Online Brand Measurement:
Online Brand Measurement:
Online Brand Measurement:
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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® <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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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<strong>Brand</strong> <strong>Measurement</strong>: Special Report 30<br />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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<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 />
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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 />
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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 />
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“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 />
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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 />
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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 />
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