Who is Clicking? - La Tele di Penelope

Quality | Control | Results
The Click As A Crutch
Moving Beyond the Click as a Measure of
Online Advertising Success
Mike Cassidy, President and CEO, Undertone Networks
Daryl McNutt, VP of Marketing Solutions, comScore
Proprietary and confidential proposal ©2009 Undertone Networks
Agenda
• About comScore and Undertone
• The Click as a Crutch
– comScore Natural Born
Clickers research
– Risks of Relying on the Click
as a Measure of Success
• Alternative Success Metrics
2
About Us
•
comScore is a global leader in
measuring the digital world
•
Undertone is established
– Launched in 2001, backed by JMI Equity
•
Our consumer panel is a representative
cross-section of the U.S. population,
worldwide regions and individual
countries
•
Undertone is experienced
– Over 5,000 campaigns for
brand and direct response
•
Undertone is different
– 100% Above-the-Fold inventory
We provide deep industry-leading
insights into consumer behavior, both
online and offline
•
Clients include 45 of the top 50
interactive agencies
•
3
–
NO ad exchange inventory or daisy chains
– The most effective network for rich media
– ONLY Undertone offers a
cash-back guarantee
Quality | Control | Results
Background
Proprietary and confidential proposal ©2009 Undertone Networks
The Click Takes a Beating
“Half Of Ad Impressions, 95 Percent Of Clicks Fraudulent.”
September 2009
“Display Ad Clickers Drop by 50%. The Click is Officially
Dead.”
September 2009
“8% of Internet Users Account for 85% of all Clicks.”
October 2009
5
Industry Spending Snapshot
Branding
2008 U.S. Measured
Media Spend:
$186 Billion
$118 B
Direct
Response
Online as
Percent of Total
5%
30%
$68 B
Source: Lehman Brothers, ThinkEquity Partners
6
2008 U.S. Online Media Spend:
$26 Billion
$6 B
$20 B
Quality | Control | Results
Natural Born
Clickers
Proprietary and confidential proposal ©2009 Undertone Networks
comScore Natural Born Clickers Studies
• 2007: Original Natural Born Clicker Study
– Clicking was a rare occurrence
– Most clicks were accounted for by a small, unrepresentative
portion of the total online population
– Conclusion: optimizing a campaign to clicking behavior limits
the potential campaign influence on the total online audience
• 2009: Natural Born Clicker, Part 2
– Validate the results of the original study and look for any shifts
in clicking behavior since 2007
– Examine how clicking behavior differs (or does not) within four
key advertiser categories
– Establish the value of online advertising via metrics other than
the click
8
Who is Clicking?
Q: Who is Clicking?
A: Fewer people
A: Fewer people that account for
more clicks
A: Less Affluent
A: Most likely 35 – 44 years old
Question to Advertisers:
Is this the best audience to benchmark the value of online advertising?
9
Half as Many Clickers in 2009 vs. 2007
• Only 16% of internet users clicked on at least one display ad in March
2009
July 2007
March 2009
Clickers
16%
Clickers
32%
NonClickers
68%
Source: comScore, Inc. custom analysis, Total US Online Population, persons, July 2007 and March 2009 data periods
10
NonClickers
84%
Does Clicking Vary by Exposure to Different Ad
Categories?
Q: Does clicking vary by exposure to different ad
categories?
A: CTR for all major ad categories is less than 0.4%.
A: Exposed clickers are an extremely small group for
major ad categories.
A: Less than 2% of advertisers’ site traffic for each of the
four ad categories consists of exposed clickers.
Question to Advertisers:
Shouldn't we focus on measuring the value of reaching NON Clickers
(e.g., the majority of the Internet) instead?
11
Clickers on Display Ads are an Extremely Small
Group for ALL Categories
•
Custom CPG
% of Total US
Online Population
21%
•
% of UV to
Advertised Sites and
Category
3%
0.3%
1.6%
78%
Insurance (Financial
Info/Advice)
Retail/Consumer
Electronics
18%
3%
0.2%
1.2%
82%
34%
0.2%
0.1%
66%
90%
3%
1.6%
1.6%
80%
Source: comScore, Inc. custom analysis, Total US Online Population, machines, March 2009 data period
12
96%
10%
20%
Education/Information
96%
96%
Exposed Clickers Consume the Least Number of Pages
and Spend the Fewest Minutes on Advertisers’ Sites
•
% of Total Pages at
Advertiser Sites
•
% of Total Minutes
at Advertiser Sites
by category
Custom CPG
Insurance (Financial
Info/Advice)
Retail/Consumer
Electronics
2%
2.4%
3%
2.0%
96%
3%
1.2%
1.0%
96%
96%
10%
13%
1.0%
1.0%
89%
1.6%
86%
6%
93%
Source: comScore, Inc. custom analysis, Total US Online Population, machines, March 2009 data period
13
95%
3%
6%
Education/Information
by category
2.0%
93%
‘Natural Born Clickers’ Summary
• Clickers are an increasingly rare group
Only 1/6th of internet users clicked on at
least one display ad (March 2009)
• Heavy clickers continue to account for a
disproportionate amount of advertising clicks
8% of Internet users account for 85% of
all display ad clicks
• Across four key advertiser categories, clickers are consistently a
very small group accounting for a minimal proportion of category
site visitors and page views
Non-clickers show more consistent category interest than
clickers
14
Quality | Control | Results
It Gets Worse…
Proprietary and confidential proposal ©2009 Undertone Networks
Incentivized Clicks
16
Organized Click Fraud (Dormring1)
17
Optimizing to the Click can Multiply Fraud
Mpire reported that because
offenders were auto-optimizing to
the highest CTR, campaigns were
inadvertently optimized to
multiply the fraud
18
… and now Lead Fraud
Scamville…
A big part of the debate about the lead gen
scams plaguing Facebook and MySpace via
social games is over how much money is being
made on these “offers.”
November 2009
19
Quality | Control | Results
So…If Not the Click,
Then What?
Recommendations for Alternative Measures
Proprietary and confidential proposal ©2009 Undertone Networks
Assess Online/Offline ROI on Ad Spend
comScore panelists are divided into matched groups (exposed and non-exposed to
advertising), and campaign exposure lift can be measured based on:
• Advertiser Site Visitation
(Unique Visitors, Page Views, Minutes)
• Search Behavior
(Searches, Searchers, Search Intensity, Trademark & Brand Search Behavior)
• Click-stream analysis
(Paid clicks, natural click through, click rates)
• Share of Competitive Voice
• Cost per Lift
• In-Store Buying behaviors
(Through retailer loyalty cards and scanner data)
21
Measure Lift for a Multi-Directional View Online
Ad ROI
Even with minimal clicks, there is a substantive impact of view-through
Advertiser site reach lift
weeks 1-4 after first exposure
+52%
Results from 139 campaign effectiveness studies – lift across verticals
+42%
Control
+77%
CPG &
Restaurant
22
+21%
Test
+114%
Automotive
+46%
+25%
+86%
Finance
Travel
Average
Electronics &
Media &
Software Entertainmnet
Retail &
Apparel
Create Synergy Between Display and Search Advertising
Creates the Greatest Offline Sales Lift
For multi-channel retailers, leverage the reach of display ads
to boost the impact of search on offline sales
Incremental Lift in Retailers’ Offline Sales
per (000) Exposed
140%
Greatest impact
120%
Smaller reach,
greater impact
100%
80%
60%
Larger reach,
less impact
40%
20%
0%
Display Only
23
Search Only
Search & Display
Online Advertising Increases Offline Sales
in 82% of All Campaigns
Results from sales lift from data points of 21 CPG category studies
82% of campaigns
showed a
positive sales lift
Average Dollar Sales
Lift was 22%
% Lift in Dollar Sales
0%
(CPG Brand in Retail Stores)
comScore Online Sales Effectiveness Studies
24
Summary
• Clickers are a very small group
• Clickers consume the least pages and spend the least
time on sites
• 84% of internet users never click*
• Develop metrics that are specific to campaign objectives
– Interaction rate, interaction time, engagement, brand lift, site traffic,
viral “view-through” impressions
* comScore Natural Born Clickers Study
25
The Click is Not the Endgame
“A click means nothing, earns no revenue and
creates no brand equity. Your online advertising has
some goal—and it’s certainly not to generate clicks.”
John Lowell, Starcom USA
SVP and Director, Research and Analytics
26
Quality | Control | Results
Thank you!
Daryl McNutt
VP, Marketing Solutions
comScore
(206) 268-6314
dmcnutt@comscore.com
Proprietary and confidential proposal ©2009 Undertone Networks
Michael Cassidy
President & CEO
Undertone Networks
(212) 685-8000 ext. 125
mcassidy@undertone.com