"Brand advertising and digital" an IAB Europe - White Paper
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This document discusses the effectiveness of digital advertising for brand building campaigns. It argues that while digital is often seen as only effective for direct response goals, display advertising can positively impact brand metrics like awareness, perception, and sales. Research shows that display advertising affects consumers throughout the entire purchase funnel, and is 20 times more likely to drive online behavior than just clicks. Various studies demonstrate digital advertising's significant impact on brand metrics and how its targeting capabilities allow it to reach audiences more efficiently than traditional media. The document advocates for shifting more marketing budgets to digital and using cross-media strategies to maximize effectiveness.
"Brand advertising and digital" an IAB Europe - White Paper
- 1. Brand advertising and digital An IAB Europe White Paper
- 2. Introduction Growing global competition, saturated markets and media fragmentation are putting more pressure on marketers to justify how they spend their marketing budgets. Digital has proved to be a unique and flexible medium that can deliver across all areas of marketing communication and within the entire purchase funnel. We’ve come a long way since the first online advertising banner was sold and displayed. What began with the humble fullsize banner has evolved into hundreds of online ad formats. New media advertising offers multiple opportunities and benefits that traditional media do not; it is the ability to target audiences precisely and accountability through measurement that we are most concerned with in this white paper. Yet despite its measurability for direct response campaigns, digital is often misunderstood, misrepresented and undervalued in the majority of media plans focused on brand building and awareness campaigns. As with any new frontier, running branding campaigns online offers both risks and rewards to the advertiser. Those who prefer to stay with their familiar and comfortable marketing plans risk not only missing out on today’s new media savvy audiences, but also in being out-performed by those who are already experimenting with digital brand advertising options. There is a huge demand from the advertising industry for more detailed information, research and case studies that prove the strength of digital for online branding. This white paper is designed to provide useful evidence of how digital campaigns can support brands online by reviewing valuable and up-to- date insights from the most respected market players and service providers in our industry. On behalf of IAB Europe and the Brand Advertising Steering Committee, I hope this publication will help advertisers, marketers and agencies to understand the use and impact of online for brand campaigns. Eric Urdahl Chairman of IAB Europe’s Brand Advertising Steering Committee Head of International Business United Internet Media AG Brauerstrasse 48, D-76135 Karlsruhe - Germany [email protected] Published June 2010
- 3. Contents Executive Summary 1 The media landscape has changed 2 Measuring this new landscape 3 Is the click dead...? Online display affects the entire purchase funnel Brand Effectiveness 5 What impact does online display advertising have on consumers’ awareness? How does display advertising influence consumers brand perception? What impact does online display advertising have on sales? What’s the optimal ad frequency for increasing brand awareness when advertising online? Compared with television‘s brand impact, how does online advertising perform? Formats 7 Does size count? Rich media and engagement Are video ads the next big thing? Video length should depend on objectives Comparable effectiveness but higher efficiency for online video ads Targeting 9 Cross Media 10 Shifting budgets towards online Cross media advertising is effective Appendix 11
- 4. Executive Summary For many advertisers digital is already a preferred channel for delivering sales-related and performance-oriented objectives; not only are results and ROI measurable, but they can be improved during a campaign. However relying solely on ‘click’ results to measure display advertising campaigns is misleading. Put simply, the contribution display advertising makes to the majority of audience engagement is not recognised. This is particularly true for brand metrics and conversions and overall, for evaluating the effectiveness of online brand campaigns. Even search relies on digital brand awareness campaigns. A quarter of conversions are search related and without supporting brand advertising, these direct marketing campaigns would be far less successful. Display advertising affects the entire purchase funnel. It has been shown to be 20 times more likely to drive online behaviour than clicks can measure. Many studies from leading players and research companies in the sector have shown that display advertising has significant impact on brand awareness, brand perception and ultimately on sales, both online and offline. Digital media consumption has not yet overtaken television as the most effective vehicle for reaching large audiences in a short period of time, but it is well on the way. Compared with television, online display advertising generates higher engagement and efficiency rates (based on the development of larger and more impactful ad formats). Creative rich media formats deliver engagement and ‘dwell’ better than simple banner ads. Video advertising has experienced significant growth in the past two years and can have a considerably higher impact on brand awareness, brand favourability and purchase intent than other non-video formats. Targeting technologies can also make the most of user data, boosting advertising efficiency and effectiveness by controlling frequency in the target group. These techniques also add value through other means, including allowing messages to be tailored to specific audiences, limiting wastage and positively impacting brand metrics at lower costs than non-targeted campaigns. By comparison, traditional media are becoming less able to reach all audiences and specific target groups - such as younger consumers - across the day. Placing more emphasis on digital within the media mix has shown significant impact on brand metrics and sales. 1
- 5. The media landscape has changed The number of internet users continues to grow. In 2009 already 50% of all European households had access to the internet. The usage time has also increased significantly in the last few years. While Europeans spent an average of 9 hours per week online in 2009 it is expected, that by the middle of 2010 Europeans will spend more time on the internet than in front of their television sets.1 Classic media consumption is shifting to internet connected devices – PCs, smart phones, games consoles. We no longer lean back for all our entertainment – much is consumed online, wherever we happen to be. And whether audio-visual or text, informative or emotional, the internet can bring together the strengths of other media channels to the audience. There is however still a major gap when comparing ad spend between online and offline media. Looking at media meshing trends, online even takes a part of time spent with TV. Today 70% of Europeans use the internet and TV simultaneously2. Some audience groups elusive to traditional media such as TV and radio are prevalent online - 14-19 year olds in particular are heavy users of the web and social media. And whereas traditional media has its peak times, such as drive time on the radio during the morning commute to work and 8-10pm on TV in the evenings, the internet delivers reach to audiences at different times of the day. This development has not come to an end. The more consumers have convenient access through high-speed connections and a range of connected devices, the more they will adapt their media consumption habits. Advertisers must therefore understand these changes and evolve their marketing strategies to reach their target consumers wherever and whenever they are using media. 2
- 6. Measuring this new landscape By its nature, brand advertising is about reaching consumers The problem with a click-oriented evaluation approach is that and presenting a brand story to them with a view to changing it ignores the contributions of any previous ads and only their longer-term opinion of the brand. So whilst measuring focuses on a short period of time at the bottom of the purchase interaction with an ad is a positive measure of effectiveness, it funnel. The exposure to online display ads may increase the is far from the whole story of how it impacts consumers. If we likelihood that a consumer will make a site visitation; click rates think about TV advertising or print ads while the campaign has do not take into account that convincing consumers to take one aim of shifting perceptions, the ROI of the campaign is action is a process which takes place over time. measured by the number of people reached – how many people saw the advertising, and how many times they were Along the purchase funnel, marketers must start by grabbing exposed to it. Huge global advertisers measure not on the users’ attention, creating preference and then finally raising value of sales that are generated, but how many people saw intention to act. As shown in Figure 1 depending on the the brand message, and how their opinions changed. publishers’ category, web sites reach consumers at different times prior to conversion. Entertainment sites for example Taking the same principle to online, to measure the drive consumer awareness and are often reached days or weeks effectiveness of branding campaigns online predominantly on prior to conversion. Search engines on the other hand tend to their click through rate (CTR) is missing the point. generate purchases because users are highly involved whilst searching for specific key words.7 This should mean that the nature of brand campaigns means that a much simpler measure of campaign success - reach and frequency - can be used. From there, advertisers can calculate Figure 1 Median Ad Delivery Time by Site Category Gross Rating Points (GRP). 35 However, it’s not as simple as it sounds. The nature of the Photo internet means that much more engagement and interaction is Media Days before Conversions currently possible than in other media. If we compare a static 28 Real Estate banner ad and a small interactive game ad both on the same Directory Music Email webpage, we may see that they have the same reach and Weather News Video Lifestyle frequency, but by the nature of the interaction that the latter Entertainment Social 21 offers, the brand effect may be much greater. For this reason, Food/Wine Sports Technology measures of engagement are also under discussion, with the ISP City Shopping Games concept of Dwell just one of those. Travel Kids Ad Network Jobs Telecom Portal 14 Finance Is the click dead...? Most marketers still rely on clicks to justify their digital media 7 Auto spend, but, as Eyeblaster research has shown, internet users interact with nearly 10% of all rich media ads, compared to less than 0.4% they click on.3 Today all clicks generated on Search Engines Affiliate 0 the internet can be attributed to only 16% of internet users – in other words, a small, unrepresentative portion of the total online population.4 So the question is, are those the users an advertiser would want reach with their communication? As Interviewing 700 of the leading U.S. marketers, Bain8 found United Internet Media - Germany’s biggest digital sales house - that the following metrics were most important in order to has found out, the average heavy clicker is aged 40-59 and has validate the effectiveness of online brand-building campaigns: a low/medium education and income level.5 1. Brand awareness A further challenge evolving around the supremacy of the click 2. Favourability for measurement at present is that between 93-95% of all 3. Likelihood to recommend audience engagements with display advertising receive no 4. Purchase intent credit when determining the brand campaign effectiveness. Today, consumers are exposed to multiple ads over time prior For advertisers it is vital to consider all the touch points to conversion, yet only the last ad seen counts for the consumers see prior to conversion. Web sites located in the conversion (so called “last ad” model).6 upper funnel have shown to be valuable sources of new 3
- 7. Measuring this new landscape prospects which feed traffic to the lower funnel sites. By taking all touch points affecting brand metrics into account, Key facts at-a-glance advertisers are able to calculate an accurate campaign ROI. The click has been proven not to be an appropriate Online display affects the entire purchase funnel measurement tool for every online campaign When relying on click rates the majority of audience By analyzing 1,300 campaigns from 207 advertisers in 21 engagements do not receive any credit for their vertical markets, which included both display and search contribution to brand building advertising, Eyeblaster9 has shown that online display The most important metrics for brand building advertising contributes a greater share of conversions than campaigns are brand awareness, purchase intent, search engine advertising. They concluded that 72% of likelihood to recommend and favourability conversions arrived as a direct result of the display campaign; Analysis of more than a thousand campaigns shows in only 23% of the conversions were a direct result of search 72% of all cases display advertising initiates conversions. activities. Only 23% of conversions were a direct result of search activities. Figure 2 The Role of Search and Display in the Funnel 2010 Awareness Display Favorability Consideration Search Intent to Purchase Repeat Purchase Purchase Display initially generates interest for that brand or product, since consumers knowledge results from a variety of marketing touch points along the purchase funnel prior to initiating a search query (Figure 2). Atlas research for Alltel Wireless indicated that search was credited with 35% of all conversions via the “last ad” model, although 98% of all touch point engagements prior to conversion came from online display ads. Taking all consumer touch points into account, Atlas showed that 60% of Alltel’s sales credited to search (with the “last ad” model) should be reattributed to online display.10 4
- 8. Brand Effectiveness A number of relevant research studies have been conducted in found visitation to the advertiser’s web site was lifted by at multiple markets to prove digital advertising effectiveness. The least 46% over a four-week period. The likelihood of searching Q&A structure below aims to cover a few of the main issues for the advertiser’s brand was increased by at least 38% over around the use of online for brand-building and other the same four week period.18 comScore’s European findings marketing aims. seem even more impressive, showing that web site visitation is increased by 72%, and brand search by 94% on average.19 What impact does online display advertising In the US market the Online Publishers Association also found have on consumers’ awareness? that about 20% of consumers searched for brands they saw advertised on one of the country’s top 50 web sites. They also United Internet Media carried out a benchmark study analysing showed an increase of nearly 30% in site visitation and 55% 73 case studies with over 100,000 participants. In their study more time spent on the brand’s web site due to online they found an average brand awareness lift of 6% and branding campaigns on average.20 significant increase of aided brand recall of 26% due to online campaigns. Looking across several sectors, they also found an What impact does online display advertising impressive increase in recall of the online ads. The automotive, have on sales? FMCG, retail and health sectors showed incremental increases between 43% and 63%.11 Looking at other campaigns, Studies analyzing both online and offline retailers´ sales BMW’s Efficient Dynamics Technology campaign on Yahoo! comScore found that the exposure to an online display ad led Spain increased awareness by 16% and was able to to an average lift of 27% for online sales and 17% for offline communicate the benefits of the complex automobile sales.21 MetrixLab’s study on the online campaign for the technology.12 In the Spanish market MetrixLab found that a blockbuster film X-Men showed that internet users seeing a large-formatted ad on YouTube led to an increase of 19% of large format ad had an 8% higher desire to see the movie top-of-mind awareness and 21% higher spontaneous pre-release. Post-release research pinpointed a 10% increase awareness.13 A product innovation campaign introduced by in cinema visits among those who saw the ad.22 US research McDonald’s even showed 28% aided recall on Yahoo! Spain conducted by Nielsen analysed 400 digital campaigns and and an 82% brand association.14 found a 32% average increase in offline sales, whilst also showing that online display advertising was able to create a Online display advertising can instil positive brand memories 157% average ROI.23 24 hours post exposure15 and that impact persists over time. A Nielsen Online case study has found out that an online video What’s the optimal ad frequency for increasing ad had 54% recall the day after exposure. After six days recall brand awareness when advertising online? was still on a level of 44%, the same recall television had only one day after exposure.16 Microsoft Advertising’s European campaign research for the motion picture “Get Smart” shows a clear impact of frequency How does display advertising influence on brand awareness. While aided brand awareness rose by 3% consumers brand perception? after one contact with an online ad, six or more contacts led to an increase of 31%.24 Looking at 42 studies with almost The view through is a performance indicator that is 52,000 respondents, United Internet Media found similarly complementary to the click. It captures the impact of online that a brand awareness lift of 22% can be achieved with six to advertising impressions on attitude and future behavior. seven contacts.25 Regarding campaign metrics such as ComScore has proven that, when digital campaigns have a purchase intent, impact seems to start increasing at a branding objective, optimising for high click rates does not frequency of four to nine ad contacts.26 However, increasing necessarily improve campaign performance.17 The researchers awareness may not be as vital to each sector: for CPG the aggregated 139 brand effectiveness studies in order to find out purchase process is typically short due to low involvement, so what impact online advertising has on consumers future campaigns may not require intensive expenditure in building behaviour. By analysing ad exposure they found that seeing an up awareness. Advertisers are able to cap online frequency, ad increases the likelihood of visiting the advertiser’s site and meaning users are only exposed to an ad a specific number of over time the likelihood that consumers will convert. times, keeping campaign efficiency up and avoiding over- delivery to individual consumers. The impact of display advertising on brand perception can be shown by consumers engagement with the brand. comScore 5
- 9. Brand Effectiveness Compared with television‘s brand impact, how does online advertising perform? Key facts at-a-glance For branding campaigns, advertising on television is the first Looking at brand effectiveness, the click has been choice for many marketing executives in order to achieve shown not to cover relevant aspects of campaign communication goals that involve addressing a large audience evaluation in a short period of time. Although digital is not yet able to Online display advertising has been proven to have provide the reach television offers on a daily basis the question significant impact on consumers’ brand awareness, remains, what impact does online advertising provide brand perception and sales both online and offline compared with TV? Eyeblaster found that across all sectors Campaign analysis leads to the conclusion that the consumers are both willing to engage with brands and explore optimal frequency would be six to seven contacts, them, even though they may not necessarily click on online depending on the goals set ads. They will even do so for over 50 seconds – almost the Compared with television, online display generates length two TV ads would have.27 And because consumers are higher engagement rates and substantially higher compelled to actively watch (when watching a video clip), efficiency than TV campaigns. Users interact for nearly MetrixLab found that pre-roll video ads get the message to 60 seconds with an online ad – twice as long as a consumers far better than a TV commercial block and even standard TV spot normally airs. have a higher spontaneous recall. The study also shows that forced exposure to an ad (e.g. video ad running prior to actual video) doesn’t make ads less likeable.28 ComScore's CPG Ad Effectiveness Study analysed the purchase behaviour of 200,000 users around various CPG (Consumer Packaged Goods) brands by comparing purchase behaviour of those exposed to specific online ads and those without advertisement contact. Over a three-month period 80% of all campaigns showed a positive 9% average lift in sales. Compared to this, twelve-month TV impact, measured by Information Resources, shows an average lift of 8%.29 A Carat Insight brand engagement study has shown online advertising for soft drinks is three times as effective per euro spend than the all media average. An 8.5% budget share is able to achieve an ad effect of 24% in terms of ROI.30 For department stores 40% of brand engagement was influenced by online display advertising with only 3% ad spend share. Compared to that, television’s impact on consumers’ engagement was only 31%.31 6
- 10. Formats In the early days of online, display advertising ads were mostly per hour viewed was $0.13 for television, compared to $0.17 small, simple formats, and users’ response to seeing them was for online.35 high. As connection speeds and the penetration of broadband internet connections have increased, the range of possibilities Rich media and engagement available to advertisers online has grown. Today the branding effectiveness of online campaigns is being lifted through The success of an advertising campaign is highly dependent on enhanced rich media formats including video ads. Here we creativity and the opportunities to transform a creative strategy focus on some of these display advertising formats. into an online ad that performs well in terms of engagement and impact on the brand are manifold. Rich media allows Simple banner ads (either static or dynamic) are generally the advertisers to include video, audio or dynamic data fields in simplest format and the easiest to build, with commensurate their ads in order to stimulate attention and engagement. pricing compared to other online display formats. Size, Engagement can be anything from a consumer mousing over placement and style are all hugely variable, and all have an an ad to start a video to expanding ads to custom interaction. impact on ad effectiveness. Their relative simplicity doesn’t According to Microsoft Advertising´s “Dwell on Branding” detract from their utility; they are still hugely popular with research the higher the dwell score achieved (multiplying the advertisers, and numerous research studies show their average time that users spend actively engaging with a rich effectiveness for branding. media ad with the proportion of users engaging) the greater the uplift in key brand metrics such as brand awareness, brand Interactive rich media formats are rapidly gaining ground. The favourability and purchase intent. High dwell campaigns were theory behind these is that while watching a video or looking also significantly more effective at driving branded searches, at a banner is a passive way of a consumer seeing a brand’s increasing traffic to the brand site, and leading to more message, encouraging a consumer to interact with a branded engaged users on the website. property provides a much deeper brand experience and hence builds a great brand affinity. For advertisers these results indicate that smaller ad formats generate shorter dwell times, and so messages should be kept Advertisers may ask themselves what formats suit their needs short and concise. Large formats, on the other hand, allow a best. Various research projects have been conducted to find greater field for creative and interactive online banners. But the answers, what impact they have on brand metrics and how besides size, what counts is surely how they are presented: innovative formats can be integrated into marketers’ web site visitors seem to dislike advertisements that cover up communication. Here we review some of the most interesting content or start without their interaction. Eyeblaster has shown findings. that auto-initiated formats achieve lower dwell time than user- initiated formats. That is because visitors pay less attention to Does size count? them than if the videos start on user-action. Beside a higher level of attention, consumers probably rate user-initiated The question of size is always worth a debate and as recent advertisements more positively than when being interrupted study results show, size actually does matter. United Internet during their journey on a website. Media has shown that online ad recall can be increased by more than 120% when using large ad formats instead of small Are videos ads the next big thing? ones. Online campaigns using large online formats achieved a three times higher brand awareness score.32 Eyeblaster’s There are two main types of video formats: video formats which global research analysed over 42 billion rich media impressions are placed into the content of a web site, so-called in-page spanning all formats, and found that they achieved longer formats; and those in which advertisers embed their video engagement time than the average 30 second TV spot.33 message directly into video content. The latter, so-called in- stream video formats can be differentiated: pre-rolls show the Looking at the development of online formats used in mature advertisement before the main video content starts, mid-rolls markets, it’s clear that large formats are growing in popularity are placed between two parts of video content and post-rolls for online campaigns. Rich media formats with video have had present the video ad after the main content has finished. the highest growth rates recently. In Germany, for example, Compared with traditional media advertising, online video the increase in usage of video ads was 264% between H1 2008 advertising is rated well by users. Particularly in the context of and H1 2009.34 As eMarketer has shown, US marketers also watching free content, users are more likely to tolerate know of online video’s advantages: in 2009 average spending advertisements in their video content. Pre-roll ads are generally 7
- 11. Formats the most used; they are short and unavoidable and they act as Comparable effectiveness but higher efficiency an introduction to the content experience. As for all for online video ads advertisements, video ads are rated highest when relevant for consumers.36 In 2009 Plan.Net, one of Germany’s largest digital agencies, and United Internet Media42 carried out a major study to Microsoft Advertising’s research on the effect of online video compare TV and online objectively. The first of its kind, it ads for film marketing showed that when viewed online users worked on the basis of analysing multiple commercials under responded more positively to the ads than if seen in a cinema. reliable conditions. Across the base of 270 respondents the 74% of all viewers rated their experience with the online ad as research found that online video ads are just as effective as positive.37 As found in a German study by Zukunft Digital, those on TV. Online video ads even achieve slightly higher brand effectiveness is significantly increased when videos are impact on the measures of unaided brand awareness and ad adapted to users needs and when containing interactive recall than TV commercials. In addition, due to the potential elements such as coupons. The results also indicated that it is for targeting, online video ads are more efficient than TV not necessary for users to view an online video completely. The advertising, since spread loss is minimized substantially. time a consumer spends watching an online video does not significantly affect brand metrics: watching a video to the end Whatever the format, it is always important to assess the does not necessarily produce better results in achieving campaign objectives, the target audience and the context for branding goals. Rather brand effectiveness increases as the ads. For example, a blanket campaign of banner ads will frequency increases.38 Besides frequency, users’ receptivity generally provide a wide audience reach with a high average influences video performance: prominent placements increase frequency of exposure; video ads will usually reach a more viewers’ involvement leading to higher brand effectiveness. specific audience (younger, more frequent consumers of online), but will present a brands message in a more When analysing in-banner videos Eyeblaster showed a 30% lift unavoidable way to a more engaged audience. Interactive rich in dwell rate (cumulative instances of where a user interacted media formats will engage more specific audiences, but with the ad divided by served impressions) compared to non- provide the most engaging brand experience to those video rich media. Video almost doubles the average dwell consumers that take part. time, from 37 seconds to 72 seconds compared to non-video formats.39 Even with higher production costs for video ads (+ 20% compared to non-video ads), Eyeblaster’s research proves video’s efficiency: video ads ROI is double that of non- Key facts at-a-glance video ads.40 Large formatted ads generate longer dwell time and a Video length should depend on objectives higher impact on users awareness Consider creative insights when producing online ads When it comes to changing brand perception or encouraging Creative rich media formats drive engagement and consumers to take action, according to IAB US research, user dwell better than simple banner ads initiated 15-second video ads have the highest impact; Videos ads are becoming more important to 30-second ads are best for showing complex and emotional advertisers, as they have been shown to be highly messages. Short ads can be placed in mid-roll placements; effective longer ads should not interrupt content, because this would The effectiveness of online videos is comparable to generally lead to viewer irritation. Although as ever, these results that of TV spots – and generally with higher must always be seen in the context of the communication efficiency. goals of specific campaigns.41 8
- 12. Targeting All media offer advertisers the ability to control advertisement amazing 75% lower CPM for the online campaign compared delivery to a greater or lesser degree. The digital industry is no to a single spot on television.44 Recent global research from exception and has developed various targeting technologies in the Network Advertising Initiative, a U.S. cooperative of online order to identify consumers online and deliver advertising to marketing and analytics companies, also shows that ads defined audience groups, based on various criteria. User data targeted based on surfing behaviour cost on average twice the and targeting technologies are hugely effective in reducing price of a run of network ads; they do, however, generate over wastage and increasing advertising ROI. Cross-media twice as high conversion rates, justifying their higher costs.45 campaigns can also benefit from targeting, since target groups can be reached in the medium they mainly use. For example, a As targeting offers clear advantages for advertisers, the target group consisting of women aged 20-49 could be split in question remains how consumers perceive online advertising two: users aged 20-29 could be reached effectively online and in particular, targeted advertising. IAB UK46 found that while those between 30-49 years of age may be reached best internet users don’t entirely reject online advertisements. on TV. Although one-third says they dislike online advertising, 70% feel positive or neutral towards online ads. Further, the study of over 1,000 respondents indicated that 36% of internet users Targeting is delivering digital advertisement based admit to seeing relevant ads while they surf the web – of those on different parameters automatically and target- who feel positively about online ads, 89% say the ads they’re oriented to specific audiences. seeing are relevant. As described, higher relevance leads to higher efficiency. If recipients see ads that are relevant to them, Tools they are more likely to pay attention to them and remember Technical targeting: Frequency capping, Geo and their messages. Regional Targeting, Targeting by date and time, bandwidth or browser Even though personal data security is important to the majority of internet users, online ads using behavioural targeting do not Language based targeting: Keyword, Contextual and transfer negative associations to the advertised brands. In fact Semantical Targeting 21% of respondents even say that being aware of a brand using online behavioural advertising makes the brand more Behavioural targeting: Targeting consumers based on appealing, 53% see no positive or negative change of brand past surfing behaviour perception. Predictive behavioural targeting: Targeting based on specific attributes such as buying attitudes, socio- Key facts at-a-glance demographic or psychographic attributes with the aid of statistical predictions based on various data Carrying out online campaigns with targeting criteria sources. has been shown to have substantial positive effects on brand metrics and at the same time raising efficiency Compared with run-of-network campaigns, targeted Campaign analysis has shown that delivering targeted campaigns have been shown to be more than twice advertisements can increase brand metrics significantly as effective compared to non-targeted campaigns. Over numerous Targeted campaigns have a positive impact on users’ campaigns that used targeting, ad-recall was lifted up to perception: one quarter of internet users say that ads 140%, brand awareness up to 277% and purchase intent even are more appealing to them if targeted. up to 390%. Compared to non-targeted campaigns with the same budget, average campaign reach can be up to three- times higher by using targeting technologies. At the same time the effective CPM can drop by up to 75% since targeting is able to minimize spread loss.43 One may ask how these results relate to other media: United Internet Media further compared the efficiency of a 30-second video ad to be aired on Germany’s three largest TV stations and on their general interest online portals. They generated an 9
- 13. Cross Media Cross media campaigns can achieve a considerable lift in which impact cross media – especially online and television – branding metrics because of the effect of multiple contacts with have on consumers brand perception and purchase intent. The identical advertising messages. So rather than viewing online and key results show that high loyalty to a website increases brand TV as competing media advertisers, we should see that they effectiveness of ads on that site as internet users are familiar with actually complement each other in creating a consistent message the site and are less distracted by website elements, which allows to consumers. It is important for marketers to understand how higher cognitive abilities to assimilate advertising. The research to fit digital into their media mix with an appropriate share of further found that a higher online share in the media mix budget to allow the achievement of brand communication increases campaign efficiency, with the ideal share of online objectives in an efficient and effective manner. showed to start at 15% budget share. Importantly online display advertising achieved similar recall as the TV ads although at lower Shifting budgets towards online cost. The research also underlined the cross media effects of integrating online into the advertising mix: the inclusion of A pertinent question many marketers ask at this point is “What is online was increased brand recognition in print and television, the effect of shifting X% of my advertising budget to online?” since the average number of consumer touch points with the Nielsen has investigated this very question. By taking the TV campaign was increased.50 schedule of Budweiser and reapplying different levels of their budget to Yahoo!, they found some interesting results. By Whatever the communication goal, online is able to increase moving 10% of their advertising budget from TV to digital, brand metrics along the entire purchase funnel. Turner advertisers are able to increase audience reach by 3.4% - without conducted a study with over 2,400 respondents in UK, France, changing the overall advertising budget. Nielsen’s research also Germany, Norway, Sweden, Denmark, Poland, Singapore and shows that not only can net audience reach be increased, but Hong Kong to find out the impact of cross-platform campaigns increasing online budget boosts Gross Rating Points (GRPs). on brand metrics. They found that by adding online as an Because ads on the internet mostly have a higher frequency than additional touch point to TV, unaided ad recall was increased by TV, shifting 15% of TV budget produces 21% more GRPs.47 10% leading to a positive change of brand perception.51 Within cross-media planning in mature media markets, marketers For Unilever’s Dove launch campaign using print, TV and digital can count on the internet to create reach within their target in the Netherlands, Forrester research showed its dominance, groups and thereby expand TV reach. By linking internet and with an increase in spontaneous recall of 14%, compared to 11% television usage, Nielsen has proven that online advertising also for television.52 Analysis of McCain’s cross media campaign contributes to branding aims by providing frequency against found that online encouraged greater lifts in ad awareness lighter television users. Campaign analysis in the US has shown (+10%), brand favourability (+8%) and likelihood to purchase that up to 90% of recipients reached online were either not (+11%) than the solus TV campaign.53 reached by a certain TV campaign, or reached fewer than three times.48 A well-balanced multimedia campaign can fill in the gaps in media consumption – while a TV campaign will reach TV Key facts at-a-glance viewers, an engaging online element means that those who don’t watch TV are exposed to the brand message, and for those Traditional media has been shown not to reach all who consume both, the message is reinforced. audiences across the day. Integrating online to the media mix can expand reach and fill in where classic Cross media advertising is effective media exhausts Cross media campaigns including online display With cross media campaigns, consumers are engaged more advertising have shown a significant impact on brand intensively with the message (through exposure to the same metrics message in different channels), and thus advertising effectiveness Introducing online to the media mix does not lead to increases. Compared to solus TV campaigns the inclusion of cannibalisation; it actually increases users’ brand online advertising leads to an overall additional average lift of engagement brand metrics by 18%.49 This is of course specific to each The ideal share of online within cross media industry. Cross media campaigns in the automotive sector have campaigns has been shown to be 15% shown a metrics average uplift of 25%. In order to generate high impact on the brand, advertisers should take advantage of the unique Recently the six largest online publishers in Germany (Yahoo!, properties each channel offers in order to deliver a Interactive Media, Tomorrow Focus, Axel Springer, Microsoft consistent brand picture. Advertising and United Internet Media), together with multi- national CPG marketer Procter & Gamble, intended to discover 10
- 14. Appendix 1 Microsoft Advertising: Europe Logs On, 2009 2 Microsoft Advertising: Media Meshing – Meet Europe’s media multi-taskers, 2009 3 Eyeblaster: Trends of Time and Attention in Online Advertising, 2009 4 ComScore: Natural Born Clickers, 2009 5 United Internet Media: Click rates – suitable for campaign evaluation?, 2009 6 Atlas/Microsoft: Engagement Mapping, 2008 7 Atlas/Microsoft: The long road to conversion 8 Bain/IAB: Building Brands Online, 2009 9 Eyeblaster: Search & Display: Reach Beyond the Keyword, 2010 10 Atlas/Microsoft: Beyond Search – Illuminating The Alltel Wireless Sales Funnel, 2008 11 United Internet Media: WEB.Effects Benchmark, 2010 12 Yahoo!: ACE BMW Efficient Dynamics, 2008 13 MetrixLab: YouTube Study – Fox/Wolverine Masthead Effectiveness Study, 2009 14 Yahoo!: Online Advertising Campaign Evaluation - McDonald's CBO, 2008 15 Nielsen: EMEA Brand Effect 2009 Study, 2009 16 Nielsen: The Shifting Media Landscape, 2009 17 ComScore Press Release: Wither the click?, comScore brand metrix norms prove “view-thru” value of online advertising, 2008 18 ComScore: How online advertising works wither the click?, 2008 19 ComScore: How Online Advertising Works: Whither the Click in Europe?, 2010 20 Online Publishers Association: The Silent Click: Building Brands Online, 2009 21 ComScore Press Release: Wither the click?, comScore brand metrix norms prove “view-thru” value of online advertising, 2008 22 MetrixLab: YouTube Study – Fox/Wolverine Masthead Effectiveness Study, 2009 23 Nielsen: Net Effect US, 2009 24 Microsoft Advertising: Get Smart Case Study, 2009 25 United Internet Media: WEB.Effects Benchmark, 2010 26 Dynamic Logic: MarketNorms Report – Entertainment + MarketNorms Report – CPG, 2009 27 Eyeblaster: Trends of Time and Attention in Online Advertising, 2009 28 MetrixLab: Just Stream it!, 2008 29 ComScore Press Release: CPG Ad Effectiveness Study, 2009 30 IAB/Carat Insight: Soft Drinks Brand Engagement Study 31 IAB/Aevolve: Brand Engagement Study – Retail, 2008 32 United Internet Media: WEB.Effects Benchmark, 2010 33 Eyeblaster: Trends of Time and Attention in Online Advertising, 2009 34 OVK: OVK Online-Report 2009/02, 2009 35 eMarketer: Digital Video Advertising – Where’s the Money?, 2009 36 Simply/Work: Online Video: What the Statistics Can’t Tell You, 2008 37 Microsoft Advertising: Showtime: Digital’s growing role in film marketing, 2009 38 Zukunft Digital: Bewegung im Netz, 2009 39 Eyeblaster: Trends of Time and Attention in Online Advertising, 2009 40 Eyeblaster: Online Advertising Doubles Engagement, Boosts ROI, 2009 41 IAB US: Case Study on Digital Video Advertising Effectiveness, 2008 42 United Internet Media: Contact Quality of TV vs. Online Video, 2009 43 United Internet Media: TGP-Booklet, 2009 44 United Internet Media: Efficiency TV vs. Online – Advertising more effective with targeting, 2009 45 Network Advertising Initiative: The Value of Behavioral Targeting, 2010 46 IAB UK: Online Behavioural Advertising Study, 2009 47 Nielsen: The Shifting Media Landscape, November 2009 48 Nielsen: Nielsen TV/Internet Fusion, 2009 49 IAB/Thinkbox: TV & Online – Better Together, 2008 50 Pilot/P&G: Online Visions 2010 51 Turner: Cross-Platform Advertising Study on Effectiveness & Engagement, 2009 52 Forrester: Online Advertising Case Study: Unilever, 2005 53 Yahoo!: Cross Media Brand Impact Study - McCain Home Fries Campaign, 2007 11
- 15. Special thanks to: Nick Drew Mats Selling Alexander Parks Lucy Green and all contributors and supporters of the IAB Europe Brand Advertising Committee About IAB Europe Our mission is to promote, protect and prove the value of the European digital advertising industry. IAB Europe exists to promote the growth of Europe's interactive advertising markets through events, partnerships and communications activity, to protect the interests of the industry through an active programme of public affairs and to prove the value of the market through research and education. The power of IAB Europe comes from its extensive membership at both country and corporate levels. Our national membership of 26 countries spans the entire continent - not only the mature markets of Western Europe, but also rapidly evolving markets including Croatia, Czech Republic, Romania, Russia, Slovakia and Ukraine. Our corporate membership includes advertisers, major media groups, publishers and portals, agencies, research companies and technology and service providers. The only body that truly represents the interests of the European digital and interactive advertising industry. promote protect prove The Egg Communication Nest Bara Street 175 1070 Brussels Belgium Phone +32 (0)2 526 5568 [email protected] www.iabeurope.eu