TV AND VIDEO AD MEASUREMENT A Byte-Sized Overview
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1 AND VIDEO AD MEASUREMENT A Byte-Sized Overview INTRODUCTION As long as advertising has existed, so has ad measurement. For a marketer, the most important element of most advertising campaigns is the ability to determine how many people have seen the ad, engaged with the ad, or taken an action in response to the ad. Today, there are many providers of and digital video ad measurement, offering ways to define success across the marketing funnel. This Videology Knowledge Lab examines everything you need to know about and video advertising measurement. HOW MEASUREMENT IS USED IN AND VIDEO ADVERTISING Accurate measurement is a crucial element of and video advertising across digital devices. Today, opportunities abound for brands looking to define success, and when executed well, they can help the advertiser determine ROI with great specificity. A smart campaign starts with specific objectives tied to the KPIs of that particular brand. This can be something simple like clicks or GRPs, or something more complicated like offline sales or foot traffic following ad exposure. It s crucial that brands understand the best approaches available given their objectives, their vertical, and their KPIs. Depending on the advertiser, there is a range of measurement categories that may apply to them. Generally, they are organized into four broad categories: Media Metrics This includes measurement of the media itself, which will vary for vs. digital. In, media metrics would primarily refer to GRPs; in video, media metrics could also include GRPs, but also things like click-through rate, view-through rate, unique reach, viewability, as well as measurement of fraudulent activity. Brand Metrics Brand metrics measure changes in perception of the advertiser, including awareness, purchase intent and brand favorability. Used for both online video and, advertisers see these criteria as crucial in defining the strength of their brand. Business Metrics In many ways, media and brand metrics are proxies for determining success since they don t refer to actual sales or actions taken; business metrics, on the other hand, measure specific business results following ad exposure, including both online and offline sales. It may also refer to actions just short of a sale, such as online browsing or placing a product in their shopping cart. Cross-Screen Metrics Today, with the fragmentation of consumer video viewing across screens, the ability to evaluate success across each of those devices (desktop, mobile, OTT, as well as linear ) is becoming more crucial. Cross-screen studies can reveal the total unduplicated audience and the unique overlap between and online advertising, and the outcomes they drive allowing an advertiser take a fully converged approach to both measurement and future planning. Over the past five years, measurement opportunities have proliferated for both linear and video. This is the result of great advancements in technology and investments in companies that extract the enormous amount of data being gathered across all the various devices where consumers are watching video content both linear and digital. Getting a good understanding of what s available is the first step towards measurement success. THE EVOLUTION OF AND VIDEO AD MEASUREMENT In a fast-moving industry like digital advertising, hardly a year goes by without major shifts in measurement opportunities. Both digital video and linear provide a range of measurement criteria far beyond a simple click or GRP number but that was not always the case. Starting in the 1950 s, has traditionally relied on a panel-based approach, where a single measurement provider (Nielsen) obtained all data from self-entry by the consumers themselves. Even the more sophisticated sales studies relied on consumer reporting for example, sending their shopping receipts to Nielsen at the end of the week to determine if a ad drove them to purchase. 1
2 Today, in an ever-growing world of devices and content, much has changed for companies like Nielsen and other newcomers. In advertising, 1:1 online and matches can now facilitate complex measurement tracking including brand studies, in-store sales, foot traffic tracking, and more. With these capabilities in place, it is not only important to measure the success of each channel, but to take a converged measurement approach across all the devices where video is being viewed. The diagram below explores the evolution of and video measurement including the point at which the two began to converge. THE EVOLUTION OF AND VIDEO AD MEASUREMENT s s Nielsen begins measurement in the US via a small panel of households The model of :30 and :60 sec commercials is introduced to, formerly only supported by program sponsors; ad measurement becomes more complicated and more important as a result Cable as we know it today, with original programming, launches and provides more viewing options to consumers, and more content to measure Nielsen starts offering National daily ratings Rentrak is founded as a nationwide video chain, later going on to track movie purchases and rentals across cable providers and to become a leader in set-top-box measurement Nielsen begins offering measurement of cable, VCR and other new technologies Cable and MVPD offerings continue to provide more diversity in programming, as advertisers struggle to determine how to measure exposure Video 1988 Advertisers can now track purchase activity following ad exposure by Nielsen panel members hand-scanning their purchase UPC codes 1994 AT&T runs the world s first display ad, which, like others in this time, is measured by impressions served (regardless of whether a consumer saw or clicked the ad) PC Meter, rebranded as MediaMetrix, becomes first mainstream online measurement system The introduction of the TiVo Digital Video Recorder changes consumer viewing behaviors and poses new challenges (and opportunities) as advertisers contend with time-shifted viewing New measurement players begin to enter the space offering innovative capabilities, including TiVO Research & Analytics in s s comscore is founded, with the goal of building the largest consumer panel to track online commerce with great accuracy through statistical methods and aggressive recruiting In response to the online boom, Nielsen begins offering weekly internet usage and advertisement tracking Google AdWords launches, with the novel approach of charging advertisers only when an ad is clicked As Direct Response advertisers flock to online advertising, the concept of CPA (cost per acquisition) becomes more popular 2
3 Video Traditional advertisers begin asking for cross-screen reports to show results across multiple devices Folowing the advent of the iphone in 2007, comscore purchases M:Metrics, the first big move in mobile measurement Targus Info (now Neustar) begins using offline data to develop online audience segments 2011 Nielsen launches Online Campaign Ratings (OCR) which measures digital video ad ratings similar to ratings as defined by GRPs and in-demo targeting LiveRamp launches from its former company, Rapleaf, allowing brands to onboard CRM data to a cookie beginning to bridge the gap between offline and online audience and devices comscore launches vce MP (Multi-Platform) to measure crosschannel and cross-device reach and frequency (GRPs) Videology completes Nielsen respondent-level integration, merging & digital planning into one single ad platform Facebook launches online to offline/in-store sales analytic offering comscore acquires Rentrak to further support & digital convergence Videology offers the ability to match ad exposure to online sales, a first for the industry Cross-channel measurement is becoming the norm in advertising, as marketers embrace a converged measurement approach Nielsen launches Cross Campaign Ratings (XCR) which measures digital video and ad GRPs across and digital media In an industry first, Videology works with Kantar Shopcom to measure digital video campaigns against offline in-store CPG sales comscore launches vce (validated Campaign Essentials), the equivalent of Nielsen s OCR for measuring -like GRPs on digital video AT&T U-verse and comscore partner to launch cross-channel platform exposure and ROI measurement Google acquires Adometry to further support tying online ad exposure and Search to offline sales Acxiom acquires LiveRamp and further bridges advertisers ability to tie offline data across all homes and devices; Experian also works with LiveRamp Nielsen links mobile devices to Total Ad Ratings and Digital Ad Ratings, supporting the expansion to additional cross-channel measurement LiveRamp develops IdentityLink, graphing all devices within a household Technology advances like machine learning begin to play a larger role in measurement, as marketers look ahead to what may be possible in the years ahead THE CHALLENGES OF AND VIDEO AD MEASUREMENT When determining the accuracy of a or video ad campaign, there are several challenges that advertisers can run into. When considering a measurement approach, it s important first to ensure you have sufficient scale to obtain statistically relevant results, especially with online video where scale can be more constrained than. Timing is also a consideration, and can be a challenge. Adding a measurement study to a campaign can sometimes add weeks or even months to understanding how well it performed against a specific objective. While many advertisers feel that getting measurable results are worth the extra time, it s a consideration marketers should take into account from the planning stage. Perhaps the greatest challenge facing advertisers today is finding a consistent method for defining success across different screens especially when crossing the line between the online and offline worlds. Linear is historically measured at the household level, while online video is usually watched by one viewer holding their individual device, and therefore measured that way. It s important that your measurement approach take this variance into account and use a common currency or single source to define success, so that the results can be compared in an apples-to-apples way. Despite some challenges, there are many companies today providing unique and accurate measurement opportunities for advertisers across the marketing funnel. 3
4 MEASUREMENT OPPORTUNITIES IN AND VIDEO TODAY Today s measurement landscape provides a wealth of studies across both and digital video devices that cater to brands in different verticals. For the most part, studies can either support online ad campaigns, or linear ad campaigns; but, with more recent integration and matching solutions in place through the likes of Experian and Liveramp, the measurement market has quickly grown to include cross-screen online/offline solutions. This is done by tying the video consumption from panels, set-top boxes, Smart s, PC, Mobile, and any other device within a home, to a common household ID. This process allows for the matching of online and offline consumption into single-source measurement, which can then be tied to the purchase behaviors of that home (or device). While the below list of study types and sample vendors is not exhaustive, it provides an in-depth look at many of the top measurement opportunities today for both and online video. Study Type Most Relevant Verticals Description Examples of Providers Brand Brand Lift All Real-time brand metrics that can be used to measure specific campaign objectives related to changes in brand perception following ad exposure, including message recall, awareness, purchase intent and brand favorability. Millward-Brown, GfK Dimestore Website Actions/ Search Auto, Travel, Finance, Insurance Real-time post-exposure studies to identify online behaviors such as site visitations, onsite actions, or online search relative to a control group. This information is garnered through either a pixel on the brand s website or taking census of the internet. Google, or directly through Ad Tech provider Action Social Impact All Studies to determine how social mentions/noise changes following exposure to a brand s ad. MillwardBrown, ispot. Tune-In Entertainment Used by advertisers of programming to tie ad exposure (in the form of a show promo) to subsequent program viewing. Samba Sales Impact: Credit Card Retail, QSR Measurement of online or offline sales lift through the anonymous matching of online ad exposure tied retail transaction as seen through credit card data. These studies typically provide a control vs exposed research analysis of the effectiveness of digital campaigns for driving store-level retail transactions. Kantar Shopcom Mastercard, Oracle Sales Offline Sales Impact: Shopper Loyalty Card Offline Sales Impact: Auto CPG, Retail Auto These studies utilize shopper loyalty card data to analyze pre- and post-campaign offline sales lift. Through an exposed vs control analysis, the study can isolate the impact of online campaign exposure on subsequent in-store purchases. Measures vehicle purchases following ad exposure by matching campaign data with either information obtained directly from dealerships, or with U.S. vehicle registration data Kantar Shopcom, Nielsen Catalina, iri, 84.51, Oracle J.D. Power, Polk, Experian Foot Traffic QSR, Retail, Travel, Auto Measures the offline lift in foot traffic following ad exposure through the anonymous matching of online ad exposure to consumer mobile device GPS tracking. Locations tracked could include stores, cities, auto dealerships and more. Placed, PlaceIQ, FourSquare, NinthDecimal Audience Verification Demo Verification (not applicable to ) Cross-Screen Analysis All All Digital & Digital / Cross Validates campaign online delivery to demo audience, with verification based on particular criteria, e.g. Facebook user data (Nielsen DAR) or norms determined by the measurement provider. Reveals the total unduplicated audience and the unique overlap between and online advertising, with varying levels of detail depending on the study. May include digital video, mobile, C, and display as well as linear. comscore 4
5 WHAT S NEXT FOR AND VIDEO AD MEASUREMENT In the coming years, as continues its movement towards digitization, measurement opportunities will increase, and cross-screen measurement will become even more fluid. With more IP-enabled Smart s taking the place of traditional linear, advertisers will be able to truly measure their audience across devices, and the whole process will be better defined and easier to use. In the meantime, many opportunities are available for accurate, scalable, cross-screen measurement on any device; advertisers just need to find the right partners to set the wheels in motion. HOW VIDEOLOGY APPROACHES AND VIDEO AD MEASUREMENT At Videology, we believe that insights fuel actions, so measurement is a central component to everything we do. As a results-based technology provider, we work with partners across the spectrum to offer advertisers and media companies the ability to determine results based on their own specified objectives, whatever they may be. For us, results are about bottom-line, actionable insights. While we are often asked to measure media results such as strategic audience concentration for, or in-demo reach and frequency, we also encourage our clients to consider measuring how their campaigns are impacting their business itself, with studies to determine online or offline sales lift, brand favorability, or specific actions taken following exposure. Cross-screen measurement is central to our offering. Through a unique integration with Videology customers can track results across consumers both online and offline through a single source match. In doing so, Videology can truly bridge the online and offline worlds with a single audience view, and can produce innovative measurement insights never before available in linear or OTT, such as how a ad drove online sales. To learn more about how you can make the most of online and measurement opportunities, contact solutions@videologygroup.com. ABOUT VIDEOLOGY KNOWLEDGE LAB Videology Knowledge Lab is an educational series meant to shed light on the key topics impacting advertisers and agencies in today s video advertising world. These byte-sized pieces will provide definitions, data and straightforward explanations of complicated subjects, to bring simplicity and clarity to an otherwise complicated industry. FOR A DOWNLOADABLE VERSION OF THIS INFORMATION, PLEASE VISIT 5
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