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Surviving the Upfronts
in a Cross-Media World:
An Actionable Guide for Success




                            JUDY BAHARY SVP, Marketing Solutions
                            STEPHANIE FLOSI Sr. Marketing Communications Analyst
Introduction
                             CALLING ALL ADVERTISERS, AGENCIES AND MEDIA BUYERS involved
                             in this year’s television upfronts. The critical upfront season is upon you, and
                             the pressure is on to allocate coveted advertising dollars to the most effective
                             combination of television ad spots. The upfronts take place every year, and
                             it represents a familiar process for most players in the industry. Television
                             networks reveal their future programming lineups and expected audiences; you
                             strategically allocate sums of money on behalf of clients and brands against
                             networks, programming and dayparts. The metrics and guarantees that drive
                             your decisions are based on audience delivery and are well-established.

                             But the TV advertising landscape as we         Now in its second year, the digital
                             know it is changing, driven by the migration   upfronts, commonly referred to as the
                             of consumer viewing habits to digital          “Newfronts,” are creating a splash as
                             platforms. The combination of innovative       they try to make the case for online
                             upstarts in this space such as Apple,          video in bringing ad dollars online.
                             Netflix and Hulu, and the rapid adoption of    Opening your door to digital allocation
                             smartphones, tablets and other connected       is probably uncharted territory for many
                             devices, has brought to fruition an evolved    of you, but it may be just what’s needed
                             consumer that values on-demand and             in order to ensure you’re not missing
                             on-the-go TV consumption. These tech-          a critical, tech-savvy segment of your
                             savvy consumers represent a rapidly            target audience. Whether you’re ready
                             growing segment of the population, who         to dedicate a significant portion of your
                             have converted some portion of their           budget to digital formats, or just a sliver,
                             viewing time to a digital screen. Remaining    this comScore guide can be leveraged to
                             are millions of consumers who still watch      help you effectively navigate this evolving
                             all of their content on a traditional TV,      landscape. From editing creative to media
FOR FURTHER INFORMATION,
                             but for how much longer? This complex          placement, these actionable insights
         PLEASE CONTACT:
                             marketplace has posed new challenges           can help you make smart decisions in
          Stephanie Flosi    for advertisers and agencies, whose            determining whether the time is right for
            comScore, Inc.   overarching goals remain unchanged:            you to go digital in this year’s upfronts.
         +1 312 777 8801     maximize persuasive effectiveness and
     press@comscore.com      reach, and optimize frequency to garner
                             the greatest ROI from their TV ad dollars.




                             Stay Connected


                                                    Follow @comscore

                                                                                                                           3
The Rise of Online Video
                   In the United States (U.S.), online video began gaining real traction and attention in
        The late   2006, growing by 73 percent from 71 million to 123 million monthly unique viewers in
majority online    one year. Using Geoffrey Moore’s “Crossing the Chasm” model of technology adoption,
                   this “early majority” group paved the path for others to follow in incorporating video into
video audience     their online experience. The “late majority” audience took hold around 2009 as another
    took hold in   group of newcomers entered the online video market, which grew 20 percent over the
 2009, growing     next year to reach 180 million viewers.
     20 percent
   to reach 180    Figure 1 Total Unique Video Viewers (MM)
                   Source: comScore Video Metrix, U.S., 2006-2011
million viewers.
                                                                           LATE
                                                                         MAJORITY
                                                                                                      180


                                                                                                      160

                         EARLY
                        MAJORITY                                                                      140


                                                                                                      120




                                                                                                            MILLIONS
                                                                                                      100


                                                                                                      80


                                                                                                      60


                                                                                                      40


                                                                                                      20


                                                                                                      0
                   JAN ‘06         JAN ‘07           JAN ‘08        JAN ‘09       JAN ‘10




                                                                                                                       4
To no surprise, YouTube is the clear leader in the online video market today, easily drawing
 YouTube is the     more than 140 million viewers each month. Other leading publishers of video content
  clear leader in   include Yahoo! (61 million viewers in March 2012), VEVO (51 million) and Facebook (45
                    million). Many of these properties fluctuate within the top 10 ranking from month to month,
the online video    but their audiences are consistently strong.
   market today,
  easily drawing    Figure 2 Top Online Video Content Properties Ranked by Unique Video Viewers for March 2012
                    Source: comScore Video Metrix, U.S., Mar-2012
  more than 140
 million viewers
    each month.        1                                   146M         6                                  44M

                       2                                    61M         7                                  43M

                       3                                    51M         8                                  41M

                       4                                    45M         9                                  32M

                       5                                    44M        10                                  31M




                                                                                                                   5
To get a true sense of how widespread online video content is in the U.S., we examined
       Nearly 100    its reach within the online population as well as among the total U.S. population, and
        percent of   segmented it by age group. Overall, more than 4 in 5 Internet users are consuming online
                     video content in a given month. The 18-24 age segment showed the highest penetration
     people ages     of its online population at 87 percent.
25-34 and 35-44
                     An interesting finding, shown below, is that for ages 25-34 and 35-44, there is virtually
   in the U.S. are
                     no difference between online video’s reach among the web population and the total U.S.
  Internet users.    population, which suggests that nearly 100 percent of people ages 25-34 and 35-44
                     in the U.S. are Internet users. This gap was also minimal for the 12-17 and 18-24 age
                     segments, making a strong case for the potential value of online video advertising for
                     marketers interested in reaching these audience segments.

                     Figure 3 Online Video’s Reach
                     Source: comScore Video Metrix, U.S., Mar-2012


                                     87%
                                                     84% 84%
                                                                     82% 81%   81%         81%         80%
                       79%
                                           75%
                             70%
                                                                                     63%




                                                                                                 44%




                                                                                                             25%




                      AGE 12-17 AGE 18-24 AGE 25-34 AGE 35-44 AGE 45-54 AGE 55-64                      AGE 65+

                                AMONG ONLINE POPULATION                   AMONG TOTAL U.S. POPULATION




                                                                                                                   6
While the monthly audience for online video content is steady at around 180 million
     30 percent    people, the degree to which users engage with online video has increased dramatically
more Americans     in the past year. In fact, 30 percent more Americans now watch online video content on
                   an average day than they did a year ago. The average user spends more than 21 hours
   watch online    per month (up 47 percent) watching more than 200 content videos (up 20 percent).
  video content    Americans’ growing interest in long-form video content is evident from the growth in the
 on an average     average time spent watching a video, which has jumped 23 percent in the last year to
  day than they    6.4 minutes.

 did a year ago.   Figure 4 Year Over Year Change in Engagement Levels With Online Video Content
                   Source: comScore Video Metrix, U.S., Mar-2012 vs. Mar-2011

                                                                                                      6.4
                                                             204
                                                                                  21.7
                                   105


                                                                                              5.2



                      81

                                                                          14.8




                                                171




                     AVERAGE DAILY             VIDEOS PER                HOURS PER           MINUTES PER
                   UNIQUE VIEWERS            VIEWER                    VIEWER              VIDEO
                   (MM)




                                                                                                              7
But despite the high reach and growing engagement for online video, there is a
  In March 2012,     surprisingly large disparity in the number of ads running within the format when
     98.5 percent    compared to TV. In March 2012, 98.5 percent of time spent watching online video
                     was spent with content, leaving ads as the remaining 1.5 percent. The average viewer
    of time spent    could watch more than an hour of online video content and see only one minute of ads.
 watching online     Compare this to TV, where content makes up approximately 75 percent of programming
video was spent      content, with the remaining 25 percent allotted for advertisements.
    with content,    Figure 5 Content and Ad Composition Across Media Types
  leaving ads as     Source: Online Video - comScore Video Metrix, U.S., Mar-2012 | TV - Media Dynamics Inc TV Dimensions, 2010
   the remaining
                                              ONLINE VIDEO
      1.5 percent.                            ADS, 1.5%




                                                                                                        TV ADS, 24.8%




                                     ONLINE VIDEO                                            TV CONTENT,
                                    CONTENT, 98.5%                                              75.2%




                     Long-form premium TV content in the online video space shows a slightly more robust
                     scenario when comparing content to ad minutes. With long-form online video viewing,
                     time spent watching ads represents approximately 8 percent of all minutes. But this still
                     lags significantly compared to TV ad loads.

                                                 ADS IN LONG-FORM ONLINE
                                                 VIDEO PROGRAMMING, 7.9%




                                                                                                        TV ADS, 24.8%




                                TV CONTENT IN LONG-                                          TV CONTENT,
                                 FORM ONLINE VIDEO                                              75.2%
                                PROGRAMMING 92.1%




                                                                                                                                  8
Still, there remains immense opportunity for online video advertising to increase its ad
The growth in       load. Ad spend with online video is not proportionate to the engagement levels or the
  online video      ad load expectations that viewers might have when compared to TV. The chart below
                    illustrates that the growth in online video viewing has far outpaced the growth in annual
  viewing has       video ad spend, which totaled $1.8 billion in 2011 (up 38 percent versus 2010).
 far outpaced
the growth in
 annual video       Figure 6 Long Term Trend for Annual Online Video Ad Spend vs. Videos Viewed
                    Source: Online Video Viewing – comScore Video Metrix, U.S., 2006-2011 | Online Video Ad Spend – IAB/PWC
    ad spend.       Internet Advertising Revenue Reports, 2001- 2011 | Online Video Ad Spend Forecast – eMarketer, Nov-2011



                                                     $6,000                                                       500,000
                 ONLINE VIDEO AD SPEND ($MILLIONS)




                                                                                                                            VIDEOS VIEWED (MILLIONS)
                                                     $5,000
                                                                                                                  400,000

                                                     $4,000
                                                                                                                  300,000
                                                     $3,000
                                                                                                                  200,000
                                                     $2,000

                                                                                                                  100,000
                                                     $1,000

                                                        $0                                                        0
                                                              2001   2003   2005   2007   2009    2011     2013

                                                                     ONLINE VIDEO AD SPEND PER YEAR (MM)
                                                                     VIDEOS PER YEAR (MM)




                                                                                                                                                       9
Digital Video Advertising Myths Put to the Test
                  There are many questions that arise as media buyers consider digital video formats. And
Ads that work     there may be some skepticism as to whether digital video is finally worthy of a greater
well in TV are    portion of marketers’ advertising budgets. For example, can online video advertising be as
                  effective as advertising on TV? Has the online video market matured enough? How safe
 also likely to   of an investment is it at this point? We’ve taken a quantitative approach to analyzing the
  work well in    conventional wisdom around digital video advertising to separate myth from reality in order
 digital video    to prepare you for smart decision-making in this year’s upfronts.
       format.    MYTH: VIDEO ADVERTISING IN SHORT-FORM ONLINE CONTENT IS NOT AS
                  EFFECTIVE AS TV
                  The first commonly held myth is that advertising in short-form online content is not as
                  effective as advertising on TV. This thinking may derive partly from advertisers’ comfort
                  level with the TV medium, and uncertainty about whether or not the smaller screen can
                  deliver the same impact. comScore wanted to understand the relative impact of the same
                  ads delivered both as pre-rolls in short-form online content and TV.

                  FACT: VIDEO ADS ARE EFFECTIVE WHETHER THEY APPEAR ONLINE OR IN
                  TV PROGRAMMING
                  comScore tested the myth’s validity using our Share of Choice™ metric, which gauges
                  consumer preference for a brand among its relevant competitive set following exposure
                  to an ad. Lifts in Share of Choice have been proven to strongly correlate with in-market
                  sales lifts, providing a strong indication of the campaign’s likely success. The analysis
                  was based on comparing the lift in Share of Choice for 30 different advertisements (15
                  brands) that were tested in both short-form video as pre-rolls and traditional TV formats.
                  The plots in the graph below represent the relative lifts for a single ad tested in both
                  formats.

                  The analysis determined that the correlation between the lift in Share of Choice following
                  exposure to pre-roll advertising in short-form online content and the lift in Share of Choice
                  following exposure to advertising on TV is 0.86. This strong correlation suggests that ads
                  that work well on TV also have a high likelihood of working well in digital video format.
                  It also means that the reverse is true. If the creative message is not strong enough on
                  the TV platform, it’s not likely to “work” online either. In other words, creative messages
                  perform similarly across these two platforms, and video advertising on digital platforms
                  can be just as effective as advertising on TV.




                                                                                                                  10
Figure 7 Regression Analysis on Lifts in Share of Choice for Pre-Rolls and Television Ads
        Digital ad        Source: comScore Internal Methodology Research, 2009
      formats are
    very effective

                      ON COMPUTER AS PRE-ROLL TO SHORT FORM VIDEO
         at driving
short-term sales,
 and are on a par
  with the impact
                               LIFT IN SHARE OF CHOICE*




     of television
 advertising over
     one full year.
                                                                                                                              r=0.86




                                                                                              LIFT IN SHARE OF CHOICE*
                                                                                    ON TELEVISION IN LONG FORM TV PROGRAMMING
                                                                                        *LIFT CALIBRATED TO TAKE INTO ACCOUNT SYSTEM DIFFERENCES


                          To further confirm the effectiveness of advertising in all online formats, we performed an
                          analysis that compared the lifts in CPG brand sales in retail stores following exposure
                          to TV ads and, separately, following exposure to online ads (including banner and rich
                          media in addition to video). For the television ad exposure measurement, we used IRI’s
                          BehaviorScan® results, which showed an 8-percent lift in sales due to exposure to TV
                          advertising over the course of one year. For the online ad exposure, we used comScore’s
                          Offline Sales Lift™ capability to measure sales lifts following online ad exposure over the
                          course of three months. We found that the short-term offline lift in CPG brand sales from
                          online advertising matches the longer-term impact of TV advertising (8 percent). These
                          results indicate that digital ad formats are very effective at driving short-term sales, and are
                          on a par with the impact of television advertising over one full year.


                          Figure 8 Lift in CPG Brand Sales in Retail Stores
                          Source: BehaviorScan – 1 year period, comScore – 3 months*
                                                                                                           *Assumes 40% HH Internet Reach Against Target




                                                                          +8%                                          +8%




                                                                    TV (BEHAVIORSCAN)                     INTERNET (COMSCORE)


                                                                                                                                                           11
MYTH: DIGITAL VIDEO ADS SHOULD BE USED ONLY AFTER OPTIMIZING
       Television      REACH AND FREQUENCY ON TV
     advertising       Our second myth is that digital video ads should only be used after reach and frequency
reaches a point        have been optimized through TV ads. To evaluate this thinking, below is a campaign case
 of diminishing        example illustrating the classic principle of diminishing returns.

 returns, where        The chart shows that television advertising reaches a point of diminishing returns, where it
     it becomes        becomes more and more expensive to build incremental reach. This is true for total reach
                       and effective reach (which is defined here as 4+ exposures). A brand trying to reach its
more and more          target audience through TV alone will eventually hit this plateau, where investing more
       expensive       dollars mainly increases frequency of exposure rather than builds incremental reach.
         to build
    incremental
           reach.      Figure 9 Total Reach and Effective Reach for a TV Campaign as a Function of Cost
                       Source: comScore Campaign Case Example


                                        100
                                                                                                               87.9
                                        90                                             85.1
                                                   TOTAL REACH
                                        80
                    PERCENT REACH (%)




                                        70                                                                     74.1
                                                                                        67.8
                                        60
                                        50
                                                                 EFFECTIVE REACH
                                        40
                                        30
                                        20
                                         10
                                         0
                                              0   2,500    5,000         7,500        10,000        12,500    15,000
                                                                       COST ($000)




                                                                                                                      12
FACT #1: ALLOCATE BUDGET TO TV AND ONLINE VIDEO TO BUILD REACH
      The use of     AND EFFECTIVE REACH
online video can     In a simulation conducted using comScore’s cross-media databases, which contain media
 effectively build   usage from multiple platforms for the same households, we showed that the use of online
   reach without     video can build reach and effective reach when advertising dollars are invested in the TV
                     and digital platforms. In the below case example, we see that continuing to allocate the
       increasing    bulk (i.e., 90 percent) of the advertising to budget to TV and allocating a portion (i.e. 10
   overall spend.    percent) to a digital component increases the campaign’s reach by 5 percentage points
                     over what could be achieved without the allocation to digital in the media plan. Effective
                     reach is increased by a whopping 16 percentage points. Importantly, this was achieved by
                     allocating dollars across TV and digital platforms.

                     Figure 10 Impact of Budget Allocation for TV + Non-Digital vs. TV + Digital
                     Source: comScore Case Example*
                                                              *TV viewing geographic coverage includes metropolitan areas in 22 states.

                       Media Plan                           GRPs                Cost            Total Reach        Effective Reach
                       TV + Non-Digital Media               1,000             $10,000              85.1%                67.8%
                       TV + Digital Media
                            TV                               900               $9,000              83.7%                65.8%
                            Digital                          500               $1,000              63.8%                44.0%
                            TV+Digital                      1,400             $10,000              90.2%                83.7%
                        TV + Non-Digital vs.                 400                 $0                 5.1%                15.9%
                        TV + Digital


                     FACT #2: ADDING DIGITAL TO A TV PLAN INCREASES CAMPAIGN IMPACT
                     So what is the impact when digital is added to a TV plan? comScore measured the
                     consumer response (in this case, a visit to the advertised brand’s website) following
                     exposure to ads on TV only and on both the TV and digital platforms, and indexed the
                     results to TV. We investigated exposures that occurred within three days prior to the
                     website visit. By adding a digital exposure to a TV exposure, we found that there was
                     an increase in persuasion. Consumers who were exposed to one ad on TV and one
                     ad online were 28 percent more likely to visit the brand’s website than those exposed
                     to one ad on TV alone. In fact, the impact of two exposures – one on TV and one in
                     digital – was almost as high as the impact of two exposures, both on the TV platform.
                     This reinforces the wisdom of overlaying a digital plan on a TV campaign to boost reach
                     without sacrificing persuasion -- especially when one considers that digital is generally
                     less costly than TV.

                     Figure 11 Index of Behavior Probability with 3-Day Exposure Window
                     Source: comScore Multi-Screen Measurement*, 2011

                                                              *TV viewing geographic coverage includes metropolitan areas in 22 states.

                                                                                                  128
                                               100




                                            TV ONLY                                     TV AND INTERNET


                                                                                                                                          13
Actionable Insights for the Upfronts
                   Now that you’re aware of some key facts about online video and cross-media advertising,
     TV ads are    let’s take a look at some of the most appropriate uses of digital campaigns. For example,
delivered more     how can online advertising be used to reach your target audience? What do you need to
                   consider when editing a TV commercial for digital? The following tips will help.
    broadly, but
     online can    While it may be true that the use of online and cross-media campaigns require an
                   added level of planning sophistication compared to TV only, there are some important
    be targeted
                   benefits. First, let’s investigate the ability of online campaigns to reach your target
      based on     demographic segments.
several factors,
                   DIGITAL AND CROSS-MEDIA CAMPAIGNS RESULT IN IMPROVED TARGETING
  meaning less
                   To better understand the precision of cross-media campaign targeting, we aggregated
    waste from     the delivery of TV and online ad impressions across several campaigns and segmented
   impressions     them by age group. The results showed that advertisers can use online to more efficiently
      delivered    reach their desired demographic target. For the campaigns in the study, indices were
     outside of    created by comparing the percent of impressions delivered to the demographic target
                   to the percent that demographic target comprises in the population. (For example, if 10
         target.   percent of impressions are delivered to a demographic target that comprises 10 percent
                   of the population, the index would be 100.) Persons 12-34 and 18-34 were twice as
                   likely to have received an online impression compared to other demographic segments
                   that received online impressions. These demographic segments received TV impressions
                   in proportion to their population. To the extent that the campaigns in this study targeted
                   younger demographic segments, online advertising was effective.

                   This data demonstrates digital’s unique ability to reach target audiences online, whether
                   behaviorally or demographically targeted. TV ads are delivered more broadly, but online
                   can be targeted based on several factors, meaning less waste from impressions delivered
                   outside of target.

                   Figure 12 Index of Impressions Delivered Via TV and Online
                   Source: comScore Multi-Screen Measurement*, 2011
                                                           *TV viewing geographic coverage includes metropolitan areas in 22 states.

                                                  206                   211




                                                                                                  136
                                         121
                     100     100                             100                       102                       99

                                                                                                                            65




                   ALL PERSONS             P 12-34              P 18-34                  P 18-49                    P 50+

                                           TV IMPRESSIONS             ONLINE IMPRESSIONS




                                                                                                                                       14
Brands may also be concerned about the frequency of exposures for cross-media
For Multi-Screen      campaigns, unsure of whether or not the mix of offline and online exposures can deliver
      consumers,      sufficient campaign frequency to all of their target consumers. The question remains:
                      are all consumers receiving sufficient frequency? To investigate this, we aggregated the
         exposure     results of several campaigns to derive the chart below. This frequency distribution shows
  frequency was       that Multi-Screen consumers are exposed with approximately the same frequency overall,
        about half    with marginally higher frequency among Multi-Screen consumers for persons 18-34 and
     from TV and      persons 18-49. TV-Only consumers are obviously getting their exposure frequency from
                      TV. Where are Multi-Screen consumers getting their frequency? Exposure frequency for
    half from the     Multi-Screen consumers comes from both TV and Internet. For the campaigns in this
          Internet.   study, exposure frequency for Multi-Screen consumers was about half from TV and half
                      from the Internet.



                      Figure 13 Frequency of Exposure to TV-Only vs. Multi-Screen Consumers
                      Source: comScore Multi-Screen Measurement*, 2011
                                                              *TV viewing geographic coverage includes metropolitan areas in 22 states.

                                                                           5.0
                                                                                                     4.9
                                            4.8
                                                     4.6
                        4.5
                                 4.3                             4.3                      4.3                       4.3




                                                                                                                               3.4




                      ALL PERSONS             P 12-34              P 18-34                  P 18-49                    P 50+

                                       TV-ONLY CONSUMERS                 MULTI-SCREEN CONSUMERS




                                                                                                                                          15
DIGITAL ADVERTISING HELPS ENSURE YOU’RE NOT MISSING A KEY
   Approximately    SEGMENT OF YOUR AUDIENCE
    20 percent of   As more of a TV network’s audience moves online, it will become more difficult to reach
      a major TV    them with the desired frequency via traditional television only. The case example below
network’s digital   illustrates how approximately 20 percent of a major TV network’s digital audience is now
                    viewing content exclusively on the web, which means that an important part of this media
audience is now     company’s overall audience can only be reached online. Since this means that the target
 viewing content    audience for many brands has moved partly online, it’s important for the advertising
   exclusively on   to follow.
        the web.

                    Figure 14 Case Example: Major TV Network’s Web Audience Composition
                    Source: comScore Multi-Screen Measurement*, 2011
                              *TV viewing data is sourced from a major communication company and covers the metropolitan areas in 22 states.



                            19%
                            22%                            22%                             19%                            17%




                            81%
                            78%                            78%                             81%                            83%




                       ALL PERSONS                       P 12-34                        P 18-49                          P 50+

                                           % WEB ONLY                % WEB THAT ALSO VIEWS ON TV




                                                                                                                                               16
DIGITAL ADVERTISING IS AN EFFECTIVE WAY TO REACH
   The Internet   AND PERSUADE MILLENNIALS
is used by the    As you consider moving dollars to digital, it’s important to bear in mind the age of your
  vast majority   target audience. If it happens to be the Millennial generation (currently between ages
 of Millennials   18-34), you’re in luck. Millennials are the next up-and-coming generation with rapidly
                  increasing spending power, and they have already had a powerful influence on the
   ages 18-34.    adoption of new technologies.

                  The Internet provides a compelling way for advertising to reach younger audiences,
                  whose media consumption patterns are changing to encompass a greater use of
                  digital. The chart below shows that the Internet is used by the vast majority of
                  Millennials ages 18-34.



                  Figure 15 Percent of Consumers Using the Internet by Age
                  Source: comScore Millennials Research, 2011


                               93%
                                                                  88%




                                                                                              42%




                           AGE 18-34                            AGE 35-54                  AGE 55+




                                                                                                              17
For many years, comScore has been measuring the effectiveness of advertising in
  Millennials are    impacting brand preference, and we have consistently seen that TV advertising is more
    more difficult   effective at changing behavior among older demographic segments compared to younger
                     demographic segments. The results of our most recent study conducted in 2011 in the
     to persuade     chart below clearly illustrate this point.
    via television
      advertising
 when compared       Figure 16 Average Lift in Share of Choice Following Exposure to TV Ads
to older viewers.    Source: comScore Millennials Research, 2011



                                                                                                   6.6
                                                                                6.4




                                                         5.3


                              4.6




                              MILLENNIALS            GENERATION X         BABY BOOMERS        SENIORS


                     The 2011 study results shown above display a familiar stair-step pattern also seen in
                     previous generational studies, with average TV ad effectiveness increasing with age.
                     Baby Boomers and Seniors are less difficult to persuade via television advertising when
                     compared to Millennials (the youngest generation), with an average lift in Share of Choice
                     that is significantly higher than for Millennials.




                                                                                                                  18
The same generational groups were also analyzed for digital ad effectiveness. The results
      It may be     suggest that digital advertising performs better in relative terms than does television
    Millennials’    advertising among Millennials. While Millennials do show the lowest average lift in Share
                    of Choice from digital ads among the generations, the difference is smaller than seen in
  comfort with      the case of television. It may be Millennials’ comfort with technology and all things digital
    technology      that makes them relatively more responsive to digital advertising versus television when
 and all things     comparing Millennials to Generation X, Baby Boomers and Seniors.
     digital that
  makes them        Figure 17 Average Lift in Share of Choice Following Exposure to Digital Ads
relatively more     Source: comScore Millennials Research, 2011

    responsive                                                                   6.8
       to digital                                       6.4                                          6.4
    advertising              6.0
         versus
     television.




                             MILLENNIALS            GENERATION X           BABY BOOMERS           SENIORS




                                                                                                                    19
EDIT TV ADS DOWN TO 15 SECONDS TO OPTIMIZE FOR DIGITAL PLATFORMS
Realistically, most ad budgets won’t allow for completely new commercials to be
developed for digital, and it turns out that it’s really not necessary. There are a few steps
you can take to tweak an ad made for television to optimize it for digital.

The key strategy we recommend is to employ shorter-form ads, which we define as
15 seconds or less. With the speed at which users are accustomed to navigating the
Web, they are likely to resist watching a full 30-second ad. But reducing that spot to 15
seconds offers a happy medium with which consumers are more comfortable. Here’s how
to effectively cut a 30-60 second TV ad spot down to 15 seconds:




     1
                  Reduce communication to a single idea. Most TV ad spots
                  are long enough to effectively communicate several key
                  messages. But with 15-second ads, it’s better to strongly
                  convey a single message for the entire duration.




     2
                  Use images and pictures instead of words. Leveraging the
                  lean-forward environment of digital screens will more than
                  compensate for the shortened air time.




     3
                  Include 5 seconds of “product shots”. These shots are
                  really critical in making the most of the shortened duration.
                  It’s important to get to the point and show how the product
                  is used or what it looks like.




     4            Avoid “storyline” format. This is very difficult to do well in
                  less than 60 seconds, much less 15.




     5
                  Cut the correct content. If your ad is still too long, aim
                  to cut scenes with little branding content, superfluous
                  messaging or low interest.




                                                                                                20
Concluding Thoughts
As we have shown, adding a digital video component to a brand’s TV media plan offers
a number of compelling advantages:




    1           It can increase the effective reach of the campaign in a very
                efficient manner.




    2
                It delivers increased reach and frequency, especially among
                the advertiser’s target audience who are extending their TV
                consumption to include online video.




    3           Digital is more effective in changing brand preferences
                among Millennials.




    4           Ads can be delivered in 15-second commercials in either
                long-form or short-form video.




We realize that the dynamics of the emerging digital and video landscapes may seem
complex and overwhelming. And the pace at which things are changing in this multi-
platform world can make smart decision-making seem daunting. Television is definitely
not going away, and will remain a centerpiece of the media mix for many years to come.
But clearly what has happened, through the development of new digital technologies and
platforms, is that TV now lives and breathes in a multi-screen environment. Cross-Media
consumers represent an emerging segment of the marketplace that must be marketed to
in new and creative ways.




                                                                                          21
About comScore
                             comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world
                             and preferred source of digital business analytics. comScore helps its clients better
                             understand, leverage and profit from the rapidly evolving digital marketing landscape
                             by providing data, analytics and on-demand software solutions for the measurement of
                             online ads and audiences, media planning, website analytics, advertising effectiveness,
                             copy-testing, social media, search, video, mobile, cross-media, e-commerce, and a
                             broad variety of emerging forms of digital consumer behavior.

                             comScore services, which now include the product suites of recent acquisitions
                             AdXpose, Nedstat, Nexius XPLORE, ARSGroup and Certifica, are used by more
                             than 1,800 clients around the world, including global leaders such as AOL, Baidu,
                             BBC, Best Buy, Carat, Deutsche Bank, ESPN, France Telecom, Financial Times, Fox,
                             Microsoft, MediaCorp, Nestle, Starcom, Terra Networks, Universal McCann, Verizon
                             Services Group, ViaMichelin and Yahoo!.

                             For more information, please visit www.comscore.com




FOR FURTHER INFORMATION,
         PLEASE CONTACT:

          Stephanie Flosi    Stay Connected
            comScore, Inc.
         +1 312 777 8801
     press@comscore.com
                                                   Follow @comscore




                                                                                                                       22
Maximizing Your Upfronts Success in a Cross-Media World
Maximizing Your Upfronts Success in a Cross-Media World

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Maximizing Your Upfronts Success in a Cross-Media World

  • 1. Surviving the Upfronts in a Cross-Media World: An Actionable Guide for Success JUDY BAHARY SVP, Marketing Solutions STEPHANIE FLOSI Sr. Marketing Communications Analyst
  • 2.
  • 3. Introduction CALLING ALL ADVERTISERS, AGENCIES AND MEDIA BUYERS involved in this year’s television upfronts. The critical upfront season is upon you, and the pressure is on to allocate coveted advertising dollars to the most effective combination of television ad spots. The upfronts take place every year, and it represents a familiar process for most players in the industry. Television networks reveal their future programming lineups and expected audiences; you strategically allocate sums of money on behalf of clients and brands against networks, programming and dayparts. The metrics and guarantees that drive your decisions are based on audience delivery and are well-established. But the TV advertising landscape as we Now in its second year, the digital know it is changing, driven by the migration upfronts, commonly referred to as the of consumer viewing habits to digital “Newfronts,” are creating a splash as platforms. The combination of innovative they try to make the case for online upstarts in this space such as Apple, video in bringing ad dollars online. Netflix and Hulu, and the rapid adoption of Opening your door to digital allocation smartphones, tablets and other connected is probably uncharted territory for many devices, has brought to fruition an evolved of you, but it may be just what’s needed consumer that values on-demand and in order to ensure you’re not missing on-the-go TV consumption. These tech- a critical, tech-savvy segment of your savvy consumers represent a rapidly target audience. Whether you’re ready growing segment of the population, who to dedicate a significant portion of your have converted some portion of their budget to digital formats, or just a sliver, viewing time to a digital screen. Remaining this comScore guide can be leveraged to are millions of consumers who still watch help you effectively navigate this evolving all of their content on a traditional TV, landscape. From editing creative to media FOR FURTHER INFORMATION, but for how much longer? This complex placement, these actionable insights PLEASE CONTACT: marketplace has posed new challenges can help you make smart decisions in Stephanie Flosi for advertisers and agencies, whose determining whether the time is right for comScore, Inc. overarching goals remain unchanged: you to go digital in this year’s upfronts. +1 312 777 8801 maximize persuasive effectiveness and press@comscore.com reach, and optimize frequency to garner the greatest ROI from their TV ad dollars. Stay Connected Follow @comscore 3
  • 4. The Rise of Online Video In the United States (U.S.), online video began gaining real traction and attention in The late 2006, growing by 73 percent from 71 million to 123 million monthly unique viewers in majority online one year. Using Geoffrey Moore’s “Crossing the Chasm” model of technology adoption, this “early majority” group paved the path for others to follow in incorporating video into video audience their online experience. The “late majority” audience took hold around 2009 as another took hold in group of newcomers entered the online video market, which grew 20 percent over the 2009, growing next year to reach 180 million viewers. 20 percent to reach 180 Figure 1 Total Unique Video Viewers (MM) Source: comScore Video Metrix, U.S., 2006-2011 million viewers. LATE MAJORITY 180 160 EARLY MAJORITY 140 120 MILLIONS 100 80 60 40 20 0 JAN ‘06 JAN ‘07 JAN ‘08 JAN ‘09 JAN ‘10 4
  • 5. To no surprise, YouTube is the clear leader in the online video market today, easily drawing YouTube is the more than 140 million viewers each month. Other leading publishers of video content clear leader in include Yahoo! (61 million viewers in March 2012), VEVO (51 million) and Facebook (45 million). Many of these properties fluctuate within the top 10 ranking from month to month, the online video but their audiences are consistently strong. market today, easily drawing Figure 2 Top Online Video Content Properties Ranked by Unique Video Viewers for March 2012 Source: comScore Video Metrix, U.S., Mar-2012 more than 140 million viewers each month. 1 146M 6 44M 2 61M 7 43M 3 51M 8 41M 4 45M 9 32M 5 44M 10 31M 5
  • 6. To get a true sense of how widespread online video content is in the U.S., we examined Nearly 100 its reach within the online population as well as among the total U.S. population, and percent of segmented it by age group. Overall, more than 4 in 5 Internet users are consuming online video content in a given month. The 18-24 age segment showed the highest penetration people ages of its online population at 87 percent. 25-34 and 35-44 An interesting finding, shown below, is that for ages 25-34 and 35-44, there is virtually in the U.S. are no difference between online video’s reach among the web population and the total U.S. Internet users. population, which suggests that nearly 100 percent of people ages 25-34 and 35-44 in the U.S. are Internet users. This gap was also minimal for the 12-17 and 18-24 age segments, making a strong case for the potential value of online video advertising for marketers interested in reaching these audience segments. Figure 3 Online Video’s Reach Source: comScore Video Metrix, U.S., Mar-2012 87% 84% 84% 82% 81% 81% 81% 80% 79% 75% 70% 63% 44% 25% AGE 12-17 AGE 18-24 AGE 25-34 AGE 35-44 AGE 45-54 AGE 55-64 AGE 65+ AMONG ONLINE POPULATION AMONG TOTAL U.S. POPULATION 6
  • 7. While the monthly audience for online video content is steady at around 180 million 30 percent people, the degree to which users engage with online video has increased dramatically more Americans in the past year. In fact, 30 percent more Americans now watch online video content on an average day than they did a year ago. The average user spends more than 21 hours watch online per month (up 47 percent) watching more than 200 content videos (up 20 percent). video content Americans’ growing interest in long-form video content is evident from the growth in the on an average average time spent watching a video, which has jumped 23 percent in the last year to day than they 6.4 minutes. did a year ago. Figure 4 Year Over Year Change in Engagement Levels With Online Video Content Source: comScore Video Metrix, U.S., Mar-2012 vs. Mar-2011 6.4 204 21.7 105 5.2 81 14.8 171 AVERAGE DAILY VIDEOS PER HOURS PER MINUTES PER UNIQUE VIEWERS VIEWER VIEWER VIDEO (MM) 7
  • 8. But despite the high reach and growing engagement for online video, there is a In March 2012, surprisingly large disparity in the number of ads running within the format when 98.5 percent compared to TV. In March 2012, 98.5 percent of time spent watching online video was spent with content, leaving ads as the remaining 1.5 percent. The average viewer of time spent could watch more than an hour of online video content and see only one minute of ads. watching online Compare this to TV, where content makes up approximately 75 percent of programming video was spent content, with the remaining 25 percent allotted for advertisements. with content, Figure 5 Content and Ad Composition Across Media Types leaving ads as Source: Online Video - comScore Video Metrix, U.S., Mar-2012 | TV - Media Dynamics Inc TV Dimensions, 2010 the remaining ONLINE VIDEO 1.5 percent. ADS, 1.5% TV ADS, 24.8% ONLINE VIDEO TV CONTENT, CONTENT, 98.5% 75.2% Long-form premium TV content in the online video space shows a slightly more robust scenario when comparing content to ad minutes. With long-form online video viewing, time spent watching ads represents approximately 8 percent of all minutes. But this still lags significantly compared to TV ad loads. ADS IN LONG-FORM ONLINE VIDEO PROGRAMMING, 7.9% TV ADS, 24.8% TV CONTENT IN LONG- TV CONTENT, FORM ONLINE VIDEO 75.2% PROGRAMMING 92.1% 8
  • 9. Still, there remains immense opportunity for online video advertising to increase its ad The growth in load. Ad spend with online video is not proportionate to the engagement levels or the online video ad load expectations that viewers might have when compared to TV. The chart below illustrates that the growth in online video viewing has far outpaced the growth in annual viewing has video ad spend, which totaled $1.8 billion in 2011 (up 38 percent versus 2010). far outpaced the growth in annual video Figure 6 Long Term Trend for Annual Online Video Ad Spend vs. Videos Viewed Source: Online Video Viewing – comScore Video Metrix, U.S., 2006-2011 | Online Video Ad Spend – IAB/PWC ad spend. Internet Advertising Revenue Reports, 2001- 2011 | Online Video Ad Spend Forecast – eMarketer, Nov-2011 $6,000 500,000 ONLINE VIDEO AD SPEND ($MILLIONS) VIDEOS VIEWED (MILLIONS) $5,000 400,000 $4,000 300,000 $3,000 200,000 $2,000 100,000 $1,000 $0 0 2001 2003 2005 2007 2009 2011 2013 ONLINE VIDEO AD SPEND PER YEAR (MM) VIDEOS PER YEAR (MM) 9
  • 10. Digital Video Advertising Myths Put to the Test There are many questions that arise as media buyers consider digital video formats. And Ads that work there may be some skepticism as to whether digital video is finally worthy of a greater well in TV are portion of marketers’ advertising budgets. For example, can online video advertising be as effective as advertising on TV? Has the online video market matured enough? How safe also likely to of an investment is it at this point? We’ve taken a quantitative approach to analyzing the work well in conventional wisdom around digital video advertising to separate myth from reality in order digital video to prepare you for smart decision-making in this year’s upfronts. format. MYTH: VIDEO ADVERTISING IN SHORT-FORM ONLINE CONTENT IS NOT AS EFFECTIVE AS TV The first commonly held myth is that advertising in short-form online content is not as effective as advertising on TV. This thinking may derive partly from advertisers’ comfort level with the TV medium, and uncertainty about whether or not the smaller screen can deliver the same impact. comScore wanted to understand the relative impact of the same ads delivered both as pre-rolls in short-form online content and TV. FACT: VIDEO ADS ARE EFFECTIVE WHETHER THEY APPEAR ONLINE OR IN TV PROGRAMMING comScore tested the myth’s validity using our Share of Choice™ metric, which gauges consumer preference for a brand among its relevant competitive set following exposure to an ad. Lifts in Share of Choice have been proven to strongly correlate with in-market sales lifts, providing a strong indication of the campaign’s likely success. The analysis was based on comparing the lift in Share of Choice for 30 different advertisements (15 brands) that were tested in both short-form video as pre-rolls and traditional TV formats. The plots in the graph below represent the relative lifts for a single ad tested in both formats. The analysis determined that the correlation between the lift in Share of Choice following exposure to pre-roll advertising in short-form online content and the lift in Share of Choice following exposure to advertising on TV is 0.86. This strong correlation suggests that ads that work well on TV also have a high likelihood of working well in digital video format. It also means that the reverse is true. If the creative message is not strong enough on the TV platform, it’s not likely to “work” online either. In other words, creative messages perform similarly across these two platforms, and video advertising on digital platforms can be just as effective as advertising on TV. 10
  • 11. Figure 7 Regression Analysis on Lifts in Share of Choice for Pre-Rolls and Television Ads Digital ad Source: comScore Internal Methodology Research, 2009 formats are very effective ON COMPUTER AS PRE-ROLL TO SHORT FORM VIDEO at driving short-term sales, and are on a par with the impact LIFT IN SHARE OF CHOICE* of television advertising over one full year. r=0.86 LIFT IN SHARE OF CHOICE* ON TELEVISION IN LONG FORM TV PROGRAMMING *LIFT CALIBRATED TO TAKE INTO ACCOUNT SYSTEM DIFFERENCES To further confirm the effectiveness of advertising in all online formats, we performed an analysis that compared the lifts in CPG brand sales in retail stores following exposure to TV ads and, separately, following exposure to online ads (including banner and rich media in addition to video). For the television ad exposure measurement, we used IRI’s BehaviorScan® results, which showed an 8-percent lift in sales due to exposure to TV advertising over the course of one year. For the online ad exposure, we used comScore’s Offline Sales Lift™ capability to measure sales lifts following online ad exposure over the course of three months. We found that the short-term offline lift in CPG brand sales from online advertising matches the longer-term impact of TV advertising (8 percent). These results indicate that digital ad formats are very effective at driving short-term sales, and are on a par with the impact of television advertising over one full year. Figure 8 Lift in CPG Brand Sales in Retail Stores Source: BehaviorScan – 1 year period, comScore – 3 months* *Assumes 40% HH Internet Reach Against Target +8% +8% TV (BEHAVIORSCAN) INTERNET (COMSCORE) 11
  • 12. MYTH: DIGITAL VIDEO ADS SHOULD BE USED ONLY AFTER OPTIMIZING Television REACH AND FREQUENCY ON TV advertising Our second myth is that digital video ads should only be used after reach and frequency reaches a point have been optimized through TV ads. To evaluate this thinking, below is a campaign case of diminishing example illustrating the classic principle of diminishing returns. returns, where The chart shows that television advertising reaches a point of diminishing returns, where it it becomes becomes more and more expensive to build incremental reach. This is true for total reach and effective reach (which is defined here as 4+ exposures). A brand trying to reach its more and more target audience through TV alone will eventually hit this plateau, where investing more expensive dollars mainly increases frequency of exposure rather than builds incremental reach. to build incremental reach. Figure 9 Total Reach and Effective Reach for a TV Campaign as a Function of Cost Source: comScore Campaign Case Example 100 87.9 90 85.1 TOTAL REACH 80 PERCENT REACH (%) 70 74.1 67.8 60 50 EFFECTIVE REACH 40 30 20 10 0 0 2,500 5,000 7,500 10,000 12,500 15,000 COST ($000) 12
  • 13. FACT #1: ALLOCATE BUDGET TO TV AND ONLINE VIDEO TO BUILD REACH The use of AND EFFECTIVE REACH online video can In a simulation conducted using comScore’s cross-media databases, which contain media effectively build usage from multiple platforms for the same households, we showed that the use of online reach without video can build reach and effective reach when advertising dollars are invested in the TV and digital platforms. In the below case example, we see that continuing to allocate the increasing bulk (i.e., 90 percent) of the advertising to budget to TV and allocating a portion (i.e. 10 overall spend. percent) to a digital component increases the campaign’s reach by 5 percentage points over what could be achieved without the allocation to digital in the media plan. Effective reach is increased by a whopping 16 percentage points. Importantly, this was achieved by allocating dollars across TV and digital platforms. Figure 10 Impact of Budget Allocation for TV + Non-Digital vs. TV + Digital Source: comScore Case Example* *TV viewing geographic coverage includes metropolitan areas in 22 states. Media Plan GRPs Cost Total Reach Effective Reach TV + Non-Digital Media 1,000 $10,000 85.1% 67.8% TV + Digital Media TV 900 $9,000 83.7% 65.8% Digital 500 $1,000 63.8% 44.0% TV+Digital 1,400 $10,000 90.2% 83.7% TV + Non-Digital vs. 400 $0 5.1% 15.9% TV + Digital FACT #2: ADDING DIGITAL TO A TV PLAN INCREASES CAMPAIGN IMPACT So what is the impact when digital is added to a TV plan? comScore measured the consumer response (in this case, a visit to the advertised brand’s website) following exposure to ads on TV only and on both the TV and digital platforms, and indexed the results to TV. We investigated exposures that occurred within three days prior to the website visit. By adding a digital exposure to a TV exposure, we found that there was an increase in persuasion. Consumers who were exposed to one ad on TV and one ad online were 28 percent more likely to visit the brand’s website than those exposed to one ad on TV alone. In fact, the impact of two exposures – one on TV and one in digital – was almost as high as the impact of two exposures, both on the TV platform. This reinforces the wisdom of overlaying a digital plan on a TV campaign to boost reach without sacrificing persuasion -- especially when one considers that digital is generally less costly than TV. Figure 11 Index of Behavior Probability with 3-Day Exposure Window Source: comScore Multi-Screen Measurement*, 2011 *TV viewing geographic coverage includes metropolitan areas in 22 states. 128 100 TV ONLY TV AND INTERNET 13
  • 14. Actionable Insights for the Upfronts Now that you’re aware of some key facts about online video and cross-media advertising, TV ads are let’s take a look at some of the most appropriate uses of digital campaigns. For example, delivered more how can online advertising be used to reach your target audience? What do you need to consider when editing a TV commercial for digital? The following tips will help. broadly, but online can While it may be true that the use of online and cross-media campaigns require an added level of planning sophistication compared to TV only, there are some important be targeted benefits. First, let’s investigate the ability of online campaigns to reach your target based on demographic segments. several factors, DIGITAL AND CROSS-MEDIA CAMPAIGNS RESULT IN IMPROVED TARGETING meaning less To better understand the precision of cross-media campaign targeting, we aggregated waste from the delivery of TV and online ad impressions across several campaigns and segmented impressions them by age group. The results showed that advertisers can use online to more efficiently delivered reach their desired demographic target. For the campaigns in the study, indices were outside of created by comparing the percent of impressions delivered to the demographic target to the percent that demographic target comprises in the population. (For example, if 10 target. percent of impressions are delivered to a demographic target that comprises 10 percent of the population, the index would be 100.) Persons 12-34 and 18-34 were twice as likely to have received an online impression compared to other demographic segments that received online impressions. These demographic segments received TV impressions in proportion to their population. To the extent that the campaigns in this study targeted younger demographic segments, online advertising was effective. This data demonstrates digital’s unique ability to reach target audiences online, whether behaviorally or demographically targeted. TV ads are delivered more broadly, but online can be targeted based on several factors, meaning less waste from impressions delivered outside of target. Figure 12 Index of Impressions Delivered Via TV and Online Source: comScore Multi-Screen Measurement*, 2011 *TV viewing geographic coverage includes metropolitan areas in 22 states. 206 211 136 121 100 100 100 102 99 65 ALL PERSONS P 12-34 P 18-34 P 18-49 P 50+ TV IMPRESSIONS ONLINE IMPRESSIONS 14
  • 15. Brands may also be concerned about the frequency of exposures for cross-media For Multi-Screen campaigns, unsure of whether or not the mix of offline and online exposures can deliver consumers, sufficient campaign frequency to all of their target consumers. The question remains: are all consumers receiving sufficient frequency? To investigate this, we aggregated the exposure results of several campaigns to derive the chart below. This frequency distribution shows frequency was that Multi-Screen consumers are exposed with approximately the same frequency overall, about half with marginally higher frequency among Multi-Screen consumers for persons 18-34 and from TV and persons 18-49. TV-Only consumers are obviously getting their exposure frequency from TV. Where are Multi-Screen consumers getting their frequency? Exposure frequency for half from the Multi-Screen consumers comes from both TV and Internet. For the campaigns in this Internet. study, exposure frequency for Multi-Screen consumers was about half from TV and half from the Internet. Figure 13 Frequency of Exposure to TV-Only vs. Multi-Screen Consumers Source: comScore Multi-Screen Measurement*, 2011 *TV viewing geographic coverage includes metropolitan areas in 22 states. 5.0 4.9 4.8 4.6 4.5 4.3 4.3 4.3 4.3 3.4 ALL PERSONS P 12-34 P 18-34 P 18-49 P 50+ TV-ONLY CONSUMERS MULTI-SCREEN CONSUMERS 15
  • 16. DIGITAL ADVERTISING HELPS ENSURE YOU’RE NOT MISSING A KEY Approximately SEGMENT OF YOUR AUDIENCE 20 percent of As more of a TV network’s audience moves online, it will become more difficult to reach a major TV them with the desired frequency via traditional television only. The case example below network’s digital illustrates how approximately 20 percent of a major TV network’s digital audience is now viewing content exclusively on the web, which means that an important part of this media audience is now company’s overall audience can only be reached online. Since this means that the target viewing content audience for many brands has moved partly online, it’s important for the advertising exclusively on to follow. the web. Figure 14 Case Example: Major TV Network’s Web Audience Composition Source: comScore Multi-Screen Measurement*, 2011 *TV viewing data is sourced from a major communication company and covers the metropolitan areas in 22 states. 19% 22% 22% 19% 17% 81% 78% 78% 81% 83% ALL PERSONS P 12-34 P 18-49 P 50+ % WEB ONLY % WEB THAT ALSO VIEWS ON TV 16
  • 17. DIGITAL ADVERTISING IS AN EFFECTIVE WAY TO REACH The Internet AND PERSUADE MILLENNIALS is used by the As you consider moving dollars to digital, it’s important to bear in mind the age of your vast majority target audience. If it happens to be the Millennial generation (currently between ages of Millennials 18-34), you’re in luck. Millennials are the next up-and-coming generation with rapidly increasing spending power, and they have already had a powerful influence on the ages 18-34. adoption of new technologies. The Internet provides a compelling way for advertising to reach younger audiences, whose media consumption patterns are changing to encompass a greater use of digital. The chart below shows that the Internet is used by the vast majority of Millennials ages 18-34. Figure 15 Percent of Consumers Using the Internet by Age Source: comScore Millennials Research, 2011 93% 88% 42% AGE 18-34 AGE 35-54 AGE 55+ 17
  • 18. For many years, comScore has been measuring the effectiveness of advertising in Millennials are impacting brand preference, and we have consistently seen that TV advertising is more more difficult effective at changing behavior among older demographic segments compared to younger demographic segments. The results of our most recent study conducted in 2011 in the to persuade chart below clearly illustrate this point. via television advertising when compared Figure 16 Average Lift in Share of Choice Following Exposure to TV Ads to older viewers. Source: comScore Millennials Research, 2011 6.6 6.4 5.3 4.6 MILLENNIALS GENERATION X BABY BOOMERS SENIORS The 2011 study results shown above display a familiar stair-step pattern also seen in previous generational studies, with average TV ad effectiveness increasing with age. Baby Boomers and Seniors are less difficult to persuade via television advertising when compared to Millennials (the youngest generation), with an average lift in Share of Choice that is significantly higher than for Millennials. 18
  • 19. The same generational groups were also analyzed for digital ad effectiveness. The results It may be suggest that digital advertising performs better in relative terms than does television Millennials’ advertising among Millennials. While Millennials do show the lowest average lift in Share of Choice from digital ads among the generations, the difference is smaller than seen in comfort with the case of television. It may be Millennials’ comfort with technology and all things digital technology that makes them relatively more responsive to digital advertising versus television when and all things comparing Millennials to Generation X, Baby Boomers and Seniors. digital that makes them Figure 17 Average Lift in Share of Choice Following Exposure to Digital Ads relatively more Source: comScore Millennials Research, 2011 responsive 6.8 to digital 6.4 6.4 advertising 6.0 versus television. MILLENNIALS GENERATION X BABY BOOMERS SENIORS 19
  • 20. EDIT TV ADS DOWN TO 15 SECONDS TO OPTIMIZE FOR DIGITAL PLATFORMS Realistically, most ad budgets won’t allow for completely new commercials to be developed for digital, and it turns out that it’s really not necessary. There are a few steps you can take to tweak an ad made for television to optimize it for digital. The key strategy we recommend is to employ shorter-form ads, which we define as 15 seconds or less. With the speed at which users are accustomed to navigating the Web, they are likely to resist watching a full 30-second ad. But reducing that spot to 15 seconds offers a happy medium with which consumers are more comfortable. Here’s how to effectively cut a 30-60 second TV ad spot down to 15 seconds: 1 Reduce communication to a single idea. Most TV ad spots are long enough to effectively communicate several key messages. But with 15-second ads, it’s better to strongly convey a single message for the entire duration. 2 Use images and pictures instead of words. Leveraging the lean-forward environment of digital screens will more than compensate for the shortened air time. 3 Include 5 seconds of “product shots”. These shots are really critical in making the most of the shortened duration. It’s important to get to the point and show how the product is used or what it looks like. 4 Avoid “storyline” format. This is very difficult to do well in less than 60 seconds, much less 15. 5 Cut the correct content. If your ad is still too long, aim to cut scenes with little branding content, superfluous messaging or low interest. 20
  • 21. Concluding Thoughts As we have shown, adding a digital video component to a brand’s TV media plan offers a number of compelling advantages: 1 It can increase the effective reach of the campaign in a very efficient manner. 2 It delivers increased reach and frequency, especially among the advertiser’s target audience who are extending their TV consumption to include online video. 3 Digital is more effective in changing brand preferences among Millennials. 4 Ads can be delivered in 15-second commercials in either long-form or short-form video. We realize that the dynamics of the emerging digital and video landscapes may seem complex and overwhelming. And the pace at which things are changing in this multi- platform world can make smart decision-making seem daunting. Television is definitely not going away, and will remain a centerpiece of the media mix for many years to come. But clearly what has happened, through the development of new digital technologies and platforms, is that TV now lives and breathes in a multi-screen environment. Cross-Media consumers represent an emerging segment of the marketplace that must be marketed to in new and creative ways. 21
  • 22. About comScore comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital business analytics. comScore helps its clients better understand, leverage and profit from the rapidly evolving digital marketing landscape by providing data, analytics and on-demand software solutions for the measurement of online ads and audiences, media planning, website analytics, advertising effectiveness, copy-testing, social media, search, video, mobile, cross-media, e-commerce, and a broad variety of emerging forms of digital consumer behavior. comScore services, which now include the product suites of recent acquisitions AdXpose, Nedstat, Nexius XPLORE, ARSGroup and Certifica, are used by more than 1,800 clients around the world, including global leaders such as AOL, Baidu, BBC, Best Buy, Carat, Deutsche Bank, ESPN, France Telecom, Financial Times, Fox, Microsoft, MediaCorp, Nestle, Starcom, Terra Networks, Universal McCann, Verizon Services Group, ViaMichelin and Yahoo!. For more information, please visit www.comscore.com FOR FURTHER INFORMATION, PLEASE CONTACT: Stephanie Flosi Stay Connected comScore, Inc. +1 312 777 8801 press@comscore.com Follow @comscore 22