DIGITAL MEDIA MEASUREMENT AND MONETIZATION

BREAKFAST ROUNDTABLE NOTES

May 22, 2009
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Summary
On May 22, 2009, the CT Digital Media Business Network hosted a breakfast roundtable to discuss the
challenges and potential solutions for digital media measurement and monetization. The debate, led by
thought leaders Bruce Haymes, SVP of product research for Nielsen, and Jonathan Yarmis, formerly an
analyst with Gartner research, took several interesting turns. Not only was the importance of
“engagement” questioned, but the industry conversation about engagement was cited as a top problem
confronting the digital media industry as it searches for methods and technologies to resolve the
challenge of adequate measurement and monetization.
This document outlines both the questions and potential solutions raised by roundtable participants.
The order in which the points are presented is intended to illustrate how the group came to a general
consensus on several key issues while acknowledging the enormity of the challenge.
Key Discussion Points
One of the biggest challenges in the ability to measure and monetize digital media is not an issue of
technology, but rather the way in which the industry has been discussing the challenge itself. An
accurate, smart discussion is needed in order to move toward effective solutions.
• The tendency to focus on engagement and behavioral targeting can prove to be a double-edged
sword, as these are not always the most effective approaches
o The predominate industry conversation often confuses several areas, thus more care needs to
be taken in the discussion of when it is more appropriate to spend money on branding versus
direct marketing/response as well as instances when those initiatives and expenditures should
be combined.
o The continuation of mass media is necessary to realize the full monetary potential of online
media, thus the preservation of mass media is imperative
• The concept of branded networks such as those available on television may prove a successful
model for online media as well

Contact: Ephraim Cohen at cohen@fortexgroup.com or +1-917-215-5413

www.ctdigitalmedia.com or www.fortexgroup.com
Digital Media Measurement and Monetization Roundtable Notes

• TV can be perceived as a walled garden that delivers controlled, predictable targets, while the web
has a significantly more fragmented and demographically diverse audience. This is not likely to
change.
• In order to fully monetize digital media, measurement firms must find a way to determine audience
behavior across all digital media
A List of Challenges
While it is clear that there is a long list of challenges that must be confronted in order to solve the digital
media measurement problem, the group divided them into several categories.
• Technical challenges: A prime example of a technical challenge confronting digital media content is
the lack of ability to ensure proper. A related issue is the presence of infinite denominators. At a
time when TV has always been a finite and predictable resource, making it easier to track content
from its source, the online world has the capability for infinite, unpredictable content and content
sources. As a result, reliable tracking becomes a major issue.
• Measurement sciences: For online media, data collection, or how to calculate an audience remains
problematic. The tradition panels approach is no longer sufficient. Hybrid approaches, such as
panels plus ISP data, are currently being pursued, but there is no widely accepted methodology for
collecting data as of now.
• Ecosystem and economic model: Digital media is still subject to platforms with little ecosystem
infrastructure. While mobile is a good example of an ecosystem that developed in an early stage,
tracking digital media usage across screens requires stronger technical ecosystems and
measurement methodologies applicable across all three screens.
Why TV and Online Shouldn’t Be Compared
Comparing the TV and online world was an inevitable part of the roundtable conversation. Participants
all seemed to agree that online media may never be like TV. In the online world, there are not only
those infinite sources of content, but information must also be measured frequently in real time,
otherwise it may become useless. Of course, should TVs become just a very large screen for the online
world, it may be a situation where TV viewing measurement becomes more like online content
measurement.
What We Need to Accomplish – The Right Now Challenge
Effective resource allocation requires knowing where to find the right people at the right place and at
the right time. Realizing the full monetization potential of digital media requires effective measurement
solutions that go beyond the need to measure infinite resources and viewing across three screens – they
also have to aim for measurement in real time, or else proper resource allocation becomes impossible.
What May Happen
There are a few thoughts on how measurement and monetization may be able to work together in order
to change the marketing and content industries. One idea thrown out by roundtable participants was
that ad agencies may increasingly form solutions implemented across their own advertising networks.
So, instead of running ad buys on other people’s networks, they would offer ad buys on their own
networks and have the content distributors sign up directly with them.

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Digital Media Measurement and Monetization Roundtable Notes

What’s Next for Measurement?

The science of measurement has gone beyond a point where branding is the focal point. It must now
also include direct marketing and direct response (but it’s up to marketers to determine when it is
appropriate).
While roundtable participants couldn’t agree on some facets of measurement – for example, some
complain it’s too fragmented and want it to be more like TV, while others argue it’s already too much
like TV. They did agree that measurement objectives need to be clear, if not, measurement becomes
too fragmented.
Participants also felt the definition of brand and brand measurement may keep evolving. If this is the
case, the best solution will not be static, but rather dynamic, in order to keep up with these changes.
The Privacy Issue – Is It Simply a Generation Factor?
The issue of privacy was only briefly raised, as many at the table, while acknowledging their own privacy
concerns, seemed to see it as more of an issue for the current generation that is not accustomed to
online privacy…or the lack thereof. As one person queried, “Did we complain about privacy with credit
cards?” With the next generation of web users, this issue may eventually become non-existent.
Branding vs. Direct Response/Marketing
Previously, direct marketing and branding were seen as two distinct areas. Now, businesses are
attempting to combine them, possibly costing everyone more in the long run.
Successful direct marketing can also be successful branding (for example, the Shamwow), this is not
always the case. Direct marketing and direct response are about engagement, while branding is not
necessarily so. If the marketing investment is focused on direct marketing, it could result in giving away
the branding value of the investment.
Is Engagement a Double Edged Sword That Will Kill Mass Media?
Participants agreed that a complete focus on engagement can become a double edged sword that
posses’ incredible risk to the industry by putting it in a corner and eventually killing mass media.
When are Engagement and Behavioral Targeting Important? Direct Response and Direct Marketing vs.
Brand Building
While not every company should concentrate on branding nor should every company focus on direct
response, some should do both. While long term or image-directed results are generally more reliant on
branding, effecting short term decisions may be best achieved by a combination of the two.
Furthermore, branding is often more effective for premium products, while direct response/direct
marketing is for commodity products. The economic climate also should be considered. In the current
recession, marketers need more justification for ad spending, so direct marketing/direct response may
prove to be the better strategy for campaigns.
Where is the Return on Social Media?
The roundtable participants also explored the impact of social media and how best to target this
category for marketing. The main question was whether we should stop looking at large scale, mass
outreach campaigns and instead, focus on the power of the influencer consumer. In digital media, it is
these consumers that drive communications, and online, their power has been magnified. Social media
value may also not exist in marketing/PR, but in measurement. For example, the first application out for
twitter is intended to measuring influence.

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Digital Media Measurement and Monetization Roundtable Notes

The Rise of the Web Network – What Hulu and ESPN have in Common and Why it is so Important
Participants questioned whether networks might be redefined to web networks. Networks provide
distribution and reach, which is true of both TV (e.g., ABC) and online (e.g,. Hulu) outlets. While
distributors are widely available, the industry needs brand name distributors like TV networks that will
attract both consumers and advertisers. ESPN360, Hulu, and others are examples of new types of
networks, “web networks,” that may end up leading the way to major monetization opportunities.
These networks are already familiar brands run by people that understand mass media and they are
focused on high value content against which brands want to advertise (monetize).
What Next and What Needs to be Done
One thing is for certain – the major digital media opportunity is still about mass media. Behavioral
targeting and engagement are not mass media, and if these remain at the center of the discussion, the
industry risks missing the best chance for achieving full monetization. Targeting and engagement are still
important; they’re just not the drivers of the largest opportunities.

Roundtable Attendees (partial list)

Paula Green
Scott Lichtman
Kaye Nilson
Sal Tofano
Tom Peckenham
Ariana Rawls
Scott Berry Digitalics
David Robbins
Christopher Glowacki PlumTV
Lawrence Greenberg Greenberg Media
Owen Nieberg Overbrook Consulting
PGA/Chris Pfaff Tech
Chris Pfaff Media
Eric Kogan Robinson & Cole
Bruce Haymes Nielsen
Ephraim Cohen The Fortex Group
Jason Liu

Visit www.ctdigitalmedia.com for information on future events

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