Making Measurement Make Sense IAB GLOBAL SUMMIT October

Making Measurement Make Sense IAB GLOBAL SUMMIT October, 2012

Agenda n n Overview of 3 MS and observations about global adoption Media measurement standardization q n MRC’s role in the future of digital measurement presented by George Ivie, CEO and Executive Director, The Media Rating Council Buy side POV q Q and A with David Cohen, Chief Media Officer, UM

3 MS: Who Is Involved? Facilitators: Supporters: n 50 industry executives served on steering committee and working teams. n Over 150 others across the ecosystem participated. www. measurementnow. net

3 MS: What Is It? n A cross-ecosystem collaboration that will improve planning, buying and measurement of digital media and facilitate cross-platform comparison across ALL media. . . digital and legacy.

Why Did We Embark Upon the Journey? n Consumers embrace digital media in droves n Business and transactions lag behind consumers n Digital media need a consistent, transparent supply chain n Digital media need to be part of the cross media marketing ecosystem n Business leaders and functional experts need forums and mechanisms for change management

3 MS: The Objectives n Create the right digital currency and metrics n Drive industry consensus around these solutions n Identify ongoing standards-setting body

3 MS Can Change How the Ecosystem Does Business, Globally Publishers: Price/ Value Brand Media Allocations Brand Performance Marketer ROI • • More competitive with other media, especially TV Need to recast inventory Need to reinvent/redesign the consumer experience Need to determine the right price • How many GRP’S go to digital media? • How do we create a better media plan? • How do we plan digital media globally? • • • What are the core properties of interactive ads that build brands? How do we measure them? How do we ascribe value to ad units? Multiplier effects: 1+1=3? Maybe 4? How do we segment inventory? • Accountability through better digital metrics • Marketing innovation • Finally, the ability to plan and buy digital globally

Five Pillar Solution Based on Five Principles of Measurement 1 FACILITATE CROSS-PLATFORM COMPARISON Define impression 2 Establish audience currency • Shift from a “served” to a “viewable” impression standard • Introduce an online Gross Ratings Point (GRP) metric, providing reach and frequency reporting of viewable impressions 3 Standard classification of ad units 4 Brand ad performance metrics • Define standard and transparent metrics for view-through reporting and cumulative social activity Brand attitudinal measures • Establish standards and vendor accreditation to improve methodology for online brand attitudinal studies • Implement classification system and taxonomy for banner, rich media and streaming video ads 5

Opportunities Around the World n n n n Brings greater credibility and confidence in digital metrics Enhances cost effectiveness (ROI) of media spend Supports and facilitates comparison across platforms, which helps to optimize allocations Encourages and allows the use of better creative and inventory for branding The first and only global medium can be bought internationally or on a pan regional basis Ensures that brand impact measurement does not understate effects Builds measurement methods and metrics that capture the value of interactivity for brands Paves the way for improvements in other media measurement as all media go digital

Issues/Challenges for Worldwide Adoption n n n n Solving for i. Frames Adjusting inventory and revenue forecasts Recasting fundamental supply/demand assessments Implementing necessary changes to site design Absorbing costs of the first round of change(publishers) Calibrating the pace of change for each country and region q Newer or smaller markets may be able to move more quickly q Larger or more mature markets may need more time Sizing the market and assessing how brand spend moves across media platforms q Markets where the need to be comparable to TV is strong may need to accelerate the pace of change to be competitive q Markets that want to be in global digital brand buys may need to accelerate change Resourcing the preparatory work

3 MS Viewable Impression Pilot Efforts are Shaping Future Standards to be Issued by the MRC In progress currently Technical verification Publisher-led pilot Develop and test technology Track publisher portfolios • MRC verifies server/vendor technology and reporting capabilities to approve for pilot participation • Ad servers and publishers test functionality and uncover technical limitations • Test Viewable Impression parameters and isolate factors that influence viewability Agency-led pilots Track live campaign • Test advertiser campaigns in live environment • Further test Viewable Impression parameters and test impact on wider range of inventory • Assess measurement limitation issues

Classification Aims To Reduce Complexity And Facilitate Comparison Of Ad Inventory PRELIMINARY – TO BE TESTED AND PILOTED Display classification criteria Ad size - Small - Medium - Large Format capability - Image - Rich Media - Rich media with video Ad location - Below content Above content To side of content In content On top of content Video classification criteria User choice - Video plays automatically - Click to start, not mandatory - Click to start, user chooses ad Ad location in content Ad length 0: 00 - < or = 15 seconds - 16 -30 seconds - 30+ seconds Movement on page # of messages Player size - Static - Expandable - Floating - One or more other messages - No other messages - Small - Medium - Large 42: 31 - Post-roll - Pre-roll - Mid-roll Interactivity - Not capable of interactivity - Capable of interactivity (e. g. “Like” on Facebook)

Ad Classification and Taxonomy Implementation n Finalize technical specifications n Create consistent ad tag to carry information n Issue new standard insertion order (I/O) n Develop self-certification program for publishers

U. S. IMPLEMENTATION OF 3 MS SOLUTIONS The MRC, what it is doing, and how it can help with measurement around the world

APPENDIX PRINCIPLES AND SOLUTIONS #4 AND #5

3 MS Prioritized View-through As The First Standard Brand Ad Performance Metric PRELIMINARY – TO BE TESTED AND PILOTED Goals of 3 MS for Brand ad performance metrics 1) Standardize key parameters of this metric (see below) 2) Make this metric more transparent and credible by introducing accreditation for the reporting of this metric Parameter to be defined 1 2 3 Range of options and suggested solutions Number of ad views attributed for a view-through Percent of view-through attributed to different ad views • Data indicates that majority of view-throughs occur within 7 days 3 days and 7 days Number of days after ad view that visit to brand site is counted 1 day 90 days 1 st 2 nd Last ad viewed All ads 3 rd All ads receive full attribution Each ad receives equal fractional attribution Rationale Each ad receives weighted fractional attribution • 3 days is analogous to TV’s C 3 rating system • All ads contribute to brand building and a user’s decision to eventually go to brand or other target site • Attribution standards to be further tested

Standardized Social Metrics Will Be Critical And Remain Under Development Goals of social metric standards Preliminary metric solutions • Establish standards that provide a view of total relevant/ valuable social activity to assess campaign effectiveness 3 MS led process to prioritize social metrics based on: • Encourage accreditation of vendors providing standard social activity metrics 2) Availability of credible data • Promote innovation, competition, and improvement by encouraging vendors to develop and offer metrics above and beyond that defined in standard metrics 1) Value and usefulness of metric to advertisers Priority social metrics for standards-setting • Volume of high-value social activity/posts (e. g. , reviews, sharings, recommendations, etc) • Volume of exposures to high-value social activity • Analysis of positive/negative social media sentiment

Accreditation And Improved Methodologies Will Boost Confidence In Attitudinal Studies Accredited attitudinal metrics vendors will need to address key requirements • Improve response rates Options for improvements should follow in accordance with IAB Best Practices a Improve existing methodology • Shift to more accurate and relevant control groups • Reduce use of statistical weighting adjustments • Enhance ability to compare metrics with other media • Pursue accreditation of vendors and sources of data via independent industry body b Adopt new survey formats c Incorporate demographic and cookie data d Switch to panel based surveys • Improved userintercept analysis conducted by 3 rd party vendors • Variations of current user-intercept analysis • Surveys delivered to people who have seen an ad (identified via cookies) • Surveys delivered to panel members, with direct tracking of users