The Audit Bureau of the Future
Presentation: IFABC General Assembly, Rio Nov 2014
Carolyn Morgan @carolynrmorgan
Contents
• Trends in media consumption:
– Digital devices and internet access
– Changes in consumer behaviour
– Publisher reactions
– Advertising spend
• The buyers’ view
• Media Audit Bureau of the Future
– 7 steps to success
– Innovation case studies
• Summary and next steps
Mobile driving internet in LatAM, MENA, Asia
Mobile devices are changing consumer behaviour…
• Web browsing at home or travelling
• Multi-tasking while watching TV
• Watching video & catch up TV
• Important daily news source
• Growing e-commerce channel
Fastest mobile web growth in Asia, Lat Am, Africa
Time spent daily on digital video growing rapidly
Source: Nielsen
Mobile commerce growing steadily
Source: Global Web Index 2014/ World Newsmedia Network
Print publishers are now embracing digital channels
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Accept print is in long term decline
Online expands audience for major news brands
Digital edition revenues growing from a low base
Online advertising expanding
B2B media moving more rapidly to digital subscriptions
New digital revenues are (almost) replacing print declines…but
progress is uneven
• And digital entrants are gaining share
Magazine publishers grow digital rev to replace print
Source: FIPP, PWC
Pure play digital news media becoming a threat
Source: Reuters Institute
Mobile will drive digital ad spend, squeezing print
Programmatic advertising accelerating worldwide
Global media market trends: the view from 2014
• Mobile growth powering internet access
• Mobile driving change in consumer behaviour
– Multi-screen usage
– Digital video viewing
– M-commerce
• Publishers (almost) replacing print revenues with digital
• But digital native media squeezing traditional publishers
• Ad spend shifting to digital mobile
– Print decline faster: 20% by 2016
– Mobile ads outpace desktop internet
– Digital video eroding TV share
The buyers’ view
Advertiser and Agency interviews
Buyers’ view: agency & advertiser interviews
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John Montgomery, COO GroupM interaction, US (JM)
Cynthia Evans, Chief Strategy Officer, LatAm, MEC Global (CE)
Simon Thomas, Strategic Systems Director, GroupM, UK (ST)
Khurran Hamid, Global Director of Digital Media, Glaxo Smith
Kline (KH)
David Porter, Media Director, Unilever North Asia (DP)
Mark Greenstreet, Chief Research Officer, AE Media, UK (MG)
Nick Hiddleston, Research Director, Zenith Worldwide (NH)
Lindsey Pattison, Global Strategy Officer, Maxus Global (LP)
Alan Hodge, Global Trading Director, Maxus Global (AH)
Gary Lim, Marketing Director, Johnson & Johnson, Malaysia (GL)
Buyers view: Main trends in media landscape
• Digital screens and video
• Print now marginal
• Digital ad growth
• Rise of programmatic
• TV transforming to digital
• Social advertising (& commerce)
Source: 10 interviews with agencies, advertisers worldwide
Buyers’ view: campaign planning, buying, evaluation
Planning
Buying
Evaluation
Holistic strategic
planning: paid,
owned, earned
Trading specialists
Data-driven
proprietary
evaluation
Programmatic
skills gap
Focus on
outcomes
Local vs global
Video now core
Fine targeting
frustration
Source: 10 interviews with agencies, advertisers worldwide
Real-time testing &
optimisation
Buyers view: ad risks & measurement issues
Advertising risks
Measurement issues
• Viewability
• Cross-media audience
• Brand-safe content
• Cross-border
comparisons
• Online fraud
• Data integrity
• Lack of transparency
• Social Media backlash
• Privacy
• Viewability
• Video, mobile, social
• Relative effectiveness
• Slow to change
Source: 10 interviews with agencies, advertisers worldwide
Buyers view: opportunities for audit bureaux
Issue/risk
Opportunity
Cross media audience
Media brand certificate
Audit media owner cross-platform data
Cross border comparisons
Establish global standards
Viewability/ brand safety/
online fraud
Certify tech vendors
Promote transparency
Video/ mobile/ social/
ecommerce
Metrics/ standards for emerging media
Track consumer: media to purchase
Slow to change/
JICs to costly
Renew board members
Rationalise JICs
Q&A
Media Audit Bureau of the Future
Audit bureaux view: media trends past & future
Last 2 years
Next 2 years
• Print decline; growth in
internet
• Rapid growth in mobile,
digital video
• Increase in programmatic
trading in digital
• Consolidation of publishers
• Advertisers hesitate to
commit budget long term
• Publishers move to online &
digital editions
• Press ads will be static at best
• Future is mobile
• TV and digital video will
merge
• Regional press may go bust
• Measurement will be crossmedia
• Further print title consolidation
• Programmatic growth
continues
Source: IFABC 2014 Change Census: 23 responses
Industry view: cross media measures & accountability
EACA
ABCs trusted but
must break out of
legacy business
model
European
agencies want
common
standards
I-COM
IAB Europe
Cross media
measures needed
Cross-media evaluation with
integrated surveys
Viewability
growing concern
Industry-wide online
measurement currency
Better mobile &
tablet measures
Compatible definitions &
demographics across media
Plan TV + digital
video
Viewable not served
impressions
Cookies & privacy
Audience metrics by device
Traditional media audits will continue to decline
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Print media advertising in steady decline > less funding for audits
Customer numbers declining in many markets
Publisher consolidation risks revenues: Danish ABC closed
Digital revenues (web & mobile) for traditional publishers still small
– and more commercial measurement options
• Digital display losing share, emphasis on outcomes/response &
growth of programmatic reduce value of audits
• Growth in mobile ads – but 70% facebook & google
• Focus on audience profile favours panel/research not census
Source: IFABC 2014 Change Census: 23 responses
Change census 2014 shows many bureaux evolving
• Expanding stakeholders to digital publishers, other media,
agencies
• Rebranding in progress for many (print > all media)
• Recent launches contributing 10-20% revenues now
• Further launches planned
• Customer numbers down overall, although new customers won
• Frequency of rule updates increasing
• New data, publishing formats planned
• Partnering with other media audit orgs
• New skills being hired in, some organisations changing radically
• 23 countries took part – full summaries in Appendix
High level of recent and planned launch activity
Launched last 2 years
Future launch plans
• Digital publications (replica &
non replica)
• Total audience for B2B
• Multi platform certificates
• OOH ad monitoring
• Online adspend
• Web traffic audit
• Brand safety
• Viewability
• Events
• Free newspapers
• Internet campaign audit
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Total audience certificate
Event audit
Viewability
Video measurement
Hybrid audience
measurement
OOH audience
Brand audit for b2b media
Socio-demographic analysis
Total delivery auditing
Streaming radio/video
Brand safety
Merge panel & census
Source: IFABC 2014 Change Census: 23 responses
Many are partnering….
Country
Digital
TV
Print
Australia
Research/audit
Comscore
Brazil
Regional News
Finland
IAB Finland
Poland
PBI
Netherlands
Print readership
Romania
Other JICs
ARMA
Sweden
Readership
measurement
UK
UKOM, IAB
US
IAB
BARB
Source: IFABC 2014 Change Census: 23 responses
PwC
MRC
IFABC change census …example: Brazil
Brazil/IVC
Growing media market, led by digital. Ambitious ABC
New stakeholders
Added new media owners, plan to add digital publishers, digital
agencies
Rebranding
Plan rebrand: circulation > communications (IVC)
New customers
Growth in volume & revenues from both print media owners &
digital media owners. 20-30% revenue from new customers (since
2012)
Recent launches
Events, Free newspapers, onboard magazines, regional
newspapers, internet campaign auditing. 30-40% of revenues from
recent launches
Planned launches
Streaming radio & video audit, viewability, brand safety
Partnering
Regional Newspaper Association
New skills
Digital expertise
New processes
Changed data collection, auditing, reporting
Source: IFABC 2014 Change Census: 23 responses
Future opportunities for audit bureaux
Cross media audience
Emerging digital media
Media brand certificate
Audit media owner cross-platform
data
Cross media de-duped reach
Metrics/ standards for video, mobile
apps, mobile ads, streaming radio,
social media, ecommerce
Digital advertising risks
Certify tech vendors eg brand safety
Promote transparency
Define engagement measures
Non digital media
Events, OOH, TV, free newspapers,
catalogues
Cross border comparisons
Establish global standards
7 steps to success: Future Media Audit Bureau
7. Collaborate with other measurement bodies
6. Provide stamp of trust for processes in digital ads
5. Create new media measures: web, other media
4. Provide trusted multi-media data
3. Help publishers exploit digital opportunities
2. Build credibility & trust across multi-media
1. Engage with agencies & advertisers directly
Step 1. Engage with agencies & advertisers directly
• Agencies drive change so stay close to them:
– Add agencies to Board where possible
– Create an advisory group or meet 1:1
– Understand their needs and problems
– “Meet directly with agencies” (Romania)
– “Don’t rely on agency associations” (Poland)
– “Get agency support before new launches” (Germany)
• Meet advertisers directly to understand challenges
Step 2. Build credibility and trust across multi-media
• Consider a rebrand
• Build relationships with other media JICs, measurement providers,
trade bodies
• Grow profile in industry: have an influential figurehead
• Widen board/stakeholder membership
• Become the champions of trust in advertising
• Help break down silos between media types
Step 3. Help publishers exploit digital opportunities
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Support publishers in evolving their business to digital
– Offer training (Netherlands)
– Provide paid consultancy services to educate publishers (Switzerland)
– Create ad hoc market research (Switzerland)
– Include digital editions on print certificate (Netherlands, Belgium, UK..)
– Create media brand cards to show extent of reach (Sweden)
– Provide options to audit free delivery/ free digital editions (Finland)
– Simplify press rules (eg UK 3 monthly audits)
Anticipate reduced revenue from publishers and streamline costs
– Low cost audit alternative for small publishers (Romania)
– Single form for print and digital edition data collection
– Reduce numbers of staff (Sweden)
– Streamline processes (Switzerland)
Step 4. Provide trusted multi-media data
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Provide useful data to help agencies plan
– Web service for agency members (Sweden)
– Monthly advertising market shares (Spain, Switzerland)
– Monthly magazine circulation (UK)
– Daily web traffic (Spain)
– Datasets that agencies can use easily
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Aggregate data from own audits & third parties: freely available to media
industry
– Web portal prasa.info (Poland)
– Free mobile app (Sweden, Switzerland)
– Media brand audits (Sweden)
Step 5. Create new media measures
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Grasp the web opportunity where possible
– Provide web audits where possible (Romania, Netherlands, Spain, UK)
– OR partner with web audit provider (Poland, Sweden)
– Engage with IAB, digital agencies, JICSs (JICWEBS – UK)
– Develop stamp of trust for brand safety, viewability (UK, others planning)
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Measure other media where market permits
– Events (Poland, Finland, Australia, Switzerland)
– OOH (Romania)
– Stand alone mobile apps (Germany)
– E-newsletters (Netherlands)
– OR partner or collaborate (Sweden, UK, Poland)
Step 6. Provide stamp of trust for processes in
digital ads
• Audit third party vendors in digital advertising – provide
stamp of trust
– Viewability
– Content verification
– Brand safety
Step 7. Collaborate with other measurement bodies
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Collaborate with readership providers
– Readership is often the currency, but needs circulation to calibrate
– Build relationship with readership providers (UK, Germany, Netherlands)
– Include readership data on media brand charts (Sweden)
– Explore merging census & panel data (UK: hybrid, Belgium using own data)
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Partner with other media measurement bodies
– Poland: PBI (Polish Internet Bureau)
– Romania: ARMA (TV audience measurement)
– UK: PwC, BARB, UKOM
– Brazil: Regional Newspaper Association
Many ABCs are already taking these steps
Key step
Country
Case study
1. Engage with agencies &
advertisers
Almost all
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2. Build credibility & trust
across multi-media
Netherlands
Reform JICs
3. Help publishers exploit
digital opportunities
Switzerland
Sweden
Romania
Consultancy, training & ad-hoc research
Media Brand Cards
Small publisher audit
4. Provide trusted multimedia data
Spain/
Switzerland
Sweden
Monthly ad revenues
Germany
Romania
Belgium
Mobile apps
Out of Home
Merge Panel & census
5. Create new media
measures
6. Provide stamp of trust for UK
processes in digital ads
7. Collaborate with other
measurement bodies
Netherlands
UK
Poland
Data app
Mobile app audit: IVW Germany
5. Create new media measures: web, other media
• IVW already carry out web audits
• IVW have extended audits of mobile apps to include stand alone
apps from non publishers as well as publisher editions
• All apps that carry third party ads can be included – paid & free
• Measure monthly visits and page impressions
• Categorise by language, section, topic, format, paid vs free
• Can aggregate print plus web plus mobile app visits
• Fees for audit plus annual fee
• 350 apps audited so far and for 2014 expect €145,000 revenue
• Project took almost 3 years from start to roll-out
• Advertiser and agency support was crucial to success
More case studies in full report
Advertising & media measurement in flux:
audit bureaux at a crossroads
• Digital media will grow rapidly worldwide, driven by mobile and
video, changing consumer habits for good
• Print media will continue to decline; advertisers will focus on digital
media as they follow audiences
• Advertisers will plan campaigns cross-media and will demand
better measures of overall reach and effectiveness
• Audit bureaux that focus solely on print will shrink and may
become unviable – e.g. Denmark’s ABC closed
• Bureaux can widen activities to cover emerging media eg events,
OOH, mobile apps
• Bureaux must become part of the digital conversation in their
markets & develop services relevant to digital advertising.
What will it take to adapt to the digital world?
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Collaborating with digital stakeholders
Partnering with complementary research & auditing bodies
Learning from experiences of audit bureaux worldwide
Streamlining costs of core print audits
Frequent updates to digital media standards
Bringing in new skills
Developing new products and services
The role of IFABC?
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Help agree global measurement standards
Build relationships with global media players
Share best practice
Build data and knowledge base
Develop new joint services
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Next steps
• Understand media and advertising trends (use the report)
• Collaborate with bureaux who have already tried new services
(use the report to learn more)
• Consult agencies/ advertisers
• Broaden stakeholders & rebrand if needed
• Raise profile in local media industry (figurehead?)
• Speed up processes/ streamline costs
• Support publishing clients
• Grasp the digital opportunities
• Partner where necessary; acquire new skills
Q&A