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    • 02/07/18
    • Technology
    • Media Measurement
    • Global
    • English

    How will blockchain play a part in the future of media currencies?

    As the old saying goes: making predictions is always difficult, especially about the future. However, here is a given: there will be a lot more discussion about blockchain over the coming year. So many people have different views on how blockchain will affect the marketing and advertising industry that the potential applications of this nascent technology seem almost limitless. So instead of gazing too hard and long into our crystal balls, perhaps now is a good time to take stock and focus on some of the more realistic developments and what they mean for the industry. Following an in-depth review with leading industry stakeholders1, about how media currencies might look in five years, we discussed how blockchain might work and how it would change the way we do business. Previously published in MediaTel, we looked at the case for “The rise of the Super JICs” and a companion piece, “Chaos replaces order” in which tech drives a more anarchic, decentralized future scenario. Here we take a deeper look at how blockchain technology might be applied to the ad industry and how that might affect the future of media currencies.

    Firstly, what is blockchain?

    In essence, blockchain is a new way to store information. It is a digital record of all transactions related to a product or service. These transactions are recorded and shared among a secure, decentralized network of stakeholders. Certain attributes make blockchain technology particularly attractive to the advertising industry. It is immutable – “blocks” of transactions are continuously time-stamped and verified by the network; and once added no single party can alter it. It is shared – every party in the network can see everything, creating a transparent, “single version of the truth”. It is secure – it is encrypted so that only those agreed parties in the network can access it. At this early stage of adoption, many have been quick to jump on the blockchain bandwagon, resulting in some quite far-fetched applications which the industry may never embrace. However, some interesting opportunities were discussed at our roundtable, which could be exploited sooner rather than later. Two broad applications immediately spring to mind:
    • The regulating of agreements for buying and selling ad inventory
    • Increased consumer control over the content they are exposed to. Could blockchain replace ad blocking?
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    Regulating the transaction of ad inventory

    Given the current issues around the “murky” supply chain in digital, it would seem that blockchain protocols are ideally placed to help provide greater transparency and accountability.
    • They could be used to regulate the agreements made between advertisers and publishers and the myriad of third parties that make up the supply chain
    • They would record all the transactions at every stage of the process
    • Only agreed parties would have access to the blockchain and be able to execute what is in the blockchain
    • All transactions would be transparent to the network
    The clearer governance that blockchain provides would no doubt go a long way to stamp out fraudulent activity such as kick-backs and arbitrage, since any re-selling of inventory would need to be agreed by the whole network. So the increased transparency would help negotiation of deals, and also help to regulate agreed contracts. Everyone in the chain would know what they have agreed to and what is delivered. One question, however, is how disputes might be settled if there are disagreements. Digital ads are executed in fractions of a second, but blockchain is much slower – so it is difficult to see real-time verification any time soon. However, it could still be a very useful post-campaign validation tool, but timestamping needs to be accurate to the millisecond, in order to marry financial transaction with ad delivery. This area also presents many additional interesting applications, if blockchain is opened up further to include consumers.

    Could blockchain replace ad blocking?

    In the future, consumers could be given more control over the type of campaigns and content they want to be exposed to. Consumers could choose which blockchain networks they want to be a part of and hence what content and ads they receive. This would place more power in the hands of the advertisers who can create deeper relationships with their customers. An added benefit to this could be a significant reduction of ad blocking because instead of blocking ads from certain platforms, the consumer can choose which advertising they want to receive. Ultimately, brands could only interact with consumers as part of agreed networks in the blockchain. Other areas of development in this area could be to verify activity and blacklist against fraudulent sites and non-human traffic. Blockchain would guarantee the validity of clicks between consumers and advertisers on verified sites. However, there are two key issues here. Firstly, one of trust: will consumers believe their data is secure and that brands will only execute on what has been agreed? Secondly, for everything to join up, there needs to be widespread adoption — multiple suppliers along the chain need to sign on the blockchain to make this work.

    Our conclusion

    We clearly have a long way to go before we get to this point – probably at least five years – but the incentives are there. If we can create a transparent supply chain, reduce ad fraud, reduce ad blocking and provide the protocols for greater accountability, then blockchain becomes a very attractive proposition. However, it’s worth bearing in mind that blockchain is unlikely to replace the media measurement systems we currently have in place. Blockchain won’t create ratings, segments, impressions and reach. Rather, it will verify whether targets have been met and confirm payment. So while blockchain promises much change, the building blocks of media measurement will remain subject to their own evolution, as outlined in our previous two opinion pieces. hbspt.cta.load(2405078, 'a152c586-99ec-484f-b429-dd8155224115', {}); Footnotes: 1How it all started: voices from across the industry. GfK and IAB Europe invited industry representatives to a round table discussion on how media measurement might look in five years’ time. Participants included: digital platforms Google, Facebook and Oath; global ad agencies Publicis and Dentsu; media owners from broadcast TV and digital; a programmatic audience platform; a national advertising association and the German JIC (Joint Industry Committee) for TV audience research, AGF.  It is the first time we have been able to discuss these issues with such a broad group and, from the ensuing debate, three possible scenarios for the future became apparent:
    • The rise of the “Super JIC” as reinvigorated, neutral data arbiters
    • Chaos replaces order, with data being controlled by different competing entities large and small
    • Technological self-regulation of data, likely in the form of an adaptation of Blockchain technology
    • 01/18/18
    • Media and Entertainment
    • Media Measurement
    • Global
    • English

    Why is cross-media so important?

    Why do we need to track consumers across all channels and devices? Why can’t we just track their behaviour on one device, for example? Well, the answer is that we can, but then we’d be getting a false view of their real behaviour. We’d only see one aspect of how, where and why they are interacting with your own, or your competitors’, promotional content, products or services. A typical customer journey usually involves many stages from discovery to purchase, using many different touchpoints across multiple devices. Unless we analyse all of those data traces, we will not get a truly accurate single consumer view. The challenge is to think ‘cross-media’ right from the start, and to break up silos by using digital as the connector.

    Recent cross-media trends from 8 countries:

    We run regular research looking at device use and online behaviour in 15 countries. This is passively collected behavioural data, which creates a valuable and easy-to-use round-up of the cross-media metrics that matter. In this blog, we’ll share some top trends from eight very different markets: Germany, Mexico, UK, Poland, Russia, Indonesia, Brazil and Netherlands. hbspt.cta.load(2405078, '6bd01b10-fc09-4b4c-9251-70a83828189a', {});

    4 cross-media trends from our full report

    1. Multi device is the norm What is abundantly clear is that tracking data from single device use cannot provide a full enough picture to be reliable or truly useable. While we track the use of smartphones, tablets and PCs, it is interesting to see how these devices are used in combination. For example, how many smartphone users also use tablet and/or PC? Singular device usage still exists, but nearly three quarters of the online population in the eight markets we have analysed use at least two or more devices There is a higher percentage of single device use in some emerging markets. For example, in Indonesia, almost 4 in 10 (37%) of the online population use smartphone only. This is largely due to limited availability of fast landline internet, so that desktops and PCs have not penetrated the market in the same way as in Europe. The price decrease for smartphones and cheap data has been much faster than investments in landline infrastructure. Not only is a high share of mobile usage for smartphones, but also smartphones and tablets – 28% of the online population in Indonesia use these two devices combined. In addition, Poland stands out as having the highest percentage of PC-only users (30%) compared to the on other markets. However, in a developed market such as the UK, nearly 4 in 10 (39%) of the online population use smartphone, PC and tablet, while only 7% use tablet and PC. In Italy, half the online population use both PCs and smartphones. 2. Most popular online activities – by country, and by device Based on net reach, the top activity that people perform across all devices (PCs, smartphones and tablets) is reading news or information, or accessing search sites. The exceptions for this are Indonesia, where shopping is the top activity across all devices, and Brazil, where communication is most popular. In Brazil, communication apps are particularly popular for messaging and emailing. When we view devices separately, there is clear division in use between PCs and mobile devices. People are using PCs for reading news or information and performing web searches, and using their tablet or smartphone for communication and shopping. A key takeout here is that shopping is the top activity on mobile devices in four out of the eight countries, highlighting the importance of mobile advertising for eCommerce and in-store shopping in these markets. This prevalence of mobile highlights the importance of mobile-enabled webpages and apps with good UX to support eCommerce. 3. Looking at duration shows key differences between countries Looking at duration of activity (average hours per month, per user) for each category, we see that social networking and communication are the top ranked categories in terms of time spent across all three devices. However, there is a lot of variation between the different countries. For example, ‘communication’ is the top activity on mobile devices in both Indonesia and Germany. But in Indonesia, the duration is 27 hours – compared to 16.4 hours in Germany. And people in Mexico spend more than twice as much time on social networking as people in Poland (30.3 hours compared to 14.6 hours, respectively). By looking at duration, we also see that, while we are all addicted to our smartphones, this is especially true in certain countries. In Poland, the average online user spends 34 hour per month on their smartphone – but in Netherlands this rises to nearly double that, at 64 hours per month. 4. Most-used websites and apps (based on reach) It’s probably no surprise to see that Google is the number one most-used website or app, based on reach, in seven of the eight countries presented in this blog. The exception is Russia, where Yandex takes the top spot (Yandex is a similar platform to Google which includes Yandex Search, Yandex Mail, Yandex Maps, Yandex Images, Yandex News etc, and even includes a taxi app very similar to Uber). Similarly, Facebook is the number one social network site, except for Russia where it is VKontakte (VK). When it comes to streaming, however, the top site is the same across all eight countries: YouTube.

    Achieving a single customer view

    Integrating data from all sources in one platform allows us to connect the dots and gain a true picture of our consumers. Ultimately, data trails are generated by real people that leave data in many different silos. Digital is the connecter that helps open these silos as all the data traces are left in the digital world. By opening these silos and integrating data from different sources we can achieve that all important single customer view. Pawel Gershkovich is a Global Senior Product Manager at GfK. To share your thoughts, please email pawel.gershkovich@gfk.com or leave a comment below. hbspt.cta.load(2405078, '6bd01b10-fc09-4b4c-9251-70a83828189a', {});
    • 01/11/18
    • Media and Entertainment
    • Media Measurement
    • TV Audience Measurement
    • Global
    • English

    TV Azteca launches GfK Appreciation Panel integrated with digital behavior data

    After a successful pilot, TV Azteca has signed a contract with GfK Mexico for a content appreciation panel. This is the first GfK Appreciation Panel in LATAM and the first Appreciation Panel to be integrated with digital behavioral data.
    • 01/04/18
    • Financial Services
    • Media and Entertainment
    • Retail
    • Technology
    • Media Measurement
    • Shopper
    • Trends and Forecasting
    • Consumer Life
    • GfK-MRI
    • Global
    • English

    At CES, GfK will help brands target a new generation of "beyond digital" consumers

    At this month’s CES, GfK will draw on exclusive research into the Now Generation (ages 15 to 25) to help brands succeed with tomorrow's most valuable consumers.
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