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April 2010 Archives

April 5, 2010


comScore Debuts Video Measurement in Asia-Pac

Last week, comScore announced the launch of our video measurement service in six markets in the Asia-Pacific region - Australia, China, Hong Kong, Japan, Malaysia and Singapore - expanding our measurement capabilities in these dynamic global Internet markets. With nearly half the world’s Internet population residing in Asia, the region offers a wealth of opportunity for both global and local Internet brands seeking to engage these important audiences.

Across the globe, online video consumption is soaring. In the 11 individual countries that comScore Video Metrix measures, at least 80 percent of Web users in each of these markets viewed online video in January, making it one of the most popular activities on the Internet. France (90.4 percent), Canada (89.9 percent) and Singapore (87.6 percent) reported the strongest online video penetration fueled by nearly ubiquitously fast broadband speeds. Japan had the highest online video engagement among the Asian markets at more than 12 hours of video consumption per viewer, with Singapore (10.8 hours per viewer) and Hong Kong (10.2 hours) not far behind. Germany (18.8 hours per viewer) and Canada (17.4 hours) boasted the highest video engagement across all reportable markets.

Video Overview by Global Market

There’s no doubt that video will continue to play a strong role in the online consumer experience. In an arena that was once dominated by user generated content, online video is maturing considerably as a medium with more professionally produced content – including broadcast TV content – capturing consumers’ attention, and shifting the dynamics of “where, when and how” people consume video content. The medium also offers advertisers and marketers a uniquely engaging digital platform that can reach audiences in a more targeted and cost efficient way than traditional TV advertising, while driving meaningful lifts in consumer behavior.

We look forward to keeping an eye on how the online video market develops in Asia in the coming years and what it will mean for media companies in the region. Stay tuned for more updates from comScore on exciting developments in Asia in the coming months. It’s shaping up to be a busy and exciting year for comScore from Tokyo to Sydney and everything in between.

April 7, 2010


Unified Digital Measurement™: Not Just Another Pretty (Hybrid) Face

By now, many in the digital space have heard of comScore’s Media Metrix 360 initiative. This represented a major enhancement to comScore’s original panel-only audience measurement approach, where we blend server side data with our panel data to create a more holistic, comprehensive and granular view of the digital landscape. What might not be so familiar is the name of the methodology we’ve developed to enable this innovation, called Unified Digital Measurement™ (or, UDM for short.) UDM is a measurement philosophy that will guide the formulation of our products as we advance into the future of digital media. In a nutshell, it is unique and powerful because it forges the server and panel data together at an organic level, with the goal of measuring audiences that reflects the fluid way that consumers use the internet today - across devices, platforms, browsers, machines and locations. It works equally well for large sites as well as it does for smaller more fragmented entities, resulting in a more comprehensive, more precise view of how consumers use the internet in an increasingly complex digital world. That is important to our clients, to the industry, and arguably to the digital economy.

From a business standpoint, Unified Digital Measurement gives clients, for the first time, the opportunity to have internal numbers that are fully reconciled with external audience numbers. Consistency is important. Gone are the discrepancies and the endless debate about which is right or wrong. The usage levels tie. Web site audience reach is fully explained and consistent.

When we announced this back in June 2009 of last year, we referred to our approach as ‘a panel-centric hybrid.’ While we were aware that we weren’t the first to coin the term ‘hybrid’, it seemed like a relatively good descriptor - using server data for what it does best (measure total tonnage), panel data for what it does best (measure consumer engagement and demographics), and blending them together at a very granular level to provide more precise audience measurement. This has been a huge initiative for comScore, and we’ve learned a lot in the process.

One of my focus areas at comScore is Global Development. In that capacity, I’ve talked to companies in different countries during the last year who also say they have hybrid approaches to audience measurement. Here’s what I’ve learned: Hybrid is the new black. In some European countries in particular, hybrid approaches to measurement have been in use for over 5 years. They are all somewhat different from one another. But they are also all very different from our ‘panel-centric hybrid’ approach and none can match the quality and accuracy of our approach and the rigor with which we produce our data. So different, in fact, that we think it’s important to separate ours from the pack. That’s why we’re branding it Unified Digital Measurement, or UDM.

How is UDM different, and why does it matter?

One reaction might be, “Great, just what the world needs: another three-letter acronym.” But with the goal of delivering the most precise audience metrics possible, it’s important to understand why these models are NOT interchangeable, and to have nomenclature that reflects that.

Outside of UDM, which is a unique approach, there seem to be two main categories of hybrids - one can be classified as the ‘cut and paste’ hybrid, and the other is the ‘cookie deletion’ hybrid.

  • The ‘cut and paste’ hybrid is where metrics from panel and server data are derived independently, and rendered on the same report. There is no analytical link between the two data sources. This approach can be found in both the US and internationally.
  • The ‘cookie deletion’ hybrid is where cookie deletion estimation factors are derived from either panel data or cookie data, and applied to server data. These ‘panels’ come from a variety of places. Exact sources are typically not revealed, but they include toolbar data, ISP data and other unnamed sources. In some cases, cookie data from server logs is used to make these adjustments.

In the ‘cut and paste’ approach, there is no analytical link between the panel and server data. If the panel is representative of the universe (which is easier said than done) this approach would theoretically provide a reasonable estimate of demographics. But even if that were the case, it does nothing to adjust for all the many other reasons for differences between unique cookies and unique visitors.

As for the cookie deletion hybrid, it’s no secret that both toolbar panels and ISP panels have major issues in the representivity department. That’s a big problem in and of itself. UDM has a big advantage here because of the effort we put into recruiting and maintaining truly representative panels - an important differentiator. . But there’s more. Our research on this issue has revealed that cookie deletion itself only addresses about 1/3 of the difference that needs to be addressed in reconciling unique cookies with unique visitors –the rest is unaccounted for in these models.

“What else is there?” you might ask. Well, there is a lot.

For perspective, we see about 1.5 billion unique cookies in a month in the US as compared to roughly 200 million unique Internet users. UDM addresses a whole cadre of additional dynamics that are important when it comes to reconciling those two very different metrics and accurately estimating unique visitors (people-based) for a given site. Examples include:

  • Multiple users per machine (within households or in public places, like internet cafes)
  • Multiple machines per person (people use different machines within a household)
  • Multiple locations (people access the internet both at home and at work)
  • Multiple browser usage (Chrome and Explorer are open at the same time--that’s two cookies but one person
  • Mobile usage

In addition. UDM includes a rigorous auditing process where panel and server data are used to ‘check and balance’ one another, and to ensure that pages are counted the same way across all sites. Examples:

  • In the server data, we sometimes see multiple beacons fired from the same page, but from the panel data, we can see there was only one page.
  • We sometimes see pages in the panel that are not being counted in the server data
  • Both sources can be affected by non-human traffic, which must be removed

Our approach delivers objective and consistent third party validation of audience metrics, which ultimately plays a critical role in improving the functioning of the digital economy

So when our clients log onto our interface on Friday, they will notice that the nomenclature in our reports indicating when a given site began being reported using our new methodology is changing from an ‘H’ to a ‘U.’ This might seem like a trivial change, but there are weak hybrids and even weaker hybrids, and then there’s UDM™. The ‘U’ stands for something: Unified Digital Measurement, which is uniquely different and superior.

April 9, 2010


Four Times Zero Is Still Zero

This post was originally published at MediaPost on April 09, 2010.

I recently moderated a panel at OMMA Global San Francisco titled "Will Online Advertising Ever Deliver on the Promise of Precision?" The panel discussion focused on the growing use of data in identifying and buying targeted audiences. The session was prompted by a post on Metrics Insider authored by Michael Andrew, Director of Search and Analytics at Mediasmith. In his article, Michael opined that:

Recently there has been buzz around the rise of advertising exchanges, which bring media inventory into a liquid, dynamic environment driven by automation and technology. The exchanges come in many flavors, but they all move in the direction of allowing wide swaths of media impressions to be bought in a computerized manner.

Beneath the surface of this move is a far greater shift that will shake up and unsettle marketing as we know it. It is about data -- data in ways we have never before fathomed. The future of advertising is not about social, not about viral videos, not about mobile, not about any new medium or any new ad unit -- but about data. Those who know what to do with this will be the new kingmakers, the new rulers of Madison Avenue -- or the creators of a new Avenue of media.

In the OMMA panel -- which featured Jeff Hirsch, CEO of Audience Sciences; David Zinman, VP and General Manager of Yahoo Display Advertising; and Jim Larrison, Chief Revenue Officer for Adify -- we explored many aspects of the "data in advertising" topic. We covered the growing use of ad exchanges, the role of ad agencies, the potential disintermediation of ad networks, the risk that the original owner of a "cookied" Web site audience will see that audience bought by competitors on the exchanges, and the role of branded sites in the exchanges, among others.

We also touched on the importance of the creative in targeted advertising campaigns, but because of time constraints weren't able to do the topic justice. So I thought I'd add a few personal observations here.

Let me say upfront that I'm all for targeted advertising. It has benefits for publishers and advertisers alike. It increases the efficiency of a media buy by delivering more impressions against the desired target segment. But I cringe when I hear it suggested that the future of advertising will begin and end with the use of targeting data. Excuse me, but isn't the creative message every bit as important as who we say it to? Doesn't the efficacy of any ad campaign depend to a large degree on the copy being used? If we put such importance on targeting data that we forget we are fundamentally communicating with, and are trying to influence the behavior of, human beings, I worry that we'll fail to realize the full potential of the online channel.

It's been shown that online advertising has captured 30% of all direct-response ad dollars spent across all media, but only 5% of the branding dollars. If we're to increase that 5% share, I believe we must think in ways that are consistent with the needs of branding campaigns. And that means focusing much more on the creative.

Research into the impact of TV copy conducted by comScore's ARS Group has shown that the creative is four times more important in determining sales outcomes than the media spend. That's one of the reasons U.S. marketers spend about $300 million each year researching their TV copy to make sure it's communicating in the desired manner before it's actually used. That dwarfs the pittance that's currently invested in the pre-researching of online creative.

It's no wonder the Internet doesn't get the nod more often for branding campaigns. No longer can we slap a few alternative banners together, run them in a real-world campaign and measure click rates to gauge the branding impact. The click has been shown to be irrelevant in that regard. No, we need to do our homework before the online campaign runs and make sure we have a persuasive branding message. And, as the use of rich media and video increases, we can expect online commercial production costs to increase markedly, making the need for online creative pre-testing even more important.

The importance of creative was vividly brought home to me more than 30 years ago when, as a young researcher, I was analyzing a TV weight test for a leading beverage company. The company wanted to measure what would happen if it increased TV spending behind one of its major brands by a factor of four.

We used the AdTel split cable ad testing system to deliver the higher weight level to one group of panelists, while keeping the weight steady among a balanced control group. We then compared the brand buying behavior of panelists exposed to the higher TV weight with the behavior of the control group of panelists exposed to the normal weight level. To my surprise, after six months and later after a year of testing, we could see no increase in buying of the advertised brand among those panelists exposed to the heavy weight level.

How could that be, I wondered? Four times the normal TV weight level meant that the company was spending huge amounts of ad money behind the brand - well north of $100 million in today's dollars.

The answer came when we looked at the results of copy tests of the particular TV commercials being used. The research showed that the TV ads were doing a particularly poor job of persuasively communicating a value that would succeed in attracting new buyers or even creating a compelling reason for existing brand buyers to buy more. I'll never forget what the client's wise research manager said to me: "Gian, you need to remember that four times zero is still zero!"

So, as we embrace the future of digital advertising amidst an abundance of targeting data, I hope it doesn't blind us to the need to also make sure that we have our message and communication optimized. Because, without a persuasive branding message, all the targeting precision in the world won't increase sales. Mathematical laws aren't about to change on our behalf: four times zero will always be zero.

April 22, 2010


A Look Back at the Digital Year in Canada

Last week comScore released the Canada 2009 Digital Year in Review, a report covering the top trends that have shaped the Canadian digital media landscape in the past year, as well as a look ahead to what will be important to the industry throughout 2010. The report analyzes overarching trends including Internet usage and engagement, online advertising, high-growth site categories, search queries conducted and online video viewed.

For the first time the annual report included a detailed view of the online display advertising market, based on data from comScore Ad Metrix, a new online advertising intelligence product that we recently introduced into the Canadian marketplace. In Q4 2009, there were more than 175 billion display ad impressions served to Canadians, led by the Conversational Media category (which includes social networking sites and blogs) with 25 percent of all display ads during the quarter. Portals accounted for 18 percent of all display ads, ranking second, while the Services category (which includes sub-categories such as Coupons, e-cards and Photos) served 14 percent of all display ad impressions.

Top  Site Content Categories by Share of Display Advertising Impressions


A look at the top display advertisers revealed that Microsoft Sites led as the top advertiser during Q4 with 1.1 billion ads delivered, followed by Procter & Gamble with 811 million ads and ClearlyContacts.ca with 702 million ads.

Top Display Advertisers Total Display Ad Impressions

For these and other insights on the latest trends in the Canadian digital media landscape, please download your copy of the Canada 2009 Digital Year in Review.

April 27, 2010


The Resurgence in the U.S. Online Auto Insurance Industry

To say that the U.S. online auto insurance industry grew last year would be an understatement. It didn’t just grow – it erupted like Iceland’s Eyjafjallajokull volcano. Ok, maybe I’m being a little dramatic, but it certainly seemed that way in light of the sluggish year that 2008 represented in the market. And much like the Eyjafjallajokull eruption caused everyone to sit up and take notice, marketers are sure to pay attention to the recent resurgence of the auto insurance industry.

According to newly released research from comScore, U.S. consumers indicated they were more price-sensitive in 2009 than the previous year, leading to significant increases in online quotes submitted (up 22% vs. year ago) and policies purchased (up 21%). We’ve asked consumers what is most important to them when purchasing insurance, and as you can see in the chart below, there was a substantial uptick in people selecting price as the most important factor.

Auto Insurance Factors

We also asked consumers who have not purchased auto insurance online whether they would be likely to do so in the future. In 2008, 28% said they would likely purchase online; but in 2009 that number rose to 35%.

Auto Insurance Online

So what’s the moral to this story? These shifts in consumer attitudes and behavior signal a clear need for marketers to start thinking about multi-channel sales and marketing efforts to take advantage of the current market dynamics. Many U.S. consumers are in the market for auto insurance right now and data-driven marketers are in a position to seize the opportunity before them.

For more information, check out our 2010 Online Auto Insurance Report at www.comscore.com/Auto2010. Along with the report, I'll be hosting a webinar on May 6, 2010 at 2:00 PM ET entitled "The Auto Insurance Online Landscape in 2010". I hope you can join us for the webinar!

April 29, 2010


Don’t Just Tell Me, Entertain Me! - Transmedia in Advertising

As we further explore the possibilities of cross media advertising, we are beginning to see that the value of “transmedia” as a strategy that can assist marketers in leveraging the unique benefits of multiple platforms and activate deep brand experiences that entertain and invite participation and engagement from its viewers. In his book Convergence Culture, Henry Jenkins defines transmedia as storytelling that “immerses an audience in a story’s universe through a number of dispersed entry points, providing a comprehensive and coordinated experience of a complex story.” Some prominent examples of transmedia storytelling in the context of entertainment include movies like The Matrix and TV series such as Valemont High, Lost, Heroes, and In the Motherhood.

Often mistaken for simple cross channel distribution, (wherein the same content is sent across multiple platforms) transmedia is not about milking one storyline or set of characters across multiple media. While cross platform distribution is important in an increasingly platform agnostic world, (a recent comScore study found that 35% of audiences tune in on platforms other than TV to watch original scripted TV programming), transmedia goes deeper and requires knowledge and appreciation of what each platform does best.

When thinking about a transmedia strategy, it is important to first understand the unique benefits of each platform. TV, for example, is undeniably the most powerful reach vehicle, but online video often delivers higher impact per viewer. In fact, it scores higher across several key brand metrics with regards to advertising:

Brand Metrics
Source: ‘The Future of Original TV Viewing and the New Digital Consumer’ (January 2010 study conducted by comScore.)

In addition, an astounding 43% of people who watch original TV programs on both TV and the web have stopped a TV program that they were viewing on the web midway in order to visit an advertiser’s website, which indicates some exciting opportunities for brand advertisers to reach the right consumers via online entertainment channels. And that doesn’t even address the potential of brand integration, relevant placements, and sponsorship that come with transmedia implementations.

The key point of transmedia storytelling is that dispersed entry points contribute to a complex (and complimentary) universe that is greater than the sum of its parts – so that at the point of origin, multiple channels are not just considered, but deeply planned out and integrated in ways that will engage the viewer where he/she is already spending their time. Only with this kind of tight creative integration and clarity of purpose are we able to create true cross media experiences that add value across dispersed narrative paths and entertain consumers as they evaluate their options.

Transmedia advertising requires a fundamental re-think of how the creative and planning process is organized, demanding a breakdown of silos and greater collaboration and agreement on campaign objectives across teams at the outset. The potential obstacles to successful implementations include lack of planning and integration, as well as any assumption that new channels are merely ‘another screen’ for which the same creative can simply be repurposed. While this may work in part, it misses the larger opportunity.

With so many easily available screens and media platforms, the attention and engagement of consumers will only be won by higher quality, more enriching and relevant experiences. It’s up to brands – and a new breed of agencies and advertisers – to understand how consumers are spending their time at each new touch point and to entertain them there.

April 30, 2010


Why Sun Chips’ Biodegradable Ad Campaign is Likely to Boost Sales

Hello. I’m Ashley Grace , head of business development at comScore ARS.

While the emperor may or may not have clothes when it comes to ‘global warming’, focus on this issue has certainly brought the economic and societal benefits of sustainability practices to the forefront of discussion. For the good of us all, the principles of Reduce, Reuse, Recycle are increasingly being seen as smart business. And, top marketers realize that there is opportunity to establish and build brand loyalty among consumers concerned about the environment.

While consumers vary substantially in terms of their concern about the environment, there are some basic elements that can work for marketers across the board. ARS has conducted significant benchmarking in the area of green advertisements, both on TV and in print. Utilizing a “HASS” (Health And Sustainability Segmentation) approach, we classified ads both for common elements (using the ARS standard) and for newly derived characteristics specific to advertising in the green space. The effectiveness of these ads were then compared and contrasted against our database of 20,000+ “traditional ads.” From there, a set of best practices were derived.

So, how do we persuade someone to change their behavior? It’s a universal question posed by marketers and parents alike. The answer, it turns out, is that it’s far better to focus on communicating the benefits of the desired action rather than the negative consequences. Our research further suggests that it’s even better if the communication is emotional in nature.

As a practical example, let’s contrast two recent advertisements for Frito Lay’s Sun Chips and Hanes T-Shirts that rely on the techniques of positive vs. negative reinforcement. The "Sun Chips Compostable Chip Bag Earth Day 2010" ad shows a bag decomposing via time-lapse photography, ultimately resulting in the growth of a new plant juxtaposed with a clean, blue sky (the benefit in this case). By smartly conveying the environmental benefits provided by the new, fully compostable bag in this emotional manner, Sun Chips is able to add to its established differentiation of being a smart choice for consumers. Based on our learning about what makes an effective sustainability-focused advertisement, the Sun Chips ad is likely to boost brand sales.

Hanes, in an advertisement for men's undershirts and socks produced with renewable energy tries a different approach. The ad begins with two men in a shopping mall: James, wearing the Hanes sustainably produced T-Shirt and Pete wearing a conventional T-Shirt. As the voice-over describes the situation, we see young children (implying the next generation to need the planet's resources) in the shopping mall leering menacingly at Pete, who becomes visibly uncomfortable due to these stares. The implication is that if he were wearing Hanes, it would be a different story. It's a cute, memorable creative approach, but unfortunately for Hanes our study of advertising effectiveness suggests that this guilt-ridden approach is unlikely to be as effective as one that focuses on the positive emotions provided by Hanes. For instance, a simple fix might have been to show others in the mall positively reacting, smiling, and acknowledging the character wearing the sustainable Hanes T-Shirt.

When it comes to motivating consumers with sustainability messaging, marketers need to remember the basics that apply to all ads – it’s far better to focus on the emotional benefits provided to consumers by using the product rather than the negative consequences of not doing so.

About April 2010

This page contains all entries posted to comScore Voices in April 2010. They are listed from oldest to newest.

March 2010 is the previous archive.

May 2010 is the next archive.

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