Published on April 13, 2013
Over 100 Years of Advertising Measurement (What worked and what didn’t) [1906-2013]© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
“Sometimes, in order to know where you’re going, you need to understand where you came from”. “You can’t manage what you don’t measure”.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. W. Edwards Deming
1906 – Print Kellogg’s print the world’s first full page press advert. It soon becomes a case study for advertising success. As a direct result of this one advert in Ladies Home Journal, orders of Corn Flakes increase from 500 cases per day to over 2,900. Metric: Journal Subscribers v Sales. Methodology: Kellogg’s weren’t doing any other advertising so attribution was easy, although (like today) this struggles to take into account word-of- mouth recommendations.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 3
According to advertising commentators, when the Ford Model T* launched in 1908 as “the world’s first affordable car”, the increased traffic became responsible for the explosion in roadside advertising.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 4 * Any colour as long as it is black.
1912 – Outdoor The world’s largest billboard is built in Times Square, New York measuring 32m x 15m. Ad men claim that billboards are the ultimate ad format for increasing brand awareness. Metric: Traffic (”Eyeballs”). Methodology: A very rough manual footfall estimate of the number of people / traffic that passes through Times Square. Not much has changed in billboard measurement over the last 100 years.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 5
1922 – Radio Alvin. T Fuller is the first person to purchase time on a radio station in exchange for mentions. Metric: Number of Listeners. Methodology: Arthur Nielsen acquires Audimeter in 1936 and creates Nielsen Radio Ratings in 1942 to measure audience demographics from devices in 1,000 homes.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 6
1939 – Direct Mail Advertising agencies start to appear everywhere. The founder of one of the most successful ones, David Ogilvy starts out in business by spending $500 on postcards to advertise a hotel for his first client. He mails them to everyone in his phone directory. Direct response advertising is born.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 7
“The Best Advertising Isn’t Advertising”.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Ajaz Ahmed
Copywriters should spend 60% of their time writing the headline”. David Ogilvy© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
10© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
In 1941 the world’s first TV ad was run by watchmakerBulova on New York station WNBT. They paid $9 for a10 second spot during a primetime Brooklyn Dodgersv Philadelphia Phillies baseball game.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
1960 - TV For the world’s first televised presidential debate, advertising students at Harvard University predict that the average attention span of the American public is 42 seconds. JFK wins the debates with responses broken down into 42 second sound-bites. Similar research was done in 2008 for Barack Obama’s campaign. The average attention span had dropped to less than 5 seconds Obama’s simple “Change” and “Yes We Can” campaign was born partly as a result of© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. this research.
1971 – TVCCoca-Cola release theiriconic “I’d like to teach theworld to sing” TVcommercial (TVC).Sales explode and over thenext 9 years Coca-Colaexpands it’s operation into163 countries.Metric:Neilsen Ratings Points / ShareMethodology: Viewing habitsof households are measuredusing TV set meters. Accuracyis difficult since only 0.2% ofhouseholds are measured.Adobe Confidential.© 2013 Adobe Systems Incorporated. All Rights Reserved. 13
1994 – Display Three years after the internet is “invented” by Sir Tim Berners-Lee, US Telecoms company AT&T run the world’s first digital display advert (above). Metric: CPM (Cost per mille) Methodology: Adverts are sold on a CPM basis by calculating the cost of an ad divided by the audience size. Analysts measure the amount of impressions served, even though a 14© 2013 Adobe may Incorporated. All Rights Reserved. or clicked on it. user Systems not have seen Adobe Confidential.
By 2000 consumers are seeing to up to 10,000 advertising messages everyday.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 15
2000 – AdWords Google launches AdWords in 2000 with 350 customers. By 2012 it is their main source of revenue generating USD$42.5bn. Metric: CPM or CPC (Cost per click) Methodology: CPC advertisers bid on keyword phrases relevant to their target market and only pay when an ad is clicked on. Many advertisers struggle to understand what happens next once Google has delivered that customer to your site.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 16
All the data ever collected in the world up until 2003 is now reproduced every 48 hours.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #BigData
2003 – Acquisition The need to track acquisition metrics became more important once CEO’s started demanding conversions instead of just brand awareness or impressions. “How many customers actually bought anything as a result of this campaign?” As a result, advertising success metrics become more credible in the boardroom because as they are calculated upon conversations, rather than leads*. Metric: CPA (Cost per Acquisition) Methodology: Ad Campaign Cost / [Impressions x CTR x Paying Customers] * CPL (Cost per Lead) is a variation of CPA.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
2006 “Social” Media The term “Cost per engagement” is trademarked in order to attempt to bring more credibility and accountability to ad units. Social advertising takes off in 2008 when Facebook launches engagement ads. Facebook user growth explodes from 150m - 450m during the next 12 months. Metric: CPE (Cost per Engagement) Methodology: Unlike CPM or CPC, CPE impressions are free. Advertisers only pay for CPE ads when a user clicks on an ad. Note: In some instances, “Engagement” is classed as someone simply hovering over an ad to open up the full creative.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 19
Starbucks produce the first promoted tweet in April 2010. Some reports claim that Starbucks is “the most connected brand in the world” slightly ahead of Coca-Cola, Disney and Red Bull.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 20
2010 – Social ROI As brands start investing significant amounts of money in social media campaigns, marketers and executives debate social ROI. Many (wrongly) believe that it is impossible “to put a value on a relationship”. Some agencies even suggest that the average value of a “like” is $136.38! Metric: ROI – Return on Investment Methodology: (Revenue - Investment) / Investment *100© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 21
2010 – PinterestPinterest launched as a closed beta in2010. By 2012 it was driving more trafficto websites than LinkedIn, Twitter,Google+ and YouTube combined.Pinterest is now valued at $2.5bn havinggrown from 5,000 users to 48.7m in justunder 3 years. High click-through-ratesattract brand advertisers, but threaten todilute what made Pinterest so special tousers in the first place.Metric: CTR – Click-through-RateMethodology:(Clicks on website / Impressions) x 100© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
“It’s not survival of the fittest anymore, it’s survival of the fastest”. #DigitalDarwinism @BrianSolis© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. This evolution is (obviously) not endorsed by Adobe… #JustSayin
2012 – Social NPS As the boundaries between marketing and customer service become increasingly blurred within social media channels, measuring customer satisfaction (instead of ROI) becomes increasingly important. This is especially true for brands wanting to measure the impact of social media, but who are not able to directly link social activity to sales. Metric: NPS (Net Promoter Score) Methodology: Measuring customer satisfaction in order to calculate brand loyalty, is usually done in social media via a survey. Consumers are usually rated on a scale of 1-10 and ranked as promoters or Heineken believe that the detractors. majority of their 12.4m Users are incentivsed to take a Facebook or Twitter Facebook fans are 64% more survey (often anonymously), asking customers, fans likely to recommend them to and non-customers of certain brands, how likely they© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. would be to recommend those brands to their friends. their friends in the pub.
FourSquare was launched in 2009 by DenisCrowley and Naveen Selvadurai at SXSW.It now represents 1.3m businesses andboasts 33m users who have “checked-in” tothose businesses 3.5 billion times. © 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 25
2012 – Check-In’s While the future of check-in services like 4SQ and the likelihood of users checking-into venues is still a top of hot debate, driving a customer into a physical location as a result of a social media interaction is still the ultimate goal and dream success metric for many social brands. Metric: Check-In’s / Coupon Redemption Methodology: Analytics from your preferred location-based marketing service will help you measure the success of your social activity. The most savvy brands are able to match up online data, with existing customer data, and match it up against to social interactions.© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
The Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.in 2012 © 2013 Digital Marketing Landscape
2013+ The Future? Now that Facebook own face-recognition and location based technology via their acquisitions of Face.com and Gowalla it will be interesting to see how they encourage global brands to engage with consumers on a local scale… Some reports claim that uber-social brands like Starbucks are trialing technology that automatically check-in opt-in users via face recognition when they enter a store, sends their favourite drink order to the barista, and contactless payment helps them be in and out of the store in seconds. Metric: ”Door Swingers” Methodology: Facebook will be a major player in this space, but expect to see major partnerships with Square – helping local businesses track the spending habits and online behaviour of their© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. most loyal customers, by accessing their social profiles.
Need More Inspiration? VC / Angel Investors Chris Sacca & Kevin Rose (Co-Founder of Digg) discussing digital advertising© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 29
Want to see what the future holds for social businesses? Check out http://www.adobe.com/uk/prod ucts/social.html @JeremyWaite Head of Social Strategy, Adobe EMEA© 2013 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
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