Measurement A Marketer s New Toolkit

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1 Measurement A Marketer s New Toolkit September 28, 2015 Dennis Buchheim Vice President of Product Management, Yahoo 1

2 Consumer Behavior Is Changing Desktop Browsing Mobile Browsing Mobile Apps 2

3 3 Hours and 40 Minutes per Day Time Spent on Mobile Devices in the US MOBILE TIME SPENT (MINUTES) +35% % BROWSER 14% BROWSER 10% BROWSER Q Q Q Source: Flurry Analytics, comscore, Pandora, Facebook, NetMarketShare. Note: US, June

4 Users Engage Differently on Mobile 3 Hours and 18 Minutes per Day in Mobile Apps 10% BROWSER Social 29% Browser 10% Gaming 32% 3 HOURS 40 MINUTES v Social Gaming 29% 32% 90% APPS Productivity / Utility 19% Entertainment 10% Source: Flurry Analytics, comscore, Pandora, Facebook, NetMarketShare. Note: US, June

5 Users Respond Differently on Mobile Native mobile ads earn 3X more attention than display 23% higher ad quality perception on premium environment Lower click-to-conversion rate compared to desktop 5

6 Ad Formats Are Evolving Noticeable ads are more engaging Ads can make content perception better or worse Overly noticeable ads cost site Personal relevance increases ad effectiveness 6

7 Understanding and Connecting Behaviors Exposure across multiple devices Conversions on different devices, or offline 7

8 Marketers Need to Connect the Dots Incomplete measurement across platforms and devices Difficulty in tying online campaigns to offline sales Need to measure user engagement beyond the click 33% of marketers fear omni-channel approaches 8

9 Yahoo s Approach to Measurement SCALABLE OPEN ACTIONABLE A set of simple and turn-key measurement solutions across channels and devices Ability to use your preferred partner through our thirdparty measurement partnerships A holistic view into how your campaigns are working so you can optimize ROI 9

10 Measuring Marketing Impact ONLINE BEHAVIOR Engagement with Ads Clicks Conversions/Actions App Installs Conversion Value Search Lift OFFLINE SALES/ BEHAVIOR Offline Purchases Offline Spend Store Visits BRAND IMPACT Awareness Favorability Intent Recommendation Reach & Frequency VERIFICATION Audience Composition - Viewability - Fraud - Brand Safety 10

11 Cross-Device Attribution Growing mapped user base enables personalization and attribution across devices ½ of marketers say measuring users across screens is mobile s biggest challenge 600M+ Yahoo mobile users with ~50% mapped across devices 11

12 Cross-Device Case Study Online Retailer CHALLENGE Track users across devices and better understand where conversions were occurring SOLUTION 87% of impressions were served to desktop devices, those impressions only drove 80% of conversions ecpa s on phone and tablet were much lower compared to desktop RECOMMENDATION At least 10% of desktop budget should be re-allocated to target tablets and phones 12

13 Offline Sales Impact Connecting Desktop to Mobile to Offline Sales 50% greater visibility into sales transactions with partnerships including: and more... 13

14 Visit-Through Rate An Important Offline Measure Enabled by Mobile Signals.85% VTR IN STORES 1% CTR ON ADS 14

15 Closed Loop Case Study Department Store CHALLENGE Mirror offline direct mail campaigns to reach existing customers online and understand the offline impact on sales SOLUTION Yahoo s database match solution allowed the advertiser to target their customer list online and measure offline sales impact $20M in-store sales $2.5M online sales 11% incremental lift in spend per shopper who received both online and direct mail exposure (compared to direct mail only) 4:1 incremental return on ad spend 15

16 Closed Loop Case Study Kraft Heinz Company CHALLENGE Kraft Heinz wanted to better understand the impact the SERP has on offline sales SOLUTION Yahoo partnered with Nielsen to conduct a firstof-its-kind research study that would help Kraft Heinz understand the dynamics between SERP, penetration, and offline sales Between 3-9% increase in offline sales of Kraft Mac & Cheese and Philadelphia Cream Cheese Significant rise in penetration for Philadelphia Cream Cheese against private label competitors It was important for us to understand the impact of brand search activity on sales. We expected these dollars were working hard for us, but this research study helped validate and dissect the impact to our business. -Jaime Garrigus, The Kraft Heinz Company 16

17 Verification Yahoo allows third-party measurement for: Audience Composition Viewability Fraud Detection Brand Safety (context) Partners include: Yahoo 2015 Confidential & Proprietary. 17

18 Why Viewability Matters Industry viewability average is 50% 68% increase in campaign performance when viewability was measured at 70% or higher 18

19 Why Fraud Measurement Matters $51B digital spend on display and video globally $6B+ will be lost to bot traffic in

20 Importance of Independent Measurement Your referee shouldn t also be playing the game. 20

21 Questions Every Advertiser Should Ask Am I developing high-quality, relevant creative? Are you able to measure my campaigns across channels and devices? Are you able to measure offline impact of my campaigns? Can I use thirdparty measurement for my campaigns? 21

22 Questions? 22

23 Thank 23

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