CONSUMER

ENGAGEMENT:
the important and often overlooked
role of media engagement.
Scott D. Moore, Ph.D., 2017

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 1
 As weve all experienced, technological innovation has dramatically
altered the marketing landscape and the ongoing evolution looks
to continue unabated. As one commentator noted, marketing
has changed more in the past 5 years than the previous century.
It began with the proliferation and now almost universal ubiquity
of devices: smartphones, tablets, DVRs, game consoles , home
networks powered by high-speed Wi-Fi, streaming or subscription
VOD, etc. These devices provide access to the more than 1 billion
websites, 2 million Apps on both Android and Apple, etc.

With this evolution, it should not be surprising that consumer

behaviors have also changed dramatically. US adults screen time,
already significant, jumped from 9 hours, 4 minutes daily in 2014
to 10 hours, 52 minutes in 2016, with digital devices (PC, phone,
tablet) driving almost all of the increase.1 And these devices
compete with each other, in one study 92% of Millenials used a
smartphone or tablet while watching TV.2
83% Social media has now become an integral part of the daily media
of Americans have a
social media account diet. 83% of Americans have a social media account and Internet
users have an average of 5.5 social media accounts.3 And about
80% of the time with social media now occurs on mobile devices.4

Consumers produce vast amounts of content daily in the form

80%
of time spent on
of blogs, recommendations, tweets, videos, photos, shares/likes,
comments, etc. Blogging, for example, has grown significantly
social media to over 409 million people viewing more than 26 billion pages
platforms occurs monthly on WordPress alone5; 56 million blog posts are published
on mobile devices monthly.6 In 2010, consumers shared 27 million pieces of content
daily, a number that has surely increased as consumers spend
more time online. On Facebook alone, 4.5 billion like buttons
are clicked and 10 billion messages are sent daily.7 In fact, user-
generated created content has usurped the historic publisher and
brand monopoly over content.

In this new digital world, the traditional rules of marketing no

longer apply.

WELCOME TO THE ERA OF

CONSUMER ENGAGEMENT!
At the most fundamental level, these tectonic changes have three
major implications for marketers and publishers.

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 2
 1. Competition for consumer engagement and
attention has never been fiercer.
Experts estimate that American consumers are exposed to
4,000 10,000 ads per day. And some studies suggest that
few consumers can recall more than 5 ads a week.8 A 2016 IAB
study among US brand marketers found that ad clutter was
the biggest challenge they face with digital advertising.9 And,
most importantly, competition for consumer engagement and
attention isnt just limited to advertisers, they are competing
with consumer content for that attention, often content that
consumers voluntarily and enthusiastically seek out.
Word-of-mouth (WOM)
was the primary factor 2. Consumers are now completely in control,

20%-50%
so their engagement and attention has to be
earned.
of all purchasing decisions,
Digital devices give consumers the power to watch or
and generates
experience (because its not longer just passive viewing) what

50% more
sales than paid advertising
they want to watch or experience when they want to watch or
experience it, on whatever device they choose. And they are
growing increasingly savvy in their use of new technologies to
avoid unwanted intrusions on their time.

3. Consumers are more likely to turn to family

and friends, or even other consumers, as
trusted sources of information.
With the explosion in social media and user-generated content,
consumers no longer have to rely upon brands as their primary
sources of information. They are much more likely to rely
on other consumers for information about products and
services. McKinsey noted that word-of-mouth (WOM) was the
primary factor behind 20%-50% of all purchasing decisions,
and generates 50% more sales than paid advertising.10 Nielsen
Research findings have shown that among the most trusted
sources for consumers are recommendations from people I
know (83%) and consumer opinions posted online (66%).11

CMOs and senior marketers, realizing that the days of mass

consumer reach and one-way dialogues are over, are quickly
changing tack. In this new era, CMOs most important priority is
driving business growth through building engaging consumer
experiences. As one commentator noted:

Every CEO and CMO survey conducted over the last 2-3 years
points to the customer relationship as being the number one
strategic priority for businesses of all sizes and in all industry
sectors.12

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 3
 With 86% of CMOs expected to own their companies complete
customer experience by 202013, they are focused on urgently
building teams, capabilities, and partnerships to be able to
deliver compelling consumer experiences. Predictably, the media
channels through which they expect to create these engaging
experiences are new, digital channels (social media 63%, web 53%,
mobile apps 47%, mobile web 46%) versus reliance on traditional
publishing channels (TV 15%, print 14%, radio 7%).14 Korn Ferry
found that marketers top 3 most popular marketing channels to
engage with customers were Facebook, online advertising and
Twitter.15

Going forward, those companies that create compelling customer

engagement will be the ones that win in the marketplace. There is
a significant amount of data documenting the value of an engaged
consumer across industry verticals in both B2C and B2B.

Rosetta Consulting research has helped quantify the value of

engaged consumers:16

7X more likely to always respond to this brands promotional

offers;
Companies most effective at
engaging their customer were 6X more likely to try a new product or service from this brand;

2.2X
2X more likely to update or purchase additional services from
the brand;
2X more likely to spend more money even if the competitor had
more likely to grow market a slightly lower price;
share versus the previous year
3X more likely to advocate to friends and family;
4X more likely to advocate to colleagues and acquaintances;
5X more likely to say this is the only brand I would choose.

Those behaviors predictably drive significant brand value:

60% more spent in each transaction;

90% more frequent purchases;
3X annual value per year.
Rosetta found companies most effective at engaging their
customer were 2.2 times more likely to grow market share
versus the previous year.17 IBM researchers found that customer
experience leaders enjoyed a 14-percentage point compound
average revenue growth than customer experience laggards from
2010-2015.18 Myriad other researchers have confirmed these
findings.

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 4
 Predictably, marketers and marketing organizations are actively
working on pursuing programs and capabilities to create those
rewarding experiences that engender consumer engagement with
their brands.

However, we believe an extremely important and frequently

overlooked component of creating and sustaining consumer
engagement is the role that engagement with specific types
of media and editorial content can play in delivering overall
consumer brand engagement. Further, we believe this is
something that markets could begin to act upon almost
immediately.

MEDIA ENGAGEMENT IS
AN ESSENTIAL KEY TO
DELIVERING CUSTOMER
ENGAGEMENT.
If the media content
Somewhat overlooked in the frenzy of device and content evolution
engages the is the wide and diverse array of data that demonstrates the power
consumer, this in of media context and content in creating consumer engagement.
turn can make the We believe this is an approach that CMOs can add to their
repertoire extremely quickly and easily.
ad more effective.
The evidence for There is a plethora of learning and insights that can help CMOs tap
into this potential under-leveraged source of engagement.
the impact of
media engagement 1. High engagement media and editorial
and experiences content can significantly increase advertising
effectiveness.
on advertising is
Generally, it has been an established fact in communications
persuasive. research that media engagement increases advertising
effectiveness. Professors Calder and Malthouse explain this
important dynamic:

In the past, the medium was thought of as being only a vehicle

for the ad, a matter of buying time or space to place the ad to
expose the audience to it a matter of buying eyeballs. But this
ignores the fact that the medium provides a context for the ad. If
the media content engages the consumer, this in turn can make
the ad more effective. The evidence for the impact of media
engagement and experiences on advertising is persuasive. This is
important to marketers because engagement affects adverting and
offers a new avenue to make advertising more effective.19

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 5
 This phenomenon has been corroborated across a large
number of studies and media channels (television, magazines,
websites, news apps, etc.). For example, the power of media
engagement with magazines was roughly comparable in
strength to such execution factors as page sizes, placement
and number of colors.20

Researchers recognize that these findings help offer a potential

solution to engaging consumers in an ad cluttered world:
Advertisers are searching for ways to overcome the problems
of ad clutter and avoidance. Leveraging the media context is
a potential solution since the advertisers have (at least some)
control over where their ads appear and we know that context
can affect reactions to the ad.21

2. Online media that moves the needle on

newer, more refined media engagement
metrics can dramatically increase advertising
effectiveness.
Recent research has identified new and more predictive
metrics of engagement (e.g. attention/time viewed, shares/
likes, recommendations, comments) that are especially tied to
Recent research has strong advertising results.
demonstrated the actual
sales lift associated with One powerful metric, time spent viewing media content,
ad in-view time. Ads has been demonstrated to deliver a number of outcomes
that were in-view for advertisers want: ad awareness (Millward Brown), ad recall
7-16 seconds had and recognition (IPG Media LAB), aided and unaided brand

4X
recall and recognition (Yahoo Research, Chartbeat), click-
through rates (Bannerconnect, Google), lower cost per activity
(Bannerconnect), purchase intent (Millward Brown) and
the sales impact conversion (Pre-target, MediaMind). And the magnitude of
these effects can be particularly impressive. Millward Brown
as ads in view for 0-2
found that high in-view times (> 100 seconds) vs. low in-view
seconds
times (< 35 seconds) could increase online ad awareness 460%
and purchase intent 1030%.22-28

Perhaps most importantly, recent collaborative research by

MOAT, Nielsen Catalina Services and Kellogg has demonstrated
the actual sales lift associated with ad in-view time. They
found that OLV ads that were in-view for 7-16 seconds had 4
times the sales impact as ads in view for 0-2 seconds. This is
especially relevant for advertisers considering that 70% - 85%
of consumers are served no more than viewable impression
during an ad campaign, and 50%-65% of those are exposed to
ads for a total of less than 5 seconds. (IAS, 16). 29

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 6
 Another key metric, shares and likes, are also likely to enhance
advertising effectiveness. The power of word-of-mouth (WOM)
is well documented. Given the power of WOM, we would expect
that as people online share or like online content that these
endorsements would extent to the ads within that content as
well. A study that GE conducted confirmed the potential power
of ads embedded within shared content. Consumers exposed
to GE ads via shared content (as opposed to paid placement
Consumers exposed to GE only) had 40% more positive GE associations.30
ads via shared content
(as opposed to paid 3. Online content sites in general, and news
placement only) had sites in particular, are prime locations for

40% more
positive GE associations
heightened consumer engagement.
Consumers attitude toward a website, their visit motivations,
and overall opinion of the site are the key metrics driving
engagement with the brand advertising. GfK Research found
that content sites are particularly well trusted and much more
like to have their advertising noticed and trusted.31

ChartBeats data team examined 2 billion pageviews across

580,000 articles to identify those with the highest level of
attention per pageview. The articles consumers most engaged
with tended to be actual news as opposed to the worst
performers, which include top, best, fictional, hairstyles,
nude, etc.32

4. Experiments to-date of publishers and

advertisers using engagement-based currency
have shown extremely powerful results for
advertisers.
Recently, publishers seeking to capitalize on consumers
engagement with their content have started to use a time-
based currency (typically cost-per-hour or CPH). In these CPH
agreements, advertisers only pay for impressions that are
in view for 5 seconds or more (as opposed to CPM which is
based upon impressions served). Most notable amongst these
are early experiments by both the Financial Times and the
Economist.

In an analysis of 6 CPH campaigns, the Financial Times

found significant benefits to their advertisers: 79% higher ad
recall, 71% higher brand awareness and 58% higher brand
consideration (compared to ads seen less than 5 seconds).33

Analysis by the Economist showed similar results: a 10.6%

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 7
 brand awareness lift (versus a Nielsen norm of 2.1%),
campaigns that outperformed competitors running CPM-based
campaigns, with respective brands ranging from 0.4-5.2%,
and click through rates that were 50% higher than CPM-based
campaigns.34

Tony Slade, Commercial Director of Digital Advertising for FT,

offered his opinion on how these new arrangements provide
exactly what CMOs are searching for in this new marketing
landscape:

But most importantly, in my conversations with brands and

agencies, they are increasingly seeking quality. I think weve been
in an environment where ads have been commodifed and brands
now know they can buy cheap, but cheap is not necessarily what
they want. Quality comes with great service, great ideas, and an
appropriate currency, and we think this shift reflects a meeting of
Facebook users
those forces.35
spend an average
50 minutes daily MOAT CMO Jonah Goodhart describes this as a new mega-
trend towards Attention Quality, corroborated by the two-
dozen or so other publishers actively working to establish
The highest similar currency.
level of usage
5. Facebook is a unique place for CMOs to
on Facebook is
leverage consumer engagement.
among 18-34 year
Facebook, more than any other site or content, is the one place
olds, particularly that manages to integrate and harness all of the engagement
Millennials findings weve highlighted.

According to an annual Bureau of Labor Statistics study,

30% of the US Facebook users spend an average 50 minutes daily. This is
more than they spend reading (19 minutes), on sports or
population gets there
exercise (17 minutes), or on social events (4 minutes). And
daily news from its unrivaled across platforms YouTube comes closest
Facebook with 17 minutes, 9 minutes on Yahoo properties, 2 minutes
on LinkedIn, and just 1 minute on Twitter. Even better for
advertisers, the highest level of usage is among 18-34 year olds,
particularly Millennials.36 30% of the US population gets there
daily news there.37

And when Facebook users visit another site directly from

Facebook, they spend more than 50% more time there than
those who come from other referral sites.38 And they are return
to that page on average 2.9 times monthly.39

Beyond Facebooks ability to create inordinate amounts of

engagement, it also provides dramatic amplification effects.

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 8
 comScore and Facebook research found that brands extent
the reach of their earned media exposure of fans to friends of
fans by 50% - 200%.40

Controlled studies among advertisers like Starbucks and

Target have demonstrated the power of ads on Facebook to
significantly increase offline purchase incidence (38% lift) and
buyer penetration (21% lift).41

THE NEED FOR AN

ENGAGEMENT BASED
CURRENCY
The Era Of Consumer Engagement needs an appropriate currency
for properly valuing media, especially social media. Reach based
currencies, such as the CPM, arent enough. Theyre not wrong but
incomplete and can lead to misguided conversations and poor
decisions.

An engagement based currency would incorporate reach but

also include the critical elements of responsiveness and sharing
that characterize the new environment. It would direct marketers
towards content that has all the characteristics research has
shown to drive advertising effectiveness - reach, engagement and
amplification through sharing harnessing the power of sponsored
content and sponsor engagement/receptivity.

This new, yet to be invented media currency may turn out to be just
the catalyst the industry needs to align marketing resources with
current and future human behavior. This alignment would lead to
the growth that CMOs, publishers and agencies so badly need.

SUMMARY
Technological innovation and its subsequent impact on the
marketing landscape have rendered the traditional rules of
marketing obsolete. The marketers who will win in this new
environment will be those who best capture consumer attention
and create engagement. And the battleground is more likely to be
among new, digital channels than traditional channels.

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 9
 ENDNOTES
1. Nielsen, The Nielsen Total Audience Report, Q3 2016
2. Retrieved March 22, 2017 from: https://www.ama.org/publications/eNewsletters/
Marketing-News-Weekly/Pages/millennials-attention-devices.aspx
3. Retrieved March 22, 2017 from: https://www.brandwatch.com/blog/96-amazing-social-
media-statistics-and-facts-for-2016/
4. Retrieved March 22, 2017 from: http://www.wordstream.com/blog/ws/2017/01/05/
social-media-marketing-statistics
5. Retrieved March 22, 2017 from: http://www.wordstream.com/blog/ws/2017/01/05/
social-media-marketing-statistics
6. Retrieved March 22, 2017 from: https://www.brandwatch.com/blog/96-amazing-social-
media-statistics-and-facts-for-2016/
7. Retrieved March 22, 2017 from: https://www.meltwater.com/blog/35-stupendous-social-
networking-facts-and-stats/
8. Retrieved March 22, 2017 from: http://www.mediapost.com/publications/article/277564/
survey-finds-90-of-people-skip-pre-roll-video-ads.html
9. Retrieved March 22, 2017 from: https://www.emarketer.com/Article/Marketers-Find-Ad-
Clutter-Challenging/1014237
10. McKinsey, A New Way to Measure Word-of-Mouth Marketing, McKinsey Quarterly, April
2010
11. Nielsen, Global Trust in Advertising, Winning Strategies for an Evolving Media
Landscape, September 2015. See also Retrieved March 22, 2017 from: http://www.
nielsen.com/us/en/press-room/2015/recommendations-from-friends-remain-most-
credible-form-of-advertising.html
12. Thunderhead, Engagement 3.0: A New Model for Customer Engagement, 2014
13. Economist Intelligence Unit, The Path to 2020: Marketers Seize the Customer
Experience, 2016
14. Korn Ferry Institute, Marketing Pulse Survey, 2015
15. Retrieved March 22, 2016 from: http://www.kornferry.com/press/15191/
16. Rosetta Consulting, Customer Engagement, Part 1: The Marketers Experience,2014
17. Rosetta Consulting, Customer Engagement, Part 1: The Marketers Experience,2014
18. Retrieved March 22, 2017 from: http://totallygaming.com/eventblog/ice-live/ibm-
marketing-experts-predict-10-key-marketing-trends-2017
19. Calder, B., and Malthouse, E., Media Engagement and Advertising Effectiveness, (In
Kellogg on Media and Advertising), 2008, pp 1-36.
20. Malthouse, E., and Calder, B., Media placement versus advertising execution,
International Journal of Market Research. 3.02.2010
21. Calder, B., Malthouse, E., and Schaedel, U., An Experimental Study of the Relationship
Between Online Engagement and Advertising Effectiveness, Journal of Interactive
Marketing, November 2009.
22. Millward Brown Research. Retrieved March 22, 2017 from: http://www.millwardbrown.
com/docs/default-source/insight-documents/case-studies/MBD_Viewable-Brand-Impact-
Case-Study_Apr7.pdf See also: comScore, Kantar Worldpanel, Millward Brown, The
Value of a Digital Ad, 2015.
23. IPG Media Lab Research. Retrieved March 22, 2017 from: https://www.ipglab.com/wp-
content/uploads/2016/02/Viewability_FINAL-1.pdf
24. Yahoo Research. Retrieved March 22, 2017 from: http://www.dangoldstein.com/papers/
Goldstein_McAfee_Suri_Ad_Exposure_EC11.pdf
25. Chartbeat research. Retrieved March 22, 2017 from: http://blog.chartbeat.
com/2013/05/20/how-engaged-time-affects-brand-recall/
26. Google research. Retrieved March 22, 2017 from: https://adwords.googleblog.
com/2013/04/the-importance-of-being-seen.html
27. Bannerconnect research: Retrieved March 22, 2017 from: https://www.exchangewire.
com/blog/2016/02/01/exposure-time-a-new-standard-for-measuring-digital-
effectiveness/ Also see: https://www.exchangewire.com/blog/2016/02/01/exposure-
time-a-new-standard-for-measuring-digital-effectiveness/
28. Pre-target and MediaMind Research. Retrieved March 22, 2017 from: https://www.
comscore.com/Insights/Press-Releases/2012/4/For-Display-Ads-Being-Seen-Matters-
More-than-Being-Clicked
29. Nielsen/MOAT/Kelloggs research. Retrieved March 22, 2017 from: http://adage.com/

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 10
 article/digital/viewability-matters-b/308351/ See also: http://www.businesswire.com/
news/home/20170321005432/en/
30. Retrieved March 22, 2017 from: http://adage.com/article/digital/ge-study-proves-
consumers-respond-shared-content/232324/
31. GfK Research for the Association of Online Publishers (AOP), Measuring Engagement: A
White Paper.
32. Retrieved March 22, 2017 from: http://time.com/12933/what-you-think-you-know-about-
the-web-is-wrong/
33. Sanghvi, N., Cost Per Hour Using a Time-Based Currency for Digital Advertising, White
Paper, 5.2015
34. Retrieved March 22, 2017 from: http://digiday.com/uk/economist-plans-scale-time-
based-ad-sales/
35. Retrieved March 22, 2017 from: https://contently.com/strategist/2014/06/16/the-
financial-times-on-why-they-ditched-cpms-for-a-new-ad-currency-time-spent/
36. New York Times, FaceBook has 50 minutes of your time every day. It wants more.
5.05.2016. Retrieved March 22, 2017 from: https://www.nytimes.com/2016/05/06/
business/facebook-bends-the-rules-of-audience-engagement-to-its-advantage.html
37. Retrieved March 22, 2016 from: https://www.meltwater.com/blog/35-stupendous-social-
networking-facts-and-stats/
38. ComScore and Facebook, The Power of Like How Social Advertising Works. 2015.
39. Retrieved March 22, 2017 from: http://expandedramblings.com/index.php/by-the-
numbers-17-amazing-facebook-stats/
40. ComScore and Facebook, The Power of Like How Social Advertising Works. 2015.
41. ComScore and Facebook, The Power of Like How Social Advertising Works. 2015.

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 11
 ABOUT AUTHOR: SCOTT D.
MOORE, PH.D.
Scott Moore is an expert in marketing analytics and leveraging
analytics to shape marketing strategy and drive business results.
He has led and built successful analytic and strategic planning
teams on both the client and vendor side.

Mr. Moore was at Kimberly Clark (K-C) from 2008- 2016, most
recently as Vice President, Global Marketing Research and
Scott D. Moore, PH.D. Analytics. He managed K-Cs global team of market researchers
and analytic experts supporting K-Cs brands. During his tenure,
he was architect of KCs marketing analytics capability, which
dramatically improved K-Cs Return on Marketing Investment,
generated significant profitability returns from pricing and
promotion analytics, and launched K-Cs first dedicated
sales analytic team. He also oversaw global syndicated data
relationships and introduced the global implementation of
standardized business reporting systems.

He was also responsible for the successful reinvention of K-Cs

traditional research function into one around Behavioral Sciences,
introducing and leveraging cutting-edge methodologies in
fields such as Behavioral Economics, Anthropology, and Social
and Cognitive Psychology. This fundamental paradigm shift
encompassed all major types of research approaches (e.g.,
segmentation, copy testing, brand health monitoring, new product
testing) and directly led to deeper and more actionable insights to
grow K-C brands.

Prior to his tenure at K-C, Mr. Moore was Chief Planning and
Analytics Ocer for Arc Worldwide. (Arc Worldwide was a 1300
person marketing services agency owned by Publicis.) He was
responsible for development of Arcs strategic planning methods
and for integration of those approaches across Arcs multiple
specialized capabilities shopper marketing, promotions, digital
advertising, database and direct marketing. During that time, he
led Arcs strategic planning and analytic efforts for Arcs blue chip
global brands, including Disney, P&G, McDonalds, Capital One,
launched the first Blackberry Pearl, Miller Beer, United Airlines,
Comcast, Harrahs Entertainment (Caesars Palace and Ballys), and
Kelloggs.

Mr. Moore received his Ph.D. from the University of Illinois Institute
of Communications Research

CONSUMER ENGAGEMENT: THE IMPORTANT AND OFTEN OVERLOOKED ROLE OF MEDIA ENGAGEMENT. 12