Planning Audience Reach with ‘Adjusted Unique’. by MediaMind.

Benchmarks H1 2011

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2

The Key Points

Measuring Online Reach and Frequency

Adjusted Unique

Linking Campaign Size and Reach

Linking Reach and Effectiveness

Conclusion

Regional Benchmark Tables

Australia & New Zealand

East Asia

Europe

Latin America

Country Benchmark Tables

Table of Contents3

4

5

6

8

10

11

18

56

57

Argentina

Australia

Austria

Belgium

Brazil

Canada

Denmark

Dubai

Finland

France

Germany

Greece

Hong Kong

India

Ireland

Israel

Italy

Japan

Korea

Malaysia

Mexico

Netherlands

New Zealand

Norway

Philippines

Poland

Portugal

Romania

Singapore

South Africa

Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

UK

United States

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

Middle East & Africa

North America

South Asia

11

12

13

14

Verticals Definitions

Metrics Definitions

3

Planning Audience Reach with ‘Adjusted Unique’

The Key Points

1 One of the basic measures of any campaign is the number of unique users it reached.

2 Until now, reach measurement was inaccurate due to cookie deletion that overestimated the number of unique users by threefold.

3 Traditional reach metrics were based on simple cookie counting, such that users who deleted browser cookies were double counted.

4 Now, MediaMind has developed a breakthrough in online measurement by accurately measuring reach, overcoming the cookie deletion issue.

5 MediaMind’s newly developed ‘Adjusted Unique’ metric was accredited by the Media Rating Council (MRC) as IAB compliant for measuring reach.

6Using ‘Adjusted Unique’, MediaMind created a framework to help advertisers assess the number of impressions they need to reach their desired audience.

• Reaching 10 million unique users in the US would take about 100 million impressions.• In Germany, France, the UK and Spain, reaching 10 million unique users would

take about 120 million impressions.

4


Measuring Online Reach and FrequencyOne of the basic and most important metrics for any campaign, online or offline, is the number of users it reaches and the average frequency. This is quite obvious for branding purposes; higher reach increases brand awareness. Even for direct response purposes, the pool of users reached represents the group of users with the potential to convert.

Despite the importance of reach and frequency, these metrics were often set aside in favor of the interactive metrics of clicks, engagements and conversions. There are two main reasons for this:

• Simple cookie based measures of reach and frequency have proved unreliable due to over counting caused by cookie deletion.

• Interaction metrics were thought to be more advanced than reach and frequency and that online ‘everything can be measured’.

Now, MediaMind has developed a breakthrough in online measurement, with the new ‘Adjusted Unique’ metric. ‘Adjusted Unique’ detects cookie deletion by users, and statistically adjusts for over-counting. This new metric sets a new industry standard for accuracy of reach and frequency measurement, and was accredited by the Media Rating Council (MRC) as IAB compliant for measuring reach. ‘Adjusted Unique’ has enabled MediaMind to develop a framework to help advertisers assess the number of impressions they need to reach any size of audience.

Furthermore, new research shows that reach is an effective measure of campaign performance. This research shows that most users do notice online ads and that these ads translate to higher search activity, site visits and purchases.

5


Traditional cookie counting methods simply count all cookies. However, after a user deletes his or her cookie, a new cookie is placed in his browser and therefore he is counted again as a new user. comScore estimates that 33% of users delete their third party cookies (cookies used by ad servers) during a period of one month. Furthermore, the research firm has found 5.1 third party cookies on average in a browser over one month1. The prevalence of cookie deletion means that simple cookie measures of reach largely overestimate the correct number of unique users.

The new ‘Adjusted Unique’ overcomes cookie deletion. The methodology behind the metric has been thoroughly tested for accuracy and was accredited by the Media Rating Council (MRC) as IAB compliant for measuring reach. ‘Adjusted Unique’ sets a new

industry standard for accuracy in measuring reach, and enables advertisers a new level of accuracy when analyzing the effectiveness of their campaigns.

What is the average over-counting of the simple unique cookie counting methods? Comparing the number of unique users measured by simple cookie counting to the adjusted number of users using ‘Adjusted Unique’ shows the average over-counting of reach. The results shown in the chart below indicate that simple cookie counting overestimates the number of users by a factor of between two and three, for campaigns with a duration of 15-60 days. Furthermore, in continental Europe, in countries like Germany, Spain and France cookie deletion is the least prevalent, while in the US and Canada it is the most prevalent.

Adjusted Unique

1 comScore, Open White Paper, Proposal For a New Person-Centric Measure For Web Site Server Measurement in the U.K.

How does the new metric work? MediaMind’s ‘Adjusted Unique’ uses a sophisticated proprietary statistical algorithm to estimate the correct number of unique users. The algorithm identifies all users who have not deleted their cookies and their average frequency. For a large group of users, the average frequency for users who deleted cookies and for users who have not deleted cookies is similar. Therefore, dividing the impressions by average frequency delivers a good approximation of the true number of unique users.

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Germany

2.2 2.2 2.3

2.6 2.6

3.0 3.0

2.4

Spain France Other UK Canada United States

Australia

Ove

r-C

ou

nti

ng

Mu

ltip

lier

Source: MediaMind Research. Data: May 2010 to January 2011. Campaigns with a duration of 15-60 days.

Over-Counting with Simple Cookie Counting

6


Campaign Size and Reach in the United States

Linking Campaign Size and ReachHow many impressions do you need in order to reach 10 million users at least once? In the US, it would be about 100 million impressions, on average. In Germany, France, the UK and Spain it would take about 120 million impressions.

Reach and frequency depend on many variables such as the number of publishers, the publisher’s audience, the campaign’s audience focus, the size of the campaign, etc. Therefore, larger campaigns tend to have higher variability in reach as compared to smaller campaigns.

The chart above and the chart below present the link between the number of impressions in the campaign and the number of users reached for various countries. For this analysis, the new ‘Adjusted Unique’ metric was used in order to overcome the over-counting of users who were exposed to the campaign and estimate the true number of online users.

The analysis shows that for smaller campaigns, with up to 100 million impressions, the points tend to be concentrated tightly around the trend line, which means that ‘campaign size’ is a good predictor of reach. However, as campaigns grow larger, variables such as the number of publishers tend to kick in, and therefore advertisers can get high or low reach with the same number of impressions. For example, campaigns with the aim to reach up to 15 million unique users, advertisers can use this data to assess the investment that they need to make to reach their audience.

45M

40M

35M

30M

25M

20M

15M

10M

5M

0M0M 50M 100M 150M 200M 250M 300M 350M 400M 450M 500M 550M 600M 650M 700M

Campaign Impressions

Ad

just

ed U

niq

ue

Use

rs

Source: MediaMind Research. Data: May 2010 to January 2011.

7


Worldwide Campaign Size and Reach

25M

20M

15M

10M

5M

0M0M 20M 40M 60M 80M 100M 120M 140M 160M 180M 200M 220M 240M

Campaign Impressions

Country

Ad

just

ed U

niq

ue

Use

rs

Australia

Canada

France

Germany

Spain

UK

Source: MediaMind Research. Data: May 2010 to January 2011.

As expected, the size-reach curve exhibits diminishing returns, such that for the first million impressions, every impression is more likely to reach a ‘fresh’ user as compared to an impression after the first 100 million. Still, for every country out of the seven countries that were examined in this analysis, the curve looks different due to size, concentration of publishers and many other factors.

8


Linking Reach and EffectivenessWhile direct response metrics still dominate the online measurement world, new research has emerged to suggest that the mere exposure to online ads is a good predictor of advertising effectiveness. This indicates that advertisers can use ‘Adjusted Unique’ as a measure of campaign effectiveness alongside other metrics such as clicks, engagement and conversions.

The importance of simple ‘exposure’ to an ad is supported by recent research from the American Online Publishers Association (OPA). Using eye tracking technology, the OPA tested to see whether people actually viewed the ads that were presented to them on a page that they were browsing. In addition, the researchers used biometric testing to track the participants’ emotional response by monitoring their breath and heart rate. The biometric testing is similar to a lie detector test, and signifies a positive or negative emotional response.

The results were staggering, with 96% of participants paying attention to the ads that were presented to them during a natural browsing experience. Furthermore, 90% of participants noticed the ads during the first 10 seconds of uploading the page. In fact, on average, it took participants less than one second to notice the banner.

Another important finding is that most participants look at the ad on the page multiple times. The OPA researchers found that 67% of participants view the ad both during the first 10 seconds after loading the page and view it again during the following 10 seconds. On average, participants have focused their eyes on the banner 15 times.

When measuring the emotional response, the OPA found that participants responded to the banners in a similar manner as to other parts of the page. However, users who viewed the ad again after the first 10 seconds exhibited an elevated emotional response. Users also rated the ads favorably overall, giving them a rating of 6.3 out of 9.

In another research, comScore maintains that the primary effect of online ads is the exposure itself and not necessarily the act of clicking on it. In a research titled “How Online Advertising Works: Whither The Click?”, comScore has shown that two-thirds of Internet users do not click on any display ads over the course of a month and that only 16% of Internet users account for 80% of all clicks. Furthermore, clickers tend to be younger and less affluent than non-clickers. comScore confirmed that there is a latency effect and branding effect to online advertising, in which users arrive at the advertiser’s website even without clicking.

9


However, the research by comScore also indicates that display advertising has an effect on user behavior even at low click through rates. In the research, which included 139 display campaigns from seven verticals, comScore has shown substantial effects on traffic, sales and branding despite a lack of clicks. According to comScore, the display campaigns yielded a 46% lift in advertiser websites visits, over a four week period. In addition, exposed users are 38% more likely to conduct an advertiser related branded keyword search, over a four week period and are 27% more likely to make a purchase online. Furthermore, exposed users are 17% more likely to make a purchase at the advertiser’s retail store.

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%Advertiser Website

VisitsBranded Keyword

SearchOnline Purchase Offline Purchase

Lift

Exp

ose

d/U

nex

po

sed

Source: comScore. “How Online Advertising Works: Whither The Click?”.

The Effect of Display Advertising

A significant body of evidence suggests that online advertising can have a considerable impact at the exposure phase and that it is important to measure reach accurately. Therefore, the ‘Adjusted Unique’ metric is a valuable addition to MediaMind’s group of measurements and presents a breakthrough in measurement of reach and frequency for the industry.

‘Adjusted Unique’ adjusts for over-counting of users as a result of cookie deletion, and serves as a reliable measure of audience reach. The metric was thoroughly tested and accredited by the MRC for compliance with the IAB’s Audience Reach Measurement guidelines. It complements the interactivity metrics with measurement of the reach of exposure that is linked to ad effectiveness. Now, advertisers can measure the number of users that were exposed to their campaign, without over-counting.

www.mediamind.com

Conclusion

10

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11


Regional benchmark tables

Imp.

with

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12


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r-in

itiat

ed a

nd a

uto-

initi

ated

vid

eos.

To q

uant

ify th

e du

ratio

n of

the

vide

o th

at p

laye

d in

an

ad.

Star

ted

Rate

Th

e nu

mbe

r of t

imes

the

vid

eo a

sset

s sta

rted

out

of s

erve

d im

pres

sions

with

vid

eo.

This

met

ric in

clude

s us

er-in

itiat

ed a

nd a

uto-

initi

ated

vid

eos.

To q

uant

ify th

e nu

mbe

r of t

imes

vid

eos i

n ad

s sta

rted

pl

ayin

g.St

arte

d Ra

te

user

-initi

ated

and

aut

o-in

itiat

ed v

ideo

s.pl

ayin

g.

50%

Pla

yed

Rate

Of th

e vi

deo

asse

ts th

at st

arte

d pl

ayin

g, h

ow m

any

of th

em p

laye

d up

to 5

0% o

f the

vid

eo's

dura

tion,

out

of

star

ted

vide

o im

pres

sions

.To

mea

sure

the

prop

ortio

n of

star

ted

vide

os in

whi

ch th

e vi

deo

play

ed a

t lea

st 5

0% o

f its

tota

l dur

atio

n.

Fully

Pla

yed

Rate

Of th

e vi

deo

asse

ts th

at st

arte

d pl

ayin

g, th

e po

rtio

n of

vid

eos t

hat p

laye

d th

eir f

ull d

urat

ion.

To m

easu

re th

e pr

opor

tion

of st

arte

d vi

deos

in w

hich

the

vide

o pl

ayed

to it

s ful

l dur

atio

n.Im

pres

sions

with

Any

Th

e nu

mbe

r of i

mpr

essio

ns w

ith a

t lea

st o

ne p

anel

exp

ansio

n ou

t of s

erve

d ex

pand

able

impr

essio

ns.

This

To q

uant

ify h

ow m

any

of th

e ex

pand

able

serv

ed im

pres

sions

Im

pres

sions

with

Any

Pa

nel E

xpan

sion

Rate

The

num

ber o

f im

pres

sions

with

at l

east

one

pan

el e

xpan

sion

out o

f ser

ved

expa

ndab

le im

pres

sions

. Th

is m

etric

mea

sure

s use

r-ini

tiate

d ex

pans

ions

.To

qua

ntify

how

man

y of

the

expa

ndab

le se

rved

impr

essio

ns

had

expa

nsio

ns.

Tota

l Exp

ansio

n Ra

teTh

e to

tal n

umbe

r of p

anel

exp

ansio

ns o

ut o

f ser

ved

impr

essio

ns.

This

met

ric m

easu

res u

ser-i

nitia

ted

and

auto

-initi

ated

exp

ansio

ns.

To q

uant

ify th

e ex

tent

to w

hich

exp

anda

ble

serv

ed

impr

essio

ns w

ere

expa

nded

. Av

g. E

xpan

sion

Dura

tion

(Sec

onds

)Th

e av

erag

e tim

e a

pane

l was

exp

ande

d. T

his m

etric

mea

sure

s aut

o-in

itiat

ed a

nd u

ser-i

nitia

ted

expa

ndab

le

bann

ers.

To m

easu

re th

e tim

e th

at th

e us

er sp

ent w

ith th

e ba

nner

ex

pand

ed o

n th

e sc

reen

.

Planning Audience Reach with ‘Adjusted Unique’. by MediaMind.

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Transcript of Planning Audience Reach with ‘Adjusted Unique’. by MediaMind.