The first reaction of the analysts was wildness.
They all went berserk saying something like "The ad business of Google is tanking". This may not have been entirely
true.
It would be worth mentioning that all media has its de fact measurement authorities. For instance in
television it's A.C. Nielsen and in
radio it's Arbitron. The Internet
has ComScore and the services that the company provides cost about $28,000 a
month. In case you want to know, there is another web-research company called Nielsen NetRatings, but ComScore is
more popular and bigger.
In case a company looks forward to place its ads on the Internet, it will most likely purchase
the information that ComScore provides. Thus they hope to analyze whether to
spend their money or choose another option.
For example ComScore is paid by such giants as CNBS.com and NYTimes.com
in order to identify the level of market
share and sometimes to value their traffic.
"When P&G tells you that you it won't advertise on your site
until you hit a number on ComScore, you have to ask, 'How can I improve my
ComScore numbers?'" outlines John
Battelle, founder of Federated Media,
an online-ad network with
headquarters in the Bay Area. This is why ComScore resembles a referee of a web
ad game that is currently valued at
$25 billion and the number is continuously increasing. The company's biggest disadvantage is that it
undercounts audiences.
"Some of the criticism I understand. But some of the stuff is just really irritating," said
ComScore's co-founder, Gian Fulgoni. Together with his partner Magid Abraham,
they attempt to clarify why their company is misunderstood. Fulgoni stated that
the report ComScore made on Google, though highly
criticized, proved to be quite accurate sometime later. He said that
analysts made incorrect conclusions
from the information that the company provided. The report did not
present international clicks.
The web-research firm maintains over a million of volunteers who agreed
to offer their online activity for
monitoring. Surely they expect to receive gift certificates and different other compensations for their generosity. This strategy looks similar to
the one that Nielsen has does on TV viewers since the middle of the 20th
century. Due to privacy issues and technical
reasons today's contemporary data environment still has to utilize old-school panels in order to monitor what users are doing online.
However, the disadvantage of the panel approach lies in self-selection. Wealthy users are not motivated by money and gift
certificates as much as others.
In response, Fulgoni says that the company
performs phone survey of the panels and wealthy correspondents are
motivated differently. For instance, they are offered to take part in a
plant-a-tree charity in
In regard to the smaller sites
that the company doesn't take into account, ComScore representatives stated
that the methods developed by the firm
are suitable to larger websites, due
to the fact that small websites do
not always appear to be accurate. Fulgoni mentioned that that is a disadvantage
of statistics and not of the
company.
"People who don't understand statistics will ask, 'How can you
possibly project what 200 million people in the
In the meantime the research
company provides a service that offers audience data. Although unwillingly
bust most businesses accept it.
Despite the fact that the company's shares were rather unpredictable, they went
up from $17 to $42 during 2007. ComScore's profits continue increasing and the business registers a steady
development.
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