1. CUSTOMER CONVERSION JOURNEY SECTOR: MOBILE

2. Contents Background and methodology What we measured – Brands and their activity Results – Web site visitors and behaviour Results – Affect on online activity Results – Latency of display advertising Summary

3. BACKGROUND AND METHODOLOGY

4. Background The IAB wanted to investigate → The role all forms of online media play in the customer conversion journey → How online media work most efficiently when integrated → The non-linear nature of the customer journey and the way that different formats interact with each other on the journey in the build up to conversion → The real impact of display advertising on site visits and user behaviour

5. Methodology Nielsen NetView panel monitors activity of 40,000 representative UK internet users at home and work Software installed on panelists' PCs records their online activity – each URL visited and search made is recorded The online activity of two of the top five UK mobile brands is tagged to allow identification of those that have been exposed to the activity – for example online display advertising The two brands are identified as Brands ‘A’ and ‘B’ in the research results The URLs within the sites of the two brands are categorised into one of three areas – ‘general visit’, ‘obtaining a quote’ or ‘making a purchase’ This enables us to answer two key questions → Which users were exposed to which elements of the online campaigns? → What activities users conducted during visits to the brands’ websites?

6. WHAT WE MEASURED – BRANDS AND THEIR ACTIVITY

7. Brand A Brand B Period Activity Two months Display Sponsored Search Organic Search Referrals incl. Affiliates Display Sponsored Search Organic Search Referrals incl. Affiliates Sample Size 2,000+ What we measured – time periods, activity and sample size Source: Nielsen NetView

8. RESULTS – WEB SITE VISITORS AND THEIR BEHAVIOUR

9. On average 3% visitors obtained a quote or purchased Brand B Brand A Average of Brands A & B Visit – 96.7% Quote/Purchase 3.4% Source: Nielsen NetView – Average of two brands

10. Purchasers are more likely to have been exposed to activity Total Site Visitors Quote/Purchase Pages Visitors Exposed to activity Total Site Visitors Quote/Purchase Pages Visitors Brand A Exposed to activity 77% 94% Brand B Exposed to activity 83% 91% Exposed to activity Source: Nielsen NetView

11. 1 6 DAY EXPOSURE SEARCH TERMS Sponsored search Brand Related Search 7 Display Direct Display Exp: x2 8 Display Exp: x2 Brand Related Search Display Quote Sponsored search Purchase Example user journey - one Searches = Sponsored VisitQuotePurchase Source: Nielsen NetView

12. Example user journey - two Searches = Sponsored 1 21 2227 DAY EXPOSURE Display Exp: x 4 Sponsored Search SEARCH TERMS Brand Related Search Direct Brand Related Search 38 Display Organic search Purchase Quote VisitQuotePurchase Source: Nielsen NetView

13. Display more likely to drive first steps Brand A Brand B 2 nd 1st 2nd 3rd WWWWWWWWWWWW Display Referral Organic Click Referral Display Sponsored Click 1st 2nd 3rd 2 nd 3 rd Three Most Likely First Touch PointsThree Most Likely Last Touch Points Source: Nielsen NetView – Average of two brands, excluding direct visits without any prior exposure to activity

14. Average customer conversion journey across both brands 9.2 0.90.8 Display Organic Search Sponsored Search + + = Quote/Purchase (over 15.7 days) Brands A and B Average Source: Nielsen NetView, period from first event to first Quote / Purchase NB: excludes journey’s that began with an organic click through

15. RESULTS – THE IMPACT OF ONLINE ACTIVITY ON USERS

16. Source: Nielsen NetView Exposure to different campaign elements – visitors

17. Quote/Purchase Pages Exposure to different campaign elements – purchasers Source: Nielsen NetView

18. Just Display Combined exposure leads to purchase Source: Nielsen NetView Also used to Referrals Just Display Also used Sponsored Search Brand A Just Display Also used Sponsored Search Brand B Also used to Referrals 55% 53% 39% 31% Purchasers Also used to Referrals Just Display 85% Also used Sponsored Search Brand A Also used Sponsored Search Brand B Also used to Referrals 67% Just Display 78% 55% Visitors Just Display

19. Brand A Brand B Number of Site Visits Relationship between display exposures and number visits Site Visits per Exposed Person Number of Display Exposures Source: Nielsen NetView

20. RESULTS – THE LATENCY OF ONLINE DISPLAY ADVERTISING

21. of those exposed to the display campaign went on to visit Brand A’s site post exposure Brand A 9.7% of those exposed to the display campaign went on to visit Brand B’s site post exposure Brand B 6.0% Display advertising – how many people visit after exposure? Source: Nielsen NetView, Average Display CTR = 0.18%, Source AdTech 2009

22. 31% Have not been exposed/ to conducted any Visit activity Brand B Base: Those that visited the brand site after exposure to display campaign Brand A 46% Have not been exposed/ to conducted any Visit activity Display advertising - how long does it take exposed people to visit? Source: Nielsen NetView

23. SUMMARY

24. Summary £ Online activity is working Individuals who get quotes/make purchases on websites are more likely to have been exposed to online advertising The customer conversion journey is not a simple linear path Users come into contact with multiple campaign elements on multiple occasions Different online elements work together They play different roles at different stages of the journey – it’s not only the last step or click in the journey that matters

25. Display advertising performs better than is widely perceived Display advertising has a positive latent effect – up to 46% of people that visit a web site a week after being exposed to a display advertisement have not been exposed to any other online elements Click thru metrics may not be an adequate way of assessing the impact of display advertising Up to 9.7% of users exposed to display advertising will visit the advertisers website within one or two months – approximately 54 times the average click thru rate of 0.18% www Summary