SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

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The Click is Dead and Social is Hot: Neustar Reports on its Q2 Media Insights

Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information services and analytics, today released its Q2 2014 Media Intelligence Report (MIR), which analyzed the performance of online advertising channels and campaign types during the second quarter. The report gives marketers insights into which mediums were most profitable and reached people more consistently; which campaign types were most effective overall; and how the use of an CRM data to build and reach top audiences impacts campaigns.

This quarter, one of the report’s most noteworthy findings is around the waning influence the “click” has on conversion rates. In a study of the health care industry, the report found that consumers who viewed ads converted to sales 2900 percent more often than campaign averages, while consumers who clicked on ads converted just 100 percent more often than campaign averages. The study also found significant differences between the click and view audience demographics.

According to Rob Gatto, SVP of Neustar Media and Advertising, “By measuring customer and media activity in real-time, marketers can uncover incredibly valuable campaign insights, some of which may be surprising. While many marketers still place emphasis on clicks for conversions, depending on their target audience they may find much greater growth opportunity in view-based conversions.”

Other highlights from this quarter’s report include:

View and Click Audiences Differ
In addition to its findings around click-based and view-based conversion rates, the report also found clear demographic differences between audiences that converted after clicks and those that did so following views. Knowing the difference in conversion rates and recognizing that different audiences convert in different ways can help marketers identify their ideal prospects and optimize their marketing budgets.

Social is Growing and a Bargain
Social media demonstrated the best cost-efficiency in Q2, coming in at 70 percent below the industry average for cost and showing a 32 percent cost decrease quarter over quarter. Social’s reach-efficiency was 286 percent better than the next channel, portals and its ability to reach exclusive users (not seen on other channels) improved by 65 percent quarter over quarter*. The decrease in the cost of social stems in part from the growing use of efficient demand-side platforms to purchase social impressions. Going forward, marketers should look to social for good value and a cost-effective means to drive reach.

Video is the New Normal
Video is becoming a more common buy, no longer tied exclusively to specialized video networks. Driven by events like the FIFA World Cup, advertisers in Q2 looked to major networks serving soccer-related content and bought more video impressions there. Networks continued to have solid upper funnel influence, providing strong awareness and leaving longer-lasting effects on users who are later re-messaged to. While network costs rose 28% over the last quarter, new and better video targeting and measurement tools give marketers the power to promote brand awareness, even as its costs increase.

About the Neustar Media Intelligence Report
The data analyzed for this report covered over 220 billion digital events occurring during the second quarter of 2014, all tracked using Neustar’s AK Media Insights, a key part of Neustar’s integrated marketing solution, PlatformOneTM.

Using algorithms designed by Neustar’s data scientists, all of Neustar’s quarterly MIR reports look at the best digital advertising channels for reaching new and high-quality customers, reducing ad spend that doesn’t reach intended audiences, driving customers’ actions and influencing their buying decisions. Neustar’s MIR insights help marketers, brands and agencies determine where and how to engage their prospects and customers using a personalized dialogue. Download the full Q2 Neustar Media Intelligence Report based on AK Media Insights.

* These figures may be skewed by users who access social on multiple platforms and devices, and via private browsing. Every time a user accesses social in a private browser, they appear as a new cookie (or user).

About Neustar
Neustar, Inc. (NYSE:NSR) is the first real-time provider of cloud-based information services and data analytics, enabling marketing and IT security professionals to promote and protect their businesses. With a commitment to privacy and neutrality, Neustar operates complex data registries and uses its expertise to deliver actionable, data-driven insights that help clients make high-value business decisions in real time, one customer interaction at a time. More information is available at www.neustar.biz.

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