Planning, Buying and Evaluating Digital Media in a Cross Media World February 7, 2012.

Planning, Buying and Evaluating Digital Media in a

Cross Media World

February 7, 2012

Conversation Flow

ANA, 4A’s, IAB Making Measurement Make Sense

Q&A/Discussion

Reaching the Elusive Affluents: Affluent Consumers in a Digital World

Q&A/Discussion

2

What is Making Measurement Make Sense?

Making Measurement Make Sense (3MS) is an ecosystem-wide initiative to propose standards for metrics and advertising “currency” that will enhance evaluation of digital media and facilitate cross-platform comparison for brand marketing

Key objectives of the 3MS initiative are the following:

•Determining the right metrics and solutions

•Driving industry consensus around the solutions

•Establishing a measurement governance model

Who is involved with 3MS?3MS is a joint undertaking of the IAB, the ANA and the 4A’s

These organizations engaged Bain & Company and MediaLink to facilitate and manage the initiative

The Newspaper Association of America (NAA) and the Online Publishers Association (OPA) also joined the initiative as supporters

Nearly 40 industry executives were a part of our steering committee and working teams. In addition, we engaged over 150+ other industry participants across the ecosystem

Why did we embark upon the journey?

Consumers embrace digital media in droves

Business and transactions lag behind consumers

Digital media need a consistent, transparent supply chain

Digital media need to be part of a cross media marketing ecosystem

The ecosystem needs a measurement policy voice

Business leaders and functional experts need forums and mechanisms for change management

Fa

cil

ita

te c

ros

s-p

latf

orm

co

mp

ari

so

n3MS initiative has led to the

development of a five pillar metrics solution set

Brand attitudinal measures

5

Standard classification of

ad units

3

Define impression

1

Establish currency

2

Brand ad performance

metrics

4

Shift from a “served” to a “viewable” impression standard

Implement classification system and taxonomy for banner, rich media and streaming video ads

Define standard and transparent metrics for view-through reporting and cumulative social activity

Establish standards and vendor accreditation to improve methodology for online brand attitudinal studies

Introduce an online Gross Ratings Point (GRP) metric, providing reach and frequency reporting of viewable impressions

3MS prioritized view-through as the first standard brand ad

performance metric

Number of days after ad view that visit

to brand site is counted

• Data indicates that majority of view-throughs occur within 7 days

• 3 days is analogous to TV’s C3 rating system

Number of ad views attributed for a

view-through

• All ads contribute to brand building and a user’s decision to eventually go to brand or other target site

Percent of view-through attributed to

different ad views

• Attribution standards to be further tested

Last ad viewed All ads

2

3

Parameter to be defined Range of options and suggested solutions

All adsreceive full attribution

Each ad receives weighted

fractional attribution

1

1 day 90 days

Rationale

1) Standardize key parameters of this metric (see below)2) Make this metric more transparent and credible by introducing

accreditation for the reporting of this metric

Goals of 3MS for Brand ad performance metrics

3 days and 7 days

1st

2nd

3rd

Each adreceives equal

fractional attribution

4

Priority social metrics for standards-setting

Standardized social metrics will be critical and remain under

developmentPreliminary metric solutionsGoals of social metric standards

• Establish standards that provide a view of total relevant/ valuable social activity to assess campaign effectiveness

• Encourage accreditation of vendors providing standard social activity metrics

• Promote innovation, competition, and improvement by encouraging vendors to develop and offer metrics above and beyond that defined in standard metrics

4

• Volume of high-value social activity/posts (e.g., reviews, sharings, recommendations, etc)

• Volume of exposures to high-value social activity

• Analysis of positive/negative social media sentiment

3MS led process to prioritize social metrics based on:

1)Value and usefulness of metric to advertisers

2)Availability of credible data

• Improve response rates

• Shift to more accurate and relevant control groups

• Reduce use of statistical weighting adjustments

• Enhance ability to compare metrics with other media

• Pursue accreditation of vendors and sources of data via independent industry body

Accreditation and improved methodologies will boost confidence in

attitudinal studiesAccredited attitudinal metrics vendors will

need to address key requirementsOptions for improvements should follow in accordance with

IAB Best Practices

Improve existing methodology

Adopt new survey formats

Incorporate demographic and

cookie data

Switch to panel based surveys

a

c

b

d

• Improved user-intercept analysis conducted by 3rd party vendors

• Variations of current user-intercept analysis

• Surveys delivered to people who have seen an ad (identified via cookies)

• Surveys delivered to panel members, with direct tracking of users

5

Ongoing development of standards body working with the Media Rating

Council (MRC)

• A central governing body will be critical for implementing the solutions developed through the 3MS initiative, while continuing standards setting activities into the future

• Governance body should have cross platform mandate and balance buy and sell side representation

• Leveraging and expanding an existing body (vs. building de novo) has highest likelihood of success, with infrastructure, processes and industry credibility already in place

• Lead measurement change management

3MS recommends building off the existing MRC structure

Key considerations for ongoing governance structure

• Right constituency, with cross-platform member base including publishers, agencies, associations (and some advertisers)

• Expertise from accrediting and auditing to transition into industry policy-making and priorities-setting role

• Trusted and objective senior leadership

• Low-cost operating model

3MS timeline and outcomes

Q2Q1 Q2 Q3 Q4 Q1 Q3 Q4

20122011

Phase 1 Phase 2 Go-forward

OU

TC

OM

ES

• 3MS solutions delivered and communicated to ecosystem at-large

• Governance structure and roles developed and detailed

• Overall implementation/ change management plan and timelines developed

• 3MS outreach for key stakeholders

• Initial viewable impression pilot design and recruitment completed

• MRC integrated into 3MS process

• Viewable impression pilot for display ads launched in marketplace

• Video GRP standards and requirements developed

• Ad unit taxonomy/classification system in testing

• Phase 2 initiatives (e.g. viewable, GRP and classification) transitioned from pilot to soft and full launch

• Standards for remaining two solutions developed (ad performance and attitudinal metrics)

Perspective

Comments?Questions?Concerns?

12

IAB Affluent Research OverviewThe Interactive Advertising Bureau partnered with

Ipsos Mendelsohn to conduct research and develop insights on Affluent consumers in today’s digital world

Rationale●Digital media continue to grow users and opportunities to connect with consumers ●The 58 million American Affluents are important to economic recovery ●Need to understand both how much and how Affluents use digital media

Key Findings●Affluents embrace technology and digital media including advertising ●The hardest to reach in TV and radio are the most reachable in digital media●Affluents tend to be at least as receptive and responsive as the less affluent

13

Practical Implications

Brands that need better reach and composition of Affluents should invest in digital media

Improve ad creative

Make ads relevant while respecting Affluents’ privacy and intelligence

Expect them to react, to share information

Learn about how interpersonal influence works for your category and brand among the Affluents

14

Methodology & Approach

15

• Conducted online February 22-28, 2011

• National sample of online adults 18+• Weighted / balanced to U.S. Census data

• 2,088 respondents interviewed in total

• 1,063 with HHI <$100K• 1,025 with HHI $100K+

(“Affluent”)• Unless otherwise noted, data in this report are from HHI $100K+ group

Methodology Overview

Survey Content

• Frequency of seeing digital ads (by type) • Actions taken based on digital ad exposure

• Perceived relevance and trustworthiness of messages from digital advertising

• Focus vs. multi-tasking during media activities

• Attitudes toward advertising, privacy, etc.

The Traditional Media Paradigm: Affluent Consumers More Challenging to

Reach

16Sources: The Mendelsohn Affluent Survey 2010; Nielsen; Radar/Arbitron.

17.6

7.5

34

16

Watching TV Listening to radio

Affluent

Generalpopulation

Average # of hours in a typical week

The Digital Media Paradigm: Affluent Consumers Are Heavier

Users

98%

79%

% with Internet access

Affluent

Generalpopulation

26.2

21.7

Average hours online weekly

Sources: The Mendelsohn Affluent Survey 2010; Pew Research Center; Ipsos OTX MediaCT17

Affluent More Engaged with Mobile Phones

92%

33%

81%

17%

Own a mobilephone

Own asmartphone

Affluent

Generalpopulation

Sources: The Mendelsohn Affluent Survey 2010; Pew Research Center; Forrester18

E-Reader & Tablet Ownership Have Doubled

0

5

10

15

20

25

30

Sept'10

Oct '10 Nov'10

Dec'10

Jan '11 Feb '11 March'11

April'11

May'11

June'11

July '11

24%Own e-reader

17%Own tablet

12%

8%

Among $100K+ HHI

Source: Mendelsohn Affluent Barometer. Data shown are three month moving averages19

79%

59%

58%

54%

47%

33%

26%

intertwined with technology

more complicated

more stressful

about finding ways to do more with less

more fun

easier

more isolated

For Affluents, Life Is Increasingly Tech-Focused, Connected,

ComplexOver the past 10 years, my life has

become…Strongly/ somewhat

agree

20Source: Mendelsohn Affluent Barometer, January 2011

Digital Advertising in Affluent Lives

21

Exposure to Digital Ads Nearly Universal

88%

80%

77%

69%

65%

59%

42%

Any of the following

Web/ banner ad

Search ad/ sponsoredlisting

Email ad

Video ad

Social media ad

Mobile/ smartphone ad

% reporting exposure to each type of ad in past 7 days

5-of-6 ad types

measured seen by a majority

*

**

Average # weekly: 18.5

22* <$100K HHI: 73% ** <$100K HHI: 70%Source: IAB Custom Research Conducted by Ipsos/Mendelsohn

Most Affluents Take Action on Digital Ads

59%

45%

38%

28%

18%

17%

16%

11%

9%

8%

Done any of the following

Clicked on the ad

Visited the advertiser’s website

Searched for info about theproduct/service online

Became a “fan” or “liked” onsocial networking website

Went to retail location tosee/purchase product /service

Purchased the product orservice online

Shared ad via email, Twitter,social networking site

Sent an email or text messageto the advertiser

Called the advertiser to getmore information

Actions taken in past 6 months as a

result of any ad type (among those

recalling digital ads)

23Source: IAB Custom Research Conducted by Ipsos/Mendelsohn

draft

55%

51%

46%

… learned about newproducts

…learned about companies Iwas unaware of before

… visited web sites I wouldnot have visited otherwise

% definitely / tend to agree: “Because of advertising I have seen online, I

have…”

*

* <$100K HHI: 49%

Digital Ads Have Considerable Impact on Awareness


Wide Range of Opinions about Digital Advertising

●“A great design or a topic of personal interest -- either of those qualifiers-- might get me to pay attention”

●‘”Generally positive, except for intrusive flash ads, ads with sound, overlay ads (the new popup), and ads I'm forced to look at or watch for every video or page visited. I'm ok with ads as long as I'm not bombarded with them.”

●“I believe they serve a purpose of allowing the websites to make money so they don't have to charge”

●“Am generally disappointed by online ads. They typically aren't relevant or are misleading.”

In your own words, please describe your experiences with online ads.


Video, Email, Search & Banner Ads Most Likely to Inspire Action

59%

41%

41%

37%

37%

28%

17%

Any digital ad

Video ad

Search ad/ sponsored listing

Email ad

Web/banner ad

Social media ad

Mobile/ smart-phone ad

% taking action on digital ads (by ad type)

Among those seeing each type of ad 26

Source: IAB Custom Research Conducted by Ipsos/Mendelsohn

Openness to Advertising Varies Across Websites

News

Shopping

Email

Product reviews

Video & entertainment

Sports

Financial service & banking

50%25%

Social networking

Music downloading

Online games

% having “considerable” or “some” interest in advertising in each type of web site


What do Affluent consumers want from digital

advertising?

28

Ads relevant to activities I happen to be thinking about, whatever website I happen to be on (e.g., car ads if I happen to be shopping for a car; airline ads if

I am planning a trip in the near future)

37%

Ads relevant to the content of the website I am on currently 34%

Ads relevant to me based on where I live or where I am 30%

Ads relevant to me based on my age, gender, or income 27%

Ads that are funny and unexpected 27%

Ads made with video or animation 13%

Ads that are interactive in some way (e.g., with a game, store locator, or other functionality built into

them)13%

Ads that I can expand or change size 5%

Enhancing Relevance Would Enhance Interest

29

Which types of ads are you most likely to pay attention to when using the Internet?

*

* <$100K HHI: 32%Source: IAB Custom Research Conducted by Ipsos/Mendelsohn

Relevance: The Voice of the Affluent

“I have noticed that advertising companies have definitely improved and these ads are now more relevant to my lifestyle and I am actually interested in a good number of them.”

“I do have an interest in alternative medicine and generally read or at least pay some attention to such ads.”

“Right now, I usually only look at things that are baby-related.”

“[I pay attention when] it really happens to catch my eye or is personally applicable.”

In your own words, please describe your experiences with online ads.


Consumers Calling for Ads that Are Relevant, Reliable, &

“Seductive”

“Seduce me instead of groping me--I don't want stuff forced on me, though I often enjoy ads. Show me something funny, uplifting, beautiful, intriguing. Invite me to linger, don't interrupt me with flashing lights and hard-sell inanity.”

“Make them less intrusive to the user experience and less intensive to users devices. Mobile devices and netbooks can get bogged down by fancy flash ads or other forms of memory and/or CPU heavy ads.”

In your own words, please describe how you feel online advertising could be improved.


Being “Too Targeted” a Concern for Some

32

“I have seen ads online that have made me uncomfortable because it felt like

they knew too much about me”

29%

Source: IAB Custom Research Conducted by Ipsos/Mendelsohn

Ambivalence About Privacy

16%Concerns

about online privacy are overblown

23%I don’t really

know the best ways to protect

my privacy online

33

I am usually willing to share

some information about myself

online so that I can get a more

customized online experience

32%*

* <$100K HHI: 23%Source: IAB Custom Research Conducted by Ipsos/Mendelsohn

Summing Up

Affluents living tech-infused lifestyles●Essentially universal Internet access●5 more hours online weekly●Early adopters of smartphones & tablets●Under-index on TV & radio use

Digital advertising…●Has spurred most Affluents to take action●Shapes behavior beyond clicking●Significantly shapes awareness

34


Affluents’ Expectations Rising About Life in 2012

2011 was a good year for…

I believe 2012 will be a good

year for… Gap

me personally 56% 64% +8

my career/finances 38% 54% +16

my family 56% 65% +9

the U.S. economy 8% 30% +22

America as a whole 11% 31% +20

Expectations up across the board

Over half expect a good 2012 on “personal”

dimensions

Less than one-third expect a good 2012 for the economy, America

Source: Ipsos Mendelsohn Affluent Barometer, December 2011


Still, Most Affluents Not Expecting Full Recovery in 2012

Impact of recession on…

The recession will end…Me & my

familyMy

company*U.S. as a

whole

Already over 29% 25% 7%

In 2012 14% 14% 11%

In 2013 13% 12% 22%

In 2014 or later 17% 19% 31%

It really won't end 7% 11% 13%

I don't know 20% 20% 16%

Over half expecting U.S. recovery in

2013 or later

Only three-in-ten feel it’s personally over

*among those employedSource: Ipsos Mendelsohn Affluent Barometer, December 2011


80% of Affluents Have Specific Goals for 2012

80%

41%

40%

33%

31%

18%

16%

16%

14%

9%

2%

2%

11%

Any

Save more money

Lose weight

Spend more time with my family

Spend less money

Take a 'special' vacation

Invest more

Look for a new job

Give to charity more

Treat myself more often

Buy a luxury gift for others

Buy a luxury gift for self

Other

The start of a New Year is often a time when people make resolutions or plans for what they would like to accomplish in the coming year. Which of

the following are among your goals or resolutions for 2012?



“Hope to plan better for our long term future. Reduce our debt, make home improvements, be healthier.”

“I hope to increase our savings each month and allow us to have extra money that we can spend if we need to.”

“I hope to earn a good living, share with those in need, and adopt a more healthy lifestyle.”

Health, Money & Family Top the List of 2012 Affluent Goals

In your own words, please tell us about any resolutions or goals you hope to achieve in 2012.



Hunger for Content and Connectivity Grows

* Data shown among Affluent heads of house; figures among total adults in 2011 are comparable.

2010* 2011*

Use Internet 98% 98%

Average # of hours use Internet per week 25.3 30.3

Own a…

smartphone 33% 43%

e-reader 5% 14%

tablet 2% 9%

© 2011 Ipsos Mendelsohn. All rights reserved.

Source: Ipsos Mendelsohn Affluent Survey

Planning, Buying and Evaluating Digital Media in a Cross Media World February 7, 2012.

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