ComScore Ad Metrix - Insights Into Online Display Advertising's Growth

Insights into Online Display Advertising's Growth

Stay Ahead of the Curve

John Triggs, Product SpecialistJune 2, 2010

Display Advertising Background:

The very first banner ad ran on October 24, 1994

2© comScore, Inc. Proprietary and Confidential.

AT&T “You Will” campaign

Ad Size/Format: 468 x 60, JPG

Publisher: Hotwired.com


AT&T “You Will” campaign predictions

Have you ever:

� Received a phone call on your wrist?

� Had a classmate who’s 1,000 miles away

� Conducted business in a language you don’t understand

� Had an assistant who lived in your computer

� Tucked your baby in from a phone booth


� Tucked your baby in from a phone booth

� Watched a movie you wanted to the minute you want to

� Carried your medical history in your wallet

� Attended a meeting in your bare feet

You will. And the company who will bring it to you ? AT&T

For more “You Will” campaign predictions, visit: http://adland.tv/content/banner-ads-tenth-birthday


Fast forward 16 years … AT&T is top display advertis er in Q1 2010

Rank Advertiser Estimated Spend

1 AT&T Inc. $54.1 million

2 Verizon Communications Inc. $46.3 million

3 Experian Interactive $44.8 million

4 Sprint Nextel Corporation $31.4 million

4© comScore, Inc. Proprietary and Confidential. Source: comScore Ad Metrix, January-March 2010

5 Netflix, Inc. $31.1 million

6 General Motors Corporation $27.0 million

7 Progressive Corporation $24.2 million

8 eBay Inc. $22.0 million

9 Procter & Gamble Co. $21.4 million

10 Intuit Inc. $21.1 million


A closer look at Intuit’s display advertising spend


Two observations on Intuit:

� Allocated 94% of estimated $33.5M past year display advertising spend for in Jan-Apr 2010

� Spent an estimated 2x more on display ads online in March 2010 vs. March 2009

Source: comScore Ad Metrix, January 2009 – April 2010

Stay Ahead of the Curve:


� Display Advertising is Bouncing Back

� The Reasons Behind Display’s Resurgence

– Traditional Meets Digital– Improving Digital Creative and Ad Formats– The Death of the Click– Advertising Finally Gets Social


– Advertising Finally Gets Social

� Conclusion

Display Advertising is Bouncing Back:

Q1 2010 In Review

U.S. Internet users received a record 1.1 trillion display ads in Q1

� 15% impression growth

� Increased advertiser expenditures

� Higher CPMs for publishers

7© comScore, Inc. Proprietary and Confidential. Source: comScore Ad Metrix, October 2008 – March 2010





– Traditional Meets Digital– Improving Digital Creative and Ad Formats


– The Death of the Click– Advertising Finally Gets Social

� Conclusion

Online display advertising in the past:

� Traditional advertisers waited on sidelines until effectiveness proven

� Click-driven ads offered low effectiveness for brand advertisers

The Reasons Behind Display’s Resurgence:

Traditional Meets Digital

Let’s take a closer look at Unilever


Online display today:

� Consumer Goods companies spent over $100M on Q1 display ads

� Procter & Gamble led CPG advertising spend with $17.0M ($21.4M overall)

Source: comScore Ad Metrix, January-March 2010


Traditional advertisers are shifting their media sp end towards digital

Unilever – Top Publishers, March 2010 Unilever – Top Products, March 2010

10© comScore, Inc. Proprietary and Confidential. Source: comScore Ad Metrix, November 2009 – April 2010



� Online branding display ads aimed at target audienc es on relevant sites

– All of display ad expenditures for Klondike went to ESPN.com

– 93% of ad impressions for Axe went to Sports & Entertainment sites


� Sweepstake (direct responses) display ads focused o n reach

– 76% of Bertolli’s impressions delivered on portal sites

– I Can’t Believe It’s Not Butter

focused on these sites:

Portals

Entertainment

Games

Source: comScore Ad Metrix, March 2010; comScore Media Metrix, April 2010



Unilever – Advertiser Spend Comparison Across Media, March 2010

“Rob Master, media director at consumer-product giant Unilever, … says that over the past year Unilever has "significantly increased" spending on social-media, mobile and online ads.”

- Wall Street Journal, April 26, 2010 EditionUpfront Market Looks Primed for an Upswinghttp://online.wsj.com/article/SB10001424052748703441404575206103291659156.html


Offline spend estimates for TV, Radio, Newspaper and Magazine provided by CompetitrackOnline display advertising estimates include static and rich media ads, do not include video, text and other forms of online media

“Online display has become a $17 billion global industry though still small compared to the $171 billion spent worldwide on TV.”

- Think Display with Google, June 1, 2010:http://google-au.blogspot.com/2010/06/think-display-with-google.html








� Conclusion


Improving Digital Creative and Ad Formats

� We now have a variety of ad size and ad formats … som e better than others




Pop-Under 720 x 300, April 2010


The Pushdown 970 x 418 – Top Advertisers, April 2010

Source: comScore Ad Metrix, Apri 2010



� 3 New OPA Ad Formats introduced in July 2009 to:

– Inspire creativity and high-quality advertising

– Provide a greater share of voice for the advertiser

– Introduce a measurement to capture impact

– Enhance interactivity to build user engagement with brandsThe Pushdown, 970 x 418

16© comScore, Inc. Proprietary and Confidential. Source: comScore Ad Metrix, April 2010



The XXL Box, 468 x 648The Fixed Panel, 336 x 860




� Display ads have evolved from static banners to ful ly engaging rich media experiences

Nike’s Staring Battle campaign – rich media ad promoting Nike Pro Football gear that utilizes web cam to allow user to engage in a staring battle against NFL superstar Adrian Peterson

Prius iMedia banner campaign –rich media ad instructing user to


rich media ad instructing user to interact with ad in different ways, which subsequently demonstrates various benefits of the Toyota Prius

Source: comScore Ad Metrix, April 2010



PointRoll Rich Media – Top Advertisers, April 2010


EyeBlaster Rich Media – Top Advertisers, April 2010

Source: comScore Ad Metrix, April 2010








� Conclusion


The Death of the Click

Clicks are easy to measure, but bear little relationship to the actual impact of the campaign on consumers

Click-through rates now average around 0.1%



The Death of the Click

� Advanced metrics to measure effectiveness of online advertising with differing goals (offered by comScore)

– Branding lift

– Online behavior lift (keyword search, site visitation)

– Offline sales impact

– Online sales lift

– Other campaign metrics such as reach, frequency, demographics and GRPs


� Other creative ways to measure campaign performance

– Group buying sites drive offline sales through online advertising– Groupon.com offers pure performance package to local businesses

Performance Marketing Success Story:

Group Buying is growing exponentially…and the money is following

0500

1,0001,5002,0002,5003,0003,5004,000

U.S. Unique Visitors (000)

23© comScore, Inc. Proprietary and Confidential. Source: comScore Media Metrix, April 2010

LIVINGSOCIAL.COM GROUPON.COM

50%

50%

33%

67%

38%

62%

Males

Females

% Composition by Gender

GROUPON.COM LIVINGSOCIAL.COM Total Internet


Display ads help Groupon.com build brand and scale faster

24© comScore, Inc. Proprietary and Confidential. Source: comScore Ad Metrix, April 2009 – April 2010

� Arbitrage – acquire consumers through display advertising and sell to local businesses at higher rate

� Pure performance marketing –online drives offline with more relevant metrics beyond the click


Groupon.com display advertising observations


� Display advertising is favored direct response strategy, over search, for driving traffic to Groupon.com

Source: comScore Marketer

April 2010: 310 million display ad impressions vs. 70,000 paid search clicks








� Conclusion


Advertising Finally Gets Social

The Pushdown, 970 x 418

27© comScore, Inc. Proprietary and Confidential. Source: comScore Ad Metrix, April 2010



28© comScore, Inc. Proprietary and Confidential. comScore Media Metrix, April 2008 – April 2010



“According to the Web-research firm comScore, Facebook flashed more than 176 billion banner ads at users in the first three months of this year — more than any other site.”


� Advertisers follow eyeballs … social networking sites now drive over 25% of all display ad volume (by impressions)

� Despite their incredible volume, average CPM for social networking sites is currently $0.55 –about 5x less than average Internet CPM

Source: comScore Ad Metrix, January 2009 – March 2010



27%

21%

11%

10%

Social Networking

Portals

Entertainment

e-mail

Top Publisher CategoriesShare of Total U.S. Internet Display Ads

$0.55

$2.69

$4.53

$0.89

Cost per Thousand Impressions (CPM)

Social Media CPMs are low compared to other publish er categories


10%

8%

3%

2%

2%

2%

2%

e-mail

News/Information

Sports

Online Gaming

Lifestyles

Business/Finance

Retail

Source: comScore Ad Metrix, March 2010

$0.89

$5.63

$6.35

$2.70

$2.72

$10.41

$2.59

Total Internet CPM = $2.55



� Social value + targeting:Social ads can incorporate social value with strong demographic & psychographic targeting capabilities

� Massive channel:Advertisers need to pay attention to this massive advertising channel

� Focus on right metrics:They need to reevaluate opportunities and focus on the right metrics – view-thru, not click-thru


not click-thru

� Grow publisher CPMs and overall advertising market:As this continues to happen, CPMs will inevitably increase and it will drive continued growth in online advertising

Facebook Ads

Conclusion

� Display advertising is bouncing back:Total display ad impressions have grown 15% since Q1 2009, with increased advertiser expenditures and higher CPMs for publishers

� Reasons for display’s resurgence:

– Traditional advertisers such as Unilever are shifting their media spend towards digital

– Innovative new ad sizes and formats are inspiring creativity, enhancing interactivity and


providing a more voice to the advertiser

– Advanced metrics to measure effectiveness of online advertising are enabling advertisers to successfully evaluate and optimize their campaigns

– Social advertising presents new opportunities as time on social networking sites grows and new advertising capabilities evolve

All insights in today’s webinar provided by comScore Ad Metrix .

Conclusion:

Ad Metrix provides easy access to rich display adver tising insights

User-Friendly:

� Ten Quick Reports to uncover rich new insights on any advertiser, product, or publisher in no time:

– Top sales prospects

– New advertisers

– 6-month advertising trend

… and more!


� Download customizable set of up to 100 creative for advertiser, product, or publisher … and view customized report containing key details and thumbnail images.

Rich Advertising Insights:

� Unmatched Depth & Granularity

� People-Based Measurement

� Single Source for Advertiser & Publisher Intelligence

Source: comScore Ad Metrix

Questions?

� Thank you!

� Feel free to email John Triggs at: [email protected]

� For more information on Ad Metrix, please visit:http://www.comscore.com/Products_Services/Product_Index/Ad_Metrix


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ComScore Ad Metrix - Insights Into Online Display Advertising's Growth