1. Digital Media Measurement:Friend or Foe for Marketers? Joe Laszlo, Director of Research (outgoing); Deputy Director of IAB Mobile Marketing Center of Excellence (incoming) OMMA Metrics and Measurement Conference March 2011

2. Digital Media Measurement Today Robustly competitive with many diverse vendors Leading vendors bring a high degree of integrity to the marketplace Innovation comparable with that of online media itself Nearly ANYTHING is measurable in a way that other media can only dream of And all media are becoming digital, so some of these “digital” media measurement characteristics spread to other media FRIEND! p 2

3. Digital Media Measurement Today A cacophony of contradictory metrics from dozens of competing vendors Almost impossible to determine reach and frequency of an ad schedule on multiple sites and/or ad networks No consistency across research vendors on basics like the Top 20 sites within a content genre Census-based web analytics and vendor data yield different exposure numbers Vendor methodology changes render dramatic fluctuations in measurement FOE! p 3

4. Contrast With Traditional Media Measurement Media buyers and sellers accept a shared margin of error Value chain players work within scientific norms Agreement on exposure measurement and “currency” allows billions of dollars to flow through the television advertising supply chain Planning and buying, Guaranteeing and stewarding guarantees Settling up the differences between guarantees and deliveries, make goods or overdelivery Reach and frequency of a TV schedule against target demos are readily available Reach and frequency across traditional media (e.g.,TV + print) can be calculated p 4

5. At Best Maybe Marketers and Digital Media Measurement are “Frenemies?” DIGITAL MEDIA MEAS. MARKETERS Source: Gossip Girl p 5

6. Even if Measurement isn’t a Friend, the Market’s Growing Fine…? Quarterly Online Ad Revenue Comparisons — 1Q2001-3Q2010 $22,661 $23,448 $21,206 $9,626 $12,542 $7,267 $16,879 $6,010 $7,134 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 Source: IAB Internet Advertising Revenue Report, 2010 First Half and Second Quarter Report; IAB Press Release: “$6.4 Billion in Q3 2010 Sets New Record for Internet Advertising Revenues.” p 6

7. But Especially in Terms of Brand Advertising, Measurement is a Barrier 2009 US Measured Media Spend: $147 Billion Total 2009 US Online Media Spend: $24 Billion Total Source: Brand.net analysis based on Barclay’s Capital, Think Equity Partners LLC and DMA. From Ad Age, Building Brands Online, 2010 p 7

9. The Digital Metrics Universe:Publishers By the way, this line is getting pretty blurry… p 9

10. The Digital Metrics Universe:Agencies and Marketers p 10

11. The Digital Metrics Universe: IAB Has Helped Create Rigor and Standards The IAB’s work so far has been vital, but it’s treating symptoms not the underlying issue. p 11

12. What is Making Measurement Make Sense? An initiative to fix digital measurement with an eye to building cross platform measurement metrics and systems and making our medium more brand hospitable A process that will create an efficient supply chain so that the planning, buying and evaluating of all media are transparent and consistent A new perspective: digital media measurement is a business issue, not a research problem An independently led, short-term way to create digital media currency A mechanism for developing recommendations for the establishment of a measurement governance body that will oversee standards, quality and change management for all media measurement p 12

13. Who is Behind Making Measurement Make Sense? IAB,4A’s and the ANA are the founding partners and form the leadership team IAB, 4A’s and ANA jointly issued an RFP to consulting firms to lead the process The founders evaluated consultant proposals together Bain and Medialink selected by the partners to lead the effort p 13

14. Making Measurement Make Sense: Project Objectives Determine the right metrics and solutions Drive industry consensus around the solution Establish measurement governance model p 14

16. Reduced “supply chain” costs in planning, buying and managing digital media

17. Rapid expansion of cross-platform marketing campaigns that better leverage digital

18. Strong foundation for ongoing cross-ecosystem collaboration and metrics/standards change managementp 15

19. Conclusion: Digital Measurement is a Friend. But it Could be a Better Friend Digital measurement is a powerful tool, delivering insights on consumer behavior and ad impact that no other media can match. But maybe digital measurement is a little nerdy, lacking in listening skills (among other social graces). Past IAB measurement efforts have been helpful, but also scattershot and somewhat reactive. The industry has a real opportunity to improve digital measurement, holistically, preserving the dynamism we love while encouraging greater clarity and accountability. Since all media are ultimately going to be digital, it’s even more important to seize this opportunity now. p 16

20. Thanks! joe@iab.net