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IAM Explained

Why Ireland needs an independently audited Internet Audience Measurement system?

The past ten years have seen a six fold increase in the number of adults using the Internet in Ireland; from little over 300,000 to more than two million today. With greater broadband penetration across the country and the advent of mobile broadband, Irish consumers are spending more and more time online.

And where consumers’ attentions goes, advertising is soon to follow. Online advertising has been growing rapidly in Ireland in recent years, but at approximately 3.5% of total ad spend, its share of the overall advertising spend has, however, lagged behind that of most other Western European markets.

The adoption of Internet Audience Measurement (IAM) systems in other markets such as Denmark, Finland and Norway has proven that a standard measurement system leads to advertisers spending more of their budgets online.

The primary reason that the online medium in Ireland has failed to see the transfer in advertising expenditure that its share of consumers’ attention time merits, is the lack of regularly published, independently audited data. Carat, the leading media and communications agency, has identified the lack of regularly published independently audited data as one of the main reasons why online advertising is less favored in Ireland. See Carat's Online 2008 forecast.

  Going online: percentage of adults using internet in Ireland
 

At present, most online publishers provide some information relating to their sites' traffic. However, the proliferation of audience measurements techniques - visits, hits, impressions and so on, can lead to lack of credibility in the mind of the Irish media planner. This lack of uniform audience measurement is holding Ireland back from experiencing the levels of growth in online advertising seen in other markets.

Some of the leading Irish websites currently have their log files independently audited but different websites are audited at different times, and the figures are not published on a regular basis to facilitate comparison across sites. These audits are often conducted selectively, usually at a period when traffic peaks for the site being audited (e.g. January for recruitment sites). In addition smaller players state that they can't afford the service.

Another measurement method is the research-centric approach i.e. panel data, which does not incorporate site-centric data. Unlike traditional mass media, the Internet needs a different approach to take full advantage of its interactive potential.

While panel data has traditionally provided a very effective and accurate measurement system for television, radio and press; doubts exists about over reliance on this approach owing to the highly fragmented nature of the Internet. Most panel-based measurement systems use small sample sizes to represent the behaviour of the much lager Internet population. The problem of small samples size is also often further exacerbated by offering incentives to panel members which can result in sample bias. Some site owners complain of under counting by research centric IAM which caters better for websites with huge volumes of traffic. They claim that their audience share can be under represented by panel based measurement, while others complain that they fail to appear at all.

Many sites favor having their site-centric data published by an independent body which would provide a more complete picture of Ireland’s internet usage habits. This, in turn, will facilitate comparisons for advertisers and media buyers.

Transparency is the best way to gain the trust of advertisers who want verifiable, comparable metrics to guide their advertising campaigns. Media buyers also want independent measurement that will provide a clear picture of Internet usage across all publishers’ sites and for it to be published regularly. This allows them to conduct more targeted advertising campaigns with more measurable results. Such measurability means a superior ROI from online advertising campaigns.

   
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