A Toast to the Media Mega Trends that will Drive Our Business in 2016
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1 A Toast to the Media Mega Trends that will Drive Our Business in 2016 MRC January 2016 Joan FitzGerald SVP Television and Cross-Media Services For info about the proprietary technology used in comscore products, refer to
2 Predictions for Digital commerce, and especially mobile m-commerce, will continue to change the way we shop, and will have a dramatic impact on how retailers think about advertising 3. Advanced targets will be ubiquitous in our transactional systems, providing choice for both the sellers and the buyers in how to execute the buys for the brands 2. We will be Counting It All, and transacting seamlessly on integrated, comprehensive audience measurements Live TV, DVR, VOD, Digital, Connected TV wherever the consumer uses Video 4. Advertisers won t have to worry about Non-viewable, Non-human, Invalid online and mobile impressions because excluding them will be automatic and simply the cost of doing business comscore, Inc. Proprietary. 2
3 Predictions for Digital Commerce, and especially mobile m-commerce, will continue to change the way we shop, and will have a dramatic impact on how retailers think about advertising comscore, Inc. Proprietary. 3
4 In Today s Wall Street Journal: Race for Web Sales Leaves Some in the Dust Earlier this month, athletic retailer Finish Line Inc., FINL 0.27 % which installed new infrastructure in September to fill online orders, said it would close about a quarter of its 600 stores after its new warehousemanagement system failed to process orders fast enough. The company said the failure cost it $32 million in lost sales as the peak holiday selling season got under way. comscore, Inc. Proprietary. 4
5 comscore, Inc. Proprietary. 5
6 Continued online sales growth during the key shopping days in 2015 Holiday Season Desktop e-commerce Spending ($ Millions) % Change Holiday Season 2015 (Nov. 1- Dec. 31) $53,304 $56, % Thanksgiving (Nov. 26) $1,009 $1, % Black Friday (Nov. 27) $1,505 $1, % Holiday Weekend (Nov ) $2,012 $2, % Cyber Monday (Nov. 30) $2,038 $2, % Thanksgiving thru Cyber Monday $6,564 $7, % Cyber Week (Nov. 30- Dec. 6)* December Week 2 (Dec. 7-13)* December Week 3 (Dec )* Christmas Week (Dec )* $9,126 $8,618 $5,817 $3,135 $9,745 $8,627 $6,559 $3, % +0.1% +12.7% +3.0% Source: comscore e-commerce Measurement * Based on corresponding shopping days in 2014 comscore, Inc. Proprietary. 6
7 Holiday season desktop sales growth was driven by buyers spending more per transaction Holiday Season 2014 Holiday Season 2015 Y/Y % Change Dollars (MM) $53,305 $56, % Buyers (000) 201, , % Transactions (000) 670, , % Dollars per Buyer $265 $ % Dollars per Transaction $80 $ % Transaction per Buyer % Source: comscore e-commerce Measurement comscore, Inc. Proprietary. 7
8 comscore, Inc. Proprietary. 8
9 11/1/ /2/ /3/ /4/ /5/ /6/ /7/ /8/ /9/ /10/ /11/ /12/ /13/ /14/ /15/ /16/ /17/ /18/ /19/ /20/ /21/ /22/ /23/ /24/ /25/ /26/ /27/ /28/ /29/ /30/ /1/ /2/ /3/ /4/ /5/ /6/ /7/ /8/ /9/ /10/ /11/ /12/ /13/ /14/ /15/ /16/ /17/ /18/ /19/ /20/ /21/ /22/ /23/ /24/ /25/ /26/ /27/ /28/ /29/ /30/ /31/2015 Millions Mobile retail site visits spiked on Black Friday, while desktop visits peaked on Cyber Monday Black Friday Cyber Monday Green Monday Christmas Day 600 Retail Category Visits by Platform Multi-Platform 300 Mobile Desktop - Source: comscore Custom Solutions comscore, Inc. Proprietary. 9
10 1/1/15 1/8/15 1/15/15 1/22/15 1/29/15 2/5/15 2/12/15 2/19/15 2/26/15 3/5/15 3/12/15 3/19/15 3/26/15 4/2/15 4/9/15 4/16/15 4/23/15 4/30/15 5/7/15 5/14/15 5/21/15 5/28/15 6/4/15 6/11/15 6/18/15 6/25/15 7/2/15 7/9/15 7/16/15 7/23/15 7/30/15 8/6/15 8/13/15 8/20/15 8/27/15 9/3/15 9/10/15 9/17/15 9/24/15 10/1/15 10/8/15 10/15/15 10/22/15 10/29/15 11/5/15 11/12/15 11/19/15 11/26/15 12/3/15 12/10/15 12/17/15 12/24/15 12/31/15 Amazon Prime enrollments showed spikes on Prime Day in July and during the Holiday Season in December Amazon U.S. Desktop Prime Weekly Enrollment Prime Enrollments peaked during Prime Day with 5.4x 1H 2015 weekly average Prime Enrollments peaked again during the Holidays with 2.3x 1H 2015 weekly average Source: comscore Custom Solutions comscore, Inc. Proprietary. 10
11 TOP RETAILER MULTI-PLATFORM VISITS 2015 HOLIDAY SEASON Amazon gets more visits than the next four retailers combined Apple Sites Source: comscore Custom Solutions comscore, Inc. Proprietary. 11
12 Predictions for We will be Counting It All, and transacting seamlessly on integrated, comprehensive audience measurements Live TV, DVR, VOD, Digital, Connected TV wherever the consumer uses Video comscore, Inc. Proprietary. 12
13 Prime Time Broadcast TV Show: Millennials use More Time Shifted Viewing and Digital consumption Season Finale Incremental Reach from TSV and Digital +3% +24% +8% +43% +21% +35% Digital Only Live + 7 Live + SD Live All Persons P18-34 Source: comscore Xmedia, February 2015 comscore, Inc. Proprietary. 13
14 Prime Time Broadcast TV Show: Can you say Binge-Watch? In the month leading up to the Season Finale, over 26% of minutes were spent on Digital Incremental Minutes from TSV and Digital +113% +238% +36% +89% +77% +149% Digital Live + 7 Live + SD Live All Persons P18-34 Source: comscore Xmedia, February 2015 comscore, Inc. Proprietary. 14
15 Multi-Platform Consumers Use More TV Index of TV Minutes Per Viewer Average across 10 Broadcast and Cable Networks TV Only TV+1 TV+2 Source: comscore Xmedia Persons comscore, Inc. Proprietary. 15
16 Top Syndicated Daytime TV Show: Multi-Platform Audience Watches Far More of the Show on TV than the TV-Only Audience Average TV Minutes per Viewer +22% +35% TV Only TV AND Digital All Persons P18-34 Source: comscore Xmedia May 2015 Average TV Minutes per Viewer comscore, Inc. Proprietary. 16
17 Top Syndicated Daytime TV Show: Show Website and Online Video Extend Reach by 24% for Millenials % Reach by Platform 24% 7% 8% 2% 70% 89% Digital Only TV and Digital TV Only Source: comscore Xmedia May 2015 % Reach by Platform comscore, Inc. Proprietary. 17
18 5 PRINCIPLES OF COMSCORE TOTAL VIDEO 1 A SINGLE, Unduplicated Audience Metric 2 UNIFIED Demography Across Platforms 3 HOLISTIC Accounting of All Video Viewing Behavior 4 SCALABLE Measurement of Platforms & Audiences METRICS: Reach Frequency Impressions GRPs Minutes Average Audience 5 FLEXIBLE to Fit the Future of Advertising comscore, Inc. Proprietary. 18
19 Predictions for Advanced Targets will be ubiquitous in our transactional systems, providing choice for both the sellers and the buyers in how to execute the buys for the brands comscore, Inc. Proprietary. 19
20 What Does Programmatic mean to TV? More Automated More Optimized Audience Buying All or Some Inventory comscore, Inc. Proprietary. 20
21 It s More than Simply Computing an Index Large census-based sample sizes to reliably measure the right target Systems that surface the targets on a level playing field with age/gender demography Transaction-based comscore, Inc. Proprietary. 21
22 comscore, Inc. Proprietary. 22
23 comscore, Inc. Proprietary. 23
24 Predictions for Advertisers won t have to worry about non-viewable, non-human, invalid online and mobile ad impressions because excluding them will be automatic and simply the cost of doing business comscore, Inc. Proprietary. 24
25 Viewability is a hot topic in the industry comscore, Inc. Proprietary. 25
26 The 3MS standards for display, video and mobile Display: 50% of ad in view for at least 1 second Video: 50% of player in view for at least 2 consecutive seconds Mobile: Browser: Not yet specified In-App: 100% viewable comscore, Inc. Proprietary. 26
27 How is display ad viewability measured? To understand viewability, measurement providers need insight into: Screen size Location of the browser Location of the ad relative to the page User actions including tabbing, scrolling, minimizing comscore, Inc. Proprietary. 27
28 Measurement vendors can achieve upwards of 95% measurability for online display advertising Using the geometric and timing methods, comscore is able to directly measure 95% of impressions Our geometric measurement, which accounts for the majority of impressions, is MRC-accredited. The timing method is included in the in-progress renewal audit. *Our projection method has been reviewed by the MRC. **Does not include pixels or in-browser mobile impressions. comscore, Inc. Proprietary. 28
29 vce Benchmark: Overall average in-view rate is 46%, with variance seen across product categories % In-View: Overall* and by Select Advertiser / Product Category** Source: comscore vce Benchmarks, Q4 2015, U.S. *The Overall Norm comprises data from more than 200 billion impressions over the course of a 12-month rolling period. This includes campaigns that go beyond the select Advertiser / Product categories listed above to also include additional Advertiser / Product categories as well as studies run directly by publishers and ad networks. **Viewability benchmarks include display campaigns only; viewability is defined as 50% of the ad s pixels in-view for at least one second. ***The Health / Wellness category includes campaigns for brands, products and/or services in the following sectors: health associations, health insurance, hospitals, over-the-counter, pharmaceutical, public health and wellness. comscore, Inc. Proprietary. 29
30 Premium impressions those run directly via a publisher site tend to deliver stronger in-view rates than non-premium impressions % In-View*: Premium vs. Non-Premium** Source: comscore vce Benchmarks, Q2 2014, U.S. *Viewability benchmarks include display campaigns only; viewability is defined as 50% of the ad s pixels in-view for at least one second. **Premium and Non-Premium categories are derived from the comscore Dictionary classifications in MyMetrix. Premium is defined as impressions run directly on a Property, Media Title, Channel, Sub-Channel, Group or Sub-Group, as per the MyMetrix classifications. Non-Premium is defined as impressions run indirectly via an Exchange, Ad Networks, Ad Network Aggregate, Buy Side Ad Network, Demand Side Platform, and Sell Side Platform, as per the MyMetrix classifications. comscore, Inc. Proprietary. 30
31 Premium impressions those run directly via a publisher site tend to have less Invalid Traffic than non-premium impressions % Invalid Traffic: Premium vs. Non-Premium** Source: comscore vce Benchmarks, Q2 2014, U.S. 9.7% 9.2% 27.1% 90.3% 63.7% >25% 5-25% <5% Premium Non-Premium comscore, Inc. Proprietary. 31
32 Where video viewability is today The Guidance The Response The IAB released the standard 50% of player in view for at least 2 consecutive seconds and gave the green light for transacting on video viewability Many in the industry believe the standard is too limited, leading to inconsistency in the measurement due to different metrics, methodologies and roles of measurement providers comscore, Inc. Proprietary. 32
33 Where mobile viewability is today The Guidance According to the IAB, any ad served in a mobile app should be counted as 100% viewable. There is not yet a standard for mobile ads served in a browser The Response 100% viewable is not acceptable for in-app measurement. No consistency right now around measuring mobile in-browser viewability comscore, Inc. Proprietary. 33
34 Predictions for Digital commerce, and especially mobile m-commerce, will continue to change the way we shop, and will have a dramatic impact on how retailers think about advertising 3. Advanced targets will be ubiquitous in our transactional systems, providing choice for both the sellers and the buyers in how to execute the buys for the brands 2. We will be Counting It All, and transacting seamlessly on integrated, comprehensive audience measurements Live TV, DVR, VOD, Digital, Connected TV wherever the consumer uses Video 4. Advertisers won t have to worry about Non-viewable, Non-human, Invalid online and mobile impressions because excluding them will be automatic and simply the cost of doing business comscore, Inc. Proprietary. 34
35 Thank You For info about the proprietary technology used in comscore products, refer to
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