03 2 45 kirby winfield omma display europe - com score on digital scarcity
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Digital Scarcity OMMA Display Europe, 17 September, 2012 Kirby Winfield, SVP, comScore Reversing the curse of the unlimited impressions economy
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Transcript of 03 2 45 kirby winfield omma display europe - com score on digital scarcity
- 1. Digital ScarcityReversing the curse of the unlimited impressions economyOMMA Display Europe, 17 September, 2012Kirby Winfield, SVP, comScore
- 2. price is regulated by the proportion between thequantity brought to market, and the demandof those who are willing to pay- Adam Smith The Wealth of Nations, 1776 2
- 3. Demand SupplyPrice Where supply meets demand everything sells. Quantity 3
- 4. Demand SupplyPrice Increasing Demand at Steady Supply: Price Increases Quantity 4
- 5. Demand SupplyPrice When supply is constrained, price is extremely sensitive to demand.CPM Impressions Quantity 5
- 6. with more marketing dollars comingonline, CPM will go up, right?
- 7. The supply and demand model has two requirements: Supply & Demand are Independent Supply is Resource Constrained
- 8. Media Market ExamplesAd Medium: USA Network TVConstraint: 32 spots per hour, 5 hours per viewer = 160 spots Scarcity: Ad Pricing: Increasing 8
- 9. Media Market ExamplesAd Medium: Inventory sold through Display Exchanges Constraint: None! Cost are negligible, ad space is virtually unlimited. Scarcity: Ad Pricing: Declining 9
- 10. If demand increases, Demand but supply is unconstrained Price DoesPrice NOT Increase!CPM Supply Impressions Quantity 10
- 11. The Problem unlimited servedCountingimpressions hurts advertisingeconomics.The SolutionIntroduce Digital Scarcity to the system.
- 12. Achieving Digital ScarcityOnly count impressions that reached a real userand had a chance to make a real impact. were in-view delivered in the target geography displayed in a brand safe environment not fraudulent 12
- 13. vCE Charter Study18campaigns380,898sites1,772,117,123impressions Allstate 13
- 14. comScore vCE charter study results in-view rates across top 500 publishers Sites 7 % in-view 100% in-view 69% in-view ? ? ? best average worst On average 69% of ads were in-view, meaning 3 out of 10 were never seen. 14 source: comScore vCE charter study
- 15. The Above-the-Fold Myth?Above-the-fold in-view rates ranged from 48% to 100% source: comScore vCE charter study
- 16. Some Below-the-Fold ads areactually premium inventory.Below-the-fold in-view ranged from 3% to 67%. source: comScore vCE charter study
- 17. impressions CPM % served $5 100% = $5 nominal CPMimpressions CPM % viewed1,000 $5 75% = $6.67 effective CPM If only 75% of ads were seen the Effective CPM is 33% higher! 17
- 18. The Viewable-Impression-Guarantee Model:Publisher EconomicsValidate Value | If impression viewability isguaranteed, publishers can sell currentnon-premium inventory at premium prices.Sell More | Publisher is able to sell 15% moreguaranteed viewability premium impressions than theycurrently sell in gross premium impressions. 18
- 19. Conclusions Moving from served to validated impressions introduces scarcity and drives attractive economics:1. Above/below the fold placement becomes irrelevant.2. Most validated non-premium inventory becomes premium. 19
- 20. Thank You!Continue the Conversation:Twitter@[email protected]/comScoreInc 20