DIGITAL MEASUREMENT

Matesz Digital Audit Conference

2011 February 16Budapest, Hungary

• Smart phones are every where (ubiquitous),

• Tablet usage is predicted to be very high,

• E-readers will have low penetration, but high level of loyalty,

• iPhone and iPad dominate, but Android system predicted to surpass

DIGITAL MEASUREMENT

Source: Folio: July/Aug 10

• In 2014, the digital portion of the US periodical industry will be worth approximately $8.5 billion, or about 28% of the total market.

• By 2020, the value of the digital portion of the US periodical industry will have increased to approximately $19.7 billion, or about 58% of the total market.

• During this period, an increasingly significant part of the industry's digital revenue will be associated with digital magazines that are distributed and read on a wide range of devices including PCs, netbooks, smartphones (e.g. Apple'siPhone), tablet computers (e.g. Apple's iPad), and e-readers.

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Source: Folio: July/Aug 10

• Digital products are no longer for desk and lap tops.

• “Digital editions were an idea waiting for a platform,” Jason Brightman, Director of Web design, PC World, Macworld.

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Source: Folio: July/Aug 10

Sample of platforms

iPhone Reader iRex DR800Sony PRS 600 Barnes & Noble nookAmazon Kindle dx

txtr reader

Apple iPad

Plastic Logic QUE

future product flexible display?HP / FDC (Flexible Display Center)

Source DPV

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• Technology has changed capabilities• Publishers have been responding to

readers’ desires• Many new substrate platforms (devices)

coming into existence.• At least seven new devices using the

Android system, Web OS or Windows 7 launched (or will) recently.

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• The “traditional” definition of a digital product was that it be an identical to the print product.

• This out of alignment with the new reality!

• Notice how “industry” constantly tries to fit the future into a container of the past.

• It is time for a new definition!

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• Digital edition – A edition (either with a companion print version or as a stand alone digital product) ...…delivered periodically in a digital format with metered (i.e. linear navigation), …that is edited, designed, and contains date-stamped content …that includes advertising (but not necessarily the same advertising nor advertiser as might appear in a print version).

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BPA’s Definition:

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BPA’s Definition:• Though editing, design, and issue

identification (i.e. date-stamped content) are significant differences, …the primary distinction between a digital edition and a website is the metering …(this can be pagination or any other method of going through the issue from beginning to end),

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• A digital edition may be dynamically created, have targeted content, or may exist in parallel with pre-existing media.

• How many Audit Organizations have standards to accommodate this?

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• 1) Dynamic – Editorial can be created and/or selected at point of delivery.

…With a dynamic digital product, each recipient can receive a copy with different content and that content can change at any time.

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At BPA, we see four types of digital that accommodate all variations.

• 2) Targeted – Editorial is changed for specifically defined groups and/or platforms before point of delivery. …With a targeted digital product, each group of recipients, whether they are segmented demographically or because of the platform they use to receive the digital product, receive a copy with different content specifically selected for that group. …Apart from minor updates, the content cannot change once the issue is made available.

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• 3) Enhanced – If a print brand existed first, “enhanced” is editorial that is retained from the original edition and is redesigned and/or supplemented. …With an enhanced digital product, each issue’s content is primarily taken (but not necessarily replicated in its entirety) from the original edition (whether in print or digital). …Apart from minor updates, the content cannot change once the issue is made available.

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• 4) Replica – If a print brand existed first, editorial and design are unchanged from the original print edition. …With a replica digital product, each issue’s content and design are identical to the original edition. …Apart from minor updates, the content cannot change once the issue is made available.

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Next Steps:

• The expectation of global advertisers is that a reliable and standardised measurement platform or trading currency exist. Without it they can not effectively spend.

• Audit is a key foundation to deeper media research and insights. Without it media data risks being speculative.

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Marketers need to track:• Activity Based Metrics

– # of unique experiences– # of leads

• Operational Performance Metrics– Cost per lead– Improve organizational effectiveness– ROI or ROO

• Outcome Based Metrics– Resulting change in share

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Successful media will be the ones which are readily tracked.

• Who is measuring this? • What is the measurement technique?

3rd party measurement, to industry agreed standards, is vital to this new ecosystem.

This is the role of IFABC members!

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• Currently, BPA reports digital copies of magazines as circulation provided the copies are: – individually paid,

– requested free,

– requested by an employer for employees,

– or delivered as a benefit of membership

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• For magazines, digital copies and print copies are reported separately and added together for a total circulation.

• If print and digital copies are delivered to the same person, it is a count of one copy.

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• Let’s have a look

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• However, we are shifting away from reporting on circulation. Rather we are measuring the Brand and all its channels of distribution.

• In doing so, digital magazines are accepted, but reported as requested or non-requested copies.

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• Brand Audit allowing requested and non requested digital copies as one channel of the Brand

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• Let’s have a look at newspaper report

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• Let’s have a look at the Wall Street Journal Asia

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• For a digital edition to qualify on ABC-NA reports, its access — whether on a mobile device or personal computer — must be restricted to subscribers or registered users.

• Digital editions can be classified as either replica or non-replica.

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• Many publishers are beginning to sell “bundled” or “hybrid” packages of print and digital products to subscribers.

• Beginning October 2011, new ABC-NA rules go into effect to verify that readers are accessing digital copies purchased as part of a single-price bundled subscription.

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• The new fulfillment requirements are:

• First or Primary Digital Platform (Bundled and Hybrid) – The subscriber must register, activate and access the copy before it can be counted as paid circulation. Subsequently, the digital edition must be accessed at least once per month to continue qualifying as paid.

• Second Digital Platform (Bundled) – The subscriber must register, activate and access the second copy and then continue to access it at least once per week to qualify as paid.

• Third and Any Other Subsequent Digital Platforms (Bundled) –The subscriber must register, activate and access the third and any subsequent copies and continue to access them at least once per day to qualify them as paid.

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What should the metrics be?Should they be…• 1) Unique User: An identified and unduplicated individual

user who accesses the paginated content or advertising of an issue.

• 2) Unique Browser: Computer identified, but not the actual user.

• 3) Visit Duration: The average time visitors remained on the issue.

• 4) Page Impressions: Recorded each time an issue’s page is displayed in a platform screen/window.

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What should the metrics be?Should they be…• 5) Actions Performed• 6) Content Sharing

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• Each IFABC member organization is an industry standard setting body and determines what should be measured and how it should be reported.

• Shouldn’t the IFABC have global standards for this form of media?

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• The IFABC should work to overcome hurdles and obstacles to providing what advertiser, agency and media members require?

• The IFABC should work with industry associations with common interests to pursue one objective!

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• The IFABC has created a committee dedicated to Digital Publication Measurement.

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Our agenda:• Provide guidance to IFABC members on the

issues of the day and proposed solutions.• Address the issue of the definition of a digital

product, what should be measured, and how to report.

• Establish a coalition of IFABC, WAN, FIPP, WFA, and the IAA to address hardware and software vendors, such that it is clear what measurement needs must be addressed.

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• Report back to the membership on progress and recommendations.

• If the members agree, each should take the standard for implementation in their home markets such that digital products will be measured to a global standard.

• Where members wish to add beyond the minimum standard, each should do so and report back to the committee on the success of their endeavor.

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•Questions?

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