1. COMMUNICATIONS & MEDIA
Networked Advertising
Growing revenue in a highly fragmented business
ADVISORY

2. © 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

3. Table of Contents
Introduction 1
Digital Is in a Shakeout Period
– Brad Armstrong, Martin Agency 3
More Complicated Than Ever
– Greg Stuart, Former CEO, Interactive Advertising Bureau 6
Unmeasured Is Undervalued
– Daniel Monistere, Nielsen 10
Listening to the Market
– Tracy Benson, Best Buy 13
Technology and Brand Measurement
– Dan Beltramo and Nick Rau, Vizu 17
Ad Networks Are Not Going Away
– Mike Woosley, TidalTV 20
High Impact Media
– Walker Jacobs, Turner Entertainment 24
In Summary
– Intelligent Business Decisions Are Needed 28
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

4. 1 Networked Advertising
Introduction
The advertising business has changed forever. Historical boundaries found in
traditional print and broadcast advertising no longer apply online. In turn, broadcast
television, cable television, print, and outdoor advertising are now challenged to
adopt new paradigms. The industry is still very strong, but many leaders now insist
that advertising as we know it will have to adopt completely new digital business
models to survive and thrive going forward. Those new business models and new
ways of understanding audiences will, in part, shape the future of the industry.
What has caused such a dramatic and For this white paper, KPMG went to
important change? The Internet and the seven leading executives in the digital
notion of free content “when I want advertising ecosystem. We asked each
it, where I want it, and how I want it” of these subject matter specialists to
has completely upended the traditional address a specific perspective based on
advertising networks. Even the notion company roles. They generously took time
of data measurement has changed. to answer our operational, financial, and
Executives across the ecosystem are process questions and share their broad
struggling with declining subscriber knowledge about the digital advertising
trends, data and revenue clarity across ecosystem—including the roles of other
vendors, and consumer cost expectations participants. The result is a thorough look
—all in an era where the consumer at the risks and opportunities ahead for
“retail” experience is more expensive and advertising in the Internet era. Please
risky than ever. Nevertheless, the roles read on to learn more about this fast-
of the advertiser and consumer remain changing and complex space.
essentially the same. Ad agencies still
strive to create compelling marketing
messages. Publishers still produce
content advertisers want to associate
with. Broadcast and cable television,
newspapers, magazines, and radio still
have the real estate and the means to
reach the eyes and ears of consumers.
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

5. Networked Advertising 2
Introduction, continued
THE ADVERTISING The Digital Advertising Ecosystem
ECOSySTEM TODAy
Advertiser Ad Agency
Advertiser. Seeks to promote goods or
services via online/mobile properties.
Ad Agency. Creates the online/mobile
advertising campaign for the advertiser.
Ad Server
Ad Server. Technology that distributes
the ads across online/mobile
properties. Can be run by the publisher Ad Network
or a third party.
Publisher Publisher Publisher
Publisher. Owns the online/mobile (Online/Mobile) (Online/Mobile) (Online/Mobile)
properties where the ads are displayed.
Ad Network. Manages and serves ads
to a group of online/mobile properties.
Ad Flow
Content
These groups may be controlled by Content Flow Consumer
Owner
a single publisher or aggregated by a Revenue Flow
third party. Source: KPMG LLP
Consumer. Receives the advertising
when surfing online/mobile properties.
Content Owner. Controls the content U.S. Online Advertising Spending, 2007–2013 (billions)
that brings consumers to online/mobile
40
properties where ads are displayed.
Can be the publisher or a third party. 35 $37.2
30 $33.7
$29.7
25
$26.8
$24.5
20 $23.4
$21.2
15
10
5
0
2007 2008 2009 2010 2011 2012 2013
Source: eMarketer, April 2009.
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

6. 3 Networked Advertising
Digital Is in a Shakeout Period
The Agency Perspective
Brad Armstrong is group account director and partner at the Martin Agency, winner
of the 2009 Advertising Age Agency of the Year Award. The 40-year-old firm is part
of the Interpublic Group and has billings of about $600 million. The Martin Agency
interactive department, created 15 years ago, is fully integrated with teams focusing
on print, TV, direct marketing, and PR. Armstrong is lead account executive for
Wal-Mart, the agency’s largest client.
“It’s a high-energy, complicated, messy products and services they genuinely
time right now, says Brad Armstrong.
” want to see. But marketers need more
Companies are jockeying for position long-term comparative studies of
and trying to decide what their core marketing approaches and consumer
competency will be. Online media reactions to learn key points in user
placement companies are undertaking search and conversion decisions. “Until
creative work, and creative companies marketers are able to track user behavior
are buying online placement and video online to understand how consumers
companies. “Chief marketing officers transact a session on the Web, we’re not
are confused about digital advertising going to be able to target effectively,
”
and can’t distinguish the players, says
” says Armstrong.
Armstrong. “They need a guide. ”
He recognizes that the flip side of
What consumers are willing to pay for obtaining enough behavioral data to
online also is problematic. The newspaper generate patterns of usage is a potential
business faces that problem daily as privacy backlash: “People don’t really
more and more people read the news want every click and keystroke to be
online and forgo buying a paper. known to the world. ”
Because fee-supported online news Still, Armstrong has no doubt that
has generally failed, Armstrong thinks researchers soon will create a program or
advertising-supported online content is metric to make sense of online behavioral
the way of the future. data so advertisers can understand the
patterns of the people they want to
BETTER DATA, STANDARDS ARE influence. “Digital marketers spend hours
NEEDED online, tweeting, and Facebooking to
better understand consumer behavior,
The promise of advertising online is its
but the average customer treats online as
potential to collect data that marketers
a utility, he says. “When we finally see
”
can use to target consumers with
where our message can intersect user
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

7. Networked Advertising 4
Digital Is in a Shakeout Period, continued
behavior in that utility—when we crack Two things are important about the “Whoever figures out and provides the
the code—online is going to be the most interactivity of mobile, he believes: One best interface between mobile requests
cost-efficient marketing vehicle in history.
” is that users will be able to search and and the data response to them is going to
get an answer wherever they are. Two do really, really well.
”
One impediment to that vision of
is geotargeting. “A year or so ago in
efficiency is a lack of agreed-on data- Near term, he thinks it is possible that
New York, I saw a bus come down Fifth
exchange standards. The wide range of Google and the Android cell phone
Avenue. It had a digital panel on its side
proprietary technology formats creates operating system may provide an
that advertised a restaurant a block away
inefficiencies, and different groups open source alternative to fragmented
from where I stood, Armstrong says.
”
with different agendas promote vying operating systems. “Google wants to be
“I thought, ‘That bus will go down Fifth
standards. This complicates tasks as the organizer of the world’s information,
Avenue—or anywhere—and depending on
simple as reporting digital-content so that wherever you are, if you query
its location and who has bought ad space,
sales from downloads or streaming. Google, it will be able to give you the
its message will change to promote
Not only are current reporting and data information relevant to your search and,
whatever restaurant is nearby.’”
standards a problem, intermediary groups along with it, marketing communications
continuously add to the load by creating Handhelds are already GPS-enabled from all the people willing to pay to talk to
new mechanisms and programs that to a large extent, he continues: “As it somebody asking that question, he says.
”
transfer digital information. becomes the norm, you will be able to
Consumers will choose how much access
search for information based on your
Brand advertisers are not really aware of to their movements they permit, however.
location. So if I’m on Fifth Avenue and
standards as an issue. “What they want is Those who prefer not to be tracked
37th Street in New York and I’m hungry,
someone to make sense of it all for them, wherever they go will opt out, says
I can query restaurants on my handheld
so they can make intelligent business Armstrong. Those who opt in will give up
and obtain a list of nearby restaurants,
decisions, says Armstrong.
” some personal information (as on joining
perhaps with menus, Armstrong says.
”
Facebook, for example) in exchange for
THE NExT MOST-IMPORTANT access to the location-based data they
SCREEN IS MOBILE want.
“Google wants to be the
The key screen went from the TV screen organizer of the world’s The traditional advertising concept of right
to the computer screen, and the next key information, so that wherever you ad, right time, and right place continues
screen will be the one you hold in your to be valid online if you add “right person”
are, if you query Google, it will be
hand, Armstrong believes. He sees that to the formula, he says. A message
shift happening over the next decade, able to give you the information and ad may be right, but marketers
driven by technology improvements relevant to your search and, have to identify the prime prospect and
such as iPhone’s customization of the along with it, marketing understand his or her behavior to be able
handheld screen. Consumers are getting to time the message.
communications from all the
used to looking at things in miniature, but
people willing to pay to talk to The way things are going, Armstrong
the medium requires different tools and
thinks it is likely there will be $100 million
different creative approaches, he says. somebody asking that question,”
of mobile advertising media buys in the
Armstrong says. next few years. “The technology and the
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

8. 5 Networked Advertising
Digital Is in a Shakeout Period, continued
data feeds are not quite right yet, but all built footage for online and mobile are makes a social network attractive to an
that will change in the next couple years, ” behind the curve but will catch up quickly. advertiser is the level of involvement
he says. “So will the behavior of the “You pay for additional production, but people have with it. Smart marketers
carriers, who are notoriously protective of people are realizing that work customized are finding ways to woo such sites to
subscriber data.” for the online space is more effective.
” get their message across. For example,
communities of involved moms are
RETURN ON INVESTMENT There’s significant pressure to provide
gathering to share tips for raising their
entertainment value with any message,
kids. Marketers are trying to join those
In theory, advertisers should be able too. A dry selling message irritates
communities carefully by providing
to have a more accurate notion of the people, especially if there’s a lot of
information that helps them navigate their
return on advertising spend (ROAS) in uninteresting noise attached to it. “The
job as moms.
an online world, but much depends on challenge for companies like ours is to
the business. “I’ve seen 20 models in provide entertainment that is a gift. We’re “Small communities will emerge, I think,
the past 12 months, and none of them the uninvited guest, so we’ve got to and they will consist of the 100 people
is exactly right, says Armstrong. “Every
” entertain them or they’ll be angry at us, members really want to talk with—like
major marketer is struggling to do a and we’ll be rejected. We can’t let that a family network, says Armstrong.
”
mixed media modeling program and to happen. ” Companies are starting to provide
understand the return from the different platforms for such small communities,
mediums including online. There’s a long SUCCESS WILL HINGE ON and sponsoring them is a place where
way to go before we can understand RELEVANCE a marketer can get traction. “Over the
ROAS unless you’re a very structured next 30 years, we’re going to see the
“Over the next 10 years, advertisers are
seller of something online, and you can online growth of niche communities
going to get smarter about how to target
just track it right through a sale.
” that marketers join or sponsor, providing
their messages and about what content
information relevant to that group.
”
One company is beginning to see more actually drives brand or transactional value
success based on consumers watching for them, Armstrong says. “I foresee a
”
ad-supported content online. Episodes huge shakeout, after which there won’t be
on demand from abc.com are all ad- as many profitable information sites vying
supported, using video advertising that is for advertising, but instead there will be a
mainly repurposed from an original shoot lot of transactional sites that sell over the
for television or cable. Because of the Web. Many colleagues think there will be
expanding bandwidth, the opportunity for more information sites, but very niche-
rich content is huge, he thinks. driven. For example, a site for people who
own or are interested in Mustangs from
Armstrong says, “Any players worth
the ’60s is exactly the right place for a
their salt these days are creating work
seller of chrome replacement parts. ”
specifically for digital use. It may be shot
at the same time as the TV commercial, The social network space is not as utility-
but if they know what they’re doing, driven as other online interactions, and
they’re customizing it for use on the social sites are more relaxed and willing
Web. Agencies not shooting purpose-
” to accept messages—but not ads. What
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

9. Networked Advertising 6
More Complicated Than Ever
The Industry Perspective
Greg Stuart has insights that stem from a diverse advertising career that includes
five years as CEO of the Interactive Advertising Bureau (IAB)—an industry group of
more than 400 leading media and technology companies that sell nearly 90 percent
of online advertising in the United States—and coauthoring the book What Sticks
(Kaplan Business Books, 2006) a research-based look at what makes advertising
effective.
“As the digital advertising ecosystem Online, a marketer’s dollar dwindles
evolves at a furious pace, its myriad to nickels and pennies en route to a
technical complications, options, publisher (or whoever touches the
and opportunities seem almost consumer last), Stuart explains, because
overwhelming, Greg Stuart says.
” of all the pieces needed to make a buy
“The relationships between agencies, today. The online marketer can go directly
media buyers, ad networks, exchanges, to the publisher or through an agency
data providers, verification services, or an ad network or a connector to the
measurement companies, publishers, new world of exchanges such as DataXu.
and content owners have become “But I’m not sure any stakeholder fully
interwoven, obscuring participants’ roles, understands how a network connects
true value, data ownership, and consumer to other networks, to exchanges, or
access. If—as an industry joke goes— to publishers, let alone how data gets
‘advertising was a business created for attached or how ads are measured, ”
C students,’ that isn’t the case any longer.
” he says.
To write What Sticks, Stuart and his Despite the fact that the advertising
coauthor, Rex Briggs, conducted research technology ecosystem is so complex,
against $1 billion of ad spending in the online sector and other digitally
TV, radio, magazines, and online—the networked channels are well positioned
entire media spectrum. “Our sponsors to gauge return on investment (ROI).
were top-50 marketers who wanted to While still less than 10 percent of ad
answer a simple question: What is the outlay, online advertising is more oriented
value of each advertising dollar spent, by to applying ROI theories and processes.
medium?” Their research led them to the Stuart thinks that may ultimately attract
conclusion that more than $112 billion the brain power needed to really
was being wasted of the then-annual total capitalize on the opportunities.
of $300 billion in advertising spending.
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

10. 7 Networked Advertising
More Complicated Than Ever, continued
WHAT GETS MEASURED… click measurement is a disservice to the strategic advantage should apply to
field. Actual sales or purchase intent (or
” more than just ad impression counts.
Stuart hosted about 20 dinners a other metrics whose value are still to be We have a powerful weapon in simple
year with marketers and agency proven—the key being “proven”) are a ad effectiveness tools such as Dynamic
representatives when he headed the IAB. significantly better measure of advertising Logic and Vizu, but our syndicated
As he listened to dinner conversations, it effectiveness than click-through, Stuart research needs to be higher quality.”
struck him that marketing professionals believes.
had little grasp of how advertising really
works and even less understanding of NUMBERS GAMES “If you had told me five years
online advertising. “Digital has really ago I’d spend four hours or
shown that the emperor has no clothes One of the best things the industry
accomplished during Stuart’s tenure at more a month managing my
—that meaningful education, training,
and insight are in very short supply in the IAB was to clean the metrics used relationships on LinkedIn and
advertising, Stuart says. ”That is probably
“ to count ad impressions, which is the Facebook, I’d have thought ‘no
why we found that 47 percent of the 30- underlying currency of the industry.
way.’ Yet I do just that today,”
odd campaigns we measured for What “Before 2003, ad servers had major
discrepancies in ad impression counts
Stuart says.
Sticks failed before a media dollar was
spent, and 83 percent of those campaigns of from minus 50 percent to plus 100
lacked optimized spending allocations. ” percent. The IAB worked hard to get Online advertising’s complexity makes it
a global technical standard on how to hard to verify whether an ad reaches the
“What I think is wrong with advertising measure impressions, so such differences consumer without an independent body
overall, he says, “is that within the
” now are about 10 percent or less, Stuart
” tasked to do that. Anchor Intelligence,
industry, incentives are completely says. “Getting a technical standard in for example, has “developed technology
misaligned. Agencies often are paid on place showed us there was a lot of that a single agency could likely never
either percentage of spend or hours human error in how campaigns were build” to verify whether a click was valid.
invested, neither of which puts the focus executed. Process standards are needed, Other services to verify that an ad really
on advertising effectiveness—which too,” Stuart says. ran when and where it was supposed
should be the goal. Everyone says that’s to are in development. These services
the goal, but in my experience, their “If advertisers don’t trust online’s
need more support and more industry
actions suggest otherwise. ” numbers, the medium is dead or
guidance. To the extent that they validate
dreadfully stalled,” Stuart says. “Also,
Asked what he thinks has been the effectiveness of digital campaigns,
we made a strategic decision in 2002 to
the biggest mistake made in digital they will provide insight and confidence
measure actual ad impressions rather
advertising, he says, “No research to marketers and agencies. The days of
than just the content, which is what other
anywhere in the world validates that simply watching to confirm that your
media measure based on ‘opportunity-
a click has any relationship to brand commercial aired during 60 Minutes,
to-see.’ (TV or radio measures average
effectiveness, yet click-through is the de are over.
quarter hour in program; print measures
facto measure most online marketers the complete magazine or newspaper.)
and their agencies use. Overreliance on Using numbers/data/research to
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

11. Networked Advertising 8
More Complicated Than Ever, continued
WE NEED TO TURN UP THE HEAT COSTS WILL DROP I’d have thought ‘no way.’ Yet I do just that
today.”
Stuart says serious complications also “Can content be monetized profitably?
result from the fact that the Internet is Of course, Stuart says. He cites an
” It perplexes Stuart that marketers don’t
a global medium that can be accessed early-2002 Wall Street Journal editor’s see the opportunities. “As a former
anywhere in the world. “I know of letter on Internet media that said CMO, it bugs me that they don’t see
some publishers that knowingly sell advertising would never support online the advantage of jumping in early. My
international audience impressions— content. Skeptical, Stuart checked the background is in economics, and it was
worthless in the United States—to data of all the relevant public companies. clear to me in 2001 that high supply
domestic advertisers, he claims. “That’s
” (increasing consumer Internet access)
“It was a difficult period, he says, “but 35
” and flat marketer demand would make
egregious, Stuart says.
”
percent of the public companies projected online media the deal of the century. My
“In 2002, we went to the IAB board profitability by the end of that year, and book research just proved what should
about the issue of selling international 95 percent projected profitability by the have been intuitively obvious, Stuart says.
”
audiences to domestic advertisers end of the following year. And they all Today, he thinks exchanges and demand
without notification. A few publishers did achieve profitability. The Wall Street trading platforms such as DataXu and
did not want this fact made public or to Journal just hadn’t looked at the data. MediaMath offer great opportunity.
change their practices. When the wrong Meanwhile, advertisers accepted that
incentives are in place, companies don’t editorial view as fact and stayed out of MOBILE—A MOVING TARGET?
act in the interest of their customers.
” the online medium. ”
“I did some research for an Adweek
Similarly, a CEO who realized his company Reports that YouTube doesn’t make article a few months ago, and 76 percent
had huge fraud issues in its system wrote money annoy him as well. YouTube of advertising people said they would
to several second-tier companies in the generates a lot of revenue, Stuart asserts, accept advertising on their mobile phones
search ecosystem to suggest organizing and its consumer and content acquisition only ‘over my dead body,’” Stuart says
an industry-level effort to eradicate click costs are low. That suggests its reasons with amusement. Regardless, “Mobile
fraud. His contacts said “good idea” for not being profitable may be that the meets my qualifiers for being a valuable
and went to talk to their internal people. company is choosing to invest for the media vehicle in that it does something
Reportedly, many came back to him and future. Stuart thinks marketers may be unique by offering marketers consumer
said, “I’m sorry, we can’t participate in using faulty information to not explore the proximity and greater personalization,
”
this. We make too much money from click channel, which is a big missed opportunity Stuart says.
fraud.” for them and their brands.
“Consumers distrust mobile advertising
So it goes back to incentives, says Stuart: However, the biggest opportunity right because of how badly other media,
“If the media company or the search now in online media is likely social media, including online, have acted. For instance,
companies had been judged solely on which is becoming “deeply engrained in the television industry is crazy to think
producing effective results at the sales consumers’ lives, Stuart says. “If you
” that nearly 20 minutes of commercial
level—rather than on revenues or clicks had told me five years ago I’d spend four time in an hour show is acceptable to
—those people would not have made hours or more a month managing my consumers. And the Internet was nuts to
those choices.” relationships on LinkedIn and Facebook, have done pop-ups, Stuart says.
”
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

12. 9 Networked Advertising
More Complicated Than Ever, continued
“Consumers are transferring their BE CAREFUL WHAT yOU WISH FOR THERE IS STILL A LOT TO DO
distrust to new media, where they have
more control. On sensitive issues such as In the end, advertising is still all about Infrastructure needs to be built, including
privacy, they have little basis to trust that putting the right message in front of the tools to make it easy for big and small,
we, as an industry, will act properly. Those right person at the right time. Targeting national and local advertisers to come
issues are manageable only if the industry is one element of doing that, but Stuart onboard. Ads have to become as
really polices itself. Under Randall thinks targeting is both overvalued today dynamic as the content, with increased
Rothenberg, the IAB just took a big step and underestimated in what it means for personalization and targeting of consumer
to do that, and I applaud him for it, Stuart
” the future. “The challenge of targeting interests.
says. “Mobile will need to handle the is to avoid ending up with such a narrow
“On one side, complexity and the rate
same issues. ” audience that it becomes an inefficient
of change are causing marketers and
channel, Stuart says. “Most people in
”
While mobile has been around for agencies so much angst, and on the
media companies think targeting means
more than ten years, Stuart finds other, there is so much opportunity and
getting a premium, but the premium
it disappointing that it does not yet excitement for those of us trying to craft
seldom offsets the complications of
generate $1 billion in ad support. The and capitalize on this new world, Stuart
”
managing inventory, overseeing a
Internet was generating revenues of $8 says. “I’m very positive we all will learn
campaign, or reading results. ”
billion per year five years after its birth. how to use the opportunity this transition
“Mobile has got the worst sense of That said, targeting is potentially offers. It is just a matter of when.
”
timing of anything I’ve ever seen. Every the industry’s future salvation, after
time it got some legs (in 1999–2000 and infrastructure and other systems have
2007–2008), the economy changed, ” been developed to make it work. “But
Stuart says. “They’ve announced ‘This what most people miss when they
is the year for mobile’ ten years in a discuss targeting as Google’s “big idea, ”
row now. The waiting is killing me. Now, is that Google’s system and economics
though, smart phones might be a game really worked, Stuart says. “Against
”
changer. ” millions of intent-driven opportunities,
Google brought hundreds of thousands of
advertisers to the table—and made it
self-service. They solved both sides of
”
the equation, not just better targeting.
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

13. Networked Advertising 10
Unmeasured Is Undervalued
The Media Research Perspective
Daniel Monistere, Nielsen senior vice president, has more than 20 years of
experience in media research. In 2001, he joined Nielsen as vice president and in
that role implemented quality metrics tracking across all service offerings. Nielsen is
a leader in monitoring and measuring global Internet activity using proprietary tools,
syndicated services, and custom analytics.
A CLEAR CURRENCy WILL EMERGE huge data-processing requirements. Being
able to provide credible measurement data
“With online/mobile in its infancy, people in the online/mobile industry will depend
are not sure what role they will play or on developing clear protocols for standards,
exactly how they’re going to monetize disclosure, and transparency:
their investment, says Daniel Monistere.
”
“ advertisers, agencies and media
As • To determine standards, industry
buyers, publishers, and the content groups will have to agree on which
people who attract advertising improve metrics are relevant, which are not,
their understanding of how digital media and devise a way to process those
work together, they’ll figure out how to metrics.
implement their core competency. ” • A system for disclosing the measure-
Today, online measurement has ambiguity ment process, with ground rules, is
compared with Nielsen’s television necessary. “One problem is the sheer
audience measurement, which people complexity of the data. When you
can quantify. Billboards used to illustrate ingest the data, you’ve got to apply
“If 85 million people watch a that conundrum: To quantify ad exposure, cleaning and editing rules to filter what
do you use traffic counts or plot the ad’s to keep and what to discard, says
”
program on TV, your reach is 85
longitude and latitude? Today, we could Monistere. “Nielsen discloses exactly
million. If 5.5 million people view where we make edits and the amount
cross ad placement with tracking panel
that same program online and an members via GPS. “To be correctly of cleaning in the data-ingestion piece.”
increment of 1.5 million sees it valued and demand its proper share of • Transparency, whether through audi-
Internet only, there’s a 4 million ad dollars, networked advertising has to ence measurement disclosures or
overlap of people who watch a be measured, says Monistere. “Having
” third-party audits, is essential for letting
so many metrics for quantifying what an parties review and evaluate data.
program on television and stream
advertiser is purchasing is holding back
it online,” he says. “You can make There are attempts in the marketplace to
industry growth. ”
write standards to quantify ad exposure
the argument that you increased
The Holy Grail of online/mobile advertising and to establish certification. The Media
your reach to 86.5 million.” is pinpoint targeting, he says, which has
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

14. 11 Networked Advertising
Unmeasured Is Undervalued, continued
Rating Council (MRC) has developed and Cell phones are limited by the amount of The data are there for everything people do
continues to refine online standards, commercial content the user will put up online, and Internet server log subscriptions
disclosure, and transparency protocols. with and screen size. Sports or news works from a variety of major U.S. Internet service
Many video properties with their own Web better than some other programming. providers will tell you accurately what types
sites can apply to the MRC to have the way “The biggest wild card is the under-18 of people are going to what types of sites.
they count hits on their site accredited. generation. Because I enjoy the feel of Measurement that follows the audit trail
Web sites that want accreditation can paper, I’ll still read a newspaper, but my that people leave triggers privacy concerns.
apply to an independent party to assess two boys, who are 12, are comfortable with
Log services provide a level of granularity
their standards, which mainly come from LCDs and don’t mind watching on a little
that is close to census, which is always
the Interactive Advertising Bureau (IAB). screen, says Monistere. “
” Attitudes may
very desirable, says Monistere, but they
The process adds value for an applicant change as a younger group grows up with
have limitations. For instance, set-top box
but is not a prerequisite to doing business. the medium. ”
data will reveal what programs go into the
For every one that voluntarily undergoes
Getting good mobile measurement data household but not to whom.
this rigorous process, thousands don’t,
is tricky as well. Carriers are extremely
and media buyers are not assured of a Even with census data, any picture of
protective of their consumer relationships,
systematic counting mechanism. consumption will be incomplete. TV
and any software solution means going
audience research must represent people
HyPE AND REALITy ON MOBILE through the carrier. Any hardware solution
with all forms of carriage…those who
has to be compatible with all the hardware
receive their signal over the air only and
Nielsen measures Internet viewing activity in use. “If we replace audience cell
people who receive cable or satellite.
that takes place in the home, and it has phones with ours, how do we do that in a
Within the cable sector, some homes have
a service that looks at Internet usage methodologically sound way?” Monistere
set-top boxes, others don’t, and some have
remotely. For cell phones, it is still trying to says. “Cell phone usage is part of the larger
a combination of the two. Of the universe
figure out an appropriate way to measure ecosystem—wherever television is, we
with set-top boxes, whether cable or
—on-device measurement or some other want to measure it. ”
satellite, some segments don’t have DVRs,
method.
CENSUS: THE TRUTH IS OUT which is a driver of viewing behavior. For
Internet streaming and cell phone THERE many of these groupings, census data can
measurement contrast with TV in that the be harvested.
commercial content is different. “Some Anonymous data helps both advertisers
In the online space, consumers already can
people say consumers would rather watch and consumers in ways we take for
join sites by agreeing to e-mails soliciting
a program online to avoid commercials, ” granted. Many things are free or are
opt-in participation in different surveys. If
says Monistere. “If that’s true, adding cheaper because advertising offsets the
they agree to take the survey, they get 5
commercials will drive audience away. cost. “But people are sensitive to anything
points; if they qualify to take the survey,
And if you don’t, you can’t monetize your that is electronically census based, says
”
they get 75 points. They become or remain
investment. Different clients we’re working Monistere. “I don’t think anyone knows
part of the panel to accumulate points in
with are alarmed about siphoning away the solution to finding that balance
order to redeem some type of prize or
viewership to a free form. Newspapers did between getting advertisers and marketers
reward. “There’s a question about how
that, and they now have big problems. ” information that they want and maintaining
representative that is, says Monistere.
”
the level of privacy the public wants.”
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

15. Networked Advertising 12
Unmeasured Is Undervalued, continued
“But it may be a good way to supplement a counter to the industry fixation on the To assemble demographic information,
randomly drawn panel.” threat the Internet poses to television, and advertisers are going to need a way to
that advertisers are migrating because the quantify the people who redeem marketed
Essentially, all Nielsen-run panels require
18-to-34 demographic isn’t watching TV products. Nielsen movie theater research
panel member consent—people check a
anymore, he says.
” helps drive the in-theater ads we see before
dialogue box that says “do you agree?” or
a film, for instance. To implement location-
“I accept. “Any time you can engage the
” Nielsen funded a study from the Council
based advertising, advertisers will need to
person who is being measured, you don’t for Research Excellence, an industry client
know the characteristics of mobile device
have as many privacy concerns as when group. The objective of this study was to
users.
you’re harvesting census or server data, or quantify, through observation, people’s
data sets that come back to a central area, ” exposure to different media. To see the “We’re not close to having reliable, full-
Monistere says. target group’s habits, a device tracked their population census data. People see how
consumer media exposure around the easy it is to exploit personal information
OPTIMISTIC NUMBERS clock, including simultaneous exposure to and are very hesitant to give it, Monistere
”
telephone, Internet, TV, and radio. The study says. Identity theft is a public problem today
“As we move forward with various forms of
found that in-home television viewing was that has increased audience resistance
video on demand and Internet streaming,
about 94 percent of total content exposure. to anything that invades privacy. In the
marketers have got to be careful not
Only about 6 percent occurred exclusively past, there was mass pushback to the
to cannibalize the main audience, says
”
on the cell phone, away from home, or on introduction of Social Security numbers.
Monistere. The relationship between people
the Internet. That ultimately changed. He speculates that
who view a program on television and
some form of identification, via the Internet
those who stream online isn’t necessarily DESCRIBE THE AUDIENCE FOR or a personal device, could become the
exclusionary, either. “If 85 million people ADVERTISERS new Social Security number.
watch a program on TV, your reach is 85
million. If 5.5 million people view that We’re moving to a toolbox approach and “Is the concept of right ad, right time, right
same program online and an increment will find the device that we can most place still applicable to online advertising?
of 1.5 million sees it Internet only, there’s seamlessly get into, Monistere says. The Definitely. Right place and right ad will
a 4 million overlap of people who watch a 2002 movie Minority Report depicted future always be in play. Online, right time
program on television and stream it online, ” technology that scanned Tom Cruise’s depends on how ads are cycled. Right time
he says. “You can make the argument that eyes as he entered a subway station, for does apply with television, says Monistere.
”
you increased your reach to 86.5 million via example, and tailored an ad to him. To “Even factoring in DVR time shifting, more
supplementing with the Internet. ” plan the movie, the producers used think than 75 percent of viewing is live plus same
tanks to project the future; today, retinal day. For brand building, timing is moot,
Indeed, without the ability to stream on
scanning is used in some airports as part but for opening a movie, delay may make
the Internet, viewers might have watched
of the security screening process. “ future
A a difference. With anything on demand,
something else. The issue is how audience
mechanism might be a thumbprint, a heat the Internet is pretty much time-shifted by
behavior changes based on being able to
signature, or a device, but it will facilitate nature. ”
stream. If viewers have only X number of
location-based advertising, especially with
hours for entertainment, streaming may
GPS applications on mobile phones, ”
let them watch your program at a more
says Monistere.
convenient time. “This probably runs
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

16. 13 Networked Advertising
Listening to the Market
The Advertiser Perspective
Tracy Benson, head of Best Buy Interactive Marketing & Emerging Media, spoke to
KPMG about her role as senior director of consumer brand digital marketing for the
world’s largest specialty electronics retailer. Benson’s group is responsible for Best
Buy’s digital customer brand advertising strategy; interactive marketing; and mobile,
social, and emerging media product development.
The roles that populate the contemporary determine influence as it relates to return
advertising ecosystem are becoming better on spend for advertising, investment, or
defined according to Tracy Benson. “Today, the conversion, Benson says. “It’s also
”
from a marketing and communications/ challenging to understand the defining click
advertising perspective, I know who is or optimal click sequences that produce
responsible for online display advertising, the final action.
”
search engine marketing, or video
Publishers, advertisers, and agencies
marketing, Benson says. “But social and
”
have their own measurement systems,
mobile media roles remain a challenge. ”
as do third-party ad servers. “When you
Also challenging is the specifications try to define where the last click came
overload created by competing platforms. from, you can get duplicate data sets.
“If I want to advertise across 20 So if a publisher tells me, ‘You’ve got
different publishing sites and 20 different .13 percent click-through,’ but I know my
placements, I have four different platforms customer searched on Google while he
(mobile, social, pure Web and publishing, or she was in a tabbed browsing window
or interactive TV), says Benson. “Without
” clicking through the ad, using a shopping
uniform development standards, we have comparison engine in another, and
to create everything unique and custom. surfing BestBuy.com in a different tab,
That can increase production costs by five-, then what really drove the click versus
ten-, and twenty-fold depending on the which media influenced the last click?”
number of creative units and content. ” Trying to “de-duplicate” the data obscures
where effectiveness comes from. Lack
MEASURE OF SUCCESS? of standards and systems integration
is a barrier to efficiency and media
Lack of data exchange standards is
accountability.
another big problem. “In the online
space, there’s an issue about who takes Online advertisers in general have become
credit for what click, whether first, last, better at figuring out how to pull multiple
or subsequent multiple clicks. If you data sources together to look at the path
can’t define accountability, it’s hard to for display advertising, Benson believes.
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.