SES San Jose 2009: Eli Goodman, ComScore Interview
External measurement tools enable us to track the relative success of our marketing efforts with those of our competitors. As most internal measurement tools are closed and often more guarded than Fort Knox, external analysis can be extremely helpful to put our metrics in context. comScore offers a vast array of online measurement tools, combining the best of panel-based data collection and on-page tagging. Eli Goodman is a 10 year veteran in technology and marketing and leads comScore’s Search division. He sat down to talk to us at Search Engine Strategies San Jose 2009, after delivering an eye-opening presentation entitled “Where to next?”
GP. As a technology expert working with measurement giants such as comScore currently and Hitwise in the past, you must have a personal take on how audience can be measured across different platforms. Is page tagging too limited? Does the panel approach still have it’s advantages, and what about the problem of multiple points of contact in web/mobile/at work segments?
EG. Not only does the panel approach have its advantages, but it is absolutely essential for effective person-based audience measurement. Server data can tell you where traffic to the site is coming from, but it doesn’t tell you anything about the audience. It doesn’t tell you how many people are being reached or anything about who those people are. So panels will always be the foundation of audience measurement.
While the fragmentation of media presents some measurement challenges, there are solutions. A good example is home vs work PC usage. Years ago, comScore helped pioneer a solution to account for the duplication that occurs when people visit sites from both home and work locations using a sub-set of our panel who allowed us to observe their behavior from both locations. The ultimate solution to understanding cross-media behavior will likely involve a similar process.
GP. This question may have been answered to some degree in the panel “Search: Where to next?” but I wanted to get your take on how micro-blogging has affected our lives. With communities growing overnight and tailored answers literally seconds away, where do you see search fitting into decision-making processes?
EG. This topic is particularly interesting to me, as I have been talking for sometime about the fragmentation of the decision making process. We have seen in our data that the number of searches and websites visited prior to making a decision online and/or offline has increased tremendously in the past couple of years.
Consumers tend to be more specific with their searches these days (average words per search query are up to over 3 words per query) and find their way to a variety of information and social media sites before eventually arriving at a vendor site. They are interested in opinions on their specific need and will scour these social media/answers sites and other microblogging style entities before making a purchase. The main point here is that search has pushed back much earlier in the buying process than it used to…when we first began to see search take off as a marketing vehicle, the focus was always on direct response.
Now that search is leading consumers to other types of sites earlier in their process, the focus should shift to include greater judgment of latent response, meaning that vendors will need to find ways to get in front of the consumers much earlier on, as by the time they arrive at a vendor site they are less inclined to be shopping and more inclined to be buying, leaving the other vendor sites in the cold when it comes to that final commerce evaluation.
GP. Okay, so social is having a strong impact and search queries are becoming much more sophisticated, however opportunities for tapping social resources are few and far between. You’ve said audiences move to community and social sites where advertising is either absent or shunned (in it’s current form), so does that mean companies are at a loss in monetizing their efforts? Do you see this changing anytime soon? What are good measures of success outside the realm of internal metrics when it comes to social media?
EG. Social media is a major driver for the evolution of an eventual buying decision and companies can still use more traditional means of advertising to influence their potential customers. Exposure to both search and display ads during a shopping process directly impacts eventual visitation to websites, trademark searches after exposure, and the purchases, both online and offline.
Although the monetization of innovative campaigns on social networks/community sites is still taking shape, advertisers should not discount the power that display and search advertising on these sites has on the latent purchase of their products.
My recommendation would be to wait a bit on investing too heavily in unproven social media marketing plans, and focus dollars on the traditional forms of advertising already in place on Social networks and Community sites. We know that consumers are turning to these types of sites for advice and information regarding their purchases, so be sure you are reaching your consumers here. The social networks have been working diligently on their targeting efforts, so take advantage of getting your branding messages in front of your target audience as often and efficiently as possible.
GP. And at the same time, search is evolving on it’s own. The recent launch of Bing was the first in many changes to hit our browsers. Microsoft taking over Yahoo’s search results, and Yahoo’s homepage redesign rumored for reinvention are definite signs that the need for change is evident. Do you think these changes are a result of engines shifting focus due to user behavior, or are Microsoft and Yahoo simply catching up to Google’s personalized, universal, blended search results?
EG. I think the simple answer here is that Google has had a dominating position in the search marketplace for some time, and it is up to Bing and Yahoo! to make changes to close the gap. The recent partnership announcement between Microsoft and Yahoo! is a step in this direction, but it will take time to fully evaluate its impact.
GP. With all the success of online marketing in recent years, this is really the first recession to hit our industry: search 2.0 and social marketing. Do you see online retailers or bricks and clicks organizations suffering the same blows as bricks and mortar companies? As the economy shows signs of improvement, what choices in online strategy do you think will drive the most growth (biggest bang for the buck) to recovery?
EG. Online retail spending growth has gone from about 20% in 2007 to nearly flat over the past few quarters. But it is still outperforming the bricks and mortar retail sector. As the economy recovers, online retail will resume its position as a high-growth retail channel and it may even derive long-term benefits from the recession, as consumers have come to rely on the price comparison capabilities it offers.
What advertisers and marketers need to do as we come out of the recession is understand how the online channel drives both online and offline spending. Those who are obsessed with clicks and click-throughs on ads – whether they are display or search ads – are neglecting a lot of the value that the online medium provide. They need to think more seriously about the online channel as a brand-building medium and not only as a direct-response medium. Those who measure their digital marketing campaigns in terms of both direct vs. latent response and online vs. offline impact will have a leg up on the competition. The ones who continue to obsess over clicks will be leaving money on the table.
GP. comScore Media Metrix and Video Metrix products have come a long way over the past 6-8 months, with several technologies such as their hybrid panel/beacon on large media sites, and video beacons to assist in enriching panel-based measurements. Can you speak to any of these or other developments that have changed the way companies do business? Any interesting insights that have caught your eye?
EG. We are of course very excited about the introduction of Media Metrix 360, our new hybrid approach to audience measurement that combines panel and server data. It will provide the critical elements of audience measurement that can only be provided by a panel – such as measuring reach, engagement, and person-level demographics – with improved granularity and detail from the server data that will improve coverage of difficult-to-measure niche audiences. We are confident that Media Metrix 360 will truly be a best-of-breed approach to digital audience measurement that will help the industry understand and reconcile differences between panel and server data. This transparency will ultimately give advertisers more confidence in the digital medium and will facilitate the movement of ad budgets towards digital campaigns.
GP. And that draws yet another interview to a close, I want to thank Eli once again for taking the time to answer all my questions. If you’re interested in learning more about Eli Goodman, comScore products, or external metrics in general, make sure to attend the next SES Conference and Expo, coming to a city near you. Be sure to follow Eli (@LosBuenos) and comScore on Twitter (@comscore) for the latest news and insights to our industry.
About Search Engine Strategies
Search Engine Strategies is the definitive digital event for marketers, corporate decision makers, webmasters and search engine marketers (SEMs), including pay per click (PPC) advertisers and search engine optimization (SEO) professionals. Attend SES San Jose, network with your peers, meet with industry experts, and learn the tips, tactics and strategies that will grow your business online.
About Eli Goodman, comScore
Eli Goodman leads the business development team for comScore’s custom solutions division, where he plays an integral role in educating the industry on comScore’s innovative and consultative services. He is a 10-year veteran of the technology and market research industry, with experience in marketing research, search, online media, and events.
Previously, Eli worked at Hitwise, where he honed his knowledge of the web analytics industry, specifically focusing on search projects related to retail, travel, financial services, and publishing. Eli began his career at Gartner, Inc. as a member of the business development team for the research and consulting division. Eli earned a B.A. in organizational and behavior management from Brown University in Providence, R.I., and currently resides in New York City.
