An introduction to

Online Media

2Claude Sabbah

3

Agenda

The market The landscape The terminology The tools The formats Tomorrow

4

The players

5

The players

Brands

Sales Houses

Specialists

Media agency

Ad agency

Media Consumers

initiators shapers transmitters allowers

6

Broadcast

Hypergene.net

7

Intercast

Hypergene.net

8

The Person @ the center

Logic+Emotion

9

The “newcast”

Logic+Emotion

10

The landscape

11Source: BIM 15

Online penetration evolution

12

Coverage per age & sex

Source: BIM 15

Internet coverage on various targets (by gender on total Belgian pop.)

95%94%

78%

54%51%

17%

93%

89%

64%

39%

29%

7%

94%91%

71%

46%

40%

11%

15-24 25-34 35-44 45-54 55-64 65+

targets

co

v. (

%)

Male % Female % Total %

13

Internet connections

Source: ISPA 2005

14

European perspective: 2010

Source: JupiterResearch Broadband in Europe

15

Media consumption

15.4

18.7

11.7

5.14.5

TV Radio Internet Newspaper Magazine

Source: EIAA, Belgium results 2005

Hours spent on each mediumon an average week

Increase in time spent online 2004 vs. 2005: +11%

16

Media investments

Source: IAB/CIM 2005

17

Belgium vs. USA media mix

40.2

%

24.3

%

11.8

%

11.5

%

8.8%

2.3%

1.2%

38.1

%

29.9

%

8.8%

13.5

%

5.2%

4.0%

0.4%

TV Newspaper Radio Magazines Outdoor Internet Cinema

Belgium USA

Source: IAB & Future Media Report

18

[Base: All Respondents in Belgium using each type of media]

“A day in the life...”

Source: EIAA, Belgium results 2005

30%

14% 22%

89%

5%

27%

38%

45%

2%4%

43%

51%

11%

54%

66%

9%

16%

67%

14%

48%

0

10

20

30

40

50

60

70

80

90

100

'When you wake up' (6am -10am)

'During the Day' (10am -5.30pm)

'During the Evening' (5.30pm -9pm)

'During the Night' (9pm - 6am)

Watch TV Read Newspapers Read Magazines

Listen to Radio Use the Internet

19

When Mainly Watching TV When Mainly Using the Internet

[Base: All Belgium internet users][Base: All Belgium TV Viewers]

Multi-tasking reality

Source: EIAA, Belgium results 2005

8%

33%

25%

9% 16%4%

3%

37%

20

Access & usage on 12+

Source: Cyberscan 11

Accessing the internet from

44

26

3

17

3

54

49

8

25

60

15

HOME

WORK

CAF

FRIENDS

GSM

TOTAL WEB

E-Mail

SKYPE

Messenger/ICQ

SMS

MMS

21

Belgium: campaign budget

Source: IAB 2005

22

To

tal O

nlin

e A

d S

pe

nd

ing

Pe

rce

nta

ge

of

To

tal A

d S

pe

nd

ing

(in billions)

Source: JupiterResearch Internet Advertising Model, 8/05 (Western Europe only)

Europe: Online vs. Offline

Ū 2.3

Ū 3.2

Ū 4.1

Ū 4.9

Ū 5.5

Ū 6.0

Ū 6.5

4.5% 5.1% 5.5% 5.8% 6.0%3.8%

2.8%Ū 0

Ū 2

Ū 4

Ū 6

2004 2005 2006 2007 2008 2009 20100%

10%

20%

30%

40%

50%

Total online ad spending Percentage of total ad spending

23

Ū 2,349

Ū 1,211

Ū 760

Ū 110 Ū 83 Ū 53

Ū 519

Ū 306

Ū 72 Ū 72

Ū 250Ū 138Ū 125 Ū 90

Ū 269

Ū 116Ū 7

17%

22%

19%

21%22% 22%

21%20%

23%

27%

13%14%

15%

20%

22% 22%

20%

€ 0

€ 500

€ 1,000

€ 1,500

€ 2,000

€ 2,500

UK

Ger

man

y

Fran

ce

Switze

rlan

d

Aus

tria

Irel

and

Ital

y

Spai

n

Port

ugal

Gre

ece

Swed

en

Nor

way

Den

mar

k

Finl

and

Net

herl

ands

Bel

gium

Lux

embo

urg

0%

10%

20%

30%

To

tal O

nlin

e A

d S

pe

nd

ing

in 2

01

0

(in millions)

Co

mp

ou

nd

An

nu

al G

row

th R

ate

, 2

00

5 t

o 2

01

0

Source: JupiterResearch Internet Advertising Model, 8/05 (Western Europe only)

European online ad market

24

The Terminology

25

Reach

Source: Southern Methodist University & IAB.net

The percentage (%) of an audience exposed one or more times to a communication vehicle within a

specified period of time

26

Average number of times those who are reached have an opportunity to be exposed to a message

within a given time period

27

OTS

when a page is successfully displayed on the user's computer screenwhen a poster is available for viewing in a 2m2when a radio spot is aired (H), etc.

28

Cost per Thousand :

Media term describing the cost of 1000 gross contacts (impressions).

For example a Web site that charges 1500 euros and reports 100 000 gross contacts has a CPM of 15 euros.

CPM = (cost / number of gross contacts) x 1000

29

Average online CPM

Average CPM for webvertising campaigns - Skyscraper

Source: FastBridge

5,0 €

6,5 €

8,0 €

12,0 €

15,0 €

21,5 €

23,0 €

35,0 €

39,0 €

50,0 €

Run of Network

Application

Portal

Community

Entertainment

Global average

Content Specific*

Dailies

Business/IT

Finance

We

bsi

te T

yp

e

CPM

* Women, Men, Youth, Sports, Auto, Real Estate, Travel

30

SOVNumber of gross contacts received by an

advertisement on a site (or site section) / Total impressions served by the site (or site section)

during the same period, expressed in %

31Source: IAB Belgium

Others

(Ad) audience : Number of unique users or visitors exposed to a site (or an ad) within a specific time period

(Ad) Click : A measurement of the user-initiated interaction (such as clicking on) an element causing a

re-direct to another Web location or another frame or page within the advertisement. (Ad) Click Rate :

Gross click rate = Number of clicks / Number of impressions, expressed in % Net click rate = Number of clicks / Number of unique users, expressed in %

(Ad) impression or Gross contact : An ad which is served to a user's browser. Ads can be requested by the user's browser

(referred as pull ads) or they can be pushed, such as e-mail ads. Cost per click or CPC :

Cost of advertising based on the number of clicks received. Cost per action or CPA

Online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations

Unique Visitor : Individual or browser which accesses a Web site within a specific time period.

32

GRP

Definition the reach of 1% of a target audience. Gross Rating Points (grps) is

the sum of reach of a media schedule. Essentially synonymous with TRPs (target rating points).

How to calculate it? GRP = % Reach X Frequency Cost-Per-Point (CPP) – the cost of delivering one GRP.

Formula: CPP= media cost/GRPs

Source: www.magazine.org/retail/2151.cfm

33

SI =

Percentage of Users in a Demographic Segment

Percentage of Population in the Same Segment

X 100

Selectivity Index

34

Long tail

In these distributions a high-frequency or high-amplitude population is followed by a low-frequency or low-amplitude population which gradually "tails off." In many cases the infrequent or low-amplitude events—the long tail, represented here by the yellow portion of the graph—can cumulatively outnumber or

outweigh the initial portion of the graph, such that in aggregate they comprise the majority.

35

Long tail

Large audiencemainstream

Small audienceinfluentials

36

The tools

37

Audience knowledge

BIM (Belgian Internet Mapping by Insites)

Extensive study among Belgian Internet users, which provides a detailed overview of the Belgian Internet population.

Deliverables: Insights into socio-demographic information on Internet users and their

attitudes and behaviors related to the Internet Data-collection on basis of online (pop-up & e-mail data collection) as well as

offline (by phone) methods in order to guarantee representative figures The largest Internet study in Belgium, more than 140.000 people participated

in the pop-up survey and more than 10.000 in the e-mail survey Frequent updating of the B.I.M. figures every six months and evolution

tracking of B.I.M. figures with previous periods

Brand Campaign Site

38

Audience Measurement

CIM (Centre d’information des media)

Metriweb Tactical measurement system based on cookies and providing data

on 250+ Belgian sites at three levels Unique Visitors (+ regular), Visits & Page Requests

Objective, comparable and authentified data Metriplan

Deduplication tool which uses the Metriweb raw data Allows to evaluate the performance of a multi-site media selection

over a perdiod of time Metriprofile

Provides the media planners with socio-demographic data for each site participating in the Metriweb study

Brand Campaign Site

39

Site Traffic measurementBrand Campaign Site

Google Analytics

40

Cross Media Research

Pre- & Post Advertising Test Advertising Tracking Cross Media Campaign

Evaluation

Brand Campaign Site

Metrix Lab

41

Online Impact Surveys

Aided and Unaided Brand Awareness

Advertising Awareness Message Association Sponsorship Awareness Brand Favorability Brand Attributes Purchase/Behaviour Intent

Brand Campaign Site

Metrix Lab

42

Buzz metricsBrand Campaign Site

43

Buzz metricsBrand Campaign Site

44

3rd Party technologyBrand Campaign Site

IAB 2006

45

The Formats

46

Display Ads

Defines all forms of online advertising that is integrating various kinds of elements (images, video, texts, animations, forms, layers, interactions, etc.) and that follows common formatting guidelines

Measured in pixels and kilobytes

Mostly known formats Leaderboard, Skyspcrapers Overlayer IMUs, Showcases Buttons & Banners

47

Universal Ad Package

48

Content Integration

Advertising woven into editorial content or placed in a contextual envelope.

Also known as "Web advertorial”

49

Emailing

Advertising campaign distributed via e-mail

Email Addresses selection is possible on socio-demographic, behavioral, professional sector criteria

Main Email list Brokers JustForYou (Skynet) Permesso (WegenerDM)

50

Keyword

SEO - Natural Positioning Optimize the html code

to ease the work of the search engine spiders

Long term approach Relevancy index optimization Cost efficient investment

SEA - Performance driven Buy relevant search queries “You pay for what you get” - Cost

per click Contextual & short term / mid

term driven Managed costs

SEOSEA

SEA

51

Channel evolution

Source: IAB 2005

52

Tomorrow

53

Stages in Internet use

Communication / Community

Entertainment / Personal

Expression

Information / Research /

Everyday Tasks

Email

IM

Posting your profile on a

community site

Creating your own IM / chat room avatar

Visiting an Internet chat

room

Making posts to an online

message board

Becoming a lead contributor to an online

community (e.g., regular posts, moderator)

Setting up email forwarding group for “joke” emails

Using Google to researchBuying

something on Ebay

Buying a book/CD

from AmazonRegularly

shopping for groceries online

Internet banking

Joining an Internet payment service

(e.g., Paypal)

Selling something on

Ebay

Setting up personal news

views/alertsRegularly

reading news online

Bookmarking your own library of

“favourite” sites

Writing your own blog/newsletter

Building your own website

Booking a flight online

Sharing iTunes

playlists

Playing viral games that

were emailed

Joining an online RPG community

(e.g., SimsOnline)

Downloading games

Watching streaming

video

Downloading music

Listening to Internet radio

Uploading photos to album site

Subscribing to online movie service

Video chat/Webcams

Web surfing

Visiting websites

others have recommended

Browsing dating /

“friends” sites

Signing up for email

newsletter

Basic

Experienced

Enthusiast

Source: Isobar

Creating your own TV channel

54

Future of Media

Future Exploration Network

55

“It makes no sense today to advertise on tv if you don’t offer a gate to interactivity”

Guillaume Van der Stighelen

56