Professional Documents
Culture Documents
Online Brand
Measurement:
Connecting the Dots
Geoffrey Ramsey,
CEO & Co-Founder
geoff@emarketer.com Special Report
In 2009, US advertisers will spend $4.7 billion on We encourage you to view this special report online
display ads, and another $3.1 billion on other at www.emarketer.com/brandmeasurement for
branding-oriented ads, including rich media and access to videos, in-depth interviews and full
video. But are they getting their money’s worth? survey results (courtesy of InsightExpress). On the
Does online brand measurement even work? Do report Website, you can also join the conversation
marketers have the metrics they need to connect on this important topic by contributing comments.
the dots—both within online platforms and
between online and offline media?
Measurement means different things to different This report was made possible by contributions from many
individuals, who offered their time, expertise and razor-sharp
people—but most can agree that in business,
thinking on an incredibly complicated topic, including many of my
measurement is vital to long-term success. hard-working colleagues at eMarketer. In particular, I want to thank
senior analyst David Hallerman, who shored up my original draft
I’ll never forget my first experience with measurement. When I with much-needed improvements; writer/editor Tobi Elkin, who
was 12 years old, my family moved to the UK, exposing me to a conducted more than two dozen high-level interviews; and Evelyn
new school system and a decidedly different way of measuring Majewski, who analyzed and provided a contextual summary of
student performance. Instead of the generalized feedback I was the InsightExpress poll of industry professionals.
used to in Michigan, such as “needs to try harder,” the UK students
I am also grateful for the commitment and friendship of the
were ranked from 1 through n (where n = however-many-
industry leaders who agreed to be interviewed or come into
students-were-in-the-class). Granted, it was a blunt measure. And
our offices for video sessions. I offer special thanks to David
at the end of the first marking period, I was ranked last in every
Smith of Mediasmith, a legend in online measurement, who
single subject, from Latin to mathematics. Ouch.
acted as a sounding board and sanity check for many of my
Remarkably, though, this measurement system had a profound points and conclusions.
effect on me. I started paying attention in class and generally
The process of writing this report was like absorbing the
worked like a dog. By the end of the last marking period, my rank
collective consciousness of the online ad industry, and it
had elevated to No. 1 or No. 2 in each class.
convinced me to change my views on a number of key issues. I
Could the online advertising industry benefit from a similar hope it opens your mind to some new ideas and provides a forum
transformation if better brand measurement systems were put in for the industry to move forward on this important subject of
place? Does the industry have the right metrics to be able to online brand measurement.
connect the dots—both within online platforms and between online
Please take the time to share your comments and thoughts.
and offline media? That’s what this report was designed to uncover.
Collectively, we can begin to connect the dots—and maybe we
Online brand measurement has been on my mind for some time can move to an 8 or 9 out of 10 sooner rather than later.
now. After moderating industry panels with session titles such as
Geoffrey Ramsey
“Fixing the Measurement Mess” or “Is Data Friend or Enemy?” it
CEO, Co-Founder, eMarketer
became clear that we had some major challenges to overcome.
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Online Brand Measurement: Special Report 2
Letter from Our Sponsor,
Datran Media
When I first heard that eMarketer was publishing Unfortunately the industry is still stuck in a rut over counting
methodologies. Yet at the end of the day, the only figures that
a study dedicated to online measurement, I got
typically matter come from an advertiser’s third party ad server, as
excited, because I felt that the timing couldn’t this is what determines the money actually spent on advertising.
be any better. Until the debate switches from unique user counting to the
accuracy and quality of data about the individuals exposed to and
We are witnessing a very interesting period in the industry where interacting with the ad campaign, we will be holding back the
advertisers are no longer simply buying media on Web sites to potential of the industry. Not to say that the number of monthly
reach a particular audience, but instead are actually targeting visitors isn’t at all relevant to publishers or advertisers, but let’s put
users. The explosion of exchanges and behavioral data targeting that challenge into perspective and focus resources on moving
has suddenly made the term “remnant” important and sexy. Let’s the market forward with the type of audience measurement that
face it, this is not a just a trend, but rather a clear movement today’s marketer truly needs.
towards leveraging the plethora of data that differentiates the I trust that this timely report will give us all a lot of food for thought
Internet from any other form of media. Even when advertisers buy and we are delighted to be sponsoring it. No one knows exactly
from an individual site, they are now expecting to target specific what measurement will consist of in five years, but I guarantee it
users with relevant demographics or behavior. Although this will evolve greatly from what exists today. This study should
appears to be a subtle switch, it actually has a profound effect on provide us with not only the current challenges, but also a hint of
the industry, especially when it comes to measurement. Think things to come. Enjoy the report and let the debates begin!
about it. The measurement tools that exist on the Web today were
created to address the desire to determine the most popular sites Sincerely,
by attempting to count the number of unique visits to individual Scott C. Knoll
sites on a monthly basis. These tools were not really developed to SVP Display and GM Aperture Product Group, Datran Media
provide valid insights into the user behind the browser.
®
Online Brand Measurement: Special Report 3
ADVERTISEMENT
Telling You about Your Audience Most research sample sizes are statistically insignificant
Audiences need to be measured at the campaign and
creative level, not just site level
Source: Datran Media, “Third Annual Marketing & Media Survey,” January 2009
Adult Age (all) Sampling Percent 62%
The methodologies that most media is measured by today are 86-99 yrs
over 70 years old! Panel-based research was initially developed to 76-85 yrs
help radio advertisers understand how many listeners were
66-75 yrs
exposed to their campaign. Ironically, not much has changed in
the world of media measurement. Although in recent years, 56-65 yrs
ISP-based measurement has made some attempts to improve the 46-55 yrs
Clearly, online advertisers need deeper insights into who they're Aperture measures
26-35 yrs
reaching. In today’s competitive atmosphere, where targeting household- level 18-25 yrs
very specific audiences is increasingly important, the old-world demographics across the entire 0 2 4 6 8 10 12 14 16 18 20
media chain – from impressions
methodologies are becoming less relevant.
to clicks to conversions.
Do you currently leverage audience analytics? (% of respondents) Aperture answers the questions every digital
marketer is asking:
Yes 76%
Am I reaching the right audience?
No 26% Who is responding to my campaign?
Source: Datran Media, “Third Annual Marketing & Media Survey,” January 2009 Should I be targeting new audiences?
To understand who your audience truly is, you need a reporting tool
With more and more marketers relying on analytics to shape their that is designed for the 21st century digital marketer. To learn more
campaigns, new tools are being developed for today’s online about Aperture, please visit datranmedia.com/insight
advertiser, as evidenced by the recent launch of Datran Media’s
Aperture. Aperture is the first and only audience reporting tool
that delivers consumer profiles across all digital media, based on
third-party verified household-level data. Anonymously combining
verified offline data with the online activity of over 100 million
consumers, this rich data provides unprecedented insights into
the audience that is exposed to, has responded to, and is
converting on an advertiser’s campaign. A Datran Media Solution
Table of Contents
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Online Brand Measurement: Special Report 5
Background: Factors that
Contribute to the Measurement
Issue Putting Measurement into Perspective
In April 2009, eMarketer used online survey company
US advertisers will spend $4.7 billion on display InsightExpress to poll 37 high-level, highly knowledgeable
marketing professionals with expertise in the field of media
ads in 2009, and another $3.1 billion on other measurement. The purpose was to gauge their opinions on the
branding-oriented ads, including rich media and state of online brand measurement.
video. But are they getting their money’s worth? To get a level set on the degree to which measurement is seen
Do they have the right metrics, and are they able as a significant barrier to the growth of online advertising, the
respondents were asked whether they agreed with the
to connect the dots, both within online platforms following statement:
and between online and offline media? Is online
“Other than the economy, brand measurement is the
brand measurement even a problem that needs single biggest obstacle holding back the growth of
to be fixed? online advertising.”
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Online Brand Measurement: Special Report 6
Background: Factors that Contribute to the Measurement Issue
Obstacle: Lack of creativity If there is any solace, it’s in the slight improvement over the years.
■ “A lack of CMO and marketing creative focus on online efforts,
When asked how they would have rated online measurement five
and true measurement of buying influences.” years ago, a whopping 78% of respondents said they would have
rated it a 4 or lower, with nearly one-third (29.7%) rating it a
■ “Brand measurement is certainly one area that needs to pathetic 2.
improve, but also improved creative and CMOs’ understanding
of the platform are also a priority.” US Marketing Executives' Ratings* of the State of
Online Advertising Measurement Five Years Ago, April
2009 (% of respondents)
Obstacle: Lack of understanding about how
10 0.0%
digital works
9 0.0%
■ “Understanding how online fits in with other media.”
8 0.0%
■ “Vision, imagination, ideas, experience. We are still in an early
7 0.0%
stage of adoption for many companies, where many marketers
6 8.1%
just don’t have the bandwidth or experience to make digital
work, let alone sync with the rest of their marketing programs.” 5 13.5%
4 24.3%
■ “The problem is subjective, not quantitative: It is about
3 18.9%
experience with the medium and belief in its virtues.”
2 29.7%
To further quantify where the online ad industry is with
1 5.4%
measurement today, the InsightExpress poll also asked
respondents to rate the measurement issue on a continuum from Note: n=37; numbers may not add up to 100% due to rounding; *on a scale
of 1-10, where 1="We are in the Dark Ages" and 10="We've got this thing
1 to 10, where 1 is “We are in the Dark Ages,” and 10 is “We’ve got totally figured out"
Source: eMarketer, "Online Brand Measurement Survey" conducted by
this thing totally figured out.” Not a single one of the 37 InsightExpress, June 2009
respondents rated online ad measurement a 9 or 10. Only 16.2% 104492 www.eMarketer.com
one-half rated it at least a 6. Looking to the future, respondents gave the industry an average of
three to five years before online measurement would attain a
The bottom line: A slight majority (51.3%) believed online
score of 8 or above.
measurement is at a grade of 5 or below. Clearly, the interactive ad
industry has a problem on its hands.
In One Word, Describe Online Measurement
US Marketing Executives' Ratings* of the State of Today
Online Advertising Measurement, April 2009 (% of
respondents) In the informal poll eMarketer conducted among industry
10 0.0% insiders, we asked them, “What single word or phrase
would you use to describe the current state of online
9 0.0%
advertising measurement?” The answers were telling—
8 2.7%
strongly reinforcing the idea that the online ad industry
7 13.5% has a long road ahead.
6 32.4%
5 18.9%
4 13.5%
3 16.2%
2 2.7%
1 0.0%
Note: n=37; numbers may not add up to 100% due to rounding; *on a scale
of 1-10, where 1="We are in the Dark Ages" and 10="We've got this thing
totally figured out"
Source: eMarketer, "Online Brand Measurement Survey" conducted by
InsightExpress, June 2009
104488 www.eMarketer.com
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Online Brand Measurement: Special Report 7
Background: Factors that Contribute to the Measurement Issue
The Accountability Factor A study by Heidrick & Struggles of 111 US senior executives found
Even before the recession, marketers were under tremendous that return on marketing investment was the highest-ranked
pressure to better account for their advertising outlays. The marketing tactic in terms of importance to the company’s growth
downturn only reinforced and accelerated the need to set specific objectives, rating a 4.05 on a scale of 1 to 5. Notably, online display
marketing goals and carefully measure results from ad campaigns. ads were way down on the priority list, rating a paltry 2.86 out of 5.
Executives’ satisfaction with online display ads was similarly poor,
“Marketers have been challenged to be more accountable by at 3.07. However, satisfaction levels with social networking tools
CEOs who are looking for shareholder return and value,” said Bob (2.75) and video ads (2.65) were far worse.
Liodice, the president and CEO of the Association of National
Advertisers, in an interview with eMarketer. “The challenge for Satisfaction Level of US* Senior Executives Regarding
marketing is: ‘Prove to me that marketing works. Prove to me that Their Company's Effectiveness at Developing Select
Marketing Tactics, November-December 2008 (scale of 1-5**)
no matter how you slice it, the investments are paying back in
Publishing tools–Webinars
both short- and long-term deliverables.’”
3.96
Many studies underscore the accountability mandate for Research and analysis–online surveys
3.25
marketing, including a 2009 survey by the Lenskold Group and
Research and analysis–Website activity analysis
MarketSphere in which 65% of marketers worldwide said that 3.14
CEOs and CFOs are demanding to see ROI as a part of securing Promotions–contests/sweepstakes
budgets for marketing initiatives. Seventy-nine percent of the 3.11
marketers felt that the need to measure, analyze and report Publishing tools–e-mail newsletters
3.11
marketing effectiveness was greater in 2009 than in previous years.
Websites/applications–microsites
Another 2009 survey, from JupiterResearch and Verse Group, found 3.07
that achieving measurable ROI on marketing efforts was the No. 1 Advertising–online display ads
3.07
priority of US marketers for 2009. Second on their list was developing
Research and analysis–return on marketing investment (ROMI)
marketing programs that integrate online and traditional media. analysis
3.07
Leading Priorities for US Marketers in 2009 (% of SEO–pay-per-click search ads
respondents) 3.05
Achieving measurable ROI on my marketing efforts Collaboration and process tools–project management/marketing
50% process tools
3.00
Developing marketing programs that integrate online and
traditional media SEO
43% 3.00
SEO–search-related landing pages
Translating the brand experience across different touchpoints
2.96
32%
Promotions–gaming
Cutting marketing budgets without cutting performance 2.96
31% Partner tools–supplier/customer intranets
Optimizing our portfolio of brands 2.93
26% Publishing tools–blogs
2.75
Selecting better methods to uncover relevant consumer insights
Websites/applications–social networking tools
23%
2.75
Measuring brand effectiveness
Websites/applications–e-commerce sites
20% 2.69
Refreshing our brand's image Collaboration and process tools–customer relationship
19% management (CRM) (sales process)
2.68
Evolving our brand as the company's business strategy evolves
Advertising–video ads (e.g., on YouTube)
18%
2.65
Building a corporate culture rooted in our brand Advertising–mobile ads
17% 2.58
Note: n=101 Note: n=111; *90% of respondents are US-based; **1=not satisfied and
Source: JupiterResearch and Verse Group, "CMO Priorities for 2009," 5=very satisfied
February 2009 Source: Heidrick & Struggles, "The Digital Marketing Standard," provided to
102141 www.eMarketer.com eMarketer, April 20, 2009
emarketer_2000584_102141 103679 www.eMarketer.com
emarketer_2000584_103679
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Online Brand Measurement: Special Report 8
Background: Factors that Contribute to the Measurement Issue
Again, the growing pull toward more accountability in marketing is “I think if we came to an agreement on how a
only reinforced by the severe economic climate. In the CMO Council’s brand campaign influences a direct
annual “Marketing Outlook 2009” report among 650 marketing response campaign and understood how
professionals worldwide, fully one-half said they were cutting their display advertising impacts search, that
marketing budgets this year.As Liz Miller,VP of programs and
would be a game-changer. It would change
operations at the CMO Council, said in the April 6, 2009, issue of BtoB
the way our clients buy online media.”
magazine,“Everything we have seen and possibly predicted was that
—Jeff Lanctot, chief strategy officer, Razorfish, in an
a typical knee-jerk reaction to the recession would happen—budgets
would be slashed across the board and companies would look at
interview with eMarketer, April 28, 2009
marketing as if it were a line item that must be removed immediately.”
“This recession is having a dislocation
When marketers in the CMO Council survey were asked which impact. It is causing advertisers to look
media elements would see their budgets increased by more than more closely at the Internet because of the
5%, 33% of respondents cited interactive/Web, 25% indicated
cost savings they might have [versus] if
search marketing and 23% named social media.
everything economically was fine. [The
Internet’s] growth is slowing, [but] it’s
“There is an increase in those programs and gaining share.” —Gian Fulgoni, chairman and co-
media options that will have an ROI that can founder, comScore, in an interview with eMarketer, April
be measured and provide direct engagement 15, 2009
with customers.” —Liz Miller,VP of programs and
operations, CMO Council, in BtoB magazine,April 6, 2009 Consulting firm McKinsey & Co. conducted a study in June 2008 and
found that only 20% of marketing executives worldwide claimed to
use quantitative analytical techniques to optimize their online
Where Is Digital on the Accountability Front? marketing efforts. Most used subjective—or gut—measures.
The marketing accountability mandate extends to every form of
media, including the Internet. But while the Web, in general, is In a more recent November 2008 survey by integrated marketing
perceived as highly accountable, the actual usage and success of solutions provider Alterian, 47% of the 1,545 marketers and
measurement programs depends heavily on marketers’ objectives. agencies polled said they used analytics to measure their online
campaigns. Despite the obvious vested interest here, the Alterian
Most marketers have a handle on measuring and calculating ROI survey suggests a positive trend for marketer adoption of analytics.
for their search campaigns, which tend to be focused on short-
term, direct response results. Far fewer have mastered the art More evidence that progress is being made for measuring the ROI
(and science) of assessing the impact of their branding efforts, of online advertising comes from a series of surveys among
which tend to have a longer-term focus and are much harder and marketers conducted by PROMO magazine between 2007 and
more complex to measure. 2009. In 2009, the Internet was deemed more profitable on an ROI
basis than traditional media by 34% of respondents—up from
But the industry is gradually waking up to the fact that marketers and 21.6% in 2008 and 25.9% in 2007; only 7.4% felt the Internet was
their agencies have been overemphasizing search while less profitable than traditional media in 2009.
simultaneously devaluing their online branding efforts—largely
because of inadequate measurement tools and platforms. In the
aggregate, branding-oriented ads today account for slightly less than
one-third (31.5%) of total online advertising dollars spent in the US.
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Online Brand Measurement: Special Report 9
Background: Factors that Contribute to the Measurement Issue What Spending Trends Say About
Online Brand Measurement
Interactive vs. Traditional Marketing ROI According to
US Marketers, 2007-2009 (% of respondents) Spending trends by advertisers tell another side
More profitable of the story about the state of online branding
25.9%
21.6% and its measurement.
34.0%
2012 13.5%
2007 2008 2009
Note: numbers may not add up to 100% due to rounding 2013 10.4%
Source: PROMO magazine, "2009 Promo Interactive Marketing Survey"
conducted by Penton Research, April 1, 2009 Source: eMarketer, April 2009
103776 www.eMarketer.com 102197 www.eMarketer.com
102197
103776
Looking specifically at the data analytics side, Forrester Research For additional information on the above chart, see Endnote
reported in May 2009 that over the next five years, US companies 102197 | 104363 | 104366 in the Endnotes section.
will more than double their aggregate spending on Web analytics,
including data analysis of advertising campaign performance. The
eMarketer’s projection of 4.5% growth for US online advertising in
research firm sees such spending growing from $421 million in
2009 is supported by a wide variety of independent sources, from
2009 to $953 million by 2014.
media and research firms to investment banks. Although a few
sources point to marginal declines, most predict online ad
“It’s sort of a chicken or egg problem in that spending growth will remain positive.
measurement is expensive so it’s prudent to
measure only big campaigns on major
initiatives. So until more money’s spent
online for branding, the measurement’s
going to lag. If the measurement and metrics
lag, how can we expect the offline dollars to
pour in?” —Jeff Lanctot, chief strategy officer, Razorfish,
in an interview with eMarketer, April 28, 2009
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Online Brand Measurement: Special Report 10
What Spending Trends Say About Online Brand Measurement
104394
For additional information on the above chart, see
For additional information on the above chart, see Endnote 104597 | 104600 in the Endnotes section.
Endnote 104394 in the Endnotes section.
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Online Brand Measurement: Special Report 11
What Spending Trends Say About Online Brand Measurement
In terms of dollars spent, search advertising will grow 13.4% in More Evidence that Display Ad Spending Will Shrink
2009, while display ads will shrink by 4.6%. eMarketer is not alone in thinking 2009 will see search budgets
continue to ascend while spending growth on display ads
US Online Display and Search Advertising Spending
goes negative.
Growth, 2008-2013 (% change)
2008 2009 2010 2011 2012 2013 In the comparative estimates chart below, every single research
Search* 19.8% 13.4% 13.2% 10.6% 11.2% 10.2% firm, investment bank and media house predicts a positive trend
Display ads** 9.4% -4.6% 3.6% 4.4% 7.8% 2.2% for search ad dollars this year, with a range of 1% growth (Cowen
Note: *paid listings, contextual text links and paid inclusion; **banner ads and Co., Myers Publishing) to 21% (BMO Capital Markets). On the
only, excludes rich media and video
Source: eMarketer, April 2009 other hand, there is a consensus that display spending will see
104597 www.eMarketer.com negative growth. Investment bank Oppenheimer & Co. is the
104597
most pessimistic, projecting display ad spending will tumble 15%
For additional information on the above chart, see this year.
Endnote 104597 | 104600 in the Endnotes section.
Comparative Estimates: US Online Display and Search
Advertising Spending Growth, 2009 (% change*)
After the downward blip in 2009, display ad spending growth will Online Search
display
enter positive territory again in 2010, but at a rate of only 3.6%,
Barclays Capital, May 2009 -1.0% 10.0%
while search will climb 13.2%.
BMO Capital Markets, October 2008 -2.0% 21.0%
Over the next several years, display ads as a percent of total Citi Investment Research, November 2008 -5.0% 14.0%
online advertising will shrink from 19% in 2009 to just below 15% Collins Stewart, November 2008 3.0% 13.0%
in 2013. Other researchers and analyst firms forecast a similar Cowen and Company, May 2009 - 1.0%
downward trend. Credit Suisse, January 2009 -5.9% 8.1%
eMarketer, April 2009 -4.6% 13.4%
Forrester Research, April 2009 1.7% 13.9%
JPMorgan, January 2009 6.3% 9.9%
Myers Publishing LLC, May 2009 -3.0% 1.0%
Oppenheimer & Co., February 2009 -15.0% 10.0%
SNL Kagan, May 2009 4.6% 9.1%
ThinkPanmure, October 2008 -5.0% 13.0%
ZenithOptimedia, April 2009 -1.8% 9.0%
Note: *vs. prior year
Source: eMarketer, April 2009; various, as noted, 2008 & 2009
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Online Brand Measurement: Special Report 12
What Spending Trends Say About Online Brand Measurement
The reason for the disparity is that each firm is measuring a It is also instructive to look at how marketers are using display ads.
different thing. Specifically, Nielsen, which reported a 3.5% drop in According to AdRelevance, which measures impressions by
display ad spending, only counts CPM-based display spending. objective, advertisers have been slightly increasing their use of
TNS Media Intelligence, on the other hand, which reported an 8.2% display ads as a means to achieve direct response objectives, with
increase, includes both CPM and cost-per-action/cost-per-click 73% of impressions focused on direct response in Q4 2008. At the
deals. We can conclude two things from this data: beginning of 2008, only 68% of display impressions were direct-
response-focused.
1. Online display ad spending continues to increase.
Dollar Trends Don’t Tell the Whole Story “Ad networks have driven CPMs down to a
Just because the analysts predict negative growth for online terrible level.” —David Verklin, CEO, Canoe Ventures,
display advertising and most advertisers give it short shrift in their as quoted in MediaPost’s OnlineMediaDaily, April 29, 2009
marketing efforts does not mean that display ads necessarily
deserve the bad rep. At $2.46 in 2008, average online CPMs were less expensive than
every form of traditional media, with the exception of outdoor,
In fact, a pullback or complete retrenchment from display
according to Jefferies & Co.
advertising could end up being a big mistake for marketers.
US Advertising CPM, by Media, 2008
There are four interrelated factors impeding the growth of online
display ad spending: Broadcast TV $10.25
Syndication TV $8.77
■ A depressed economy, along with severely reduced media
budgets overall Magazines $6.98
Cable TV $5.99
■ Intense pressure on pricing for display units, which, in turn, is a
Newspapers $5.50
function of both the economy and the proliferation of ad
networks (more than 400 at last count), which tend to Radio $4.54
■ A lack of adequate measurement systems to justify the use of Source: Jefferies & Company, Media Dynamics, InterMedia Dimensions and
company reports, "Snapshot of the Global Media Landscape," provided to
display ads eMarketer, February 2009
103170 www.eMarketer.com
■ A tendency for marketers, in the context of draconian budget 103170
cutbacks, to focus their marketing efforts on below-the-line,
direct response initiatives “Two elements working in online display
The last factor represents a familiar pattern for marketers. As advertising’s favor are that its tracking
Randall Rothenberg, CEO of the IAB, said on his clog (a cross capabilities have been improved and its
between a blog and a column): “It’s an axiom of marketing that pricing made more reasonable.” —Nate Elliott,
when the economy gets rough, marketers shift budgets from principal analyst, Forrester Research, as quoted in BtoB
above-the-line programs to below-the-line—that is, they trade off magazine, April 6, 2009
longer-term effects of brand-building for the shorter-term need to
move product.” CPM pricing for display ads purchased through ad networks is also
on the decline. According to the Q4 2008 report from PubMatic,
This thinking was echoed by the results of an April 2009 survey
display ads sold through ad networks decreased by 48% in that
among 129 marketers conducted by the Association of National
quarter compared with Q4 2007. More recently, CPMs on ad
Advertisers (ANA). In the study, two-thirds of marketers said they
networks were estimated to be down by 20% to 30% in Q1 2009
had shifted their focus to more short-term strategies over the past
from Q4 2008, as measured by the Rubicon Project.
six months in response to the economy.
Of course, this downward CPM trend may also create an
Pricing Pressures opportunity. Marketers can buy display ads relatively cheaply
Online display ads are typically sold on a cost-per-thousand (CPM) now—at a time when budgets are particularly tight. For brand
impression basis. According to Credit Suisse, online display ad marketers, this is a buyer’s market.
CPMs are headed downward for the next several years, projected
Not only are the lower CPMs on display ads creating potential
to fall from an average of $2.46 in 2008 to $2.30 by 2013, resulting
savings for advertisers, the decreased volume of display ads in the
in a cumulative decrease of 6.5%. Note that these prices are
aggregate is reducing the clutter of online ads. Many studies,
representative of traditional banner ads. Online video ads, for
including one by Nielsen, report that having fewer ads per
example, typically garner a CPM of $15 or higher.
Webpage results in significant increases in unaided recall.
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Online Brand Measurement: Special Report 14
What Spending Trends Say About Online Brand Measurement
Beyond Banners: Other Online Formats Will Boost Importantly, when all the branding-related components
Overall Branding Dollars are combined, the aggregate dollars show a positive
While traditional display ad units—mostly banners—currently growth rate for every year from 2009 though 2013. Total
represent the bulk of brand-oriented ad dollars online, other forms online branding dollars will rise 1% in 2009 and 10.4% in 2010,
of online brand ads are growing at a much faster rate. In addition to followed by double-digit increases thereafter.
banner ads, totaling $4.7 billion in 2009, rich media and video ads
US Online Advertising Spending Growth, by Format
account for another $2.7 billion. Other forms of brand advertising— and Objective, 2008-2013 (% change)
mainly sponsorships—make up an additional $300 million, bringing 2008 2009 2010 2011 2012 2013
total online brand ad spending in 2009 to $7.7 billion. Video 126.5% 43.5% 42.5% 40.5% 48.6% 30.6%
Rich media -0.8% 3.0% 9.4% 12.4% 13.5% 12.0%
US Online Advertising Spending, by Format and
Sponsorships -39.2% -17.7% 9.4% 10.8% 13.5% 10.4%
Objective, 2008- 2013 (millions)
Display ads 9.4% -4.6% 3.6% 4.4% 7.8% 2.2%
2008 2009 2010 2011 2012 2013
Branding total 8.0% 1.0% 10.4% 12.7% 18.2% 12.4%
Display ads $4,877 $4,655 $4,824 $5,034 $5,426 $5,543
E-mail -4.5% -3.2% 2.6% 7.1% 9.6% 10.4%
Video $734 $1,054 $1,501 $2,109 $3,134 $4,092
Search 19.8% 13.4% 13.2% 10.6% 11.2% 10.2%
Rich media $1,642 $1,691 $1,849 $2,079 $2,359 $2,641
Lead generation 6.3% 4.8% 9.4% 10.8% 11.9% 8.8%
Sponsorships $387 $319 $348 $386 $438 $484
Classifieds -4.4% -15.9% -9.7% 5.9% 10.8% 5.1%
Branding total $7,640 $7,718 $8,522 $9,608 $11,357 $12,760
Direct response total 11.8% 6.2% 8.9% 9.9% 11.2% 9.4%
Search $10,546 $11,956 $13,534 $14,969 $16,648 $18,340
Grand total 10.6% 4.5% 9.4% 10.8% 13.5% 10.4%
Classifieds $3,174 $2,671 $2,412 $2,554 $2,831 $2,976
Lead generation $1,683 $1,764 $1,930 $2,138 $2,393 $2,604 Source: eMarketer, April 2009
104366 www.eMarketer.com
E-mail $405 $392 $402 $431 $472 $521
104366
Direct response $15,808 $16,783 $18,278 $20,092 $22,343 $24,440
total
For additional information on the above chart, see Endnote
Grand total $23,448 $24,500 $26,800 $29,700 $33,700 $37,200
102197 | 104363 | 104366 in the Endnotes section.
Note: numbers may not add up to total due to rounding
Source: eMarketer, April 2009
104363 www.eMarketer.com Video ad spending alone will climb at a 40%-plus growth rate for
104363
the next few years.
For additional information on the above chart, see Endnote
102197 | 104363 | 104366 in the Endnotes section. A Special Note on Social Media Dollar Trends
While social media spending by US advertisers was on an upward
trajectory until the recession hit, eMarketer now predicts the market
for social network advertising will actually decrease by 3% in 2009.
The lack of measurement standards, or even a clear idea of what
and how to measure, is the primary factor inhibiting spending.
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Online Brand Measurement: Special Report 15
Drill Down: What Are the Problems?
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Online Brand Measurement: Special Report 16
Drill Down: What Are the Problems?
“However strongly you believe in your brand, Similar results were found by Heidrick & Struggles in a December
you have to do your bit to reduce spending 2008 survey of US senior executives. Branding took sixth place
at tough times like these.” —Marty Ordman, vice among their top priorities over the next 12 to 18 months.
president, marketing and communications, Dole Food Co., Top Priorities in the Next 12-18 Months According to
speaking at the ANA Brand Conference, as cited in US* Senior Executives, November-December 2008
(scale of 1-5**)
Advertising Age, May 13, 2009
Acquire new customers 4.22
In the one clear exception to the rule, the ANA released results
Increase customer retention 3.90
from a “Brand Building in Tough Times and Beyond” study at its
Increase customer lifetime value 3.74
May 2009 conference of the same name. In close alignment with
the theme of the conference, 74% of senior marketers responded Improve marketing ROI 3.64
that “brand equity” is very important to their company’s success. Launch new products/services 3.59
The ANA survey provides the first case in point. In its sampling of Acquire, develop and retain talent 3.31
129 marketers, two-thirds admitted that the recession had shifted Expand to new geographies 2.62
the focus of their companies to short-term results, as opposed to
Note: n=111; *90% of respondents are US-based; **1=not important and
the longer-term results associated with branding. 5=extremely important
Source: Heidrick & Struggles, "The Digital Marketing Standard," provided to
According to a recent MarketingProfs survey conducted among eMarketer, April 20, 2009
103672 www.eMarketer.com
670 marketers in October 2008, while more than one-quarter of emarketer_2000584_103672
respondents identified customer acquisition (29.9%) and customer Another survey, from Datran Media, shows that the marketers’
retention (26.6%) as top goals, only 15.4% cited “creating current focus on driving customer acquisition and retention at the
awareness for long-term brand-building” as a top priority. expense of brand-building goals (such as increasing brand
awareness or favorability) is not just a US trend. The survey,
Most Important Marketing Objective According to US
Marketers, October 2008 (% of respondents) conducted among 3,000 marketers worldwide, found that while
increased customer acquisition and retention were rated most
Acquire new customers not currently in the category
29.9% important by 63.2% and 43.7% of respondents, respectively, only
14.1% rated branding measures as highly.
Customer retention (upsell, encourage repeat purchase)
26.6%
Advertising Goals for 2009 According to Marketers
Lead generation to support sales Worldwide, by Level of Importance (% of respondents)
21.3% Most Important Less Least
important important important
Creating awareness for long-term brand building
New customer 63.2% 32.7% 2.2% 2.6%
15.4% acquisition
Taking customers away from competitors Increased brand 14.0% 48.7% 26.0% 11.3%
awareness
7.0%
Increased brand 14.1% 48.7% 26.6% 11.4%
Note: n=670; numbers may not add up to 100% due to rounding favorability
Source: MarketingProfs, "Impact of Economic Crisis," provided to
Increased 43.7% 43.7% 7.8% 5.6%
eMarketer, October 20, 2008
customer
098997 www.eMarketer.com retention
emarketer_2000584_098997
Note: n=3,000+; numbers may not add up to 100% due to rounding
Source: Datran Media, "3rd Annual Marketing & Media Survey," January 27,
2009
101242 www.eMarketer.com
101242
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Online Brand Measurement: Special Report 17
Drill Down: What Are the Problems?
Similarly, in the context of interactive campaigns, Forbes Again, even though marketers appear to be temporarily retreating
conducted a survey of 112 senior marketers primarily in the US in from branding initiatives, including deploying and measuring
early 2009 and found that direct response measurements were online brand campaigns, it does not mean that is the right thing to
significantly more popular than branding metrics as a gauge for do. Mr. Liodice, the CEO of the ANA, summed it up best: “It has
success. While 70% of all respondents identified conversions as been demonstrated empirically, time and again, that stronger,
the leading measure of success and 49% mentioned click-through higher-valued brands lead to stronger, better business results.”
rates, only 25% cited brand-building metrics.
A Preoccupation with Search, at the Expense
Most Important Metrics for Measuring Online
Marketing Campaign Success According to US* of Branding
Senior-Level Marketing Executives, by Budget Size, In the InsightExpress poll conducted for this report, 83.7% of
February-March 2009 (% of respondents) marketing professionals from a variety of disciplines and
$1 million+ All companies agreed or strongly agreed with the following statement:
(n=49) respondents
(n=112)
“Online search—because it’s so easily measured and is
Conversions or sales 82% 70%
often the last click before a purchase—is getting too
Registrations/subscriptions via organization's 55% 52%
Website much credit. We therefore undervalue the branding
Click-throughs 51% 49% effects of online advertising formats such as banners,
Unique views to Website or page where ad or 51% 37% interactive rich media and video.”
content was placed
Boost in search rank 39% 34% Only 16.2% of respondents were neutral, and not a single one
Downloads of data of information 33% 37% disagreed with the statement.
Change in target audience awareness/ 31% 25%
perceptions of brand US Marketing Executives Who Agree that Online
Search Is Given Too Much Credit in Online Brand
Customer feedback on Website 16% 26%
Measurement, April 2009 (% of respondents)
Number of target audience members reached 14% 13%
Streams of video or audio content 8% 6%
Other 6% 3% Neutral
16.2%
Note: *respondents were primarily based in the US
Source: Forbes, "2009 Ad Effectiveness Survey," June 1, 2009 Strongly agree
104355 www.eMarketer.com
40.5%
104355
Agree
The low ranking for branding is partly explained by a survey from 43.2%
the ANA. In its October 2008 study, just when the financial crisis
began in earnest, marketers were asked to cite methods they
were using for measuring brand growth. Fully 70% said the answer Note: n=37; numbers may not add up to 100% due to rounding; no
respondents chose "disagree" or "strongly disagree"
was “sales and net income,” which is about as blunt and bottom- Source: eMarketer, "Online Brand Measurement Survey" conducted by
line a measure as you can get. InsightExpress, June 2009
104493 www.eMarketer.com
104493
Method Used to Measure Brand Growth According to
US Marketers, October 2008 (% of respondents)
Shareholder value 9%
Household penetration 4%
Company culture 3%
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Online Brand Measurement: Special Report 18
Drill Down: What Are the Problems?
“It’s easy to measure the last click and attribute all Wenda Harris Millard, president of consultancy Media Link and
of the credit to search. It’s the perfect attribution immediate past chair of the IAB, explained it this way in an
model for the lazy [marketer].” interview with eMarketer: “Brand marketers really want to know
who they’re reaching. We keep talking about impressions. They
“There is minimal branding and emotional
[brand marketers] want classic demographics. Impressions are not
transference with SEM marketing. Search does very
a substitute for knowing who you will reach. They also want to
little to complement a cross-platform marketing
know how long someone looked at an ad and what happened. Did
plan. Branding through visuals is still paramount in
it leave a favorable impression of the brand? Will someone try this
getting people excited, and for establishing an
product? And did somebody take an action at any point? They
emotional connection with a product.”
want to create awareness and then know whether they changed a
“Generally speaking, marketers attribute 100% of consumer’s perception or induced trial.”
transactional performance to search knowing that
other preference-building messaging leads the Ms. Millard, who previously held senior sales and media positions
consumer down the purchase pathway.” at Yahoo! and Martha Stewart Living Omnimedia, continued,
“Brand marketers are frustrated about not getting answers to
those basic questions, so they end up looking at online as more of
Too many marketers are not even measuring their online branding a performance-oriented medium. The agencies, in many cases,
efforts. According to a May 2008 PROMO magazine survey of 148 are using classic direct marketing metrics and trying to measure
US marketers (who subscribe to the magazine, which skews brand impact using those metrics—but that doesn’t answer the
toward direct response marketers), only 41.5% said they measured marketers’ real questions.”
metrics for online brand awareness. A much higher percentage
(58.5%) used the far less meaningful click-through metric. Killer Stat for the Purchase Funnel: 94%
When a Microsoft Atlas Institute study examined the 90-day
Metrics Used by US Marketers to Measure Interactive
Campaign Effectiveness, 2007 & 2008 (% of timeline for a typical purchase funnel, it found that companies
respondents) often disregard 94% of the data available to them when assessing
2007 2008 online campaigns. The study also revealed that marketers
Click-throughs 51.0% 58.5% attribute far too much weight to activity occurring at the very
Incremental sales 41.1% 43.5% bottom of the sales funnel, concentrating heavily on the last ad
Offer response rates 44.5% 42.9% clicked, which often appears on a search engine.
Brand awareness 36.5% 41.5%
Lead generation 40.7% 36.1% Traditional AIDA Model Representing Consumer
Return-on-promo investment 34.2% 34.7% Purchase Funnel
Awareness
Increased understanding of customer 26.6% 23.8%
Coupon redemption rates 16.3% 19.0%
Engagement with Web content 12.2% 16.3%
Interest
Media impressions 24.7% 16.3%
Improved sales margins 4.6% 4.9%
Don't measure * 2.0%
Desire
Does not apply 4.9% 2.7%
Note: *not asked in 2007
Source: PROMO magazine, "2008 Promo Interactive Marketing Survey"
conducted by Penton Research, May 2008
Action
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Online Brand Measurement: Special Report 19
Drill Down: What Are the Problems?
Commenting on the study, Esco Strong, senior group manager of “We’re asking ourselves whether the funnel
the Atlas Institute, said, “It’s a myopic view that disregards the construct is actually the right one. The
points at the top of the funnel that brought the consumers down research we’ve seen shows that the
to the bottom.” Mr. Strong added, “You make someone aware at purchase decision process is far more
the top of the funnel, target them with specific information in the
complex and nonlinear than a simple funnel.
middle, and drive them to buy with search at the end.”
[For example,] I don’t think we have a good
Not everyone in the industry is in agreement about where in the idea of how peer influence works in a funnel
funnel the most work needs to be done. Some, such as Curt Hecht, construct. There’s been very little progress to
president of VivaKi Nerve Center, believe the top of the sales evaluate the impact of those [social]
funnel is trickiest since it deals with attitudes. “Once you get into conversations on brands.” —Jeff Lanctot, chief
real behavior around intent and helping clients come up with strategy officer, Razorfish, in an interview with eMarketer,
proxies to show levels of interest, it’s the attitudinal metrics at the
April 28, 2009
top of the funnel that are harder to come up with,” said Mr. Hecht,
in an interview with eMarketer.
Others, such as Ken Mallon, senior vice president-custom solutions Key Stat
and ad effectiveness consulting at Dynamic Logic, a firm that According to the Atlas Institute, if marketers only look
measures brand metrics for online campaigns, think the ad industry at search, which is often the “last ad clicked,” they are
has got the top part of the funnel licked, but the bottom part—tying missing 94% of their engagement touchpoints.
intentions to end results—presents the biggest challenge.
“The hardest part is the last step, [measuring] what happens after
“Some marketers are starting to use the
someone makes an intent to purchase,” said Mr. Mallon, in an
technology that manages online ad
interview with eMarketer. “What happens after someone raises
campaigns (the ad-serving platform) to
their hand and says, ‘Yes, I do intend to go to that movie. I do
intend to buy that car in the next 90 days.’ How does intent
assess the impact of all online touchpoints,
translate into actual purchase?” instead of basing the optimization of media
on the last click before a conversion.”
Agreeing with Mr. Mallon is Jeff Lanctot, the chief strategy officer —Jacques Bughin, Amy Guggenheim Shenkan and Marc
of interactive agency Razorfish, who told eMarketer in an
Singer, The McKinsey Quarterly, October 2008
interview: “[Our clients] see the opportunity to tie attitudinal
measures to behavioral measures, and that’s where the
Clearly, if marketers are going to spend precious dollars executing
complexity comes in. There’s value in measuring those tried-and-
online branding campaigns, they ought to be measuring the
true attitudinal metrics but also in recognizing that there’s another
results—even if it costs a little extra in terms of time and effort.
piece to the puzzle—actual behavior. Did consumers purchase?
Did they register? Did they take that end action? Digital yields Today, the tendency among online marketers is to measure only
valuable insights and also creates incredible complexity.” search and give it most or all of the credit for online conversions.
They do this because search results, which often represent the
To make things even more complicated, some stakeholders even
last ad clicked, are relatively easy to measure. But a wealth of data
question whether the standard sales funnel model is adequate to
suggests marketers should be applying much more rigorous
represent the complexity in today’s digital world.
measurement analytics and integrating search and display results
to get the complete story on their campaigns.
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Online Brand Measurement: Special Report 20
Drill Down: What Are the Problems?
“The challenge is that people are applying “If I don’t have a display campaign to support
direct metrics in many cases to what is my paid search campaign, I’m basically
inherently a branding campaign. We need to giving the traffic away to my competitors.”
continue to evolve the brand metrics in order —Robert Murray, CEO, iProspect, “Search Engine
to make sure we are using the right metrics Marketing and Online Display Advertising Integration
to measure what the campaign objectives Study,” May 2009
are. But to simply use direct metrics to
measure brand campaign performance is Overall, the iProspect study concluded that Internet users were
never going to be successful.” —Pam Horan, more likely to engage with or make a purchase from brands with
president, Online Publishers Association, in an interview which they were already familiar, and online brand ads are one
way to get there.
with eMarketer,April 27, 2009
Additional comScore research, conducted with Starcom USA,
reveals no correlation between display ad clicks and basic brand
An Addiction to Clicks
metrics. In other words, if you look only at clicks, you’re
Clicks represent the low-hanging fruit of measurement—and that is
considering only a tiny fraction of the economic value of an online
why marketers tend to seek them out with a vengeance. But clicks
advertising campaign. Study after study has shown that online
do not even begin to capture the full value of online display ads.
display ads generate awareness and interest—even if those ads
According to comScore, two-thirds of Internet users never click on never get clicked.
display ads over the course of a month; moreover, only 16% of
Why have clicks become the default standard for online brand
Internet users account for 80% of all clicks. That helps explains
measurement? Very simply, because they are so easy to measure.
why the average click-through rate for display ads has plummeted
Jim Meskauskas, vice present/director of online media at
over the years to a mere 0.1%. (Note that online video ads can still
Omnicom-owned ICON International, put it this way in an e-mail to
elicit click-through rates in the 1% to 4% range, but that is likely to
eMarketer: “Every client is a branding client, until they get their
taper off over time.)
first tracking report. Then they turn into direct marketers.”
A January 2009 study commissioned by iProspect and conducted If there was one point on which all the professionals eMarketer
by Forrester Consulting shows that when Internet users were interviewed for this report could unanimously agree, it was that if
exposed to a promotional ad, less than one-third (31%) of them your goal is to build brands, clicks are the wrong way to go.
clicked on the ad itself; however, a plurality did take some other
form of action: “Because of our direct response heritage [in
■ 27% searched for the product, brand or company using a the online advertising industry], we’ve
search engine. toiled under the tyranny of the click for too
long.” —Randall Rothenberg, CEO, Interactive
■ 21% typed the Web address directly into their browser and
Advertising Bureau, as quoted in Advertising Age,
navigated to the advertiser’s site.
March 30, 2009
■ 9% investigated the product, brand or company through
social media.
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Online Brand Measurement: Special Report 21
Drill Down: What Are the Problems?
Mr. Fulgoni recently wrote a white paper entitled “How Online “It’s like going to a 3-D movie without the
Advertising Works: Whither the Click?” which culled data from glasses. The Internet is more dimensional,
more than 200 studies and was published in the June 15, 2009, but [for the most part] measurement criteria
issue of the Journal of Advertising Research. The white paper are the same as for a one-way medium. You
concluded that an ad impression on the Internet works just like an
don’t have the glasses so you’re not
ad impression in traditional media.
appreciating the dimensions.” —Matt Freeman,
According to Mr. Fulgoni, people who are exposed to a display ad— CEO, Betawave, as quoted in AdWeek, March 23, 2009
whether or not they click on it—have “an increased likelihood of
visiting the Website of the brand in the ad, an increased likelihood Others argue that the power and possibilities of social media
of conducting a trademark search query, an increased likelihood of programs that allow for deep consumer engagement are completely
buying online, an increased likelihood of buying offline.” ignored by traditional reach and frequency measurements.
“[The display ad] has a lasting effect,” concluded Mr. Fulgoni. But don’t write off traditional media measurements and metrics
“Cumulatively, impressions build up over time and create an just yet. There is a growing movement to support the application
image of a brand. Then when you go off and do a search, you’ve of tried-and-true GRPs to Internet ad planning and measurement,
got the brand better established in your mind.” and this may well be a key to opening up the floodgates for more
media dollars and advertiser interest.
While direct response is attractive to marketers because of the
immediate gratification of almost-instant results, they must take a The key here is making online comparable to other media. “On the
longer view when measuring branding effects, which are one hand, you’ve got incredible [measurement] granularity on the
cumulative in nature. Web and a lot more insight into your brand metrics,” said Jim
Spanfeller, president and CEO of Forbes.com, in an interview with
Click-obsession leaves marketers with a very crude and
eMarketer. “On the other hand, you really can’t compare that in
inadequate accounting measure that ignores most of the potential
any way, shape or form to your offline spend.”
value of an ad. They do not know if the ad created awareness in
the mind of the consumer, if it served as a reminder to buy the
product at a later time, if it created a more favorable impression of
the brand or reinforced loyalty to the brand. These attitudinal shifts
simply do not happen in the instant of a click.
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Online Brand Measurement: Special Report 22
Drill Down: What Are the Problems?
Integration Is Hard When Data Is Locked in Silos Attitudes of US Marketers Toward Marketing During
In eMarketer’s interviews with professionals who are experts in the Economic Crisis, November 2008 (% of
respondents who somewhat or strongly agree)
the field of building models and processes for online brand
measurement, it was clear that unlocking data silos is a critical Due to the suffering economy, marketing efforts are under
greater scrutiny than ever before
step toward connecting the dots of media measurement. As
89%
Razorfish’s Jeff Lanctot told eMarketer, “For all the talk about the
Internal silos are the biggest barrier to integrating marketing
integration of traditional and digital media, they’re still bought in with customer experiences
isolation much more than they’re bought in integrated packages.” 78%
—Bob Barocci, president, Advertising Research A more recent study, conducted in March 2009 by TNS Media
Foundation, in an interview with eMarketer, April 2009 Intelligence and sponsored by rich media provider Eyeblaster,
found that while 67% of senior marketers are now running cross-
In an interview with eMarketer, Cary Tilds of Mindshare-Team channel campaigns, a scant 12% are integrating performance data
Detroit said, “The current approach to planning media is what I across channels.
would call the buckets-of-money approach. You have a TV bucket, a
When it comes to integrating digital and traditional media, too
digital bucket, a search bucket, you might have an emerging [media]
many marketers feel as though they are operating in the dark. Two
bucket. You have buckets of money. The unspoken controversy is
separate surveys bear this out.
about switching money from one bucket to another.”
In the study by Heidrick & Struggles of 111 US senior marketers, a
Ms. Tilds added, “But the buckets of money approach has nothing
paltry 15% of respondents claimed satisfaction with their
to do with how people consume media. A good media planner
optimization of the marketing mix.
needs to figure out how to allocate money against the consumer
journey—and that is a very complex problem. You have to identify Another study, jointly conducted by the 4A’s and the ANA, found
all the knowns and unknowns in the long string of mathematical that only 7% of US marketers said they were “very satisfied” with
equations that we need in order to move from buckets of money their progress toward integrating online and traditional media.
to consumer-centric planning.”
Satisfaction Level of US Marketers with Their
Further proof that data silos are a problem comes from Company's Progress in Integrating Traditional and
quantitative surveys. According to a November 2008 study by Digital Media, Q1 2009 (% of respondents)
JupiterResearch and Verse Group, 78% of US marketers agreed Very satisfied 7%
that internal silos act as the biggest barrier to integrating
Somewhat satisfied 52%
marketing. A related concern was “managing our brand across
Neutral 10%
multiple platforms.”
Somewhat dissatisfied 23%
Very dissatisfied 8%
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Online Brand Measurement: Special Report 23
Drill Down: What Are the Problems?
Among the obstacles to integrating traditional and online media, He added, “The challenge for marketers is to begin to build
according to the joint 4A’s/ANA study, were the lack of metrics technological capabilities that allow you to see the complete
and an insufficient understanding of digital media among digital footprint a given customer leaves when they engage with
senior management. your brand. You need to be able to understand that behaviorally
and/or contextually and address that consumer in a relevant
Challenges of Integrating Traditional and Online
Media According to US Marketers, Q1 2009 (average way…. Where most marketers struggle is they do not have the
ranking*) information technology capability and/or management to do that.
Having metrics to properly allocate the mix of traditional and
You need a sophisticated CRM platform that allows you to identify
digital media somebody coming through search or display, and gets them to opt
4.25 in and [allows you to] start to manage them…. Marketers need the
Key people at company lack understanding of digital media ability to pull strategic information out of the digital footprints that
3.95 consumers are leaving.”
Reluctance to move funds from "tried and true" practices of the
past In an interview with eMarketer, Martin Nisenholtz, senior vice
3.89 president for digital operations of The New York Times Co.,
Internal organizational silos impede a focused enterprisewide
provided a publisher’s perspective on the online/offline data
approach integration problem. “The thing that I continue to hear over and
3.74 over again from people is, ‘Gee, I wish I had a way to tie my online
It is difficult to get multiple agencies to collaborate effectively brand measures to my offline brand measures so that I could
on integration
standardize,’” he said. “If I’m spending X amount of money on
3.41
television and Y amount on the Web, wouldn’t it be great if I could
Note: n=122 client-side marketers (members of ANA); *on a scale of 0-5 look at one set of metrics and determine whether the offline plus
where 0="no problem at all" and 5= "a major problem"
Source: Association of National Advertisers (ANA), 4A's and Bellwether the online were more powerful together, whether the online on its
Leadership Research & Development, "Integrating Traditional and Digital
Media," provided to eMarketer, April 23, 2009 own has efficacy and whether the offline without the online is
103375 www.eMarketer.com much weaker or not.”
103375
The top frustration among agency executives, on the other hand, Online Silos
was that their clients do not fully understand how consumers use Of course, data silos also exist within the interactive platform.
digital media. According to an iMedia Connection article by Scott Knoll, a vice
president at Datran Media, “The problem is not the existence of
The study also identified challenges in measuring marketing ROI.
the data. The problem resides in separate measurements for
On a scale from 1 to 5 (where 5 represents “a major problem”), the
search, display, email, video, and mobile, creating…‘data smog.’”
top challenges were data scattered across the organization (3.2),
difficulty allocating enough resources to do the work (3.2) and Kathryn Koegel, in her May 2009 white paper about the state of
inconsistent data formats (3.1). online display ads, identifies intra-Internet silos as a major
obstacle to online advertising efficiency and success. “The silo-ing
In an interview with eMarketer, Michael Mendenhall, senior vice
of media into online vs. offline, direct vs. branding, search vs.
president and chief marketing officer of Hewlett-Packard, had
display, behavioral vs. contextual, undercuts the creation of media
much to say about the problems and solutions for data silos.
plans that address actual consumer purchase processes in the
“Many marketers have disparate databases that don’t speak to
most efficient manner,” she wrote.
each other, so they don’t have a 360-degree view of a customer….
As you think about Fortune 500 companies that are selling across
a portfolio and selling brand experiences, it becomes very hard to
Too Much Information, Too Much Complexity
Another major obstacle to online brand measurement is the sheer
sell based on a portfolio approach without appropriate analytics.”
tonnage of data to be extracted, filtered and integrated—as well
as the mind-numbing complexity that data creates.
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Online Brand Measurement: Special Report 24
Drill Down: What Are the Problems?
While the Internet offers an abundance of possible metrics, that Additional complexity comes from the fact that research and
very same plenty creates complexity and confusion. It is relatively measurement firms have widely differing approaches and
simple and straightforward when the objective is direct response. methodologies, resulting in wildly varied results. As Mr. Lanctot of
The desired behavior is not only easy to measure, it is often near- Razorfish noted, “For a brand marketer, when there’s such a
instant. The consumer sees the direct response ad, follows disparity in what would appear to be the most basic of metrics, it
through with the call to action, and the marketer can quickly and plants a seed of doubt about the reliability of the data sets or the
easily measure the results. measurement program as a whole.”
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Online Brand Measurement: Special Report 25
Drill Down: What Are the Problems?
Mr. Hecht added, “The market’s at the pressure point, in a good way, Social Media
and it’s going to force innovation and solutions to come forward.” In a study by the Marketing Executives Networking Group (MENG)
of 126 US marketing executives, more than one-third of
Another problem with the intercept survey method is that it is not
respondents admitted they did not even measure social media
very good at measuring multiple forms of online ad messages. Joe
activities. One-half claimed to measure raw traffic and one-third
Laszlo, director of research at the IAB, said, “One thing…that’s
measured clicks, both of which represent crude metrics, even by
lacking is a way to assess the effectiveness of your campaign if it
Internet standards.
runs across a broad swath of the Internet. For example, if it runs
across 15 different sites and in conjunction with a search engine Ways that US Marketing Executives Measure the
campaign, plus some social media.” Effectiveness of Social Media Marketing Efforts,
October 2008 (% of respondents)
has its own limitations. Panels are best for measuring Website Conversion to leads/revenues
traffic and are less effective for measuring ad campaigns that may 31.7%
run across dozens or hundreds of sites. They also tend to miss or Page rank (e.g., Google)
undercount smaller, long-tail sites. 25.4%
Note: n=126
Measurement of Social and Video Are Even Source: Marketing Executives Networking Group (MENG), "Social Media in
Marketing" as cited in press release, November 6, 2008
Further Behind
099526 www.eMarketer.com
While the widespread use of social and video sites by consumers
099526
evokes excitement (and sometimes a little fear) among
A full 59% of respondents said they never or hardly ever measured
advertisers, the measurement of advertising in these
the ROI of social media marketing efforts. Only a little over 12% did
environments is vastly underdeveloped. Most advertisers are still
so all or most of the time.
trying to understand the nature of this consumer activity and how
it might translate into appropriate advertising messages, let alone The primary reason so few measure social campaigns is that it is
how to measure campaigns in these environments. difficult—59% of marketers in a separate Aberdeen Group study
said social media was either “somewhat difficult” (39%) or “very
difficult” (20%) to measure. Note that the respondents here were
self-identified “best-in-class” companies. The survey also found
that only 18% of marketers link activities on social media sites
back to revenues or other financial metrics.
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Online Brand Measurement: Special Report 26
Drill Down: What Are the Problems? Data Spotlight: How Online Brand
Advertising Can Influence Every
Online Video Measurement: Promising, but Still Step Along the Consumer Purchase
Early Days Funnel
Like social media, the online video advertising market is booming
with promise, but somewhat lagging in dollars. That is partly due to
The Internet can have an impact at every phase
a laundry list of measurement issues. A central issue, though, is the
tendency to focus on short-term, direct-response-type metrics that along the consumer purchase cycle, from
ignore the primary branding-oriented benefits of video. creating initial awareness and interest for a
“The instinctual reaction to try and show the sales impact of video product, service or brand, to stimulating
campaigns is misguided,” said Mr. Song of Microsoft Advertising.
purchases, to delivering post-sales support and
“We have studies that show that video, photo-sharing, weather
and social media placements look horrible in the online ROI reinforcing brand loyalty. But what about the
equation because they’re upper-funnel. People don’t see ads on measurement of this impact?
Facebook and then go buy something. Reach, frequency and
GRPs…need to be there upfront.” As a crude indicator of how marketers generally value online
media, 36% of advertisers in a survey by Morgan Stanley said the
However, the lack of transparency for video advertising metrics is
Internet was “effective”—considerably higher than for any other
only one of several problems confronting the format, according to
media. It was not clear from the survey, though, whether
2008 research from MarketingSherpa.
marketers were thinking primarily of search, display ads, their own
Worst Problems with Video Advertising According to company Websites or other online tactics.
US Marketers, October-November 2008 (scale of 1-5*)
Effective Advertising Media According to US
Clutter 4.1 Advertisers, 2009 (% of respondents)
Ad-skipping (DVR, TiVo) 3.7
Internet 36%
Media pricing/cost 3.5
Newspapers/magazines 29%
Lack of transparency in metrics 3.4
Direct mail 26%
Lack of quality media inventory 2.9
TV 22%
Difficulty finding mass target 2.8
Radio 14%
Difficulty in buying media 2.3
Billboards 5%
Note: n=1,083; *1=no problem and 5=big problem
Yellow pages 4%
Source: MarketingSherpa, "Video Marketing Survey," November 2008 as
cited in "Marketing With Video Report: Online, TV & Mobile," December
Other 21%
2008
103550 www.eMarketer.com Note: n=181
103550 Source: Morgan Stanley, "2nd Annual Local Ad Survey & '09 US Advertising
Outlook," provided to eMarketer, March 31, 2009
102964 www.eMarketer.com
102964
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Online Brand Measurement: Special Report 27
Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
How Display Ads Impact Brand Metrics Online Advertising's Effect on Brand Metrics in the
Dynamic Logic, InsightExpress and other survey firms have US, by Level of Campaign Performance*, Q4 2008** (%
conducted countless studies—covering all types of product of respondents impacted)
categories and services—to measure the brand impact of online Aided Online ad Message Brand Purchase
brand awareness association favorability intent
display and video advertising. awareness
Top 8.9% 14.0% 9.5% 7.5% 7.1%
The latest aggregated data from Dynamic Logic, based on 2,380
Average 2.4% 4.9% 2.6% 1.6% 1.3%
campaigns measured through Q4 2008, found that those
Bottom -2.3% -1.6% -2.0% -3.5% -4.0%
respondents exposed to online advertising registered slightly
Note: n=2,380 campaigns and 3,889,602 respondents; *best performers
higher increases in key brand metrics, on average, than those who are the average of the top 20% of campaigns per metric and worst
performers are the bottom 20% of campaigns; **includes three years
were not exposed (that is, the control group). The delta lift through Q4 2008
(expressed as a point difference) for exposure to online ads was Source: Dynamic Logic provided to eMarketer, April 27, 2009
103523 www.eMarketer.com
2.4 for aided brand awareness and 2.6 for message association.
103523
Online Advertising's Effect on Brand Metrics in the For additional information on the above chart, see
US, Q4 2008* (% of respondents impacted)
Endnote 103523 in the Endnotes section.
Aided Online ad Message Brand Purchase
brand awareness association favorability intent
awareness
Dynamic Logic also compared campaigns for different categories
Control 72% 25% 17% 42% 39%
of products and, again, found highly differentiated results. For
Exposed 74% 30% 19% 44% 40%
Delta** 2.4 4.9 2.6 1.6 1.3
example, on the measure of boosting purchase intent,
Note: n=2,380 campaigns and 3,889,602 respondents; *includes three
entertainment, consumer packaged goods, home improvement
years through Q4 2008; **delta defined as point difference in exposed vs. and telecommunications categories performed much better than
control groups
Source: Dynamic Logic provided to eMarketer, April 27, 2009 average, while apparel, restaurant and retail did relatively poorly.
103522 www.eMarketer.com
103522
When it comes to measuring the efficacy of display ads on
branding metrics, context appears to matter. According to a study
For additional information on the above chart, see by the Online Publishers Association (OPA) and Dynamic Logic,
Endnote 103522 in the Endnotes section. display ads within branded content sites (for example,
NewYorkTimes.com, Weather.com) do a better job of boosting
But the above figures are based on across-the-board averages. brand metrics than when those same ads are placed within more
Importantly, the creativity and contextual relevance of ad generic portals or ad networks.
campaigns can heavily influence the results. When Dynamic Logic
Interactive* Advertising's Effect on Brand Metrics in
dissected the data, top-performing campaigns boosted key brand the US, by Site Category, January 2009 vs. August 2008
metrics by significantly higher levels than did the lowest- (% change in delta**)
performing campaigns. Aided Online Message Brand Purchase
brand ad assoc- favor- intent
For example, aided brand awareness increased 8.9% for top- aware- aware- iation ability
ness ness
performing campaigns, versus only a 2.4% increase on average
Branded content sites 63% 7% 8% 40% 0%
and a drop of 2.3% for the lowest-performing campaigns. Similarly, (OPA members)
top campaigns pushed up purchase intent by 7.1%, versus only MarketNorms® database -11% -8% -10% -18% -13%
1.3% on average. Portals -9% -3% -6% -11% 0%
Ad networks -21% -7% 0% -18% -40%
Note: *involves the audience without having them click through or leave
the Webpage; **delta defined as point difference in exposed vs. control
groups
Source: Online Publishers Association (OPA) and Dynamic Logic, "Improving
Ad Performance Online: The Impact of Advertising on Quality Content
Sites," January 8, 2009
102827 www.eMarketer.com
102827
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Online Brand Measurement: Special Report 28
Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
Multiple studies prove, too, that online video ads can have an
Conversion Rate of US Internet Users Exposed to
outsize effect on standard brand metrics such as awareness, Search Plus Display Advertising vs. Either Search Only
message association and purchase intent. or Display Advertising Only, 2006 (lift vs. display click
only)
Ways in Which US Marketers See Online Video
Enhancing Customer Engagement, 2008 (% of Display click only* 1.0x
respondents) Search click--no display impressions 3.3x
Increasing brand awareness 71.4% Search click plus display impressions 4.0x
Retail 69%
Most agree that online display ads can act as a stimulus for driving
CPG 22%
searches for brands or products—which of course is a key step
leading to purchase. Average lift 155%
“If you see a display ad, there’s an incremental impact, but it’s not In a January 27, 2009, interview with eMarketer, Beverly Thorne,
as great as the incremental impact of a search ad,” he added. “If senior vice president of marketing at Century 21 Real Estate LLC,
you combine the two, you get synergy and the combination is explained the search/display connection for her brand as follows:
greater than the sum.” “Our own empirical results showed us that our online investments
were performing substantively better at generating leads. From
In an older yet still relevant study by the Microsoft-owned Atlas December 2007 to December 2008, we improved the efficiency of
Institute, 11 online advertisers were evaluated by measuring both our lead generation by reducing our cost per lead over 60%. At the
their display ads and sponsored search clicks. In the study, Internet same time, we multiplied our number of leads by over 235%.”
users exposed to both search and display ads converted at a much
higher rate than did those exposed to search or display alone. The mastery of Web analytics plays a key role in tying display ads
to search results. According to analysis by Steve Kerho, VP of
analytics at Organic, display ads can increase a search ad’s click-
through rate by 25% to 30%. Until recently, though, this influence
of display ads has typically not been measured by advertisers.
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Online Brand Measurement: Special Report 29
Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
pharmaceutical advertisers’ Websites. After seeing online display Personal care (e.g., medicines, contact lenses, etc.) 24.1%
Groceries (food) 18.7%
ads, consumers were more than three times as likely to visit
Utilities (e.g., gas, electricity, etc.) 16.1%
pharma advertisers’ Websites and twice as likely to fill a new
Groceries (nonfood e.g., cleaning products) 15.5%
prescription. In addition, exposed consumers were 92% more
Alcoholic beverages 12.3%
likely to search for trademark names and phrases compared with
Nonalcoholic beverages 9.1%
those who did not see the display ads.
Note: n=17,000 ages 16-54; *daily or every other day
Source: Universal McCann, "When Did We Start Trusting Strangers?,"
The study was conducted among a base of 73 million consumers September 2008
and concluded that the display ad campaigns provided an 098382 www.eMarketer.com
estimated return on media investment of 3X. Not a bad ROI. 098382
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Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
A study by Penn, Schoen & Berland Associates found that US For example, while display ads alone provided a 42% lift (test
online shoppers would research high-consideration products and versus control) on the percentage of consumers making a retail
services, such as cars, computers, new doctors, vacations and purchase online, and search generated a 121% lift, the combination
mobile phone plans, prior to making an actual purchase. of search and display ads together produced a 173% lift. Further,
the one-two punch of search and display resulted in significantly
Products/Services that US Online Shoppers Would
higher dollar spending per thousand consumers exposed.
Research Significantly Before Buying, October 2008 (%
of respondents)
Online Retail Sales* from US Internet Users Exposed
Car 85% to Online Display and/or Search Ads, 2008
Control Test Lift
New computer 83%
Display only $994 $1,263 27%
New doctor 83%
Search only $1,548 $2,724 76%
Vacation 75% Search and display $2,723 $6,107 124%
Mobile phone plan 72% Note: home, work and university locations; *monthly sales per thousand
exposed consumers ranging from two weeks to three months after the
Vacuum cleaner 58% initial exposure
Source: comScore Brand Metrix, "How Online Advertising Works: Whither
Apartment 57% the Click," December 5, 2008
104453 www.eMarketer.com
Exercise plan 47%
well. According to Jeffrey Grau, eMarketer senior analyst, How Display Ads Influence Offline Purchases
consumers today access the Internet to look up even relatively
low-interest products such as shampoo. Said Mr. Grau,
“The current lack of visibility into offline
“Consumers might go to a shampoo manufacturer’s site to learn
purchasing [as a result of online display
whether a product contains paraben preservatives, or is tested on
advertising] consistently leads to dramatic
animals or made from animal ingredients. They also might visit a
retailer’s site to read customer reviews to hear from others
underestimation of display advertising ROI.”
whether a shampoo is really unscented or causes scalp irritation. —comScore white paper, “How Online Advertising Works:
Consumers also go to coupon sites to get additional savings on a Whither the Click?” December 2008
shampoo purchase.”
Unfortunately, while online advertising can have a substantial
Display/branding ads can also influence consumers to the point of impact on offline sales, most marketers fail to measure this
purchasing products online, though rarely is the impact in the form important connection.
of an immediate click.
According to McKinsey’s June 2008 digital advertising survey of
In several studies, comScore evaluated the combined influences 340 senior marketing executives worldwide, only 30% said they
of search and display ads on consumer online buying behavior. even considered the offline impact of online marketing. However,
Search, given its obvious indication of purchase intent (that is, marketers that did look at those metrics were more satisfied with
those who take the time to search for a product are usually in- their online efforts and said they planned to increase spending on
market), has a stronger influence on consumer buying behavior them by 38%.
than display ads alone. But when both search and display ads are
combined, the overall impact is significantly greater than that of
either search or display ads individually.
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Online Brand Measurement: Special Report 31
Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
To be fair, integrated measurement systems are often difficult and In the aggregate, Forrester estimates that in 2009, Web-influenced
pricey—but in the long term, for marketers that measure search or cross-channel store sales will reach $758.8 million, dwarfing the
and display advertising together, the results can be particularly sales transacted directly online. In other words, the Web’s influence
encouraging. A September 2008 comScore study found that by on sales is much greater than its direct e-commerce impact.
using search and display ads in combination, marketers can
US Retail Sales, by Channel, 2007-2012 (millions)
significantly boost the dollar value of offline retail sales versus
using either search or display only. 2007
$1,873,673
Incremental Impact on Offline Sales per Thousand US $503,734
Consumers Exposed to Search and Display Ads vs. $174,466
Search Only and Display Only, 2007-2008 (% lift)
2008
Search and display 119% $1,793,624
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Online Brand Measurement: Special Report 32
Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
In sum, marketers who fail to assess the cross-channel impact of Ken Mallon of Dynamic Logic, whose company has evaluated the
their online branding efforts—particularly in this economic brand impact of thousands of online campaigns, was very vocal
climate—are significantly underestimating their effectiveness. about the need for good creative: “By far the biggest driver of
Leading marketers are developing tracking mechanisms that allow brand impact success is the creative. The best ads that we see in
for comparisons between offline and digital marketing. And they terms of performance online tend to be ones that almost have a
do not have to be complicated or expensive. For example, in order magazine feel. They look nice; people think about things like
to track sales across channels, retailers can use online coupons having the right human form in there, the right product shot.”
that are redeemable on Websites and in stores.
Effective creative can be planned, according to Mr. Mallon. “We have
“When you start to link in-store purchase behavior with online a set of 10 standard best practices. The clients that follow those do
advertising, it’s incredibly valuable,” said Mr. Lanctot of Razorfish. really well. But most people violate one or more of those routinely,
“[It] can help marketers understand how online marketing drives and that’s why online advertising just isn’t that great on average.”
offline behavior.”
Some in the industry go so far as to say that the creative form of
online advertising is not only critical, it transcends the
Three Factors for Online Branding Success
measurement issue entirely. In eMarketer’s interview with online
You can have all the precise numbers, measurement tools and
publishing pioneer Martin Nisenholtz, it was clear that finding
metrics at your disposal—and completely bomb with your
ways to make online ads more emotionally evocative is
online campaign if your creative messaging is substandard or
paramount to branding success.
badly targeted.
“I don’t think the measurement issue is holding back brand dollars
1. Don’t Ignore the Creative online. The bigger concern is that the Web still hasn’t found a way
Under the pressure of marketing accountability, and in our zeal to to create the kind of emotional involvement that television creates
quantitatively measure everything that moves, marketers must for people,” said Mr. Nisenholtz. “I can pretty much promise you
not abandon creativity as an essential variable in online branding that television didn’t evolve as a dominant brand-building medium
success. Measurement tends to look backward like a rearview because somebody started with a measurement. It evolved
mirror, while creativity seeks to shine the headlights on a future because marketers said to themselves, ‘This is an incredibly
attitude or action—on the part of the consumer marketers are powerful way for us to communicate and transmit the emotive
trying to reach and influence. powers of branding.’ And then they figured out how to measure it.
In other words, measures are the tail, not the dog, and the dog
As Jon Gibs from Nielsen Online said, “Creative is about 70% to
hasn’t yet been invented online. So we have to invent the dog.”
80% of the effectiveness of advertising.”
Also speaking from the online publisher’s side is Pam Horan,
president of the OPA, who feels there has not been enough focus
“If your creative isn’t good, then you aren’t on the creative process and making online ads that engage with
going to create engagement.” —Jeff Marshall, consumers. “Creative is a big issue,” she said in an interview with
managing director, Pixel, a digital creative agency owned eMarketer. “At the OPA, we’re trying to spur a creative
by Publicis Groupe, as cited in The Wall Street Journal, renaissance, so to speak, to show the opportunity for online
May 6, 2009 advertising to deliver a rich experience, tell a unique story and a
brand-oriented message.”
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Online Brand Measurement: Special Report 33
Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
2. Size Matters
3. Focus on Targeting and Relevance
When it comes to banners and other forms of display ads, larger,
The Internet, partly because it is so fragmented, allows marketers
more intrusive ads tend to perform better than smaller ones, on
much better opportunities to finely target their messages to the
average. Dynamic Logic and InsightExpress studies have proved
right individuals, and often at the right time and place. The “spray
this correlation.
and pray” approach may have worked in the past for traditional
The size and shape of display banner ads can also affect media campaigns, but it most certainly does not work on the Web,
engagement results, at least as measured by time spent. where consumers almost expect ad messages to be more
According to a time-exposure study conducted by Lotame relevant. We have the targeting technology, but we need to use it.
Solutions, the large 300x250 rectangle caused Internet users to
spend significantly more time with this unit versus more narrow
“Don’t count the people you reach, reach the
(and creatively limiting) ads, specifically 728x90 and 160x600
banner ads. Consumers spent over 13 seconds with the rectangle
people that count.” —David Ogilvy, world-renowned
(300x250), more than double the next-best-performing ad unit, the advertising executive
728x90. The large size and shape of these rectangles, which end
up smack in the middle of valued content, means they are difficult Studies from Dynamic Logic and InsightExpress, for example,
to ignore. show that contextual placements, aligning brand messages that
are in sync with the surrounding editorial content, tend to be more
Time Spent with Banner Ads Among US Internet effective for highly targeted categories, such as autos, pet care,
Users, by Ad Size, January-February 2009 baby and pharmaceutical products. Many other studies support
Total Total Average time the ability of contextual placements to boost results. In that
exposure time impressions per
(seconds) (millions) impression regard, online is no different than other media.
(seconds)
300x250 867,700,956 66,466,701 13.05 Another targeting technology experiencing renewed interest
728x90 161,590,364 29,925,805 5.40 among advertisers is behavioral targeting. With behavioral targeting,
160x600 97,539,062 51,938,746 1.88 ads are served up to Internet users based on the past surfing
Source: Lotame Solutions, Inc., "Time Exposure by Banner Size," provided behavior of the individual consumer. Conceptually, this means that
to eMarketer, April 8, 2009
advertisers are buying audience, not Webpages or impressions.
103793 www.eMarketer.com
103793
This is good for the advertiser, since it makes for a more efficient
Taking such data into account, Web media publisher MSNBC.com, media buy. It’s also good for the publishers, since they can sell
for one, is launching a new Website design that features larger-size advertising space that might have gone unsold. And finally, it is
ads, as well as exclusive sponsorship placements, to attract potentially good even for consumers, since they are more likely to
budget-conscious advertisers. see ads that are relevant to their interests.
Furthermore, as one in a series of solutions to the creative Because behavioral targeting has the potential to efficiently get
challenge, the OPA recently released three new innovative online the “right” ads in front of presumed interested parties, much like
ad units designed to create brand experiences—within the ads. search ads, many in the industry see a resurgence coming in this
“The idea is to deliver the brand experience right on the pages of type of technique.
these rich content sites [e.g., OPA publisher sites] so people won’t
have to click away,” said Ms. Horan. “These units are much larger….
The marketer’s share of voice increases because the consumer is
being exposed to a bigger ad for a longer period of time.”
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Data Spotlight: How Online Brand Advertising Can Influence
Every Step Along the Consumer Purchase Funnel
Working Toward the Solutions for
Online Brand Measurement
“These improvements [behaviorally-targeted
banner ads], driven primarily by better Big Picture: Five Broad Approaches
targeting, will also likely boost aggregate After conducting 24 phone interviews, five video interviews,
spending, as advertisers moving online begin several round-robin Q&As and an online survey among industry
movers-and-shakers—not to mention poring over reams of data
to get the same tracking and metrics that
from studies and surveys—eMarketer sees the following five
have made search advertising so appealing.”
broad approaches as key to moving forward on the online brand
—Ned May, director/lead analyst, Outsell, in BtoB magazine,
measurement front:
April 6, 2009
1. The first critical step for marketers when developing any
Forrester Research currently estimates that nearly one-quarter measurement programs must be to identify their brand’s top
(24%) of online campaigns rely on some form of behavioral marketing objectives.
targeting data. This was substantiated by a February–March 2009
2. Keep in mind that there is no single measurement system that
survey by Forbes.com, which reported that 31% of senior-level
does it all, nor will there be a silver bullet in the future.
marketers were using behavioral targeting. Finally, Datran Media
surveyed marketers and found that 65% either already used or
planned to use behavioral targeting in the future. “I don’t think the white knight is going to be
Of course, behavioral targeting, which relies on cookie technology,
riding up on his little pony. It’s going to be
has two serious obstacles: the industry working together.” —Pam Horan,
president, Online Publishers Association, in an interview
■ Between 30% and 50% of Internet users regularly delete their
with eMarketer, April 27, 2009
cookies, rendering behavioral targeting virtually useless for
these consumers. 3. A hybrid of traditional and digital approaches will be necessary,
■ Mounting privacy concerns could end up derailing the use of which will require a dramatic reinvention of measurement as
behavioral targeting, or at least seriously limiting its impact. we know it.
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Online Brand Measurement: Special Report 35
Working Toward the Solutions for Online Brand Measurement
She added: “Then, and only then, can we start figuring out, ‘OK,
Best Ways to Measure CMO Effectiveness According
to US Senior Marketing Leaders, 2008 (% of if we’re happy with how we’re measuring engagement—which
respondents) means looking at qualified actions, not simply clicks—how do
we capture what effect that has on those eventual brand
Marketing is aligned with the business strategy 35%
health metrics?’”
Profitability 29%
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Online Brand Measurement: Special Report 36
Working Toward the Solutions for Online Brand Measurement
The Nielsen ratings numbers for television, for example, are so “[We need] industry standard measures
standardized they operate as the buying and selling currency for everyone can agree on. Measures that go
the $70 billion TV business. Of course, few will admit that the
beyond just standard clicks and traffic
actual measurement process itself is less than perfect.
measures.” —Yosi Heber, president, Oxford Hill
Partners LLC, in response to an eMarketer poll fielded by
“People in broadcast sort of chuckle at the InsightExpress, April 2009
Tower of Babel that we in digital provide by
way of data, as they all implicitly agree to In the poll eMarketer organized for this report, 46% of respondents
live and die on a ‘standard’ that everyone agreed with the following statement:
knows is a proxy for a proxy, with branding “Single standards for ad metrics and online performance
standards that are, well, imprecise.” —Mark systems, set by a leading industry group such as the IAB,
Naples, managing partner, WIT Strategy, in an e-mail to are the major step needed to boost the growth of brand
eMarketer, June 2, 2009 advertising online.”
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Online Brand Measurement: Special Report 37
Working Toward the Solutions for Online Brand Measurement
When asked to elaborate on why they agreed or disagreed, Ms. Tilds added, “I want to focus on the creativity of the actual media
respondents were mixed in their opinions on the need for deployment and not argue about audience composition or over
measurement standards. Some felt that the industry needs how to measure something. I want to debate the next big idea. The
standards to succeed, while others believed they would be “nice industry needs consistent dialogue, agreement on standards of
to have,” but would not “make or break” the growth of brand methodology and support from the IAB, the 4A’s and the ARF.”
advertising online:
■ “There needs to be an industry-defined standard on which to “[We need] enough standards to establish a
base effectiveness instead of publishers, marketers and strong foundation, but not so many that
agencies setting their own baselines.” brands are constrained. [We need] more
■ “The industry needs common ground to set benchmarks and work on conversion attribution…and
manage multiple sources of data as a base for broader advances in social graph measurement and
discussions about what drives marketing success online.” analytics.” —Jeff Lanctot, chief strategy officer,
Razorfish, in an interview with eMarketer, April 28, 2009
■ “Standards are useful, but the IAB has tried many times to
impose them. Realistically, standards won’t be imposed—they’ll
Before we jump to the conclusion, however, that measurement
be adopted based on which standards are useful and provide
standards represent the panacea everyone is hoping for, Mr.
valuable feedback to their users.”
Lanctot of Razorfish, who personally believes in the formation of
■ “The IAB is going to face big issues around this effort. In many ways standards, added this sobering perspective: “We tend to put too
the tent is simply too big for them to be effective in these efforts.” much weight on standards. There’s this view that once we have
some better brand measurement standards in place, the dollars
■ “It can certainly help the industry to have standards and best
will flow. I think that’s overly optimistic.”
practices for ad metrics and online performance systems.
However, this will have little effect on the growth of brand
Q&A: Should the industry create a standardized
advertising online. Marketers will need to determine for
online brand measurement platform?
themselves (in a variety of ways) the value of online for branding
and the metrics associated for their brands. In all likelihood, this will Amy Fuller
need to play out in bigger scenarios such as market mix modeling.” MasterCard Group Executive,Worldwide
Consumer Marketing/Global Products & Solutions
The director of research from the IAB, Mr. Laszlo, supports some
MasterCard Worldwide,
level of standardization, as he told eMarketer in an interview. “The
financial services marketer
market as a whole should start to narrow down the total number
of metrics,” he explained. “There are so many different things to “There really isn’t a standardized way of looking at brand health,
measure that it’s hard to say which metrics are the best to use.” online or offline. Rather than trying to standardize, why not develop
a few different ways of looking at brand health?” Full Interview
Representing the publisher point of view is Ms. Horan of the OPA.
“In the long run,” she noted in an interview with eMarketer, “would Curt Hecht
it be great for us to have a single standard to measure the brand President
impact of online advertising—something that’s interchangeable Publicis Groupe’s VivaKi Nerve Center
between all the media? Yes. I hope it happens in my lifetime.” (includes Digitas, Starcom MediaVest
Group, ZenithOptimedia and Denuo)
Media agency executives, who are tasked with much of the
“I don’t think it would be a bad idea. It could be accomplished
hands-on work that goes into measurement, were similarly
through a research consortium or through agency networks.
predisposed toward standards. Speaking passionately in favor of
VivaKi and The Pool is an example. (The Pool is a group of online
consistent standards for brand measurement was Cary Tilds of
video suppliers such as Hulu and CBS and marketers that include
Mindshare-Team Detroit. “Consistently measuring tactics for
Allstate and Purina that are developing a replacement for the
digital advertising for their branding effect provides the marketer
standard preroll video ad unit.) There is an opportunity to share
the most relevant information,” she said in an interview with
insights and data with other companies. I think standards would
eMarketer. “Random acts of measurement are OK, but they don’t
help everybody in the industry.” Full Interview
provide a consistent approach. If you are consistent, you can
improve and evolve.”
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Working Toward the Solutions for Online Brand Measurement
Jeff Lanctot In an interview with eMarketer, ANA CEO Bob Liodice underscored
the need for marketers to look at the whole media pie when
Chief Strategy Officer
assessing online brand measurement. Said Mr. Liodice, “Our
Razorfish,
Microsoft Corp.-owned digital agency concern is about brand measurement in total, online or offline. The
vehicle or approach to brand measurement is far less relevant
“The market as a whole should start to narrow down the total than what it is we are trying to accomplish.”
number of metrics. There are so many different things to He continued: “As we bundle and integrate marketing, rather than
measure that it’s hard to say what the best metrics are. You run asking whether online, television, radio, print or outdoor
the risk of having so much data that you can’t draw the story out advertising is working, we should ask, how the heck are all of
of it.” Full Interview these things working together? It’s not effective to look at digital in
isolation from the rest of the marketing mix.”
Wenda Harris Millard
President Many in the online ad industry, from all different vantage points,
Media Link LLC, brand consulting firm feel strongly that measurement success will only come if the
Immediate Past Chair–Interactive Internet adopts the very same metrics used by traditional media.
Advertising Bureau
“It’s not the industry that would create standards, it’s an independent
research firm that would work with the IAB. It’s probably a couple of
“The best thing would be to measure online
years off. Nielsen is the likely one to get that going.” Full Interview branding the way we measure offline
branding: awareness, reach, impact,
recognition—coupled with response all the
Integrate Online and Offline Measurement and Metrics
Beyond developing uniform standards within the online ad
way to purchase.” —Jim Sterne, founder of the
measurement world, there is the larger issue of integrating eMetrics Marketing Optimization Summit and chairman of
measurements across online and offline media. the Web Analytics Association, in response to an
eMarketer poll fielded by InsightExpress, April 2009
In the previous section, we reviewed survey data from the 4A’s and
ANA that showed clients and their agencies are not where they’d
like to be in terms of integrating measurement data from their Embrace Traditional Media Metrics
offline and online advertising efforts. In their related white paper, Having established that standards for online measurement would
however, the 4A’s and ANA offered up some concrete advice for be helpful and that there is a growing need to integrate online and
dealing with the integration issue, including these six tips: offline metrics, this raises a serious question: Would it make sense
for the Internet to adopt the standard media planning and buying
1. Educate yourself. Become as educated as possible on digital metrics of the traditional world—namely reach, frequency and
media; network with others who have paved the way by GRPs? There is a growing consensus in the industry that yes, it
successfully incorporating digital into their campaigns. does make sense.
2. Set goals and objectives. Set clear goals and understand
your business objectives upfront.
“[We need] basic reach, frequency and GRP
3. Understand your consumer. Think about the consumers you forecasts for planning and post-campaign
are trying to reach, and understand where they go online and analysis that have some semblance to
what they do there. reality, [so there is an] ability to reconcile.”
—Young-Bean Song, senior director of analytics and the
4. Be willing to test and learn. Understand that early pilots and
“failures” can lead to big wins later. Reserve at least a small Atlas Institute for Microsoft Advertising, in an interview
portion of your budget for experimentation. with eMarketer, April 16, 2009
5. Integrate your planning. Digital and traditional media must In the interviews eMarketer conducted with industry leaders for
be planned together, not in silos. Do not regard digital as a this report, a strong majority conceded that it is now time for the
separate “add-on.” Keep in mind that no media vehicle or Internet to embrace the GRP, reach and frequency metrics long
marketing discipline succeeds on its own. used by television, radio and print advertisers. But there were also
6. Measure. Commit to metrics and analytics, and use them to make a few dissenters.
your business case.Agree upfront on the definition of success.
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Working Toward the Solutions for Online Brand Measurement
The resistance thus far to GRP adoption has been twofold. First, Many in the research field agree that GRPs should be adopted
those pioneers who helped create the market for online for online.
advertising—envisioning its limitless possibilities for interaction and
“I think one would be crazy to not continue to use that [GRP]
engagement—are loath to shackle it down with the old metrics of
metric,” said Gian Fulgoni, chairman of comScore. “What it’s telling
the past. Second, formulating and applying GRPs to the online space
you is how many times you reached the person with an ad, and
is just plain difficult. As David Smith of Mediasmith told eMarketer in
how many people you’ve reached. I mean, if you don’t have that, I
an interview, “The [GRP models for online advertising] already exist,
don’t see how you can really understand the intricacies of your
but most people just don’t understand the math.”
media plan or compare it across media…. That’s the way media is
But now the tide is turning and the pressure is on. GRPs are sold. We produce GRP measures directly analogous to TV today,
making their way online. directly analogous to print, to radio.”
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Working Toward the Solutions for Online Brand Measurement
Dissenting Opinions on the GRP Issue Also from the agency perspective,Yaakov Kimelfeld, vice president of
Not everyone agrees with the GRP position. In an interview with digital research and analytics director at MediaVest USA, worried that
eMarketer, senior marketer Ms. Fuller of MasterCard stated her GRP metrics overemphasize demographics at the expense of
reasons for taking the opposing view. potentially more meaningful determinants such as attitudes and
behavior. Mr. Kimelfeld wrote in an August 1, 2008, article in
“I’m not looking for the same metrics,” such as GRPs, Ms. Fuller
MediaPost,“Focusing on reach and frequency limits a digital
explained. “We have different expectations…. We use digital
campaign’s ability to serve ads based on specific audience
media to tell more complicated stories and drive engagement.
characteristics other than demographics, such as previous purchases
The expectation for offline media is to deliver reach and
and online behavior. In the end, these narrower criteria may be more
frequency. I think they operate differently; I’m not looking for
effective in predicting future purchase behavior than demographics.”
identical metrics [online].”
Finally, in an interview with eMarketer, Jim Dravillas, senior partner-
From the research side, Mr. Gibs of Nielsen felt the GRP had lost its
executive director of analytics at Neo@Ogilvy, posed a question for
relevance in the highly fragmented media world in which we live.
proponents of the GRP: “Why does the Internet have to model
“The GRP metric is like a 50-year-old metric,” he said. “It’s very itself on traditional modes of measurement? The offline media has
well-designed for when there was a world of three TV networks. to adapt to the digital environment. My end goal is not the GRP
It’s less well-designed for a world where there are hundreds and itself, my end goal is the impact.”
hundreds of TV networks and millions and millions of Websites.”
However, Mr. Dravillas conceded that traditional metrics do have
Instead of reverting back to traditional GRPs, Mr. Gibs argues that a place at the table. “The GRP is still very helpful from a planning
the industry should seek to build a new type of currency model for standpoint, but not as a success measure. I want to try to reach
Web measurement, one based on quality of data and as many of my target audience as I can in the most effective
transparency: “Transparency means that the clients need to know way possible.”
exactly what goes into it [the model] so they can trust the
numbers that are being used for the buying [process].” How to Make the GRP Work for Online
The GRP metric is basically a blunt measure for how many people
Another problem cited about GRPs is that they are too limiting. A
your advertising reaches, and at what level of frequency.
marketer relying solely on reach and frequency would fail to
capture the whole picture of exposure to online advertising, Mr. Song of the Atlas Institute said it best in his interview with
particularly the potentially rich information that comes from online eMarketer: “The problem with the online impression—which is the
searches, social sites, mobile activity or video streams. Speaking closest thing to a GRP right now—is that it doesn’t have a
with eMarketer from the agency perspective, Mr. Lanctot of denominator. What I mean by that is, how many impressions did I
Razorfish indicated that traditional media mix models, including deliver to the universe of women 18 to 45? That’s the
the reliance on GRPs, are falling apart. denominator. The GRP is just the numerator. How many gross
impressions did I deliver? [Online,] it’s hard to know what the
“Looking beyond measurement within a specific media channel, the
denominator is. It’s hard to know how many of those impressions
media mix models begin to break when you include digital in the
that you served actually went to women 18 to 45. This is an area
mix,” said Mr. Lanctot. “Consumer behavior online and on mobile
where the TV and print folks actually have an advantage.”
devices is all over the place. Senior marketers are opening their
eyes and saying, ‘OK, it’s time to forget everything that I knew.’” From a branding perspective, Mr. Song sees marketers knowing
more about their audience in traditional media than they do
He suggested that the solution lies with a hybrid approach, using
online. “You actually know less in the online space with the same
both panels and server-side data. He anticipates that the
amount of data than you would in the offline space. You don’t
aggregation and merging of different data sets will get us closer to
know what the frequency is going to be. You don’t know what
the truth and increase the trust advertisers have in the data results.
percentage of the target audience you’re going to reach. The only
thing you know that’s in common is the number of impressions.”
In his interview with eMarketer, Mr. Song went on to say that Atlas
and other groups, working in collaboration, are figuring out ways
to measure the elusive denominator—the total universe of the
target population.
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Working Toward the Solutions for Online Brand Measurement
“We’re not the only ones working on this. It’s also Google, Yahoo!, “Marketers need to understand not only what works
AOL and online networks that have large, registered user bases retrospectively, but how they can use data proactively to make
and ad-serving technology to track everything on a census level better decisions about the audiences they buy and the way they
and all the gross impressions. They will combine data sets to deliver messages,” said Konrad Feldman, CEO and co-founder of
provide traditional advertisers reach, frequency and GRPs. As far Quantcast, in an interview with eMarketer. “When you have a
as I’m concerned, that’s the foundation,” he explained. programmatic way of using that sort of insight across a broad
range of media, you begin to break down barriers.”
Taking another tack on the GRP front is Ms. Tilds, senior vice
president at WPP’s agency Mindshare-Team Detroit. Based on the
notion that online and offline measurement platforms need to “In the case where search has to compete for
“talk” to each other, the agency has developed a new metric called a budget against other activities, it wins, as
the iGRP, or Internet gross rating point. This metric was built to it generally delivers the most efficient
allow for cross-platform measurement between television and returns. Only companies that do attribution
online video buys. Said Ms. Tilds, “The iGRP’s purpose is to confirm
modeling and look at media spends
how to go about determining audience reach and
holistically can allocate budgets
frequency…planning against audience composition.”
appropriately across search, display and
She views the iGRP, currently only used for online video, as merely a other activities.” —Anonymous agency executive
starting point in a long evolution: “The GRP is still very relevant. respondent from eMarketer/InsightExpress poll, April 2009
However, we need to evolve the GRP/iGRP as we evolve the media
delivery and accountability across multiple screens and channels.” The absolute level of ad spending behind interactive has typically
been too small to meet the thresholds required in large and
Get Smart About Attribution Modeling complex media mix models. As Mr. Fulgoni said, “I don’t think
Attribution modeling is all the rage in the marketing community. [media mix models] are sensitive enough to pick up the impact of
Essentially, it seeks to attribute different quantitative weights to online. As time goes by and Internet spending continues to grow,
the various consumer touchpoints in an advertising campaign, these models will become more relevant.”
from banner ads and sponsorships to online video ads, brand
Another challenge with attribution models is the sheer
Website interactions and search activity.
complexity introduced by digital variables in an already complex
As such, attribution modeling is essentially an offshoot of the modeling system.
media mix modeling that traditional advertisers have been doing
for years. Media mix modeling helps advertisers determine which
media inputs will have the most effective (and efficient) impact on
“When models begin to approach the
sales. They rely heavily on databases, which must be synced up to complexity of the reality they’re trying to
provide a holistic view of results. explain, they become just as difficult to
interpret—and insight is lost.” —James B.
But attribution models need to go beyond the limited data-capture
Ramsey, renowned mathematician and economics
capabilities of today’s media mix models and capitalize on the unique
professor at New York University; father of eMarketer CEO
information provided by digital platforms, particularly data relating to
Geoff Ramsey
intent.As Mr. Kimelfeld, analytics director at MediaVest USA,
explained on a phone call with eMarketer, the Internet offers up digital
As Mr. Kimelfeld of MediaVest put it, the biggest challenge with
footprints that can imply intent to act leading to purchase.
attribution models is devising methods for “attributing consumer
In his February 1, 2009, article in MediaPost, Mr. Kimelfeld brought intent manifestations to individual media platforms and campaigns.”
up the example of consumers looking to purchase a car. He wrote,
“The Internet [opens] up a world of searching, price comparison,
consumer reviews and other user resources that have generated
hard data proving that consumers are actively considering the
advertised model—long before they start showing up at the
dealership. Captured on a daily or even hourly basis, these
events…point to the next level of the campaign effects hierarchy,
a more advanced one than branding: They indicate consumers’
intent to act toward the purchase.”
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Working Toward the Solutions for Online Brand Measurement
Several key players in the online advertising ecosystem are rolling ■ Online activity across Websites, search, e-mail, video and mobile
up their sleeves to develop and refine solutions for modeling,
■ Anonymous demographic information at the household level
including the Atlas Institute (part of Microsoft), comScore and
Nielsen Online. ■ Transactional behavior data that can provide definitive results for
Mr. Gibs refers to Nielsen’s version of the concept as “media ROI-minded marketers
allocation modeling,” which applies weights to “each creative or Mr. Knoll provided an example from one of his clients: “A national
placement or whatever. And what’s important is then you can start tourism agency wanted to run a new advertising campaign and
saying, ‘OK, so what’s the role of search?’ and you can layer needed direction on campaign targeting. Drawing on transactional
search on top. You can say, ‘What’s the role of that microsite I and anonymous demographics data from a variety of sources, we
built?’ OK, then you can layer the microsite on top. ‘What’s the role found that consumers who responded the best to the agency’s
of video versus rich media versus standard display?’ OK, then you advertising were single couples, with no children, incomes in the
can layer them on top.” $100k range, and between the ages of 26 and 45. Better data
Ultimately, attribution models should be designed to tightly align means marketers can make business and creative suggestions
data results to the marketer’s key objectives, which in many cases with new data insights. With this information, the agency was
are some sort of sales activity. better armed to target their future campaigns to consumers who
would be the most receptive.”
Mr. Hecht of VivaKi has a slightly different view of the problem and,
therefore, the solution. “The most broken part of Web
[measurement] today is the attitudinal piece,” he said to
Advertising Age on May 18, 2009. He believes “the killer app will be
a sort of always-on brand-health meter” that he could dive into on
a regular basis to gauge online ad effectiveness.
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Working Toward the Solutions for Online Brand Measurement
Doug Weaver, founder and CEO of the Upstream Group, said social “With online video, there is time-based media
media can be like a Richter scale for marketers wanting to gauge buying where time is one component of the
the impact of their entire marketing efforts.
mix. The advertiser is buying a person’s
“For perhaps the first time ever, marketers can put a campaign or attention. I’ve seen very few standards on
a message out into the public consciousness and then really hear what time means.” —Cary Tilds, senior vice
and see its impact,” wrote Mr. Weaver in his May 2009 newsletter. president, Mindshare-Team Detroit, in an interview with
“A brand can throw rocks into the pond and then measure both eMarketer, May 2009
the quantity and quality of the ripples that follow. By all means,
pour your time, money and resources into this channel to really When it comes to measurement of social media and video,
understand the full ROI of all your marketing activity.” advertisers are in the very early stages of connecting the dots.
Marketers are also excited about online video ads. Why? Because
they can offer the sight, sound, motion and emotion of television
ads, and provide better potential targeting and measurability. The
digital nature of online video ads also means they can instantly be
shared with others. For brand marketers looking to engage with
consumers, online video ads provide a variety of metrics,
including time spent. According to LiveRail, consumers watch, on
average, more than 80% of a 30-second online video ad.
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Working Toward the Solutions for Online Brand Measurement
Ken Mallon Those in the research field have their own ideas about what
constitutes engagement. Nielsen, for example, is a big believer in
Senior Vice President–Custom Solutions
and Ad Effectiveness Consulting time spent as a measure of engagement and brand impact. Mr.
Dynamic Logic, research company Gibs of Nielsen put it this way: “The single biggest problem is that
specializing in marketing effectiveness the current measurement methodologies are insufficient to deal
“Identifying scalable ways to track online video can be complicated with the complexities of online advertising. The solution we
and there are special ways to track exposures. There’s also a believe quite strongly in is that measures of advertising online
proliferation of different formats and then there are proprietary should be time-based measures, rather than impression-based
players. Did people turn the sound on, did they stop the ad, did they measures. Instead of buying 100 million impressions on a Website,
rewind or repeat it and if so, how many times?” Full Interview it would be buying X% of a person’s time.”
“There’s a lot of experimentation going on as to ad placement and From the agency side, Cory Treffiletti of Catalyst:SF argues that
format—be it preroll or postroll. I’m not sure anybody has figured time is not only a key measurement online, but that marketers
it out or what counts as engagement with an online video ad. should be adding up all the pockets of time spent with the brand
We’re running video ad tests looking at the impact on brand as a kind of overall engagement metric. As he said in his June 3,
metrics and impact on sales.” Full Interview 2009, Online Spin column in MediaPost, “Time spent across the
entire campaign is the only metric that truly covers all the bases.”
Unraveling Consumer Engagement Metrics Others argue that time spent is insufficient.
Although few in the industry can agree on a common definition of
“engagement” in the context of online advertising measurement, “The key is to compare more than time spent, utilizing the
clearly the Internet offers unique opportunities here given its interactive nature of the engagement unit,” wrote Joe Marchese,
interactive nature. also for Online Spin, in April 2009. “Marketers should look to tie
engagements directly to changes in brand perception, purchase
Marketers, their agencies and a plethora of other industry intent and, in the end, purchase decisions.”
stakeholders are working hard to develop engagement metrics
that can act as proxies for attitudinal or behavioral changes they Mr. Wiener, CEO of 360i, likes the idea of a cost-per-engagement
want to influence. metric, but he also advocates a restructuring of disciplines within
marketing organizations and a concerted effort to stop conflating
“We are in the process of trying to figure out the most effective direct response and branding measurements.
way of attributing shifts in brand health to online activity,” said Ms.
Fuller of MasterCard Worldwide, in an interview with eMarketer. “I believe that coming up with a cost-per-interaction or cost-per-
“The easier part of the equation is measuring engagement. The engagement metric is an important component for a solution,”
question is: How do you get more sophisticated about measuring said Mr. Wiener. “There is no panacea. One of the challenges is that
the quality and impact of brand engagement?” people are looking for the Holy Grail.”
Ms. Fuller added, “We look at time spent on our site and whether
or not people engaged with the games we have there, how
much traffic we’re able to drive and viral/social activities we are
able to generate.”
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Online Brand Measurement: Special Report 46
Working Toward the Solutions for Online Brand Measurement Next Steps: A Seven-Point Plan
Q&A: What is the potential game-changer for online This final section summarizes the next steps for
brand measurement?
the industry in a short, seven-point action plan.
Mark Addicks Once again, in keeping with the community
Senior Vice President, Chief Marketing Officer
nature of this report, the reader is encouraged to
General Mills,
consumer packaged goods marketer add comments and suggestions.
“We’re looking for deeper analytics and to tie them all the way
1. Reorganize and Restructure Your Teams
through to retail. In five, maybe 10 years, consumers will receive
First, marketers need to restructure their organizations so that
custom messages for specific retailers on their phone. They’ll
online marketing reports directly to the CMO. This is the only way
store their preferences and the information will go right into their
that attribution and cross-platform models will be successful.
loyalty card. They will choose where they want to shop and the
offers will follow them there.” Full Interview Second, marketers and their ad agencies need to reorganize their
internal teams and structures to concentrate on the branding
Jon Gibs component of the online measurement process as a separate and
Vice President–Media Analytics distinct process from direct response measurement.
The Nielsen Co.’s Nielsen Online,
provider of online audience measurement Bryan Wiener, CEO of 360i, put it well: “Digital is too often
and analysis synonymous with direct response. CMOs need to look at their
“Media allocation modeling, which analyzes all the elements in a marketing organizations and the way their agency roster is
campaign that contributed to an action, sale or behavior and not organized. If they want digital to be an effective brand-building
simply giving the last click all the credit. Marketers buying or medium, they need to reorganize their departments and have
planning digital media on time-based measures rather than people who understand digital and agencies that understand
impression-based measures.” Full Interview digital. Everything else follows from that.”
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Next Steps: A Seven-Point Plan
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Online Brand Measurement: Special Report 48
Endnotes
Endnote numbers correspond to the unique US Online Advertising Spending Growth, by Format
and Objective, 2008-2013 (% change)
six-digit identifier in the lower left-hand corner
2008 2009 2010 2011 2012 2013
of each chart. The charts from the report are Video 126.5% 43.5% 42.5% 40.5% 48.6% 30.6%
repeated before their respective endnotes. Rich media -0.8% 3.0% 9.4% 12.4% 13.5% 12.0%
Sponsorships -39.2% -17.7% 9.4% 10.8% 13.5% 10.4%
Display ads 9.4% -4.6% 3.6% 4.4% 7.8% 2.2%
102197 | 104363 | 104366 Branding total 8.0% 1.0% 10.4% 12.7% 18.2% 12.4%
E-mail -4.5% -3.2% 2.6% 7.1% 9.6% 10.4%
US Online Advertising Spending Growth, 2007-2013 (%
Search 19.8% 13.4% 13.2% 10.6% 11.2% 10.2%
change)
Lead generation 6.3% 4.8% 9.4% 10.8% 11.9% 8.8%
2007 25.6% Classifieds -4.4% -15.9% -9.7% 5.9% 10.8% 5.1%
2008 10.6% Direct response total 11.8% 6.2% 8.9% 9.9% 11.2% 9.4%
Grand total 10.6% 4.5% 9.4% 10.8% 13.5% 10.4%
2009 4.5%
Source: eMarketer, April 2009
2010 9.4%
104366 www.eMarketer.com
2011 10.8%
Extended Note: eMarketer benchmarks its US online advertising
2012 13.5%
spending projections against the Interactive Advertising Bureau
2013 10.4% (IAB)/PricewaterhouseCoopers (PwC) data, for which the last full
Source: eMarketer, April 2009 year measured was 2008. Online ad data includes categories as
102197 www.eMarketer.com defined by IAB/PwC benchmark—display ads (such as banners),
search ads (including paid listings, contextual text links and paid
US Online Advertising Spending, by Format and
Objective, 2008- 2013 (millions) inclusion), rich media, video (including in-stream, in-banner, in-
2008 2009 2010 2011 2012 2013 text), classified ads, sponsorships, lead generation (referrals) and
Display ads $4,877 $4,655 $4,824 $5,034 $5,426 $5,543 e-mail (embedded ads only); excludes mobile ad spending.
Video $734 $1,054 $1,501 $2,109 $3,134 $4,092
Rich media $1,642 $1,691 $1,849 $2,079 $2,359 $2,641
Sponsorships $387 $319 $348 $386 $438 $484
Branding total $7,640 $7,718 $8,522 $9,608 $11,357 $12,760
Search $10,546 $11,956 $13,534 $14,969 $16,648 $18,340
Classifieds $3,174 $2,671 $2,412 $2,554 $2,831 $2,976
Lead generation $1,683 $1,764 $1,930 $2,138 $2,393 $2,604
E-mail $405 $392 $402 $431 $472 $521
Direct response $15,808 $16,783 $18,278 $20,092 $22,343 $24,440
total
Grand total $23,448 $24,500 $26,800 $29,700 $33,700 $37,200
Note: numbers may not add up to total due to rounding
Source: eMarketer, April 2009
104363 www.eMarketer.com
102197
104363
104366
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Online Brand Measurement: Special Report 49
Endnotes
Oppenheimer & Co. Inc., February 2009 Search* 45.0% 48.8% 50.5% 50.4% 49.4% 49.3%
-2.0% Display ads** 20.8% 19.0% 18.0% 17.0% 16.1% 14.9%
UBS, February 2009 Note: *paid listings, contextual text links and paid inclusion; **banner ads
only, excludes rich media and video
-5.0% Source: eMarketer, April 2009
Cowen and Co., May 2009 104600 www.eMarketer.com
-6.0% 104597
104600
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Online Brand Measurement: Special Report 50
Endnotes
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Online Brand Measurement: Special Report 51
Endnotes Related Information and Links
102827 360i
http://www.360i.com/
Interactive* Advertising's Effect on Brand Metrics in
the US, by Site Category, January 2009 vs. August 2008 Aberdeen Group
(% change in delta**)
http://www.aberdeen.com/
Aided Online Message Brand Purchase
brand ad assoc- favor- intent
aware- aware- iation ability Acxiom
ness ness
http://www.acxiom.com
Branded content sites 63% 7% 8% 40% 0%
(OPA members) AdMedia Partners
MarketNorms® database -11% -8% -10% -18% -13%
http://www.admediapartners.com/
Portals -9% -3% -6% -11% 0%
Ad networks -21% -7% 0% -18% -40% AdRelevance
Note: *involves the audience without having them click through or leave http://www.adrelevance.com
the Webpage; **delta defined as point difference in exposed vs. control
groups
Source: Online Publishers Association (OPA) and Dynamic Logic, "Improving
Advertising Age
Ad Performance Online: The Impact of Advertising on Quality Content http://adage.com
Sites," January 8, 2009
102827 www.eMarketer.com Advertising Research Foundation (ARF)
102827
http://www.thearf.org/
Extended Note: Branded content sites–respondents with
campaigns running for the past three years through Q3 2008. Adweek
MarketNorms® database–respondents with campaigns running http://www.adweek.com
for the past three years through Q2 2008.
Alterian
http://www.alterian.com/
Atlas Institute
http://www.atlassolutions.com/
Catalyst:SF
http://www.catalystsf.com
CMO Council
http://www.cmocouncil.org/
Compete
http://www.compete.com
comScore
http://www.comscore.com/
Credit Suisse
http://www.credit-suisse.com
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Online Brand Measurement: Special Report 52
Related Information and Links
DoubleClick LiveRail
http://www.doubleclick.com http://www.liverail.com
Eyeblaster MarketingProfs
http://www.eyeblaster.com http://www.marketingprofs.com/
Forbes MarketingSherpa
http://www.forbes.com/ http://www.marketingsherpa.com/
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Online Brand Measurement: Special Report 53
Related Information and Links
PROMO magazine
http://promomagazine.com/
PubMatic
http://www.pubmatic.com/
Quantcast
http://www.quantcast.com/
Razorfish
http://www.razorfish.com/
Rubicon Project
http://www.rubiconproject.com/
Sapient
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Online Brand Measurement: Special Report 56