Are You Using The Right Mobile Advertising Metrics? How Relevant Mobile Measures Change The Cross-Platform Advertising Equation

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Are You Using the Right Mobile Advertising Metrics?: How Relevant Mobile Measures
Change the Cross-Platform Advertising Equation

Article in Journal of Advertising Research · September 2017


DOI: 10.2501/JAR-2017-034

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What We Know About MOBILE MEDIA AND MARKETING

Numbers, What’s Wrong with


Please Mobile Advertising Metrics?
Relevant Mobile Measures
In the Cross-Platform Advertising Equation

Gian M. Fulgoni INTRODUCTION MURKY MOBILE METRICS


comScore, Inc. When digital advertising spending surpassed tel- Clicks Are Unreliable
gfulgoni@comscore.com evision advertising spending in 2016, it offered Many marketers have relied on click-through rates
a clue to what the future held in mobile. In 2017, to help gauge mobile advertising effectiveness. But
Andrew Lipsman
mobile advertising spending is expected to drive just as clicks on online advertisements years ago
comScore, Inc.
70 percent of digital advertising dollars, eventu- were proven irrelevant (Fulgoni and Mörn, 2009),
alipsman@comscore.com
ally exceeding television in 2019.1 The news would the same outcome is perceived for mobile banner
be even more compelling if brands were confident advertisements. In 2016, mobile location firm Retale
about the measures they use for assessing the value reported that 60 percent of mobile advertisement
of mobile in the cross-platform advertising equa- clicks were accidental,3 suggesting that marketers
tion. Many in the industry, however, believe that should put little stock in what traditionally has
despite the impressive advertising-spend growth been the most commonly used metric to gauge dig-
forecasts, brands continue to underinvest in mobile. ital advertising performance. Retale’s mobile find-
Martin Sorrell, GroupM’s WPP chief executive ing is particularly troubling because it implies that
officer, told AdAge in February 2016, “The mobile the average click—by definition—does not provide
revolution hasn’t registered yet with companies.” 2
any reliable indication of effectiveness.
The fact is that the right mobile metrics are
within advertisers’ grasp, but the wrong ones Viewability Can Vary
often are consulted. As a result, advertisers For mobile branding effectiveness, the metrics
often underestimate the benefits of this medium. discussion must begin with qualified exposure to
Despite its small screen, mobile meets many of the brand advertising impressions. Measurement of
most pressing needs of brand marketers—strong mobile advertising viewability, however, has been
reach, high engagement, exceptional targeting, subject to debate by those who argue that view-
proven effectiveness, and efficiency in delivering ability standards first applied to desktop-display
against campaign key performance indicators. advertising cannot be ported over to mobile easily.
It is time to set the record straight on which met- In June 2016, the Media Rating Council (MRC)
rics do and do not matter for evaluating mobile adopted mobile viewability standards, after exten-
advertising in the context of cross-platform cam- sive research of mobile impression data for differing
paigns. This should help advertisers rethink their advertising formats across a diverse set of publish-
approach to, and unlock the potential of, mobile ers and advertisers. The standards defined a viewa-
brand advertising. ble mobile-display advertising impression as having
at least 50 percent of the pixels in the viewing pane
1 eMarketer. (2017, March 15). “US ad spending: The eMarketer fore-
cast for 2017.” Retrieved May 23, 2017, from https://www.emarketer.
com/Report/US-Ad-Spending-eMarketer-Forecast-2017/2001998. 3 Frederick, B. (2016, February 4). “60% of all mobile banner ad
2 Morrison, M. (2016, February 24). “Martin Sorrell on mobile: ‘We clicks are accidents” [web log message]. Retrieved June 9, 2017,
haven’t adapted.’” Retrieved May 23, 2017, from AdAge website: http:// from MediaPost website: https://www.mediapost.com/publications/
adage.com/article/digital/martin-sorrell-mobile-adapted/302818/. article/268266/60-of-all-mobile-banner-ad-clicks-are-accidents.html.

DOI: 10.2501/JAR-2017-000 September 2017 JOURNAL OF ADVERTISING RESEARCH 1


What We Know About mobile media and marketing

reach—particularly in relation to desktop.


A March 2017 analysis of the comScore
Top 100 digital-media properties showed
mobile’s clear supremacy over desktop as
a reach medium. Eighty-nine of the Top
100 properties had larger mobile audiences
than desktop, and the average mobile
audience of these properties was 53.5 mil-
lion, 65 percent higher than the average
desktop audience (See Figure 1).
This dynamic does not exist only among
the larger-scale properties; in fact, it is even

Figure 1 Top 100 Properties’ Average Audience Reach (MM) by more pronounced among medium-size
properties. The average Top 1,000 digital-
Platform in March 2017 media property now has two times the
Source: comScore Media Metrix Multi-Platform, United States, March 2017
reach on mobile—12.7 million visitors—that
it does on desktop (6.3 million visitors).
for at least one continuous second.4 The On the same topic of viewability, results Monthly active users—which is analo-
minimum time requirement applies to both from a 2015 study on video advertising gous to the unique visitors metric—is a
newsfeed and nonnewsfeed environments. effectiveness, conducted by Facebook in common metric of reach used by digital-
MRC Chief Executive George Ivie acknowl- conjunction with Nielsen, showed “that media publishers. Some, however, are
edged in April 2016 that “because of the from the moment a video ad was viewed taking it a step further to flex their reach
way [newsfeed] ads pass through a page (even before one second), lift happened muscle by regularly reporting their daily
as users scroll and because the ads aren’t across ad recall, brand awareness, and pur- active users. Facebook began breaking out
being loaded onto the page on a static basis, chase consideration.” Because Facebook
6
this metric in its quarterly earnings reports
the user’s cognition and recognition of ads advertising exposure is concentrated on its on going public in 2012.7 In 2017, Snapchat
could be different.”5 newsfeed, this research suggests that there touted this metric on an investor road
With this in mind, the MRC guidelines are contexts for which use of a lower “view- show in advance of the company’s initial
allow for the separate reporting of a met- ability” threshold for mobile could apply. public offering in March. Why the empha-
ric called “subsecond impressions” for Opinion justifiably might vary on which sis on daily active users when monthly
mobile-display impressions that meet pixel thresholds are most appropriate to use in active users always will be a larger num-
in-view criteria for more than half a second which contexts. A lack of consistent appli- ber? It gives these large digital-media pub-
but less than one second. This alternative cation of mobile viewability thresholds lishers a method to tout their scale in a way
definition was presented to “facilitate the nevertheless can mean added friction in that is comparable with television.
buy/sell parties’ abilities to recognize any mobile advertising measurement. Television ratings are based on the
value they may choose to assign to these average-minute audience for a given net-
impressions, while also (recognizing) they RELEVANT MOBILE METRICS work or program; the number that an
do not meet the requirements to qualify as Daily versus Monthly Reach advertiser buys reasonably estimates the
Viewable Impressions.” As the newest of the major media plat- number of people with the opportunity to
forms, mobile traditionally has been see a given advertisement. The monthly
thought of as a reach-extension medium. active-user metric is a reasonable standard
4 “MRC mobile viewable ad impression measurement
guidelines.” (2016, June 28). Retrieved June 9, 2017, from Recent data indicate that this thinking is for digital, given that many campaigns run
Media Ratings Council website: http://www.mediarating- naïve, however, because mobile is exceed-
council.org/062816%20Mobile%20Viewable%20Guide- 7 Constine, J. (2012, July 26). “Facebook Q2 user stats:
lines%20Final.pdf. ingly capable of demonstrating substantial 955M monthly active users, 552M dailies (and 543M
5 Schiff, A. (2016, April 1). “Mobile viewability stand- monthlies on mobile).” Retrieved June 9, 2017, from Tech-
ards are about to get real.” Retrieved June 9, 2017, from 6 “The value of video for brands.” (2015, March 17). Crunch website: https://techcrunch.com/2012/07/26/
Ad Exchanger website: https://adexchanger.com/mobile/ Retrieved June 9, 2017, from Facebook website: https:// facebook-q2-earnings-and-stats-revenue-1-18b-955m-
mobile-viewability-standards-get-real/. www.facebook.com/business/news/value-of-video. monthlies-552m-dailies-543m-mobile-monthlies/.

2 JOURNAL OF ADVERTISING RESEARCH September 2017


What’s Wrong with Mobile Advertising Metrics? thearf.org

today, and their ability to deliver massive


daily audience reach depends significantly
on mobile usage. In March 2016, 75 percent
of Facebook time and 69 percent of You-
Tube video-viewing time occurred on
mobile. Desktop viewing was unremark-
able by comparison. Less surprising were
the viewing-time data for mobile app
champions Instagram (99 percent) and
Snapchat (100 percent; See Figure 2).
In addition to delivering reach very
quickly, the fact that video advertising is

Figure 2 Viewing Time across Four Digital Channels in March central to each of these platforms means
they offer similar engagement benefits to
2017 television advertising. Messages are com-
Source: comScore Media Metrix Multi-Platform and Video Metrix Multi-Platform, United
States, March 2017 municated effectively through the sight,
sound, and motion that video conveys. To
achieve true comparability with television,
however, digital media also must align
on the right metrics. Given the habitual
engagement that occurs on mobile, daily
reach is an increasingly relevant metric.

Target Reach Efficiency


Mobile advertising has many benefits over
desktop when it comes to delivering cam-
paign performance. The authors analyzed
14 brand-advertising campaigns, each with
both a desktop and a mobile component.

Figure 3 Average In-Target Reach and Invalid Traffic Rates for They found that mobile advertisements
performed better at reaching their tar-
14 Brand Campaigns in 2016 get audiences and were significantly less
Source: comScore custom digital-advertising campaign analysis, United States, 2016
affected by invalid traffic (See Figure 3).
Target reach efficiency is all the more
for 30 days, but it is not comparable to how for certain digital publishers. It ultimately significant when one factors in mobile’s
advertisers think about their television- concluded, “Why focus on daily metrics? strength among younger audiences, such
advertisement buys. Not many digital pub- Because Snapchat is not just interested in as the coveted 18- to 34-year-old demo-
lishers can boast the daily audience scale to grabbing digital-marketing dollars — it graphic. In fact, this segment now spends
compete with large prime-time advertise- wants TV money as well.” 8
more time on mobile (23.1 billion hours)
ment buys, but Facebook, Snapchat, and Facebook, YouTube, Instagram, and the than watching live television (19.1 billion
others do, and the daily active-user metric fast-emerging Snapchat are among the hours), which underscores mobile’s impor-
allows them to compare reasonably against largest and highest-engagement brand- tance for marketers seeking to reach these
television in the process. advertising platforms in digital media valuable consumers (See Figure 4).
The Ringer, a website launched in 2016 by Strong campaign performance metrics
former ESPN columnist and podcaster Bill 8 Luckerson, V. (2016, November 10). “Daily active users is likely contribute to mobile advertising’s
tech’s new most important metric.” Retrieved June 9, 2017,
Simmons, examined the reasons behind this proven effectiveness in relation to desk-
from the Ringer website: https://theringer.com/daily-active-
shift toward the daily active-user metrics users-is-techs-new-most-important-metric-9cfd89b261fd. top advertising. Across a compilation of

September 2017 JOURNAL OF ADVERTISING RESEARCH 3


What We Know About mobile media and marketing

their own media silos and evaluated in the


same way. Although any measurement is
better than no measurement, this approach
virtually ensured that media allocations
were suboptimal in the context of meeting
their reach and frequency objectives.
comScore recently analyzed the results
of several cross-platform advertising cam-
paigns to understand how digital advertis-
ing—and mobile specifically—contributed
to incremental lift in target reach beyond
the television campaign on its own. The
Figure 4 Total Hours Spent (in Billions) by Medium Among 18- to majority of the campaigns devoted less
than 2 percent of their impressions to
34-Year-Olds in the Fourth Quarter 2016 mobile, and none saw incremental lift in
Source: comScore Media Metrix Multi-Platform and Xmedia (custom), United States, fourth
quarter 2016 reach of more than 1 percentage point. The
minority of campaigns that devoted more
than 10 percent of their impressions to
mobile increased their target reach by more
than 10 percentage points versus television
alone. All of these campaigns saw their tel-
evision reach curves flatten considerably
during the second half of the campaign,
but those that invested in digital—and
specifically mobile impressions—saw their
reach continue to build throughout the full
duration of the campaigns.
Mobile advertising also has been shown
Figure 5 Brand Lift for U.S. Desktop and Mobile Advertising to drive incremental effectiveness in cross-
Campaigns 2014–2016 platform campaigns. The Advertising
Source: comScore Brand Survey Lift, United States, 2014–2016 Research Foundation’s “How Advertising
Works” cross-platform initiative showed
hundreds of digital-advertising campaigns The results run counter to conventional that study participants exposed to the same
measured by comScore on behalf of its cli- wisdom but nevertheless prove that mobile advertisement on television and mobile had
ents over the course of 2014–2016, mobile is an effective brand-advertising vehicle. a free recall of 62 percent and weighted pur-
advertisements outperformed desktop Advertisers must place more importance chase intent of 39 percent. This significantly
at every phase of the marketing funnel, on mobile for reaching their target audi- outperformed the effectiveness (52 percent
from awareness to favorability, likelihood ences in an effective manner, particularly free recall and 28 percent weighted pur-
to recommend, and purchase intent (See if those audiences are younger. chase intent) for those exposed to the same
Figure 5). These metrics, which used sci- campaign twice on television (Snyder and
entific methods to compare a demographi- Incremental Lift in Cross-Platform Garcia-Garcia, 2016). This suggests a syn-
cally and behaviorally similar test group Campaigns ergistic effect to exposure across multiple
of advertising-exposed individuals with a More recently, brand marketers have begun advertising media.
control group of nonexposed individuals, to measure the delivery of their cross- The same study also showed that return
begin to account for advertising effective- platform campaigns to get a holistic under- on investment increased with the number
ness more properly than more rudimen- standing of how their campaign performed. of platforms on which a campaign was
tary viewability and click-through metrics. In the past, campaigns were planned in delivered, with a three-platform campaign

4 JOURNAL OF ADVERTISING RESEARCH September 2017


What’s Wrong with Mobile Advertising Metrics? thearf.org

driving 23 percent higher return on invest- that matter, rather than merely the ones that
Andrew Lipsman is senior vice president of marketing
ment than a single-platform campaign. are most available. Mobile click-throughs
and insights at comScore, covering multiple
Each of these research efforts highlights the long have worn out their welcome and
industries and overseeing the company’s marketing
value of adopting cross-platform advertis- should be replaced with consistent meas-
communications, insights, and thought leadership
ing strategies and the need to measure urement of mobile branding and sales-lift
initiatives. He began his career at the NPD Group,
their impact with traditional campaign effectiveness. Mobile viewability ought to
where he worked with clients such as Kraft Foods and
delivery and effectiveness metrics. be anchored to whatever minimum view
Johnson & Johnson. Lipsman specializes in social
time drives meaningful lifts in brand met-
media, e-commerce, online video, digital advertising,
RETHINKING ADVERTISING METRICS rics, rather than to any previous standards
and multiplatform marketing and has contributed to
Mobile is an extraordinary branding vehi- for digital advertising on desktop. Monthly
the Journal of Advertising Research.
cle if used properly in the cross-platform audience numbers, in addition, should be
context. It offers both scale and efficiency supplemented with daily audience numbers
in reaching mass audiences and has proven to improve comparability with television on
itself to be an effective medium. In the con- the ability to deliver reach efficiently. REFERENCES

text of cross-platform advertising, mobile


Fulgoni, G. M., and M. P. Mörn. “Whither the
is the key to efficient allocation of media AUTHORS’ BIOS
Click? How Online Advertising Works.” Journal
to maximize target reach. Most advertisers,
Gian M. Fulgoni is cofounder and chief executive officer of Advertising Research 49, 2 (2009): 134–142.
however, still have not come close to lever-
of comScore, Inc. Previously, he was president and chief
aging its full potential (See “How Brands
executive officer of Information Resources, Inc. During a Snyder, J., and M. G arcia -G arcia . “Advertis-
Are Getting Smarter in Mobile Marketing,”
career of more than 40 years at the c-level of corporate ing across Platforms: Conditions for Multimedia
page tk).
management, he has overseen the development of many Campaigns—a Method for Determining Opti-
The key to reaching that potential is in the
innovative technological methods of measuring consumer mal Media Investment and Creative Strategies
use of consistent metrics. Advertisers only
behavior and advertising effectiveness. He is a regular across Platforms.” Journal of Advertising Research
will be able to measure their advertising
contributor to the Journal of Advertising Research. 56, 4 (2016): 352–367.
outcomes accurately according to metrics

September 2017 JOURNAL OF ADVERTISING RESEARCH 5

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