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Who’s Listening? New tools help marketers improve their targeting M 1 SPECIAL ADVERTISING SECTION TO ADWEEK, BRANDWEEK AND MEDIAWEEK By Richard Westlund Research + Audience Marketing

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Who’sListening?

New tools help marketersimprove theirtargeting

M 1

SPECIAL ADVERTISING SECTION TO ADWEEK, BRANDWEEK AND MEDIAWEEK

By Richard Westlund

Research + Audience Marketing

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SPECIAL ADVERTISING SECTION TO ADWEEK, BRANDWEEK AND MEDIAWEEK

To succeed in marketing, youmust know your consumer.In today’s multi-platformmedia world, granularaudience information derived

from research and media measurementtools can provide vital insights andintelligence. Consider the following: • Almost half of Americans over 12 now

have social network profiles, a trendthat is reshaping consumer behaviorand advertising strategies.

• Out of home (OOH) television viewingmay constitute as much as 30 percentof a program’s total audience.

• And, contrary to conventional thinking,morning drive radio audiences actuallyincrease before the top-of-the-hourcommercial break. By providing these types of insights

into audience behavior, research and

measurement companies help marketersshape their media strategies and achievea positive return on marketinginvestments. Today’s research companiesare moving ahead to address changingmedia consumption patterns and meetmarketers’ demands for more insights,more intelligence—and in fact, more ofeverything:• Enhanced audience data with

granularity—the ability to drill down forthose gold nuggets of information.

• Faster reporting on every front,including consumer survey results andlistening and viewing audiences.

• Greater ability to incorporate audiencefindings into their own CRMapplications and other businessprocesses.

• Better understanding of cross-platformaudiences—how digital, TV, radio andprint fit together.“When we survey people to see how

they consume media, the answer is ‘all ofthe above,’ ” says Bill Rose, svp ofmarketing at Arbitron Inc. “As a result,more brands are studying how to presenttheir content across multiple platformsand want to know the net audience of allthe channels.”

The rise in consumer mobility is alsoreshaping media research strategies, justas it changes media planning andplacement. “Theability to consumemedia anywhere hastremendousimplications forcontent providers andadvertisers trying toget their messages topeople,” Rose adds.

Trending nowAs the AdvertisingResearch Foundation (ARF) prepares forits Audience Measurement 5.0Conference this week (June 22-23) inNew York, one of the most importanttopics is the impact of the 2010 U.S.Census.

“The Census results will affect a widedata set for measurements, includingComscore, Arbitron, Nielsen and otherrating services,” says Craig Gugel, svp,media analytics for ARF. Noting that theCensus findings will be rolled out overthe coming months, he adds, “It isalready apparent that minorities arebecoming majorities, and multicultural isbecoming mainstream.”

Privacy is another hot topic that couldsignificantly impact theresearch andmeasurement field ifCongress passesnew legislation.“Trust is the currencyin effectiveadvertising,” saysGugel. “A strict newprivacy law couldupend the marketingworld. The issue is theprocedures in place tokeep personalinformationconfidential. If aconsumer opts in torelease information for abenefit, they are

exercising a choice. But they do not wantto feel watched or monitored, so it’simportant for marketers to be cognizantof their concerns.”

Gugel notes that the ARF’s “listening”initiative may help capture more datafrom consumer surveys. “It’s designed toassociate surveys with other forms ofresearch, such as social media, onlineconversations and Web sites whereconsumers talk about products andservices,” he says. “It’s like treating theWeb as a live, real-time focus group, andthe ARF is seeing how that informationcan be merged with survey research tomake it more robust.”

Other issues include defining anddelivering cross-media audience metrics,determining what is needed for accuracyin determining cross-platform ROI, andlooking at the impact of the iPad and e-

readers on the mediamarketplace.

“We are also looking atdata integration, ascompanies want to mergeaudience research findings

with their own proprietary data,” saysGugel. “We want to see what types ofvalidation are necessary to make certainthe data sets will be robust and usable.”

Worshiping the WebEach year for the past 12 years, Arbitronand Edison Research have studied howpeople use traditional and digital media.This year—for the first time—moreAmericans said

Bill RoseArbitron

On the Media Monitors Web site, clients can replay thecontent that was broadcast and see a graph of peaks anddips in the ratings.

Companies want to merge audience researchfindings with their own proprietary data.”

—Craig Gugel, svp, media analytics, Advertising Research Foundation

the Internet was the “most essential”medium in their lives, according to thestudy, “The Infinite Dial 2010: DigitalPlatforms and the Future of Radio.”

When given a choice of the Web alongwith television, radio and newspapers, 42percent chose the Internet as “mostessential,” with 37 percent selectingtelevision, 14 percent choosing radio and5 percent designating newspapers. Whiletelevision still leads among those overthe age of 45, the Internet dominatesamong people 12 to 44.

“However, what’s really changing is thepipe that brings you video content,” saysLarry Rosin, co-founder and president ofEdison Research. “There are so manyshows available on the Internet that youcould get rid of your TV and still watchyour favorites. I know people who have

cut the cord from cable or satellite TVbecause they watch online.”

Arbitron’s Rose notes that the Internetand TV aren’t the only channels that areblending. “The radio business has takento digital platforms in a major way,including new smartphone apps that letyou listen to your favorite hometown DJor station anywhere you go,” he says.

Despite barriers to in-car listening, 54percent of iPod/MP3 player owners havelistened to their devices in their carstereos, Rose adds. However, nearlyeight in 10 respondents plan to listen toas much traditional AM/FM radio in thefuture as they do now.

Use of social media is rapidly risingamong all age groups, the survey says.The percentage of Americans age 12 andolder who have a profile on one or moresocial networking sites reached 48percent in 2010—double the level fromtwo years ago.

“The use of social networking sites hasexpanded well beyond youngerconsumers,” says Rose.

Ears to the groundIn radio, as in TV, advertisers benefit fromprecise, minute-by-minute audiencemeasurements, according to PhilippeGenerali, president and CEO of MediaMonitors, which uses Arbitron’s PortablePeople Meter™ (PPM™) technology in itsU.S. multimedia research.

“Traditionally, audience measurementshave been active, relying on consumersto report what they watched or heard,”Generali says. “Now, with the PPM,advertisers have a passive source forinformation—a more accurate andtransparent audience measurementsystem.”

For example, Media Monitors cancorrelate audience movements in and outof a program, depending on the content.“One of the findings is that the audienceduring a sports game can be five timesas high as normal,” heexplains. For anadvertiser buying radiospots, that extraaudience could be asignificant added value.

The researchcompany also tracksrepetitive audiencebehavior to identifylistening patterns during

the day. “We found the resilience of anaudience through a commercial breakcan be amazing,” Generali says. “Duringthe morning drive, we found the audiencegets bigger during a commercial break.That occurs because the inflow of newlisteners outpaces the natural churnduring a commercial break. That findingcertainly runs counter to the acceptedwisdom.”

Tracking audience patterns also helpsprogram directors develop strategies forteases and listener contests, Generaliadds. “Thanks to granular datameasurement, we can help design abetter mousetrap to keep the audiencearound.”

Anywhere, anytimeBecause mobile is a new marketingvehicle for many brands, marketers mustpay close attention to those evolvingresearch tools and methodologies.“Getting a handle on the basics of mobileanalytics is a foundational step inmaximizing your return from this fast-growing digital marketing channel,” saysEric Rickson, director of mobile analyticsat Webtrends.

First, Rickson says, brands should lookat the objectives of their mobile mediastrategy—thinking about how customerswill engage in the activities provided by amobile application over time. Readingbreaking news, finding a restaurant,booking a flight, finding a doctor,checking a balance, paying a bill orreporting an auto accident will naturallyhave different frequencies of use, hesays.

In a mobile world—even more than onthe Web—brands need to provide tightrelevant experiences to keep peoplecoming back. “A Web site can offer 1,000different things to a user, but in mobile,you have to focus on just what is relevantto the consumer’s needs,” Rickson says.‘That means providing high-value content

so the audience keeps coming back.”In any case, it is essential to connect

a measurement strategy back to thebrand’s business objectives. “Don’t letvital lessons that took years to learn onthe Web risk being neglected as themobile channel grows in importance.You should be thinking about how tomeasure your mobile channel’seffectiveness now in the context of allyour digital channels.”

Key findings

• More teens and adults have personal profilepages on social media sites: 78 percent ofteens (age 12-17) and 77 percent of youngadults (age 18 to 24), 65 percent of adults age25 to 34 and 51 percent of adults age 35 to 44.

• 62 percent of homes with Internet access havewireless networks, which makes consumptionof digital media easier in any room.

• Growth of residential broadband has leveledoff, as 84 percent of homes with Internetaccess now have broadband connections.

• Texting continues to increase: 45 percent ofmobile phone owners age 12 and older (noupper limit) text multiple times a day. Three-quarters of teens (age 12 to 17) and 76 percentof young adults age 18 to 24 text multiple timesa day, compared with 63 percent of adults age25 to 34, 42 percent of adults age 35 to 44, and37 percent of adults age 45 to 54.

• 48 percent said radio station Web sites havegotten more interesting, compared with 17percent believing them to be worse or lessinteresting. However, monthly visits to radiostation sites (16 percent) among persons 12and older lags visitation to local TV and localnewspaper sites.

SOURCE: Arbitron/Edison Research, April 2010.Philippe GeneraliMedia Monitors

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What’s nextIn 2010, audienceresearch andmeasurement istaking someintriguing newpaths, from do-it-yourself (DIY)surveys tosophisticatedbiometric studies.

“With the advent of online and DIYresearch, the gatekeeping role of themarket research firm is gone forever,”notes Bo Mattsson, CEO of Cint AB, aSwedish software company thatdevelops online research products.

“If companies can do the easier partsof market research themselves, this willcreate room for using more time andresources on the hard-to-reach insightsthat will continue to require specializedexpertise.”

One of the emerging research optionsis the use of biometrics to provideautomated, quantifiable data aboutconsumer responses rather than self-reported information—which enhances

the quality of research results. “Aparticipant would wear a vest that tracksthe body’s biorhythms and reactionswhen programs or commercials comeon,” says Gugel of the ARF. “Becausethis would multiply the data points, itshould be possible to generalize from arelatively small sample.”

In any case, Rosin of Edison Researchbelieves the pace of change in audience

research will continue to increase, just asit has in media consumption. “In the lastfour years alone, we’ve had the rise ofthe iPhone, YouTube and Facebook,which has almost become a new form ofmedia. Even Apple didn’t understandinitially what an app store would look like,let alone become a business in its ownright. Those types of surprises will keephappening in the future.” ■

Larry RosinEdison Research

The DIY channel

All around the world, marketers are conducting consumer surveys online, often using do-it-yourself (DIY) tools. “Typical examples would be product or concept tests containing 10 to 15questions,” says Bo Mattsson, CEO of Cint AB. “Marketers who want a quick assessment on

whether a new product or business idea is viable, find a target group or learn more about thecompetition can do surveys themselves, directly from their desktops.”

Mattsson cites a recent report from ESOMAR, an Amsterdam-based global research organization,that shows about 21 percent of research in the U.S. is now done online. “From our online perspective,we think PR agencies are using research more to gather data and prepare interesting content forcampaigns,” he says.

However, marketers must be careful to avoid mistakes when designing their own surveys. “One ofthe most frequent errors is to presume that the respondents are familiar with the product or service orthe language used in the questionnaire,” he says. “If you want reliable answers, an average consumerneeds to be addressed in a familiar way with a friendly approach.”

All too often, he adds, in-house researchers tend to prompt respondents to give “correct” answers,and the respondents usually comply. “When this happens, there is a risk that the data won’t be reliableand won’t reflect the real product positioning and brand recognition,” he says.

DO IT YOURSELF RESEARCHDO IT YOURSELF RESEARCHNow with direct access to over 3 million panelists in over 40 countries straight from your desktop

Sample

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Best practices for desktop surveysCint Direct Sample gives marketers control from start to finishBy Bo MattssonCEO, Cint AB

DIY research sites such asSurveyGizmo andSurveyPirate arebecoming more andmore sophisticated,but are they a viablealternative to aninsight agency? So

far, discussion around the use of thesesites has not included the voice of theCMO client or research end user. Withthis in mind, Cint undertook a qualitativeresearch study in the U.S., the UK andGermany with end clients andprofessional researchers.

The findings show a high demand andenthusiasm for DIY tools among clients—for many, it is seen as a “no brainer,”given the current business environment.They expressed a feeling of liberation inthe discovery that they could access theviews of their clients and customers sodirectly and easily. Comments rangedfrom “the sky’s the limit” to “we now doabout 50% of our research ourselves—achange over the last two years.”

But in spite of this enthusiasm, clientsalso have realistic concerns about howbest to use these tools. “The danger isthat you might not be asking the rightquestions,” commented one. “You couldrisk annoying and alienating people whoyou are asking the questions—if youasked stupid questions,” said another.

Clients also understand and share thesame concerns about panel quality asresearchers: “In my experience, having asmart pool of people answering yourquestions is key,” said one. This issuehas now been addressed with the launchof Cint Direct Sample which providesusers with access to a quality sample ofmore than 3 million individuals in over 40countries. Control of the whole project—from questionnaire through to fieldworkand analysis—can be in the user’s hands.

As one researcher in a large U.S.-basedagency said: “This opens up lots of newpossibilities.”

According to the study, the limits ofsurvey tools are understood, but their use is growing in frequency. “We useSurveyMonkey for all the easy thingswhen we have our own sample and if it’squick and dirty and we need to build asurvey in a day and get results back in aweek,” commented one. The clients thatCint interviewed did not think they couldor should do complex research bythemselves. They did indeed worry aboutasking the right questions, getting theright sample and understanding theresults. Most saw a clear role forprofessional researchers to help withthese issues.

Guidelines for DIY researchAs with any other area of business,clients recognize when they need helpand do not automatically assume thatthey are research experts. Here are someguidelines for how to approach DIYresearch projects:• Set a clear hypothesis and know

exactly what you want to do with the information you seek

• K.I.S.S. x2 (keep it simple, keep it short)

• Use a site that adheres to industrystandards/guidelines

• Get your sample right and check thequality of your sample

• Work out exactly how you want yourdata delivered and get it delivered inthe way you want

• Don’t rush your analysis and thinking• Know when to get advice from a

professionalThe potential for a bad research

experience always exists, whether usingDIY or an agency. Clients are not goingto abandon market research if they get a“bad” survey, through whatever means.They know their business; they are ableto make rational decisions andunderstand when they need help.

What DIY should create is moreopportunities to conduct research andmake the process more affordable andaccessible. This will widen theboundaries and arguably lead to betterexposure to market research and itsvalue. It does appear, then, that as DIYtools get better, including the use of CintDirect Sample, the support and take-upwill continue to build.

Bo Mattsson is founder and CEO of Cint,a privately owned software company thatdevelops online research products. Tolearn more, visit www.cint.com

Marketers now have access to more online research tools than ever before.

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This summer, Arbitron is unveilingits next generation in electronicaudience measurementtechnology, extending its currentaudience measurement software toa wireless mobile communicationsplatform.

This innovative approach furtherliberates audience measurementfrom the home and enables media,marketers and brands to follow themobile consumer more closely—acapability particularly important forbrands appealing to youngerdemographics.

Moving Toward EmergingMobile PlatformsBy enhancing its Portable PeopleMeter™ (PPMTM) electronicmeasurement technology with anew meter that has cellularcommunications capabilities,Arbitron is creating a new path forthe application to operate acrossemerging mobile platforms such assmartphones and netbooks.

“We’re committed to continuouslyimproving our services, and the newmeter is also more user-friendly andpractical for our panelists,” says TaymoorArshi, svp, engineering and chieftechnology officer. “And we gave thedevice a sleeker look and added a textscreen.”

Arbitron’s current PPM service gathersaudience information from a panel ofconsumers in the largest U.S. markets.These consumers carry the company’scurrent meter, which detects anembedded audio code in radio andtelevision broadcasts, as well as cinemaadvertising and many types of place-based electronic media. By the end of2010, Arbitron plans to be gatheringaudience information from approximately70,000 consumers in 48 markets.

“Because of its unique mobility and

versatility, the PPM technology hasalready provided valuable insights forbrands and marketers—and we expecteven more from this next generation ofthe PPM platform,” says Pierre Bouvard,evp of cross-platform services.

On-the-Go AudiencesBouvard notes that the current PPMtechnology can measure audiences forout-of-home (OOH) TV viewing: watchinga sports program at a friend’s home,viewing a news network in an airport orseeing a health show at the gym.

“From a marketer’s standpoint, everyimpression counts, and with theadvanced PPM technology, we anticipatethe ability to get an even more completepicture of media consumption, regardlessof where it occurs,” Bouvard explains.

The new PPM technology is expected

to also accelerate Arbitron’s cross-platform reporting capabilities—animportant factor for brands seekingto link social media and Web sitetraffic with radio, TV and cableaudiences.

Multitasking Audiences“While it’s certainly important toknow how many viewers listened toand watched an NBA championshipgame, being able to measuresimultaneous use of online sportsand other Web sites brings a new

dimension to audienceresearch,” Bouvard adds.

A recent cross-platformstudy by Arbitron and itsresearch partnersconducted for NBCUniversal on the 2010Winter Olympics showedthat consumers whofollowed the games ontelevision and online spentmuch more time on bothplatforms.

“Simultaneous use of Olympics onboth TV and at NBC’s Olympics Web sitewas frequent. This suggests that a cross-platform strategy can allow an advertiserto tap into a show’s fan base, multiplyingthe overall impact,” concludes Bouvard.

A long-time leader in audienceresearch technology, Arbitron isdedicated to finding innovative andefficient ways to collect audience data.As Arshi puts it, “By compressing thetime between data collection, analysisand reporting, we are working towardbeing able to provide vital audience datain near real time, helping our clientsdevelop effective media strategies andboost their marketing returns.”

Arbitron Inc. (NYSE: ARB) is a leadingmedia and marketing research firm. Formore information, visit www.arbitron.com

Media measurement on the moveArbitron advances electronic audience measurement—again

Arbitron's latest advancement isdesigned to more easily follow today’sconsumers and provide a morecomplete picture of their mediaconsumption.

PPM ratings are based on audience estimates and are the opinion of Arbitron and should not berelied on for precise accuracy or precise representativeness of a demographic or radio market.

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Strategies for measuring mobile investmentWebtrends launches smartphone analytics solutionToday, many brands are racing to investin the mobile channel without a clearstrategy. As a result, they are finding itdifficult to determine if their marketingand advertising dollars are paying off.

“Given the amount of focus andincreasing share of budgets being spenton mobile, I am surprised at how littlestrategy appears to sit behind theseinvestments,” says Eric Rickson, directorof mobile analytics at Webtrends, aleading enterprise customer intelligencecompany based in Portland, Ore. “Afterall, having clear goals and objectives isthe first step in being able to quantifyyour results, especially with a cross-channel digital strategy.”

Many marketers are facing top-downpressure from the C-suite to connectwith smartphone users throughdownloadable applications, as well astext, video and mobile Web campaigns.Meanwhile, there’s a bottom-up drivefrom developers to create “cool” newapps that may achieve novelty but fail toprovide an ongoing value to users.

“Those forces are pushing marketers to get a smartphone app to marketwithout thinking about the audience, the strategy or the right set of mobiletactics,” says Rickson. “And there are as many ways to reach a consumerthrough the mobile device as in thedigital channel. Many brands have notyet determined how to include mobile in a cross-channel strategy.”

Webtrends, which helped establish theweb analytics industry in 1993, recentlylaunched its mobile analytics solution tohelp clients understand and increase thevalue from their mobile sites and apps.That process starts with asking the rightquestions: Is this the right audience forthe app? Will consumers use it overtime? From the brand’s perspective, willconsumers use it for high-valueactivities?

“If you are in the planning phase, thinkabout the characteristics of the audienceyou are trying to reach and what you candistinctively offer them in an app,” hesays. “If you have an app already in the

market, think abouthow you offer activitieswithin that app togenerate revenue,provide cost savings or increase brand

engagement. The results should also be mapped to reflect the audience’sinteraction with these activities.”

For example, Fandango, an onlinemovie ticket service, developed an appthat provides movie and theaterinformation and allows consumers to buy tickets from a mobile phone. As aresult, about 20 percent of the company’sadvance movie sales on weekends isnow coming from the mobile channel,according to Rickson.

“Taking app measurement to this level is a critical step in being able todemonstrate the business value you aregetting from your app investments,” heexplains. “Simply relying on the numberof downloads to demonstrate success ofan app does not provide the right metricfor marketers seeking to improve thechannel’s return on investment.”

To determine user engagement andloyalty, for example, Webtrends canmeasure frequency of visits (using theapp), depth of visit (number of screensviewed) and duration (time spent in the app).

“The canvas in the mobile world is stillsmall so you want to make that realestate as interesting and useful to youraudience as possible,” Rickson adds. “If it isn’t useful, people won’t use it.”

In the ecosystem of user touch points,Webtrends focuses on the destinations.“Within the mobile space, we provideinsight into how brands are attractingconsumers to their Web sites and nativeapps such as those for the iPhone,BlackBerry and Android,” he explains.“That allows our clients to determine if they are achieving their original goalsand answering the question: How did myinvestment in mobile pay off in relation tomy total digital spend?”

Webtrends helps organizations realizea competitive advantage by providinginsight-driven optimization of their digitalchannels, including Web sites, socialmedia and paid-search advertising.Companies like 3M, Microsoft, Toyota,The Coca-Cola Company, The New YorkTimes and General Mills rely onWebtrends’ technology, consultingservices and industry expertise, including measurement, optimization and integration of all digital content andcustomer intelligence.

For more information, visitwww.webtrends.com/mobile

Will consumers use your app for activities that benefit your brand? Webtrends’new mobile analytics solution can help answer that question.

Eric Rickson