PUTTING SCIENCE BEHIND THE STANDARDS. A scientific study of viewability and ad effectiveness

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1 PUTTING SCIENCE BEHIND THE STANDARDS A scientific study of viewability and ad effectiveness

4 RESULTS 1. What value do ads that meet the MRC minimum viewability standard offer? When we look at the combined results of standard banner ads, large format ads, and video ads, we find that if an ad exactly meets the minimum MRC standard (Table 2) it does not significantly impact brand metrics. However, although the MRC standard does not appear to be a magical threshold for ad effectiveness, viewability is still highly related to ad effectiveness. When we look at the two dimensions of the standard: time in view and percent in view, as they relate to ad effectiveness with the other controlled, there is a distinct rise with viewability. Specifically, after meeting the MRC standard for each dimension, ad effectiveness dramatically improves, as seen in Graphs 1 and 2. Table 2 MRC STANDARDS FOR VIEWABILITY At least 50% in view For a minimum of 1 second At least 30% in view For a minimum of 1 second At least 50% in view For a minimum of 2 consecutive seconds STANDARD BANNER ADS RICH MEDIA/LARGE FORMAT ADS VIDEO ADS Graph 1 AD RECALL BY TIME IN VIEW Graph 2 AD RECALL BY PERCENT IN VIEW PERCENT CHANGE IN RECALL (DELTA) 1% 3% 8%* 17%* PERCENT CHANGE IN RECALL (DELTA) 5% 4% 9%* 11%* UNDER STANDARD AT MRC STANDARD 4 SEC 7 SEC UNDER STANDARD AT MRC STANDARD 75% 100% (Averaged delta for all ad types) (Averaged delta for all ad types) 3 PUTTING SCIENCE BEHIND THE STANDARDS * Statistically significant difference between control and test at >=90% confidence. % in view under the MRC standard excludes large format ads since it was not tested.

5 2. What is the relationship between viewability of an individual ad and ad effectiveness? Graphs 1 and 2 showed us that ad effectiveness does increase with viewability. When we let consumers experience the ads in a normal consumer-driven experience, recall measures were quite high so we know these ads are working. We also saw that basic consumer attention, as measured by our eye tracking data, increased with viewability. However, when we compared the two outcomes, we found that consumer attention does not necessarily correlate well with ad effectiveness (Graph 3). Even though more people may glance at the ad, it does not guarantee that it is being internalized. Especially if, at lower viewability levels, consumers are not able to discern identifying information about the ad, it follows that they will not be able to remember it. Graph 3 CONSUMER ATTENTION VS AD RECALL Results include all ad types for comparable test cells 74% % Who Looked At Ad % Ad Recall 51% 32% 17% 17% UNDER STANDARD MEETS MRC STANDARD ABOVE STANDARD We did find that exceeding the MRC standards unsurprisingly has a significant impact on ad recall, with a recall level of 16%. What may be surprising, though, is that ads with viewability under the MRC standard (did not meet at least one viewability criteria), are significantly impactful against both the control and ads at the standard, with a recall of 6%. Since this result was unexpected, we dug a little deeper. We found that because the MRC standard consists of two dimensions, if the time dimension is above standard while the pixels in view are below standard, there is still a significant impact on ad recall (as seen in Graph 4). It follows then, that not all ads that are above the standard (one dimension is above standard while the other is at or above) are significant. Graph 5 shows that when time in view is only at the standard even if the percent in view is above, the ad recall impact is not significant. 4 PUTTING SCIENCE BEHIND THE STANDARDS

7 TIME IN VIEW 0.5 Sec 1 Sec 4 Sec 7 Sec Table 3 PREDICTED CHANCE CONSUMERS WILL RECALL STANDARD BANNER AD 100% 20% 32% 38% 19% chance of recall at the standard % chance over doubles from lowest to highest viewability PERCENT IN VIEW 75% 50% 16% 19% 19% 24% 31% 30% 29% Represents a > chance of recall TIME IN VIEW 0.5 Sec 1 Sec 4 Sec 7 Sec Table 4 PREDICTED CHANCE CONSUMERS WILL RECALL LARGE FORMAT AD 100% 22% 19% 32% 39% 17% chance of recall at the MRC standard % chance over doubles from lowest to highest viewability PERCENT IN VIEW 75% 50% 14% 11% 11% 18% 35% 30% 18% 17% 15% 13% Represents a > chance of recall 6 PUTTING SCIENCE BEHIND THE STANDARDS Results based on propensity scores generated through regression modeling

8 TIME IN VIEW 0.5 Sec 1 Sec 4 Sec 7 Sec Table 5 PREDICTED CHANCE CONSUMERS WILL RECALL VIDEO AD 100% 8% 12% 32% 30% 10% chance of recall at the MRC standard % chance over triples from lowest to highest viewability PERCENT IN VIEW 75% 50% 13% 13% 34% 12% 10% 24% 34% 9% 17% 10% 26% Represents a > chance of recall WHAT WE SEE REPEATEDLY FROM THESE RESULTS IS THAT TIME IN VIEW IS KING. Overall, when percent in view is lower but time in view is higher than the standard, there is still a significant 10.4% ad recall. Compared to a non-significant recall when percent in view is higher than the standard and time in view is lower, there is an important distinction. Our regression modeling confirmed this conclusion: time in view is responsible for most of the variance in ad effectiveness metrics. It is a much better predictor of whether or not a consumer will be able to remember the ad compared to what percent of the ad was in view. Lastly, when we tracked consumer attention using eye tracking data, consumers attention increased only with the time the ad was in view not the percent visible. Consumers desperately need more time to see the ad in order to connect to it. 7 PUTTING SCIENCE BEHIND THE STANDARDS Results based on propensity scores generated through regression modeling

10 CONCLUSION WHILE SOME IMPRESSIONS UNDER THE STANDARD MIGHT HAVE IMPACT, WE ALSO MUST CONSIDER THAT THE MRC REPORTS A 77.2% CHANCE THAT ALL ADS THAT MEET THE STANDARD WILL EVENTUALLY EXCEED IT TO REACH 100% OF PIXELS IN VIEW. IN THE REAL WORLD, VIEWABILITY IS A MOVING TARGET. We know that ads that exceed the standard have the highest effectiveness, so it is an important diagnostic metric. If we really wanted to tie viewability with ad effectiveness, the advertising community could employ the method of paying different amounts for varying levels of viewability; however, this would be extremely difficult to implement on a large scale across established platforms. What is most important is that we do not lose of sight of the purpose of the MRC viewability standards. The original intention of the MRC standards was not to guarantee ad effectiveness, but to ensure ads have the opportunity to be seen. The effectiveness of the creative ultimately rests in the hands of the creative and targeting strategy. Viewability is an important metric for advertisers, but perhaps it is not a KPI. What is most important for advertisers to consider based on this research is 1. The different strategies listed in the previous section during ad creative development and 2. The often ignored importance of the duration of a consumer exposure when ad placement is being selected. 9 PUTTING SCIENCE BEHIND THE STANDARDS

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