Australia Digital Future in Focus 2014

© comScore, Inc. Proprietary.

Australia

Digital Future in Focus 2014

Gian Fulgoni

Co-Founder & Chairman Emeritus

comScore, Inc.

© comScore, Inc. Proprietary. 2

Topics

Australia Digital Highlights

Global Standing

Demographics

Top Properties

Ad Expenditures

Evolution of Digital Advertising

Beyond the Click

Campaign Optimization

Viewability

Cross-Platform


Data sourced from comScore’s global panel of 2 million Internet users

2 Million Person Panel

360°View of Person Behavior

CENSUS

Unified Digital Measurement™ (UDM)

Patent-Pending Methodology

1 Million Domains Participating Adopted by 80% of Top 100 Global Media Properties

PANEL

PERSON-Centric Panel with

WEBSITE-Census Measurement

Web Visiting & Search Behavior

Online Advertising Exposure

Demographics, Lifestyles & Attitudes

Media & Video Consumption

Transactions

Online & Offline

Buying

Mobile Internet Usage & Behavior

PANEL

V0411 Plus 5 Million TV Set Top Boxes for 3-Screen Measurement


Worldwide Desktop Internet Audience Reaches 1.63 Billion People

The U.S. is no Longer the Centre of the Online Universe

66%

14%

34%

86%

1996 2014

Outside US

Asia Pacific

41%

Europe 26%

North America

14%

MEA 9%

Latin America

10%

Internet Audience 15+ accessing Internet from a Home or Work PC

Source: comScore Media Metrix, January 2014

Outside US


35.8 31.2

23.4 19.5

17.1

North America Europe Latin America Asia Pacific Middle East - Africa

Time spent and user growth across regions

Asia Pacific is largest and still growing, Lat Am has highest percent growth

Global Average:

24.9 Hours a Month

640

409

215

132 135

666

427

220 167 153

Asia Pacific Europe North America Latin America Middle East -Africa

Jan-13

Jan-14

+4%

+4%

+2%

+27% +13%



Monthly Unique Visitors (MM)

Monthly Hours Per Visitor


Desktop online audience across the globe grew by 6.5% vs YA.

China comprises 22% of global audience aged 15+

354

195

82 74 68 67

53 43 39

30 26 25 25 24 20 18 18 15



Monthly Unique Visitors in January 2014

(Millions)

Australia has world’s 18th

largest Internet population

Brazil and India

post highest growth


Australia ranks higher than India and China in terms of Average Time

Spent per person

45 44 44

33 32 30 29

28 27 26

25 24

22 22 21 20

17

12



Monthly Average Hours Per User

in January 2014

Australia ranks 14th Global Average:

24.9 Hours a Month


Online Demographics across Asia Pacific: India, China and Singapore

skew much younger. Australia, Japan and NZ skew older

28%

20%

15%

37%

27%

19%

31%

18%

18%

38%

32%

20%

21%

19%

22%

16%

25%

20%

13%

18%

18%

6%

10%

18%

7%

24%

27%

3%

6%

23%

0% 20% 40% 60% 80% 100%

Singapore

New Zealand

Japan

India

China

Australia

Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+


Source: comScore Media Metrix, September 2013


Australian online demographic composition more in line with

developed markets

19%

15%

16%

17%

19%

20%

19%

18%

18%

20%

19%

23%

19%

20%

20%

19%

18%

23%

18%

18%

24%

26%

24%

27%

23%

0% 20% 40% 60% 80% 100%

United Kingdom

Japan

Germany

France

Australia





Relative to total country population, persons under 35 over-represented in

Australian online user population. Online represents a powerful way to reach

younger segments who are lighter TV viewers

17%

19%

17%

20%

18%

20%

17%

18%

32%

23%

TotalAustralia

Population

AustraliaOnline

Population





Top Selected Web Properties in Australia

14,725

13,669

9,395

9,033

5,868

4,970

4,773

4,763

3,636

2,463

1,668

1,629

1,509

1,426

Google Sites

Microsoft Sites

Yahoo Sites

Facebook

Apple Inc.

eBay

Wikimedia Sites

Glam Media (Lifestyle)

Amazon Sites

Commonwealth Bank

Seek(Jobs/Education)

Abc (Media)

Realestate.com.au

Vic.gov.au

187.2

103.4

78.2

344.1

4.2

35.1

11.1

12.8

19.3

10.0

9.8

6.4

17.1

8.4

Unique Visitors (000) Minutes per Visitor



88%

82%

56%

54%

35%

30%

29%

29%

22%

15%

10%

10%

9%

9%

Reach


Are we Social, Australia?



94.0

90.7

88.2

87.9

86.7

86.3

84.1

United States

Canada

United Kingdom

Australia

Germany

France

Japan

30.9

30.3

32.9

34.7

25.1

26.5

8.8

Social Networking % reach

of online population Average Minutes

per user per day


Total advertising spend by medium reveals the relative strength of

Digital in the UK, which exceeds TV by a wide margin. Digital almost

equal to TV in Australia but lags in U.S.

26% 23% 24%

31% 26%

39%

29% 39%

22%

13% 12% 16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Australia United Kingdom United States

Other

Internet

TV

Print

Source: ZenithOptimedia Advertising Expenditure Forecasts 2013

Percent of Ad Expenditures by Medium


2012 online advertising percent spend by format: Branding

advertising (i.e. Display) much more developed in U.S. while Australia

and UK have room for improvement

26% 25% 37%

74% 75% 63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Australia United Kingdom United States

Search andOthers

Display

Source: IAB Australia, UK and US Data 2012

12.5%

Y/Y Growth

15%

Y/Y Growth

18%

Y/Y Growth

Percent of Ad Spend

by Format

© comScore, Inc. Proprietary. © comScore, Inc. Proprietary.

The Evolution of Digital Advertising:

From Direct Response to Branding


comScore Has Worked Hard to Establish More Value for Digital Ads

Whither

the

Click?

The irrelevancy of CTR

Campaign

Essentials™

Audience Verification

AdXpose®

Ad Viewability

Media

Metrix®

Audience

Measurement

Cross-Platform

Measurement

Validated

Campaign

Essentials™

Advertising Validation

2000 2007 2010 2011 2012 Future


Journal Of Advertising Research June 2009

comScore’s “Whither the Click?”

200+ comScore studies conducted in the U.S. to assess behavioral

impact of paid search and online display ads.

Analytical design: Exposed vs. Unexposed panelists

Findings:

17

Even with Click Rates of Only 0.1%,

Display Advertising can Lift:

• Site visitation

• Trademark search queries

• Online and offline sales


$-

$0.100

$0.200

$0.300

$0.400

$0.500

$0.600

0.00% 0.20% 0.40% 0.60% 0.80%

Sale

s L

ift/

HH

in

$

CTR

A negative pattern emerged between

Sales Lift per Household and Click

Through Rate (i.e., as CTR increases,

sales decrease)

R2 = 0.039

The regression analysis indicates

this relationship is not statistically

significant, therefore there is no

significant relationship between CTR

and Sales

A correlation analysis indicated no significant relationship between

click-through rates and offline sales lift

Sale

s L

ift/

HH

in

$

Click-through Rate


$994

$9,905

$1,263

$11,550

Online Offline

Unexposed Exposed

Dollar Sales Lift Among Households

Exposed to Online Advertising

% Lift: 17%

% Lift: 27%

Despite click rates of only 0.1%, display ads can successfully lift

retailer sales – both online and offline

Source: “Whither the Click?” 139 comScore studies in the June

2009 Journal of Advertising Research

Exposure to display ads

doesn’t just impact online

sales – it lifts in-store sales as

well

The absolute dollar lift in

offline sales is 5x higher than

the lift in e-commerce sales

The click is misleading as a

measure of campaign

effectiveness

Conclusions


Capturing Branding Ad Spending by Improving Campaign Delivery

A Leading Branding Advertiser’s Requirement


Post Buy Analysis: Distribution of Impressions Delivered

What proportion of impressions landed on the

media target with less than 5 frequency, the desired level?

8 different brand campaigns

Spending from $0.4MM to $2MM CPM Range from $5.70 to $13.00

21

50%

4% 11%

5% 10%

24% 26% 18%

15%

26%

30%

14% 8%

7% 13%

14%

28%

65% 47%

77%

62%

53%

59%

58%

7% 5% 12%

4%

20% 16%

2% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hit Target with <=4Frequency

In US But Not Target

Frequency >=5

Outside US

Hit Target with

Frequency >=5


In-Target: 100% isn’t Realistic

Demographic

data becomes

outdated

Not all

registration

data is accurate

More than 60%

of computers have

multiple users, so

cookies can show

ads to the wrong

person

Some targeting

infers demography

based on content

consumption

In-Target Demographics: 100% isn’t Realistic


However, overall average in-target rate today is ONLY 44%, with

significant variance seen across verticals

% In-Target: Overall* and by Select Advertiser / Vertcal** Source: comScore vCE Benchmarks, Q1 2014, U.S.


As the age and gender target narrows, the chance of hitting it drops

% In-Target by Age/Gender* Source: comScore vCE Benchmarks, Q1 2014, U.S.


Cookie deletion is a global reality and causes frequency to be higher than

planned since ad servers keep delivering impressions to browsers that have

had cookies deleted

Ad Server Cookies Web Site Cookies

Country

Percent of

computers

deleting

Average # of

cookies per

computer for

same

campaign

Percent of

computers

deleting

Average # of

cookies per

computer for

same web

site

Australia 37% 5.7 28% 2.7

Brazil 40% 6.6 33% 2.5

U.K. 35% 5.9 27% 2.7

U.S. 35% 5.4 29% 3.5

Monthly Cookie Deletion Rates


Campaign delivery can be monitored and optimized in-flight. Publisher 1 is

delivering results superior to Publishers 2 & 3 and would receive a greater

share of ad spend

In-Flight Campaign Optimization by Publisher

Based on Cost and Effectiveness

Using comScore Campaign Essentials

Brand X - Q3/Q4

Publisher Avg

Frequency

Impressions

in Target

Lift in

Awareness CPM

1 3.5 24.5% 5.74 $2.44

2 3.0 16.9% 0.55 $9.08

3 8.4 23.5% 0 $8.62


Real-Time: In-flight optimization of Reach, Frequency and Targeting

has driven rapid gains in marketing ROI for Kellogg’s

Year 1 Year 2 1H Year 3

ROI

3X

6X

Year 1 Year 2 1H Year 3

ROI 2X

5X

Brand 1 ROI Brand 2 ROI

Increase in ROI from Improved In-Flight Targeting


The Viewability of Digital Campaigns


Arguably the Most Important Digital Advertising Initiative To Date:

Making Measurement Make Sense (3MS) Mission

Improve reporting of ad exposure

Bolster confidence that ads delivered are

actually viewable:

50% of pixels in view for 1 second


The four key aspects of all Digital Advertising that can be

improved ……

Viewability Brand Safety Targeting

Accuracy Fraud


In-View: 100% isn’t Realistic

User leaves page before

1 second User’s browser isn’t

on full-screen setting

Non-human traffic drives

up impression counts,

when a person never

actually saw the ad

In-View: 100% isn’t Realistic


However, overall average in-view rate is ONLY46%, with variance seen

across verticals, though spanning a smaller range than in-target

% In-View: Overall* and by Select Advertiser / Vertical** Source: comScore vCE Benchmarks, Q1 2014, U.S.

.


Premium Publishers Boast Higher Average In-View Rates than Ad

Networks/Exchanges

© comScore, Inc. Proprietary. 34 40% improvement in viewability generating 75% increase in sales impact

Advertisers get huge return from increasing viewability: A 40%

increase in viewability drives a 75% increase in in-store sales lift for

Kellogg’s

Sales Lift Index In-Store Sales Lift Indexed to 100 for Less Than 50% Viewability of Impressions

Less Than 50%Viewability

At Least 70%Viewability

100

175


Using comScore vCE, campaign delivery can be monitored and optimized

in-flight. Publisher 1 is delivering results superior to Publishers 2 & 3 and

would receive a greater share of ad spend

In-Flight Campaign Optimization by Publisher

Based on Cost and Effectiveness

Brand X - Q3/Q4

Publisher Avg

Frequency

Impressions

in Target

Impressions

in View

Lift in

Awareness CPM

1 3.5 24.5% 83% 5.74 $2.44

2 3.0 16.9% 91% 0.55 $9.08

3 8.4 23.5% 71% 0 $8.62


comScore and Google partner to offer actionable audience metrics for brands:

vCE to be imbedded in Doubleclick ad server

“simplicity and

actionability”

“tipping point”

“greater scale and

efficiency”


validated Media Essentials™ provides media sellers with the insights

they need to evaluate ad inventory across their site or network of sites

Audience

Viewability

Engagement


The Future:

The Importance of Cross-Platform Measurement


401 429

100

446

124

December 2010 December 2013

Total digital media consumption in U.S. has nearly doubled in the past

three years, led by massive growth in smartphone engagement

999

502

+7%

+99%

+344%

N/A

Total U.S. Internet Usage in Minutes (Billions) by Platform Desktop, Smartphone and Tablet

Source: comScore Media Metrix Multi-Platform, December 2013

Note: Dec-2010 Mobile is estimated based on earliest observed comScore smartphone

engagement data calibrated by number of smartphone users at that time


Engagement for many content categories is Incremental to

Desktop, but for a few it’s Cannibalizing

7.9 9.5

1.7

4.3

1.0

May 2012 U.S. May 2013 U.S.

3.2

2.1

0.8 2.6

0.4

May 2010 U.S. May 2013 U.S.

Sports Weather

Total U.S. Internet Usage in Minutes (Billions) by Platform Desktop, Smartphone and Tablet

Tablet

Phone

Desktop

Tablet

Phone

Desktop


Research Lab: A Look into the Future

Billion Dollar


4hr 19min 4hr 28min 5hr 6hr 7min

50 min

59 min

55 min 51 min

40 min

47 min

TV Only TV + PC/LaptopOnly

TV + PC/Laptop +Mobile Only

TV + PC/Laptop +Mobile + Tablet

More Screens = More Time Spent on Every Device

Average Time Spent Per Day Following Olympics

4hr 19min

5hr 18min

6hr 50min

8hr 29min

TV

Only TV +

PC/Laptop

TV +

PC/Laptop +

Mobile

TV +

PC/Laptop +

Mobile +

Tablet

Tablet

Mobile PC/Laptop

TV


comScore Multi-Platform Measurement

Completed Dec 2013

Five-Platform Measurement of

Unduplicated Audiences & Ad

Campaigns at Content / Device Level

TV

Radio

Desk/Laptop, Smartphone, Tablet

31 combinations

Hybrid Methodology

Single-Source Calibration

Census Digital & TV

IP Address & Cookie Data Integration

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=MKWJN6LYhqSc7M&tbnid=_9iilkd1jPeXzM:&ved=0CAgQjRwwAA&url=http://www.theguardian.com/football/2009/jun/23/espn-setanta-premier-league-channel&ei=9VNpUqmrHKWr2AXS-IHoCQ&psig=AFQjCNHCZ7zpl_u8amh5A1nWzEh2icAcew&ust=1382720885507509


10%

20% 22%

12% 15%

9%

32%

41%

Random Blueprint

% A18-49 Exclusive Weekly Reach by Platform Combination based on:

TV-Radio TV-PC-Radio TV-Smartphone-Radio TV-PC-Smartphone-Radio

comScore

Actual

Random

Assumptions

Platform Duplication is Far From Random

44

Source: Project Blueprint May 2013

Based on total media usage

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=MKWJN6LYhqSc7M&tbnid=_9iilkd1jPeXzM:&ved=0CAgQjRwwAA&url=http://www.theguardian.com/football/2009/jun/23/espn-setanta-premier-league-channel&ei=9VNpUqmrHKWr2AXS-IHoCQ&psig=AFQjCNHCZ7zpl_u8amh5A1nWzEh2icAcew&ust=1382720885507509


Key Takeaways

Moving from clicks to viewability has boosted the value of

publishers’ digital advertising

In-flight campaign optimization of viewability, targeting and

frequency is being demanded by advertisers and promises to

accelerate the shift of branding ad spending to digital

It can be expected that Publishers’ CPMs will increase as

advertisers realize the benefits of improved visibility and

increased sales lift

comScore vCE and vME provide viewability-based services

to advertisers and publishers designed to deliver additional

value to both parties

The future of media planning and analysis requires cross-

platform measurement


Thank You!

For a copy of presentation please email:

[email protected]

Australia Digital Future in Focus 2014

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