Online Ad Sales Handover Format - Download as PDF by jpl19431


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                                Vendor RFI


This document provides vendors interested in supplying audience
measurement services to the Online Publishers Association with a guide for
first round presentations to the OPA Measurement Sub-Committee.

The following process will be followed:

   •   May 2010: Initial presentations, informal discussion and brochures /
       proposals delivered from Vendors in response to this document
   •   June 2010: Vendor shortlist vote and delivery of full RFP to vendors
   •   July/August 2010: RFP responses and presentations
   •   September/October 2010: Selection of Vendor for 2011 - 2013 and
       contracts signed.
   •   November 2010 - February 2011: Handover to new vendor.

Vendor Context

The following information should guide initial vendor presentations:

Current view of ZA digital market

We encourage vendors to do their own market research. The following points
highlight the current state of the industry from the OPA's perspective:

   •   There has been strong growth in year-on-year advertising spend, with
       almost R500m expected to be spent this year. This would place online
       spend above cinema in terms of total ad spend in South Africa. The
       R500m is projected from Adex figures, and it is important to note that
       there is a lot of spend taking place unreported through Adex on non-
       member websites as well as international media such as Google and
       Facebook so the total amount is likely to be much higher.
   •   The industry is maturing and expanding in all the key areas required to
       stimulate further growth. Traditional media is investing heavily online;
       new media are emerging to compete and innovate; users are
       becoming more sophisticated; access on all device types is increasing;
       the mobile arena is very exciting due to high device penetration across
       all demographics.

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•   Broadband prices are dropping rapidly, with most vendors announcing
    uncapped ADSL packages for under R250 p/m. This will ensure that
    the shrinking set of users still on dial-up are able to affordably migrate
    to broadband connections and we predict increased 24/7 access from
    home and work.
•   There is a strong digital service sector actively growing the market with
    leading web development houses, advertising sales houses; PPC/SEO
    specialists and others who create a thriving and dynamic digital
•   Traditional advertising agencies are increasingly active in the digital
    space; they are the primary targets for education around digital
    marketing by the OPA to divert more spend from other mediums to the
    digital space.
•   Considering that digital only receives approximately 2% of total ad
    spend compared to other mediums, there is significant room from
    growth in the short and medium term as we catch up to other markets.
•   We have moved beyond the traditional web into use of cross-platform
    strategies including websites, mobile sites, web and mobile
    applications, widgets, email, video, audio, messaging clients and more.

Below are some highlighted figures from the "Online Media in South
Africa" Report, conducted by World Wide Worx in 2009. Please contact
them directly if you would like to purchase the full report.

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History of OPA (from a measurement perspective)

   •   The OPA was founded in 2003 by South Africa's largest online
       publishers to create a common measurement currency on which they
       could sell advertising. It also started to educate the market around
       what online measurement is and why it is important.
   •   Red Sheriff was appointed in late 2003 as the audience measurement
       vendor. They were later acquired by Nielsen Online.
   •   The OPA has used the Red Sheriff / Nielsen services since inception,
       and the market reports are generated through the Market Intelligence
       product. Site Census is a bundled web analytics platform that is used
       by some members in conjunction with other analytics tools which they
       use internally.
   •   In 2008, a new executive committee began actively driving
       participation from non-publishers and the inclusion of small publishers
       in the organisation. The result of this initiative has seen the
       membership grow significantly to almost 100 members.
   •   In 2010, a measurement sub-committee was created to handle the
       vendor review process with representatives from the various member

OPA mandate and future direction

The OPA mandate is a simple yet mammoth task - to promote increased
digital spend in South Africa and to represent the collective interests of the
industry. The key tools we use for this are education and engagement on top
of a trusted set of measurement data. It is likely that the name will change in
the coming years to better reflect the growing membership-base that includes
the marketing side of the industry; who are key stakeholders in us achieving
our mandate goals.

From a measurement perspective, due to the small size of the market and
reputation of the OPA, there is an opportunity to measure most digital activity
in the country with a single currency if we can use an effective, affordable
measurement partner with the same ambition.

Membership and metrics and trends

The following two tables provide some base data for vendors to get a sense
of how much there is to measure and how many customers and sites are
currently being serviced.

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Membership & Sites

                            Publisher            Agency              No. of tagged
                            Members              Members             sites.
2008                         56                  19                  612
2009                         84                  34                  668
2010                         57 **               32                  715

** The drop in publishing members is due to mergers and consolidation that
took place in the market as well as the suspension of some non-paying


Total Audience is traffic to sites from all over the world, including South Africa
(ie. You need to base your costings on these figures). Domestic Audience is
the slice of the Total that segments local visitors, which is what media
planners use to determine local reach.

Total Audience                    April '08           April '09         April '10
Page Impressions                   342,080,195        359,780,170          431,167,420
Unique Browsers                      8,890,670          11,422,423           18,901,366

Domestic Audience                 April '08           April '09            April '10
Page Impressions                   271,135,628        294,739,667           330,161,375
Unique Browsers                      5,254,911           6,047,309           10,048,434

Please find two monthly reports attached, our most recent and one from a
year ago. You should be able to get a good grasp of the membership base
from these reports.

The future of the SA digital market

This is, of course, impossible to state without a disclaimer; but there are
some key measurement related trends that vendors will need to bear in mind.

They are:

   •   Africa (including South Africa) is getting more fibre. There are a
       number of large under-sea cables that have already landed or are due
       to land in the next 24 months. This means more bandwidth, more
       affordability, and more competition. Fibre cable is also being laid

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       between cities throughout the continent, which should improve local
       content provision.
   •   Mobile browsers will outstrip PC-based access. This is inevitable, if not
       already the case. An effective mobile measurement strategy and
       platform is essential for our market.
   •   Strong media and more entrepreneurs. The capacity to spend is there,
       with smart young people driving the industry at all levels. The cost of
       doing business in this space is decreasing as bandwidth costs drop and
       free and affordable publishing tools become readily available. This will
       ultimately lead to further growth.
   •   The OPA hopes to centralise measurement in order to create a national
       set of metrics for digital audience data through a single vendor. This
       will ensure that members receive the lowest possible costs for
       measurement services and it will create a very viable and sustainable
       opportunity for the selected vendor, despite our relatively small


We require that vendors provide a written response to this RFI in proposal
format. Optionally, we welcome vendors to come and present to the sub-
comittee in both Cape Town and Johannesburg on their solutions, reputation
and approach ahead of the short-list and RFP process.

The following must be included:


Provide a brief overview of the company, your history and experience in
servicing audience measurement needs at an industry level.


Details of products and services that you feel are relevant to our needs.
Screenshots of key interfaces and reports would be very helpful. The
minimum requirement is a suite to supply audience measurement data,
ranking, and segmentation with demographic surveys.


Please ensure you cover the following:

   •   The metrics you measure (eg. Page Impressions, Unique Visitors, Time
       on Site)
   •   Your tagging approach for websites, mobile and other channels you
       may support (eg. Apps, Instant Messaging, Ad Networks)

                                                                         Page 6 of 8
   •   Your view on site-centric vs panel-based audience measurement, and
       how you would implement each or a hybrid of these methodologies.
   •   How and where the service is hosted, and if there is any investment
       required in infrastructure?
   •   Preventing abuse - How does your system ensure that people report on
       traffic they legitimately own and tag correctly?
   •   Rankings - How are your rankings defined (Publisher, Brand, Site,
       Category etc?)


Explain how you would service the OPA directly, support our members, and
whether you have sufficient resources in South Africa to do this


Provide an overview of how we would migrate our members to the new
solution and, critically, how you would provide access to historical data from
Nielsen for comparison.


Please confirm your data policies and if exporting and accessing data is
possible. We feel strongly that the data generated by our members should be
owned by the OPA, and we may want to publish and share data if it serves
our mandate.


Please explain your pricing model for the services and products on offer. This
document provides all the information on membership and traffic to give you
an indication of costs over the 3 year term. Please factor in that while you will
have a contract with the OPA as a central body, you will be billing each
member directly and have a separate contract with each of them for the
service. Publishers will be required to use your services in order for them to
remain OPA members.

RFI responses that do not propose a pricing model and indication of costs
assuming the current membership figures will not be entertained.


Please give us a brief overview of where you think internet audience
measurement is headed, and how you plan to respond to the opportunities
and challenges you face.

                                                                          Page 7 of 8

Provide details of future products and new features that you have in the
pipeline. It is important to us that the selected vendor show a commitment to
regular improvements and continued development of their platforms.


Written responses must be delivered/presentations should be made by 5 June
2010. Please liaise with the OPA secretary, Theresa Vitale
(, to make the necessary arrangements.


Questions to clarify points in this document can be directed to Josh Adler,
OPA Head of Measurement, on

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