Nielsen Online Campaign Ratings Audience Reach, Frequency and GRPs for Online Ad Campaigns
Charles Buchwalter, SVP, Nielsen Online Campaign Ratings
Mark Kalus, Director, Product Management, Nielsen Online Campaign Ratings
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Nielsen Online Campaign Ratings
Discussion topics
• Online media: “The best of worlds and the worst of worlds”– Online as the “media darling”…online’s share of total ad spend
continues to grow– But CPMs and click-through rates are declining and leading brand
advertisers question if online can nurture their brands– “The most measureable medium” has some shortcomings
• Desperately seeking true cross-media metrics
• Introducing Nielsen Online Campaign Ratings– The strengths and weaknesses of panels in the online space– Collaborating with the industry’s largest registered user databases– Comparing online to traditional media with consistent metrics
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Nielsen Online Campaign Ratings
Online advertising continues impressive growth trajectory
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Nielsen Online Campaign Ratings
In 2010, Internet ad spend surpassed newspaper, after passing cable
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Nielsen Online Campaign Ratings
May 24, 2011
But why have the big ad-spending industries been slow to join the party?
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Nielsen Online Campaign Ratings
The unmeasured 99.9%“An unmeasured medium is an inherently undervalued medium.”
– Arthur C. Nielsen
Brand advertisers are left asking
‘Who saw my ad?’
Today, impressions and clicks are de facto currency for online media. But less than 1 in 1000 click on online ads.
Impressions measure machines, not people.
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Nielsen Online Campaign Ratings
Industry associations are grappling with online media’s metric challenge
• Leading advertising trade groups working together to develop digital metrics and cross platform measurement solutions
• Looking to drive better marketing and media management decisions
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Nielsen Online Campaign Ratings
Reach: What is my true audience?
Brand advertisers rely on audience demographics to
plan and evaluate their marketing/media
investments
Effectiveness starts with going beyond impressions to
understand how your campaign delivered against
the target audience
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Notes:
• Audience metrics for online ad campaigns are lacking
• Panels historically have been the method to measure audiences, but the fragmentation of the web has rendered panel measurement inadequate for tracking and measuring online advertising campaigns
Nielsen Online Campaign Ratings
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Nielsen Online Campaign Ratings
Challenges in online measurement
• Audience measurement metrics needed:
• Accurate reach and frequency
• Measure people, not machines
• Unbiased, consistent measurement
• Comparability with other media
• Impressions are a weak measurement
• Measures only volume, not audience
• Not comparable to other media
• Creates discrepancies between Buy and Sell
• Does not tie back to planning criteria
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Nielsen Online Campaign Ratings
Current measurement approaches fall short
Traditional Panel Approaches
Sample Coverage
Low single digits (<2-3%)
ScalabilityRequires large campaign size
Delivery
Usually post-campaign due to
small sample coverage
Comparability
Only Nielsen has direct integration with “currency”
data
Ad Servers
Demo Reporting
Demographic reporting
does not exist
Unique Audience Counts
Third-party cookies are prone to error
ComparabilityNot comparable
to other media
Cookie-Based Ascription
Sample Coverage
Not verifiable
Primary Data Source
Extrapolations and modeled
data
Unique Audience Counts
Third-party cookies
prone to error
ComparabilityNot comparable to other media
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Nielsen Online Campaign Ratings
Nielsen approach to advertising effectiveness
WHO DID MY CAMPAIGN REACH?
WHAT IMPACT DID IT HAVE ON MY
BRAND?
WHAT DID IT MOTIVATE THEM TO DO?
Nielsen Online Campaign Ratings
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Nielsen Online Campaign Ratings
What is Nielsen Online Campaign Ratings?
Provides a new, highly accurate method to identify and measure audiences exposed to online ad campaigns
Accurately identifies the audience via actual registered user demographics from data providers
Evaluates unique reach and frequency across campaigns, and within each publisher
Gross Rating Points (GRPs) outputs for ad campaigns are comparable to Nielsen TV Ratings
30-50%sample coverage
for actual user demographics
Nielsen Online Campaign Ratings User Interface
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Nielsen Online Campaign Ratings
How it works
Data Provider: A registration web site that has agreed to share a demographic sample with Nielsen to aid in measurement.
Panel Calibration Factors: Factors from the Nielsen Cross-Platform panel used to calibrate and correct for bias in the Data Provider sample.
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Notes (1):
• This diagram shows how the Nielsen Online Campaign Ratings platform measures an ad campaign using 3 streams of data: (1) server level counts, (2) a sample of actual user demos from our data provider, and (3) a calibration sample from the high-quality Nielsen panel.
• Facebook is our first data provider, but over time Nielsen will add additional premium web publishers to act as data providers.
• Starting in the top left corner, all ad units in the campaign are tagged with the Nielsen pixel tag
Nielsen Online Campaign Ratings
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Notes (2):
• The ad renders in the user’s browser, and the tag fires first to Nielsen servers, where a census level count of impressions occurs.
• Next, Nielsen servers return a command to the user’s browser re-directing it to the data provider (i.e. Facebook). This is an encrypted “ping” masking the source of website where the ad appears, and encrypting in the information in the tag itself. If the machine has a logged-in cookie from the data provider, the data provider can assign an age and gender to the impression.
Nielsen Online Campaign Ratings
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Notes (3):
• So the data provider continues to log impressions throughout the day, matching demographics when possible. The next step is for the Data Provider to run a set of Nielsen Correction rules on the user level data, which is based on learnings from prior matches to Nielsen panel. This enables incorrect information in the registration data to be corrected before inclusion in the measurement.
• Finally the data provider summarizes the data into aggregated, de-identified summary files, and sends to Nielsen.
Nielsen Online Campaign Ratings
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Notes (4):
• Nielsen combines the sample from the Data Provider with the overall census impressions count. Typically the Data Provider sample covers 30-50% of a campaign’s impressions.
• To project to the full audience, Nielsen calibration factors are used to correct for bias in the Data Provider sample.
Nielsen Online Campaign Ratings
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Nielsen Online Campaign Ratings
Sample audience report Women’s Personal Care Product
Campaign Target: Females 18-34
23% of delivery reached the
target audience
51% of audience was Male
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Notes:
• This is an example of the standard Audience Report.
• This report is from an actual campaign in our beta program for a CPG product intended for women age 18-34.
• The report shows that 23% of the impressions delivered reached the intended audience.
• Over half of the campaign impressions were delivered to Men.
Nielsen Online Campaign Ratings
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Nielsen Online Campaign Ratings
Key benefits of this approach
Accountability: Verify the audience delivered matches intended audience
Insights for Planning: Understand the true audience composition and size, both in-flight and post-campaign
Comparability: A consistent set of metrics to measure audiences across Online & TV
Automation: Reports updated daily via a robust platform capable of measuring billions of impressions per day
Specificity: Measure any size campaign, running on any size website, for any duration
Privacy: Leverages aggregated user counts, with no individual-level measurement. Users can opt out via Nielsen.
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Nielsen Online Campaign Ratings
• Methodology/technology validation • Client trials • Benchmarking
Objectives
• High sample coverage (42% on average)
• Test campaigns/publishers exhibited varying levels of success in delivering target audiences
• Average frequencies varied widely across demographic groups
Learnings
The combination of sites across many campaigns resulted in hundreds of individual campaign * site observations for this analysis.
Total Non-Facebook campaign = ~40
Beta program
• 25+ advertisers• 150+ publishers• 80+ campaigns
Key Statistics
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Nielsen Online Campaign Ratings
• Finding: Individual sites within a single campaign often delivered the target audience with differing degrees of precision • In the example campaign below, the overall campaign % On-Target was 32%,
with individual sites as high as 60% and as low as 18%
Key finding from beta test: Dramatic variability in reaching target audiences
Target Audience:
Males 25-49
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Nielsen Online Campaign Ratings
Nielsen approach to advertising effectiveness
WHO DID MY CAMPAIGN REACH?
WHAT IMPACT DID IT HAVE ON MY
BRAND?
WHAT DID IT MOTIVATE THEM TO DO?
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Nielsen Online Campaign Ratings
Resonance: Nielsen Online Brand Effect
• Nielsen Online Brand Effect measures attitudinal impact of online ads via polls on Facebook• Leverages the same tag employed for Nielsen Online Campaign Ratings• Shared measurement platform results in synchronized demos for Nielsen Online Brand Effect
and Nielsen Online Campaign Ratings
• Fast, high quality metrics• Consistent with Nielsen Online Campaign Ratings
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Notes:
• Brand Effect is a second solution from Nielsen that leverages a partnership with Facebook.
• This product measures ad campaign resonance via surveys delivered on the Facebook platform.
• This product shares a common tag with OCR.
Nielsen Online Campaign Ratings
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Nielsen Online Campaign Ratings
National Media Consumption• National Television Panel• National Internet Panel• Cable Set Top Box Data
Direct Match (online publishers, mobile, etc)
Actual Consumption of Goods• National Data Set (+60MM HHs)• Homescan Multi-Outlet Panel
What people WATCH What people BUY
Anonymously linking consumers’ television, online and mobilemedia usage with actual household purchase behavior
Anonymously linking consumers’ television, online and mobilemedia usage with actual household purchase behavior
Anonymous Single Source
Database
Anonymous Single Source
Database
Reaction: Nielsen Catalina Solutions
Digital
TV
FSD
Homescan
Result: robust data, projectable to the US population’s Watch and Buy behaviors
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Nielsen Online Campaign Ratings
Key Takeaways
• Advertisers need to look beyond the standard metrics to evaluate the impact of their online media campaigns
• Nielsen Online Campaign Ratings delivers enhanced accountability to the online advertising space
• Combines the breadth of registered user data from leading data publishers with Nielsen’s cross platform panel and measurement science expertise to produce reach, frequency and GRP insights for banner, rich media and video campaigns
• Advertisers can understand true audience composition and size, both in-flight and post-campaign
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Nielsen Online Campaign Ratings
Today’s presenters
Charles Buchwalter Senior Vice President, Nielsen Online Campaign Ratings
Mark Kalus Director, Product Management, Nielsen Online Campaign Ratings
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Notes (1):
• Charlie Buchwalter has a 30-year career in the information services industry, spending the last 12 years helping leading advertisers, agencies and publishers understand online media and marketing trends.
• Charlie is overseeing the go-to-market plans for Nielsen Online Campaign Ratings which was developed to provide the online media industry with a new and highly accurate method to identify and measure the audiences exposed to online ad campaigns.
• Previously, Charlie served as Chairman/CEO of our online business in Japan, a joint venture with TransCosmos and Dentsu. Before that Charlie oversaw the Research & Analytics function for Nielsen Online in the U.S. where his team advanced our online thought leadership and custom analytics capabilities.
• Charles started his career with DRI/McGraw-Hill where he served as Vice President of the financial information group managing DRI's national financial services practice. After DRI, he joined CMP Publications (now CMP Media) where he worked with the management team to conceive and implement electronic publishing strategies. At ParaMarketing, He helped leading companies respond to Internet market developments; he assisted in the development of go-to-market channel strategies for the Internet business units of IBM, Digital Equipment, Novell, Oracle and Sun Microsystems.
• Charlie holds a M.S. in Natural Resource Economics from the University of California, Berkeley, and a B.S. in Economics from University of Washington.
Nielsen Online Campaign Ratings
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Notes (2):
• Mark Kalus has led product development for Nielsen Online Campaign Ratings since just prior to the announcement of the initiative in September 2010. Nielsen Online Campaign Ratings is being developed to provide the online media industry with a new and highly accurate method to identify and measure the audiences exposed to online ad campaigns. The key innovation of the product is the inclusion of demographic data from leading web publishers.
• Mark has 10+ years experience in a variety of product and analytics roles in the advertising and media space. Before joining Nielsen, Mark led the advertising product group for ad technology start-up HookLogic in New York. Prior to that he worked for digital ad agency Mediacom/Beyond Interactive, in the development of a comprehensive web-based reporting platform for online media analytics. Mark began his career in traditional media research at Gannett Co.
• Mark holds an M.B.A from New York University, Stern School of Business; and a B.S. in Marketing from Xavier University.
Nielsen Online Campaign Ratings
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Nielsen Online Campaign Ratings
Q&A
Thank you for attending.
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Phone: 800-553-3727 email: [email protected]
OR if you have any questions regarding the content of this webinar, you can also contact:
Charles Buchwalter, email: [email protected]