what advertisers think tm · advertiser perceptions, inc. advertiser perce pp,tions, inc. was...

WHAT ADVERTISERS THINKTM

AIR Wave Ten

2009 Advertiser Intelligence Reports Wave Ten1

April 2009

Advertiser Perceptions, Inc.

Advertiser Perceptions, Inc. was founded in 2001 based on the observation that the media executives p ,and salespeople that understand advertisers best, are also the most successful at selling advertising. Still driven by the same founding philosophy, Advertiser Perceptions is the leading media intelligence firm in providing media company executives and their salespeople with research-based insight about what advertisers think and strategic guidance for increasing advertising sales, market share and competitive advantageadvantage.


Today’s DiscussionToday s Discussion…

• Advertiser Optimism Report• What do Online Display Advertisers Think?

– Portals

– Ad Networks

– Social Media

– Content Sites

• Measures– Consideration

– Conviction

– Selection Criteria

– Perceptions of Digital Media Categories

– Satisfaction

• General Takeaways


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MethodologyMethodology…Advertiser Optimism Report (AOR)

Method

Advertiser Intelligence Reports (AIR)

MethodMethod• All interviews completed online• Incentives: Summary of Findings

Sample: Advertiser and Agency contacts from Advertiser Perceptions and third-party

Method• All interviews completed online• Incentives: Cash and Information

Sample: Advertiser and Agency contacts from Advertiser Perceptions and third-partyAdvertiser Perceptions and third-party

Databases.

Qualification: 100% Involved in Media Selection Decisions

Advertiser Perceptions and third-party Databases.

Qualification: 100% Involved in Media Selection Decisions

Respondents: 200 Media Decision Makers

2009 Field Schedule • February (completed) • April

Respondents: 1,500+ Media Decision Makers

AIR Waves, Past Field Dates• Wave Ten, October/November 2008• Wave Nine, April/May 2008April

• June• August• October• December

Wave Nine, April/May 2008• Wave Eight, October/November 2007


AIR: Media Decision Maker ProfileAIR: Media Decision Maker Profile

Region: East (38%) West (21%) Profiles Overall Online Print Television Mobile*Region: East (38%), West (21%), Midwest (21%) and South (20%)Online Media Decision Making Primary Focus

o Display 56%

Profiles Overall Online Print Television Mobile

Marketer 40% 42% 41% 33% 30%

Agency 60% 58% 59% 67% 70%o Display 56%o Search 24%o E-mail 12%o Video 6%

Television Media: National Decision

VP and Above 14% 14% 15% 17% 19%

Director/ Supervisor

33% 32% 34% 36% 37%Television Media: National Decision Making Involvement

pManager/ Planner/ Buyer

53% 54% 51% 48% 44%

Years Involved in Media Decisions

5 5 6 6 5

Q: Would you consider your company as an agency or a client? How long have you been involved in media selection for (segment) advertising? What is your job title? With which one online (web) media are you most involved?*W9, update W13 05/2009


Advertiser Optimism Report (AOR)Advertiser Optimism Report (AOR)…

2009 Advertiser Optimism ReportS h d l

Change Is Coming.Advertiser Optimism Will Improve.AIR Clients Will Be the First to See It Arrive.

Schedule FebruaryApril*JuneAugustOctober*OctoberDecember

Tracking Surveys will be based on approx 200 respondents

*In conjunction with AIR survey

Available to AIR Wave 11 and 12 clients


What is Advertiser Optimism?Wh M Pl t I th D Ad S di When More Plan to Increase than Decrease Ad Spending

Ad Spending by Media Next Six Months

Increase Maintain Decrease

Medium A 68% 25% 7%Advertiser Optimism

Maintain Spending

Increase Spending

Medium B 16% 51% 33%Advertiser Pessimism Decrease Spending

Optimism | Pessimism


Advertiser Optimism Next Six Months…O li C bl d M bil Online, Cable and Mobile

Percentage of Ad Budget : Next AIRAOR AIR AIRPercentage of Ad Budget : Next Six Months by Medium Increase/ Maintain/ Decrease + = - + = - + = - + = -

Total (Avg) 26% 39% 35% 26% 44% 30% 28% 46% 26% 30% 47% 22%

Broadcast TV 16% 44% 41% 17% 49% 35% 14% 56% 30% 22% 53% 25%

Cable TV 26% 51% 23% 26% 50% 24% 28% 52% 20% 34% 49% 17%

AIR Wave Eight

AOR February 2009

AIR Wave Ten

AIR Wave Nine

Cable TV 26% 51% 23% 26% 50% 24% 28% 52% 20% 34% 49% 17%

Local Newspapers 5% 36% 59% 11% 45% 44% 14% 46% 40% 14% 49% 37%

Magazines 15% 33% 53% 18% 46% 36% 22% 49% 29% 24% 52% 24%

Mobile 54% 29% 17% 51% 37% 12% 53% 38% 9% 55% 38% 7%

National Newspapers 5% 35% 60% 8% 45% 47% 10% 46% 44% 10% 53% 37%

Online 52% 34% 14% 68% 25% 8% 72% 24% 4% 76% 21% 3%

Online Display 51% 32% 17% -- -- -- -- -- -- -- -- --

Online Search 53% 37% 10% -- -- -- -- -- -- -- -- --Outdoor 17% 54% 29% 17% 51% 32% 19% 55% 26% 22% 56% 22%

% % % % % % % % % % % %

Q: Imagine the amount of your company's/your client's total (SEGMENT) advertising budget as a whole is a pie, and each of these media types is a share of the pie. In the next six months, would you expect the share spent on each to increase, decrease or stay the same as compared to the previous six months?Red: More will Decrease than Increase Ad Spending Next Six Months Green: More will Increase than Decrease Ad Spending Next Six Months AIR W T Ni d Ei ht ( th d l f d t )

Radio 19% 42% 39% 16% 48% 36% 17% 50% 33% 16% 54% 30%


AIR Waves Ten, Nine and Eight (see methodology for dates) BASE: ALL RESPONDENTS

Advertiser Optimism Next Six Months…G t O ti i A i f C t i M di Greater Optimism among Agencies for Certain Media

Percentage of Ad Budget : Next Agency AdvertiserTotal MarketerAgencyTotalSix Months by Medium

Increase/ Maintain/ Decrease + = - + = - + = - Total (Avg) 26% 39% 35% 26% 43% 31% 26% 32% 42%

Broadcast TV 16% 44% 41% 14% 51% 35% 19% 26% 55%

Agency AdvertiserTotal MarketerAgencyTotal

Cable TV 26% 51% 23% 27% 55% 18% 24% 42% 33%

Local Newspapers 5% 36% 59% 5% 38% 57% 4% 32% 64%

Magazines 15% 33% 53% 16% 34% 49% 11% 30% 59%

Mobile 54% 29% 17% 52% 35% 13% 58% 16% 26%

National Newspapers 5% 35% 60% 4% 42% 54% 7% 21% 71%

AgencyMarketer

National Newspapers 5% 35% 60% 4% 42% 54% 7% 21% 71%

Online Display 51% 32% 17% 51% 33% 17% 52% 30% 17%

Online Search 53% 37% 10% 56% 34% 10% 47% 42% 11%

Outdoor 17% 54% 29% 21% 57% 22% 8% 48% 44%

Radio 19% 42% 39% 16% 47% 38% 27% 31% 42%

Q: Imagine the amount of your company's/your client's total (SEGMENT) advertising budget as a whole is a pie, and each of these media types is a share of the pie. In the next six months, would you expect the share spent on each to increase, decrease or stay the same as compared to the previous six months?Red: More will Decrease than Increase Ad Spending Next Six Months Green: More will Increase than Decrease Ad Spending Next Six Months BASE: ALL RESPONDENTS February 2009


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Advertiser Optimism Next Six Months By Media Company…Top 10 Ranked by Level of Optimism*

1. Google2. Yahoo!3. AOL/Platform A4. MSN/Microsoft5 MTV N t k5. MTV Networks6. Discovery Communications

Scripps Networks 7 ESPN7. ESPN

Fox 8. NBC Universal

Viacom

*O ti i L l P t I i l P t D i Ad S d N t Si M th

Viacom 9. Time Inc.10.A&E Networks


*Optimism Level = Percent Increasing less Percent Decreasing Ad Spend, Next Six MonthsOf all Media Companies Measured: Highest +40 | Lowest -35 | Average -9 Of Top 10 Media Companies: Highest +40 | Lowest -10 | Average +3Media Companies Measured: 27

The Advertiser Optimism Report | February 2009 Next Six Months Ad Spending—Observations

AOR February 2009 vs. AIR Wave Ten (November 2008) | Overall 1. Total media optimism’s decline is easing slightly.p g g y2. Online, Cable and Mobile remain optimistic.3. While optimistic, Online is experiencing the steepest decline in optimism of any media. 4. Cable is experiencing a very slight increase in optimism.5. Radio, Mobile and Outdoor are unchanged to very slightly down., g y g y

AOR February 2009 | Agency/Marketer Greater total optimism among agencies is being driven primarily by the following mediawhere significantly more marketers are pessimistic than are agencies…1 B d t TV1. Broadcast TV2. Cable TV3. Magazines4. Online Search 5 O td5. Outdoor

AOR February 2009 | Media Companies 1. Advertisers are optimistic about Google, Yahoo, AOL, MSN and MTV Networks2 M t ti i f O li d C bl di i


2. Most optimism for Online and Cable media companies

Advertiser Consideration and ConvictionAdvertiser Consideration and Conviction …

IN THIS SECTIONConsiderationConviction (“Will Place Ads”)


Online Display Consideration and Conviction and Trends: Portals and Social Media are Outpacing Content and Ad Networks

Index of Percent Considering Advertising and Conviction (Will Place Ads)Index of Percent Considering Advertising and Conviction (Will Place Ads)

Consideration Conviction (Will Place Ads)

Media Type Wave Ten Wave Nine Wave Eight Wave Ten Wave Nine Wave Eight

Portals 726 762 590 1135 1238 948

Ad Networks 109 139 99 136 164 120

Social Media 397 272 211 531 390 261

Content Sites 96 97 111 91 91 110

Q: Please select all the (media brands) in which you are considering or would consider placing ads in the next six months. Q: Please select all the (media brands) in which you will place ads in the next six months. Base: All Respondents by applicable media | Index 100 = average of all related media brands

Content Sites 96 97 111 91 91 110


Online Display Consideration by Ad CategoryTop Three Ad Categories Differ by Digital Media

Index of Percent Considering Advertising

Media TypeApparel/Fashion Auto Parenthood CE CPG Entertain Financial

Home / Appliance

Alcoholic Beverage

Pharma(OTC/DTC) Retail Beauty

Portals 686 705 484 597 608 724 775 516 438 591 583 541

Ad Networks 105 87 78 89 55 105 106 60 93 81 104 80

Social Media 412 382 267 441 276 605 255 99 289 327 340 346

Q: Please select all the (media brands) in which you are considering or would consider placing ads in the next six months. Base: All Respondents by applicable media | Index 100 = average of all related media brands

Content Sites 119 82 104 86 123 73 81 116 104 104 90 118


Media Decision MakingMedia Decision Making…

IN THIS SECTIONIN THIS SECTIONGeneral Selection Criteria Perceptions of Media Brands based on Criteria


Media Selection Criteria…

Percent Rating Media Selection Criteria as being Very Important (5 on a 5-Point Scale)

Audience and Results are Key

Online Display Print Television

Ad ResultsAd Results AudienceAudience AudienceAudience

AudienceAudience Ad ResultsAd Results Ad ResultsAd Results

Marketing ServicesMarketing Services ProgrammingProgramming


Q: Please think about MEDIA TYPE advertising spending on (SEGMENT) generally. Please tell us how important each of these criteria are in determining where to spend your company's advertising dollars.Base: All Respondents by Media Decision Making Involvement

Top Online Selection Criteria in Detail…

Criteria Importance (Rated 5 on 5 Point Scale) Total Agency Marketer Results (NET) 80% 79% 82%

More Marketers than Agencies Consider Ad Results Very Important

( ) Impact on sales 57% 53% 65% Return on advertising investment 56% 51% 63% Conversion rates 53% 51% 57% Impact on brand awareness 48% 47% 49% Click-thru rates 47% 45% 51%

Impact on product awareness 46% 46% 44% Impact on product awareness 46% 46% 44% Number of visitors 39% 37% 41% Impact on offline response and/or retail traffic 38% 36% 39% Number of Impressions 36% 37% 35% Number of Page Views 31% 29% 34% Time spent on website 26% 24% 28%

Marketing services (NET) 64% 67% 60% Targeting opportunities (Internet-based, Geographic, SIC, Edit, Psychographic, behavioral, etc.), 44% 46% 40% Reporting tools 30% 29% 32%

Custom campaign research/business intelligence 21% 21% 18% Custom campaign research/business intelligence 21% 21% 18% Campaign management tools 20% 21% 19% Comes to you first with new ideas 19% 20% 17% Sponsorships/Advertorials/Microsites 17% 20% 14% Value-Added merchandising (such as research, events, promotional offerings) 17% 18% 15% Bundled deals with print, television, other websites, events, etc. 13% 13% 13%

10% 11% 9%


Inventory Reservations 10% 11% 9%


Online Display Media Selection Criteria…

Percent Rating Media Selection Criteria as being Very Important (5 on a 5-Point Scale)

Only a Few Differences Between Marketers and Agencies

O li Di l A M k tOnline Display Agency Marketer

Results (NET) 79% 82%

Audience (NET) 72% 73%

Marketing Services (NET) 67% 60%Marketing Services (NET) 67% 60%

Audience Composition 62% 63%

Ad Position, Placement and Types 58% 48%

Content (NET) 55% 55%

Cost/price (NET) 48% 54%

Customer Service (NET) 48% 45%

Audience Reach 45% 46%


Audience Engagement 43% 45%

Image/environment (NET) 39% 42%


Online Display Perceptions on Selection Criteria…Overall Drivers Reveal Audience Reach Strength

Index of Percent Rating Media Brands 7 10 on a 10 Point ScaleIndex of Percent Rating Media Brands 7-10 on a 10-Point Scale

Online DisplayAudience

CompositionAudience

ReachAudience

Engagement ResultsMarketing Services Cost/Price

Ad Placement Content

Customer Service

Image Environment

Portals 96 108 88 95 102 99 103 91 97 87

Ad Networks 88 105 89 109 110 135 110 83 107 82

Social Media 102 112 119 99 100 117 88 84 91 92

Q H ll d h di b d t th f ll i it i ?

Content Sites 105 99 103 102 105 94 100 106 101 107


Q: How well does each media brand rate on the following criteria? Q Please select the one primary reason why you would consider [media property] for advertising.Base: Considering Media BrandIndex 100 = average of all related media brands

Online Display Perceptions on Selection Criteria…Conviction Leaders possess Strong Results

Index of Percent Rating Media Brands 7-10 on a 10-Point Scale

Online Display Ad Results

Leading Portal 133Leading Portal 133

Leading Ad Network 137

Leading Social Media 112

Leading Content Site 165

Q: How well does each media brand rate on the following criteria? .Base: Conviction Media BrandIndex 100 = average of all related media brandsTop Three Media Brands per Category

Average of Leaders 137


SatisfactionSatisfaction

IN THIS SECTIONAdvertiser Satisfaction


Online Display Advertiser Satisfaction…More Agencies than Marketers are Satisfied

Index of Percent Rating Satisfaction with Media Brand 7-10 on a 10-Point ScaleIndex of Percent Rating Satisfaction with Media Brand 7 10 on a 10 Point Scale

Online Display Total Agency Marketer

Portals 102 104 96

Ad Networks 98 100 91

Social Media 98 101 91

Q: On a scale of 10 to 1 with 10 being the best, how satisfied are you, overall, with each media brand as a vehicle for (SEGMENT) advertising?

Content Sites 99 100 95


g , y , , ( ) gBase: Past Advertisers Index 100 = average of all related media brands

Online Display…General Takeaways

Optimism remains for Online Display Advertising, Although it is DecliningPortals and Social Media Consideration and Conviction are Outpacing C t t d Ad N t kContent and Ad NetworksAd Results and Audience are the Key Decision Drivers in Today’s Online Display Ad Market Display Ad Market

Overall Drivers reveal Strong Audience ReachConviction Leaders possess the Strongest Ad Results p g


WHAT ADVERTISERS THINKTHE MORE YOU KNOW THE MORE YOU’LL SELL

Contacts

Ken PearlK @Ad ti P [email protected]

Randy [email protected]@ p


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