adtech india-2012-keynote-comscore

With Lessons Learned from Measurement of Online Advertising

State of the Global Internet

Gian Fulgoni

Executive Chairman and Co-Founder, comScore Inc

2 © comScore, Inc. Proprietary.

Discussion Topics

A Brief Introduction to comScore

Key Trends in Global Internet Behavior

Lessons Learned About Online Advertising:

– The Click

– The Cookie

– Ad Visibility

– Facebook


comScore is a Global Leader in Measuring the Digital World

NASDAQ SCOR

Clients 1,900+ worldwide

Employees 1,000+

Headquarters Reston, VA

Global Coverage 170+ countries under measurement;

43 markets reported

Local Presence 32+ locations in 23 countries

V0411


comScore’s UDM Approach Leverages the Best of Panel and Server Data

2 Million Person Panel

360°View of Person Behavior

CENSUS

Unified Digital Measurement™ (UDM)

Patent-Pending Methodology

1 Million Domains Participating Adopted by 80% of Top 100 Global Media Properties

PANEL

PERSON-Centric Panel with

SITE-Census Measurement

Web Visiting & Search Behavior Online

Advertising Exposure

Advertising Effectiveness

Demographics, Lifestyles & Attitudes

Media & Video Consumption

Transactions

Online & Offline

Buying

Mobile Internet Usage & Behavior

PANEL

V0411 And, a behavioral cross-platform measurement capability


In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region

with over 40% of online population.

Many emerging regions likely to bypass old modes, skipping dial-up to go straight to broadband,

making multimedia, video, and collaborative content immediately accessible.

Early adoption of mobile web in addition to PC web will likely be popular in many of these high-

growth areas.

Asia Pacific

Distribution of Worldwide Internet Audience

66%

13%

34%

87%

1996 2011

U.S. Internet Population vs. Rest of the World

Rest of the

World

U.S.

The U.S. Is No Longer the Center of the Online Universe

Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011

Asia Pacific, 41.3%

Europe, 26.4%

North America,

14.6%

Latin America,

9.0%

Middle East - Africa, 8.8%


595

381

210 129 126

534

361 203

112 111

Asia Pac Europe North America Latin America Middle eastAfrica

Dec-11 Dec-10

Asia Continues Significant Growth in Size of Internet Audience

Growth expected to continue as home

broadband penetration increases in Asia

and Latin America

Growth in developing regions likely to

also continue as people move from

shared-access to home & work use

Growth slow in North America

European growth mostly driven by

Russia

+11%

+3%

+6%

+15% +14%

Worldwide Online Population

(Millions)

Internet Audience 15+ accessing Internet from Home or Work

Source: comScore Media Metrix, Dec 2010 and Dec 2011

1,323

1,444

2010 Dec 2011 Dec

+9%


Shared-Access Environments Make up Significant Portion of Total

Population in Some Regions

Shared-access population in India is almost as large as the Internet

population accessing from work and home

Source: comScore Media Metrix, Dec 2011

Unique Visitors (MM)

331

47 52 25

12

105

43 32 11

29

China India Brazil Mexico Indonesia

15+ H/W Other


Size of Online Audience in BRIC countries, 15+ Home & Work


Source: comScore Media Metrix, Dec 2010 to Dec 2011

Online Population Sizes (MM)

BRIC

Significant growth in BRIC countries in the past year, particularly in China,

where 13% growth represents 40 million new web users from work & home

Growth similarly high in many Latin American and Asian markets

+13%

+12% +15% +15%

291

42 45 46

331

47 52 53

China India Brazil Russia

Dec-10 Dec-11


33

28

26

41

27

26

17

23

22

6

12

14

3

9

12

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

India

Asia Pacific

Worldwide

15-24 25-34 35-44 45-54 54+

Internet audience in India skews dramatically younger: 75% of web

audience is under 35, compared to 52% of the world and 55% of the region

India Internet Users are Much Younger than Global Average

Composition of Internet Audience 15+



75%


13.0

14.1

21.1

16.4

26.7

25.1

India

China

Mexico

Indonesia

Brazil

Russia

India’s Usage Relatively Low Compared to Some Other Countries

Web users in China and India are lighter users than Russians and

Brazilians

Expect usage rates to increase as home/work Internet penetration

increases and broadband becomes more readily available

Total Hours Online per Visitor

WW AVG: 24.4




Young People Drive Internet Consumption in India Today, Suggesting

Future Overall Usage Will Rise Dramatically

Time Online by Age Total time in Billion Minutes

25-34 year olds are India’s heaviest Internet users



12.4

14.9

6.1

2 0.87

0

2

4

6

8

10

12

14

16

15-24 25-34 35-44 45-54 55+


Around the world,

Social Networking

now reaches

1.2 billion

users

82% of the world’s

online population T

ota

l U

niq

ue V

isitors

(M

M)

Source: comScore Media Metrix, October 2011

916.8

444.9

1,179.4

Email InstantMessengers

SocialNetworking

M i l l i o n s o f M o n t h l y U s e r s

I n O c t 2 0 11

Social Networking Has Exploded Globally

95% Reach among

India online users


The Rise of the Global Social Networking Audience

0

200

400

600

800

1,000

1,200

1,400

1,600

2007 2008 2009 2010 2011

+174%

+88% Total Internet

Social

Networking

Source: comScore Media Metrix, March 2007 - October 2011

Worldwide Total Unique Visitors (MM)


2008 2009 2010 2011

Time Spent on Key Categories Online Worldwide Hours per Month (Billions)

35

30

25

Nearly in 5 minutes online

is spent on social networks today.

1

Source: comScore Media Metrix, March 2007 - October 2011

Social Networking

Search/Navigation

Retail

Communications (Email/IM)

Other Content


3 Facebook’s worldwide site rank

55% Facebook’s global

penetration


Facebook’s India site rank 2


3 in 4 minutes on social networking

sites are spent on Facebook

1 in 7 minutes spent online

are spent on Facebook



471.4

788MM

Jan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011

Facebook

overtakes

StudiVZ in

Germany

Facebook

overtakes

Orkut in India Facebook

overtakes

Windows Live

in Mexico

Facebook

overtakes Hyves

in the Holland

Facebook

overtakes

Windows

Live in

Portugal

Facebook

overtakes Yahoo!

Wretch in Taiwan

Facebook’s Ascent in Recent Years

Total Unique Visitors (MM)

Since 2010, Facebook has taken the lead in 6 new markets

across Asia, Latin America, and Europe

Source: comScore Media Metrix, January 2010 - October 2011


@ @ @ Twitter reaches 1 in 12 online

users in India and 1 in 10

users worldwide

Source: comScore Media Metrix, Worldwide, October 2011

Social Networking is Not Just Facebook

linkedin reaches 1 in 8 online

users in India and 1 in 14

worldwide


-42%

-32% -37% -34% -36%

-22%

-8% -4% -3%

1%

34% 25%

15% 21%

12%

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+

Instant Messengers Email Social Networking

saw the largest decline in

engagement with web-based

email and instant messaging

Change in Average Time Spent with Content Category by Age Segment

Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010

15-24 year olds


-42%

-32% -37% -34% -36%

-22%

-8% -4% -3%

1%

34% 25%

15% 21%

12%

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+

Instant Messengers Email Social Networking

…but also saw the highest

increase in engagement with

social networking.

Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010

Change in Average Time Spent with Content Category by Age Segment


Online Advertising: Lessons Learned


Some things we’ve learned about online advertising

• The click is at best an incomplete and at worst a

misleading metric

• Display advertising is an efficient and effective way to

build sales both online and offline

• Accurate delivery of media plan is critical

• Facebook is a very efficient way to amplify reach and

persuasiveness


Clickers represent a small and declining segment of Internet users

July 2007 March 2009

•There were 50% fewer clickers in 2009 (16%) than in July 2007 (32%)

• 8% of all Internet users account for 85% of all clicks

• Optimizing against clicks means ignoring 84 percent of Internet users

Non-Clickers

68%

Clickers 32%

Non-Clicker84

%

Clickers 16%

Source: comScore, Inc. Custom Analysis, Total US Online Population, persons, July

2007 and March 2009 data periods


Global Click Rates on Individual Campaigns are Pitifully Low

*Click-through rates across static image, flash and rich media formats

Source: DoubleClick Benchmarks data representing a cross-section of countries, Jan to Dec, 2010

0.05%

0.05%

0.07%

0.08%

0.08%

0.09%

0.09%

0.09%

0.09%

0.10%

0.10%

Austria

Finland

UK

Canada

Australia

U.S.

Spain

Switzerland

Singapore

Ireland

Luxemburg

0.11%

0.11%

0.11%

0.11%

0.11%

0.13%

0.15%

0.17%

0.19%

0.22%

0.64%

France

Italy

Germany

Belgium

Denmark

New Zealand

Netherlands

Greece

India

Hong Kong

China

Worldwide Click-Through Rates*


How comScore measures advertising ROI:

Link ad exposure to behavior

Advertising

Exposure

Website

Visiting &

Search

Online

Transactions

Video

Name

&

Address

Source: comScore 2011

http://www.crossix.com/overview/

http://www.wolterskluwer.com/WK/


Journal Of Advertising Research:

comScore’s “Whither the Click?”

Journal of Advertising Research, June 2009

“What We Know About Advertising: 21 Watertight Laws for

Intelligent Advertising Decisions”

comScore’s “Whither the Click?”

– 200+ comScore studies conducted in the U.S. to assess

behavioral impact of paid search and online display ads.

26

Even with Minimal Clicks,

Display Advertising can Lift:

• Site visitation

• Trademark search queries

• Online and offline sales

Prof. Byron Sharp, Ehrenberg Bass Institute, University of South Australia

Prof. Jerry Wind, The Wharton School


$994

$9,905

$1,263

$11,550

Online Offline

Unexposed Exposed

Dollar Sales Lift Among Households

Exposed to Online Advertising

% Lift: 17%

% Lift: 27%

Despite click rates of only 0.1%, comScore research has shown that

display ads can lift retailer sales – both online and offline

Source: “Whither the Click?” 139 comScore studies in the

June 2009 Journal of Advertising Research

Exposure to display ads

doesn’t just impact online

sales – it lifts in-store

sales as well

The absolute dollar lift

in offline sales is 5x higher

than the lift in e-commerce

sales

The click is misleading

as a measure of campaign

effectiveness

Conclusions


Branding’s digital challenge

• Branding advertisers on TV are accustomed to audience guarantees

and expect the same in digital

• Accuracy of cookie-based digital plan delivery is problematic:


Cookie Deletion Cookies Are Not People

Ads Are Not Always Visible


1 User 36%

2 Users 32%

3+ Users 32%

Because of multiple users on a computer, cookies can’t accurately

identify who is using a computer at any given point in time

Over 64% of home

users share a

computer with

other users


U.S. Users per Computer 2011


Cookie deletion is a global reality … and a global challenge

Ad Server Cookies Web Site Cookies

Country

Percent of

computers

deleting

Average # of

cookies per

computer for

same campaign

Percent of

computers

deleting

Average # of

cookies per

computer for

same web site

Australia 37% 5.7 28% 2.7

Brazil 40% 6.6 33% 2.5

U.K. 35% 5.9 27% 2.7

U.S. 35% 5.4 29% 3.5

Accurately counting reach with cookies is not possible, yet is currently the method

used in most ad servers and analytics systems



Cookie-based demo targeting limits a campaign’s ability to selectively

reach a targeted audience

Male 40%

% C

om

po

sit

ion

of

Ex

po

se

d A

ud

ien

ce

Female

60%

40% of exposed consumers outside of planned gender target

14.4%

17.3%

25.3%

22.4%

20.6%

55+

Only 43% of females

exposed to the

campaign met the

targeted age group

Only 25% of all exposed consumers met planned targeting criteria

45-54

35-44

25-34

15-24

Target for this health & well being

product was females age 35-54


Skewed ad server delivery causes wasted GRPs with overly saturated

consumers

48%

16%

8% 5%

3% 3% 2% 2% 1%

13%

1 2 3 4 5 6 7 8 9 10+

Exposures per Person

65% of

Exposures

27 Exposures

per Person!

Distribution of Exposed People by

Frequency of Exposures CPG Campaign

• 4 Weeks

• 43 GRPs

• Reached ~ 8MM People

• Average Frequency = 4.5

22%

64%



Making Measurement Make Sense (3MS) Mission:

Reduce costs of doing business due to

complexity of digital advertising ecosystem

‘Single Tag’ solution to reduce complexity

Improve reporting of ad exposure

Bolster confidence that ads delivered are

actually visible


Billions of impressions are being delivered – how can retailers ensure

the right consumers are seeing the messaging?


vCE Charter Study

18 campaigns

2 billion impressions

400k sites

Allstate


Charter Findings

In-view ad rates ranged from

55% to 93% across 18 campaigns

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

69% AVERAGE


What’s new in social measurement?

Using the comScore panel and proprietary technology,

comScore is the first research company to provide

continuous measurement of the impact of earned media

among Fans and their Friends on Facebook.


Publisher Share of Display Ad Impressions

Source: comScore Ad Metrix, U.S., Q3 2011

Facebook is the largest publisher

of online display ad impressions,


SOCIAL ESSENTIALS comScore now measures most major engagements on Facebook

Ad Exposed

Sponsored Stories

Fans

Friends of Fans


SOCIAL ESSENTIALS What we know to be true…

Brand

No. of Fans*

Monthly Unique Visitors

To Facebook Fan

Pages**

Coca Cola 24.0 Million 39,000

Oreos 17.5 Million 137,000

Best Buy 2.7 Million 175,000

*Source: Facebook

** Source: comScore

Facebook Fans are NOT regular visitors to Facebook Fan

Pages. Marketers need to reach out Fans in their News Feed

with relevant content!


Friends of Fans represent a way for brands to efficiently amplify their

reach substantially beyond Fans

FANS

Exposed Fans

Earned

Impressions Reach Frequency GRP

Southwest 661K 2,457K 0.3% 3.7 1.1

Bing 1,070K 3,353K 0.5% 3.1 1.6

Starbucks 4,841K 13,664K 2.2% 2.8 6.3

FRIENDS

Exposed Friends

Earned

Impressions Reach Frequency GRP

Southwest 853K 1,460K 0.4% 1.7 0.7

Bing 2,035K 3,183K 0.9% 1.6 1.5

Starbucks 8,846K 18,073K 4.1% 2.0 8.4

Friends expand

Fans Reach by

133% to 186%


Fans and Friends of Fans exposed to earned brand impressions on Facebook

exhibit higher brand engagement, e.g. site visitation, than the average

Internet user

Why do friends of fans have a higher orientation toward the brand?

1. Birds of a feather flock together

2. Trusted persuasion

Baseline

Internet User

Friends

Friends

Friends

Source: comScore Social Esessentials May2011


Conclusions

The digital world is expanding rapidly, driven by new users in some

regions and / or by growth in time spent in others

Younger consumers in India are leading the revolution, with higher

engagement coming from 15-34 age segments

Social Networking is a key driver of PC and Mobile activity,

cannibalizing many other activities

Online advertising is effective, both as a direct response and

branding strategy

For online advertising to get its fair share of advertising dollars

– Ad effectiveness needs to be measured “beyond the click”

– Accurate measurement of the delivery against media plan is critical

– Facebook represents an efficient way to amplify reach and trusted

persuasion

Thank you!

Gian Fulgoni

Executive Chairman and Co-Founder, comScore Inc.

adtech india-2012-keynote-comscore

Documents

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comscore media metrix

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india internet users

worlds internet population

work home growth

comscore key trends

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