The State of Advertising Measurement Report

Transcription

1 Report August 2018 What Advertisers Think The More You Know The Stronger Your Brand The More You ll Sell

2 Advertiser Perceptions by the Numbers YEARS STUDIES COMPANIES CLIENTS PRESENTATIONS of proprietary, historical data about what advertisers think conducted per year: syndicated & custom, quantitative & qualitative, U.S. & Global continuously measured across digital, television, radio, print, agencies and ad tech ranging from traditional media to emerging ad tech delivered per year, sparking active dialogues about key issues in the marketplace 2

3 Our Clients Partial list 3

4 Today s Hosts The State of Justin Fromm Vice President, Business Intelligence Advertiser Perceptions Stuart Schneiderman Vice President, Business Intelligence Advertiser Perceptions Frank Papsadore Executive Vice President, Marketing Advertiser Perceptions Howard Shimmel President Janus Strategy & Insights 4

5 Methodology and Respondent Profile The State of 303 interviews conducted Fielded April 2018 Sample: Marketer and Agency contacts from The Advertiser Perceptions Media Decision Maker Database Qualification: Measure advertising in past 12 months/ involved in measurement decision-making 51% Agency 49% Marketer WITH ANNUAL AD BUDGETS: RANGING IN TITLE: $30 MILLION+ 46% 54% $5-30 MILLION SENIOR MID-LEVEL JUNIOR 45% VP+ 36% Director/ Supervisor 19% Mgr./Buyer/ Planner 5

6 in the News Two Steps Forward, One Step Back The State of 6

7 Overview The State of is table stakes for the ad industry. Advertiser Perceptions is among the first to quantify advertisers' attitudes about this critical topic with The State of Report. Among our findings: issues dominate advertisers' biggest challenges has multiple shortcomings from an inability to measure across screens holistically, to identifying where to attribute success to an over-reliance on cookies Accuracy getting to the true value - is the one thing many advertisers want to solve for Quality measurement impacts how many ad dollars are spent and where While advertisers don t put all the blame on measurement providers, they are very open to doing business with new (to them) measurement companies 7

8 Identifying the Challenges

9 When advertisers specify pain points, measurement issues dominate The State of Biggest Issues Facing Advertisers 1. Determining ROI and ROAS 2. Ad fraud 3. Inaccurate measurement 4. Ad viewability 5. Incomplete cross-media measurement 6. Poor/inaccurate targeting 7. Ad adjacency to unsafe content 8. Google and Facebook's duopoly 9. Staying ahead of the next big consumer trend 10. Keeping up with the latest advances/ad technologies 11. Ad adjacency to low quality content 12. Lack of transparency into inventory supply 13. Unlocking value from data sources 9

10 Industry sentiment for measurement is low The State of Only 11% of advertisers are extremely satisfied with the current state of measurement 3-in-5 advertisers believe measurement accuracy, usefulness and actionability has declined/stayed the same in the past 12 months 11

11 Why is measurement critical? Because if we can't measure it, we can't monetize it 87% hold back spending due to poor measurement 67% hold back adopting new media formats due to poor measurement 12

12 One way to monetize inventory is to guarantee performance and quality measurement is necessary to execute guarantees Importance of Performance Guarantees Rank 1 Percentage of Ad Campaigns Including Performance Guarantees Average Percent Viewability guarantee 31% Viewability guarantee 37% Audience demo guarantee 23% Audience demo guarantee 35% Sales & ROAS guarantee 19% Ad Completion guarantee 31% Ad Completion guarantee 15% Sales & ROAS guarantee 21% Brand lift guarantee 10% Brand lift guarantee 18% 13

13 First- and third-party measurement have significant preand post-campaign roles Most Valuable Types of When Evaluating Media Placements (pre-sale) Campaign Performance (post-sale) Audience 47% Conversion Tracking (click-thru, download, purchase, etc.) 50% Viewability 42% Audience 43% Optimization 36% Optimization 35% Brand Safety 34% Viewability 29% Conversion Tracking (click-thru, download, purchase, etc.) 33% Survey-based Ad Effectiveness Research 26% Media Mix Modeling 28% Media Mix Modeling 25% Survey-based Ad Effectiveness Research 21% Multi-Touch Attribution Modeling 21% Location/Visit-based attribution 15% Location/Visit-based attribution 19% Multi-Touch Attribution Modeling 14% Brand Safety 17% 14

14 The biggest challenges around measurement too incomplete, conflicting, inflated and artificial Top Challenges 1. Inability to measure cross-platform media buys holistically 2. Conflicting results from different sources 3. Too reliant on cookie-based technology 4. Overestimation of performance metrics 5. Insufficient attribution for every media type 6. Complexity of integrating data sources 7. Glitches in reporting technology/algorithms 8. Lack of industry consensus on which tools to use 9. Results are too slow to take action on 10. Lack of 3rd party accreditation 11. Too many black box solutions 12. Incomplete coverage underestimates media consumption 13. Too reliant on panel data 15

15 If advertisers could improve one thing about measurement... (in their own words) 17

16 companies are not held solely responsible for the state of measurement, nor expected to solve this alone Who Is Most Accountable for Poor/Inadequate Rank #1 Who Is Most Responsible for Leading The Way Towards Improving Rank #1 providers 26% providers 26% Ad tech companies 18% Media companies/brands 15% Media companies/brands 18% Media Rating Council (MRC) 14% Media Agencies 11% Ad tech companies 13% Industry Associations (IAB, ARF, TVB, etc.) 10% Media Agencies 11% Brand-side marketers 9% Industry Associations (IAB, ARF, TVB, etc.) 11% Media Rating Council (MRC) 8% Brand-side marketers 10% 18

17 The Provider Landscape

18 Quality deliverables, actionability and cost matter most when choosing measurement providers past experience much less a factor Importance of Attributes When Selecting Providers Rated Extremely Important Quality of deliverable 42% Actionable recommendations/insights Cost effectiveness Cross-device measurement Reputation of company 36% 35% 33% 33% Easy to use/integrate Personalized/high quality support Innovative features or capabilities Case studies Previous experience working with the provider 27% 26% 23% 22% 18% 20

19 When asked to name a company to match important attributes, most are unsure Companies Considered The Best at [INSERT ATTRIBUTE] Top Mentions Unsure Nielsen Google ComScore Quality of deliverable 43% 21% 7% 5% Actionable recommendations/insights 44% 20% 9% 4% Cost effectiveness 49% 19% 9% 8% Cross-device measurement 48% 20% 7% 5% Reputation of company 36% 30% 10% 3% Easy to use/integrate 48% 19% 8% 3% Personalized/high quality support 46% 17% 9% 4% Innovative features or capabilities 47% 22% 8% 4% Case studies 47% 21% 10% 2% Previous experience working with the provider 40% 26% 8% 5% 21

20 Taking a Closer Look Into Cross Platform

21 About three-quarters of advertisers run cross-media campaigns but could this be higher with better measurement? Whether Currently Running Ad Campaigns Across Platforms, Screens or Devices No 29% Yes 71% Agency 77% Marketer 66% 23

22 Cross-platform measurement: where we are is not where we need to be Rating Current Offerings (listed in order of importance) excellent good fair poor DESKTOP MOBILE 16% 60% 23% 1% DESKTOP VIDEO 14% 44% 33% 9% TV MOBILE VIDEO 12% 45% 33% 10% STB/VOD 14% 36% 40% 10% TV OTT/CONNECTED TV 12% 37% 42% 9% 24

23 A majority think TV and digital video will have the same KPIs by 2022 The State of Length of Time for TV and Digital Video to be Measured by the Same Performance Metrics 32% 22% 21% 14% 4% % Already in place Within the next year Within the next 2 years Within the next 3 years More than 3 years from now Never 26

24 Takeaways

25 1. 5 Key Takeaways The measurement industry may best be described by the adage "two steps forward, one step back." At the same time there are measurement advances, the industry is undermined by concerns over accuracy and transparency 2. Advertisers admit these concerns can impact where dollars go and how much is spent. Newer media (e.g., OTT, ATV, et al) may be most impacted 3. Cross-screen and cross-platform measurement is also a significant pain point for advertisers, and being able to attribute what drives success is not there 4. Where do we go from here? More is needed from measurement companies more innovation, more partnering with clients to experiment and more transparency 5. But the marketplace believes measurement companies are not alone in this industry leaders like the MRC, CIMM, IAB et al have a role, as does ad tech and the sell-side to take two steps and more forward 28

26 Currently Available Reports Advertiser Intelligence Report Digital Campaign Management Report Programmatic Intelligence Report DMP, SSP, DSP The Ad Report The Upfront / NewFront Report The Mobile Report The Native and Branded Content Report The Video Report Plus A Variety of Proprietary Advertiser Insights and Events 32

27 THANK YOU! Justin Fromm Stuart Schneiderman Frank Papsadore What Advertisers Think The More You Know The Stronger Your Brand The More You ll Sell AdvertiserPerceptions.com Twitter.com/adperceptions Linkedin.com/company/advertiser-perceptions