased by about
25% in only two years


Why is Cookie Deletion so Important with Regard to Measuring Ad
Effectiveness?

Problem: Since users delete cookies, current control groups
are contaminated and effectiveness is understated

comScore Panelists

Solution: TotalLift™ Calibration
– We use the comScore panel to determine control
group contamination
– Lift is adjusted upward, providing accurate
results
Exposed to Ads
(Test Cell)

Example 15% Lift
• Unaided recall is 15%
• comScore determines that Everyone Else
there was a 20% cookie
deletion rate
• comScore TotalLift™ 19.5% Lift
Not exposed to
algorithm reveals 19.5% comScore TotalLift™
Campaign Ads lift
(Control) © comScore, Inc. Proprietary and Confidential. 20

The Percent of Users Deleting Cookies Varies Across Ad Campaigns

Sample of cookie deletion percentages
30.0% across campaigns in different categories 26.6%

25.0% 23.7%
22.5%
19.8% 19.8%
20.0% 19.0%
17.6% 17.9%

15.0%

10.0% 8.6%

5.0% 3.9%

0.0%
Pharma

Pharma

Pharma
Non Profit
Tech

CPG
Finance

Finance

Retail

Retail

Under-estimation of branding effects can be significant

© comScore, Inc. Proprietary and Confidential. 21 Source: comScore Ad Effectiveness Studies

By Analyzing Cookie Deletion Data We Can Understand the True
Impact of the Campaign

Favorability towards BRAND X

50%
50% 45%
45% 45%
45% 45% 45%
40%
40% 38%
40% 38%
40%
% Top Box
% Top 22Box

30% 28%28%
30%
20% Control
Control
20%
10%
10%
∆ Lift +5 ∆ Lift +7 ∆ Lift +18 Test Test
% Lift: +12.5% % Lift: +18.4% % Lift: +60.1%
0%
0%
Favorability
Favorability Low Cookie Deletion HighHigh Cookie Deletion
Low Cookie Deletion Cookie Deletion
(3.9%)
(3.9%) (26.6%)
(26.6%)
Control: 327 Test: 313 Control: 327 Test: 313 Control: 327 Test: 313

Q. How would you describe your overall opinion of each of the following brands?
(scale of 1 to 7 where 1 = Very unlikely and 7 = Very likely)

© comScore, Inc. Proprietary and Confidential. 22 indicates a significant lift above control at 90% (CL)

Agenda

About Us …
– Benchmarking Success via Comprehensive Norms


Measuring the Holistic Impact of Online Ad Campaigns

300+ studies conducted to assess the impact of paid search and online ads
on online and offline sales
Real world analysis: comScore panelists divided into two matched groups
(exposed and non-exposed to advertising)
– Search only
– Display ads only
– Search and display ads together
– Neither
Passively measured behavior and / or surveys
– Linked to in-store buying through CRM databases, retailer loyalty cards (we
have 125 Million card dataset accessible), credit card data, IRI scanner panel


Brand Metrix ™ Market Norms For Attitudes: Online Shows Positive
Impact Across Key Measures

Top-of-Mind 29.6 ∆ Lift +3.0
∆ Lift +3.0
Unaided % Lift: +10.1%
% Lift: +10.1%
Awareness 32.6

89.3 ∆ Lift +.8
Aided Awareness % Lift: +.9%
90.1

Total Advertising 29.7
∆ Lift +2.2
Awareness 31.9 % Lift: +7.4%

Favorability (Top 2 27.3 ∆ Lift +3.5
box) 30.8 % Lift: +12.8%

Control Test

Brand Metrix ™ Market Norms Can Help Measure Impact Across
Properties...

The campaign drove directional lift in intent to recommend BRAND X, with
significant lift on Site B
Unaided Awareness of BRAND X

40% 38%
35% 32%
30%
30% 28% 28%
26%
% Top 2 Box

25%
20% Control
15% Test
10% ∆ Lift +4 ∆ Lift +12 ∆ Lift +2
5% % Lift: +14.3% % Lift: +46.1% % Lift: +7.1%
0%
Site A Site B Site C

Q. When thinking of types of Y what brand comes to mind first?


Brand Metrix ™ Market Norms Can Help Measure Impact Across Ad
Unit Types….

Both Video and Standard creative units achieved significant lifts showing
successful execution at both the basic and most advanced design levels

Favorability towards BRAND X

100%
85% 81%
80% 75%
66%
% Top 2 Box

61%
60% 56%
Control
40%
Test
∆ Lift +5 ∆ Lift +10 ∆ Lift +15
20% % Lift: +8.9% % Lift: +13.3% % Lift: +22.7%
0%
Rich Media Video Standard

Q. How would you describe your overall opinion of each of the following brands?


Brand Metrix ™ Market Norms can help measure impact across
placements…

At the campaign level, all placements proved a success with the
Sponsorship achieving highest impact

Intent to Purchase BRAND X

60% 53%
50%
39%
% Top 2 Box

40% 36%
33%
30% 24% 26% Control
20% Test
∆ Lift +15 ∆ Lift +20 ∆ Lift +10
10%
% Lift: +62.5% % Lift: +60.1% % Lift: +38.5%
0%
ROS Sponsorship Roadblock
Control:181 Test: 487 Control: 206 Test: 233 Control: 321 Test: 313

Q. In the next 30 days how likely are you to purchase each of the following brands?


Brand Metrix ™ Market Norms for Behavioral Data:
Driving Traffic to Advertiser Web Site

There is significant lift that would be overlooked by only considering immediate actions

The effects of online display advertising are persistent

Though additional benefits are gained over time the proportional value of the lift when compared to the
Control group (i.e. percent lift) lessen over time

Advertiser Site Reach
6.6%
5.8%

4.8%
4.5%
3.9%
3.5%
3.1%

2.1%

% Lift: 65.0% % Lift: 53.8% % Lift: 49.1% % Lift: 45.7%

Week of first exposure Weeks 1-2 after first exposure Weeks 1-3 after first exposure Weeks 1-4 after first exposure

Control Test


Brand Metrix ™ Market Norms for Behavioral Data: Display Ads Lift
Site Visitation Across All Verticals

Advertiser Site Reach
Weeks 1-4 after first exposure
4.5% % Lift: 46%
Average, N=139 ∆ Lift: 2.1%
6.6%

0.9% % Lift: 114%
Automotive, N=38 ∆ Lift: 1.0%
1.9%

1.3% % Lift: 86%
Finance, N=16 ∆ Lift: 1.1%
2.3%

0.6% % Lift: 77%
CPG & Restaurant, N=10 ∆ Lift: 0.5%
1.1%

9.1% % Lift: 52%
Retail & Apparel, N=21 ∆ Lift: 4.7%
13.8%

7.0% % Lift: 42%
Media & Entertainment, N=24 ∆ Lift: 2.9%
10.0%

5.8% % Lift: 25%
Electronics & Sof tware, N=14
7.2% ∆ Lift: 1.5%

4.8% % Lift: 21%
Travel, N=9
5.8% ∆ Lift: 1.0%

Control Test


Brand Metrix ™ Market Norms for Behavioral Data: Impact of Display
Ads on Search Still Evident 4 Weeks Post Initial Exposure

While a relatively small percentage of users exposed to an online display ad subsequently make a
search on an advertiser’s Trademark/Brand term the lift between test and control is significant

However, this dynamic is important because of the synergy between display ads and search (more on
this later) and because a Trademark or a Brand search is a significant indicator of purchase intent.

% Making a TM/Brand Search
0.9%

0.7%
0.6%
0.5%
0.5%

0.4%
0.3%

0.2%

% Lift: 52.3% % Lift: 46.0% % Lift: 40.3% % Lift: 38.1%

Week of first exposure Weeks 1-2 after first Weeks 1-3 after first Weeks 1-4 after first
exposure exposure exposure

Control Test


Clear Synergies Between Search & Display

Conventional wisdom says that media works best when multiple approaches are employed to work
together

Here we see clear synergies between search and display. In each case, both in terms of % reach and $$
spent per 000 exposed, it’s clear that the combination of search & display together outpace the sum of
the results of display and search separately

% Making A Purchase on the Advertiser Site
(Retail Only) 5.1%
2.4% 1.9%
1.0% 1.5% 1.1%

Display Only Search Only Search & Display
% Lift: +42% % Lift: +121% % Lift: +173%

Online $$ per 000 Exposed
(Retail Only)
$6,107

$2,724 $2,723
$994 $1,263 $1,548

Display Only Search Only Search & Display
% Lift: +27% % Lift: +76% % Lift: +124%

Control Test

Online is Important but What About Offline?

Higher offline sales lifts are found for search advertising vs. display but when combined the synergy
provides even more lift

Lift generated by online advertising is significant and would not be captured by a CPC or cookie-based
model

Incremental Impact on Offline Sales per (000) Exposed
Source: comScore


Reach of Display Ads Often Helps Lift Sales More Than Search

The overall number of people reached by Display ads is typically much higher than Search

As a result, even though the sales lift among those exposed to a Search ad is higher, the total dollar
sales gained from Display ads is often larger than Search due to the smaller lift acting on a larger base

Incremental Impact on Offline
% of Households Reached Sales per (000) Exposed Total Sales Lift Index
119% 200 198
81% 200% 198%
82%
100
100%
11% 8%
16%
Search & Search Only Display Search & Search Only Display Only
Display Only Search and Search Only Display Only Display
Display


Don’t leave ROI on the table: 6 Key Takeaways

Focus on 360 degree campaign measurement
Look to target, enhance, and focus media buying
Set clear objectives & measure accordingly
Be sure to measure both the direct and latent impact of your
campaign on both attitudes & behavior
Exploit the synergies between media types (search, display, cross
media)
Be sure to correct / understand the impact of cookie deletion


Thank you!
Questions?

Evan Neufeld (eneufeld @ comscore.com)

Are you leaving ROI on the table?

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