1. On Making Measurement Make Sense: A Vendor’s Perspective Josh Chasin; Chief Research Officer; comScore Presented at the OMMA Metrics, March 23, 2011

2. @jchasin

3. First, The Bottom Line If only there was one single magic number that made digital as easy to buy as TV… I believe there are legitimate pain points the industry faces, and that these are all embedded in the findings of the MMMS pre-work However, I do not believe all these pain points are all, at core, measurement issues Even though they may have been articulated as such We CAN work together– publishers, advertisers, agencies, measurers– to bring more money into digital

4. Pain Points Ecosystem complexity And the resulting need for a simple compelling narrative A need for some sort of engagement metric Pre-buy vs. Post-buy

5. Pain Point #1: The Ecosystem is Complex

6. As the Great Media Planner Albert Einstein said… Everything should be made as simple as possible… but no simpler.

7. The Digital Ecosystem…

8. …the Network TV Ecosystem

9. Is There a Disconnect? I want to sell you real time delivery of impressions to cookies I want to buy an engaged consumer Advertiser (Spendus Digitalis) The Digital Ecosystem (QuantificusAlgorithmus)

10. Pain Point #2: The Need for an Engagement Metric

11. This is an Impression.

12. In the Beginning, All We Needed Were Gross Ratings Points Gross Ratings Points: for given target, GRP = Reach X Frequency* Reach: how many of these Frequency: how many of these per person Frequency Gross Rating Points Reach * Specifically, % reach X average frequency

13. Advertising Metrics Were, Literally, 2-Dimensional ..and that was enough, because if you bought enough TV, your campaign worked But today there are: SO MANY advertising choices (media, vehicles, inventory types) SO MUCH fragmentation SO MANY communications objectives …that we cannot afford to assume all impressions are equal

14. Metrics Have Emerged to Attempt to Measure the Quality of the Impression Itself In print… Starch noticing weights Ad verification, brand health metrics, etc. And the great, elusive metrics kahuna… “Engagement’ How do we place a differential value on the quality of the impression?

15. The Greatest Challenge in Digital Metrics: The Last Two Feet The last 2 feet Who’s out there? Are they engaged with the content? Did they see your ad? For how long? How did they experience your ad?

16. Media Metrics 3D: The Measuring! Differential scoring of impressions adds the missing dimension to advertising and audience measurement Frequency Engagement Gross Rating Points Reach Exposure scoring Alas, there is no single metric that immediately lends itself universally to relative scoring of exposure Because different ad campaigns have different communications objectives

17. But What Is Engagement (or, if You Prefer, Impression Quality?) Emotional connection with the media vehicle content? Emotional connection with the creative? Time spent (duration) with the ad? Lack of competitive clutter? Visibility? Change in awareness, attitude, favorability, or purchase intent? Drive to website, search, or store? A clickthrough? Variable based on consumer place in purchase cycle? Variable based on consumer presence in category? 17

18. Engagement Measurement: A Call to Action Can we develop a single metric that allows us to compare the quality of impressions across consumers, campaigns, media, and vehicles? I’m guessing no, but we should try.. If not, can we develop an array of impression scoring metrics based on the different advertiser objectives at play? And an ecosystem that can accommodate variable impression scoring based on marketing objective?

19. Pain Point #3: A Disconnect Between the Pre-buy and Post-buy

20. If Only We Could Make the Internet as Simple as TV… In TV, planning, buying, and campaign post-analysis are all done with a single currency: the Nielsen ratings But, since here in digital we have publishers and Page Views, not broadcasters and Program Ratings, maybe broadcast isn’t the appropriate media metaphor In the print business, MRI (magazines) and Scarborough (newspaper) are the “pre-buy” currency But guarantees and post-analysis are done on circulation (ABC data) Ad server data is essentially the digital analogue for circulation data

21. You need the weather forecast to tell you whether or not to bring an umbrella tomorow… …But you know whether it HAS rained based on how wet you actually got You Don’t Need a Weatherman to Know Which Way the Wind Blows

22. A Plea…

23. Please: We Do Not Need a Metrics Tribunal

24. The Most Measurable Medium… …is, invariably, the medium with the most measures Digital advertising is inherently complex and multifaceted Search, display Video, rich media CTR, exposure, awareness, sales impact, etc. Pre-shop, movement through the funnel Brand value Social Mobile Tablets Next year there will be 3 more things on this list, and I have no idea what they will be

25. Metrics are a Vital Component of the Ecosystem We already have a great system for assuring that new and resonant metrics will continue to emerge and evolve It’s called the free market system Metrics and measurement are a sector of the “delicate balance of nature” that is the digital ecosystem And as such, contribute to the health of that ecosystem to the extent that we are unfettered to innovate and thrive We all know the engine of growth in this space is innovation A tribunal is anathema to innovation

26. Note: this presentation is not, in fact, accredited by the MRC. Metrics are a Vital Component of the Ecosystem To the extent that we need a tripartite body to audit and accredit the vast panoply of digital metrics… we’ve already got that Let’s all agree to work together to make sure that the MRC is sufficiently focused and energized to fill whatever unmet need here might still exist And first and foremost, that means publishers, advertisers and agencies invested in the health of the ecosystem and the robustness of digital metrics, join the MRC and become part of the solution How do we make sure the MRC is sufficiently “digital”? If enough of you join the MRC, you will have done so

27. A Prescription: Compelling Narrative

30. The Digital Ecosystem…

31. The Complex Ecosystem: A Call to Action The antidote to the challenge of a complex ecosystem is to develop a compelling narrative Let’s work on that narrative How can we make the story of digital advertising as simple and compelling as the story of TV advertising? As magazine advertising?

32. To Sum Up…

33. Summary: Talking Points The complexity of the ecosystem is a barrier to revenue growth And there isn’t a magic metric that can remove that complexity A good thing for the industry to focus some creativity and brain power on is measurement strategies around engagement Or, if you prefer, differential scoring of impression quality We have different datasets for pre-buy versus post-buy That’s part of the complexity, but a fact of life Innovation drives all parts of the ecosystem including metrics Before we rush to the conclusion that measurement needs fixing, let’s get the narrative nailed down Metrics reinforce, embellish, and drive home the stories we tell But we need to figure out what those stories are first

34. If We Build the Narrative… …the metrics will be there But let’s nail down the narrative first So we can live happily ever after