The MRC Audit Process

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Working Together to Address a
More Complex Media
Environment
Prepared for: Chilean Media Industry
July 2012
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Agenda
Meeting Purpose
 MRC Background
 Standards Setting
 International Work
 Audit and Methodology Issues
 Q&A
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Meeting Purpose
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Purpose
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In the last several years, the media environment, enabled by new
consumer access and technology, has become increasingly
complex. This has led to:
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Increased needs for standards in measurement – metrics, approaches,
greater detail, etc.
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Growing support for MRC functions; other US associations seeking MRC’s
leadership and assistance; for example “viewability”
Significant increases in audit requests
Some recognition of MRC internationally and requests for our involvement
in other countries, mostly driven by multi-national MRC members and
several measurement services
The developing need to assess audiences across media types
Increased need for education to promote quality media measurement
practices
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Purpose
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We are here today to introduce you to MRC, our structure, mission
and the scope of our work.
We want to give you a sense of the issues that are consuming our
energy today.
We want to make sure you understand the resources available to
you – Standards, Auditing, etc.
We ask you to consider participating in the MRC’s
International activities.
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MRC Background
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History and Mission of the MRC
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U.S. Congressional Hearings Held in 1963-64
System of Self Regulation Established
Founded as the “Broadcast Rating Council”
Not-for-Profit Entity
Voluntary Process for Measurement Services to:
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Supply Complete Information to the MRC
Comply with MRC Minimum Standards
Conducted the Service as Represented to Clients
Submit to Annual Audits
Pay for the Audit Costs (internal & external)
Confidential Process
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Originally Recommended by the U.S. Congress
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MRC Mission Statement
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To secure for the media industry and related
users audience measurement services that are
valid, reliable and effective;
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Set Standards; and
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Conduct Audits to Verify Compliance with
Standards.
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Resources
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MRC
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George Ivie, Executive Director (1/2000)
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Anthony Torrieri, SVP, Associate Director (3/2003)
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8 years as VP of NAB Research, 9 years with TV Guide, Accounting background.
Jim Peacock, Consultant
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Over 25 years of Agency experience. Extensive buyer-side knowledge and focus.
David Gunzerath, SVP, Associate Director (7/2007)
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Former Ernst & Young Partner, Performed MRC Audits for 16 Years, Information Systems Focus.
Over 30 years experience in media research. Fifteen years Head of Research at Arbitron.
MRC Membership – Various Audit Committees
Technical Committees
Independent CPAs
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Ernst & Young – Specialized Team
PricewaterhouseCoopers (Digital Audits Only)
Deloitte & Touche (Digital Audits Only)
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Significant Growth and Complexity
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Key Statistics in U.S.
1960s
1990
2000
Today
MRC Members
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15
48
145
Audits
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5
6
75*
* Includes >50 Digital
Audits; Excludes
International Work
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MRC Member Organizations
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MRC-Audited Products – U.S.
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Accredited
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ACT1 Radio TPP
Arbitron
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Local Diary Service, Max, County Coverage, CSAR
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PPM – Atlanta, Cincinnati, Houston, Kansas City,
Milwaukee, Minneapolis, Philadelphia, Phoenix, St. Louis
Internet Audits
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ComScore Direct
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Nielsen Online Campaign Ratings
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Omniture Adobe Compliant Traffic Report
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Quantcast Quantified Publisher
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Visible Measures
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Ad-Serving: Cox Digital Solutions, AdTech, CBSi, Univision,
Yahoo!, Disney, Atlas, DoubleClick (DFP, DFA), FreeWheel,
GLAM Media, Google, LiveRail,Turner, AOL, MSN, 24/7,
MediaMind, RealVu, Vindico, PointRoll, Auditude
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Clicks: Google, Yahoo!, MS adCenter, MS Media Console,
Cox Digital Solutions
KMR MARS
Ibope Puerto Rico (Mediafax)
Mediamark Research National Syndicated Study
Media Monitors Radio Spot Service
Nielsen Media Research
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National – NPM, Average Commercial Ratings MIT, NPower
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Local Set Meter Services, LPM Markets, Puerto Rico LPM
Scarborough
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Simmons National Consumer Study
TGI Puerto Rico
Triton Digital Streaming (Ando Media)
In-Process
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Internet Audits
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Google AdPlanner,Google DART Mobile, Digital
Envoy, Quova, Adap.TV, TidalTV, Videology
(TidalTV), Telemetry, DoubleVerify, Vizu, AdSafe
Arbitron PPMs
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Austin, Baltimore, Charlotte, Chicago, Cleveland,
Columbus, Dallas, Denver, Detroit, Greensboro,
Hartford, Indianapolis, Jacksonville, Las Vegas, Los
Angeles, Memphis, Miami, New York, Nashville,
Norfolk, Orlando, Pittsburgh, Portland OR,
Providence, Raleigh, Riverside, Sacramento, Salt
Lake City, San Antonio, San Diego, San Francisco,
San Jose, Seattle, Tampa, Washington DC, West
Palm Beach
BlackArrow
comScore
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Media Metrix, Video Metrix
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Campaign Essentials
Mendelsohn Affluent Study
NEC Display
Nielsen Local TV Diary Service, STB Data
Nielsen NetView, NetView Hybrid
Rentrak TV Essentials
SQAD TV Costs
Other – Ancillary Data
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Claritas, Sample Frame Vendors
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Summary of Television Initiatives
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Traditional Auditing
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UEs
National Orientations
Local Orientations
Enrichment of Data Beyond Households (Colleges, Group Quarters, Bars,
Events)
Emerging Perspectives – Driven by Changes in How Consumers Interact
with Television
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Return Path Data, Hybrid/Integration Methodologies
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Seeking more stability and better insight into niche populations
Fusion
Online/TV Cross-Media (GRP) Orientations
Monetization of Authorized and Unauthorized Video
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Meter Technologies
Audited
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Television:
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Television/Radio/Audio:
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AGB Tech – TVM2 and TVM5 (Mexico)
Nielsen International – Eurometer (Ecuador, Costa Rica,
Panama, etc.)
Nielsen Media – AP Meter and Mark II (U.S.)
IBOPE International – DIBII and DIBIV (Brazil, etc.)
Telecontrol – TC7 and TC8
Arbitron – PPM (Canada, U.S.)
Internet:
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Nielsen Online – NetView (PC and MAC OS)
comScore Media Metrix – Cproxy
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Standards Setting
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Industry Standards are Critical
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MRC Mission – “Set Standards”
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Stop Relying on “Custom Criteria”
Key Buyer Concerns
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Consistency
Accuracy
Enhanced Trust
We have always undertaken these activities, but there is substantial
increased demand/need across all media types; primarily driven by
digitalization.
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The MRC Minimum Standards
(See www.mediaratingcouncil.org for detail)
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Originally Completed in 1964
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Kept up to date by MRC Board
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Components:
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New BCP Standard Rolling Out in 2012
A: Ethical and Operational Standards
B: Disclosure Standards
C: Electronic Delivery/Software Standards
Key Audit Benchmark
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Existing Standards
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MRC Minimum Standards
 As Supplemented by Industry Specific Guidance
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NAB, ARF, IAB, ESOMAR, etc.
MRC Media Monitoring Standards
IAB-Specific Guidelines (Written by MRC)
 Impressions
 Display, Video, Rich Media, RIA, Process Addendum, AutoPlay Video
 Clicks
 Audience Reach
 In-Game Advertising
 Ad Verification Services
MMA/IAB Mobile Web Guidelines (Written by MRC)
Other
 Data Integration (MRC), Outdoor (MRC, ESOMAR, etc.)
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Currently Under
Development/Consideration
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Set-Top-Box
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Partner: NCC, MVPDs
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Mobile
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Partners: MMA, IAB, GSMA
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Partners: IAB, WOMMA
Digital Audio Streaming
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Applications (In-Process; nearing completion)
Messaging (Planned)
Social Media
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Data Accumulation (draft posted on www.mediaratingcouncil.org)
Partners: IAB, RAB, MMA, Others?
Media Mix Modeling
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Partners: MPA, Others?
Under Consideration
SIGNIFICANT GROWTH IN DEMAND FOR THIS ACTIVITY
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International Activity
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MRC International Activity
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MRC Does Not Accredit services outside
U.S.
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Rather, On Request MRC Serves as a
Consultant on Rating-Service Audits which:
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Use MRC Minimum Standards as benchmark
Are conducted by experienced MRC CPA auditors
Have reasonable transparency for results – Important
Have an appropriate local Committee present
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International Audits
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Television:
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Radio:
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BBM Client Committee – Canada
Radio Committee – Peru
Print:
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ABAP-Redes – Brazil
BBM Client Committee – Canada
International Audit Committee (Cable) – Colombia, Argentina
Client Committee – Costa Rica
Technical Commission – Ecuador
CIM – Mexico
Client Committee – Panama
CUSEA – Peru
Valida – Chile
CUSEMI – Peru
Internet:
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Miaozhen Systems Audit Committee – China
Note: Puerto Rico services receive full U.S. accreditation processes.
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International Committee
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Committee Role
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Began Activities in 2011
International Committee (full operating group) has the following
administrative functions:
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Establish international audit priorities including new audits
Assist with local-user and local-committee outreach
Determine need for and priority of additional Standards
Develop plan to promote international best practices
Meet annually in person, more often via teleconference
International organizations and media companies can become
members to allow input in Committee functions and audits
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Audit Related Functions
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Specific “Audit subcommittees” formed for each
participating international service
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Would review new-audit scope and specifications
Would then review audit results in detail
Committee assists MRC Staff and provides guidance on
recommendations for the audited service
Work with measurement services on creating of audit-related
action plans
Would meet in person (and phone) each time a relevant audit
report is issued
Key Focus Areas: LATAM and Digital
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Much of our historical work has been in these areas
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To be clear…
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We are NOT seeking to replace local audit committees;
we want to work cooperatively with these committees
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We are NOT seeking to force U.S. policy on others; we
believe we can learn from each other
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We are seeking to promote some fairly important
attributes, we believe are of common benefit:
Attributes Promoted
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Transparency of Methodology with Customers
Disclosure of Operating Performance of Service to Customers, e.g.,
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Response Rates
Standard Errors
Sample Distribution and Representation
Error Disclosure Policy
Disclosure of Sampling and Non-Sampling Issues
Sound Internal Controls, Documentation, Policies and Procedures
Security of Panel
Verification of Methodology, Calculations, Weighting/Projections
Building Process
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We are actively seeking members of the International
Committee
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Who are we looking for:
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Common Interest in Quality
Promoting Good Research, Not Business Interest
Annual Dues -- $12,500, with 3-year Commitment for Media
Entity; TBD for a Country Audit Committee
Strict Commitment to Non-Disclosure
Willingness to Actively Participate
Types of Issues Addressed
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Sample of Key Issues -- Traditional
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New Technology Challenges
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Sample Frame Coverage; Probability Methods, etc.
Data Collection Quality
Content Source Confusion
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Digital
Print
Consistency of Ad Content
Response Rates
Sample Distribution/Sample Sizes/Reliability
Race/Ethnic/Young Representation
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Consumer
Measurement
Recruitment Techniques
Accuracy of Universe Estimate Data
Editing Quality / Ascription
Cross-Media Comparability
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Sample of Key Issues – New Media
Ad-Centric or
Site-Centric
(Census)
User-Centric
(Panel)
Common
and Hybrid
•Users vs. Computers
•Cookie Deletion
•Sufficiency of Client Side Counting
•Auto-Refresh, Non-Human Traffic
•Internal Traffic
•In-Session Gaps
•New Types of Usage, WAP/Mobile, etc.
•International Traffic
•Cross Domain I-Frames
•Viewability
•Panel Representation
•Meter Coverage
•Capturing All Access Locations
•Metering All Computers of Panelists
•Initial Demo Data Collection
•User In-Session Identification
•Sample Sizes, Standard Errors
•Non-Response Levels
•Internal Controls
•Editing, Calibration, Weighting
•Transparent Methodology
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Thank You!
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Follow-up contact or questions are welcome:
George Ivie
Executive Director, MRC
givie@mediaratingcouncil.org
+1 (212) 972-0300
http://www.mediaratingcouncil.org
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