Numbers, Please In the Digital World, Not Everything That Can Be Measured Matters How to Distinguish “Valuable” from “Nice to Know” Among Measures of Consumer Engagement Gian M. Fulgoni INTRODUCTION … along with harder measures of sales lift—often comScore, Inc. In 2006, the Advertising Research Foundation are used to measure consumers’ engagement with gfulgoni@comscore.com (ARF) provided one of the first marketing-focused digital advertisements. And they all still have definitions of “engagement” as “turning on a pros- value. pect to a brand idea enhanced by the surrounding But, the computerized nature of digital also context.” The phrase “turning on” would appear to means that many other engagement metrics—from encompass any communication from a brand that clicks, to viewability, to “Likes” and “Shares”—are improves consumers’ attitudes and sentiments or available today. The challenge for marketers is to that induces a positive change in consumer choice identify the metrics that matter to their return on in favor of the brand. advertising investment (ROI) versus those that 1 Some criticized the ARF interpretation as being either are nice to know or downright misleading. too broad for such an important indicator, but it has since morphed into multiple definitions, depending DIGITAL-ADVERTISING METRICS on the medium of context. Many are the result of Why the “Click” Matters Less the impact of the Internet, social media, and mobile One of the first measures of online engagement was devices on the nature and extent of communica- the “click” on a display advertisement, with the use tions between a brand and its consumers. of a computer mouse. Although click rates in the 2 Engagement no longer can be considered to be early days of online advertising reached levels of simply a one-way communication from a brand to 3 percent or higher—and it’s true that clicks remain the consumer. Instead, it now needs to incorporate meaningfully high for search advertisements— consumers’ ability to easily provide digital feed- average click-through rates for display advertise- back of their own—at scale and with the communi- ments today have dropped to an abysmally low cation being either positive or negative.3 level of 0.1 percent. Or, in other words, only one in From desktop/laptop computers to smartphones to tablets to game consoles, there are myriad ways a thousand advertising impressions in a campaign generate a click. for a brand to digitally engage with consumers. Further complicating the click credibility is that With each tool comes a different set of means to research has demonstrated the absence of any rela- measure that engagement. The traditional “softer” tionship between clicks and effectiveness (Fulgoni measures of advertising engagement—attitudinal and Morn, 2009). shifts in brand recall, likability, and purchase intent Despite the greater understanding we now have of the metric, many in the advertising industry still “The great brand engagement myth.” (2012, January 30). Retrieved November 13, 2015, from Marketing website: http://www. marketingmagazine.co.uk/article/1113464/great-brand-engagementmyth 2 “IAB digital ad engagement whitepaper: An industry overview and reconceptualization.” (2013, January 22). Retrieved November 13, 2015, from Internet Advertising Bureau website: http://www.iab.net/ adengagement 3 “How Brands Define Engagement.” (2012, August 29). Retrieved November 13, 2015, from Digiday website: http://digiday.com/brands/ how-brands-define-engagement/ 1 DOI: 10.2501/JAR-2016-008 use click-through rates as measures of engagement and effectiveness. In a 2014 survey4 of publishers, agencies, and advertisers, approximately four out of ten professionals said they used the click “always or most of the time” to measure the effectiveness Proprietary survey conducted by comScore in September 2014 for inclusion in a presentation at the IAB U.K. Engage 2014 Conference. 4 March 2016 JOURNAL OF ADVERTISING RESEARCH 9 In the Digital World, Not Everything That Can Be Measured Matters Only one in a thousand advertising impressions in-view to consumers—also has prompted in a campaign generates a click. Further advertisements are actually in-view. complicating the click credibility is that this concern has led to the suggestion that research has demonstrated the absence of any The industry’s accreditation group, the relationship between clicks and effectiveness. fied that as long as 50 percent of a display the measurement of how long in-view Sometimes referred to as “attention,” this is another valid engagement metric. Media Ratings Council (MRC), has speciadvertisement is in-view for at least one second (two seconds for a video advertisement) then the advertisement can be clas- of display advertisements. It’s likely that extremely important metric for driving simplicity, low cost, and speed are the driv- consumer response to advertising. ers of the continued use of clicks—which sified as being in-view. Some marketers and their agencies have criticized this definition as being far too is unfortunate in light of their lack of rel- How Viewable Is Your Ad? lax.7 A Millward Brown study showed that evance to advertising effectiveness. From a negative perspective, the very the impact of digital advertisements climbs Buyers and sellers of digital advertising nature of digital technology results in some sharply after the advertisement has been also use other engagement metrics. These unique impediments to any consumer in-view for some time,8 suggesting that a include engagement with digital advertisements, longer in-view definition might be more including low viewability and ad-blocking appropriate. • website reach Further complicating the situation is that software. Needless to say, if the advertisement in the case of video advertisements, meas- • time spent isn’t even in-view to the consumer, then urement of consumer engagement encom- • demographics. engagement can’t occur. Digital in-view passes not only whether the advertisement • number of page views rates (i.e., the percentage of advertising was ever seen and how long it was viewed Although these certainly are relevant to the impressions in a campaign that are in- but also whether or not the audio was size and quality of the audience reached, view to the consumer) often are found to switched on.7 Speaking at the Internet the relationship of these measures to be lower than 50 percent (mainly because Advertising Bureau’s (IAB) Annual Lead- advertising engagement and the effective- the user doesn’t scroll down the page ership Meeting in February 2015, CBS ness of brand advertising carried on the far enough to see the advertisement or Interactive Chief Revenue Officer David site is tenuous at best. because the “viewer” is a fraudulent com- Morris commented that the introduction puter with no human user). of viewability had been somewhat chaotic By contrast, GfK researchers have dem- With that evidence in hand, it’s not for the industry, both in terms of measur- surprising to see leading advertisers ing the MRC’s standard effectively and the • attitudes toward a website, such as Unilever and the world’s largest confusion the concept itself has inflicted on • motivations for using it, and media buying agency, GroupM, demand- the marketplace.7 • overall opinion of the site ing assurances from publishers that their onstrated that consumers’ advertisements are actually seen.6 are the most relevant metrics that need to The realization that the metrics provided be taken into account in gauging engage- by ad servers were misleading—and that ment with brand advertising.5 In par- many digital advertisements were not ticular, trust in the site appears to be an “WPP And Unilever Video Woes Mean Human Viewability Metrics Are A Must.” (2015, September 17). Retrieved November 13, 2015, from MediaPost website: http://www. mediapost.com/publications/article/258504/wpp-and-unilever-video-woes-mean-human-viewability.html 6 “Measuring Engagement: A White Paper.” Association of Online Publishers. 5 10 JOURNAL OF ADVERTISING RESEARCH March 2016 Marshall, J. “Marketers Push Back on MRC Ad Viewability Standards.” The Wall Street Journal, February 25, 2015. Accessed on November 13, 2015, at http:// blogs.wsj.com/cmo/2015/02/25/are-online-ad-viewabilitystandards-failing/ 8 “The Value of a Digital Ad: How Delivery and Brand/ Sales Effectiveness Can Drive Digital Advertising ROI in a Cross-Media World.” Millward Brown. Accessed on November 13, 2015, at https://www.millwardbrown.com/ Insights/MBArticles/Value_Digital_Ad/default.aspx 7 In the Digital World, Not Everything That Can Be Measured Matters thearf.org The Battle Against Ad Blocking It’s too early to predict how the adver- the impact of a marketer ’s outbound As advertisers seek more effective ways to tisement blocking issue will be resolved, communications. engage with consumers and measure that but because it clearly represents a serious The other side of the social coin is that engagement, their efforts are hampered by obstacle to the ability of advertisers to com- positive consumer engagement on social ad-blocking software.9 About one in ten municate directly with online users—and media can yield impressive results. Brands U.S. consumers have ad-blocking software to be able to measure that engagement— can use paid or organic communications installed on their computers; the ratio is we can expect it to get intense industry to reach their target segments and then even higher in some other countries. attention. benefit from any engagement (e.g., “shar- 10 Advertisement blocking is especially ing”) that subsequently occurs and which popular on mobile devices, where slow SOCIAL-MEDIA METRICS load times are particularly annoying to One of the best examples of how digital Warc, the London-based publisher of users and the slow loading of advertise- technology has changed brand engage- the Journal of Advertising Research, awards ments can be considered to increase the ment from one-way to two-way commu- annual prizes for the best examples of how cost of consumers’ data plans. nications—and the related metrics—is the brands have successfully incorporated impact of social networks. social engagement into their marketing Advertisement blocking is a problem extends persuasive reach. across any digital platform, including the Approximately 50 percent of consum- strategies (Fulgoni, 2015). Many of these viewing of video content. 11 Publishers ers say they use social media to post posi- successfully leveraged consumer engage- view its very nature as threatening the tive or negative brand comments (Sexton, ment with a wide variety of branded con- “unspoken agreement” between content 2015)—although criticisms seem to attract tent that led to sharing and a dramatic providers and consumers that advertising the most attention—on a multitude of increase in reach. is necessary because it pays for the content social sites ranging from Facebook to Twit- Brands have learned that they can maxi- consumers enjoy for free. Some have sug- ter to YouTube to Yelp that are viewed by mize the impact of their social-marketing gested such solutions as hundreds of millions of people. programs by leveraging a framework that Measurement of the number of postings helps them move beyond a measurement • producing more advertisements that and whether they are positive or negative, of the simple number of fans/followers consumers actually want to view while how many times shared, and how many or “Like” metrics. These metrics haven’t simultaneously reducing ad clutter; users reached, have become important yet been proven to drive positive business metrics of social engagement with brands results, whereas measures of actual shar- that are initiated by consumers. ing of content have been shown to deliver • insisting that a site’s content not be made available unless the consumer accepts the advertisements or that sites install Whether simply an extension of human measurable marketing ROI.12 nature (or the nature of those most vocal That said, it’s also apparent that some on social), social networks are inun- sharing metrics for organic content (as dated with negative comments regarding opposed to the sharing of paid content) • using more native advertising that isn’t brands—and the numbers are increasing are problematic. This occurs because of delivered by an ad server and therefore every day. The challenge for any marketer the difficulty of computing the true num- can’t be blocked; is to respond to negative engagement in a ber of unduplicated people who ever saw timely manner. Unfortunately, it appears the content. software that recognizes and deactivates advertisement-blocking software; • taking legal action against the authors of the software. “Ad blocking unleashes anxiety across the ad industry.” Financial Times, October 5, 2015. 10 “The state of ad blocking.” comScore and Sourcepoint. Accessed on November 13, 2015, at http://sourcepoint.com/ comscore-and-sourcepoint-the-state-of-ad-blocking/ 11 “ TV networks confront ad blockers erasing their commercials online.” (2015, August 31). Retrieved November 13, 2015, from Advertising Age website: http://adage.com/ article/media/tv-networks-confront-ad-blocking-erasingcommercials-online/300143/ 9 that as many as 70 percent of companies Simply adding the number of follow- fail to do just that, thereby risking damag- ers of the person posting content assumes ing consequences (Sexton, 2015). that all saw the original post. In fact, that’s Organizations long have monitored frequently not the case, and such simple changes in brand equity that are driven math also fails to de-duplicate the same by their own marketing efforts. But it has become apparent that monitoring and responding in real time to inbound comments expressed on social media should be every bit as important as monitoring “The Power of Like 2: How Social Marketing Works.” (2012, June 12). Retrieved November 13, 2015, from comScore website: https://www.comscore. com/Insights/Presentations-and-Whitepapers/2012/ The-Power-of-Like-2-How-Social-Marketing-Works 12 March 2016 JOURNAL OF ADVERTISING RESEARCH 11 In the Digital World, Not Everything That Can Be Measured Matters people across followers. As a result, it’s very likely that the simple aggregation of followers will overstate the true number of people receiving the shared content by a The winners will be brands that are able to derive methods to measure and understand large amount. consumer demands for mobile engagement MOBILE-ENGAGEMENT METRICS and then deliver against those needs. Arguably the most significant change in consumer engagement has been the result of the use of mobile devices. Digital- Engagement with Mobile Ads • I want to know. media time in the United States has surged Certainly, advertising remains impor- • I want to go. recently—growing nearly 50 percent in tant in a mobile world, and the IAB has • I want to do. the past two years, with more than three- reported that mobile advertising is the fast- fourths of that growth directly attributable est growing format in the U.S. (up 73 per- These micro-moments can occur any- to the mobile app.13 cent in the fourth quarter of 2014 versus where—including in-store. Google has the prior year), accounting for 28 percent found that consumers often are more of all digital advertising dollars.14 attentive to their in-the-moment needs Mobile has grown so fast that it’s now the leading digital platform, with total activity on phones and tablets account- Research also has shown that the impact than they are loyal to a particular brand ing for 62 percent of all digital media time of advertising is surprisingly higher on or product. At the same time, they’re spent. It is important to note that apps— mobile than on desktop. This suggests attracted to those brands that best address which help make it easier for consumers higher consumer engagement because those in-the-moment needs. to visit and buy at websites—represent there is far less advertising clutter on Immediacy and relevance in an “I-want” the vast majority of digital mobile time at mobile, and advertisements can be deliv- world, therefore, would appear to trump 87 percent.13 ered closer to the actual point of pur- loyalty nowadays. The winners will be chase—further increasing relevance and, brands that are able to derive methods therefore, engagement and impact. to measure and understand consumer As the use of mobile devices has surged, so have the ways in which consumers can 8 engage with brands. Because of this, it’s The larger impact of mobile devices, vital for marketers to ensure they capture however, goes well beyond advertising. their “fair share” of consumers’ mobile They have allowed consumers to initiate engagement. engagement with branded content when- CONCLUSIONS ever and wherever they choose. There’s a Marketers have only scratched the sur- dizzying array of ways in which this can face of measuring new levels of consumer happen, which Google describes as “micro- engagement, given a digital marketplace • how much mobile time is spent on a moments.” These unfold through a variety that remains in flux. For digital advertisers, marketer’s own brand website versus of common “I-want” scenarios that help it’s clear that some of the metrics produced competitive sites; people take steps or make decisions such as by ad servers are problematic. In particu- Fundamental to this is the need for metrics that measure 15 • how much of that time is spent via the use of a mobile browser versus mobile app. demands for mobile engagement and then deliver against those needs. lar, the “click” on a display advertisement • I want to learn. has been shown to have no value in terms • I want to buy. of predicting effectiveness. Because of the extreme importance of app By contrast, the traditional met- engagement, any shortfall in consumer rics of attitudinal changes or sales lift downloading and use of a marketer’s app could be disastrous. “The 2015 U.S. Mobile App Report.” (2015, September 22). Retrieved November 13, 2015, from comScore website: http://www.comscore.com/Insights/Presentations-andWhitepapers/2015/The-2015-US-Mobile-App-Report 13 12 JOURNAL OF ADVERTISING RESEARCH March 2016 “IAB Internet Advertising Revenue Report, 2014 fullyear results.” (2015, April). Retrieved November 13, 2015, from Internet Advertising Bureau website: http://www. iab.net/media/file/IAB_Internet_Advertising_Revenue_ FY_2014.pdf 15 “Best practices: 10 ways marketers can compete for micromoments.” (2015, June 3). Retrieved November 13, 2015, from AdAge website: http://adage.com/article/digitalnext/ practices-cmos-advantage-micro-moments/298855/ 14 remain critically important and useful to marketers. Digital advertising also is muddled because of a lack of consensus between buyers and sellers regarding the basic definition of an ad impression in terms In the Digital World, Not Everything That Can Be Measured Matters thearf.org Mobile devices also allow consumers to engage so choose and in a plethora of different with brand content whenever they so choose with most of these mobile communica- and in a plethora of different ways. engagement opportunities, and because of ways. There is an immediacy associated tions that provides marketers with many this, brands need to be able to measure and address engagement “in the moment.” But the very nature of this far-reaching engage- of time in-view. Consensus on the issue social media also provides smart market- ment also means that measurement, for the might simplify matters. But given the abil- ers with the ability to engage directly with moment, is a work in progress. ity to measure optimal time in-view of an targeted consumers in many creative ways advertisement—and research showing that that result in amplification of persuasive impact increases with time in-view—it messages. would not be surprising to see advertisers But to reap the rewards of positive ROI demand paying only for those advertis- from social marketing, it’s clear that adver- ing impressions that are guaranteed to be tisers need to think beyond simple metrics in-view for a specific period of time that such as “Likes” or “Followers” that have they define. (For more on the topic of view- not been shown to be correlated with ability, please see “The Effectiveness of All improved sales and embrace more pow- Advertising Impressions vs. Only View- erful metrics such as “Shares.” However, able Impressions,” an award-winning case in computing the total number of people study by Adobe, on page 109.) reached by organic shares, it’s important Meanwhile, massive use of social media to de-duplicate the counts of followers and means that marketers no longer can think recognize that not all “Shares” are ever of engagement solely as a one-way com- seen by all followers. About the author Gian M. Fulgoni is cofounder and chairman emeritus of comScore, Inc. Previously he was president/ceo of Information Resources, Inc. During a 40-year career at the c-level of corporate management, he has overseen the development of many innovative technological methods of measuring consumer behavior and advertising effectiveness. Fulgoni is a regular contributor to the Journal of Advertising Research. REFERENCES F ulgoni , G. M. “How Brands Using Social munication from a brand to consum- Mobile devices represent the most Media Ignite Marketing and Drive Growth.” ers. The reality is that social media has important dislocation in the historical Journal of Advertising Research 55, 3 (2015): provided consumers with the ability to communication flow from brands to con- 232–236. impact a brand’s performance by provid- sumers. Not only does mobile usage now ing public feedback—positive or nega- account for the majority of time spent Fulgoni, G. M., and M. P. Morn.“Whither the tive—at scale. online but also apps dominate that mobile Click? How Online Advertising Works” Journal of Advertising Research 49, 2 (2009): 134–142. Because of this, metrics that measure time. And, under such circumstances, consumers’ comments on social networks understanding how consumers are using are important. Advertisers need to respond apps to interact with brands is vital. quickly to negative engagement or risk Mobile devices also allow consumers to financial damage. The good news is that engage with brand content whenever they S exton , D. E. “Managing Brands in a Prickly Digital World.” Journal of Advertising Research 55, 3 (2015): 237–241. March 2016 JOURNAL OF ADVERTISING RESEARCH 13