como a publicidade online realmente funciona, por gian fulgoni

Gian Fulgoni, Chairman, comScore, Inc.

How Online Advertising Works

Digital Age 2.0

Sao Paulo, August 27, 2009

2© comScore, Inc. Proprietary and Confidential.

Topics

�Who is comScore?

�State of Online Advertising Today

�Online Display Advertising and the Relevance of the Click

�The View-Through Impact of Display Advertising


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� A leader and innovator in Internet audience measurement

� Corporate headquarters: Reston, USA

– Offices in London, Paris, Tokyo, NYC, Chicago, San Francisco, Seattle

Toronto, Dusseldorf, Singapore

� Year founded: 1999 Current employees: 500+

� Successful IPO (NASDAQ: SCOR) June 2007

� Number of clients: 1,200+ (200+ advertising agencies)

� The world’s recognized source for Internet audience intelligence

– Monthly reporting on 40 countries, powerful interface & analytic tools

– Hundreds of custom research studies completed each year for advertisers, publishers

– Leading source for US e-commerce data, online behavior, video, mobile, widgets etc.

– comScore data cited 200 times per day in the global media

� 100% digital DNA

Who is comScore?


comScore’s Powerful Platform: Global Panel of 2 Million Internet Users

Largest of Its Kind

360° View of Consumer Behavior360° View of Consumer Behavior

Media Exposure

Media Exposure

Online Transactions

Online Transactions

Search Behavior

Search Behavior

DemographicsLife Stages

DemographicsLife Stages

Streaming Video

Streaming Video

Web Visiting and Viewing

Web Visiting and Viewing

The Only Global Measurement of Audience and e-Commerce

The Only Global Measurement of Audience and e-Commerce

37 Media Metrix Reported CountriesPlus Global Regions

170+ Countries with Sample Presence



The State of Online Advertising Today


Online Display Advertising in Brazil Growing Very Strongly

Brazil Online Display Ad Spend $R ‘000Source: IAB

+44% vs. YA


Online display advertising accounts for 4% of all media spending in Brazil (7% with search) but lags TV which accounts for 60%

Including search, onlineadvertising estimatedto be 7% of all media


MEDIUM

2008 Spending ($Billions)

Percent

Direct Mail $60.0 20%

Newspapers $34.4 12%

TV - Distribution $28.8 10%

Internet $23.4 8%

TV Networks - Cable $21.4 7%

TV Networks - Broadcast $18.0 6%

Radio $17.2 6%

Yellow Pages $13.8 5%

Consumer Magazines $12.7 4%

Trade Journals $10.0 3%

Out of Home $7.2 2%

Miscellaneous $50.0 17%

TOTAL $296.8 100%

In the U.S., Internet was 8% of all advertising spending and 34% of all TV ad dollars in 2008. Source: IAB


U.S. Internet Ad Revenues Surged in 2007 but Growth Slowed in 2008 and Went Negative in 2009

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1

2

3

4

5

6

7

0

1

2

3

4

5

6

7

Q1

98

Q3 Q1

99

Q3 Q1

00

Q3 Q1

01

Q3 Q1

02

Q3 Q1

03

Q3 Q1

04

Q3 Q1

05

Q3 Q1

06

Q3 Q1

07

Q3 Q1

08

Q3 Q1

09

Quarterly Ad Revenue ($Billions)


Growth in U.S. Online Ad Spending Went Negative in Q1 2009

+29% +27% +23% +13% +11% +3% -5%

$ Billions and % Chg vs YA$ Billions and % Chg vs YA

Source: PricewaterhouseCoopers and the Internet Advertising Bureau (IAB)


2008 U.S. Measured Media Spend: $186 Billion

Direct

Response

Branding

$118 B

$68 B

2008 U.S. Online Media Spend: $26 Billion

5%

30%

$6 B

$20 B

Source: Lehman Brothers, ThinkEquity Partners

Online Advertising is Leaving Branding Dollars on the Table

Online as Percent of Total



Display Advertising and the Relevance of the Click


Business Week: So Many Ads, So Few ClicksForrester: 35% of Marketers still use click for evaluating branding campaigns

Source: DoubleClick DART for Advertisers, January – July 2008


Ad Clickers Follow the 80/20 Rule

• Despite only representing 16% of the Internet population, moderate to heavy clickers account for 80% of display ad clicks

• Clickers are predominately younger (24-44 age range)• Clickers tend to be lower income (under $40K)

• Two-thirds of Web users don’t click

Source: comScore Natural Born Clickers (2008)

Click Frequency



The View-through Impact of Display Advertising

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June 2009 Journal Of Advertising Research: comScore’s “Whither the Click?”

� Journal of Advertising Research

“What We Know About Advertising: 21 Watertight Laws for Intelligent Advertising Decisions”

– The 21 most important pieces of advertising research

� comScore’s “Whither the Click?”

– 200+ comScore studies conducted to assess impact of paid

search and online display ads on:

• site visitation

• trademark search

• online and offline sales

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comScore’s Analytical Design

� Real world analysis: comScore panelists divided into matched groups (exposed and non-exposed to advertising)

– Search only

– Display ads only

– Search and display ads

– Neither

� Passively measured behavior, no surveys involved:

– Online activity through comScore behavioral panel

– Linked to in-store buying through retailer loyalty cards and POS scanner data

� Analytical design compares behavioral changes in test and control groups

from pre-campaign to campaign time periods


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The impact of display ads on site visitation: There is a significant impact within the 1st

week, with a substantial lift being observed over the four weeks following initial ad exposure …..even with minimal clicks

Results from 139 comScore Campaign Effectiveness Studies

2.1%

3.1%

3.9%4.5%

3.5%

4.8%

5.8%

6.6%

Week o f f irs t exposure

Weeks 1-2 af ter f irs t exposure



Advertiser Site Reach

Contro l Test

% Lif t: 65.0% % Lif t: 53.8% % Lif t: 49.1% % Lif t: 45.7%


Display Ads Lift Site Visitation Across All Verticals

4 .5%

0 .9%

1.3%

0.6%

9.1%

7.0%

5.8%

4 .8%

6 .6%

1 .9%

2 .3%

1 .1%

13 .8%

10 .0%

7.2%

5.8%

A v e rag e , N = 139

A u to m o t iv e , N = 38

F inanc e , N = 16

CP G & R es tau ran t , N = 10

Re ta il & A p p a re l, N = 21

M ed ia & E n te rta inm en t , N = 24

E lec t ro n ic s & S o f tw a re , N = 14

Trav e l, N = 9

A dve rtis e r S ite R e achW eeks 1 -4 a fte r f irs t e x p o su re

C on tro l T est

% L if t: 4 6%? L i f t: 2 .1 %

% L if t: 1 1 4%? L i f t: 1 .0%

% L if t: 8 6%? L i f t: 1 .1%

% L if t: 7 7%? L i f t: 0 .5%

% L if t: 5 2%? L i f t: 4 .7 %

% L if t: 4 2%? L i f t: 2 .9%

% L if t: 2 5%? L i f t: 1 .5 %

% L if t: 2 1%? L i f t: 1 .0%


Display ads successfully lift trademark search activity

0.2%

0.4%

0.5%

0.6%

0.3%

0.5%

0.7%

0.9%

Week of f irst exposure

Weeks 1-2 af ter f irst exposure



% Making a TM/Brand Search

Contro l Test

% Lif t: 52.3% % Lif t: 46.0% % Lif t: 40.3% % Lif t: 38.1%

Results from 139 comScore Campaign Effectiveness Studies


Display ads successfully build sales…. both online and offline

$ 9 9 4

$ 9 , 9 0 5

$ 1 , 2 6 3

$ 1 1 , 5 5 0

O n lin e O f f l in e

$ p e r 0 0 0 E x p o s e d

C o n t ro l Te s t

% L if t : 2 7 . 1%

% L if t : 1 6 . 6%


For multi-channel retailers, higher OFFLINE sales lifts are seen from search vs. display advertising, but combined, synergy provides an even greater lift

+119%

Incremental Lift in Retailers’ Offline Sales per (000) Exposed

Source: comScore Ad Effectiveness Solutions


For multi-channel retailers, the higher reach of display ads often helps lift

total offline sales more than does search. But, synergy gains can be obtained by using display overlaid on a search campaign

Source: comScore Ad Effectiveness Solutions

+11%

% of Households Reached Incremental Impact on Offline Sales per (000) Exposed

198

Total Sales Volume Lift Index

• 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

Note: 0 equals par in above chart.


82% of Online Ad Campaigns Measured by comScore have Generated an Average Lift of 22% in CPG Brand Sales in Retail Stores

� Campaigns we have analyzed:

– Cookie Mixes, Cereal, Frozen Snacks, Pizza, Tea, Toothpaste, Juice Drinks,

Deodorants, Snack Bars, Pasta, Meals and many more

� Online advertising (banners and rich media) increased (i.e. lifted) offline sales in 80% of all campaigns

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-20%

0%

20%

40%

60%

80%

100%

Average $ lift was22%

82% of campaigns showed a positive sales lift

Percent Lift in Dollar Sales

Offline Sales Effectiveness Studies

Source: comScore CPG Ad Effectiveness Study


Preliminary comScore Findings: Short Term Retail CPG Brand Sales Lift From Online Advertising Matches Long Term TV Impact

BehaviorScan tests conducted over one year period. comScore studies over three monthsAssumes 40% Internet Reach Against Target


How Online Advertising Works: Summary

� Forget the Click

� Focus on sales or behavioral impact over time

� Online branding campaigns can be very effective:

– Internet sales impact at retail on a par with TV

� Use R / F metrics in pre-planning and post-analysis of media plan

� Don’t forget importance of creative



For a copy of “Whither the Click?” or this presentation please e-mail:

[email protected]

For a schedule of webinars, complimentary data & press releases please visit:

www.comscore.com

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