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Copyright 2000 ACNielsen
John R. Laroche
Managing Director
A Presentation to iCOMNovember 17, 2000 - Bangkok, Thailand
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Copyright 2000 ACNielsen
AgendaAgenda
The Internet ChallengeThe Internet Challenge
Online ResearchOnline Research
AN Advertising ApplicationAN Advertising Application
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Copyright 2000 ACNielsen
The Internet The Internet ChallengeChallenge
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““Wire” talk ....Wire” talk ....
““The internet will The internet will change everythingchange everything - the way we work, the way we - the way we work, the way we learn … what is more, it is doing so at far greater speed than the learn … what is more, it is doing so at far greater speed than the other great disruptive technologies of the 20th century, such as other great disruptive technologies of the 20th century, such as
electricityelectricity, the , the telephonetelephone and the and the carcar” ” EconomistEconomist (July 1999) (July 1999)
““The Internet has opened The Internet has opened new frontiersnew frontiers … when you know who’s visiting your … when you know who’s visiting your site and they give you permission to begin a dialogue with them … can lead site and they give you permission to begin a dialogue with them … can lead
to to lifetime relationshipslifetime relationships … revenues/profits … takes marketing … revenues/profits … takes marketing communications to much higher levels …” Bob Lamons, communications to much higher levels …” Bob Lamons, Marketing NewsMarketing News
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Copyright 2000 ACNielsen
Worldwide Internet GrowthWorldwide Internet Growth
Driven byDriven by higher PC penetrationhigher PC penetration falling telecommunication chargesfalling telecommunication charges improved web content / functionalityimproved web content / functionality
0
50
100
150
200
250
300
350
400
450
500
1995 1996 1997 1998 1999 2000 2001 2002 2003
Millions of Users
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Copyright 2000 ACNielsen
Development of Internet Audiences (%)Development of Internet Audiences (%)% of individuals currently using Internet% of individuals currently using Internet
2522
13
8
3
3636
1 1225
1112
24
19
23
1 14
87
1314
27
3 2
8
1416
3229
32
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Period 1 (Jul 97-Jun 98)Period 2 (Jan-Dec 98)Period 3 (Jul 98-Jun 99)Period 4 (Jul-Dec 99)Period 5 (Mar99-Apr00)Period 6 (Feb-Apr00)
Sin
gap
ore
Ho
ng
Ko
ng
Ph
ilip
pin
es
(Met
ro M
anila
Tai
wan
(N
atio
nal
)
Pen
insu
lar
Mal
aysi
a
Ch
ina
(GZ
/SH
/BJ)
Ind
on
esia
(Jak
arka
+10
cit
ies)
Th
aila
nd
(Nat
ion
al)
*
Au
stra
lia
New
Zea
lan
d
*
*
*
*Use Internet in past 12 monthsBase: All aged 15+ for all countries (14+ Australia, 10+ New Zealand)Source: ACNielsen NetWatch Report
**
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Copyright 2000 ACNielsen
Profile of Internet users - SexProfile of Internet users - SexWomen are Growing Faster Than MenWomen are Growing Faster Than Men
68
32
62
38
62
38
59
41
55
45
57
43
56
44
58
42
47
53Female
Male
Tai
wan
(Nat
iona
l)
Sin
gapo
re
Hon
g K
ong
Pen
insu
lar
Mal
aysi
a
Tha
iland
(Nat
iona
l)
Indo
nesi
a(J
akar
ta+
10 c
ities
)
Phi
lippi
nes
(Met
ro M
anila
)
Chi
na(G
Z/S
H/B
J)
Base: All aged 15+ current Internet usersSource: ACNielsen NetWatch Report Jul-Dec 99
Aus
tral
ia
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Copyright 2000 ACNielsen
Profile of Internet users - Age (Male)Profile of Internet users - Age (Male)Increasingly Becoming ‘more’ RepresentativeIncreasingly Becoming ‘more’ Representative
63
23
104
61
27
112
57
30
85
53
26
15
6
51
27
15
7
32
31
26
11
31
30
23
17
25
48
17
1045+
35-44
25-34
15-24
Tai
wan
(Nat
iona
l)
Sin
gapo
re
Hon
g K
ong
Pen
insu
lar
Mal
aysi
a
Tha
iland
(Nat
iona
l)
Indo
nesi
a(J
akar
ta+
10 c
ities
)
Phi
lippi
nes
(Met
ro M
anila
)
Chi
na(G
Z/S
H/B
J)
Base: All aged 15+ current Internet usersSource: ACNielsen NetWatch Report Jul-Dec 99
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Copyright 2000 ACNielsen
Computer Ownership vs Internet Usage Computer Ownership vs Internet Usage % of individuals have at least one computer in household% of individuals have at least one computer in household
Base for computer ownership: All aged 15+Base for usage of Internet: Those who owned at least one computer in householdSource: ACNielsen NetWatch Report Jul - Dec 99
*Indonesia NetWatch Jun-Jul 98*Australia NetWatch Mar99-Apr00
62%55% 55% 49%
20%15% 14% 6%
4%H
ong
Kon
g
Tai
wan
(Nat
iona
l)
Sin
gapo
re
Pen
insu
lar
Mal
aysi
a
Chi
na(G
Z/S
H/B
J)
Phi
lippi
nes
(Met
ro
Man
ila)
Indo
nesi
a(J
akar
ta+
10 c
ities
)
Tha
iland
(Nat
iona
l)
Usage of
Internet 44% 41% 58% 36% 40% 17% 24% 9% 29%
*Aus
tral
ia(N
atio
nal)
* *** *
*
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Copyright 2000 ACNielsen
Emergence of an Online TransactorEmergence of an Online TransactorO
n li n
e F
i na n
cial
Se r
v ic e
s
Online Shopping
Non-Transactors
EmergingTransactors
FinanceManagers
Online Shoppers
High ValueTransactors
Source:www.Consult
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Copyright 2000 ACNielsen
Intention to Purchase on the InternetIntention to Purchase on the Internetnext 12 monthsnext 12 months
30%
25%
43%
2%
LikelyNot decided yetUnlikelyRefused
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On-Line PurchaseOn-Line Purchase
Top 3 items purchasedTop 3 items purchased
BooBooksks
Travel Travel related servicesrelated services
PC PC softwaresoftware
BooBooksks
Travel Travel related servicesrelated services
PC PC softwaresoftware33%33%
20%20%
19%19%
12%12%
9%9%
5%5%
For Personal useFor Personal use For Business useFor Business use
11
22
33
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On-Line FinanceOn-Line Finance
Use Internet Banking/Use Internet Banking/Trade Stock Trade Stock
in next 12 monthsin next 12 months
Quite likely/Very likelyQuite likely/Very likely31%31%
Base: 6 countries’ Internet users who have registeredBase: 6 countries’ Internet users who have registeredInternet banking accountInternet banking account
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The InternetThe Internet
E-Commerce E-Commerce MarketplaceMarketplace
Distribution ChannelDistribution ChannelAdvertising MediumAdvertising Medium
Market Research Market Research ToolTool
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The Competitive EnvironmentThe Competitive Environment
TraditionalMR Firms
InternetTracking
Co.s
Online MRSpecialists
E-CommerceConsultants
- Audience Tracking- High Level Consulting- Syndicated Research
- Online Research … limited
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ACNielsen … Connected
www.Consult
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First Global Internet Ratings ServiceFirst Global Internet Ratings Service
Single global standard across the worldSingle global standard across the world 30 countries by 200130 countries by 2001
Nielsen//NetRatingsNielsen//NetRatings
Coverage: Europe, Asia Pacific, Latin America, Coverage: Europe, Asia Pacific, Latin America, Middle East & Africa - 90% of world’s Internet Middle East & Africa - 90% of world’s Internet audienceaudience
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Copyright 2000 ACNielsen
ACNielsen.online ‘Hub and Spoke’ACNielsen.online ‘Hub and Spoke’
Hong Kong
Tokyo
London
Singapore
Denmark
Sydney
Sillicon Valley
New York
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Copyright 2000 ACNielsen
… … Guiding you Guiding you throughthrough
Site Development - FGDs, web clinics, web masters
Site Development - FGDs, web clinics, web masters
Site Evaluation - FGDs, Web/E Based Surveys, Click Paths
Site Evaluation - FGDs, Web/E Based Surveys, Click Paths
Market Assessment - Netratings, Global Netwatch, FGDs, Web/E Survey, Popup
Market Assessment - Netratings, Global Netwatch, FGDs, Web/E Survey, Popup
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Online Quantitative ...
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Web/E-Mail Survey Benefits...Web/E-Mail Survey Benefits...
Quick turnaround
Stimulus material is req’d to be illustrated
Multi-country/language study
Hard to reach audiences (e.g. GPs)
Excellent for large volume sample size
Good for sensitive scope of coverage
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WBS, Pop-Ups and EmailWBS, Pop-Ups and EmailSurveying … The ACNielsen.online WaySurveying … The ACNielsen.online Way
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Complete Flexibility …Complete Flexibility …Open and close ended questions Open and close ended questions
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ranking, constant sum, … rotate attributes, … multi-lingual
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.online Delivery.online Delivery‘Real time’ reporting‘Real time’ reporting
.online Snapshots - access to data as it is being collected
Instant online access to reports and tables for sharing with multiple users in multiple locations
.online Analyser - online analytical processing
Secure dedicated website - login, password and firewall protected
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Online Qualitative ...
‘Online’ Focus Groups
‘Offline’ Focus Groups
Web Clinics
Web Masters
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Online FGD Benefits...Online FGD Benefits...
Single centre real-time co-ordination
Real-time observers in geographic spread
Ability to illustrate real-time web content
Multi-C’try requiring quick turnaround
Transcripts available immediately
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Copyright 2000 ACNielsen
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Copyright 2000 ACNielsen
Here is the Focus Group waiting room
from the Moderator
view. This is where
participants can be
screened and invited to join
the group. There is also
an opportunity to chat with
the others and for the client to
view the conversations to help screen the members of the group.
Here is the Focus Group waiting room
from the Moderator
view. This is where
participants can be
screened and invited to join
the group. There is also
an opportunity to chat with
the others and for the client to
view the conversations to help screen the members of the group.
White board for loading images,
WebPages, video and sound.
White board for loading images,
WebPages, video and sound.
Probe questions
Probe questions
Participant list
Participant list
This is the Chat Stream frame where the responses will appear.This is the Chat Stream frame where the responses will appear.
This is the Chat Input frame where the responses are entered.This is the Chat Input frame where the responses are entered.Moderator Guide
contains preloaded questions and
whiteboard images.
Moderator Guide contains preloaded
questions and whiteboard images.
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This web page was loaded by the
moderator through the use of the WB
shown in the Moderator Guide
frame.
This web page was loaded by the
moderator through the use of the WB
shown in the Moderator Guide
frame.
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Copyright 2000 ACNielsen
The participant completes the
questionnaire in their White Board.
The participant completes the
questionnaire in their White Board.
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Copyright 2000 ACNielsen
Online FutureOnline FutureMeeting your Internet information needsMeeting your Internet information needs
““New Internet-based companies recognise that New Internet-based companies recognise that building building brands on the Internet is essentialbrands on the Internet is essential for their for their survival….For traditional companies, the challenge is survival….For traditional companies, the challenge is to deliver the full impact of their brands through the to deliver the full impact of their brands through the Internet…opportunities are to build Internet…opportunities are to build even greater brand even greater brand equityequity and and even more brand loyaltyeven more brand loyalty. The Internet is a . The Internet is a great tool to build loyalty from existing users as well as great tool to build loyalty from existing users as well as to attract new users”to attract new users”
- Paula Sneed, President, e-Commerce, - Paula Sneed, President, e-Commerce, Kraft Foods ( Kraft Foods (Consumer InsightConsumer Insight, March 2000), March 2000)
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Internet’s Impact on Advertising
Source: Rex Briggs
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Declared data - targeted adsDeclared data - targeted ads
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How would you measure this ad?How would you measure this ad?
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Impressions and clickthroughs Impressions and clickthroughs
Impressions
Clicks
Volvo ad received 0.4% Volvo ad received 0.4% ClickthroughClickthrough
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Are these clickthrough Are these clickthrough reports relevant to Volvo?reports relevant to Volvo?
(or to most advertisers, for that (or to most advertisers, for that
matter)?matter)?
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Post Click AnalysisPost Click AnalysisAnonymous Case StudyAnonymous Case Study
# of Post Click Events Cost per conversion event
AdViews Clicks
ClickRate
BridgePage
Sendme info
ProductInfo
ThankYou
BridgePage
Sendme info
ProductInfo
ThankYou
5381 32 0.59% 24 9 8 7 6.73 17.94 20.18 23.06
5321 35 0.66% 29 9 3 4 5.50 7.74 53.21 39.91
10688 112 1.05% 67 10 5 3 4.79 32.06 64.13 106.88
Source: AdKnowledge
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Copyright 2000 ACNielsen
AdvertisersAdvertisers need to know: need to know:
Did their ads reach the right audience? Did their ads reach the right audience? NO NO INFOINFO
Do they increase brand awareness? Do they increase brand awareness? NO NO INFOINFO
Do they improve key perceptions? Do they improve key perceptions? NO NO INFOINFO
Did they increase sales? Did they increase sales? eTAILEReTAILER
What does Clickthrough tell the What does Clickthrough tell the advertiser?advertiser?
ClickthroughReportingProvides
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How Do You Measure Online How Do You Measure Online Advertising?Advertising?
Two major approaches:Two major approaches: Impressions and clickthroughsImpressions and clickthroughs
Post click activity/latent clickthroughsPost click activity/latent clickthroughs
Branding - measuring the consumer’s Branding - measuring the consumer’s attitudinal response to online advertisingattitudinal response to online advertisingPanel based “branding” measurement of Panel based “branding” measurement of
attitudinal response based of recency, frequency attitudinal response based of recency, frequency and multi-media exposure and multi-media exposure
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Q.Q. What’s the value of the 99.6% who What’s the value of the 99.6% who didn’t click?didn’t click?
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Copyright 2000 ACNielsen
A.A. Substantial value! Substantial value!
Brand Perceptions
11
7
913*
17**
11**
Is a good automobile
Offers something different than other brands ofautomobiles
Have a higher opinion of than other automobiles
Exposed Not Exposed** Statistically significant at the 95% confidence level * Statistically significant at the 90% confidence level
55% increase
57% increase
44% increase
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Applying Effectiveness Research to Your Business
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““IT’S JUST FOR DIRECT MARKETING” IT’S JUST FOR DIRECT MARKETING”
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R.I.P.1995-2000
““I DON’T BELIEVE I DON’T BELIEVE ONLINE ADS CAN ONLINE ADS CAN
DO BRANDING”DO BRANDING”
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Key point:Key point: Use measurement to Use measurement to experimentexperiment
Benchmark and extend the effectiveness of Benchmark and extend the effectiveness of the online advertisingthe online advertising Advertisers should try different:Advertisers should try different:
Ad executionAd executionTargeting capabilitiesTargeting capabilitiesFrequency levelsFrequency levels
It is too early to settle for “good enough” -- It is too early to settle for “good enough” -- Keep innovatingKeep innovatingNew ad formatsNew ad formatsSponsorship opportunitiesSponsorship opportunitiesCollect and build a base of knowledge about Collect and build a base of knowledge about
what works best for your audience what works best for your audience
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When in doubt…When in doubt…TEST IT !TEST IT !
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