29.07.2012 Views

Online Brand Measurement:

Online Brand Measurement:

Online Brand Measurement:

SHOW MORE
SHOW LESS

Transform your PDFs into Flipbooks and boost your revenue!

Leverage SEO-optimized Flipbooks, powerful backlinks, and multimedia content to professionally showcase your products and significantly increase your reach.

June 2009<br />

Introduction<br />

In 2009, US advertisers will spend $4.7 billion on<br />

display ads, and another $3.1 billion on other<br />

branding-oriented ads, including rich media and<br />

video. But are they getting their money’s worth?<br />

Does online brand measurement even work? Do<br />

marketers have the metrics they need to connect<br />

the dots—both within online platforms and<br />

between online and offline media?<br />

Authored by eMarketer CEO and co-founder Geoff Ramsey, this<br />

special report addresses these questions and many more.<br />

A Look Inside Total Access: This report gives you a sample of<br />

the premium content that is exclusive to eMarketer Total Access<br />

subscribers. For more information on what Total Access can do for<br />

your business, day after day, visit www.emarketer.com, or contact<br />

us at 212-763-6010 or 800-405-0844 (toll-free).<br />

®<br />

Geoffrey Ramsey,<br />

CEO & Co-Founder<br />

geoff@emarketer.com<br />

<strong>Online</strong> <strong>Brand</strong><br />

<strong>Measurement</strong>:<br />

Connecting the Dots<br />

More Available <strong>Online</strong><br />

Special Report<br />

We encourage you to view this special report online<br />

at www.emarketer.com/brandmeasurement for<br />

access to videos, in-depth interviews and full<br />

survey results (courtesy of InsightExpress). On the<br />

report Website, you can also join the conversation<br />

on this important topic by contributing comments.<br />

Digital Intelligence Copyright ©2009 eMarketer, Inc. All rights reserved.


Geoff Ramsey: Why This Report?<br />

<strong>Measurement</strong> means different things to different<br />

people—but most can agree that in business,<br />

measurement is vital to long-term success.<br />

I’ll never forget my first experience with measurement. When I<br />

was 12 years old, my family moved to the UK, exposing me to a<br />

new school system and a decidedly different way of measuring<br />

student performance. Instead of the generalized feedback I was<br />

used to in Michigan, such as “needs to try harder,” the UK students<br />

were ranked from 1 through n (where n = however-manystudents-were-in-the-class).<br />

Granted, it was a blunt measure. And<br />

at the end of the first marking period, I was ranked last in every<br />

single subject, from Latin to mathematics. Ouch.<br />

Remarkably, though, this measurement system had a profound<br />

effect on me. I started paying attention in class and generally<br />

worked like a dog. By the end of the last marking period, my rank<br />

had elevated to No. 1 or No. 2 in each class.<br />

Could the online advertising industry benefit from a similar<br />

transformation if better brand measurement systems were put in<br />

place? Does the industry have the right metrics to be able to<br />

connect the dots—both within online platforms and between online<br />

and offline media? That’s what this report was designed to uncover.<br />

<strong>Online</strong> brand measurement has been on my mind for some time<br />

now. After moderating industry panels with session titles such as<br />

“Fixing the <strong>Measurement</strong> Mess” or “Is Data Friend or Enemy?” it<br />

became clear that we had some major challenges to overcome.<br />

That feeling was confirmed when eMarketer commissioned<br />

InsightExpress to conduct a poll of industry stakeholders. On a<br />

scale of 1 (we’re still in the Dark Ages) to 10 (we’ve got this all<br />

figured out), a majority (51%) rated the current state of online<br />

brand measurement at 5 or below. Ouch again.<br />

® <strong>Online</strong><br />

This report was made possible by contributions from many<br />

individuals, who offered their time, expertise and razor-sharp<br />

thinking on an incredibly complicated topic, including many of my<br />

hard-working colleagues at eMarketer. In particular, I want to thank<br />

senior analyst David Hallerman, who shored up my original draft<br />

with much-needed improvements; writer/editor Tobi Elkin, who<br />

conducted more than two dozen high-level interviews; and Evelyn<br />

Majewski, who analyzed and provided a contextual summary of<br />

the InsightExpress poll of industry professionals.<br />

I am also grateful for the commitment and friendship of the<br />

industry leaders who agreed to be interviewed or come into<br />

our offices for video sessions. I offer special thanks to David<br />

Smith of Mediasmith, a legend in online measurement, who<br />

acted as a sounding board and sanity check for many of my<br />

points and conclusions.<br />

The process of writing this report was like absorbing the<br />

collective consciousness of the online ad industry, and it<br />

convinced me to change my views on a number of key issues. I<br />

hope it opens your mind to some new ideas and provides a forum<br />

for the industry to move forward on this important subject of<br />

online brand measurement.<br />

Please take the time to share your comments and thoughts.<br />

Collectively, we can begin to connect the dots—and maybe we<br />

can move to an 8 or 9 out of 10 sooner rather than later.<br />

Geoffrey Ramsey<br />

CEO, Co-Founder, eMarketer<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 2


Letter from Our Sponsor,<br />

Datran Media<br />

When I first heard that eMarketer was publishing<br />

a study dedicated to online measurement, I got<br />

excited, because I felt that the timing couldn’t<br />

be any better.<br />

We are witnessing a very interesting period in the industry where<br />

advertisers are no longer simply buying media on Web sites to<br />

reach a particular audience, but instead are actually targeting<br />

users. The explosion of exchanges and behavioral data targeting<br />

has suddenly made the term “remnant” important and sexy. Let’s<br />

face it, this is not a just a trend, but rather a clear movement<br />

towards leveraging the plethora of data that differentiates the<br />

Internet from any other form of media. Even when advertisers buy<br />

from an individual site, they are now expecting to target specific<br />

users with relevant demographics or behavior. Although this<br />

appears to be a subtle switch, it actually has a profound effect on<br />

the industry, especially when it comes to measurement. Think<br />

about it. The measurement tools that exist on the Web today were<br />

created to address the desire to determine the most popular sites<br />

by attempting to count the number of unique visits to individual<br />

sites on a monthly basis. These tools were not really developed to<br />

provide valid insights into the user behind the browser.<br />

Perhaps in the early days of the Internet when people were<br />

focused on buying homepages or sponsorships, knowing the<br />

most popular sports-related Web site was actually relevant. But let<br />

me ask you a question, if you are only buying four million unique<br />

impressions, does it really matter whether the site reaches 20 or<br />

30 million visitors a month? Although instinctively most of us want<br />

to say yes, chances are the answer is no. Advertisers should be<br />

shifting from asking what site is the most popular to wondering<br />

“who specifically am I reaching?”, “is this who I am intending to<br />

reach?” and “what is the impact on my brand?”<br />

® <strong>Online</strong><br />

Unfortunately the industry is still stuck in a rut over counting<br />

methodologies. Yet at the end of the day, the only figures that<br />

typically matter come from an advertiser’s third party ad server, as<br />

this is what determines the money actually spent on advertising.<br />

Until the debate switches from unique user counting to the<br />

accuracy and quality of data about the individuals exposed to and<br />

interacting with the ad campaign, we will be holding back the<br />

potential of the industry. Not to say that the number of monthly<br />

visitors isn’t at all relevant to publishers or advertisers, but let’s put<br />

that challenge into perspective and focus resources on moving<br />

the market forward with the type of audience measurement that<br />

today’s marketer truly needs.<br />

I trust that this timely report will give us all a lot of food for thought<br />

and we are delighted to be sponsoring it. No one knows exactly<br />

what measurement will consist of in five years, but I guarantee it<br />

will evolve greatly from what exists today. This study should<br />

provide us with not only the current challenges, but also a hint of<br />

things to come. Enjoy the report and let the debates begin!<br />

Sincerely,<br />

Scott C. Knoll<br />

SVP Display and GM Aperture Product Group, Datran Media<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 3


What are Analytics Really<br />

Telling You about Your Audience<br />

Advertisers and marketers have long searched, with mixed<br />

results, for proof that their campaigns are e�ective. For the<br />

interactive industry, integrity in audience measurement is a<br />

fundamental necessity. After all, accurate reporting and transparency<br />

is critical when planning future media buys, segmenting<br />

audiences, and optimizing marketing mixes.<br />

How crucial do you feel analytics can be in dictating future ad<br />

campaigns? (% of respondents)<br />

The methodologies that most media is measured by today are<br />

over 70 years old! Panel-based research was initially developed to<br />

help radio advertisers understand how many listeners were<br />

exposed to their campaign. Ironically, not much has changed in<br />

the world of media measurement. Although in recent years,<br />

ISP-based measurement has made some attempts to improve the<br />

way audiences are quanti�ed.<br />

Clearly, online advertisers need deeper insights into who they're<br />

reaching. In today’s competitive atmosphere, where targeting<br />

very speci�c audiences is increasingly important, the old-world<br />

methodologies are becoming less relevant.<br />

Do you currently leverage audience analytics? (% of respondents)<br />

Yes 76%<br />

No 26%<br />

Very 69.2%<br />

Not at All .8%<br />

Somewhat<br />

30%<br />

Source: Datran Media, “Third Annual Marketing & Media Survey,” January 2009<br />

Source: Datran Media, “Third Annual Marketing & Media Survey,” January 2009<br />

With more and more marketers relying on analytics to shape their<br />

campaigns, new tools are being developed for today’s online<br />

advertiser, as evidenced by the recent launch of Datran Media’s<br />

Aperture. Aperture is the �rst and only audience reporting tool<br />

that delivers consumer pro�les across all digital media, based on<br />

third-party veri�ed household-level data. Anonymously combining<br />

veri�ed o�ine data with the online activity of over 100 million<br />

consumers, this rich data provides unprecedented insights into<br />

the audience that is exposed to, has responded to, and is<br />

converting on an advertiser’s campaign.<br />

ADVERTISEMENT<br />

Verified consumer data is the key to accurate reporting<br />

Current methodologies are outdated<br />

Most research sample sizes are statistically insignificant<br />

Audiences need to be measured at the campaign and<br />

creative level, not just site level<br />

19,312,785 41,228 2,<br />

impressions clicks conv<br />

INFLUENCE (share of impressions)<br />

DEMOGRAPHICS<br />

College Grad<br />

36-45 yrs (Adult Age)<br />

Females 35-44 yrs<br />

Males 35-44 yrs<br />

pressions indexed to internet<br />

Aperture measures<br />

household- level<br />

demographics across the entire<br />

media chain – from impressions<br />

to clicks to conversions.<br />

FINANCE<br />

$250k (Net Worth)<br />

Bank Card<br />

$100k (Income)<br />

Adult Age (all) Sampling Percent 62%<br />

86-99 yrs<br />

76-85 yrs<br />

66-75 yrs<br />

56-65 yrs<br />

46-55 yrs<br />

36-45 yrs<br />

26-35 yrs<br />

18-25 yrs<br />

HOUS<br />

Aperture answers the questions every digital<br />

marketer is asking:<br />

Am I reaching the right audience?<br />

Who is responding to my campaign?<br />

Should I be targeting new audiences?<br />

0 2 4 6 8 10 12 14 16 18 20<br />

To understand who your audience truly is, you need a reporting tool<br />

that is designed for the 21st century digital marketer. To learn more<br />

about Aperture, please visit datranmedia.com/insight<br />

1-2<br />

1<br />

A Datran Media Solution


Table of Contents<br />

Introduction 1<br />

More Available <strong>Online</strong> 1<br />

Geoff Ramsey: Why This Report? 2<br />

Letter from Our Sponsor, Datran Media 3<br />

Table of Contents<br />

Background: Factors that Contribute to the<br />

5<br />

<strong>Measurement</strong> Issue 5<br />

What Does ‘<strong>Measurement</strong>’ Mean? 5<br />

Putting <strong>Measurement</strong> into Perspective 6<br />

The Accountability Factor 7<br />

What Spending Trends Say About <strong>Online</strong> <strong>Brand</strong><br />

<strong>Measurement</strong> 10<br />

Total <strong>Online</strong> Spending—Slow but Positive Growth Ahead 10<br />

Search versus Display Trends 11<br />

Dollar Trends Don’t Tell the Whole Story<br />

Beyond Banners: Other <strong>Online</strong> Formats Will Boost Overall<br />

14<br />

<strong>Brand</strong>ing Dollars 15<br />

Drill Down: What Are the Problems? 16<br />

A General Apathy Toward <strong>Brand</strong>ing 16<br />

A Preoccupation with Search, at the Expense of <strong>Brand</strong>ing 18<br />

An Addiction to Clicks<br />

Do Traditional <strong>Measurement</strong> Techniques Work for New<br />

21<br />

Media? 22<br />

Integration Is Hard When Data Is Locked in Silos 23<br />

Too Much Information, Too Much Complexity 24<br />

Current <strong>Measurement</strong> Models Have Limitations 25<br />

<strong>Measurement</strong> of Social and Video Are Even Further Behind 26<br />

Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising<br />

Can Influence Every Step Along the Consumer<br />

Purchase Funnel 27<br />

How Display Ads Impact <strong>Brand</strong> Metrics 28<br />

Integrating Search and Display Ad <strong>Measurement</strong>s 29<br />

How Display Ads Drive Site Traffic 30<br />

How Display Ads Impact <strong>Online</strong> Sales 30<br />

How Display Ads Influence Offline Purchases 31<br />

Three Factors for <strong>Online</strong> <strong>Brand</strong>ing Success 33<br />

Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong><br />

<strong>Measurement</strong> 35<br />

Big Picture: Five Broad Approaches 35<br />

It All Starts with Marketing Objectives 36<br />

The Need for Uniform Standards 36<br />

Integrate <strong>Online</strong> and Offline <strong>Measurement</strong> and Metrics 39<br />

Embrace Traditional Media Metrics 39<br />

Get Smart About Attribution Modeling 42<br />

® <strong>Online</strong><br />

Building New <strong>Measurement</strong> Models for Social and Video<br />

Environments 44<br />

Unraveling Consumer Engagement Metrics 46<br />

Next Steps: A Seven-Point Plan 47<br />

Endnotes 49<br />

Related Information and Links 52<br />

Contact 55<br />

Report Contributors 55<br />

eMarketer Total Access: How to Make Better<br />

Digital Business Decisions 55<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 5


Background: Factors that<br />

Contribute to the <strong>Measurement</strong><br />

Issue<br />

US advertisers will spend $4.7 billion on display<br />

ads in 2009, and another $3.1 billion on other<br />

branding-oriented ads, including rich media and<br />

video. But are they getting their money’s worth?<br />

Do they have the right metrics, and are they able<br />

to connect the dots, both within online platforms<br />

and between online and offline media? Is online<br />

brand measurement even a problem that needs<br />

to be fixed?<br />

This special report will seek answers to these questions, and<br />

many more.<br />

“It’s time for digital media to grow up and for<br />

clients who are running full-on marketing<br />

campaigns to really understand how their<br />

campaigns are performing if they spend $5<br />

million or $1 million or $800,000 online,<br />

across various sites and fragmented<br />

audiences.” —Curt Hecht, president, Publicis Groupe’s<br />

VivaKi Nerve Center, in an interview with eMarketer,<br />

April 22, 2009<br />

What Does ‘<strong>Measurement</strong>’ Mean?<br />

In exploring online brand measurement today, marketers need to<br />

be careful to separate out its two basic components:<br />

■ How successfully and efficiently did I reach my intended<br />

target consumer?<br />

■ Did my advertising campaign influence the consumer’s<br />

attitudes, perceptions or behaviors associated with the brand?<br />

“One question is about ad effectiveness, and the other is the<br />

currency that is bought and sold,” said Young-Bean Song, senior<br />

director of analytics and the Atlas Institute for Microsoft<br />

Advertising, in an interview with eMarketer. “In an ideal world,<br />

those would be the same thing. That’s one of the good things<br />

about direct response advertising, where you’re paying somebody<br />

for a sale that occurs on their network or you’re paying for a click.<br />

Both the currency and the measure of effectiveness are the same<br />

thing. But in the world of branding, things get a lot more abstract.<br />

You still have to pay for something, but you’re not going to pay for<br />

branding ad effectiveness.”<br />

® <strong>Online</strong><br />

Putting <strong>Measurement</strong> into Perspective<br />

In April 2009, eMarketer used online survey company<br />

InsightExpress to poll 37 high-level, highly knowledgeable<br />

marketing professionals with expertise in the field of media<br />

measurement. The purpose was to gauge their opinions on the<br />

state of online brand measurement.<br />

To get a level set on the degree to which measurement is seen<br />

as a significant barrier to the growth of online advertising, the<br />

respondents were asked whether they agreed with the<br />

following statement:<br />

“Other than the economy, brand measurement is the<br />

single biggest obstacle holding back the growth of<br />

online advertising.”<br />

A little under one-half of respondents, or 43.2%, agreed that<br />

measurement is the major obstacle aside from the overall economy.<br />

US Marketing Executives Who Agree that <strong>Brand</strong><br />

<strong>Measurement</strong> Is Holding Back the Growth of <strong>Online</strong><br />

Advertising, April 2009 (% of respondents)<br />

Disagree<br />

56.8%<br />

Note: n=37<br />

Source: eMarketer, "<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong> Survey" conducted by<br />

InsightExpress, June 2009<br />

104486 www.eMarketer.com<br />

104486<br />

But while 56.8% of respondents disagreed with the statement,<br />

their answers for alternative obstacles varied. In general, they<br />

centered around three broad themes. But as this report makes<br />

clear, each of these obstacles is, in fact, an integral part of the core<br />

measurement problem. Taken together, they pinpoint the key<br />

challenges facing the industry. The following quotations provide<br />

some elaboration.<br />

Obstacle: Too much focus on direct response<br />

■ “Overinfluence of direct response metrics. Perhaps these are<br />

two sides of the same coin but still, today, there is a large<br />

school of thought that direct response is the basic benefit of<br />

online advertising.”<br />

■ “A myopic focus on direct response ads and immediate<br />

gratification.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 6<br />

Agree<br />

43.2%


Background: Factors that Contribute to the <strong>Measurement</strong> Issue<br />

Obstacle: Lack of creativity<br />

■ “A lack of CMO and marketing creative focus on online efforts,<br />

and true measurement of buying influences.”<br />

■ “<strong>Brand</strong> measurement is certainly one area that needs to<br />

improve, but also improved creative and CMOs’ understanding<br />

of the platform are also a priority.”<br />

Obstacle: Lack of understanding about how<br />

digital works<br />

■ “Understanding how online fits in with other media.”<br />

■ “Vision, imagination, ideas, experience. We are still in an early<br />

stage of adoption for many companies, where many marketers<br />

just don’t have the bandwidth or experience to make digital<br />

work, let alone sync with the rest of their marketing programs.”<br />

■ “The problem is subjective, not quantitative: It is about<br />

experience with the medium and belief in its virtues.”<br />

To further quantify where the online ad industry is with<br />

measurement today, the InsightExpress poll also asked<br />

respondents to rate the measurement issue on a continuum from<br />

1 to 10, where 1 is “We are in the Dark Ages,” and 10 is “We’ve got<br />

this thing totally figured out.” Not a single one of the 37<br />

respondents rated online ad measurement a 9 or 10. Only 16.2%<br />

of respondents rated measurement a 7 or higher, and just under<br />

one-half rated it at least a 6.<br />

The bottom line: A slight majority (51.3%) believed online<br />

measurement is at a grade of 5 or below. Clearly, the interactive ad<br />

industry has a problem on its hands.<br />

US Marketing Executives' Ratings* of the State of<br />

<strong>Online</strong> Advertising <strong>Measurement</strong>, April 2009 (% of<br />

respondents)<br />

10 0.0%<br />

9 0.0%<br />

8 2.7%<br />

7 13.5%<br />

6 32.4%<br />

5 18.9%<br />

4 13.5%<br />

3 16.2%<br />

2 2.7%<br />

1 0.0%<br />

Note: n=37; numbers may not add up to 100% due to rounding; *on a scale<br />

of 1-10, where 1="We are in the Dark Ages" and 10="We've got this thing<br />

totally figured out"<br />

Source: eMarketer, "<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong> Survey" conducted by<br />

InsightExpress, June 2009<br />

104488 www.eMarketer.com<br />

104488<br />

® <strong>Online</strong><br />

If there is any solace, it’s in the slight improvement over the years.<br />

When asked how they would have rated online measurement five<br />

years ago, a whopping 78% of respondents said they would have<br />

rated it a 4 or lower, with nearly one-third (29.7%) rating it a<br />

pathetic 2.<br />

US Marketing Executives' Ratings* of the State of<br />

<strong>Online</strong> Advertising <strong>Measurement</strong> Five Years Ago, April<br />

2009 (% of respondents)<br />

10 0.0%<br />

9 0.0%<br />

8 0.0%<br />

7 0.0%<br />

6 8.1%<br />

5 13.5%<br />

4 24.3%<br />

3 18.9%<br />

2 29.7%<br />

1 5.4%<br />

Note: n=37; numbers may not add up to 100% due to rounding; *on a scale<br />

of 1-10, where 1="We are in the Dark Ages" and 10="We've got this thing<br />

totally figured out"<br />

Source: eMarketer, "<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong> Survey" conducted by<br />

InsightExpress, June 2009<br />

104492 www.eMarketer.com<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 7<br />

104492<br />

Looking to the future, respondents gave the industry an average of<br />

three to five years before online measurement would attain a<br />

score of 8 or above.<br />

In One Word, Describe <strong>Online</strong> <strong>Measurement</strong><br />

Today<br />

In the informal poll eMarketer conducted among industry<br />

insiders, we asked them, “What single word or phrase<br />

would you use to describe the current state of online<br />

advertising measurement?” The answers were telling—<br />

strongly reinforcing the idea that the online ad industry<br />

has a long road ahead.


Background: Factors that Contribute to the <strong>Measurement</strong> Issue<br />

The Accountability Factor<br />

Even before the recession, marketers were under tremendous<br />

pressure to better account for their advertising outlays. The<br />

downturn only reinforced and accelerated the need to set specific<br />

marketing goals and carefully measure results from ad campaigns.<br />

“Marketers have been challenged to be more accountable by<br />

CEOs who are looking for shareholder return and value,” said Bob<br />

Liodice, the president and CEO of the Association of National<br />

Advertisers, in an interview with eMarketer. “The challenge for<br />

marketing is: ‘Prove to me that marketing works. Prove to me that<br />

no matter how you slice it, the investments are paying back in<br />

both short- and long-term deliverables.’”<br />

Many studies underscore the accountability mandate for<br />

marketing, including a 2009 survey by the Lenskold Group and<br />

MarketSphere in which 65% of marketers worldwide said that<br />

CEOs and CFOs are demanding to see ROI as a part of securing<br />

budgets for marketing initiatives. Seventy-nine percent of the<br />

marketers felt that the need to measure, analyze and report<br />

marketing effectiveness was greater in 2009 than in previous years.<br />

Another 2009 survey, from JupiterResearch and Verse Group, found<br />

that achieving measurable ROI on marketing efforts was the No. 1<br />

priority of US marketers for 2009. Second on their list was developing<br />

marketing programs that integrate online and traditional media.<br />

Leading Priorities for US Marketers in 2009 (% of<br />

respondents)<br />

Achieving measurable ROI on my marketing efforts<br />

50%<br />

Developing marketing programs that integrate online and<br />

traditional media<br />

43%<br />

Translating the brand experience across different touchpoints<br />

32%<br />

Cutting marketing budgets without cutting performance<br />

31%<br />

Optimizing our portfolio of brands<br />

26%<br />

Selecting better methods to uncover relevant consumer insights<br />

23%<br />

Measuring brand effectiveness<br />

20%<br />

Refreshing our brand's image<br />

19%<br />

Evolving our brand as the company's business strategy evolves<br />

18%<br />

Building a corporate culture rooted in our brand<br />

17%<br />

Note: n=101<br />

Source: JupiterResearch and Verse Group, "CMO Priorities for 2009,"<br />

February 2009<br />

102141 www.eMarketer.com<br />

emarketer_2000584_102141<br />

® <strong>Online</strong><br />

A study by Heidrick & Struggles of 111 US senior executives found<br />

that return on marketing investment was the highest-ranked<br />

marketing tactic in terms of importance to the company’s growth<br />

objectives, rating a 4.05 on a scale of 1 to 5. Notably, online display<br />

ads were way down on the priority list, rating a paltry 2.86 out of 5.<br />

Executives’ satisfaction with online display ads was similarly poor,<br />

at 3.07. However, satisfaction levels with social networking tools<br />

(2.75) and video ads (2.65) were far worse.<br />

Satisfaction Level of US* Senior Executives Regarding<br />

Their Company's Effectiveness at Developing Select<br />

Marketing Tactics, November-December 2008 (scale of 1-5**)<br />

Publishing tools–Webinars<br />

3.96<br />

Research and analysis–online surveys<br />

3.25<br />

Research and analysis–Website activity analysis<br />

3.14<br />

Promotions–contests/sweepstakes<br />

3.11<br />

Publishing tools–e-mail newsletters<br />

3.11<br />

Websites/applications–microsites<br />

3.07<br />

Advertising–online display ads<br />

3.07<br />

Research and analysis–return on marketing investment (ROMI)<br />

analysis<br />

3.07<br />

SEO–pay-per-click search ads<br />

3.05<br />

Collaboration and process tools–project management/marketing<br />

process tools<br />

3.00<br />

SEO<br />

3.00<br />

SEO–search-related landing pages<br />

2.96<br />

Promotions–gaming<br />

2.96<br />

Partner tools–supplier/customer intranets<br />

2.93<br />

Publishing tools–blogs<br />

2.75<br />

Websites/applications–social networking tools<br />

2.75<br />

Websites/applications–e-commerce sites<br />

2.69<br />

Collaboration and process tools–customer relationship<br />

management (CRM) (sales process)<br />

2.68<br />

Advertising–video ads (e.g., on YouTube)<br />

2.65<br />

Advertising–mobile ads<br />

2.58<br />

Note: n=111; *90% of respondents are US-based; **1=not satisfied and<br />

5=very satisfied<br />

Source: Heidrick & Struggles, "The Digital Marketing Standard," provided to<br />

eMarketer, April 20, 2009<br />

103679 www.eMarketer.com<br />

emarketer_2000584_103679<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 8


Background: Factors that Contribute to the <strong>Measurement</strong> Issue<br />

Again, the growing pull toward more accountability in marketing is<br />

only reinforced by the severe economic climate. In the CMO Council’s<br />

annual “Marketing Outlook 2009” report among 650 marketing<br />

professionals worldwide, fully one-half said they were cutting their<br />

marketing budgets this year.As Liz Miller,VP of programs and<br />

operations at the CMO Council, said in the April 6, 2009, issue of BtoB<br />

magazine,“Everything we have seen and possibly predicted was that<br />

a typical knee-jerk reaction to the recession would happen—budgets<br />

would be slashed across the board and companies would look at<br />

marketing as if it were a line item that must be removed immediately.”<br />

When marketers in the CMO Council survey were asked which<br />

media elements would see their budgets increased by more than<br />

5%, 33% of respondents cited interactive/Web, 25% indicated<br />

search marketing and 23% named social media.<br />

“There is an increase in those programs and<br />

media options that will have an ROI that can<br />

be measured and provide direct engagement<br />

with customers.” —Liz Miller,VP of programs and<br />

operations, CMO Council, in BtoB magazine,April 6, 2009<br />

Where Is Digital on the Accountability Front?<br />

The marketing accountability mandate extends to every form of<br />

media, including the Internet. But while the Web, in general, is<br />

perceived as highly accountable, the actual usage and success of<br />

measurement programs depends heavily on marketers’ objectives.<br />

Most marketers have a handle on measuring and calculating ROI<br />

for their search campaigns, which tend to be focused on shortterm,<br />

direct response results. Far fewer have mastered the art<br />

(and science) of assessing the impact of their branding efforts,<br />

which tend to have a longer-term focus and are much harder and<br />

more complex to measure.<br />

But the industry is gradually waking up to the fact that marketers and<br />

their agencies have been overemphasizing search while<br />

simultaneously devaluing their online branding efforts—largely<br />

because of inadequate measurement tools and platforms. In the<br />

aggregate, branding-oriented ads today account for slightly less than<br />

one-third (31.5%) of total online advertising dollars spent in the US.<br />

® <strong>Online</strong><br />

“I think if we came to an agreement on how a<br />

brand campaign influences a direct<br />

response campaign and understood how<br />

display advertising impacts search, that<br />

would be a game-changer. It would change<br />

the way our clients buy online media.”<br />

—Jeff Lanctot, chief strategy officer, Razorfish, in an<br />

interview with eMarketer,April 28, 2009<br />

“This recession is having a dislocation<br />

impact. It is causing advertisers to look<br />

more closely at the Internet because of the<br />

cost savings they might have [versus] if<br />

everything economically was fine. [The<br />

Internet’s] growth is slowing, [but] it’s<br />

gaining share.” —Gian Fulgoni, chairman and cofounder,<br />

comScore, in an interview with eMarketer,April<br />

15, 2009<br />

Consulting firm McKinsey & Co. conducted a study in June 2008 and<br />

found that only 20% of marketing executives worldwide claimed to<br />

use quantitative analytical techniques to optimize their online<br />

marketing efforts. Most used subjective—or gut—measures.<br />

In a more recent November 2008 survey by integrated marketing<br />

solutions provider Alterian, 47% of the 1,545 marketers and<br />

agencies polled said they used analytics to measure their online<br />

campaigns. Despite the obvious vested interest here, the Alterian<br />

survey suggests a positive trend for marketer adoption of analytics.<br />

More evidence that progress is being made for measuring the ROI<br />

of online advertising comes from a series of surveys among<br />

marketers conducted by PROMO magazine between 2007 and<br />

2009. In 2009, the Internet was deemed more profitable on an ROI<br />

basis than traditional media by 34% of respondents—up from<br />

21.6% in 2008 and 25.9% in 2007; only 7.4% felt the Internet was<br />

less profitable than traditional media in 2009.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 9


Background: Factors that Contribute to the <strong>Measurement</strong> Issue<br />

Interactive vs. Traditional Marketing ROI According to<br />

US Marketers, 2007-2009 (% of respondents)<br />

More profitable<br />

Equally profitable<br />

Less profitable<br />

8.4%<br />

4.7%<br />

7.4%<br />

Do not measure<br />

Do not know<br />

103776<br />

Looking specifically at the data analytics side, Forrester Research<br />

reported in May 2009 that over the next five years, US companies<br />

will more than double their aggregate spending on Web analytics,<br />

including data analysis of advertising campaign performance. The<br />

research firm sees such spending growing from $421 million in<br />

2009 to $953 million by 2014.<br />

“It’s sort of a chicken or egg problem in that<br />

measurement is expensive so it’s prudent to<br />

measure only big campaigns on major<br />

initiatives. So until more money’s spent<br />

online for branding, the measurement’s<br />

going to lag. If the measurement and metrics<br />

lag, how can we expect the offline dollars to<br />

pour in?” —Jeff Lanctot, chief strategy officer, Razorfish,<br />

in an interview with eMarketer,April 28, 2009<br />

® <strong>Online</strong><br />

16.0%<br />

11.5%<br />

13.9%<br />

10.1%<br />

9.0%<br />

Does not apply<br />

7.6%<br />

10.1%<br />

7.0%<br />

14.4%<br />

21.6%<br />

25.9%<br />

27.8%<br />

28.7%<br />

34.0%<br />

39.2%<br />

2007 2008 2009<br />

Note: numbers may not add up to 100% due to rounding<br />

Source: PROMO magazine, "2009 Promo Interactive Marketing Survey"<br />

conducted by Penton Research, April 1, 2009<br />

103776 www.eMarketer.com<br />

What Spending Trends Say About<br />

<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Spending trends by advertisers tell another side<br />

of the story about the state of online branding<br />

and its measurement.<br />

Total <strong>Online</strong> Spending—Slow but Positive<br />

Growth Ahead<br />

Like in every other media category, growth in online advertising<br />

spending is slowing. However, while traditional media—television,<br />

radio, magazines and (especially) newspapers—are experiencing<br />

cataclysmic, double-digit declines, Internet spending is slowing<br />

from a growth rate of more than 25% to about 4.5%. In fact,<br />

eMarketer sees online spending growth remaining positive<br />

throughout the duration of this recession. By year-end 2009, online<br />

ad spending will be just under the $25 billion mark.<br />

US <strong>Online</strong> Advertising Spending Growth, 2007-2013 (%<br />

change)<br />

2007 25.6%<br />

2008 10.6%<br />

2009 4.5%<br />

2010 9.4%<br />

2011 10.8%<br />

2012 13.5%<br />

2013 10.4%<br />

Source: eMarketer, April 2009<br />

102197 www.eMarketer.com<br />

102197<br />

For additional information on the above chart, see Endnote<br />

102197 | 104363 | 104366 in the Endnotes section.<br />

eMarketer’s projection of 4.5% growth for US online advertising in<br />

2009 is supported by a wide variety of independent sources, from<br />

media and research firms to investment banks. Although a few<br />

sources point to marginal declines, most predict online ad<br />

spending growth will remain positive.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 10


What Spending Trends Say About <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Comparative Estimates: US <strong>Online</strong> Advertising<br />

Spending Growth, 2009 (% change*)<br />

-6.0%<br />

104394<br />

For additional information on the above chart, see<br />

Endnote 104394 in the Endnotes section.<br />

® <strong>Online</strong><br />

-2.0%<br />

-5.0%<br />

-0.5%<br />

LiveRail, September 2008<br />

JupiterResearch, December 2008<br />

BMO Capital Markets, October 2008<br />

Wachovia, October 2008<br />

ZenithOptimedia, April 2009<br />

3.0%<br />

2.3%<br />

2.1%<br />

1.5%<br />

5.0%<br />

5.0%<br />

4.5%<br />

4.3%<br />

6.2%<br />

7.4%<br />

7.2%<br />

Jefferies & Company, February 2009<br />

1.0%<br />

Credit Suisse, February 2009<br />

0.1%<br />

10.0%<br />

13.0%<br />

Borrell Associates Inc., November 2008<br />

SNL Kagan, May 2009<br />

Collins Stewart LLC, May 2009<br />

GroupM, March 2009<br />

eMarketer, April 2009<br />

Citi Investment Research, January 2009<br />

ThinkPanmure LLC, October 2008<br />

Barclays Capital, May 2009<br />

Morgan Stanley, March 2009<br />

Thomas Weisel Partners, March 2009<br />

Myers Publishing LLC, May 2009<br />

Oppenheimer & Co. Inc., February 2009<br />

UBS, February 2009<br />

Cowen and Co., May 2009<br />

14.8%<br />

19.4%<br />

Note: *vs. prior year<br />

Source: eMarketer, April 2009; various, as noted, 2008 & 2009<br />

104394 www.eMarketer.com<br />

As an early indicator of how these full-year 2009 projections are<br />

playing out, the IAB reported in June that online ad spending was<br />

down by 5% in Q1. eMarketer benchmarks its future projections<br />

on IAB reports, which are conducted by accounting firm<br />

PricewaterhouseCoopers (PwC). Notably, eMarketer predicts a<br />

slight uptick in online ad spending growth during the second half<br />

of 2009.<br />

Surveys among marketers—the ones spending the money—<br />

confirm this online growth trend. In an Advertiser Perceptions<br />

study among 1,599 advertisers and agencies, conducted in April<br />

2009, just over one-half (51%) said they were increasing their<br />

online budgets over the next six months. While that is positive, it is<br />

down from 72% just one year ago.<br />

Particularly in this harsh economic environment, any increases in<br />

online advertising spending will likely come at the expense of<br />

traditional media budgets. In a worldwide study by McKinsey in<br />

June 2008, a majority of marketers (55%) said they were cutting<br />

their traditional media budgets precisely in order to fund more<br />

digital efforts. Several even more recent surveys corroborate this<br />

migration from traditional to digital.<br />

But not all ad formats in the online sector are trending in the same<br />

direction. Spending on display ads, which usually serve a<br />

marketer’s longer-term branding objectives, is headed downward.<br />

Conversely, spending on search, which is usually considered a<br />

direct response vehicle designed to achieve immediate results, is<br />

holding steady.<br />

Search versus Display Trends<br />

By year-end 2008, search had grown to account for fully 45% of all<br />

online advertising spending in the US. The current economic<br />

climate will only accelerate this trend, with the result that<br />

marketers will spend nearly 49% of their online budgets on<br />

search—primarily for its direct response capabilities. Static display<br />

advertising, on the other hand, will see its share slip from 20.8% of<br />

online ad dollars in 2008 to 19% this year.<br />

US <strong>Online</strong> Display and Search Advertising Spending<br />

Share, 2008-2013 (% of total)<br />

2008 2009 2010 2011 2012 2013<br />

Search* 45.0% 48.8% 50.5% 50.4% 49.4% 49.3%<br />

Display ads** 20.8% 19.0% 18.0% 17.0% 16.1% 14.9%<br />

Note: *paid listings, contextual text links and paid inclusion; **banner ads<br />

only, excludes rich media and video<br />

Source: eMarketer, April 2009<br />

104600<br />

104600<br />

www.eMarketer.com<br />

For additional information on the above chart, see<br />

Endnote 104597 | 104600 in the Endnotes section.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 11


What Spending Trends Say About <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

In terms of dollars spent, search advertising will grow 13.4% in<br />

2009, while display ads will shrink by 4.6%.<br />

US <strong>Online</strong> Display and Search Advertising Spending<br />

Growth, 2008-2013 (% change)<br />

2008 2009 2010 2011 2012 2013<br />

Search* 19.8% 13.4% 13.2% 10.6% 11.2% 10.2%<br />

Display ads** 9.4% -4.6% 3.6% 4.4% 7.8% 2.2%<br />

Note: *paid listings, contextual text links and paid inclusion; **banner ads<br />

only, excludes rich media and video<br />

Source: eMarketer, April 2009<br />

104597<br />

104597<br />

www.eMarketer.com<br />

For additional information on the above chart, see<br />

Endnote 104597 | 104600 in the Endnotes section.<br />

After the downward blip in 2009, display ad spending growth will<br />

enter positive territory again in 2010, but at a rate of only 3.6%,<br />

while search will climb 13.2%.<br />

Over the next several years, display ads as a percent of total<br />

online advertising will shrink from 19% in 2009 to just below 15%<br />

in 2013. Other researchers and analyst firms forecast a similar<br />

downward trend.<br />

® <strong>Online</strong><br />

More Evidence that Display Ad Spending Will Shrink<br />

eMarketer is not alone in thinking 2009 will see search budgets<br />

continue to ascend while spending growth on display ads<br />

goes negative.<br />

In the comparative estimates chart below, every single research<br />

firm, investment bank and media house predicts a positive trend<br />

for search ad dollars this year, with a range of 1% growth (Cowen<br />

and Co., Myers Publishing) to 21% (BMO Capital Markets). On the<br />

other hand, there is a consensus that display spending will see<br />

negative growth. Investment bank Oppenheimer & Co. is the<br />

most pessimistic, projecting display ad spending will tumble 15%<br />

this year.<br />

Comparative Estimates: US <strong>Online</strong> Display and Search<br />

Advertising Spending Growth, 2009 (% change*)<br />

<strong>Online</strong><br />

display<br />

Search<br />

Barclays Capital, May 2009 -1.0% 10.0%<br />

BMO Capital Markets, October 2008 -2.0% 21.0%<br />

Citi Investment Research, November 2008 -5.0% 14.0%<br />

Collins Stewart, November 2008 3.0% 13.0%<br />

Cowen and Company, May 2009 - 1.0%<br />

Credit Suisse, January 2009 -5.9% 8.1%<br />

eMarketer, April 2009 -4.6% 13.4%<br />

Forrester Research, April 2009 1.7% 13.9%<br />

JPMorgan, January 2009 6.3% 9.9%<br />

Myers Publishing LLC, May 2009 -3.0% 1.0%<br />

Oppenheimer & Co., February 2009 -15.0% 10.0%<br />

SNL Kagan, May 2009 4.6% 9.1%<br />

ThinkPanmure, October 2008 -5.0% 13.0%<br />

ZenithOptimedia, April 2009<br />

Note: *vs. prior year<br />

-1.8% 9.0%<br />

Source: eMarketer, April 2009; various, as noted, 2008 & 2009<br />

104573<br />

104573<br />

www.eMarketer.com<br />

For additional information on the above chart, see<br />

Endnote 104573 in the Endnotes section.<br />

“It’s time we woke up and faced reality.<br />

<strong>Online</strong> display-ad spending will fall in 2009,<br />

probably sharply.” —Henry Blodget, CEO, Silicon Alley<br />

Insider, October 20, 2008<br />

Quarterly reports offered by Nielsen and TNS provide an early look<br />

at how these display spending projections are coming along. For<br />

Q1 2009, however, the sources provide opposite views: Nielsen<br />

Co. says display ad spending was down 3.5%, while TNS Media<br />

Intelligence reports it was up 8.2%.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 12


What Spending Trends Say About <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

The reason for the disparity is that each firm is measuring a<br />

different thing. Specifically, Nielsen, which reported a 3.5% drop in<br />

display ad spending, only counts CPM-based display spending.<br />

TNS Media Intelligence, on the other hand, which reported an 8.2%<br />

increase, includes both CPM and cost-per-action/cost-per-click<br />

deals. We can conclude two things from this data:<br />

1. <strong>Online</strong> display ad spending continues to increase.<br />

2. Advertisers are shifting from CPM deals to pay-for-performance.<br />

Surveys of marketers and ad agencies tell the same negative<br />

story. For example, in a January 2009 AdMedia Partners survey of<br />

marketers worldwide, 76% expected to increase their search<br />

spending in 2009, with only 7% planning a decrease. In contrast,<br />

only 26% saw increases for display advertising, while 45% were<br />

predicting a decline.<br />

Change in <strong>Online</strong> Marketing Spending in 2009<br />

According to Senior Marketing Executives Worldwide<br />

(% of respondents)<br />

Increase Flat Decrease<br />

Word-of-mouth/social media marketing 77% 12% 11%<br />

Search marketing 76% 18% 7%<br />

Mobile marketing 75% 14% 11%<br />

Behavioral/contextual marketing 70% 22% 7%<br />

Lead generation 63% 29% 9%<br />

CRM/analytics 60% 31% 9%<br />

Video advertising 60% 24% 16%<br />

E-mail marketing 58% 31% 11%<br />

<strong>Online</strong> gaming/in-game advertising 51% 30% 18%<br />

<strong>Online</strong> media buying/planning 47% 40% 13%<br />

Affiliate marketing 46% 35% 19%<br />

Web development 39% 38% 23%<br />

Market research 27% 50% 23%<br />

Display advertising 26% 29% 45%<br />

Note: numbers may not add up to 100% due to rounding<br />

Source: Ad Media Partners, "2009 Merger and Acquisition Prospects for<br />

Advertising, Marketing Services and Interactive Firms," January 28, 2009<br />

101734<br />

emarketer_2000584_101734<br />

www.eMarketer.com<br />

One upside indicator on display ads comes from the world’s<br />

largest spender on advertising, Procter & Gamble. According to<br />

the June 8, 2009, issue of Advertising Age, P&G decreased its<br />

measured media spending by 18% in Q1 2009 but more than<br />

doubled its spending on online display ads, as measured by TNS.<br />

Similarly, P&G’s rival Johnson & Johnson nearly doubled its<br />

spending on Internet display ads in the same quarter. Both<br />

increases, though, were from very small bases.<br />

It is also instructive to look at how marketers are using display ads.<br />

According to AdRelevance, which measures impressions by<br />

objective, advertisers have been slightly increasing their use of<br />

display ads as a means to achieve direct response objectives, with<br />

73% of impressions focused on direct response in Q4 2008. At the<br />

beginning of 2008, only 68% of display impressions were directresponse-focused.<br />

<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong>: Special Report 13<br />

104214<br />

“So much of the investment that has been<br />

made online has been very much tied to<br />

direct marketing campaigns. The dollar<br />

investment made in search alone is<br />

representative of that.” —Pam Horan, president,<br />

<strong>Online</strong> Publishers Association (OPA), in an interview with<br />

eMarketer,April 27, 2009


What Spending Trends Say About <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Dollar Trends Don’t Tell the Whole Story<br />

Just because the analysts predict negative growth for online<br />

display advertising and most advertisers give it short shrift in their<br />

marketing efforts does not mean that display ads necessarily<br />

deserve the bad rep.<br />

In fact, a pullback or complete retrenchment from display<br />

advertising could end up being a big mistake for marketers.<br />

There are four interrelated factors impeding the growth of online<br />

display ad spending:<br />

■ A depressed economy, along with severely reduced media<br />

budgets overall<br />

■ Intense pressure on pricing for display units, which, in turn, is a<br />

function of both the economy and the proliferation of ad<br />

networks (more than 400 at last count), which tend to<br />

commoditize pricing<br />

■ A lack of adequate measurement systems to justify the use of<br />

display ads<br />

■ A tendency for marketers, in the context of draconian budget<br />

cutbacks, to focus their marketing efforts on below-the-line,<br />

direct response initiatives<br />

The last factor represents a familiar pattern for marketers. As<br />

Randall Rothenberg, CEO of the IAB, said on his clog (a cross<br />

between a blog and a column): “It’s an axiom of marketing that<br />

when the economy gets rough, marketers shift budgets from<br />

above-the-line programs to below-the-line—that is, they trade off<br />

longer-term effects of brand-building for the shorter-term need to<br />

move product.”<br />

This thinking was echoed by the results of an April 2009 survey<br />

among 129 marketers conducted by the Association of National<br />

Advertisers (ANA). In the study, two-thirds of marketers said they<br />

had shifted their focus to more short-term strategies over the past<br />

six months in response to the economy.<br />

Pricing Pressures<br />

<strong>Online</strong> display ads are typically sold on a cost-per-thousand (CPM)<br />

impression basis. According to Credit Suisse, online display ad<br />

CPMs are headed downward for the next several years, projected<br />

to fall from an average of $2.46 in 2008 to $2.30 by 2013, resulting<br />

in a cumulative decrease of 6.5%. Note that these prices are<br />

representative of traditional banner ads. <strong>Online</strong> video ads, for<br />

example, typically garner a CPM of $15 or higher.<br />

® <strong>Online</strong><br />

“Ad networks have driven CPMs down to a<br />

terrible level.” —David Verklin, CEO, Canoe Ventures,<br />

as quoted in MediaPost’s <strong>Online</strong>MediaDaily,April 29, 2009<br />

At $2.46 in 2008, average online CPMs were less expensive than<br />

every form of traditional media, with the exception of outdoor,<br />

according to Jefferies & Co.<br />

US Advertising CPM, by Media, 2008<br />

Broadcast TV $10.25<br />

Syndication TV $8.77<br />

Magazines $6.98<br />

Cable TV $5.99<br />

Newspapers $5.50<br />

Radio $4.54<br />

Outdoor $2.26<br />

Source: Jefferies & Company, Media Dynamics, InterMedia Dimensions and<br />

company reports, "Snapshot of the Global Media Landscape," provided to<br />

eMarketer, February 2009<br />

103170 www.eMarketer.com<br />

103170<br />

“Two elements working in online display<br />

advertising’s favor are that its tracking<br />

capabilities have been improved and its<br />

pricing made more reasonable.” —Nate Elliott,<br />

principal analyst, Forrester Research, as quoted in BtoB<br />

magazine,April 6, 2009<br />

CPM pricing for display ads purchased through ad networks is also<br />

on the decline. According to the Q4 2008 report from PubMatic,<br />

display ads sold through ad networks decreased by 48% in that<br />

quarter compared with Q4 2007. More recently, CPMs on ad<br />

networks were estimated to be down by 20% to 30% in Q1 2009<br />

from Q4 2008, as measured by the Rubicon Project.<br />

Of course, this downward CPM trend may also create an<br />

opportunity. Marketers can buy display ads relatively cheaply<br />

now—at a time when budgets are particularly tight. For brand<br />

marketers, this is a buyer’s market.<br />

Not only are the lower CPMs on display ads creating potential<br />

savings for advertisers, the decreased volume of display ads in the<br />

aggregate is reducing the clutter of online ads. Many studies,<br />

including one by Nielsen, report that having fewer ads per<br />

Webpage results in significant increases in unaided recall.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 14


What Spending Trends Say About <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Beyond Banners: Other <strong>Online</strong> Formats Will Boost<br />

Overall <strong>Brand</strong>ing Dollars<br />

While traditional display ad units—mostly banners—currently<br />

represent the bulk of brand-oriented ad dollars online, other forms<br />

of online brand ads are growing at a much faster rate. In addition to<br />

banner ads, totaling $4.7 billion in 2009, rich media and video ads<br />

account for another $2.7 billion. Other forms of brand advertising—<br />

mainly sponsorships—make up an additional $300 million, bringing<br />

total online brand ad spending in 2009 to $7.7 billion.<br />

US <strong>Online</strong> Advertising Spending, by Format and<br />

Objective, 2008- 2013 (millions)<br />

2008 2009 2010 2011 2012 2013<br />

Display ads $4,877 $4,655 $4,824 $5,034 $5,426 $5,543<br />

Video $734 $1,054 $1,501 $2,109 $3,134 $4,092<br />

Rich media $1,642 $1,691 $1,849 $2,079 $2,359 $2,641<br />

Sponsorships $387 $319 $348 $386 $438 $484<br />

<strong>Brand</strong>ing total $7,640 $7,718 $8,522 $9,608 $11,357 $12,760<br />

Search $10,546 $11,956 $13,534 $14,969 $16,648 $18,340<br />

Classifieds $3,174 $2,671 $2,412 $2,554 $2,831 $2,976<br />

Lead generation $1,683 $1,764 $1,930 $2,138 $2,393 $2,604<br />

E-mail $405 $392 $402 $431 $472 $521<br />

Direct response $15,808 $16,783 $18,278 $20,092 $22,343 $24,440<br />

total<br />

Grand total $23,448 $24,500 $26,800 $29,700 $33,700 $37,200<br />

Note: numbers may not add up to total due to rounding<br />

Source: eMarketer, April 2009<br />

104363<br />

104363<br />

www.eMarketer.com<br />

For additional information on the above chart, see Endnote<br />

102197 | 104363 | 104366 in the Endnotes section.<br />

® <strong>Online</strong><br />

Importantly, when all the branding-related components<br />

are combined, the aggregate dollars show a positive<br />

growth rate for every year from 2009 though 2013. Total<br />

online branding dollars will rise 1% in 2009 and 10.4% in 2010,<br />

followed by double-digit increases thereafter.<br />

US <strong>Online</strong> Advertising Spending Growth, by Format<br />

and Objective, 2008-2013 (% change)<br />

2008 2009 2010 2011 2012 2013<br />

Video 126.5% 43.5% 42.5% 40.5% 48.6% 30.6%<br />

Rich media -0.8% 3.0% 9.4% 12.4% 13.5% 12.0%<br />

Sponsorships -39.2% -17.7% 9.4% 10.8% 13.5% 10.4%<br />

Display ads 9.4% -4.6% 3.6% 4.4% 7.8% 2.2%<br />

<strong>Brand</strong>ing total 8.0% 1.0% 10.4% 12.7% 18.2% 12.4%<br />

E-mail -4.5% -3.2% 2.6% 7.1% 9.6% 10.4%<br />

Search 19.8% 13.4% 13.2% 10.6% 11.2% 10.2%<br />

Lead generation 6.3% 4.8% 9.4% 10.8% 11.9% 8.8%<br />

Classifieds -4.4% -15.9% -9.7% 5.9% 10.8% 5.1%<br />

Direct response total 11.8% 6.2% 8.9% 9.9% 11.2% 9.4%<br />

Grand total 10.6% 4.5% 9.4% 10.8% 13.5% 10.4%<br />

Source: eMarketer, April 2009<br />

104366<br />

104366<br />

www.eMarketer.com<br />

For additional information on the above chart, see Endnote<br />

102197 | 104363 | 104366 in the Endnotes section.<br />

Video ad spending alone will climb at a 40%-plus growth rate for<br />

the next few years.<br />

A Special Note on Social Media Dollar Trends<br />

While social media spending by US advertisers was on an upward<br />

trajectory until the recession hit, eMarketer now predicts the market<br />

for social network advertising will actually decrease by 3% in 2009.<br />

The lack of measurement standards, or even a clear idea of what<br />

and how to measure, is the primary factor inhibiting spending.<br />

Surveys can be misleading, particularly if the results are<br />

misinterpreted. If you poll advertisers, they will tell you that even in<br />

the face of this recession, they are planning to boost their<br />

spending on social media. In fact, several recent surveys, including<br />

ones from Aberdeen Group, Millward Brown, Forrester and<br />

MarketingSherpa, suggest that about one-half of advertisers or<br />

more plan to increase their social media spending. But even if<br />

these increases happen, they will be from very small bases.<br />

According to Forrester, three-quarters of marketers looking to do<br />

social media advertising have earmarked only $100,000 or less.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 15


Drill Down: What Are the Problems?<br />

What are the fundamental problems with online<br />

brand measurement today? Ask a few dozen<br />

experts—from agency executives and marketers<br />

to representatives from the various trade<br />

associations and research firms—and you will<br />

likely get a few dozen answers.<br />

eMarketer posed the question directly to experts in the field of<br />

online measurement, and the responses were, predictably, all over<br />

the map. And that fact alone—that the players can’t even agree on<br />

where to begin—is the overarching problem. Fortunately, though,<br />

a closer analysis reveals several common themes that indicate the<br />

problems are so highly interrelated that solving one can solve<br />

others at the same time.<br />

Q&A: What is the single biggest problem with online<br />

brand measurement today?<br />

“In our marketing accountability survey, only about 33% of marketers<br />

were satisfied with their marketing accountability and measurement<br />

programs.We don’t have enough standardization or enough useful<br />

marketing media mix intelligence and understanding. Studies and<br />

research offer guidance, but marketers complain that by the time<br />

they get the answers back, the media world has shifted and the mix<br />

or model is no longer relevant.” Full Interview<br />

“I think it’s really hard to create a panel of size and scale and a<br />

technique to do surveys that aren’t interruptive. You can do<br />

custom one-offs with one of the research companies that don’t<br />

scale or are very focused on individual campaigns, but they don’t<br />

tell the whole story.” Full Interview<br />

® <strong>Online</strong><br />

Bob Liodice<br />

President and Chief Executive Officer<br />

Association of National Advertisers,<br />

trade association<br />

Curt Hecht<br />

President<br />

Publicis Groupe’s VivaKi Nerve Center<br />

(includes Digitas, Starcom MediaVest<br />

Group, ZenithOptimedia and Denuo)<br />

Joe Laszlo<br />

Director of Research<br />

Interactive Advertising Bureau,<br />

trade association<br />

“There are two big problems: I’m hearing from our publisher<br />

members that there is a kind of panel fatigue among people who<br />

are asked to take online surveys that are quantifying brand<br />

impact. Panel recruitment and response rates are issues. The<br />

second is an assumption that the Internet is not good for<br />

branding—there is a continued lack of awareness on the part of<br />

marketers and agencies.” Full Interview<br />

Michael Mendenhall<br />

Chief Marketing Officer<br />

Hewlett-Packard,<br />

marketer<br />

“Marketers monitor the front end and the back end so they see<br />

clickstreams and commerce.The difficult part is the qualitative part<br />

in between, which is the level of engagement.The challenge is to<br />

begin to build technological capabilities that allow them to see the<br />

complete digital footprint that a consumer leaves when they engage<br />

with the brand and then be able to address that consumer in a<br />

relevant way—behaviorally, contextually or both.” Full Interview<br />

Young-Bean Song<br />

Senior Director of Analytics & Atlas Institute<br />

Microsoft Advertising,<br />

Microsoft Corp.’s digital<br />

marketing and media solutions provider<br />

“I think it’s not having those foundational reach, frequency and GRP<br />

metrics.You will never see P&G and Unilever spend more than<br />

single digits (millions) unless we give them reach, frequency and<br />

GRPs.Their entire business model is based on media mix models<br />

where those are the inputs and the outputs.” Full Interview<br />

A General Apathy Toward <strong>Brand</strong>ing<br />

In this harsh economic environment, does branding even matter<br />

to marketers?<br />

“<strong>Brand</strong>ing is the hardest thing to justify, and everybody looks to<br />

that budget first,” as Bob Thacker, the senior vice president for<br />

marketing at OfficeMax, told Advertising Age in May 2009.<br />

Any progress or advancements made in the field of online brand<br />

measurement will be heavily dependent on the overall demand<br />

for brand-oriented advertising.<br />

Due to the economy and resultant short-term sales pressures<br />

today, it appears branding will be taking a bit of a backseat to other<br />

business priorities, at least according to most of the studies and<br />

surveys eMarketer evaluated for this report.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 16


Drill Down: What Are the Problems?<br />

“However strongly you believe in your brand,<br />

you have to do your bit to reduce spending<br />

at tough times like these.” —Marty Ordman, vice<br />

president, marketing and communications, Dole Food Co.,<br />

speaking at the ANA <strong>Brand</strong> Conference, as cited in<br />

Advertising Age, May 13, 2009<br />

In the one clear exception to the rule, the ANA released results<br />

from a “<strong>Brand</strong> Building in Tough Times and Beyond” study at its<br />

May 2009 conference of the same name. In close alignment with<br />

the theme of the conference, 74% of senior marketers responded<br />

that “brand equity” is very important to their company’s success.<br />

Yet a wealth of other survey data suggests otherwise—namely,<br />

that brand-building will remain a low priority during the recession.<br />

The ANA survey provides the first case in point. In its sampling of<br />

129 marketers, two-thirds admitted that the recession had shifted<br />

the focus of their companies to short-term results, as opposed to<br />

the longer-term results associated with branding.<br />

According to a recent MarketingProfs survey conducted among<br />

670 marketers in October 2008, while more than one-quarter of<br />

respondents identified customer acquisition (29.9%) and customer<br />

retention (26.6%) as top goals, only 15.4% cited “creating<br />

awareness for long-term brand-building” as a top priority.<br />

Most Important Marketing Objective According to US<br />

Marketers, October 2008 (% of respondents)<br />

Acquire new customers not currently in the category<br />

Customer retention (upsell, encourage repeat purchase)<br />

Lead generation to support sales<br />

Creating awareness for long-term brand building<br />

15.4%<br />

Taking customers away from competitors<br />

7.0%<br />

Note: n=670; numbers may not add up to 100% due to rounding<br />

Source: MarketingProfs, "Impact of Economic Crisis," provided to<br />

eMarketer, October 20, 2008<br />

098997 www.eMarketer.com<br />

emarketer_2000584_098997<br />

® <strong>Online</strong><br />

21.3%<br />

29.9%<br />

26.6%<br />

Similar results were found by Heidrick & Struggles in a December<br />

2008 survey of US senior executives. <strong>Brand</strong>ing took sixth place<br />

among their top priorities over the next 12 to 18 months.<br />

Top Priorities in the Next 12-18 Months According to<br />

US* Senior Executives, November-December 2008<br />

(scale of 1-5**)<br />

Acquire new customers 4.22<br />

Increase customer retention 3.90<br />

Increase customer lifetime value 3.74<br />

Improve marketing ROI 3.64<br />

Launch new products/services 3.59<br />

Increase brand awareness 3.46<br />

Improve marketing's impact on shareholder value 3.36<br />

Acquire, develop and retain talent 3.31<br />

Expand to new geographies 2.62<br />

Note: n=111; *90% of respondents are US-based; **1=not important and<br />

5=extremely important<br />

Source: Heidrick & Struggles, "The Digital Marketing Standard," provided to<br />

eMarketer, April 20, 2009<br />

103672 www.eMarketer.com<br />

emarketer_2000584_103672<br />

Another survey, from Datran Media, shows that the marketers’<br />

current focus on driving customer acquisition and retention at the<br />

expense of brand-building goals (such as increasing brand<br />

awareness or favorability) is not just a US trend. The survey,<br />

conducted among 3,000 marketers worldwide, found that while<br />

increased customer acquisition and retention were rated most<br />

important by 63.2% and 43.7% of respondents, respectively, only<br />

14.1% rated branding measures as highly.<br />

Advertising Goals for 2009 According to Marketers<br />

Worldwide, by Level of Importance (% of respondents)<br />

Most Important Less Least<br />

important<br />

important important<br />

New customer<br />

acquisition<br />

63.2% 32.7% 2.2% 2.6%<br />

Increased brand<br />

awareness<br />

14.0% 48.7% 26.0% 11.3%<br />

Increased brand<br />

favorability<br />

14.1% 48.7% 26.6% 11.4%<br />

Increased<br />

customer<br />

retention<br />

43.7% 43.7% 7.8% 5.6%<br />

Note: n=3,000+; numbers may not add up to 100% due to rounding<br />

Source: Datran Media, "3rd Annual Marketing & Media Survey," January 27,<br />

2009<br />

101242<br />

101242<br />

www.eMarketer.com<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 17


Drill Down: What Are the Problems?<br />

Similarly, in the context of interactive campaigns, Forbes<br />

conducted a survey of 112 senior marketers primarily in the US in<br />

early 2009 and found that direct response measurements were<br />

significantly more popular than branding metrics as a gauge for<br />

success. While 70% of all respondents identified conversions as<br />

the leading measure of success and 49% mentioned click-through<br />

rates, only 25% cited brand-building metrics.<br />

Most Important Metrics for Measuring <strong>Online</strong><br />

Marketing Campaign Success According to US*<br />

Senior-Level Marketing Executives, by Budget Size,<br />

February-March 2009 (% of respondents)<br />

$1 million+ All<br />

(n=49) respondents<br />

(n=112)<br />

Conversions or sales<br />

82% 70%<br />

Registrations/subscriptions via organization's<br />

Website<br />

55% 52%<br />

Click-throughs<br />

51% 49%<br />

Unique views to Website or page where ad or<br />

content was placed<br />

51% 37%<br />

Boost in search rank<br />

39% 34%<br />

Downloads of data of information<br />

33% 37%<br />

Change in target audience awareness/<br />

perceptions of brand<br />

31% 25%<br />

Customer feedback on Website<br />

16% 26%<br />

Number of target audience members reached 14% 13%<br />

Streams of video or audio content<br />

8%<br />

6%<br />

Other<br />

6%<br />

3%<br />

Note: *respondents were primarily based in the US<br />

Source: Forbes, "2009 Ad Effectiveness Survey," June 1, 2009<br />

104355<br />

104355<br />

www.eMarketer.com<br />

The low ranking for branding is partly explained by a survey from<br />

the ANA. In its October 2008 study, just when the financial crisis<br />

began in earnest, marketers were asked to cite methods they<br />

were using for measuring brand growth. Fully 70% said the answer<br />

was “sales and net income,” which is about as blunt and bottomline<br />

a measure as you can get.<br />

Method Used to Measure <strong>Brand</strong> Growth According to<br />

US Marketers, October 2008 (% of respondents)<br />

Sales and net income 70%<br />

Note: numbers may not add up to 100% due to rounding<br />

Source: Association of National Advertisers (ANA) as cited in press release,<br />

October 29, 2008<br />

099230 www.eMarketer.com<br />

099230<br />

® <strong>Online</strong><br />

Third-party brand equity valuations 15%<br />

Shareholder value 9%<br />

Household penetration 4%<br />

Company culture 3%<br />

Again, even though marketers appear to be temporarily retreating<br />

from branding initiatives, including deploying and measuring<br />

online brand campaigns, it does not mean that is the right thing to<br />

do. Mr. Liodice, the CEO of the ANA, summed it up best: “It has<br />

been demonstrated empirically, time and again, that stronger,<br />

higher-valued brands lead to stronger, better business results.”<br />

A Preoccupation with Search, at the Expense<br />

of <strong>Brand</strong>ing<br />

In the InsightExpress poll conducted for this report, 83.7% of<br />

marketing professionals from a variety of disciplines and<br />

companies agreed or strongly agreed with the following statement:<br />

“<strong>Online</strong> search—because it’s so easily measured and is<br />

often the last click before a purchase—is getting too<br />

much credit. We therefore undervalue the branding<br />

effects of online advertising formats such as banners,<br />

interactive rich media and video.”<br />

Only 16.2% of respondents were neutral, and not a single one<br />

disagreed with the statement.<br />

US Marketing Executives Who Agree that <strong>Online</strong><br />

Search Is Given Too Much Credit in <strong>Online</strong> <strong>Brand</strong><br />

<strong>Measurement</strong>, April 2009 (% of respondents)<br />

Neutral<br />

16.2%<br />

Note: n=37; numbers may not add up to 100% due to rounding; no<br />

respondents chose "disagree" or "strongly disagree"<br />

Source: eMarketer, "<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong> Survey" conducted by<br />

InsightExpress, June 2009<br />

104493 www.eMarketer.com<br />

104493<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 18<br />

Agree<br />

43.2%<br />

Strongly agree<br />

40.5%


Drill Down: What Are the Problems?<br />

A few responses from the InsightExpress<br />

poll explain why search gets too much<br />

credit:<br />

® <strong>Online</strong><br />

“It’s easy to measure the last click and attribute all<br />

of the credit to search. It’s the perfect attribution<br />

model for the lazy [marketer].”<br />

“There is minimal branding and emotional<br />

transference with SEM marketing. Search does very<br />

little to complement a cross-platform marketing<br />

plan. <strong>Brand</strong>ing through visuals is still paramount in<br />

getting people excited, and for establishing an<br />

emotional connection with a product.”<br />

“Generally speaking, marketers attribute 100% of<br />

transactional performance to search knowing that<br />

other preference-building messaging leads the<br />

consumer down the purchase pathway.”<br />

Too many marketers are not even measuring their online branding<br />

efforts.According to a May 2008 PROMO magazine survey of 148<br />

US marketers (who subscribe to the magazine, which skews<br />

toward direct response marketers), only 41.5% said they measured<br />

metrics for online brand awareness.A much higher percentage<br />

(58.5%) used the far less meaningful click-through metric.<br />

Metrics Used by US Marketers to Measure Interactive<br />

Campaign Effectiveness, 2007 & 2008 (% of<br />

respondents)<br />

2007 2008<br />

Click-throughs 51.0% 58.5%<br />

Incremental sales 41.1% 43.5%<br />

Offer response rates 44.5% 42.9%<br />

<strong>Brand</strong> awareness 36.5% 41.5%<br />

Lead generation 40.7% 36.1%<br />

Return-on-promo investment 34.2% 34.7%<br />

Increased understanding of customer 26.6% 23.8%<br />

Coupon redemption rates 16.3% 19.0%<br />

Engagement with Web content 12.2% 16.3%<br />

Media impressions 24.7% 16.3%<br />

Improved sales margins 4.6% 4.9%<br />

Don't measure * 2.0%<br />

Does not apply<br />

Note: *not asked in 2007<br />

4.9% 2.7%<br />

Source: PROMO magazine, "2008 Promo Interactive Marketing Survey"<br />

conducted by Penton Research, May 2008<br />

097957<br />

097957<br />

www.eMarketer.com<br />

A January 2008 survey by Sapient found similar results, with only<br />

48% of marketers saying they measured online branding<br />

campaigns; in contrast, 71% measured search and 82% measured<br />

Website analytics.<br />

Not surprisingly, brand marketers are frustrated. Having found<br />

themselves in hot pursuit of direct response metrics, they are not<br />

getting the answers to the most fundamental questions they have<br />

about their online branding efforts.<br />

Wenda Harris Millard, president of consultancy Media Link and<br />

immediate past chair of the IAB, explained it this way in an<br />

interview with eMarketer: “<strong>Brand</strong> marketers really want to know<br />

who they’re reaching. We keep talking about impressions. They<br />

[brand marketers] want classic demographics. Impressions are not<br />

a substitute for knowing who you will reach. They also want to<br />

know how long someone looked at an ad and what happened. Did<br />

it leave a favorable impression of the brand? Will someone try this<br />

product? And did somebody take an action at any point? They<br />

want to create awareness and then know whether they changed a<br />

consumer’s perception or induced trial.”<br />

Ms. Millard, who previously held senior sales and media positions<br />

at Yahoo! and Martha Stewart Living Omnimedia, continued,<br />

“<strong>Brand</strong> marketers are frustrated about not getting answers to<br />

those basic questions, so they end up looking at online as more of<br />

a performance-oriented medium. The agencies, in many cases,<br />

are using classic direct marketing metrics and trying to measure<br />

brand impact using those metrics—but that doesn’t answer the<br />

marketers’ real questions.”<br />

Killer Stat for the Purchase Funnel: 94%<br />

When a Microsoft Atlas Institute study examined the 90-day<br />

timeline for a typical purchase funnel, it found that companies<br />

often disregard 94% of the data available to them when assessing<br />

online campaigns. The study also revealed that marketers<br />

attribute far too much weight to activity occurring at the very<br />

bottom of the sales funnel, concentrating heavily on the last ad<br />

clicked, which often appears on a search engine.<br />

Traditional AIDA Model Representing Consumer<br />

Purchase Funnel<br />

A wareness<br />

I nterest<br />

Desire<br />

Action<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 19


Drill Down: What Are the Problems?<br />

Commenting on the study, Esco Strong, senior group manager of<br />

the Atlas Institute, said, “It’s a myopic view that disregards the<br />

points at the top of the funnel that brought the consumers down<br />

to the bottom.” Mr. Strong added, “You make someone aware at<br />

the top of the funnel, target them with specific information in the<br />

middle, and drive them to buy with search at the end.”<br />

Not everyone in the industry is in agreement about where in the<br />

funnel the most work needs to be done. Some, such as Curt Hecht,<br />

president of VivaKi Nerve Center, believe the top of the sales<br />

funnel is trickiest since it deals with attitudes. “Once you get into<br />

real behavior around intent and helping clients come up with<br />

proxies to show levels of interest, it’s the attitudinal metrics at the<br />

top of the funnel that are harder to come up with,” said Mr. Hecht,<br />

in an interview with eMarketer.<br />

Others, such as Ken Mallon, senior vice president-custom solutions<br />

and ad effectiveness consulting at Dynamic Logic, a firm that<br />

measures brand metrics for online campaigns, think the ad industry<br />

has got the top part of the funnel licked, but the bottom part—tying<br />

intentions to end results—presents the biggest challenge.<br />

“The hardest part is the last step, [measuring] what happens after<br />

someone makes an intent to purchase,” said Mr. Mallon, in an<br />

interview with eMarketer. “What happens after someone raises<br />

their hand and says, ‘Yes, I do intend to go to that movie. I do<br />

intend to buy that car in the next 90 days.’ How does intent<br />

translate into actual purchase?”<br />

Agreeing with Mr. Mallon is Jeff Lanctot, the chief strategy officer<br />

of interactive agency Razorfish, who told eMarketer in an<br />

interview: “[Our clients] see the opportunity to tie attitudinal<br />

measures to behavioral measures, and that’s where the<br />

complexity comes in. There’s value in measuring those tried-andtrue<br />

attitudinal metrics but also in recognizing that there’s another<br />

piece to the puzzle—actual behavior. Did consumers purchase?<br />

Did they register? Did they take that end action? Digital yields<br />

valuable insights and also creates incredible complexity.”<br />

To make things even more complicated, some stakeholders even<br />

question whether the standard sales funnel model is adequate to<br />

represent the complexity in today’s digital world.<br />

® <strong>Online</strong><br />

“We’re asking ourselves whether the funnel<br />

construct is actually the right one. The<br />

research we’ve seen shows that the<br />

purchase decision process is far more<br />

complex and nonlinear than a simple funnel.<br />

[For example,] I don’t think we have a good<br />

idea of how peer influence works in a funnel<br />

construct. There’s been very little progress to<br />

evaluate the impact of those [social]<br />

conversations on brands.” —Jeff Lanctot, chief<br />

strategy officer, Razorfish, in an interview with eMarketer,<br />

April 28, 2009<br />

Key Stat<br />

According to the Atlas Institute, if marketers only look<br />

at search, which is often the “last ad clicked,” they are<br />

missing 94% of their engagement touchpoints.<br />

“Some marketers are starting to use the<br />

technology that manages online ad<br />

campaigns (the ad-serving platform) to<br />

assess the impact of all online touchpoints,<br />

instead of basing the optimization of media<br />

on the last click before a conversion.”<br />

—Jacques Bughin,Amy Guggenheim Shenkan and Marc<br />

Singer,The McKinsey Quarterly, October 2008<br />

Clearly, if marketers are going to spend precious dollars executing<br />

online branding campaigns, they ought to be measuring the<br />

results—even if it costs a little extra in terms of time and effort.<br />

Today, the tendency among online marketers is to measure only<br />

search and give it most or all of the credit for online conversions.<br />

They do this because search results, which often represent the<br />

last ad clicked, are relatively easy to measure. But a wealth of data<br />

suggests marketers should be applying much more rigorous<br />

measurement analytics and integrating search and display results<br />

to get the complete story on their campaigns.<br />

Another factor is frequency. We all know that multiple messages<br />

do a better a job convincing consumers to buy a product than a<br />

single message. By exposing a given consumer to multiple display<br />

messages, in addition to the search text ad they get after a search<br />

inquiry, marketers are likely to improve conversion rates.<br />

Numerous quantitative studies prove that when display ads are<br />

combined with search, marketers can expect a significant<br />

increase in sales conversions, whether those take place online or<br />

offline. (See Data Spotlight section of report.)<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 20


Drill Down: What Are the Problems?<br />

“The challenge is that people are applying<br />

direct metrics in many cases to what is<br />

inherently a branding campaign. We need to<br />

continue to evolve the brand metrics in order<br />

to make sure we are using the right metrics<br />

to measure what the campaign objectives<br />

are. But to simply use direct metrics to<br />

measure brand campaign performance is<br />

never going to be successful.” —Pam Horan,<br />

president, <strong>Online</strong> Publishers Association, in an interview<br />

with eMarketer,April 27, 2009<br />

An Addiction to Clicks<br />

Clicks represent the low-hanging fruit of measurement—and that is<br />

why marketers tend to seek them out with a vengeance. But clicks<br />

do not even begin to capture the full value of online display ads.<br />

According to comScore, two-thirds of Internet users never click on<br />

display ads over the course of a month; moreover, only 16% of<br />

Internet users account for 80% of all clicks. That helps explains<br />

why the average click-through rate for display ads has plummeted<br />

over the years to a mere 0.1%. (Note that online video ads can still<br />

elicit click-through rates in the 1% to 4% range, but that is likely to<br />

taper off over time.)<br />

“The majority of marketers are not actually<br />

using the Web for brand advertising. They’re<br />

using it for direct response and promotion.”<br />

—Jim Spanfeller, president and CEO, Forbes.com, treasurer<br />

of the OPA and chairman emeritus of the IAB, in an<br />

interview with eMarketer,April 2009<br />

A January 2009 study commissioned by iProspect and conducted<br />

by Forrester Consulting shows that when Internet users were<br />

exposed to a promotional ad, less than one-third (31%) of them<br />

clicked on the ad itself; however, a plurality did take some other<br />

form of action:<br />

■ 27% searched for the product, brand or company using a<br />

search engine.<br />

■ 21% typed the Web address directly into their browser and<br />

navigated to the advertiser’s site.<br />

■ 9% investigated the product, brand or company through<br />

social media.<br />

Another 37% of respondents in the iProspect study claimed to be<br />

completely nonresponsive to “any such ads.”<br />

® <strong>Online</strong><br />

“If I don’t have a display campaign to support<br />

my paid search campaign, I’m basically<br />

giving the traffic away to my competitors.”<br />

—Robert Murray, CEO, iProspect,“Search Engine<br />

Marketing and <strong>Online</strong> Display Advertising Integration<br />

Study,” May 2009<br />

Overall, the iProspect study concluded that Internet users were<br />

more likely to engage with or make a purchase from brands with<br />

which they were already familiar, and online brand ads are one<br />

way to get there.<br />

Additional comScore research, conducted with Starcom USA,<br />

reveals no correlation between display ad clicks and basic brand<br />

metrics. In other words, if you look only at clicks, you’re<br />

considering only a tiny fraction of the economic value of an online<br />

advertising campaign. Study after study has shown that online<br />

display ads generate awareness and interest—even if those ads<br />

never get clicked.<br />

Why have clicks become the default standard for online brand<br />

measurement? Very simply, because they are so easy to measure.<br />

Jim Meskauskas, vice present/director of online media at<br />

Omnicom-owned ICON International, put it this way in an e-mail to<br />

eMarketer: “Every client is a branding client, until they get their<br />

first tracking report. Then they turn into direct marketers.”<br />

Or, as Kathryn Koegel, former DoubleClick researcher and a<br />

principal at media research consulting company Primary Impact,<br />

wrote in her May 2009 “The State of Digital Display” white paper:<br />

“We have built a parallel universe that does online little service to<br />

its power for marketing and placed too much responsibility on a<br />

click on a small graphic image, rather than the fundamentals of<br />

media planning and creative.”<br />

If there was one point on which all the professionals eMarketer<br />

interviewed for this report could unanimously agree, it was that if<br />

your goal is to build brands, clicks are the wrong way to go.<br />

“Because of our direct response heritage [in<br />

the online advertising industry], we’ve<br />

toiled under the tyranny of the click for too<br />

long.” —Randall Rothenberg, CEO, Interactive<br />

Advertising Bureau, as quoted in Advertising Age,<br />

March 30, 2009<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 21


Drill Down: What Are the Problems?<br />

The Scourge of Clicks<br />

If there are any lingering doubts about counting clicks, talk to Gian<br />

Fulgoni, chairman of comScore.<br />

In an interview with eMarketer, Mr. Fulgoni gave a clear and<br />

impassioned argument for moving beyond the click-through as a<br />

metric for online branding success. The problem arose, he said,<br />

when the Internet was first evolving as an advertising medium.<br />

The technology community at the time had “a very short-term<br />

view of how advertising works that was direct-response-oriented,<br />

not branding-oriented,” said Mr. Fulgoni.<br />

Because the click-through rate was so easy to measure, it got the<br />

industry into a direct response groove, which has in turn led to a<br />

serious undervaluing of branding online.<br />

“Let’s just accept that the click is not telling the whole [branding]<br />

story,” said Mr. Fulgoni. “We don’t hold traditional media to that<br />

same level of accountability. We don’t say you need to<br />

immediately pick up a phone and call somebody if you see a TV ad<br />

or if you’re listening to a radio ad or read something in a magazine.<br />

Why should the Internet be measured by this immediate response<br />

metric called the ‘click’?”<br />

Mr. Fulgoni recently wrote a white paper entitled “How <strong>Online</strong><br />

Advertising Works: Whither the Click?” which culled data from<br />

more than 200 studies and was published in the June 15, 2009,<br />

issue of the Journal of Advertising Research. The white paper<br />

concluded that an ad impression on the Internet works just like an<br />

ad impression in traditional media.<br />

According to Mr. Fulgoni, people who are exposed to a display ad—<br />

whether or not they click on it—have “an increased likelihood of<br />

visiting the Website of the brand in the ad, an increased likelihood<br />

of conducting a trademark search query, an increased likelihood of<br />

buying online, an increased likelihood of buying offline.”<br />

“[The display ad] has a lasting effect,” concluded Mr. Fulgoni.<br />

“Cumulatively, impressions build up over time and create an<br />

image of a brand. Then when you go off and do a search, you’ve<br />

got the brand better established in your mind.”<br />

While direct response is attractive to marketers because of the<br />

immediate gratification of almost-instant results, they must take a<br />

longer view when measuring branding effects, which are<br />

cumulative in nature.<br />

Click-obsession leaves marketers with a very crude and<br />

inadequate accounting measure that ignores most of the potential<br />

value of an ad. They do not know if the ad created awareness in<br />

the mind of the consumer, if it served as a reminder to buy the<br />

product at a later time, if it created a more favorable impression of<br />

the brand or reinforced loyalty to the brand. These attitudinal shifts<br />

simply do not happen in the instant of a click.<br />

® <strong>Online</strong><br />

Do Traditional <strong>Measurement</strong> Techniques Work for<br />

New Media?<br />

Having accepted the fact that clicks are not the answer, what about<br />

adopting the measurement techniques of traditional media?<br />

For years, those inside and outside the Internet ad industry have<br />

debated whether standard offline metrics, most notably GRPs<br />

(gross rating points), page impressions, reach and frequency,<br />

should be applied to the digital space.<br />

On one hand, many have said that the typical forms of<br />

measurement for traditional media do not translate well online.<br />

Nor do these metrics take into account the Internet’s unique<br />

interactive qualities that allow for two-way communications with<br />

consumers. In a word, they feel these forms of measurement are<br />

inadequate, or even irrelevant.<br />

Scott Knoll of Datran Media put it well in a recent iMedia<br />

Connection article: “The models that have been in use up to this<br />

point most resemble the proxy- and panel-based models of<br />

broadcast [television] and fail to represent the very thing that<br />

makes [the digital] industry different—its interactivity.”<br />

“It’s like going to a 3-D movie without the<br />

glasses. The Internet is more dimensional,<br />

but [for the most part] measurement criteria<br />

are the same as for a one-way medium. You<br />

don’t have the glasses so you’re not<br />

appreciating the dimensions.” —Matt Freeman,<br />

CEO, Betawave, as quoted in AdWeek, March 23, 2009<br />

Others argue that the power and possibilities of social media<br />

programs that allow for deep consumer engagement are completely<br />

ignored by traditional reach and frequency measurements.<br />

But don’t write off traditional media measurements and metrics<br />

just yet. There is a growing movement to support the application<br />

of tried-and-true GRPs to Internet ad planning and measurement,<br />

and this may well be a key to opening up the floodgates for more<br />

media dollars and advertiser interest.<br />

The key here is making online comparable to other media. “On the<br />

one hand, you’ve got incredible [measurement] granularity on the<br />

Web and a lot more insight into your brand metrics,” said Jim<br />

Spanfeller, president and CEO of Forbes.com, in an interview with<br />

eMarketer. “On the other hand, you really can’t compare that in<br />

any way, shape or form to your offline spend.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 22


Drill Down: What Are the Problems?<br />

Integration Is Hard When Data Is Locked in Silos<br />

In eMarketer’s interviews with professionals who are experts in<br />

the field of building models and processes for online brand<br />

measurement, it was clear that unlocking data silos is a critical<br />

step toward connecting the dots of media measurement. As<br />

Razorfish’s Jeff Lanctot told eMarketer, “For all the talk about the<br />

integration of traditional and digital media, they’re still bought in<br />

isolation much more than they’re bought in integrated packages.”<br />

“The single biggest issue advertisers are<br />

dealing with is how to use online properly in<br />

combination with other marketing<br />

activities. To get there, we need data<br />

integration and that’s the hard part.”<br />

—Bob Barocci, president,Advertising Research<br />

Foundation, in an interview with eMarketer,April 2009<br />

In an interview with eMarketer, Cary Tilds of Mindshare-Team<br />

Detroit said,“The current approach to planning media is what I<br />

would call the buckets-of-money approach.You have a TV bucket, a<br />

digital bucket, a search bucket, you might have an emerging [media]<br />

bucket.You have buckets of money.The unspoken controversy is<br />

about switching money from one bucket to another.”<br />

Ms. Tilds added, “But the buckets of money approach has nothing<br />

to do with how people consume media. A good media planner<br />

needs to figure out how to allocate money against the consumer<br />

journey—and that is a very complex problem. You have to identify<br />

all the knowns and unknowns in the long string of mathematical<br />

equations that we need in order to move from buckets of money<br />

to consumer-centric planning.”<br />

Further proof that data silos are a problem comes from<br />

quantitative surveys. According to a November 2008 study by<br />

JupiterResearch and Verse Group, 78% of US marketers agreed<br />

that internal silos act as the biggest barrier to integrating<br />

marketing. A related concern was “managing our brand across<br />

multiple platforms.”<br />

® <strong>Online</strong><br />

Attitudes of US Marketers Toward Marketing During<br />

the Economic Crisis, November 2008 (% of<br />

respondents who somewhat or strongly agree)<br />

Due to the suffering economy, marketing efforts are under<br />

greater scrutiny than ever before<br />

Internal silos are the biggest barrier to integrating marketing<br />

with customer experiences<br />

78%<br />

Note: n=101<br />

Source: JupiterResearch and Verse Group, "A Shift in Marketing," provided<br />

to eMarketer, December 7, 2008<br />

100379 www.eMarketer.com<br />

100379<br />

A more recent study, conducted in March 2009 by TNS Media<br />

Intelligence and sponsored by rich media provider Eyeblaster,<br />

found that while 67% of senior marketers are now running crosschannel<br />

campaigns, a scant 12% are integrating performance data<br />

across channels.<br />

When it comes to integrating digital and traditional media, too<br />

many marketers feel as though they are operating in the dark. Two<br />

separate surveys bear this out.<br />

In the study by Heidrick & Struggles of 111 US senior marketers, a<br />

paltry 15% of respondents claimed satisfaction with their<br />

optimization of the marketing mix.<br />

Another study, jointly conducted by the 4A’s and the ANA, found<br />

that only 7% of US marketers said they were “very satisfied” with<br />

their progress toward integrating online and traditional media.<br />

Note: n=122 client-side marketers (members of ANA)<br />

Source: Association of National Advertisers (ANA), 4A's and Bellwether<br />

Leadership Research & Development, "Integrating Traditional and Digital<br />

Media," provided to eMarketer, April 23, 2009<br />

103373 www.eMarketer.com<br />

103373<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 23<br />

89%<br />

Managing our brand across multiple platforms is a big challenge<br />

for my organization<br />

71%<br />

Satisfaction Level of US Marketers with Their<br />

Company's Progress in Integrating Traditional and<br />

Digital Media, Q1 2009 (% of respondents)<br />

Very satisfied 7%<br />

Somewhat satisfied 52%<br />

Neutral 10%<br />

Somewhat dissatisfied 23%<br />

Very dissatisfied 8%


Drill Down: What Are the Problems?<br />

Among the obstacles to integrating traditional and online media,<br />

according to the joint 4A’s/ANA study, were the lack of metrics<br />

and an insufficient understanding of digital media among<br />

senior management.<br />

Challenges of Integrating Traditional and <strong>Online</strong><br />

Media According to US Marketers, Q1 2009 (average<br />

ranking*)<br />

Having metrics to properly allocate the mix of traditional and<br />

digital media<br />

4.25<br />

Key people at company lack understanding of digital media<br />

103375<br />

The top frustration among agency executives, on the other hand,<br />

was that their clients do not fully understand how consumers use<br />

digital media.<br />

The study also identified challenges in measuring marketing ROI.<br />

On a scale from 1 to 5 (where 5 represents “a major problem”), the<br />

top challenges were data scattered across the organization (3.2),<br />

difficulty allocating enough resources to do the work (3.2) and<br />

inconsistent data formats (3.1).<br />

In an interview with eMarketer, Michael Mendenhall, senior vice<br />

president and chief marketing officer of Hewlett-Packard, had<br />

much to say about the problems and solutions for data silos.<br />

“Many marketers have disparate databases that don’t speak to<br />

each other, so they don’t have a 360-degree view of a customer….<br />

As you think about Fortune 500 companies that are selling across<br />

a portfolio and selling brand experiences, it becomes very hard to<br />

sell based on a portfolio approach without appropriate analytics.”<br />

® <strong>Online</strong><br />

3.95<br />

Reluctance to move funds from "tried and true" practices of the<br />

past<br />

3.89<br />

Internal organizational silos impede a focused enterprisewide<br />

approach<br />

3.74<br />

It is difficult to get multiple agencies to collaborate effectively<br />

on integration<br />

3.41<br />

Note: n=122 client-side marketers (members of ANA); *on a scale of 0-5<br />

where 0="no problem at all" and 5= "a major problem"<br />

Source: Association of National Advertisers (ANA), 4A's and Bellwether<br />

Leadership Research & Development, "Integrating Traditional and Digital<br />

Media," provided to eMarketer, April 23, 2009<br />

103375 www.eMarketer.com<br />

He added, “The challenge for marketers is to begin to build<br />

technological capabilities that allow you to see the complete<br />

digital footprint a given customer leaves when they engage with<br />

your brand. You need to be able to understand that behaviorally<br />

and/or contextually and address that consumer in a relevant<br />

way…. Where most marketers struggle is they do not have the<br />

information technology capability and/or management to do that.<br />

You need a sophisticated CRM platform that allows you to identify<br />

somebody coming through search or display, and gets them to opt<br />

in and [allows you to] start to manage them…. Marketers need the<br />

ability to pull strategic information out of the digital footprints that<br />

consumers are leaving.”<br />

In an interview with eMarketer, Martin Nisenholtz, senior vice<br />

president for digital operations of The New York Times Co.,<br />

provided a publisher’s perspective on the online/offline data<br />

integration problem. “The thing that I continue to hear over and<br />

over again from people is, ‘Gee, I wish I had a way to tie my online<br />

brand measures to my offline brand measures so that I could<br />

standardize,’” he said. “If I’m spending X amount of money on<br />

television and Y amount on the Web, wouldn’t it be great if I could<br />

look at one set of metrics and determine whether the offline plus<br />

the online were more powerful together, whether the online on its<br />

own has efficacy and whether the offline without the online is<br />

much weaker or not.”<br />

<strong>Online</strong> Silos<br />

Of course, data silos also exist within the interactive platform.<br />

According to an iMedia Connection article by Scott Knoll, a vice<br />

president at Datran Media, “The problem is not the existence of<br />

the data. The problem resides in separate measurements for<br />

search, display, email, video, and mobile, creating…‘data smog.’”<br />

Kathryn Koegel, in her May 2009 white paper about the state of<br />

online display ads, identifies intra-Internet silos as a major<br />

obstacle to online advertising efficiency and success. “The silo-ing<br />

of media into online vs. offline, direct vs. branding, search vs.<br />

display, behavioral vs. contextual, undercuts the creation of media<br />

plans that address actual consumer purchase processes in the<br />

most efficient manner,” she wrote.<br />

Too Much Information, Too Much Complexity<br />

Another major obstacle to online brand measurement is the sheer<br />

tonnage of data to be extracted, filtered and integrated—as well<br />

as the mind-numbing complexity that data creates.<br />

“The problem with online is we have too<br />

much data, actually.” —Jon Gibs, vice presidentmedia<br />

analytics, Nielsen <strong>Online</strong>, in an interview with<br />

eMarketer,April 17, 2009<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 24


Drill Down: What Are the Problems?<br />

While the Internet offers an abundance of possible metrics, that<br />

very same plenty creates complexity and confusion. It is relatively<br />

simple and straightforward when the objective is direct response.<br />

The desired behavior is not only easy to measure, it is often nearinstant.<br />

The consumer sees the direct response ad, follows<br />

through with the call to action, and the marketer can quickly and<br />

easily measure the results.<br />

“Every day that I read about a new<br />

technology…I get worried…. The scary thing<br />

is how complex [digital advertising] can be.”<br />

—Mark Addicks, senior vice president and chief marketing<br />

officer, General Mills, in an interview with eMarketer,<br />

May 4, 2009<br />

When branding is the objective, though, the whole measurement<br />

process is much more complex. First, the intended result—a<br />

change in feeling, perception or attitude—is harder to measure.<br />

Second, the impact of brand-building occurs over a period of time,<br />

often weeks, months or even years. Third, there are far more dots<br />

that need to be connected.<br />

“<strong>Brand</strong>ing is a longer-term proposition. It’s<br />

not about recalling a specific ad you saw 5<br />

seconds ago. It’s about whether people feel<br />

better about a brand or not.” —Young-Bean<br />

Song, senior director of analytics and Atlas Institute,<br />

Microsoft Advertising, in an interview with eMarketer,<br />

April 16, 2009<br />

This brand measurement complexity problem is not unique to the<br />

online space, though the Internet adds another layer or two of<br />

complexity with its interactive properties.<br />

But it is essential to integrate online data with data from other<br />

media, because branding campaigns are clearly most successful<br />

when message exposures come from multiple media—a mixture<br />

of television spots, a magazine ad, targeted banner and online<br />

video ads, an outdoor billboard, an e-mail promotion and so forth.<br />

“How can you possibly isolate the effect of<br />

any particular piece of communication? All<br />

of the problems that exist in measuring<br />

advertising and marketing efficacy exist in<br />

every environment—offline and online.”<br />

—Amy Fuller, group executive, worldwide consumer<br />

marketing/global products & solutions, MasterCard<br />

Worldwide, in an interview with eMarketer,April 28, 2009<br />

® <strong>Online</strong><br />

Additional complexity comes from the fact that research and<br />

measurement firms have widely differing approaches and<br />

methodologies, resulting in wildly varied results. As Mr. Lanctot of<br />

Razorfish noted, “For a brand marketer, when there’s such a<br />

disparity in what would appear to be the most basic of metrics, it<br />

plants a seed of doubt about the reliability of the data sets or the<br />

measurement program as a whole.”<br />

Current <strong>Measurement</strong> Models Have Limitations<br />

None of the prevailing techniques for measuring online branding<br />

impact today are without flaws.<br />

“Every type of measurement method, be<br />

it online media research, TV media<br />

research…has some level of error<br />

associated with it. There’s [no] magic<br />

bullet out there.” —Jon Gibs, vice president, media<br />

analytics, Nielsen <strong>Online</strong>, in an interview with eMarketer,<br />

April 17, 2009<br />

Site Intercept/<strong>Brand</strong> Impact Studies<br />

Although widely popular with advertisers, the use of site<br />

intercept/brand impact ad effectiveness studies, such as those<br />

conducted by Dynamic Logic or InsightExpress, is expensive when<br />

multiple studies are run and do not tell the whole branding story.<br />

Relying on the control versus test group approach, they work well for<br />

measuring the brand impact of a specific ad or campaign, but lack<br />

scale and do not take into account the longer-term effects of brand<br />

advertising unless they are run repeatedly over multiple campaigns.<br />

In addition, the heavy use of such surveys has led to consumer<br />

survey fatigue, where the same individuals are polled over and<br />

over. This can result in respondents who are not representative of<br />

the population being measured. Some, too, question the intercept<br />

method itself, since interrupting people with surveys while they<br />

are surfing can lead to somewhat artificial results.<br />

Mr. Hecht of VivaKi, in an interview with eMarketer, pointed out<br />

some of the pitfalls of these intercept measurement techniques.<br />

When asked what the single biggest problem is with online brand<br />

measurement today, Mr. Hecht replied: “It’s the problem of doing<br />

either custom one-off research which doesn’t scale, or doing<br />

studies focused on individual campaigns which don’t give you the<br />

whole story. It’s really hard to go out there and create a panel of<br />

size, or create a technique to do surveys that are not interruptive<br />

and that are useful. I’m not seeing a lot of innovation in terms of a<br />

company stepping into that void to provide the kind of research<br />

and tools needed.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 25


Drill Down: What Are the Problems?<br />

Mr. Hecht added,“The market’s at the pressure point, in a good way,<br />

and it’s going to force innovation and solutions to come forward.”<br />

Another problem with the intercept survey method is that it is not<br />

very good at measuring multiple forms of online ad messages. Joe<br />

Laszlo, director of research at the IAB, said, “One thing…that’s<br />

lacking is a way to assess the effectiveness of your campaign if it<br />

runs across a broad swath of the Internet. For example, if it runs<br />

across 15 different sites and in conjunction with a search engine<br />

campaign, plus some social media.”<br />

Panel <strong>Measurement</strong> Systems<br />

The alternative to brand intercept studies is panel measurement<br />

systems, such as those deployed by comScore and Nielsen. While<br />

this technique has the ability to measure actual surfing behavior, it<br />

has its own limitations. Panels are best for measuring Website<br />

traffic and are less effective for measuring ad campaigns that may<br />

run across dozens or hundreds of sites. They also tend to miss or<br />

undercount smaller, long-tail sites.<br />

In addition, there are the long-standing concerns about<br />

conflicting data:<br />

■ The individual panel measurement firms often show widely<br />

differing numbers, such as for site traffic reach or audience size.<br />

■ The numbers obtained from site-server logs are often<br />

contradicted by any given panel measurement firm, causing<br />

frustration and confusion.<br />

<strong>Measurement</strong> of Social and Video Are Even<br />

Further Behind<br />

While the widespread use of social and video sites by consumers<br />

evokes excitement (and sometimes a little fear) among<br />

advertisers, the measurement of advertising in these<br />

environments is vastly underdeveloped. Most advertisers are still<br />

trying to understand the nature of this consumer activity and how<br />

it might translate into appropriate advertising messages, let alone<br />

how to measure campaigns in these environments.<br />

® <strong>Online</strong><br />

Social Media<br />

In a study by the Marketing Executives Networking Group (MENG)<br />

of 126 US marketing executives, more than one-third of<br />

respondents admitted they did not even measure social media<br />

activities. One-half claimed to measure raw traffic and one-third<br />

measured clicks, both of which represent crude metrics, even by<br />

Internet standards.<br />

Ways that US Marketing Executives Measure the<br />

Effectiveness of Social Media Marketing Efforts,<br />

October 2008 (% of respondents)<br />

Incremental visits or unique visitors to Website<br />

Note: n=126<br />

Source: Marketing Executives Networking Group (MENG), "Social Media in<br />

Marketing" as cited in press release, November 6, 2008<br />

099526 www.eMarketer.com<br />

099526<br />

A full 59% of respondents said they never or hardly ever measured<br />

the ROI of social media marketing efforts. Only a little over 12% did<br />

so all or most of the time.<br />

The primary reason so few measure social campaigns is that it is<br />

difficult—59% of marketers in a separate Aberdeen Group study<br />

said social media was either “somewhat difficult” (39%) or “very<br />

difficult” (20%) to measure. Note that the respondents here were<br />

self-identified “best-in-class” companies. The survey also found<br />

that only 18% of marketers link activities on social media sites<br />

back to revenues or other financial metrics.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 26<br />

Clicks<br />

Conversion to leads/revenues<br />

Page rank (e.g., Google)<br />

25.4%<br />

33.3%<br />

31.7%<br />

Buzz generated (as measured by BuzzMetrics or other<br />

measurement service)<br />

22.2%<br />

Reputation metrics<br />

18.3%<br />

Ranking on social media metrics sites (e.g., Technorati)<br />

14.3%<br />

We don't measure social media activities<br />

34.9%<br />

50.0%


Drill Down: What Are the Problems?<br />

<strong>Online</strong> Video <strong>Measurement</strong>: Promising, but Still<br />

Early Days<br />

Like social media, the online video advertising market is booming<br />

with promise, but somewhat lagging in dollars.That is partly due to<br />

a laundry list of measurement issues.A central issue, though, is the<br />

tendency to focus on short-term, direct-response-type metrics that<br />

ignore the primary branding-oriented benefits of video.<br />

“The instinctual reaction to try and show the sales impact of video<br />

campaigns is misguided,” said Mr. Song of Microsoft Advertising.<br />

“We have studies that show that video, photo-sharing, weather<br />

and social media placements look horrible in the online ROI<br />

equation because they’re upper-funnel. People don’t see ads on<br />

Facebook and then go buy something. Reach, frequency and<br />

GRPs…need to be there upfront.”<br />

However, the lack of transparency for video advertising metrics is<br />

only one of several problems confronting the format, according to<br />

2008 research from MarketingSherpa.<br />

Worst Problems with Video Advertising According to<br />

US Marketers, October-November 2008 (scale of 1-5*)<br />

Clutter 4.1<br />

Ad-skipping (DVR, TiVo) 3.7<br />

Media pricing/cost 3.5<br />

Lack of transparency in metrics 3.4<br />

Lack of quality media inventory 2.9<br />

Difficulty finding mass target 2.8<br />

Difficulty in buying media 2.3<br />

Note: n=1,083; *1=no problem and 5=big problem<br />

Source: MarketingSherpa, "Video Marketing Survey," November 2008 as<br />

cited in "Marketing With Video Report: <strong>Online</strong>, TV & Mobile," December<br />

2008<br />

103550 www.eMarketer.com<br />

103550<br />

® <strong>Online</strong><br />

Data Spotlight: How <strong>Online</strong> <strong>Brand</strong><br />

Advertising Can Influence Every<br />

Step Along the Consumer Purchase<br />

Funnel<br />

The Internet can have an impact at every phase<br />

along the consumer purchase cycle, from<br />

creating initial awareness and interest for a<br />

product, service or brand, to stimulating<br />

purchases, to delivering post-sales support and<br />

reinforcing brand loyalty. But what about the<br />

measurement of this impact?<br />

As a crude indicator of how marketers generally value online<br />

media, 36% of advertisers in a survey by Morgan Stanley said the<br />

Internet was “effective”—considerably higher than for any other<br />

media. It was not clear from the survey, though, whether<br />

marketers were thinking primarily of search, display ads, their own<br />

company Websites or other online tactics.<br />

Effective Advertising Media According to US<br />

Advertisers, 2009 (% of respondents)<br />

Internet 36%<br />

Newspapers/magazines 29%<br />

Direct mail 26%<br />

TV 22%<br />

Radio 14%<br />

Billboards 5%<br />

Yellow pages 4%<br />

Other 21%<br />

Note: n=181<br />

Source: Morgan Stanley, "2nd Annual Local Ad Survey & '09 US Advertising<br />

Outlook," provided to eMarketer, March 31, 2009<br />

102964 www.eMarketer.com<br />

102964<br />

As validation, a more recent ANA study released in May 2009<br />

found that while television was rated the most important media<br />

channel in terms of effectiveness (64% of respondents), the<br />

Internet was a close second (61%).<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 27


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

How Display Ads Impact <strong>Brand</strong> Metrics<br />

Dynamic Logic, InsightExpress and other survey firms have<br />

conducted countless studies—covering all types of product<br />

categories and services—to measure the brand impact of online<br />

display and video advertising.<br />

The latest aggregated data from Dynamic Logic, based on 2,380<br />

campaigns measured through Q4 2008, found that those<br />

respondents exposed to online advertising registered slightly<br />

higher increases in key brand metrics, on average, than those who<br />

were not exposed (that is, the control group). The delta lift<br />

(expressed as a point difference) for exposure to online ads was<br />

2.4 for aided brand awareness and 2.6 for message association.<br />

<strong>Online</strong> Advertising's Effect on <strong>Brand</strong> Metrics in the<br />

US, Q4 2008* (% of respondents impacted)<br />

Aided <strong>Online</strong> ad Message <strong>Brand</strong> Purchase<br />

brand<br />

awareness<br />

awareness association favorability intent<br />

Control 72% 25% 17% 42% 39%<br />

Exposed 74% 30% 19% 44% 40%<br />

Delta** 2.4 4.9 2.6 1.6 1.3<br />

Note: n=2,380 campaigns and 3,889,602 respondents; *includes three<br />

years through Q4 2008; **delta defined as point difference in exposed vs.<br />

control groups<br />

Source: Dynamic Logic provided to eMarketer, April 27, 2009<br />

103522<br />

103522<br />

www.eMarketer.com<br />

For additional information on the above chart, see<br />

Endnote 103522 in the Endnotes section.<br />

But the above figures are based on across-the-board averages.<br />

Importantly, the creativity and contextual relevance of ad<br />

campaigns can heavily influence the results. When Dynamic Logic<br />

dissected the data, top-performing campaigns boosted key brand<br />

metrics by significantly higher levels than did the lowestperforming<br />

campaigns.<br />

For example, aided brand awareness increased 8.9% for topperforming<br />

campaigns, versus only a 2.4% increase on average<br />

and a drop of 2.3% for the lowest-performing campaigns. Similarly,<br />

top campaigns pushed up purchase intent by 7.1%, versus only<br />

1.3% on average.<br />

® <strong>Online</strong><br />

<strong>Online</strong> Advertising's Effect on <strong>Brand</strong> Metrics in the<br />

US, by Level of Campaign Performance*, Q4 2008** (%<br />

of respondents impacted)<br />

Aided <strong>Online</strong> ad Message <strong>Brand</strong> Purchase<br />

brand<br />

awareness<br />

awareness association favorability intent<br />

Top 8.9% 14.0% 9.5% 7.5% 7.1%<br />

Average 2.4% 4.9% 2.6% 1.6% 1.3%<br />

Bottom -2.3% -1.6% -2.0% -3.5% -4.0%<br />

Note: n=2,380 campaigns and 3,889,602 respondents; *best performers<br />

are the average of the top 20% of campaigns per metric and worst<br />

performers are the bottom 20% of campaigns; **includes three years<br />

through Q4 2008<br />

Source: Dynamic Logic provided to eMarketer, April 27, 2009<br />

103523<br />

103523<br />

www.eMarketer.com<br />

For additional information on the above chart, see<br />

Endnote 103523 in the Endnotes section.<br />

Dynamic Logic also compared campaigns for different categories<br />

of products and, again, found highly differentiated results. For<br />

example, on the measure of boosting purchase intent,<br />

entertainment, consumer packaged goods, home improvement<br />

and telecommunications categories performed much better than<br />

average, while apparel, restaurant and retail did relatively poorly.<br />

When it comes to measuring the efficacy of display ads on<br />

branding metrics, context appears to matter. According to a study<br />

by the <strong>Online</strong> Publishers Association (OPA) and Dynamic Logic,<br />

display ads within branded content sites (for example,<br />

NewYorkTimes.com, Weather.com) do a better job of boosting<br />

brand metrics than when those same ads are placed within more<br />

generic portals or ad networks.<br />

Interactive* Advertising's Effect on <strong>Brand</strong> Metrics in<br />

the US, by Site Category, January 2009 vs. August 2008<br />

(% change in delta**)<br />

Aided <strong>Online</strong> Message <strong>Brand</strong> Purchase<br />

brand ad assocfavor- intent<br />

awareawareiationabilitynessness <strong>Brand</strong>ed content sites<br />

(OPA members)<br />

63% 7% 8% 40% 0%<br />

MarketNorms® database -11% -8% -10% -18% -13%<br />

Portals<br />

-9% -3% -6% -11% 0%<br />

Ad networks<br />

-21% -7% 0% -18% -40%<br />

Note: *involves the audience without having them click through or leave<br />

the Webpage; **delta defined as point difference in exposed vs. control<br />

groups<br />

Source: <strong>Online</strong> Publishers Association (OPA) and Dynamic Logic, "Improving<br />

Ad Performance <strong>Online</strong>: The Impact of Advertising on Quality Content<br />

Sites," January 8, 2009<br />

102827<br />

102827<br />

www.eMarketer.com<br />

For additional information on the above chart, see<br />

Endnote 102827 in the Endnotes section.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 28


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

Multiple studies prove, too, that online video ads can have an<br />

outsize effect on standard brand metrics such as awareness,<br />

message association and purchase intent.<br />

Ways in Which US Marketers See <strong>Online</strong> Video<br />

Enhancing Customer Engagement, 2008 (% of<br />

respondents)<br />

Increasing brand awareness 71.4%<br />

Driving lead generation 47.2%<br />

Enhancing loyalty/retention programs 44.7%<br />

Converting customers 41.6%<br />

Improving service and support 39.8%<br />

Source: PermissionTV, "<strong>Online</strong> Video Survey Results," December 17, 2008<br />

100581 www.eMarketer.com<br />

100581<br />

Integrating Search and Display Ad <strong>Measurement</strong>s<br />

Intuition (and plenty of data) tells us that search works best when<br />

it is complemented by online branding efforts that create<br />

awareness, interest and desire among prospects.<br />

First, as consumers ourselves, we realize that often the very idea of<br />

searching for a particular product or brand comes from having seen<br />

advertising. Second, when we are looking to possibly purchase<br />

something and conduct a search inquiry, there is a natural tendency<br />

to click on those search links that represent brand names we know<br />

and trust, and to disregard unknown brands.<br />

Most agree that online display ads can act as a stimulus for driving<br />

searches for brands or products—which of course is a key step<br />

leading to purchase.<br />

“There’s an image, a perception, a value that [consumers] have at<br />

the point that they conduct a search. You know, it’s not like<br />

consumers are sitting there with no impression of a brand, until<br />

they conduct a search,” said Gian Fulgoni of comScore.<br />

“If you see a display ad, there’s an incremental impact, but it’s not<br />

as great as the incremental impact of a search ad,” he added. “If<br />

you combine the two, you get synergy and the combination is<br />

greater than the sum.”<br />

In an older yet still relevant study by the Microsoft-owned Atlas<br />

Institute, 11 online advertisers were evaluated by measuring both<br />

their display ads and sponsored search clicks. In the study, Internet<br />

users exposed to both search and display ads converted at a much<br />

higher rate than did those exposed to search or display alone.<br />

® <strong>Online</strong><br />

Conversion Rate of US Internet Users Exposed to<br />

Search Plus Display Advertising vs. Either Search Only<br />

or Display Advertising Only, 2006 (lift vs. display click<br />

only)<br />

Display click only* 1.0x<br />

Search click--no display impressions 3.3x<br />

Search click plus display impressions 4.0x<br />

Note: *baseline<br />

Source: Atlas DMT, "Where Can You Find Your Customer? Try the<br />

Intersection of Search and Display," July 21, 2006<br />

099215 www.eMarketer.com<br />

099215<br />

Similarly, a Specific Media survey found that online display ads can<br />

boost search activity for many product categories, especially for<br />

travel and tourism, health, personal finance, automotive, news and<br />

media, and property and real estate; the average lift was 155%.<br />

Impact of <strong>Online</strong> Display Ad Campaigns* on Search<br />

Activity** in the US, by Advertiser Category,<br />

September 2007-August 2008 (% lift)<br />

Travel and tourism 274%<br />

Health 260%<br />

Personal finance 206%<br />

Automotive 144%<br />

News and media 144%<br />

Property and real estate 125%<br />

Retail 69%<br />

CPG 22%<br />

Average lift 155%<br />

Note: *among Specific Media clients; **ad-exposed consumers who<br />

searched on brand and/or segment-related terms vs. unexposed<br />

consumers<br />

Source: Specific Media as cited in press release, December 3, 2008<br />

100100 www.eMarketer.com<br />

100100<br />

In a January 27, 2009, interview with eMarketer, Beverly Thorne,<br />

senior vice president of marketing at Century 21 Real Estate LLC,<br />

explained the search/display connection for her brand as follows:<br />

“Our own empirical results showed us that our online investments<br />

were performing substantively better at generating leads. From<br />

December 2007 to December 2008, we improved the efficiency of<br />

our lead generation by reducing our cost per lead over 60%. At the<br />

same time, we multiplied our number of leads by over 235%.”<br />

The mastery of Web analytics plays a key role in tying display ads<br />

to search results. According to analysis by Steve Kerho, VP of<br />

analytics at Organic, display ads can increase a search ad’s clickthrough<br />

rate by 25% to 30%. Until recently, though, this influence<br />

of display ads has typically not been measured by advertisers.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 29


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

® <strong>Online</strong><br />

Spotlight: Alltel<br />

When mobile carrier Alltel measured the sales<br />

conversion impact of search clicks, display ads and<br />

the synergy of the two, the “search click + display<br />

ad” combination resulted in a 56% lift versus a<br />

search click alone.<br />

Source: Atlas Institute, Microsoft<br />

How Display Ads Drive Site Traffic<br />

Advertisers often have the goal of driving qualified traffic to their<br />

corporate or brand Websites. Based on numerous independent<br />

studies, display ads can help get this job done.<br />

For example, comScore evaluated 139 studies linking display ads<br />

to site visitation levels and found that the average lift in the<br />

number of visitors to the advertiser’s site—comparing visitation<br />

levels of exposed and nonexposed groups—was 65% during the<br />

first week following the first exposure to an ad. Additional, though<br />

somewhat muted, lifts were seen in the following three weeks.<br />

Advertiser Site Visitation Among US Internet Users<br />

Exposed to <strong>Online</strong> Display Ads, 2008<br />

Control Test Lift<br />

Week following first ad exposure 2.1% 3.5% 65.0%<br />

Weeks 1-2 after first exposure 3.1% 4.8% 53.8%<br />

Weeks 1-3 after first exposure 3.9% 5.8% 49.1%<br />

Week 1-4 after first exposure<br />

Note: home, work and university locations<br />

4.5% 6.6% 45.7%<br />

Source: comScore <strong>Brand</strong> Metrix, "How <strong>Online</strong> Advertising Works: Whither<br />

the Click," December 5, 2008<br />

104534<br />

104534<br />

www.eMarketer.com<br />

In another industry-specific example, a joint study by comScore<br />

and analytics firm Crossix Solutions, in partnership with Yahoo!,<br />

evaluated the ability of display ads to drive consumers to<br />

pharmaceutical advertisers’ Websites. After seeing online display<br />

ads, consumers were more than three times as likely to visit<br />

pharma advertisers’ Websites and twice as likely to fill a new<br />

prescription. In addition, exposed consumers were 92% more<br />

likely to search for trademark names and phrases compared with<br />

those who did not see the display ads.<br />

The study was conducted among a base of 73 million consumers<br />

and concluded that the display ad campaigns provided an<br />

estimated return on media investment of 3X. Not a bad ROI.<br />

How Display Ads Impact <strong>Online</strong> Sales<br />

For most categories of products and services, consumers rely<br />

heavily on the Internet to do research, or “window shop,” prior to<br />

making the final purchase. Given this proclivity, marketers have an<br />

obvious opportunity to influence the awareness, preferences or<br />

even behaviors of these online shoppers—at the precise time<br />

when they are in exploration or consideration mode. In the 90 days<br />

leading up to a sale, consumers see an average of 18 ads for a<br />

product, according to Microsoft’s Atlas Institute.<br />

eMarketer estimates that 152 million people, or 86% of Internet<br />

users ages 14 and older, shop or browse online for possible<br />

purchases that may or may not occur online. Of course, the<br />

tendency to shop on the Web varies by category. A worldwide<br />

survey from Universal McCann indicates that<br />

holidays/destinations, consumer electronics and travel are the<br />

most-shopped categories online.<br />

Products and Services that Active* Adult Internet<br />

Users Worldwide Have Researched <strong>Online</strong>, 2008 (% of<br />

respondents)<br />

Holidays/destinations 61.9%<br />

Consumer electronics (e.g., TVs, PCs) 58.4%<br />

Travel (e.g., flights, trains) 56.9%<br />

Portable devices (e.g., MP3 players, mobile phones) 56.6%<br />

Mobile phone services 56.0%<br />

Computer software 52.3%<br />

Films 49.8%<br />

Music 48.8%<br />

Books 46.2%<br />

Cars/automobiles 43.7%<br />

Home appliances (e.g., refrigerators, freezers) 39.1%<br />

Game consoles/gaming 36.9%<br />

Fashion (e.g., clothing, shoes) 35.0%<br />

Financial services (e.g., credit cards, banking, insurance) 31.1%<br />

Property/real estate 29.7%<br />

Cosmetics 27.5%<br />

Personal care (e.g., medicines, contact lenses, etc.) 24.1%<br />

Groceries (food) 18.7%<br />

Utilities (e.g., gas, electricity, etc.) 16.1%<br />

Groceries (nonfood e.g., cleaning products) 15.5%<br />

Alcoholic beverages 12.3%<br />

Nonalcoholic beverages 9.1%<br />

Note: n=17,000 ages 16-54; *daily or every other day<br />

Source: Universal McCann, "When Did We Start Trusting Strangers?,"<br />

September 2008<br />

098382 www.eMarketer.com<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 30<br />

098382


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

A study by Penn, Schoen & Berland Associates found that US<br />

online shoppers would research high-consideration products and<br />

services, such as cars, computers, new doctors, vacations and<br />

mobile phone plans, prior to making an actual purchase.<br />

Products/Services that US <strong>Online</strong> Shoppers Would<br />

Research Significantly Before Buying, October 2008 (%<br />

of respondents)<br />

Car 85%<br />

New computer 83%<br />

New doctor 83%<br />

Vacation 75%<br />

Mobile phone plan 72%<br />

Vacuum cleaner 58%<br />

Apartment 57%<br />

Exercise plan 47%<br />

Movie 43%<br />

Children's toys 31%<br />

Shampoo 22%<br />

102845<br />

But less expensive products are increasingly researched online as<br />

well. According to Jeffrey Grau, eMarketer senior analyst,<br />

consumers today access the Internet to look up even relatively<br />

low-interest products such as shampoo. Said Mr. Grau,<br />

“Consumers might go to a shampoo manufacturer’s site to learn<br />

whether a product contains paraben preservatives, or is tested on<br />

animals or made from animal ingredients. They also might visit a<br />

retailer’s site to read customer reviews to hear from others<br />

whether a shampoo is really unscented or causes scalp irritation.<br />

Consumers also go to coupon sites to get additional savings on a<br />

shampoo purchase.”<br />

Display/branding ads can also influence consumers to the point of<br />

purchasing products online, though rarely is the impact in the form<br />

of an immediate click.<br />

In several studies, comScore evaluated the combined influences<br />

of search and display ads on consumer online buying behavior.<br />

Search, given its obvious indication of purchase intent (that is,<br />

those who take the time to search for a product are usually inmarket),<br />

has a stronger influence on consumer buying behavior<br />

than display ads alone. But when both search and display ads are<br />

combined, the overall impact is significantly greater than that of<br />

either search or display ads individually.<br />

® <strong>Online</strong><br />

Book to read for pleasure 32%<br />

Note: n=300 ages 18+<br />

Source: Penn, Schoen & Berland Associates, Inc. (PSB), "LinkShare<br />

TrendWatch Research: New Info Shoppers, Recession Buyers, and the 2009<br />

<strong>Online</strong> Shopping Outlook," January 30, 2009<br />

102845 www.eMarketer.com<br />

For example, while display ads alone provided a 42% lift (test<br />

versus control) on the percentage of consumers making a retail<br />

purchase online, and search generated a 121% lift, the combination<br />

of search and display ads together produced a 173% lift. Further,<br />

the one-two punch of search and display resulted in significantly<br />

higher dollar spending per thousand consumers exposed.<br />

<strong>Online</strong> Retail Sales* from US Internet Users Exposed<br />

to <strong>Online</strong> Display and/or Search Ads, 2008<br />

Control Test Lift<br />

Display only $994 $1,263 27%<br />

Search only $1,548 $2,724 76%<br />

Search and display $2,723 $6,107 124%<br />

Note: home, work and university locations; *monthly sales per thousand<br />

exposed consumers ranging from two weeks to three months after the<br />

initial exposure<br />

Source: comScore <strong>Brand</strong> Metrix, "How <strong>Online</strong> Advertising Works: Whither<br />

the Click," December 5, 2008<br />

104453 www.eMarketer.com<br />

Percent of US Internet Users Who Make an <strong>Online</strong><br />

Purchase on the Advertiser Site After Being Exposed<br />

to <strong>Online</strong> Display and/or Search Ads, 2008<br />

Control Test Lift<br />

Display only 1.0% 1.5% 42%<br />

Search only 1.1% 2.4% 121%<br />

Search and display 1.9% 5.1% 173%<br />

Note: home, work and university locations; retail sites only<br />

Source: comScore <strong>Brand</strong> Metrix, "How <strong>Online</strong> Advertising Works: Whither<br />

the Click," December 5, 2008<br />

104456<br />

104453 104456<br />

www.eMarketer.com<br />

How Display Ads Influence Offline Purchases<br />

“The current lack of visibility into offline<br />

purchasing [as a result of online display<br />

advertising] consistently leads to dramatic<br />

underestimation of display advertising ROI.”<br />

—comScore white paper,“How <strong>Online</strong> Advertising Works:<br />

Whither the Click?” December 2008<br />

Unfortunately, while online advertising can have a substantial<br />

impact on offline sales, most marketers fail to measure this<br />

important connection.<br />

According to McKinsey’s June 2008 digital advertising survey of<br />

340 senior marketing executives worldwide, only 30% said they<br />

even considered the offline impact of online marketing. However,<br />

marketers that did look at those metrics were more satisfied with<br />

their online efforts and said they planned to increase spending on<br />

them by 38%.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 31


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

To be fair, integrated measurement systems are often difficult and<br />

pricey—but in the long term, for marketers that measure search<br />

and display advertising together, the results can be particularly<br />

encouraging. A September 2008 comScore study found that by<br />

using search and display ads in combination, marketers can<br />

significantly boost the dollar value of offline retail sales versus<br />

using either search or display only.<br />

Incremental Impact on Offline Sales per Thousand US<br />

Consumers Exposed to Search and Display Ads vs.<br />

Search Only and Display Only, 2007-2008 (% lift)<br />

Search and display 119%<br />

Search only 82%<br />

Note: n=137 tests from comScore Ad Effectiveness Database conducted in<br />

2007 and 2008<br />

Source: comScore, "Maximizing the ROI from Internet Advertising: Lessons<br />

Learned," September 8, 2008, provided to eMarketer, October 2008<br />

099198 www.eMarketer.com<br />

099198<br />

As evidenced by a separate survey conducted by comScore<br />

Networks and Yahoo!, the search/display combination of ad<br />

messages increased in-store purchases significantly. In the study,<br />

those online shoppers who had seen both ad types were 43%<br />

more likely to be converted to in-store buyers. In comparison,<br />

consumers who had seen only search ads were just 26% more<br />

likely to be converted, while exposure to only display ads lifted<br />

conversion by just 6%.<br />

Source: comScore Networks Inc. and Yahoo!, "From Clicks to Bricks: The<br />

Impact of <strong>Online</strong> Pre-Shopping on Consumer Shopping Behavior" as cited<br />

in press release, July 30, 2007<br />

086196 www.eMarketer.com<br />

086196<br />

As a rule, the impact of online research/shopping behavior is<br />

greater on in-store sales than Web-based sales. According to<br />

comScore, for retailers with online and offline sales channels,<br />

approximately 68% of the impact of display ads was found in the<br />

offline channel.<br />

® <strong>Online</strong><br />

Display only 16%<br />

Effectiveness of <strong>Online</strong> Search and Display<br />

Advertising Campaigns in Converting US <strong>Online</strong><br />

Researchers to In-Store Buyers, 2007 (% change in<br />

conversions)<br />

Consumers who saw a joint display and search campaign and<br />

subsequently made an in-store purchase<br />

43%<br />

Consumers who saw a search campaign and subsequently made<br />

an in-store purchase<br />

26%<br />

Consumers who saw a display campaign and subsequently made<br />

an in-store purchase<br />

6%<br />

In the aggregate, Forrester estimates that in 2009,Web-influenced<br />

or cross-channel store sales will reach $758.8 million, dwarfing the<br />

sales transacted directly online. In other words, the Web’s influence<br />

on sales is much greater than its direct e-commerce impact.<br />

US Retail Sales, by Channel, 2007-2012 (millions)<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 32<br />

2007<br />

2008<br />

2009<br />

2010<br />

2011<br />

2012<br />

098510<br />

$174,466<br />

$204,018<br />

$235,389<br />

$267,791<br />

$301,039<br />

$334,742<br />

$503,734<br />

$629,228<br />

$758,792<br />

$886,232<br />

$1,007,609<br />

$1,120,709<br />

$1,873,673<br />

$1,793,624<br />

$1,711,101<br />

$1,633,282<br />

$1,564,494<br />

$1,498,978<br />

Offline sales Cross-channel sales <strong>Online</strong> sales<br />

Source: Forrester Research, "The New Rules of eCommerce," September<br />

17, 2008<br />

098510 www.eMarketer.com<br />

Social Influence<br />

Although there is only limited evidence at this point, a few studies<br />

suggest that advertising in social media can affect offline sales, too.<br />

A partnership research study involving comScore, dunnhumby<br />

and MySpace was conducted to track offline purchases of Internet<br />

users exposed to ads for a personal-care brand on MySpace. Of<br />

the nearly 80 million people exposed to the campaign, fewer than<br />

1% visited an advertiser page on MySpace, though about one-half<br />

who did also visited the personal-care advertiser’s site.<br />

Despite this small percentage of visitors, the campaign met its ROI<br />

objective.According to Advertising Age (April 13, 2009),“[The<br />

campaign] produced $1.28 million in offline sales, as measured by<br />

dunnhumby, which compared purchases among shoppers not<br />

exposed to the campaign with purchases among those who were.”<br />

This resulted in an impressive 28% return on marketing investment.


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

In sum, marketers who fail to assess the cross-channel impact of<br />

their online branding efforts—particularly in this economic<br />

climate—are significantly underestimating their effectiveness.<br />

Leading marketers are developing tracking mechanisms that allow<br />

for comparisons between offline and digital marketing. And they<br />

do not have to be complicated or expensive. For example, in order<br />

to track sales across channels, retailers can use online coupons<br />

that are redeemable on Websites and in stores.<br />

“When you start to link in-store purchase behavior with online<br />

advertising, it’s incredibly valuable,” said Mr. Lanctot of Razorfish.<br />

“[It] can help marketers understand how online marketing drives<br />

offline behavior.”<br />

Three Factors for <strong>Online</strong> <strong>Brand</strong>ing Success<br />

You can have all the precise numbers, measurement tools and<br />

metrics at your disposal—and completely bomb with your<br />

online campaign if your creative messaging is substandard or<br />

badly targeted.<br />

1. Don’t Ignore the Creative<br />

Under the pressure of marketing accountability, and in our zeal to<br />

quantitatively measure everything that moves, marketers must<br />

not abandon creativity as an essential variable in online branding<br />

success. <strong>Measurement</strong> tends to look backward like a rearview<br />

mirror, while creativity seeks to shine the headlights on a future<br />

attitude or action—on the part of the consumer marketers are<br />

trying to reach and influence.<br />

As Jon Gibs from Nielsen <strong>Online</strong> said, “Creative is about 70% to<br />

80% of the effectiveness of advertising.”<br />

“If your creative isn’t good, then you aren’t<br />

going to create engagement.” —Jeff Marshall,<br />

managing director, Pixel, a digital creative agency owned<br />

by Publicis Groupe, as cited in The Wall Street Journal,<br />

May 6, 2009<br />

® <strong>Online</strong><br />

Ken Mallon of Dynamic Logic, whose company has evaluated the<br />

brand impact of thousands of online campaigns, was very vocal<br />

about the need for good creative: “By far the biggest driver of<br />

brand impact success is the creative. The best ads that we see in<br />

terms of performance online tend to be ones that almost have a<br />

magazine feel. They look nice; people think about things like<br />

having the right human form in there, the right product shot.”<br />

Effective creative can be planned, according to Mr. Mallon.“We have<br />

a set of 10 standard best practices.The clients that follow those do<br />

really well. But most people violate one or more of those routinely,<br />

and that’s why online advertising just isn’t that great on average.”<br />

Some in the industry go so far as to say that the creative form of<br />

online advertising is not only critical, it transcends the<br />

measurement issue entirely. In eMarketer’s interview with online<br />

publishing pioneer Martin Nisenholtz, it was clear that finding<br />

ways to make online ads more emotionally evocative is<br />

paramount to branding success.<br />

“I don’t think the measurement issue is holding back brand dollars<br />

online. The bigger concern is that the Web still hasn’t found a way<br />

to create the kind of emotional involvement that television creates<br />

for people,” said Mr. Nisenholtz. “I can pretty much promise you<br />

that television didn’t evolve as a dominant brand-building medium<br />

because somebody started with a measurement. It evolved<br />

because marketers said to themselves, ‘This is an incredibly<br />

powerful way for us to communicate and transmit the emotive<br />

powers of branding.’ And then they figured out how to measure it.<br />

In other words, measures are the tail, not the dog, and the dog<br />

hasn’t yet been invented online. So we have to invent the dog.”<br />

Also speaking from the online publisher’s side is Pam Horan,<br />

president of the OPA, who feels there has not been enough focus<br />

on the creative process and making online ads that engage with<br />

consumers. “Creative is a big issue,” she said in an interview with<br />

eMarketer. “At the OPA, we’re trying to spur a creative<br />

renaissance, so to speak, to show the opportunity for online<br />

advertising to deliver a rich experience, tell a unique story and a<br />

brand-oriented message.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 33


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

2. Size Matters<br />

When it comes to banners and other forms of display ads, larger,<br />

more intrusive ads tend to perform better than smaller ones, on<br />

average. Dynamic Logic and InsightExpress studies have proved<br />

this correlation.<br />

The size and shape of display banner ads can also affect<br />

engagement results, at least as measured by time spent.<br />

According to a time-exposure study conducted by Lotame<br />

Solutions, the large 300x250 rectangle caused Internet users to<br />

spend significantly more time with this unit versus more narrow<br />

(and creatively limiting) ads, specifically 728x90 and 160x600<br />

banner ads. Consumers spent over 13 seconds with the rectangle<br />

(300x250), more than double the next-best-performing ad unit, the<br />

728x90. The large size and shape of these rectangles, which end<br />

up smack in the middle of valued content, means they are difficult<br />

to ignore.<br />

Time Spent with Banner Ads Among US Internet<br />

Users, by Ad Size, January-February 2009<br />

Total<br />

Total Average time<br />

exposure time impressions<br />

per<br />

(seconds)<br />

(millions) impression<br />

(seconds)<br />

300x250 867,700,956 66,466,701 13.05<br />

728x90 161,590,364 29,925,805 5.40<br />

160x600 97,539,062 51,938,746 1.88<br />

Source: Lotame Solutions, Inc., "Time Exposure by Banner Size," provided<br />

to eMarketer, April 8, 2009<br />

103793<br />

103793<br />

www.eMarketer.com<br />

Taking such data into account, Web media publisher MSNBC.com,<br />

for one, is launching a new Website design that features larger-size<br />

ads, as well as exclusive sponsorship placements, to attract<br />

budget-conscious advertisers.<br />

Furthermore, as one in a series of solutions to the creative<br />

challenge, the OPA recently released three new innovative online<br />

ad units designed to create brand experiences—within the ads.<br />

“The idea is to deliver the brand experience right on the pages of<br />

these rich content sites [e.g., OPA publisher sites] so people won’t<br />

have to click away,” said Ms. Horan.“These units are much larger….<br />

The marketer’s share of voice increases because the consumer is<br />

being exposed to a bigger ad for a longer period of time.”<br />

® <strong>Online</strong><br />

3. Focus on Targeting and Relevance<br />

The Internet, partly because it is so fragmented, allows marketers<br />

much better opportunities to finely target their messages to the<br />

right individuals, and often at the right time and place. The “spray<br />

and pray” approach may have worked in the past for traditional<br />

media campaigns, but it most certainly does not work on the Web,<br />

where consumers almost expect ad messages to be more<br />

relevant. We have the targeting technology, but we need to use it.<br />

“Don’t count the people you reach, reach the<br />

people that count.” —David Ogilvy, world-renowned<br />

advertising executive<br />

Studies from Dynamic Logic and InsightExpress, for example,<br />

show that contextual placements, aligning brand messages that<br />

are in sync with the surrounding editorial content, tend to be more<br />

effective for highly targeted categories, such as autos, pet care,<br />

baby and pharmaceutical products. Many other studies support<br />

the ability of contextual placements to boost results. In that<br />

regard, online is no different than other media.<br />

Another targeting technology experiencing renewed interest<br />

among advertisers is behavioral targeting.With behavioral targeting,<br />

ads are served up to Internet users based on the past surfing<br />

behavior of the individual consumer. Conceptually, this means that<br />

advertisers are buying audience, not Webpages or impressions.<br />

This is good for the advertiser, since it makes for a more efficient<br />

media buy. It’s also good for the publishers, since they can sell<br />

advertising space that might have gone unsold. And finally, it is<br />

potentially good even for consumers, since they are more likely to<br />

see ads that are relevant to their interests.<br />

Because behavioral targeting has the potential to efficiently get<br />

the “right” ads in front of presumed interested parties, much like<br />

search ads, many in the industry see a resurgence coming in this<br />

type of technique.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 34


Data Spotlight: How <strong>Online</strong> <strong>Brand</strong> Advertising Can Influence<br />

Every Step Along the Consumer Purchase Funnel<br />

“These improvements [behaviorally-targeted<br />

banner ads], driven primarily by better<br />

targeting, will also likely boost aggregate<br />

spending, as advertisers moving online begin<br />

to get the same tracking and metrics that<br />

have made search advertising so appealing.”<br />

—Ned May, director/lead analyst, Outsell, in BtoB magazine,<br />

April 6, 2009<br />

Forrester Research currently estimates that nearly one-quarter<br />

(24%) of online campaigns rely on some form of behavioral<br />

targeting data. This was substantiated by a February–March 2009<br />

survey by Forbes.com, which reported that 31% of senior-level<br />

marketers were using behavioral targeting. Finally, Datran Media<br />

surveyed marketers and found that 65% either already used or<br />

planned to use behavioral targeting in the future.<br />

Of course, behavioral targeting, which relies on cookie technology,<br />

has two serious obstacles:<br />

■ Between 30% and 50% of Internet users regularly delete their<br />

cookies, rendering behavioral targeting virtually useless for<br />

these consumers.<br />

■ Mounting privacy concerns could end up derailing the use of<br />

behavioral targeting, or at least seriously limiting its impact.<br />

® <strong>Online</strong><br />

Working Toward the Solutions for<br />

<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Big Picture: Five Broad Approaches<br />

After conducting 24 phone interviews, five video interviews,<br />

several round-robin Q&As and an online survey among industry<br />

movers-and-shakers—not to mention poring over reams of data<br />

from studies and surveys—eMarketer sees the following five<br />

broad approaches as key to moving forward on the online brand<br />

measurement front:<br />

1. The first critical step for marketers when developing any<br />

measurement programs must be to identify their brand’s top<br />

marketing objectives.<br />

2. Keep in mind that there is no single measurement system that<br />

does it all, nor will there be a silver bullet in the future.<br />

“I don’t think the white knight is going to be<br />

riding up on his little pony. It’s going to be<br />

the industry working together.” —Pam Horan,<br />

president, <strong>Online</strong> Publishers Association, in an interview<br />

with eMarketer,April 27, 2009<br />

3. A hybrid of traditional and digital approaches will be necessary,<br />

which will require a dramatic reinvention of measurement as<br />

we know it.<br />

4. The Internet must be rolled up within existing media mix<br />

models. There is a clarion call for the traditional metrics of<br />

reach, frequency and GRPs to be integrated with the Web—but<br />

this will only be the starting point, not the end game.<br />

“There needs to be clear and broad industry<br />

education so everybody understands<br />

what’s happening.” —Bryan Wiener, CEO, 360i, in an<br />

interview with eMarketer,April 2009<br />

5. Connecting all the dots requires collaboration. Key industry<br />

stakeholders will need to work closely together to create<br />

seamless databases that talk to each other. One top priority:<br />

continuously refining attribution models that assign<br />

mathematical weights to the various digital footprints captured<br />

along the consumer buying cycle.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 35


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

This report represents only a starting point toward<br />

igniting a broader, more collaborative coalition that<br />

is dedicated to solving the online brand<br />

measurement challenge. As such, it will be made far<br />

stronger by the input, feedback and ideas from you,<br />

the reader. Please take the time to share your<br />

comments and thoughts. Collectively, we can begin<br />

to connect the dots.<br />

It All Starts with Marketing Objectives<br />

You can measure many things online, but if metrics do not align<br />

with business objectives, you will not go very far (and you’ll likely<br />

drive yourself crazy).<br />

In a survey by Spencer Stuart of senior-level marketers, the best<br />

way to measure CMO effectiveness—beyond even profitability and<br />

revenue measurement—was to make sure that “marketing is<br />

aligned with the business strategy,” as cited by 35% of respondents.<br />

Best Ways to Measure CMO Effectiveness According<br />

to US Senior Marketing Leaders, 2008 (% of<br />

respondents)<br />

Marketing is aligned with the business strategy 35%<br />

Profitability 29%<br />

Revenue 25%<br />

Note: n=200+<br />

Source: Spencer Stuart, "Isolating the Marketing DNA: The Essential Skills<br />

and Qualities of the New CMO," November 2008<br />

102334 www.eMarketer.com<br />

102334<br />

“The most important factor is to have clearly<br />

defined goals from the beginning. What are<br />

you hoping to achieve? Focus on five or six<br />

key metrics that serve as your guiding<br />

measurement.” —Chris Thornton, chief marketing<br />

officer, Definition 6, as quoted in Adweek, May 18, 2009<br />

As Mr. Gibs of Nielsen <strong>Online</strong> stated at the Digital Publishing and<br />

Advertising conference in New York on May 12, 2009, “Counting is<br />

not the same thing as accountability.” When developing online<br />

campaigns, one of the hardest challenges is to identify what<br />

specific actions or behaviors you really want to elicit from your<br />

consumer target, along with any emotional or qualitative levers<br />

that enable them.<br />

® <strong>Online</strong><br />

Perceived value of marketing 7%<br />

<strong>Brand</strong> awareness 5%<br />

Supporting the “primacy of objectives” movement is Ms. Horan of<br />

the OPA, who told eMarketer in an interview: “It all comes back to<br />

what the campaign goals are. If a marketer is looking for<br />

engagement, they have to decide what engagement is. Is it the<br />

number of views, is it a behavior post-view, is it a registration?...It<br />

may be that they’re looking at engagement as hover time…. Or it<br />

might be whether a person clicked on something within the ad.”<br />

<strong>Brand</strong> advertisers are all trying to figure out how online<br />

engagement can impact their brands, but the starting point is<br />

pinpointing the brand’s core marketing objective.<br />

This was the case with Amy Fuller, group executive, worldwide<br />

consumer marketing/global products & solutions of MasterCard<br />

Worldwide. In an interview with eMarketer, Ms. Fuller spoke of<br />

engagement: “It really starts there—with asking, ‘What is brand<br />

health?’ Is it brand opinion, is it willingness to recommend<br />

something, is it willingness to pay a premium, is it being<br />

mentioned in social networks, is it someone agreeing to receive<br />

a MasterCard?”<br />

She added: “Then, and only then, can we start figuring out, ‘OK,<br />

if we’re happy with how we’re measuring engagement—which<br />

means looking at qualified actions, not simply clicks—how do<br />

we capture what effect that has on those eventual brand<br />

health metrics?’”<br />

Mr. Mendenhall of Hewlett-Packard put forward a similar<br />

perspective in an interview with eMarketer. What brand marketers<br />

are looking for, he said, is “very dependent on the strategy and<br />

objectives for the specific product launch, service or promotion,<br />

and those vary. It really depends on what I’m trying to accomplish.<br />

Am I trying to achieve brand immersion, brand preference or<br />

brand experience? Am I trying to generate a lead and then<br />

manage the lead through to a sale? Am I trying to drive ecommerce<br />

or build a lifetime relationship with a customer?”<br />

Mr. Mendenhall also noted: “Then you think about how many<br />

people come through your front door. How many of those people<br />

stay? How long do they stay? Where do they go? What do they do?<br />

If you have a good CRM capability that pulls those analytics, and<br />

you look at the behavioral and contextual footprints, it all becomes<br />

incredibly valuable to a marketer. These kinds of analytics become<br />

a competitive differentiator.”<br />

The Need for Uniform Standards<br />

In television media, advertisers have simple, defined and relatively<br />

limited choices for creative executions, such as the standard 15or<br />

30-second spot. In radio, the standard is typically 30 or 60<br />

seconds. Magazines offer full pages, half pages and a discrete<br />

assortment of other choices. The measurement of offline media<br />

has become somewhat standardized as well.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 36


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

The Nielsen ratings numbers for television, for example, are so<br />

standardized they operate as the buying and selling currency for<br />

the $70 billion TV business. Of course, few will admit that the<br />

actual measurement process itself is less than perfect.<br />

“People in broadcast sort of chuckle at the<br />

Tower of Babel that we in digital provide by<br />

way of data, as they all implicitly agree to<br />

live and die on a ‘standard’ that everyone<br />

knows is a proxy for a proxy, with branding<br />

standards that are, well, imprecise.” —Mark<br />

Naples, managing partner,WIT Strategy, in an e-mail to<br />

eMarketer, June 2, 2009<br />

But on the Internet, there is a seemingly unlimited number of ad<br />

format options available as well as endless choices for the<br />

measurement of online ad campaigns.<br />

Consequently, there is now a tension in the industry between<br />

locking down standards—including agreed-upon definitions and<br />

common measurement platforms—and allowing for innovation,<br />

flexibility and creativity. Certainly, most can agree that standards for<br />

definitions are an absolute must. For example, stakeholders should<br />

all have the same thing in mind when they talk of impressions.<br />

This was emphasized by Jim Meskauskas of ICON International in<br />

an e-mail to eMarketer: “We should certainly start somewhere by<br />

defining how we articulate the ‘facts’ of our discipline (reach,<br />

frequency, impressions, engagement).”<br />

However, Mr. Meskauskas provided an important proviso: “But if<br />

what we are talking about pertains to the amorphous (e.g.,<br />

engagement), then how we talk about it will also be amorphous.”<br />

So what about standardization of measurement platforms? Many<br />

worry that a single measurement technology or company will<br />

enjoy a monopoly, similar to the Nielsen model for television<br />

buying. Others are concerned that a premature, one-size-fits-all<br />

measurement model will stifle innovation and creativity in the<br />

industry. The latter concern, according to some, is unwarranted.<br />

Said David Smith, CEO of interactive agency Mediasmith, in a June<br />

5, 2009, interview with eMarketer, “Yes, innovation is critical—but<br />

only after you’ve run all the numbers, and only as long as you stay<br />

within the guidelines.” In other words, the structure imposed by a<br />

uniform measurement process will actually provide freedom to<br />

innovate and endlessly test creative options.<br />

® <strong>Online</strong><br />

“[We need] industry standard measures<br />

everyone can agree on. Measures that go<br />

beyond just standard clicks and traffic<br />

measures.” —Yosi Heber, president, Oxford Hill<br />

Partners LLC, in response to an eMarketer poll fielded by<br />

InsightExpress,April 2009<br />

In the poll eMarketer organized for this report, 46% of respondents<br />

agreed with the following statement:<br />

“Single standards for ad metrics and online performance<br />

systems, set by a leading industry group such as the IAB,<br />

are the major step needed to boost the growth of brand<br />

advertising online.”<br />

Further, only 27% of respondents disagreed, leaving 27% on<br />

the fence.<br />

US Marketing Executives' Opinions on the Need for a<br />

Single Set of <strong>Online</strong> Advertising <strong>Measurement</strong><br />

Standards, April 2009 (% of respondents)<br />

Disagree<br />

16.2%<br />

Strongly<br />

disagree<br />

10.8%<br />

Neutral<br />

27.0%<br />

Strongly agree<br />

13.5%<br />

Note: n=37; numbers may not add up to 100% due to rounding<br />

Source: eMarketer, "<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong> Survey" conducted by<br />

InsightExpress, June 2009<br />

104495 www.eMarketer.com<br />

104495<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 37<br />

Agree<br />

32.4%


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

When asked to elaborate on why they agreed or disagreed,<br />

respondents were mixed in their opinions on the need for<br />

measurement standards. Some felt that the industry needs<br />

standards to succeed, while others believed they would be “nice<br />

to have,” but would not “make or break” the growth of brand<br />

advertising online:<br />

■ “There needs to be an industry-defined standard on which to<br />

base effectiveness instead of publishers, marketers and<br />

agencies setting their own baselines.”<br />

■ “The industry needs common ground to set benchmarks and<br />

manage multiple sources of data as a base for broader<br />

discussions about what drives marketing success online.”<br />

■ “Standards are useful, but the IAB has tried many times to<br />

impose them. Realistically, standards won’t be imposed—they’ll<br />

be adopted based on which standards are useful and provide<br />

valuable feedback to their users.”<br />

■ “The IAB is going to face big issues around this effort. In many ways<br />

the tent is simply too big for them to be effective in these efforts.”<br />

■ “It can certainly help the industry to have standards and best<br />

practices for ad metrics and online performance systems.<br />

However, this will have little effect on the growth of brand<br />

advertising online. Marketers will need to determine for<br />

themselves (in a variety of ways) the value of online for branding<br />

and the metrics associated for their brands. In all likelihood, this will<br />

need to play out in bigger scenarios such as market mix modeling.”<br />

The director of research from the IAB, Mr. Laszlo, supports some<br />

level of standardization, as he told eMarketer in an interview.“The<br />

market as a whole should start to narrow down the total number<br />

of metrics,” he explained. “There are so many different things to<br />

measure that it’s hard to say which metrics are the best to use.”<br />

Representing the publisher point of view is Ms. Horan of the OPA.<br />

“In the long run,” she noted in an interview with eMarketer, “would<br />

it be great for us to have a single standard to measure the brand<br />

impact of online advertising—something that’s interchangeable<br />

between all the media? Yes. I hope it happens in my lifetime.”<br />

Media agency executives, who are tasked with much of the<br />

hands-on work that goes into measurement, were similarly<br />

predisposed toward standards. Speaking passionately in favor of<br />

consistent standards for brand measurement was Cary Tilds of<br />

Mindshare-Team Detroit. “Consistently measuring tactics for<br />

digital advertising for their branding effect provides the marketer<br />

the most relevant information,” she said in an interview with<br />

eMarketer. “Random acts of measurement are OK, but they don’t<br />

provide a consistent approach. If you are consistent, you can<br />

improve and evolve.”<br />

® <strong>Online</strong><br />

Ms.Tilds added,“I want to focus on the creativity of the actual media<br />

deployment and not argue about audience composition or over<br />

how to measure something. I want to debate the next big idea.The<br />

industry needs consistent dialogue, agreement on standards of<br />

methodology and support from the IAB, the 4A’s and the ARF.”<br />

“[We need] enough standards to establish a<br />

strong foundation, but not so many that<br />

brands are constrained. [We need] more<br />

work on conversion attribution…and<br />

advances in social graph measurement and<br />

analytics.” —Jeff Lanctot, chief strategy officer,<br />

Razorfish, in an interview with eMarketer,April 28, 2009<br />

Before we jump to the conclusion, however, that measurement<br />

standards represent the panacea everyone is hoping for, Mr.<br />

Lanctot of Razorfish, who personally believes in the formation of<br />

standards, added this sobering perspective: “We tend to put too<br />

much weight on standards. There’s this view that once we have<br />

some better brand measurement standards in place, the dollars<br />

will flow. I think that’s overly optimistic.”<br />

Q&A: Should the industry create a standardized<br />

online brand measurement platform?<br />

Amy Fuller<br />

MasterCard Group Executive,Worldwide<br />

Consumer Marketing/Global Products & Solutions<br />

MasterCard Worldwide,<br />

financial services marketer<br />

“There really isn’t a standardized way of looking at brand health,<br />

online or offline. Rather than trying to standardize, why not develop<br />

a few different ways of looking at brand health?” Full Interview<br />

Curt Hecht<br />

President<br />

Publicis Groupe’s VivaKi Nerve Center<br />

(includes Digitas, Starcom MediaVest<br />

Group, ZenithOptimedia and Denuo)<br />

“I don’t think it would be a bad idea. It could be accomplished<br />

through a research consortium or through agency networks.<br />

VivaKi and The Pool is an example. (The Pool is a group of online<br />

video suppliers such as Hulu and CBS and marketers that include<br />

Allstate and Purina that are developing a replacement for the<br />

standard preroll video ad unit.) There is an opportunity to share<br />

insights and data with other companies. I think standards would<br />

help everybody in the industry.” Full Interview<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 38


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

“The market as a whole should start to narrow down the total<br />

number of metrics. There are so many different things to<br />

measure that it’s hard to say what the best metrics are. You run<br />

the risk of having so much data that you can’t draw the story out<br />

of it.” Full Interview<br />

“It’s not the industry that would create standards, it’s an independent<br />

research firm that would work with the IAB. It’s probably a couple of<br />

years off. Nielsen is the likely one to get that going.” Full Interview<br />

Integrate <strong>Online</strong> and Offline <strong>Measurement</strong> and Metrics<br />

Beyond developing uniform standards within the online ad<br />

measurement world, there is the larger issue of integrating<br />

measurements across online and offline media.<br />

In the previous section, we reviewed survey data from the 4A’s and<br />

ANA that showed clients and their agencies are not where they’d<br />

like to be in terms of integrating measurement data from their<br />

offline and online advertising efforts. In their related white paper,<br />

however, the 4A’s and ANA offered up some concrete advice for<br />

dealing with the integration issue, including these six tips:<br />

1. Educate yourself. Become as educated as possible on digital<br />

media; network with others who have paved the way by<br />

successfully incorporating digital into their campaigns.<br />

2. Set goals and objectives. Set clear goals and understand<br />

your business objectives upfront.<br />

3. Understand your consumer. Think about the consumers you<br />

are trying to reach, and understand where they go online and<br />

what they do there.<br />

4. Be willing to test and learn. Understand that early pilots and<br />

“failures” can lead to big wins later. Reserve at least a small<br />

portion of your budget for experimentation.<br />

5. Integrate your planning. Digital and traditional media must<br />

be planned together, not in silos. Do not regard digital as a<br />

separate “add-on.” Keep in mind that no media vehicle or<br />

marketing discipline succeeds on its own.<br />

6. Measure. Commit to metrics and analytics, and use them to make<br />

your business case.Agree upfront on the definition of success.<br />

® <strong>Online</strong><br />

Jeff Lanctot<br />

Chief Strategy Officer<br />

Razorfish,<br />

Microsoft Corp.-owned digital agency<br />

Wenda Harris Millard<br />

President<br />

Media Link LLC, brand consulting firm<br />

Immediate Past Chair–Interactive<br />

Advertising Bureau<br />

In an interview with eMarketer, ANA CEO Bob Liodice underscored<br />

the need for marketers to look at the whole media pie when<br />

assessing online brand measurement. Said Mr. Liodice, “Our<br />

concern is about brand measurement in total, online or offline. The<br />

vehicle or approach to brand measurement is far less relevant<br />

than what it is we are trying to accomplish.”<br />

He continued: “As we bundle and integrate marketing, rather than<br />

asking whether online, television, radio, print or outdoor<br />

advertising is working, we should ask, how the heck are all of<br />

these things working together? It’s not effective to look at digital in<br />

isolation from the rest of the marketing mix.”<br />

Many in the online ad industry, from all different vantage points,<br />

feel strongly that measurement success will only come if the<br />

Internet adopts the very same metrics used by traditional media.<br />

“The best thing would be to measure online<br />

branding the way we measure offline<br />

branding: awareness, reach, impact,<br />

recognition—coupled with response all the<br />

way to purchase.” —Jim Sterne, founder of the<br />

eMetrics Marketing Optimization Summit and chairman of<br />

the Web Analytics Association, in response to an<br />

eMarketer poll fielded by InsightExpress,April 2009<br />

Embrace Traditional Media Metrics<br />

Having established that standards for online measurement would<br />

be helpful and that there is a growing need to integrate online and<br />

offline metrics, this raises a serious question: Would it make sense<br />

for the Internet to adopt the standard media planning and buying<br />

metrics of the traditional world—namely reach, frequency and<br />

GRPs? There is a growing consensus in the industry that yes, it<br />

does make sense.<br />

“[We need] basic reach, frequency and GRP<br />

forecasts for planning and post-campaign<br />

analysis that have some semblance to<br />

reality, [so there is an] ability to reconcile.”<br />

—Young-Bean Song, senior director of analytics and the<br />

Atlas Institute for Microsoft Advertising, in an interview<br />

with eMarketer,April 16, 2009<br />

In the interviews eMarketer conducted with industry leaders for<br />

this report, a strong majority conceded that it is now time for the<br />

Internet to embrace the GRP, reach and frequency metrics long<br />

used by television, radio and print advertisers. But there were also<br />

a few dissenters.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 39


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

The resistance thus far to GRP adoption has been twofold. First,<br />

those pioneers who helped create the market for online<br />

advertising—envisioning its limitless possibilities for interaction and<br />

engagement—are loath to shackle it down with the old metrics of<br />

the past. Second, formulating and applying GRPs to the online space<br />

is just plain difficult.As David Smith of Mediasmith told eMarketer in<br />

an interview,“The [GRP models for online advertising] already exist,<br />

but most people just don’t understand the math.”<br />

But now the tide is turning and the pressure is on. GRPs are<br />

making their way online.<br />

“You will never see P&G and Unilever and<br />

those guys spend more than single digits<br />

[millions] online unless we give them reach,<br />

frequency and GRP numbers. Their business<br />

models are based on media mix models<br />

where those are the inputs and outputs.” —<br />

Young-Bean Song, senior director of analytics and the Atlas<br />

Institute for Microsoft Advertising, in an interview with<br />

eMarketer,April 16, 2009<br />

Without doubt, the strongest proponent of GRP adoption was Mr.<br />

Song of the Atlas Institute (part of Microsoft). A pioneer in the field<br />

of online measurement and analytics, Mr. Song argued that<br />

adopting GRPs is “fundamental” to the Internet’s growth as an<br />

advertising vehicle.<br />

“[In the branding world], we don’t have a perfect view of ROI,”<br />

he explained. “So we revert back to something that we can all<br />

latch onto, something that makes apples-to-apples<br />

comparisons—fundamental metrics around reach and<br />

frequency. So marketers ask, ‘Am I reaching my target audience<br />

and am I doing that cost-effectively?’”<br />

He added: “As soon as…we give advertisers the reach, frequency<br />

and GRP numbers they want, they’ll plug those into their<br />

regression and media mix models and they’re going to say, ‘Wow, I<br />

should be spending 12% of my budget online.’” (Note: The current<br />

industrywide allocation is just under 10%.)<br />

Mr. Song continued, “Ten years from now we’re still going to be<br />

buying media on a CPM basis. These foundational metrics aren’t<br />

obsolete and you can reconcile them on the back end with adserving<br />

data. It’s something both publishers and advertisers can<br />

look at and agree on together.”<br />

® <strong>Online</strong><br />

Many in the research field agree that GRPs should be adopted<br />

for online.<br />

“I think one would be crazy to not continue to use that [GRP]<br />

metric,” said Gian Fulgoni, chairman of comScore. “What it’s telling<br />

you is how many times you reached the person with an ad, and<br />

how many people you’ve reached. I mean, if you don’t have that, I<br />

don’t see how you can really understand the intricacies of your<br />

media plan or compare it across media…. That’s the way media is<br />

sold. We produce GRP measures directly analogous to TV today,<br />

directly analogous to print, to radio.”<br />

Or, as John Burbank, CEO of Nielsen <strong>Online</strong>, put it in an interview<br />

with eMarketer: “Advertisers have to say, ‘I don’t care how many<br />

impressions I buy, I need to reach 10 million women age 18 to 24.’”<br />

Mr. Hecht of VivaKi was also adamant that GRPs are necessary<br />

from an agency perspective. “Yes, I think reach is relevant,” he said<br />

in an interview with eMarketer. “The form in which you measure it<br />

isn’t as relevant. GRPs keep things simple. Going out and reaching<br />

a lot of people is relevant.”<br />

Representing the online publisher’s side, Jim Spanfeller of<br />

Forbes.com and Ms. Horan of the OPA agreed that GRPs are<br />

needed online.<br />

“In the offline world, GRPs are the metric,” said Mr. Spanfeller. “In<br />

the online world, most of the major online spenders have come up<br />

with their own methodology for online GRPs, but currently, there is<br />

no fully realized version of gross rating points for the Web. We<br />

should measure reach, we should measure frequency and the<br />

four basic brand metrics.”<br />

Ms. Horan noted, “Ultimately, I think [GRPs] is where we need to<br />

get to. We need a metric that will allow marketers to mix and<br />

match and to allocate dollars across whatever the platform is.”<br />

Marketers also seem to be on board. As one brand marketer<br />

expressed it in the eMarketer/InsightExpress poll: “We need to be<br />

able to model online along with other (traditional) media channels<br />

in a standardized fashion to create reach and frequency. Digital<br />

providers continue to resist this. We believe that until this is done<br />

there won’t be the kind of scale online providers are looking for.<br />

This does not replace the other valuable and distinct<br />

measurement options currently available; it simply provides the<br />

tools needed to plan at the brand level.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 40


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Dissenting Opinions on the GRP Issue<br />

Not everyone agrees with the GRP position. In an interview with<br />

eMarketer, senior marketer Ms. Fuller of MasterCard stated her<br />

reasons for taking the opposing view.<br />

“I’m not looking for the same metrics,” such as GRPs, Ms. Fuller<br />

explained. “We have different expectations…. We use digital<br />

media to tell more complicated stories and drive engagement.<br />

The expectation for offline media is to deliver reach and<br />

frequency. I think they operate differently; I’m not looking for<br />

identical metrics [online].”<br />

From the research side, Mr. Gibs of Nielsen felt the GRP had lost its<br />

relevance in the highly fragmented media world in which we live.<br />

“The GRP metric is like a 50-year-old metric,” he said. “It’s very<br />

well-designed for when there was a world of three TV networks.<br />

It’s less well-designed for a world where there are hundreds and<br />

hundreds of TV networks and millions and millions of Websites.”<br />

Instead of reverting back to traditional GRPs, Mr. Gibs argues that<br />

the industry should seek to build a new type of currency model for<br />

Web measurement, one based on quality of data and<br />

transparency: “Transparency means that the clients need to know<br />

exactly what goes into it [the model] so they can trust the<br />

numbers that are being used for the buying [process].”<br />

Another problem cited about GRPs is that they are too limiting. A<br />

marketer relying solely on reach and frequency would fail to<br />

capture the whole picture of exposure to online advertising,<br />

particularly the potentially rich information that comes from online<br />

searches, social sites, mobile activity or video streams. Speaking<br />

with eMarketer from the agency perspective, Mr. Lanctot of<br />

Razorfish indicated that traditional media mix models, including<br />

the reliance on GRPs, are falling apart.<br />

“Looking beyond measurement within a specific media channel, the<br />

media mix models begin to break when you include digital in the<br />

mix,” said Mr. Lanctot.“Consumer behavior online and on mobile<br />

devices is all over the place. Senior marketers are opening their<br />

eyes and saying,‘OK, it’s time to forget everything that I knew.’”<br />

He suggested that the solution lies with a hybrid approach, using<br />

both panels and server-side data. He anticipates that the<br />

aggregation and merging of different data sets will get us closer to<br />

the truth and increase the trust advertisers have in the data results.<br />

® <strong>Online</strong><br />

Also from the agency perspective,Yaakov Kimelfeld, vice president of<br />

digital research and analytics director at MediaVest USA, worried that<br />

GRP metrics overemphasize demographics at the expense of<br />

potentially more meaningful determinants such as attitudes and<br />

behavior. Mr. Kimelfeld wrote in an August 1, 2008, article in<br />

MediaPost,“Focusing on reach and frequency limits a digital<br />

campaign’s ability to serve ads based on specific audience<br />

characteristics other than demographics, such as previous purchases<br />

and online behavior. In the end, these narrower criteria may be more<br />

effective in predicting future purchase behavior than demographics.”<br />

Finally, in an interview with eMarketer, Jim Dravillas, senior partnerexecutive<br />

director of analytics at Neo@Ogilvy, posed a question for<br />

proponents of the GRP: “Why does the Internet have to model<br />

itself on traditional modes of measurement? The offline media has<br />

to adapt to the digital environment. My end goal is not the GRP<br />

itself, my end goal is the impact.”<br />

However, Mr. Dravillas conceded that traditional metrics do have<br />

a place at the table. “The GRP is still very helpful from a planning<br />

standpoint, but not as a success measure. I want to try to reach<br />

as many of my target audience as I can in the most effective<br />

way possible.”<br />

How to Make the GRP Work for <strong>Online</strong><br />

The GRP metric is basically a blunt measure for how many people<br />

your advertising reaches, and at what level of frequency.<br />

Mr. Song of the Atlas Institute said it best in his interview with<br />

eMarketer: “The problem with the online impression—which is the<br />

closest thing to a GRP right now—is that it doesn’t have a<br />

denominator. What I mean by that is, how many impressions did I<br />

deliver to the universe of women 18 to 45? That’s the<br />

denominator. The GRP is just the numerator. How many gross<br />

impressions did I deliver? [<strong>Online</strong>,] it’s hard to know what the<br />

denominator is. It’s hard to know how many of those impressions<br />

that you served actually went to women 18 to 45. This is an area<br />

where the TV and print folks actually have an advantage.”<br />

From a branding perspective, Mr. Song sees marketers knowing<br />

more about their audience in traditional media than they do<br />

online. “You actually know less in the online space with the same<br />

amount of data than you would in the offline space. You don’t<br />

know what the frequency is going to be. You don’t know what<br />

percentage of the target audience you’re going to reach. The only<br />

thing you know that’s in common is the number of impressions.”<br />

In his interview with eMarketer, Mr. Song went on to say that Atlas<br />

and other groups, working in collaboration, are figuring out ways<br />

to measure the elusive denominator—the total universe of the<br />

target population.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 41


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

“We’re not the only ones working on this. It’s also Google, Yahoo!,<br />

AOL and online networks that have large, registered user bases<br />

and ad-serving technology to track everything on a census level<br />

and all the gross impressions. They will combine data sets to<br />

provide traditional advertisers reach, frequency and GRPs. As far<br />

as I’m concerned, that’s the foundation,” he explained.<br />

Taking another tack on the GRP front is Ms. Tilds, senior vice<br />

president at WPP’s agency Mindshare-Team Detroit. Based on the<br />

notion that online and offline measurement platforms need to<br />

“talk” to each other, the agency has developed a new metric called<br />

the iGRP, or Internet gross rating point. This metric was built to<br />

allow for cross-platform measurement between television and<br />

online video buys. Said Ms. Tilds, “The iGRP’s purpose is to confirm<br />

how to go about determining audience reach and<br />

frequency…planning against audience composition.”<br />

She views the iGRP, currently only used for online video, as merely a<br />

starting point in a long evolution:“The GRP is still very relevant.<br />

However, we need to evolve the GRP/iGRP as we evolve the media<br />

delivery and accountability across multiple screens and channels.”<br />

Get Smart About Attribution Modeling<br />

Attribution modeling is all the rage in the marketing community.<br />

Essentially, it seeks to attribute different quantitative weights to<br />

the various consumer touchpoints in an advertising campaign,<br />

from banner ads and sponsorships to online video ads, brand<br />

Website interactions and search activity.<br />

As such, attribution modeling is essentially an offshoot of the<br />

media mix modeling that traditional advertisers have been doing<br />

for years. Media mix modeling helps advertisers determine which<br />

media inputs will have the most effective (and efficient) impact on<br />

sales. They rely heavily on databases, which must be synced up to<br />

provide a holistic view of results.<br />

But attribution models need to go beyond the limited data-capture<br />

capabilities of today’s media mix models and capitalize on the unique<br />

information provided by digital platforms, particularly data relating to<br />

intent.As Mr. Kimelfeld, analytics director at MediaVest USA,<br />

explained on a phone call with eMarketer, the Internet offers up digital<br />

footprints that can imply intent to act leading to purchase.<br />

In his February 1, 2009, article in MediaPost, Mr. Kimelfeld brought<br />

up the example of consumers looking to purchase a car. He wrote,<br />

“The Internet [opens] up a world of searching, price comparison,<br />

consumer reviews and other user resources that have generated<br />

hard data proving that consumers are actively considering the<br />

advertised model—long before they start showing up at the<br />

dealership. Captured on a daily or even hourly basis, these<br />

events…point to the next level of the campaign effects hierarchy,<br />

a more advanced one than branding: They indicate consumers’<br />

intent to act toward the purchase.”<br />

® <strong>Online</strong><br />

“Marketers need to understand not only what works<br />

retrospectively, but how they can use data proactively to make<br />

better decisions about the audiences they buy and the way they<br />

deliver messages,” said Konrad Feldman, CEO and co-founder of<br />

Quantcast, in an interview with eMarketer. “When you have a<br />

programmatic way of using that sort of insight across a broad<br />

range of media, you begin to break down barriers.”<br />

“In the case where search has to compete for<br />

a budget against other activities, it wins, as<br />

it generally delivers the most efficient<br />

returns. Only companies that do attribution<br />

modeling and look at media spends<br />

holistically can allocate budgets<br />

appropriately across search, display and<br />

other activities.” —Anonymous agency executive<br />

respondent from eMarketer/InsightExpress poll,April 2009<br />

The absolute level of ad spending behind interactive has typically<br />

been too small to meet the thresholds required in large and<br />

complex media mix models. As Mr. Fulgoni said, “I don’t think<br />

[media mix models] are sensitive enough to pick up the impact of<br />

online. As time goes by and Internet spending continues to grow,<br />

these models will become more relevant.”<br />

Another challenge with attribution models is the sheer<br />

complexity introduced by digital variables in an already complex<br />

modeling system.<br />

“When models begin to approach the<br />

complexity of the reality they’re trying to<br />

explain, they become just as difficult to<br />

interpret—and insight is lost.” —James B.<br />

Ramsey, renowned mathematician and economics<br />

professor at New York University; father of eMarketer CEO<br />

Geoff Ramsey<br />

As Mr. Kimelfeld of MediaVest put it, the biggest challenge with<br />

attribution models is devising methods for “attributing consumer<br />

intent manifestations to individual media platforms and campaigns.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 42


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Exploring Solutions<br />

The bottom line: Mastering how to build effective attribution<br />

models is going to come down to plain old hard work.<br />

“There’s a lot of heavy lifting to be done in terms of making the<br />

appropriate attributions and setting up rules because too many<br />

marketers are crediting the last click,” said Bryan Wiener, CEO of<br />

360i, in an interview with eMarketer. “The main complaint is that<br />

the last click is getting a disproportionate amount of the credit,<br />

and the earlier paid clicks—from display advertising, e-mail and<br />

other things that contributed to the consumer reaching a<br />

decision—are not getting appropriate credit.”<br />

Several key players in the online advertising ecosystem are rolling<br />

up their sleeves to develop and refine solutions for modeling,<br />

including the Atlas Institute (part of Microsoft), comScore and<br />

Nielsen <strong>Online</strong>.<br />

Mr. Gibs refers to Nielsen’s version of the concept as “media<br />

allocation modeling,” which applies weights to “each creative or<br />

placement or whatever. And what’s important is then you can start<br />

saying, ‘OK, so what’s the role of search?’ and you can layer<br />

search on top. You can say, ‘What’s the role of that microsite I<br />

built?’ OK, then you can layer the microsite on top. ‘What’s the role<br />

of video versus rich media versus standard display?’ OK, then you<br />

can layer them on top.”<br />

Ultimately, attribution models should be designed to tightly align<br />

data results to the marketer’s key objectives, which in many cases<br />

are some sort of sales activity.<br />

“Remember why you’re advertising. You are<br />

not advertising for clicks or [gross rating<br />

points]. What you’re advertising for is to sell<br />

me stuff or change perception, and that’s<br />

what we need to be measuring against.”<br />

—Carrie Frolich, managing director, digital, Mediaedge:cia,<br />

as quoted in Advertising Age, May 18, 2009<br />

As an example, Nielsen, in a partnership with Yahoo!, is able to<br />

match online ad exposures to a panel of shoppers through its<br />

Homescan unit. Said Mr. Gibs, “If a person saw an ad and they<br />

bought a product, it means the ad made them buy the product. So,<br />

it’s a fairly straightforward connection between the two.”<br />

Mr. Hecht of VivaKi has a slightly different view of the problem and,<br />

therefore, the solution. “The most broken part of Web<br />

[measurement] today is the attitudinal piece,” he said to<br />

Advertising Age on May 18, 2009. He believes “the killer app will be<br />

a sort of always-on brand-health meter” that he could dive into on<br />

a regular basis to gauge online ad effectiveness.<br />

® <strong>Online</strong><br />

“If everyone used a transactions-based<br />

model, we would have a more accountable,<br />

defensible advertising model, which in turn<br />

would create more stability and confidence<br />

in the interactive industry.” —Scott Knoll, general<br />

manager and vice president of display media, Datran<br />

Media, in an article on iMedia Connection, May 5, 2009<br />

Scott Knoll, general manager and vice president of display media<br />

at Datran Media, said the ultimate solution is to marry three sets of<br />

consumer data into a single database that captures:<br />

■ <strong>Online</strong> activity across Websites, search, e-mail, video and mobile<br />

■ Anonymous demographic information at the household level<br />

■ Transactional behavior data that can provide definitive results for<br />

ROI-minded marketers<br />

Mr. Knoll provided an example from one of his clients: “A national<br />

tourism agency wanted to run a new advertising campaign and<br />

needed direction on campaign targeting. Drawing on transactional<br />

and anonymous demographics data from a variety of sources, we<br />

found that consumers who responded the best to the agency’s<br />

advertising were single couples, with no children, incomes in the<br />

$100k range, and between the ages of 26 and 45. Better data<br />

means marketers can make business and creative suggestions<br />

with new data insights. With this information, the agency was<br />

better armed to target their future campaigns to consumers who<br />

would be the most receptive.”<br />

Another example of successful attribution modeling comes from<br />

Chrysler and its ad agency, Organic, which designed a media<br />

modeling system that helped the automaker allocate its marketing<br />

dollars more efficiently, including between digital and offline<br />

media. A key insight making the model possible was the fact that<br />

70% to 80% of consumers typically research car purchases online.<br />

“In refining the model, Organic learned how certain ads spur<br />

people to visit the Web,” reported The Wall Street Journal in May<br />

2009. “It then figured out which Web activities translate into actual<br />

auto sales. Some actions, such as scheduling a test drive online or<br />

entering a ZIP code to locate a dealer, are a good predictor of<br />

sales…. The result was a system that predicted 2008 sales within<br />

one percentage point of actual sales figures for its Jeep brands.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 43


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Partnerships Are Proliferating<br />

Partnerships between multiple industry players are rapidly<br />

emerging with the objective of amassing and statistically fusing<br />

tons of data culled from numerous touchpoints. Such<br />

collaborations are designed to get a holistic picture of consumers,<br />

and the impact advertising has on their attitudes and behaviors, all<br />

the way down to the transactional level.<br />

Panel-based measurement firms such as comScore, Nielsen,<br />

Quantcast and Compete, for example, are all working on<br />

multidisciplinary databases that can be mined to connect<br />

advertising exposure with behaviors such as search, site<br />

visitation, video-viewing and, ultimately, purchases.<br />

“We don’t think there is one magical metric.<br />

You need to triangulate across several data<br />

points.” —Stephen DiMarco, chief marketing officer,<br />

Compete, as quoted in Advertising Age, May 18, 2009<br />

As another example, Datran Media, a digital marketing technology<br />

company with a large database of e-mail and postal addresses, is<br />

able to append offline information through its collaboration with<br />

numerous offline data sources, including Acxiom (household<br />

data), IXI (financial data), MindSet Marketing Solutions (healthcare<br />

data) and NextAction (retail data). This bundling of third-party<br />

verified data, packaged under the product name Aperture, allows<br />

marketers to better understand and measure the audience seeing<br />

and responding to their ads, whether those ads are banners, rich<br />

media units or video ads.<br />

Similarly, Omniture and WPP’s Kantar Group are launching a joint<br />

effort that brings together data and analytics assembled from email,<br />

search, display ads and traditional forms of media, creating a<br />

“multichannel view,” according to John Mellor, executive vice<br />

president at Omniture. Also involved in the partnership are<br />

Dynamic Logic and TNS Media Compete.<br />

Finally, research powerhouse Nielsen is combining information<br />

from its recently acquired IAG unit with its Homescan data to<br />

evaluate the link between attitudes and sales.<br />

“It’s going to take a truly concerted effort on<br />

the part of publishers and other<br />

intermediaries to create inventory that is<br />

truly attractive to the creative community<br />

and can be exploited effectively by the<br />

creative community.” —Martin Nisenholtz, senior<br />

vice president for digital operations,The New York Times<br />

Co., in an interview with eMarketer,April 2009<br />

® <strong>Online</strong><br />

Championing the View-Through<br />

Another form of attribution modeling is the view-through<br />

conversion—a metric that captures what happens after the<br />

consumer is exposed to advertising, without the consumer<br />

necessarily clicking on any ads. Unlike immediate clicks, viewthroughs<br />

allow for the lag effects of time.<br />

Mr. Song of Atlas describes it as follows: “People [are] exposed to<br />

ads, don’t click on them, but actually end up on the advertiser’s<br />

site to convert. We refer to them as view-through conversions….<br />

There are about 10 times the number of view-through conversions<br />

as there are click-through conversions. [But] the view-through<br />

conversions, as much as people want to add them to their ROI<br />

metrics, are not a measure of direct response. They’re a measure<br />

of whether you’re reaching the right audience.”<br />

Mr. Song continued, “I call it behavior-based target reach analysis.<br />

So instead of a reach analysis that’s based on demographics, it’s<br />

actually based on the behavior of people coming to your site,<br />

people who are turning into leads.”<br />

View-throughs are helpful because they account for the fact that<br />

branding takes place over time. Many advertisers attach zero<br />

weight to view-throughs—often simply because they fail to<br />

measure them. Others give view-throughs all the credit for<br />

whatever results are seen. However, sophisticated tools are being<br />

developed to identify the ideal weight—between 0% and 100%—<br />

for any given campaign.<br />

View-through measurements are offered by a number of players<br />

in the market, including Google/DoubleClick, Microsoft/Atlas and<br />

comScore. In one study, comScore measured the impact of viewthroughs<br />

over time and found that they lifted the likelihood a<br />

consumer would visit the advertiser’s Website. The average lift<br />

was highest (up 54%) in the two weeks after exposure; however,<br />

even after four weeks, the lift continued (up 45.7%).<br />

Building New <strong>Measurement</strong> Models for Social and<br />

Video Environments<br />

Advertising on social networks and certain video sites can provide<br />

marketers with new and exciting opportunities to actually listen to<br />

consumers and find out how their brands and advertising campaigns<br />

are perceived in real time.While the measurement of these<br />

interactions is still in its early stages, there is a huge payoff for those<br />

willing to invest the time, energy and money to innovate. Moreover,<br />

the benefits go way beyond the confines of the social media platform.<br />

“I view listening as an important analytic,” said Mr. Mendenhall of<br />

Hewlett-Packard. “As you employ listening and other analytics,<br />

they start to drive your strategy at a macro-level. They either<br />

reinforce your strategy or correct it, and give you opportunities for<br />

ideas, products, services, segments and/or geographies that<br />

you’re not even in.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 44


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Doug Weaver, founder and CEO of the Upstream Group, said social<br />

media can be like a Richter scale for marketers wanting to gauge<br />

the impact of their entire marketing efforts.<br />

“For perhaps the first time ever, marketers can put a campaign or<br />

a message out into the public consciousness and then really hear<br />

and see its impact,” wrote Mr. Weaver in his May 2009 newsletter.<br />

“A brand can throw rocks into the pond and then measure both<br />

the quantity and quality of the ripples that follow. By all means,<br />

pour your time, money and resources into this channel to really<br />

understand the full ROI of all your marketing activity.”<br />

Such listening efforts conducted online can provide marketers with<br />

a sort of inexpensive “sounding board” for creative concepts they<br />

might want to run offline.This can help advertisers save money by<br />

testing creative concepts online to see what works before investing<br />

in far more expensive television commercials or magazine ads.<br />

Effective measurement of social media activities requires a new,<br />

expanded mindset as well as a means to integrate data gathered<br />

from all types of media. In an interview with eMarketer, social<br />

media guru at Nielsen <strong>Online</strong> Pete Blackshaw summed it up well:<br />

“On one side, you’ve got paid media and on the other you’ve got<br />

earned media. Put consumer-generated media, social media and<br />

a lot of indirect marketing on the earned side, and paid media—<br />

offline and online—on the unearned side. The two kinds [can]<br />

synergize [with] one another because paid advertising can help<br />

stimulate the conversation. What we need is a measurement<br />

model that can look at the two—both in distinct buckets, but also<br />

as an ecosystem where one is feeding the other. <strong>Brand</strong> equity is<br />

heavily impacted by the way in which the two interact.”<br />

Mr. Blackshaw concluded, “<strong>Brand</strong>s need to figure out models for<br />

looking at all of this in totality. It would be the ultimate brand<br />

dashboard that can look at ad measurements plus consumer<br />

perceptions through social media, and do it in real time.”<br />

Just as standards are needed for measuring online advertising<br />

programs in general,many feel standards need to evolve for the social<br />

world,as explained by Ms.Tilds of Mindshare-Team Detroit:“There is a<br />

lack of standards on the data-mining aspects of social media.It hasn’t<br />

evolved because everyone wants to make their standard a<br />

competitive advantage,but that is the worst thing to do for the<br />

industry.There should be a call for a standard and an open dialogue.”<br />

Marketers are also excited about online video ads. Why? Because<br />

they can offer the sight, sound, motion and emotion of television<br />

ads, and provide better potential targeting and measurability. The<br />

digital nature of online video ads also means they can instantly be<br />

shared with others. For brand marketers looking to engage with<br />

consumers, online video ads provide a variety of metrics,<br />

including time spent. According to LiveRail, consumers watch, on<br />

average, more than 80% of a 30-second online video ad.<br />

® <strong>Online</strong><br />

“With online video, there is time-based media<br />

buying where time is one component of the<br />

mix. The advertiser is buying a person’s<br />

attention. I’ve seen very few standards on<br />

what time means.” —Cary Tilds, senior vice<br />

president, Mindshare-Team Detroit, in an interview with<br />

eMarketer, May 2009<br />

When it comes to measurement of social media and video,<br />

advertisers are in the very early stages of connecting the dots.<br />

Q&A: What are the measurement challenges with<br />

respect to online video?<br />

Joe Laszlo<br />

Director of Research<br />

Interactive Advertising Bureau,<br />

trade association<br />

“There are a lot of different kinds of metrics being captured,<br />

analyzed and used to support the effectiveness of video<br />

campaigns. I would hope that the industry starts to whittle down<br />

the sheer number and decides that complete views are great, but<br />

midpoint views don’t necessarily give you a lot of useful data.”<br />

Full Interview<br />

Young-Bean Song<br />

Senior Director of Analytics & Atlas Institute<br />

Microsoft Advertising,<br />

Microsoft Corp.’s digital<br />

marketing and media solutions provider<br />

“The instinctual reaction of advertisers to try and show the sales<br />

impact of a video campaign is really misguided. We have studies<br />

showing that video, photo-sharing, weather and social media<br />

placements look horrible in the online ROI equation because they<br />

are upper-funnel. People don’t see ads on Facebook and then go<br />

buy something. But we are doing engagement mapping which is<br />

the ability to associate sales credit or ROI to all of the digital<br />

touchpoints in a person’s history.” Full Interview<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 45


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

“Identifying scalable ways to track online video can be complicated<br />

and there are special ways to track exposures.There’s also a<br />

proliferation of different formats and then there are proprietary<br />

players. Did people turn the sound on, did they stop the ad, did they<br />

rewind or repeat it and if so, how many times?” Full Interview<br />

“There’s a lot of experimentation going on as to ad placement and<br />

format—be it preroll or postroll. I’m not sure anybody has figured<br />

it out or what counts as engagement with an online video ad.<br />

We’re running video ad tests looking at the impact on brand<br />

metrics and impact on sales.” Full Interview<br />

Unraveling Consumer Engagement Metrics<br />

Although few in the industry can agree on a common definition of<br />

“engagement” in the context of online advertising measurement,<br />

clearly the Internet offers unique opportunities here given its<br />

interactive nature.<br />

Marketers, their agencies and a plethora of other industry<br />

stakeholders are working hard to develop engagement metrics<br />

that can act as proxies for attitudinal or behavioral changes they<br />

want to influence.<br />

“We are in the process of trying to figure out the most effective<br />

way of attributing shifts in brand health to online activity,” said Ms.<br />

Fuller of MasterCard Worldwide, in an interview with eMarketer.<br />

“The easier part of the equation is measuring engagement. The<br />

question is: How do you get more sophisticated about measuring<br />

the quality and impact of brand engagement?”<br />

Ms. Fuller added, “We look at time spent on our site and whether<br />

or not people engaged with the games we have there, how<br />

much traffic we’re able to drive and viral/social activities we are<br />

able to generate.”<br />

As Mr. Hecht of VivaKi said in an interview with eMarketer, “What<br />

we need to do is focus more on the outcomes and outputs of<br />

digital media. We’re focused more on brand engagement metrics<br />

that enable us to have better proxies for behavior and attitudes.”<br />

® <strong>Online</strong><br />

Ken Mallon<br />

Senior Vice President–Custom Solutions<br />

and Ad Effectiveness Consulting<br />

Dynamic Logic, research company<br />

specializing in marketing effectiveness<br />

Gian Fulgoni<br />

Chairman and Co-Founder<br />

comScore Inc.,<br />

provider of online audience<br />

measurement and survey research<br />

Those in the research field have their own ideas about what<br />

constitutes engagement. Nielsen, for example, is a big believer in<br />

time spent as a measure of engagement and brand impact. Mr.<br />

Gibs of Nielsen put it this way: “The single biggest problem is that<br />

the current measurement methodologies are insufficient to deal<br />

with the complexities of online advertising. The solution we<br />

believe quite strongly in is that measures of advertising online<br />

should be time-based measures, rather than impression-based<br />

measures. Instead of buying 100 million impressions on a Website,<br />

it would be buying X% of a person’s time.”<br />

Mr. Gibs went on to explain that time-based measures align<br />

publisher incentives with advertiser goals. When time spent is the<br />

metric advertisers are paying for, Web-based publishers will want<br />

to create an engaging environment so visitors stick around and<br />

interact with the advertising.<br />

From the agency side, Cory Treffiletti of Catalyst:SF argues that<br />

time is not only a key measurement online, but that marketers<br />

should be adding up all the pockets of time spent with the brand<br />

as a kind of overall engagement metric. As he said in his June 3,<br />

2009, <strong>Online</strong> Spin column in MediaPost, “Time spent across the<br />

entire campaign is the only metric that truly covers all the bases.”<br />

Others argue that time spent is insufficient.<br />

“The key is to compare more than time spent, utilizing the<br />

interactive nature of the engagement unit,” wrote Joe Marchese,<br />

also for <strong>Online</strong> Spin, in April 2009. “Marketers should look to tie<br />

engagements directly to changes in brand perception, purchase<br />

intent and, in the end, purchase decisions.”<br />

Mr. Wiener, CEO of 360i, likes the idea of a cost-per-engagement<br />

metric, but he also advocates a restructuring of disciplines within<br />

marketing organizations and a concerted effort to stop conflating<br />

direct response and branding measurements.<br />

“I believe that coming up with a cost-per-interaction or cost-perengagement<br />

metric is an important component for a solution,”<br />

said Mr. Wiener. “There is no panacea. One of the challenges is that<br />

people are looking for the Holy Grail.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 46


Working Toward the Solutions for <strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong><br />

Q&A: What is the potential game-changer for online<br />

brand measurement?<br />

“We’re looking for deeper analytics and to tie them all the way<br />

through to retail. In five, maybe 10 years, consumers will receive<br />

custom messages for specific retailers on their phone. They’ll<br />

store their preferences and the information will go right into their<br />

loyalty card. They will choose where they want to shop and the<br />

offers will follow them there.” Full Interview<br />

“Media allocation modeling, which analyzes all the elements in a<br />

campaign that contributed to an action, sale or behavior and not<br />

simply giving the last click all the credit. Marketers buying or<br />

planning digital media on time-based measures rather than<br />

impression-based measures.” Full Interview<br />

“I don’t think there’ll be a single game-changer. But I think the<br />

most important thing is that chief marketing officers need to give<br />

clear mandates and reorganize internally and externally around<br />

making digital a priority as a brand-building medium. There needs<br />

to be a clear delineation between brand objectives and metrics<br />

and direct response objectives and metrics. I think everything else<br />

follows from that.”<br />

“Marketers need to understand not only what works<br />

retrospectively, but how they can use data proactively to make<br />

better decisions about the audiences they buy and the way they<br />

deliver messages. When you have a programmatic way of using<br />

that sort of insight across a broad range of media, you begin to<br />

break down barriers.”<br />

® <strong>Online</strong><br />

Mark Addicks<br />

Senior Vice President, Chief Marketing Officer<br />

General Mills,<br />

consumer packaged goods marketer<br />

Jon Gibs<br />

Vice President–Media Analytics<br />

The Nielsen Co.’s Nielsen <strong>Online</strong>,<br />

provider of online audience measurement<br />

and analysis<br />

Bryan Wiener<br />

Chief Executive Officer<br />

360i,<br />

digital marketing agency<br />

Konrad Feldman<br />

Chief Executive Officer<br />

Quantcast Corp.,<br />

online audience measurement service<br />

Next Steps: A Seven-Point Plan<br />

This final section summarizes the next steps for<br />

the industry in a short, seven-point action plan.<br />

Once again, in keeping with the community<br />

nature of this report, the reader is encouraged to<br />

add comments and suggestions.<br />

1. Reorganize and Restructure Your Teams<br />

First, marketers need to restructure their organizations so that<br />

online marketing reports directly to the CMO. This is the only way<br />

that attribution and cross-platform models will be successful.<br />

Second, marketers and their ad agencies need to reorganize their<br />

internal teams and structures to concentrate on the branding<br />

component of the online measurement process as a separate and<br />

distinct process from direct response measurement.<br />

Bryan Wiener, CEO of 360i, put it well: “Digital is too often<br />

synonymous with direct response. CMOs need to look at their<br />

marketing organizations and the way their agency roster is<br />

organized. If they want digital to be an effective brand-building<br />

medium, they need to reorganize their departments and have<br />

people who understand digital and agencies that understand<br />

digital. Everything else follows from that.”<br />

Added Mr. Wiener, “There needs to be a clear separation and<br />

delineation between brand objectives/metrics and direct<br />

response objectives/metrics. I think mixing the two, which we’ve<br />

all been guilty of, has created more confusion.”<br />

To quote author Jim Collins, you also need get the right people on<br />

the bus. Specifically, you need two kinds of people: left-brainers<br />

and right-brainers.<br />

Left-brainers manage the terabytes of data, build complex models<br />

with databases that talk to each other, and then channel that data<br />

into actionable insights. Left-brainers are typically logical,<br />

sequential, rational, analytical and objective. They look at parts.<br />

Right-brainers are the creative types who can craft advertising<br />

that strikes an emotional chord, changes attitudes and motivates<br />

people to buy. Right-brainers are random, intuitive, holistic,<br />

synthesizing and subjective. They look at wholes.<br />

And finally, of course, you have to bring the left-brainers and rightbrainers<br />

together. As John Burbank, CEO of Nielsen <strong>Online</strong>, told<br />

eMarketer, “There has to be a change in the way agencies are<br />

structured. Media buying, media planning and creative have to be<br />

done cross-platform.”<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 47


Next Steps: A Seven-Point Plan<br />

2. Partner<br />

Key stakeholders, including ad agencies, research houses, portals<br />

and Web analytics firms, should strive to establish deep, broadly<br />

encompassing partnerships.The goal? To build up huge,<br />

multiplatform databases that sync up demographic data, audience<br />

data, attitudinal data, behavioral data and transactional data.<br />

Focus on hybrid models that combine the best of panel<br />

measurement and brand intercept platforms.<br />

3. Build Cross-Media Coalitions<br />

The major media trade associations, including the IAB, ARF, 4A’s,<br />

ANA, OPA and the WAA (Web Analytics Association) must step up<br />

their efforts to align goals and committee efforts to develop<br />

common standards, definitions and best practices for<br />

measurement. A common currency is also a must.<br />

As such, the industry needs to develop standardized methods for<br />

applying reach, frequency and GRPs to online platforms.<br />

(Importantly, the denominator in the GRP equation must be the<br />

total US population, or total target universe—not the population of<br />

the medium.)<br />

The adoption of GRPs will be a starting point in providing<br />

marketers with apples-to-apples measurements that they can<br />

plug into their media mix models.<br />

Building on the GRP model as a foundation, the next step is to<br />

overlay the data that is unique to the online space and provides a<br />

digital footprint measuring how the consumer is engaged with the<br />

brand over a period of time. This could include time spent as well<br />

as a host of other engagement metrics. The goal is to move from<br />

media ad buckets and data silos to true integration—measuring<br />

across media.<br />

4. Create Next-Generation Attribution Models<br />

Put a laserlike focus on building attribution models to identify and<br />

quantify the value of every media touchpoint along the purchase<br />

funnel. Tie that data into holistic models that can help marketers<br />

make future decisions about media allocations, both within the<br />

online universe and across all media platforms. Among other skill<br />

sets, this will require a mastery of Web analytics.<br />

Additionally, the models need to incorporate social media and<br />

video activity. Marketers must make it a priority to systematically<br />

monitor social media interactions and use this valuable<br />

“listening/learning” to inform their online and offline media and<br />

creative messages. One of the biggest challenges will be to<br />

measure the sharing activity among social consumers, including<br />

online video ads and widgets, which can affect a marketer’s reach<br />

and engagement levels. Those who are able to connect all the dots<br />

will enjoy a significant competitive advantage.<br />

® <strong>Online</strong><br />

5. Become Educated<br />

While models can provide insight, the models themselves need to<br />

be shaped by insights that come from the real world—specifically,<br />

through market research that will tell you what online consumers<br />

are doing and what they are likely to do in the future. By arming<br />

yourself with information and trend data, you will be able to ask<br />

the right questions and design measurement systems and models<br />

that capitalize on real consumer behavior and attitudes.<br />

“Data is useless unless it becomes currency<br />

for making a decision.”<br />

—Rashid Tobaccowala, CEO, Denuo, as quoted in<br />

MediaPost, June 10, 2009<br />

6. Take a Long-Term View<br />

Remember there is no silver bullet. Hard work and careful<br />

planning will be necessary to reinvent online brand measurement<br />

and coordinate it seamlessly with offline measurement. There are<br />

no shortcuts to success.<br />

7. Make a Commitment<br />

Wherever you are in the online marketing ecosystem, make a<br />

commitment to improving online measurement for your brands,<br />

or those of your clients. While measurement is not the only thing<br />

that needs fixing in the online advertising industry, it is a huge<br />

obstacle to more ad dollars coming through the pipeline.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 48


Endnotes<br />

Endnote numbers correspond to the unique<br />

six-digit identifier in the lower left-hand corner<br />

of each chart. The charts from the report are<br />

repeated before their respective endnotes.<br />

102197 | 104363 | 104366<br />

US <strong>Online</strong> Advertising Spending Growth, 2007-2013 (%<br />

change)<br />

2007 25.6%<br />

2008 10.6%<br />

2009 4.5%<br />

2010 9.4%<br />

2011 10.8%<br />

2012 13.5%<br />

2013 10.4%<br />

Source: eMarketer, April 2009<br />

102197 www.eMarketer.com<br />

US <strong>Online</strong> Advertising Spending, by Format and<br />

Objective, 2008- 2013 (millions)<br />

2008 2009 2010 2011 2012 2013<br />

Display ads $4,877 $4,655 $4,824 $5,034 $5,426 $5,543<br />

Video $734 $1,054 $1,501 $2,109 $3,134 $4,092<br />

Rich media $1,642 $1,691 $1,849 $2,079 $2,359 $2,641<br />

Sponsorships $387 $319 $348 $386 $438 $484<br />

<strong>Brand</strong>ing total $7,640 $7,718 $8,522 $9,608 $11,357 $12,760<br />

Search $10,546 $11,956 $13,534 $14,969 $16,648 $18,340<br />

Classifieds $3,174 $2,671 $2,412 $2,554 $2,831 $2,976<br />

Lead generation $1,683 $1,764 $1,930 $2,138 $2,393 $2,604<br />

E-mail $405 $392 $402 $431 $472 $521<br />

Direct response $15,808 $16,783 $18,278 $20,092 $22,343 $24,440<br />

total<br />

Grand total $23,448 $24,500 $26,800 $29,700 $33,700 $37,200<br />

Note: numbers may not add up to total due to rounding<br />

Source: eMarketer, April 2009<br />

104363<br />

102197 104363 104366<br />

www.eMarketer.com<br />

® <strong>Online</strong><br />

US <strong>Online</strong> Advertising Spending Growth, by Format<br />

and Objective, 2008-2013 (% change)<br />

2008 2009 2010 2011 2012 2013<br />

Video 126.5% 43.5% 42.5% 40.5% 48.6% 30.6%<br />

Rich media -0.8% 3.0% 9.4% 12.4% 13.5% 12.0%<br />

Sponsorships -39.2% -17.7% 9.4% 10.8% 13.5% 10.4%<br />

Display ads 9.4% -4.6% 3.6% 4.4% 7.8% 2.2%<br />

<strong>Brand</strong>ing total 8.0% 1.0% 10.4% 12.7% 18.2% 12.4%<br />

E-mail -4.5% -3.2% 2.6% 7.1% 9.6% 10.4%<br />

Search 19.8% 13.4% 13.2% 10.6% 11.2% 10.2%<br />

Lead generation 6.3% 4.8% 9.4% 10.8% 11.9% 8.8%<br />

Classifieds -4.4% -15.9% -9.7% 5.9% 10.8% 5.1%<br />

Direct response total 11.8% 6.2% 8.9% 9.9% 11.2% 9.4%<br />

Grand total 10.6% 4.5% 9.4% 10.8% 13.5% 10.4%<br />

Source: eMarketer, April 2009<br />

104366 www.eMarketer.com<br />

Extended Note: eMarketer benchmarks its US online advertising<br />

spending projections against the Interactive Advertising Bureau<br />

(IAB)/PricewaterhouseCoopers (PwC) data, for which the last full<br />

year measured was 2008. <strong>Online</strong> ad data includes categories as<br />

defined by IAB/PwC benchmark—display ads (such as banners),<br />

search ads (including paid listings, contextual text links and paid<br />

inclusion), rich media, video (including in-stream, in-banner, intext),<br />

classified ads, sponsorships, lead generation (referrals) and<br />

e-mail (embedded ads only); excludes mobile ad spending.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 49


Endnotes<br />

104394<br />

Comparative Estimates: US <strong>Online</strong> Advertising<br />

Spending Growth, 2009 (% change*)<br />

-6.0%<br />

104394<br />

® <strong>Online</strong><br />

-2.0%<br />

-5.0%<br />

-0.5%<br />

LiveRail, September 2008<br />

JupiterResearch, December 2008<br />

BMO Capital Markets, October 2008<br />

Wachovia, October 2008<br />

ZenithOptimedia, April 2009<br />

3.0%<br />

2.3%<br />

2.1%<br />

1.5%<br />

5.0%<br />

5.0%<br />

4.5%<br />

4.3%<br />

6.2%<br />

7.4%<br />

7.2%<br />

Jefferies & Company, February 2009<br />

1.0%<br />

Credit Suisse, February 2009<br />

0.1%<br />

10.0%<br />

13.0%<br />

Borrell Associates Inc., November 2008<br />

SNL Kagan, May 2009<br />

Collins Stewart LLC, May 2009<br />

GroupM, March 2009<br />

eMarketer, April 2009<br />

Citi Investment Research, January 2009<br />

ThinkPanmure LLC, October 2008<br />

Barclays Capital, May 2009<br />

Morgan Stanley, March 2009<br />

Thomas Weisel Partners, March 2009<br />

Myers Publishing LLC, May 2009<br />

Oppenheimer & Co. Inc., February 2009<br />

UBS, February 2009<br />

Cowen and Co., May 2009<br />

14.8%<br />

19.4%<br />

Note: *vs. prior year<br />

Source: eMarketer, April 2009; various, as noted, 2008 & 2009<br />

104394 www.eMarketer.com<br />

Extended Note: Barclays includes auctions, display, lead<br />

generation/e-mail, search and other. BMO Capital includes<br />

classifieds, display ads, e-mail, lead generation, rich media and<br />

video, search, slotting fees, sponsorships and other. Borrell<br />

includes standard display ads such as banners and pop-ups,<br />

streaming audio/video, paid search and direct/e-mail. Citi<br />

Investment Research includes banner ads, classifieds, digital<br />

video, e-mail, lead generation, rich media, search and<br />

sponsorships. Collins Stewart includes banner ads, classifieds,<br />

e-mail, referrals/lead generation, rich media/video, search and<br />

sponsorships. eMarketer benchmarks its US online advertising<br />

spending projections against the Interactive Advertising Bureau<br />

(IAB)/PricewaterhouseCoopers (PwC) data, for which the last full<br />

year measured was 2008. eMarketer includes categories as<br />

defined by IAB/PwC benchmark—classifieds, display ads (such as<br />

banners), e-mail (embedded ads only), lead generation (referrals),<br />

rich media, search ads (including paid listings, contextual text links<br />

and paid inclusion), sponsorships and video (including in-stream,<br />

in-banner, in-text)—and excludes mobile ad spending.<br />

JupiterResearch includes classifieds, display and search. Myers<br />

includes display, online video/social networks/widgets, search<br />

and other. ThinkPanmure includes banner ads, classified ads,<br />

e-mail (embedded ads only), lead generation, rich media, search<br />

(paid and contextual), sponsorships and video. ZenithOptimedia<br />

also includes Internet radio and podcasting.<br />

104597 | 104600<br />

US <strong>Online</strong> Display and Search Advertising Spending<br />

Growth, 2008-2013 (% change)<br />

2008 2009 2010 2011 2012 2013<br />

Search* 19.8% 13.4% 13.2% 10.6% 11.2% 10.2%<br />

Display ads** 9.4% -4.6% 3.6% 4.4% 7.8% 2.2%<br />

Note: *paid listings, contextual text links and paid inclusion; **banner ads<br />

only, excludes rich media and video<br />

Source: eMarketer, April 2009<br />

104597 www.eMarketer.com<br />

US <strong>Online</strong> Display and Search Advertising Spending<br />

Share, 2008-2013 (% of total)<br />

2008 2009 2010 2011 2012 2013<br />

Search* 45.0% 48.8% 50.5% 50.4% 49.4% 49.3%<br />

Display ads** 20.8% 19.0% 18.0% 17.0% 16.1% 14.9%<br />

Note: *paid listings, contextual text links and paid inclusion; **banner ads<br />

only, excludes rich media and video<br />

Source: eMarketer, April 2009<br />

104600<br />

104597 104600<br />

www.eMarketer.com<br />

Extended Note: eMarketer benchmarks its US online advertising<br />

spending projections against the Interactive Advertising Bureau<br />

(IAB)/PricewaterhouseCoopers (PwC) data, for which the last full<br />

year measured was 2008.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 50


Endnotes<br />

104573<br />

Comparative Estimates: US <strong>Online</strong> Display and Search<br />

Advertising Spending Growth, 2009 (% change*)<br />

<strong>Online</strong> Search<br />

display<br />

Barclays Capital, May 2009 -1.0% 10.0%<br />

BMO Capital Markets, October 2008 -2.0% 21.0%<br />

Citi Investment Research, November 2008 -5.0% 14.0%<br />

Collins Stewart, November 2008 3.0% 13.0%<br />

Cowen and Company, May 2009 - 1.0%<br />

Credit Suisse, January 2009 -5.9% 8.1%<br />

eMarketer, April 2009 -4.6% 13.4%<br />

Forrester Research, April 2009 1.7% 13.9%<br />

JPMorgan, January 2009 6.3% 9.9%<br />

Myers Publishing LLC, May 2009 -3.0% 1.0%<br />

Oppenheimer & Co., February 2009 -15.0% 10.0%<br />

SNL Kagan, May 2009 4.6% 9.1%<br />

ThinkPanmure, October 2008 -5.0% 13.0%<br />

ZenithOptimedia, April 2009 -1.8% 9.0%<br />

Note: *vs. prior year<br />

Source: eMarketer, April 2009; various, as noted, 2008 & 2009<br />

104573 www.eMarketer.com<br />

104573<br />

Citation: Barclays Capital, "Internet Data Book May 2009,"<br />

provided to eMarketer, May 14, 2009; BMO Capital Markets,<br />

"Internet Media & Broadcasting," provided to eMarketer, October<br />

30, 2008; Citi Investment Research, "US Advertising: Batten Down<br />

the Hatches," provided to eMarketer, November 10, 2008; Collins<br />

Stewart LLC, "Global Internet," November 24, 2008; Cowen and<br />

Company, "Internet & New Media," provided to eMarketer, May 22,<br />

2009; Credit Suisse, "US Advertising Outlook 2009," provided to<br />

eMarketer, January 9, 2009; Forrester Research, "US Interactive<br />

Advertising Forecast" as cited by Inside the Marketers Studio, April<br />

23, 2009 with eMarketer calculations; JPMorgan and company<br />

reports, "<strong>Online</strong> Advertising Forecast," provided to eMarketer,<br />

November 3, 2008; JPMorgan and company reports, "Nothing But<br />

Net," January 5, 2009; Myers Publishing LLC, "Advertising &<br />

Marketing Investment Forecast 2008-2010," May 4, 2009;<br />

Oppenheimer & Co. Inc., "Media & Internet," provided to<br />

eMarketer, February 24, 2009; SNL Kagan, "Economics of Internet<br />

Media," provided to eMarketer, May 21, 2009; ThinkPanmure LLC,<br />

"Internet Advertising," October 8, 2008 provided to eMarketer,<br />

October 22, 2008; ZenithOptimedia, "Advertising Expenditure<br />

Forecasts - March 2009," provided to eMarketer, April 14, 2009<br />

Extended Note: Barclays includes display, rich media and video.<br />

BMO Capital, Citi Investment, Collins Stewart, eMarketer,<br />

Oppenheimer and ZenithOptimedia include banners only. Credit<br />

Suisse includes banners, rich media and video. JPMorgan includes<br />

display. Myers includes banners, rich media and other.<br />

ThinkPanmure includes display, rich media, listings and other.<br />

eMarketer benchmarks its US online advertising spending<br />

® <strong>Online</strong><br />

projections against the Interactive Advertising Bureau<br />

(IAB)/PricewaterhouseCoopers (PwC) data, for which the last full<br />

year measured was 2008. In its search figures, eMarketer includes<br />

paid listings (paid search), contextual text links and paid inclusion.<br />

103522<br />

<strong>Online</strong> Advertising's Effect on <strong>Brand</strong> Metrics in the<br />

US, Q4 2008* (% of respondents impacted)<br />

Aided <strong>Online</strong> ad Message <strong>Brand</strong> Purchase<br />

brand<br />

awareness<br />

awareness association favorability intent<br />

Control 72% 25% 17% 42% 39%<br />

Exposed 74% 30% 19% 44% 40%<br />

Delta** 2.4 4.9 2.6 1.6 1.3<br />

Note: n=2,380 campaigns and 3,889,602 respondents; *includes three<br />

years through Q4 2008; **delta defined as point difference in exposed vs.<br />

control groups<br />

Source: Dynamic Logic provided to eMarketer, April 27, 2009<br />

103522<br />

103522<br />

www.eMarketer.com<br />

Extended Note: This chart shows the % impacted as a result of<br />

exposure to the online ad campaign. For example, on average,<br />

2.4% of people (or 24 out of 1,000) exposed to online ads become<br />

aware of the tested brand.<br />

103523<br />

<strong>Online</strong> Advertising's Effect on <strong>Brand</strong> Metrics in the<br />

US, by Level of Campaign Performance*, Q4 2008** (%<br />

of respondents impacted)<br />

Aided <strong>Online</strong> ad Message <strong>Brand</strong> Purchase<br />

brand<br />

awareness<br />

awareness association favorability intent<br />

Top 8.9% 14.0% 9.5% 7.5% 7.1%<br />

Average 2.4% 4.9% 2.6% 1.6% 1.3%<br />

Bottom -2.3% -1.6% -2.0% -3.5% -4.0%<br />

Note: n=2,380 campaigns and 3,889,602 respondents; *best performers<br />

are the average of the top 20% of campaigns per metric and worst<br />

performers are the bottom 20% of campaigns; **includes three years<br />

through Q4 2008<br />

Source: Dynamic Logic provided to eMarketer, April 27, 2009<br />

103523<br />

103523<br />

www.eMarketer.com<br />

Extended Note: Read chart as saying that on average, online<br />

campaigns in the top 20% of performers impact 7.1% of people<br />

with respect to purchase intent.<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 51


Endnotes<br />

102827<br />

Interactive* Advertising's Effect on <strong>Brand</strong> Metrics in<br />

the US, by Site Category, January 2009 vs. August 2008<br />

(% change in delta**)<br />

<strong>Brand</strong>ed content sites<br />

(OPA members)<br />

63% 7% 8% 40% 0%<br />

MarketNorms® database -11% -8% -10% -18% -13%<br />

Portals<br />

-9% -3% -6% -11% 0%<br />

Ad networks<br />

-21% -7% 0% -18% -40%<br />

Note: *involves the audience without having them click through or leave<br />

the Webpage; **delta defined as point difference in exposed vs. control<br />

groups<br />

Source: <strong>Online</strong> Publishers Association (OPA) and Dynamic Logic, "Improving<br />

Ad Performance <strong>Online</strong>: The Impact of Advertising on Quality Content<br />

Sites," January 8, 2009<br />

102827 www.eMarketer.com<br />

102827<br />

Extended Note: <strong>Brand</strong>ed content sites–respondents with<br />

campaigns running for the past three years through Q3 2008.<br />

MarketNorms® database–respondents with campaigns running<br />

for the past three years through Q2 2008.<br />

® <strong>Online</strong><br />

Aided<br />

brand<br />

awareness<br />

<strong>Online</strong><br />

ad<br />

awareness<br />

Message<br />

association<br />

<strong>Brand</strong><br />

favorability<br />

Purchase<br />

intent<br />

Related Information and Links<br />

360i<br />

http://www.360i.com/<br />

Aberdeen Group<br />

http://www.aberdeen.com/<br />

Acxiom<br />

http://www.acxiom.com<br />

AdMedia Partners<br />

http://www.admediapartners.com/<br />

AdRelevance<br />

http://www.adrelevance.com<br />

Advertising Age<br />

http://adage.com<br />

Advertising Research Foundation (ARF)<br />

http://www.thearf.org/<br />

Adweek<br />

http://www.adweek.com<br />

Alterian<br />

http://www.alterian.com/<br />

American Association of Advertising Agencies (4A’s)<br />

http://www.aaaa.org<br />

Association of National Advertisers (ANA)<br />

http://www.ana.net/<br />

Atlas Institute<br />

http://www.atlassolutions.com/<br />

BMO Capital Markets<br />

http://www.bmocm.com<br />

Catalyst:SF<br />

http://www.catalystsf.com<br />

CMO Council<br />

http://www.cmocouncil.org/<br />

Compete<br />

http://www.compete.com<br />

comScore<br />

http://www.comscore.com/<br />

Cowen and Co.<br />

http://www.cowen.com<br />

Credit Suisse<br />

http://www.credit-suisse.com<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 52


Related Information and Links<br />

Crossix Solutions<br />

http://www.crossix.com<br />

Datran Media<br />

http://www.datranmedia.com<br />

DoubleClick<br />

http://www.doubleclick.com<br />

dunnhumby<br />

http://www.dunnhumby.com<br />

Dynamic Logic<br />

http://www.dynamiclogic.com/na/<br />

Eyeblaster<br />

http://www.eyeblaster.com<br />

Forbes<br />

http://www.forbes.com/<br />

Forrester Research<br />

http://www.forrester.com<br />

General Mills<br />

http://www.generalmills.com/corporate/index.aspx<br />

Heidrick & Struggles<br />

http://www.heidrick.com<br />

Hewlett-Packard<br />

http://www.hp.com<br />

ICON International<br />

http://www.icon-intl.com<br />

iMedia Connection<br />

http://www.imediaconnection.com<br />

InsightExpress<br />

http://www.insightexpress.com/<br />

Interactive Advertising Bureau (IAB)<br />

http://www.iab.net/<br />

iProspect<br />

http://www.iprospect.com<br />

IXI<br />

http://www.ixicorp.com<br />

Jefferies & Co.<br />

http://www.jefferies.com/<br />

Johnson & Johnson<br />

http://www.jnj.com<br />

® <strong>Online</strong><br />

Kantar Group<br />

http://www.kantargroup.com<br />

Lenskold Group<br />

http://www.lenskold.com/<br />

LiveRail<br />

http://www.liverail.com<br />

Lotame Solutions<br />

http://www.lotame.com<br />

Marketing Executives Networking Group (MENG)<br />

http://www.mengonline.com<br />

MarketingProfs<br />

http://www.marketingprofs.com/<br />

MarketingSherpa<br />

http://www.marketingsherpa.com/<br />

MarketSphere<br />

http://www.marketsphere.com/<br />

MasterCard Worldwide<br />

http://www.mastercard.com/us/gateway.html<br />

McKinsey & Co.<br />

http://www.mckinsey.com/<br />

Media Link LLC<br />

http://medialinkllc.com/<br />

MediaPost<br />

http://www.mediapost.com<br />

Mediasmith<br />

http://www.mediasmith.com/<br />

Microsoft Advertising<br />

http://advertising.microsoft.com<br />

Millward Brown<br />

http://www.millwardbrown.com<br />

MindSet Marketing Solutions<br />

http://www.mindsetmarketing.com<br />

Mindshare-Team Detroit<br />

https://www.teamdetroit.com/<br />

Myers Publishing<br />

http://www.jackmyers.com<br />

MySpace<br />

http://www.myspace.com<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 53


Related Information and Links<br />

Neo@Ogilvy<br />

http://www.neoogilvy.com/home/<br />

NextAction<br />

http://www.nextaction.net<br />

Nielsen Homescan<br />

http://www.homescan.com<br />

Nielsen <strong>Online</strong><br />

http://www.nielsen-online.com/<br />

OfficeMax<br />

http://www.officemax.com/<br />

Omniture<br />

http://www.omniture.com<br />

<strong>Online</strong> Publishers Association (OPA)<br />

http://www.online-publishers.org/<br />

Oppenheimer & Co.<br />

http://www.opco.com<br />

Organic<br />

http://www.organic.com<br />

Penn, Schoen & Berland Associates<br />

http://www.psbresearch.com<br />

PricewaterhouseCoopers (PwC)<br />

http://www.pwc.com<br />

Primary Impact<br />

http://www.primaryimpact.com<br />

Procter & Gamble<br />

http://www.pg.com<br />

PROMO magazine<br />

http://promomagazine.com/<br />

PubMatic<br />

http://www.pubmatic.com/<br />

Quantcast<br />

http://www.quantcast.com/<br />

Razorfish<br />

http://www.razorfish.com/<br />

Rubicon Project<br />

http://www.rubiconproject.com/<br />

Sapient<br />

http://www.sapient.com/<br />

® <strong>Online</strong><br />

Specific Media<br />

http://www.specificmedia.com<br />

Spencer Stuart<br />

http://www.spencerstuart.com<br />

Starcom MediaVest Group<br />

http://www.smvgroup.com<br />

The New York Times Co.<br />

http://www.nytco.com/<br />

The Nielsen Co.<br />

http://www.nielsen.com<br />

TNS Media Intelligence<br />

http://www.tns-mi.com<br />

Universal McCann<br />

http://www.universalmccann.com<br />

Upstream Group<br />

http://www.upstreamgroup.com<br />

Verse Group<br />

http://www.versegroup.com/<br />

VivaKi Nerve Center<br />

http://www.vivaki.com/<br />

Web Analytics Association (WAA)<br />

http://www.webanalyticsassociation.org<br />

WPP Group<br />

http://www.wpp.com<br />

Yahoo!<br />

http://www.yahoo.com<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 54


Related Information and Links<br />

Contact<br />

eMarketer, Inc. Toll-Free: 800-405-0844<br />

75 Broad Street Outside the US: 212-763-6010<br />

32nd floor Fax: 212-763-6020<br />

New York, NY 10004 sales@emarketer.com<br />

Report Contributors<br />

Special thanks to eMarketer colleagues who contributed<br />

to this report:<br />

David Hallerman Senior Analyst<br />

Tobi Elkin Writer<br />

Evelyn Majewski Senior Researcher<br />

Patrick Miller Web Designer<br />

Dana Hill Production Artist<br />

Susan Reiter Managing Editor<br />

Kris Oser Communications Director<br />

Yael Marmon Research Director<br />

Nicole Perrin Copy Editor<br />

Elissa Hunter Copy Editor<br />

Allison Smith Senior Editor<br />

Tracy Tang Senior Researcher<br />

Tony Feyer Motion Graphics<br />

Jared Jenks Numbers Editor<br />

James Ku Data Entry Associate<br />

® <strong>Online</strong><br />

eMarketer Total Access: How to<br />

Make Better Digital Business<br />

Decisions<br />

If you found the “<strong>Online</strong> <strong>Brand</strong> <strong>Measurement</strong>”<br />

report useful, imagine what you could do with a<br />

Total Access subscription:<br />

■ Raise your digital IQ.<br />

■ See the information that leading marketers use to develop<br />

successful digital marketing and media strategies.<br />

■ Access the world’s largest database of digital marketing and<br />

media information—24/7.<br />

■ Build stronger business and marketing plans based on unbiased<br />

data and analysis.<br />

■ Create more compelling presentations—in print, PPt and online.<br />

■ Have the assurance of knowing that your decisions are based on<br />

a broad range of sources.<br />

Total Access not only gives you access to a vast amount of digital<br />

marketing and media information, it puts state-of-the-art online<br />

business tools at your fingertips. You get the information you need<br />

in whatever form you need it: articles, interviews, in-depth reports,<br />

graphs, interactive charts, data dashboards, online analytics,<br />

videos, alerts and more.<br />

For more information on a Total Access subscription for<br />

your company or organization, click here.<br />

For immediate information, please call:<br />

212-763-6010<br />

800-405-0844 (Toll-free)<br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 55


About eMarketer<br />

eMarketer is "The First Place to Look" for<br />

research and analysis on digital marketing<br />

and media. eMarketer analyzes information<br />

from over 3,000 sources, and brings it together<br />

in reports, articles and the most comprehensive<br />

database of online marketing statistics in<br />

the world.<br />

A Trusted Resource<br />

eMarketer serves as a trusted, third-party resource, cutting<br />

through the clutter and hype–helping businesses make sense of<br />

the numbers and trends. eMarketer's products and services help<br />

companies make better, more informed business decisions by:<br />

■ Streamlining research sources and reducing costs<br />

■ Eliminating critical data gaps<br />

■ Providing an objective, bird’s eye view of the entire landscape<br />

■ Better deploying and sharing information across the company<br />

■ Building solid business cases backed up by hard data<br />

■ Reducing business risk<br />

■ Saving valuable time<br />

To learn more about subscriptions to eMarketer,<br />

call 800-405-0844 (outside the U.S. and Canada,<br />

call 001-212-763-6010), or e-mail sales@emarketer.com.<br />

® <strong>Online</strong><br />

<strong>Brand</strong> <strong>Measurement</strong>: Special Report 56

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!