The evolution of the Internet & the importance of measurement

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1 The evolution of the Internet & the importance of measurement

2 The speed of change Internet usage and penetration across EMEA 2

3 The speed of change Broadband quality for almost everyone Source: ISPA, private connec3ons ( free connec3ons not included), Belgium 3

4 The speed of broadband speed within worldwide top ten 4

5 According to the Microsoft report Europe Logs On * The internet consumption will soon outstrip traditional TV Internet use on PCs will drop from 95% today to only 50% over the next 5 years as other web enabled devices such as IPTV, games consoles and mobile phones become more popular Online video has established itself as the most popular online entertainment application, with more than 1 in 4 (28%) Europeans watching short or full-length videos an increase of over 150% since 2006 Content (such as news websites and online video) and communication services (such as and social networks) represent 65% of all time spent online * Source: Europe Logs On European Internet Trends of Today and Tomorrow Microsoft, April

6 Social Networks Play an ever increasing role in daily life 4.6 million Belgians are active in a social network Comscore highlights 130 social networks being used by Belgians on a daily basis Average users makes up to 20 visits per month Average time spent per visit 12 minutes Facebook & Netlog, n 1 & 2 Social Networks * Source: Comscore 6

7 Social media usage still is locally determined Which country generates most of the blogs? Which country generates the less? In which country the gap between reading and believing a blog content is the highest? Which country has the most media pirates? Which country has the most sites containing price comparisons? In which country the internet penetration on the work floor is decreasing since 2004? Sweden The Netherlands Poland Belgium Germany Italy Sources: Nvision, comscore, EIAA, Forrester 7

8 Web & Search usage in Belgium 5,5 million* Regular Internet users in Belgium 54%*** 5 million* Use Search engines regularly (92% of internet users) What s your default homepage?** Search Reach in Belgium* 50% Reach 88% Sources: *Comscore Oct 2009; ** IAB SEM Study, Insights 8

9 Search websites have the highest reach of all online properties in Belgium Source: Comscore (October 2009) 9

10 The digital transformation of marketing 10

11 Transformation of the media landscape radio mags newspapers advertising online ads outdoor television BOUGHT MEDIA Typical corporate media spend drives people to Owned Media bricks &" mortar mobile product" site(s) corporate" website OWNED MEDIA All media directly owned by the brand. These destinations provide a platform to drive marketing messages and tools to create Earned Media campaign" site(s) community DM / CRM EARNED MEDIA First-person commentary and content about the brand posted and shared across a variety of venues Social Media outlets also support both Bought Media (e.g., ad banners, sem/ppc, etc.) and Owned Media (e.g., widgets, apps, etc.) video sharing social networks blogs social" media forums personal pages msm sites 11

12 The need to measure The truth is what they tell you; reality is what you measure

13 Measurement topics that need (y)our attention Web audience measurement Ad spend auditing Performance benchmarking The intermedia / interchannel comparison The KPI fit The ROI measurement 13

14 Campaign measurement The beginning of ad serving in the late nineties At the end of the nineties internet campaigns were measured by different sources and limited to impressions and clicks. Media agencies put more time in comparing the viability of these different sources than in planning and buying campaigns. Solution: third party ad serving management: Worldwide recognized tools for measuring internet (display) campaigns Centralized campaign control Result harmonizations Counting, follow-up, modification & optimization, Negotiation tool Reporting tool for capitalization on historic lay down 14

15 Source: Digitrack / DoubleClick 15

16 Campaign measurement It s not only about impressions and clicks. At the beginning of 2000 ad servers developed techniques to measure the awareness effect of a campaign -- > Post-click and post-impressions behavior is measurable as from now: Behavioral measurement of the visitor of the advertiser s site after seeing the banner on a site (post-impression behavior) OR after having clicked on a banner (post-click behavior). Gives an answer on : How much leads a campaign has generated? Which creative generated the most leads? What is the cost per lead? Which sites or channels are the most performing? Allows optimization and evaluation of sites and campaigns. 16

17 Campaign measurement And then there was search When Google opened his offices in Belgium, the investments in SEA increased very fast. Also the Belgian market was confronted with ROI data as results of a campaign in real time. Example of the evolution of campaign ROI in Search 17

18 Campaign measurement Match search data with display data The reporting becomes more and more complex, with the development of dashboard as a necessary result. Measuring, optimisation and reporting is again a full time job. 18

19 Campaign measurement Internet and KPI s Interaction with the ad Traffic generated on the website Views (video) Online subscriptions Online sales Reach Repetition Attitudinal measures (awareness, etc.) Positive/negative emotions & conversations Internet allows to measure real time data, but the tools and infrastructure is only made to track internet campaigns However the impact of a campaign is the result of a complete media mix Ideally however the impact of the Internet part of a marketing mix should be measured by using one central data dashboard, with same definitions and methodology than for other media 19

20 Web audience measurement So, we ve come a long way from multi sources & multi defined clicks, impressions & page view data to unisource CIM surveys CIM Metriweb measuring the web traffic CIM Metriprofil analysing web audiences Source: CIM Metriprofil 20

21 Web audience measurement But there are still some important hurdles to overcome CIM Metriweb & Metriprofil only measure a part of the Internet reality Combination of sources still is a necessity to complete the total picture (e.g. Comscore) Source: CIM Metriprofil & Comscore 21

22 Ad spend auditing Market analysis for monitoring ad spends on the web are based on CIM MDB Source: Mediamark, CIM MDB 22

23 Ad spend auditing Market analysis for monitoring ad spends on the web are based on CIM MDB This gives an ever smaller vision on reality Source: IAB AdEx 2008 sales houses (+ Agencies for keyword) 23

24 Ad spend auditing Market analysis for monitoring ad spends on the web are based on CIM MDB This gives an ever smaller vision on reality 24

25 Performance benchmarking The intermedia / interchannel comparison or the necessity to measure crossmedia performances as a result of the conversion of technology All major media agencies offer software applications that estimate combined media performances. Disadvantage: all are based on knowledge base hypothesis rather than 360 media research The «Appollo»-project, Touchpoint 2.0 in the UK, Médiamétrie Crossmedia in France and the CIM «Hub»-project in Belgium are initiatives that tend to integrate media research of different surveys 25

26 Performance benchmarking The KPI fit 26

27 Social media: how to measure this impactful, uncontrollable source of information Social media tracking Monitoring, measuring volumes and analysing discussions on social media: News, forums, blogs (open source) Product launches Campaign effects Competitive buzz, WOM trends,... Consumer insights Results per country / language Daily updates Interactive graphs... Source: AOenPo 27

28 Performance benchmarking The ROI measurement through econometric modeling In most markets, and with offline media, the more you spend the more you get. But the extra spend past a certain point is less effective (has lower ROI) 28

29 Performance benchmarking The ROI measurement through econometric modeling An example from our database of cases in the Telecom sector At a total campaign level, the least effective campaigns use dominant TV and smallest amount of Online 29

30 Thank you for your attention 30

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