ad survey editorial methodology

Copyright © 2011The Nielsen Company. Confidential and proprietary.

March, 2011

Ad Survey Editorial Methodology Nielsen Campaign Ratings

Measure the true audience for online ad campaigns

Presentation to the Online Publishers Association

February 21, 2012

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As an advertising platform, Online provides tremendous opportunities for brand advertisers

8%8%

Print 16%

Radio

Online 25%

TV

Mobile

43%

Share of time spent on media, Percent

Advantages of online advertising

INTERACTIVE DYNAMIC TARGETED DATA RICH

2

However, Online still does not get its fair share of advertising spend

8% 8% 12% 13% 15% 19% 20% 22% 38%

59%

92% 92% 88% 87% 85% 81% 80% 78% 62%

41%

Healthcare Enter- tainment

$12

Media CPG

$9

Telecom

$10 $5 $6

IT Leisure/ Travel

Auto Retail

$6 $8

Financials

$15 $3 $4 Online

Share of ad spend by media vertical (1H 2011) $ billion, Percent

Other

• Big brand advertisers are underweighted in Online • Search / direct response account for majority of spend

3

We believe online advertising has a measurement problem

Still left asking “Who saw my ad?”

Server Log

Counts

Page Views

Click Through Rates

Female 18-22

Conventional Online measurement What Brands get on TV

14,561

178,509

0.015%

32% Reach 2.6 Frequency

83 GRPs

Above the Fold

70%

19% Ad Recall

4

3rd party ad measurement solutions haven’t helped

Traditional Panel

Insufficient Size

Demo insights only available post-campaign

Not consistent

with other media

Ad Servers

3rd Party Cookies

No demographics

Not consistent with other media

Cookie Based

Questionable

sample coverage

3rd Party Cookies

Not consistent with other media

5

Nielsen’s goal is to help grow online advertising

Industry impact

• Better online brand advertising

oAdvertisers assess and improve performance based on audience

oPublishers offer audiences instead of clicks, optimize ability to deliver

• More transparent and efficient market

• Higher ROI for buyers and sellers of online advertising

• Online core to the media plan, integrated with rest of media spend

Establish an industry standard

for measuring the true audience

for online advertising,

consistent with other media

Our mission

6

The Nielsen Campaign Ratings suite provides the true audience for your ads across platforms

Breakthrough performance

40%

Delivery against campaign targets

“65% of my campaign reached

the intended audience”

Cross-platform media contribution

“7% Unduplicated reach, 10% duplicated

reach between my Online & TV buys”

TV Online

Overnight audience ratings by demo

“18% of Men 18-34 saw my ad, on 65 GRPs”

R F GRP

“Among audience exposed to my campaign, 40%

recalled the ad”

Blend of registration data with high quality Nielsen panel data

Performance for overall campaign and split by individual publisher

Measurement of digital and TV in a single platform, tied to Nielsen TV ratings

Polling platform enables ad recall, or “breakthrough,” at scale

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Campaign Ratings innovates by incorporating registration data, with full privacy protection, into ad measurement

Count • count all ad

impressions

Data Provider Exposures

Assign Demos • assigns demos for

all users with a logged-in cookie

Calibrate • corrects for bias in

data provider sample • compensates for

attribution error

Tag Ads • Nielsen tag

for display, video, rich, etc.

Nielsen Server

Nielsen Cross-Platform Homes

Panel

Calculate • Calibrated

unique audience and impressions are projected out to the full campaign

Report • Reports with

full demos available overnight

Nielsen tag

Nielsen Audience Calibration Engine

Nielsen Mediaview

How Nielsen Campaign Ratings works

Most accurate ad measurement possible- a “sample” 30x larger than any online panel

No PII

No site info

8

Copyright © 2011 The Nielsen Company. Confidential and proprietary.

Hypothetical Campaign

• Advertiser: Acme, Inc.

• Campaign: 3 placements – Website A: 100,000 impressions – Website B: 200,000 impressions – Website C: 200,000 impressions – Total Campaign: 500,000 impr

• Campaign Dates: 1 day campaign

The following slides will walk through a simplified example of how the methodology for Online Campaign Ratings works.

9


Sample Coverage • The hypothetical Acme campaign delivered 100K impressions on Site A • The sample coverage was 46%, meaning that 46,000 impressions were directly attributable

to a logged-in Facebook user • The same sample coverage can be computed for Site B and Site C, and campaign total.

Demographic Data Provider

Exposures (i.e. Facebook)

Total Campaign Impressions on Site A

(Census impression by Nielsen)

100,000 impressions

46,000 impressions (46% sample coverage)

10


Data Provider Sample • Data files for Site A placement show 46% sample coverage of the impression universe • Data provider summary file breaks down audience impressions and user by demo group

File format shown here is simplified for example

11


Calibration for Acme Campaign [Site A]

Calibration factors used here are for illustration only.

Scaling factor projects the volume to match the total census count

12


Calculating Campaign Unique Audience • Objective: Because this campaign appeared

on 3 different websites, the reports must determine the duplication in the audience across the sites

• Data Provider sends files aggregated at site and campaign level

• Formula:

• This calculation is made for every demo group

• Final campaign level reporting uses these duplication factors to determine unique audience at the campaign level

Site-Level and Campaign-Level aggregations provided by Facebook:

Unique Audience (Union) = 141,015 Unique Audience (Sum) = 163,970 Duplication Factor (Union/Sum) = 0.86

13


Final Report for Acme Campaign • Final reports display audience

metrics: – Impressions – Unique Audiences – Reach (derived) – Avg. Frequency (derived) – GRP (derived)

• Reports are available: – By demo group – By site – By campaign total

• Campaign Total Report reflects unduplicated audience across all sites

14

Campaign Ratings is the most accurate ad measurement product available, for even the smallest campaigns

Campaign Ratings

1 million 2 million

Error rates at different campaign sizes

100,000 10,000 50,000 5,000 daily impressions

Panel size

Competing products break down especially for smaller campaigns Nielsen Campaign Ratings can provide results for online campaigns of any size, with extremely high accuracy

30%42%6%

43%60%

9%

96%136%

19%

134%

189%

27%

30-50% sample coverage

Less than 2% sample coverage

15

Campaign Ratings goes beyond who might have viewed to tell you who actually remembered your ads

Who was the ad delivered to?

Was the ad visible on-screen?

Was the ad actually viewed?

Did the viewer remember the product or brand

(breakthrough)?

Did the ad impact the viewer’s attitude?

Did the ad

lead to action?

Campaign Ratings

Campaign Ratings incorporates ‘breakthrough‘ • Assessment of how well the

target audience could remember the ads next day

• Based on next-day poll response of exposed person in target

• Reporting at the publisher and creative level

• Results weighted to reach / frequency from Nielsen Campaign Ratings

• Scalable and offered for most campaigns

17

Extending Campaign Ratings cross-platform

Television Audience

Digital Audience

TV-only • What audiences can only

be reached through TV today?

TV and Digital • What audiences are

exposed to all parts of my cross-platform campaign?

Digital-only • What audiences are

outside the reach of TV? • What incremental reach

can I get from digital?

Nielsen Campaign Ratings will provide unduplicated reach for TV and Online components of cross-platform campaigns

March beta trial; Q4 2012 commercial launch

18

TV ads encoded with Nielsen Audio Watermark

Digital ads tagged with Nielsen tag

Advertisers identify all of the TV and online ads from a cross-platform ad campaign

1

Nielsen measures campaign reach and frequency for each media independently, NPM panel for TV; online ratings for digital

2

NPM panel Online Campaign Ratings

Nielsen uses the CPH panel to adjust individual media reach measurements by a duplication factor

3 Nielsen Cross- Platform Homes Panel

Nielsen combines and calibrates the measurements to generate the final only-only-both measurement for the campaign

4 TV- only reach

Digital- only

reach

Cross- Platform

reach

Nielsen Campaign Ratings combines TV and online ad measurement using our proprietary single-source panel

Note: Participating campaigns must have > 25mm online impressions

19

Findings from analysis of Campaign Ratings results

• On average, 50% of campaign impressions hit defined audience demo targets o Broadly defined targets (specified age or gender) ranged from 45-61% o More narrowly defined targets (specified age and gender) ranged from

22-50%

• Wide range of on-target delivery for specific sites o Broadly defined targets (specified age or gender) ranged from 11-99% o More narrowly defined targets (specified age and gender) ranged from 5-

61%

• Sites that tend to have better registration data and more targeted content and services tended to deliver more on-target

• Sites with lower reach tended to have higher frequency of visitation

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Advertisers have used Nielsen Campaign Ratings to drive impact in several ways

Post buy assessment • Large consumer goods manufacturer identified opportunities to increase

on-target audience by 77% and save 11% spend Post buy assessment • Top telecom company used reach + breakthrough data to identify large

differences in effective CPM across publishers for the same campaign

In flight campaign optimization • Large beverage company optimized in-flight mid-campaign, resulting in a

25% increase in on-target delivery Demo-based guarantees • Large healthcare company, in conjunction with their agency, required

publishers to guarantee on-target GRPs (based on Nielsen Campaign Ratings)

1

2

3

4

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We believe publishers can leverage Nielsen Campaign Ratings to differentiate and demonstrate performance

• Track your ability to deliver over time o Test and learn by running campaigns through Campaign Ratings o Highly accurate reach, frequency, and GRP; by age and gender, and DMA o Integrated breakthrough (next day recall) measurement, by age and gender o Build database of Campaign Ratings results to understand ad audience, delivery

performance

• Prove you deliver a unique, differentiated audience- do you perform strongly in delivering difficult-to-reach demos? Communicate supporting Campaign Ratings results

• Explore opportunities to charge more for delivering a target audience- rewards for delivering on target audience guarantees?

• Validate targeting and planning approaches

o In-flight and post-campaign comparison of actual audience delivered vs target / planning expectations

o Validate data providers

We see publishers testing each of these use

cases today

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