1. Digital ScarcityReversing the curse of the unlimited
impressions economyOMMA Display Europe, 17 September, 2012Kirby
Winfield, SVP, comScore
2. price is regulated by the proportion between thequantity
brought to market, and the demandof those who are willing to pay-
Adam Smith The Wealth of Nations, 1776 2
5. Demand SupplyPrice When supply is constrained, price is
extremely sensitive to demand.CPM Impressions Quantity 5
6. with more marketing dollars comingonline, CPM will go up,
right?
7. The supply and demand model has two requirements: Supply
& Demand are Independent Supply is Resource Constrained
8. Media Market ExamplesAd Medium: USA Network TVConstraint: 32
spots per hour, 5 hours per viewer = 160 spots Scarcity: Ad
Pricing: Increasing 8
9. Media Market ExamplesAd Medium: Inventory sold through
Display Exchanges Constraint: None! Cost are negligible, ad space
is virtually unlimited. Scarcity: Ad Pricing: Declining 9
10. If demand increases, Demand but supply is unconstrained
Price DoesPrice NOT Increase!CPM Supply Impressions Quantity
10
11. The Problem unlimited servedCountingimpressions hurts
advertisingeconomics.The SolutionIntroduce Digital Scarcity to the
system.
12. Achieving Digital ScarcityOnly count impressions that
reached a real userand had a chance to make a real impact. were
in-view delivered in the target geography displayed in a brand safe
environment not fraudulent 12
13. vCE Charter
Study18campaigns380,898sites1,772,117,123impressions Allstate
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14. comScore vCE charter study results in-view rates across top
500 publishers Sites 7 % in-view 100% in-view 69% in-view ? ? ?
best average worst On average 69% of ads were in-view, meaning 3
out of 10 were never seen. 14 source: comScore vCE charter
study
15. The Above-the-Fold Myth?Above-the-fold in-view rates ranged
from 48% to 100% source: comScore vCE charter study
16. Some Below-the-Fold ads areactually premium
inventory.Below-the-fold in-view ranged from 3% to 67%. source:
comScore vCE charter study
17. impressions CPM % served $5 100% = $5 nominal
CPMimpressions CPM % viewed1,000 $5 75% = $6.67 effective CPM If
only 75% of ads were seen the Effective CPM is 33% higher! 17
18. The Viewable-Impression-Guarantee Model:Publisher
EconomicsValidate Value | If impression viewability isguaranteed,
publishers can sell currentnon-premium inventory at premium
prices.Sell More | Publisher is able to sell 15% moreguaranteed
viewability premium impressions than theycurrently sell in gross
premium impressions. 18
19. Conclusions Moving from served to validated impressions
introduces scarcity and drives attractive economics:1. Above/below
the fold placement becomes irrelevant.2. Most validated non-premium
inventory becomes premium. 19
20. Thank You!Continue the
Conversation:Twitter@[email protected]/comScoreInc
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