1 copyright 2000 acnielsen john r. laroche managing director a presentation to icom november 17,...

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Copyright 2000 ACNielsen

John R. Laroche

Managing Director

A Presentation to iCOMNovember 17, 2000 - Bangkok, Thailand

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AgendaAgenda

The Internet ChallengeThe Internet Challenge

Online ResearchOnline Research

AN Advertising ApplicationAN Advertising Application

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The Internet The Internet ChallengeChallenge

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““Wire” talk ....Wire” talk ....

““The internet will The internet will change everythingchange everything - the way we work, the way we - the way we work, the way we learn … what is more, it is doing so at far greater speed than the learn … what is more, it is doing so at far greater speed than the other great disruptive technologies of the 20th century, such as other great disruptive technologies of the 20th century, such as

electricityelectricity, the , the telephonetelephone and the and the carcar” ” EconomistEconomist (July 1999) (July 1999)

““The Internet has opened The Internet has opened new frontiersnew frontiers … when you know who’s visiting your … when you know who’s visiting your site and they give you permission to begin a dialogue with them … can lead site and they give you permission to begin a dialogue with them … can lead

to to lifetime relationshipslifetime relationships … revenues/profits … takes marketing … revenues/profits … takes marketing communications to much higher levels …” Bob Lamons, communications to much higher levels …” Bob Lamons, Marketing NewsMarketing News

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Worldwide Internet GrowthWorldwide Internet Growth

Driven byDriven by higher PC penetrationhigher PC penetration falling telecommunication chargesfalling telecommunication charges improved web content / functionalityimproved web content / functionality

0

50

100

150

200

250

300

350

400

450

500

1995 1996 1997 1998 1999 2000 2001 2002 2003

Millions of Users

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Development of Internet Audiences (%)Development of Internet Audiences (%)% of individuals currently using Internet% of individuals currently using Internet

2522

13

8

3

3636

1 1225

1112

24

19

23

1 14

87

1314

27

3 2

8

1416

3229

32

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Period 1 (Jul 97-Jun 98)Period 2 (Jan-Dec 98)Period 3 (Jul 98-Jun 99)Period 4 (Jul-Dec 99)Period 5 (Mar99-Apr00)Period 6 (Feb-Apr00)

Sin

gap

ore

Ho

ng

Ko

ng

Ph

ilip

pin

es

(Met

ro M

anila

Tai

wan

(N

atio

nal

)

Pen

insu

lar

Mal

aysi

a

Ch

ina

(GZ

/SH

/BJ)

Ind

on

esia

(Jak

arka

+10

cit

ies)

Th

aila

nd

(Nat

ion

al)

*

Au

stra

lia

New

Zea

lan

d

*

*

*

*Use Internet in past 12 monthsBase: All aged 15+ for all countries (14+ Australia, 10+ New Zealand)Source: ACNielsen NetWatch Report

**

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Profile of Internet users - SexProfile of Internet users - SexWomen are Growing Faster Than MenWomen are Growing Faster Than Men

68

32

62

38

62

38

59

41

55

45

57

43

56

44

58

42

47

53Female

Male

Tai

wan

(Nat

iona

l)

Sin

gapo

re

Hon

g K

ong

Pen

insu

lar

Mal

aysi

a

Tha

iland

(Nat

iona

l)

Indo

nesi

a(J

akar

ta+

10 c

ities

)

Phi

lippi

nes

(Met

ro M

anila

)

Chi

na(G

Z/S

H/B

J)

Base: All aged 15+ current Internet usersSource: ACNielsen NetWatch Report Jul-Dec 99

Aus

tral

ia

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Profile of Internet users - Age (Male)Profile of Internet users - Age (Male)Increasingly Becoming ‘more’ RepresentativeIncreasingly Becoming ‘more’ Representative

63

23

104

61

27

112

57

30

85

53

26

15

6

51

27

15

7

32

31

26

11

31

30

23

17

25

48

17

1045+

35-44

25-34

15-24

Tai

wan

(Nat

iona

l)

Sin

gapo

re

Hon

g K

ong

Pen

insu

lar

Mal

aysi

a

Tha

iland

(Nat

iona

l)

Indo

nesi

a(J

akar

ta+

10 c

ities

)

Phi

lippi

nes

(Met

ro M

anila

)

Chi

na(G

Z/S

H/B

J)

Base: All aged 15+ current Internet usersSource: ACNielsen NetWatch Report Jul-Dec 99

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Computer Ownership vs Internet Usage Computer Ownership vs Internet Usage % of individuals have at least one computer in household% of individuals have at least one computer in household

Base for computer ownership: All aged 15+Base for usage of Internet: Those who owned at least one computer in householdSource: ACNielsen NetWatch Report Jul - Dec 99

*Indonesia NetWatch Jun-Jul 98*Australia NetWatch Mar99-Apr00

62%55% 55% 49%

20%15% 14% 6%

4%H

ong

Kon

g

Tai

wan

(Nat

iona

l)

Sin

gapo

re

Pen

insu

lar

Mal

aysi

a

Chi

na(G

Z/S

H/B

J)

Phi

lippi

nes

(Met

ro

Man

ila)

Indo

nesi

a(J

akar

ta+

10 c

ities

)

Tha

iland

(Nat

iona

l)

Usage of

Internet 44% 41% 58% 36% 40% 17% 24% 9% 29%

*Aus

tral

ia(N

atio

nal)

* *** *

*

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Emergence of an Online TransactorEmergence of an Online TransactorO

n li n

e F

i na n

cial

Se r

v ic e

s

Online Shopping

Non-Transactors

EmergingTransactors

FinanceManagers

Online Shoppers

High ValueTransactors

Source:www.Consult

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Intention to Purchase on the InternetIntention to Purchase on the Internetnext 12 monthsnext 12 months

30%

25%

43%

2%

LikelyNot decided yetUnlikelyRefused

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On-Line PurchaseOn-Line Purchase

Top 3 items purchasedTop 3 items purchased

BooBooksks

Travel Travel related servicesrelated services

PC PC softwaresoftware

BooBooksks

Travel Travel related servicesrelated services

PC PC softwaresoftware33%33%

20%20%

19%19%

12%12%

9%9%

5%5%

For Personal useFor Personal use For Business useFor Business use

11

22

33

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On-Line FinanceOn-Line Finance

Use Internet Banking/Use Internet Banking/Trade Stock Trade Stock

in next 12 monthsin next 12 months

Quite likely/Very likelyQuite likely/Very likely31%31%

Base: 6 countries’ Internet users who have registeredBase: 6 countries’ Internet users who have registeredInternet banking accountInternet banking account

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The InternetThe Internet

E-Commerce E-Commerce MarketplaceMarketplace

Distribution ChannelDistribution ChannelAdvertising MediumAdvertising Medium

Market Research Market Research ToolTool

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The Competitive EnvironmentThe Competitive Environment

TraditionalMR Firms

InternetTracking

Co.s

Online MRSpecialists

E-CommerceConsultants

- Audience Tracking- High Level Consulting- Syndicated Research

- Online Research … limited

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ACNielsen … Connected

www.Consult

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First Global Internet Ratings ServiceFirst Global Internet Ratings Service

Single global standard across the worldSingle global standard across the world 30 countries by 200130 countries by 2001

Nielsen//NetRatingsNielsen//NetRatings

Coverage: Europe, Asia Pacific, Latin America, Coverage: Europe, Asia Pacific, Latin America, Middle East & Africa - 90% of world’s Internet Middle East & Africa - 90% of world’s Internet audienceaudience

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ACNielsen.online ‘Hub and Spoke’ACNielsen.online ‘Hub and Spoke’

Hong Kong

Tokyo

London

Singapore

Denmark

Sydney

Sillicon Valley

New York

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… … Guiding you Guiding you throughthrough

Site Development - FGDs, web clinics, web masters

Site Development - FGDs, web clinics, web masters

Site Evaluation - FGDs, Web/E Based Surveys, Click Paths

Site Evaluation - FGDs, Web/E Based Surveys, Click Paths

Market Assessment - Netratings, Global Netwatch, FGDs, Web/E Survey, Popup

Market Assessment - Netratings, Global Netwatch, FGDs, Web/E Survey, Popup

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Online Quantitative ...

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Web/E-Mail Survey Benefits...Web/E-Mail Survey Benefits...

Quick turnaround

Stimulus material is req’d to be illustrated

Multi-country/language study

Hard to reach audiences (e.g. GPs)

Excellent for large volume sample size

Good for sensitive scope of coverage

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WBS, Pop-Ups and EmailWBS, Pop-Ups and EmailSurveying … The ACNielsen.online WaySurveying … The ACNielsen.online Way

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Complete Flexibility …Complete Flexibility …Open and close ended questions Open and close ended questions

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ranking, constant sum, … rotate attributes, … multi-lingual

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.online Delivery.online Delivery‘Real time’ reporting‘Real time’ reporting

.online Snapshots - access to data as it is being collected

Instant online access to reports and tables for sharing with multiple users in multiple locations

.online Analyser - online analytical processing

Secure dedicated website - login, password and firewall protected

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Online Qualitative ...

‘Online’ Focus Groups

‘Offline’ Focus Groups

Web Clinics

Web Masters

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Online FGD Benefits...Online FGD Benefits...

Single centre real-time co-ordination

Real-time observers in geographic spread

Ability to illustrate real-time web content

Multi-C’try requiring quick turnaround

Transcripts available immediately

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Here is the Focus Group waiting room

from the Moderator

view. This is where

participants can be

screened and invited to join

the group. There is also

an opportunity to chat with

the others and for the client to

view the conversations to help screen the members of the group.

Here is the Focus Group waiting room

from the Moderator

view. This is where

participants can be

screened and invited to join

the group. There is also

an opportunity to chat with

the others and for the client to

view the conversations to help screen the members of the group.

White board for loading images,

WebPages, video and sound.

White board for loading images,

WebPages, video and sound.

Probe questions

Probe questions

Participant list

Participant list

This is the Chat Stream frame where the responses will appear.This is the Chat Stream frame where the responses will appear.

This is the Chat Input frame where the responses are entered.This is the Chat Input frame where the responses are entered.Moderator Guide

contains preloaded questions and

whiteboard images.

Moderator Guide contains preloaded

questions and whiteboard images.

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This web page was loaded by the

moderator through the use of the WB

shown in the Moderator Guide

frame.

This web page was loaded by the

moderator through the use of the WB

shown in the Moderator Guide

frame.

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The participant completes the

questionnaire in their White Board.

The participant completes the

questionnaire in their White Board.

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Online FutureOnline FutureMeeting your Internet information needsMeeting your Internet information needs

““New Internet-based companies recognise that New Internet-based companies recognise that building building brands on the Internet is essentialbrands on the Internet is essential for their for their survival….For traditional companies, the challenge is survival….For traditional companies, the challenge is to deliver the full impact of their brands through the to deliver the full impact of their brands through the Internet…opportunities are to build Internet…opportunities are to build even greater brand even greater brand equityequity and and even more brand loyaltyeven more brand loyalty. The Internet is a . The Internet is a great tool to build loyalty from existing users as well as great tool to build loyalty from existing users as well as to attract new users”to attract new users”

- Paula Sneed, President, e-Commerce, - Paula Sneed, President, e-Commerce, Kraft Foods ( Kraft Foods (Consumer InsightConsumer Insight, March 2000), March 2000)

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Internet’s Impact on Advertising

Source: Rex Briggs

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Declared data - targeted adsDeclared data - targeted ads

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How would you measure this ad?How would you measure this ad?

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Impressions and clickthroughs Impressions and clickthroughs

Impressions

Clicks

Volvo ad received 0.4% Volvo ad received 0.4% ClickthroughClickthrough

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Are these clickthrough Are these clickthrough reports relevant to Volvo?reports relevant to Volvo?

(or to most advertisers, for that (or to most advertisers, for that

matter)?matter)?

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Post Click AnalysisPost Click AnalysisAnonymous Case StudyAnonymous Case Study

# of Post Click Events Cost per conversion event

AdViews Clicks

ClickRate

BridgePage

Sendme info

ProductInfo

ThankYou

BridgePage

Sendme info

ProductInfo

ThankYou

5381 32 0.59% 24 9 8 7 6.73 17.94 20.18 23.06

5321 35 0.66% 29 9 3 4 5.50 7.74 53.21 39.91

10688 112 1.05% 67 10 5 3 4.79 32.06 64.13 106.88

Source: AdKnowledge

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AdvertisersAdvertisers need to know: need to know:

Did their ads reach the right audience? Did their ads reach the right audience? NO NO INFOINFO

Do they increase brand awareness? Do they increase brand awareness? NO NO INFOINFO

Do they improve key perceptions? Do they improve key perceptions? NO NO INFOINFO

Did they increase sales? Did they increase sales? eTAILEReTAILER

What does Clickthrough tell the What does Clickthrough tell the advertiser?advertiser?

ClickthroughReportingProvides

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How Do You Measure Online How Do You Measure Online Advertising?Advertising?

Two major approaches:Two major approaches: Impressions and clickthroughsImpressions and clickthroughs

Post click activity/latent clickthroughsPost click activity/latent clickthroughs

Branding - measuring the consumer’s Branding - measuring the consumer’s attitudinal response to online advertisingattitudinal response to online advertisingPanel based “branding” measurement of Panel based “branding” measurement of

attitudinal response based of recency, frequency attitudinal response based of recency, frequency and multi-media exposure and multi-media exposure

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Q.Q. What’s the value of the 99.6% who What’s the value of the 99.6% who didn’t click?didn’t click?

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A.A. Substantial value! Substantial value!

Brand Perceptions

11

7

913*

17**

11**

Is a good automobile

Offers something different than other brands ofautomobiles

Have a higher opinion of than other automobiles

Exposed Not Exposed** Statistically significant at the 95% confidence level * Statistically significant at the 90% confidence level

55% increase

57% increase

44% increase

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Applying Effectiveness Research to Your Business

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““IT’S JUST FOR DIRECT MARKETING” IT’S JUST FOR DIRECT MARKETING”

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R.I.P.1995-2000

““I DON’T BELIEVE I DON’T BELIEVE ONLINE ADS CAN ONLINE ADS CAN

DO BRANDING”DO BRANDING”

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Key point:Key point: Use measurement to Use measurement to experimentexperiment

Benchmark and extend the effectiveness of Benchmark and extend the effectiveness of the online advertisingthe online advertising Advertisers should try different:Advertisers should try different:

Ad executionAd executionTargeting capabilitiesTargeting capabilitiesFrequency levelsFrequency levels

It is too early to settle for “good enough” -- It is too early to settle for “good enough” -- Keep innovatingKeep innovatingNew ad formatsNew ad formatsSponsorship opportunitiesSponsorship opportunitiesCollect and build a base of knowledge about Collect and build a base of knowledge about

what works best for your audience what works best for your audience

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When in doubt…When in doubt…TEST IT !TEST IT !

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1 copyright 2000 acnielsen john r. laroche managing director a presentation to icom november 17,...

Documents

internet challenge slide

acnielsen netwatch report

use internet

thailand slide

acnielsen agenda

acnielsen emergence

acnielsen john

australia national