digital GRPs of Digital s New Metric

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1 digital GRPs The What, Why and How of Digital s New Metric

2 digital GRPs The What, Why and How of Digital s New Metric What is a Digital GRP? See pages 4 6 How is it calculated? See page 6 Why does it matter? See page 7 What is BrandPoint? See pages sneak a peek See BrandPoint, TubeMogul s Digital GRP Buying Platform in action. SCAN THE QR CODE to watch the video.

3 A short lesson in GRP History Gross Rating Points (GRPs) are the standard currency that broadcast TV has used to plan, purchase and measure advertising campaigns since the 1950s. The GRP represents a combination of reach and frequency, measured according to the households reached by an advertisement versus the total targeted population. The first federally regulated television ad ever broadcasted was aired on July 1st, 1941 on then WNBT (now WNBC), during a Brooklyn Dodgers and Philadelphia Phillies baseball game. The spot was for Bulova Watches, it was ten seconds long, showing a static image and reportedly cost $9 a small price to pay for such a historical event. Nine short years later, the 1950s gave way to sponsored programming, regularly scheduled advertisements and viewership ratings. Arthur Nielsen, who had twenty years earlier helped pioneer radio market analysis, shifted gears and developed a ratings system by which a sample audience s (Nielsen Families) viewership could be measured accurately. How Nielsen Did It Viewer Diaries In this early approach viewers manually recorded their viewing habits and reported back to Nielsen for aggregation and analysis. Set Meters This technology-driven approach, which has since become the norm, used a metering device that connected to a Nielsen Families television set and reported minuteby-minute viewership analysis via telephone and now ethernet. Later in the process, Nielsen was able to segment more specific viewer demographics from individual family members within the homes. Using a statistical model, Nielsen was able to render an audience s size, demographics and market by show, network, and daypart. He called these measurements ratings points. Nielsen s methodology (GRP = reach X frequency) has changed little over the years, and to this day Nielsen remains the primary source of TV audience measurement around the world. History in the making The Digital GRP changes online advertising. By measuring television and online video with a common metric, all video performance can be weighted equally, bringing video and television into the same playing field Introducing the world s first video advertising platform that allows brands to plan, buy and measure digital video in GRPs 1930 Nielsen begins to monitor popularity of radio programs 1950 Nielsen Ratings begin to measure television audiences 1922 First paid radio commercial appears 1941 First television advertisement appears 1994 First banner ad served on the Internet 1920 First (commercial) radio broadcast airs in the U.S First regularly scheduled television broadcasts air on NBC 1991 The Internet goes online: the World Wide Web debuts

4 What is a Digital GRP? Why do digital GRPs Matter? A Digital GRP is a unit of measurement that represents the percentage of online viewers reached within a total targeted audience population (e.g. Females in the New York DMA) multiplied by the number of times they were reached. digital GRP Simplified Digital GRPs are calculated by dividing the in-target impressions by the total target population. (Frequency is embedded within the total in-target impression delivery.) digital GRP unique in-target audience reached Total target population in-target impressions delivered Total target population frequency of ad exposure The digital GRP will change how brands integrate digital video advertising into their overall media strategy by: Enabling brands to plan, buy and measure digital video the same way as television Introducing an industry standard to measure the reach and frequency of all video campaigns Delivering increased transparency into a brand s online reach Verifying audience targeting For the first time, brands can accurately and efficiently merge online and offline campaign performance data, taking the advertising and marketing industry one step closer to a single source data model. 6 7

5 5 Benefits for Marketers using digital GRPs Typical Digital GRP Questions Simplifies cross-media planning and budget allocations Improves accountability of digital targeting with verifiable and optimized delivery to online populations Provides a common metric between television and digital video to compare campaign performance and audience reach TV buyers can utilize historical and proprietary performance data to make informed digital investments Increases reach opportunities with expansive availability of online inventory I want to deliver a certain number of GRPs per week, what is the investment level needed to do this? See pages I have a budget, how many GRPs can I get for my investment? See page 15 Can you match the cost per point I am getting on my television buy? See pages

6 The World s Ready for The Digital GRP I fully expect the joint industry effort Making Measurement Make Sense to establish the digital Gross Ratings Point (GRP) as the prevailing metric for premium digital media transactions. At the same time, I anticipate a major increase in programmatic buying, which has emerged as an effective way for publishers to monetize data and drive higher CPMs for excess inventory. As programmatic buying expands, I expect advancements in the use of data and machine learning to offer marketers both ease in largescale, highly targeted media purchases across multiple devices and the capability to dynamically microtarget their messaging. It is at this point that we will reach the promise of always-on marketing. Patrick Dolan, Executive Vice President and COO, IAB The national cable marketplace has been very fluid over the past year and at times, certain demographics are harder to reach. BrandPoint is the perfect outlet for looking at online video to supplement those GRPs. Rob Bochicchio, EVP, Chief Media Investment Officer, ID Media, an IPG media agency GRPs can be great equalizers in media mix planning. Perianne Grignon, SVP and CMO, x+1 GRP-style metrics are suitable when it comes to answering who to buy from, how much, and what to pay. Thomas Acquaviva, SVP Strategic Accounts at Nielsen Online BrandPoint from TubeMogul gives us the ability to plan GRPs, look at audience data and make a determination of where we want to serve our ads based on a number of different factors. Robert Brill, VP Strategy and Operations, Fulcrum

7 TubeMogul s Digital GRP Buying Platform MIRROR BROADCAST BUYING PRACTICES by purchasing video inventory using GRPs MEASUREMENT COMMONALITY FOR TV AND DIGITAL BUYS Guaranteed cost per point Set targets for gender, age and GRPs Choose flight dates and inventory quality tiers FORECASTS auto- MATICALLY UPDATE WITH EVERY PARAMETER YOU SELECT, allowing you to see exactly how each change affects your campaigns Select sites, exchanges, DMAs and advanced targeting PLAN AND OPTIMIZE GRP BUYS ACROSS PRIVATE INVENTORY See exactly how sites score based on the match rate to a particular demo 12 13

8 How Calculates and Delivers GRPs Online An Example of in Action Determines the audience and the total target population size Calculates the on-target % or reach we can deliver within the total targeted population by using our proprietary audience segments coupled with 3rd party data 1 Determines the bulk CPM required to reach the audience Determines the frequency required to produce the desired GRPs Calculates GRP and CPP Serves ads across all digital platforms using verifiable audience segments 2 A brand marketer approaches TubeMogul wanting to run a digital video campaign targeting males in conjunction with their national television schedule. They have requested the following information: What is the total number of impressions possible and how many GRPs can we deliver with a budget of $400K? Here is a breakdown of the pre-campaign planning: Total Population: U.S. Males M Verified Reach: U.S. Males M 1 Bulk CPM for Demographic $15 Campaign Budget $400K Cost Per Point 2 $5,256 Total Impressions 26.7M Frequency / Viewer (on average) 6x GRP TubeMogul uses proprietary, as well as 3rd party audience data from multiple providers to target and re-target audiences. 2 TubeMogul uses Nielsen OCR data integrated in the platform to verify targeted audience reach. 1 Demographic data verified by Nielsen OCR 2 Cost Per Point = 400,000/76.1 = $5,256 3 GRP = 4.4M/35M x 6 x 100 =

9 How it works Audience Delivery Methods Audience Modeling and Forecasting TubeMogul BrandPoint is built on proprietary audience modeling technology that continually learns as campaigns are run to increase the on-target accuracy rate of each audience segment. 1 TRUTH SET Collect large sample of online audience whose demographic information is known Verify age and gender with Nielsen OCR ACTIVITY DATA Characteristics of Truth Set analyzed and predictive algorithm created TubeMogul applies a predictive modeling algorithm to analyze unknown online users and 3rd party data segments The proprietary TubeMogul audience segments and 3rd party data are tested against Nielsen to verify ontarget percentage 5 TUBEMOGUL S AUDIENCE MODELING ALGORITHM IMPROVES IN REAL-TIME TubeMogul s Machine Learning System gets smarter at predicting audience demographics the more impressions it sees Nielsen OCR integrated in the BrandPoint dashboard for seamless audience and GRP reporting Accurately identifies the audience via actual user demographic data from Facebook and other 3rd party data providers Evaluates unique reach and frequency across campaigns, regions and within each publisher GRP outputs for ad campaigns are delivered overnight and consistent with Nielsen TV Ratings 16 17

10 Cost Savings per dma Designated Market Area (DMA) DMA size CPP CPM CPP CPM In the top 25 U.S. DMAs, BrandPoint s CPP and CPM for tier 1-2 sites were cheaper than broadcast 76% of the time. Television Tubemogul cost savings NEW YORK 9,249,290 $2, $32.31 $2, $ % 26% LOS ANGELES 8,132,310 $6, $84.43 $2, $ % 68% CHICAGO 4,256,032 $1, $38.71 $1, $ % 35% PHILADELPHIA 3,352,295 $1, $34.95 $ $ % 28% DALLAS-FT. WORTH 3,273,320 $1, $45.28 $ $ % 48% SAN FRANCISCO-OAKland-SAN JOSe 3,172,717 $2, $73.59 $ $ % 68% BOSTON (MANCHESTER) 2,700,607 $ $34.01 $ $ % 7% WASHINGTON, DC (HAGeRSToWN) 2,955,248 $1, $36.35 $ $ % 32% ATLANTA 2,907,839 $ $32.55 $ $ % 16% HOUSTON 2,922,351 $1, $53.49 $ $ % 50% DETROIT 2,014,691 $ $25.70 $ $ % +1% SEATTLE-TACOMA 2,125,382 $ $33.96 $ $ % 22% PHOENIX (PRESCOTT) 2,125,996 $1, $56.61 $ $ % 46% TAMPA-ST. PETErsburg (SARASOTA) 1,690,273 $ $52.92 $ $ % 51% MINNEAPOLIS-ST. PAUL 1,927,109 $ $21.90 $ $ % +14% MIAMI-FT. LAUDERDALE 1,962,335 $1, $59.26 $ $ % 55% DENVER 1,831,650 $ $49.71 $ $ % 50% CLEVELAND-AKRON (CANTON) 1,498,991 $ $23.43 $ $ % +7% ORLANDO-DAYTONA BeaCH-MELBR 1,522,715 $ $37.53 $ $ % 29% SACRAMeNTO-STocKTON-MODESTO 1,729,071 $ $36.61 $ $ % 25% ST. LOUIS 1,309,645 $ $22.07 $ $ % +19% PORTLAND, OR 1,353,509 $ $36.24 $ $ % 23% PITTSBURGH 1,115,118 $ $26.17 $ $ % +1% RALEIGH-DURHAM (FAYETteViLLE) 1,305,694 $ $30.06 $ $ % 10% CHARLOTTE 1,303,496 $ $33.68 $ $ % 19% CPP CPM Top 25 DMAs by Total Population Designated Market Area Pricing for Adults Rates are based on average TV pricing and are subject to change. TubeMogul rates are based on Tier 1 and 2 site inventory

11 The future of digital GRPs As more campaigns are run through TubeMogul, the audience on-target percentage grows more accurate across all demographics. This increased accuracy will result in fewer wasted impressions and in turn a lower Cost Per Point. Glossary Cost Per Thousand (CPM) The cost to deliver one thousand ad impressions Cost Per Point (CPP) Cost of reaching one-percentage of an audience in any given demographic segment Cross-Platform The ability to publish or measure performance across different media channels and technologies Facebook Data Demographic user data that is captured and verified by Facebook Frequency The number of times a single viewer is exposed to an ad GRP Gross rating point, measuring the size of an audience reached by an ad Impression A single delivery of an ad to a viewer Cost per point Nielsen Online Campaign Ratings (OCR) A digital measurement solution that measures audience reach and frequency and the resulting GRPs for digital advertising campaigns On-Target Percentage The impressions delivered to the target audience as a percentage of total On-Target Percent Optimization Process of improving performance of ad units based on campaign variables Programmatic Buying The ability to automate the process by which ads are bought, sold, and served online reach The unique number of people or households who are exposed to a defined media channel or medium during a specific period of time Real-Time Bidding (RTB) The ability to bid on and purchase ads one impression at a time in real-time Total Population A measure of the total number of people within a defined audience segment 20 21

12 Where to Find us: The TubeMogul Brand platform TubeMogul is the leader in programmatic brand marketing. The world s largest brands and agencies centralize their video advertising on TubeMogul s enterprise platform. Created specifically for brand marketers, TubeMogul s platform enables the execution of scalable digital video campaigns, while providing the measurability and accountability marketers demand. Digital GRP Buying Brand Focus Emeryville, CA (HQ) New York London Tokyo Singapore Sydney Toronto Chicago Detroit Los Angeles Kiev RTB-Enabled Easy/Self-Serve Platform Formulas At a glance Site-Level Analytics digital GRP unique in-target audience reached frequency 100 of ad exposure Total target population All Screens Brand Safety Cpp Campaign spend GRPs delivered Private Marketplace on-target CPM Bulk CPM On-Target Percentage All content 2013 TubeMogul. All rights reserved. Design Jessi Rymill, weareclosedmondays.com Platform Brand Survey Integrated with All Supply Sources 23

13 simple Buy video ads in any format, on any device, at massive scale effective Real-time buying based on brand metrics delivers successful campaigns accountable Site-by-site reporting and multiple layers of protection provide ultimate brand accountability TubeMogul See BrandPoint, TubeMogul s Digital GRP Buying Platform in action. SCAN THE QR CODE to watch the video.

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