Music videos outperform television in ad impact

The mood evoked by music videos creates fertile ground for advertising, with ads placed in between clips more effective than spots in traditional television ad breaks, research shows.

A neuroscientific study, conducted for music video site VEVO, found the emotional intensity created by music video programming translates into higher ad recall than on traditional TV among young adult audiences.

The study of 105 US residents aged 15 to 35 indicates the passion people feel for music has a positive knock-on effect for executions inserted in between music clips. Watching music videos left the participants of the study with an emotional intensity score of 0.70, which equates to a “powerful impact” on the viewer’s mood. This was significantly higher than the score of 0.63 registered by TV viewers – a moderate level of impact on emotional intensity.

Ad break memory for music videos was also significantly higher than for traditional TV, while the scores for online TV and online TV clips sat somewhere in between the two.

The study, conducted by market research firm Neuro-Insight, also found that online content in general outperforms conventional TV for engagement. Television shows watched online recorded the highest engagement levels out of the four content types tested, but fail to translate that engagement into ad breaks.

Music videos and conventional TV shows on the other hand show the greatest ‘content to ad break transference’ – the ability to translate high program performance into strong ad break performance.

Note: A score of 0.7 or above means the content has a powerful impact on engagement, emotional intensity or viewer take (memory encoding) out. A score of 0.3-0.7 means viewer take out is moderate and may or may not have an impact on purchase behaviour.

Online TV content, both full shows and clips, also showed drops in product salience, meaning viewers have less positive associations with brands after they are advertised in TV content online.

Neuro-Insight uses brain-imaging technology to measure how the brain responds to communications, based on the premise that memory encoding and emotional intensity have a strong correlation with an advertisement’s marketplace effectiveness.

 

Facebook seeks to put advertising concerns to rest with ROI tool

Facebook will attempt to put to rest questions over the value of its advertising solutions with the launch of a tool to help marketers track return on investment on their campaigns.

The company, which went public in May, is testing a tool that it claims will help marketers track ROI from ad campaigns on its platform, Marketing UK reports. The tool will track conversions or responses to Facebook ads that take place outside of the social network, such as click throughs and sales on ecommerce sites.

Since floating, pressure from marketers to prove the ROI of its advertising has mounted, forcing it to bow to the “highly requested” demand for definitive proof of ROI.

Marketing UK (no relations to this Marketing magazine) reports:

“Facebook claims the tool, which is available via its Ads Manager, will help marketers optimise future campaigns for better ROI. It also enables advertisers to use optimised cost per impression (CPM) bidding, to show ads to people more likely to convert on their off-Facebook site.”

The social network plans to roll out the tool globally at the end of this month. While it will focus on click attribution responses for etailers, the tool is aimed at helping all direct response marketers, according to Marketing UK.

One of the trial cases for the tool, designer items retailer Fab.com, has dropped its cost per acquisition by 39% after optimising its CPM using the tool, Facebook claims.

Facebook has come under heavy scrutiny since going public, with a number of sources calling the value of its network as a marketing tool into question and accusations of cherry picking data in an attempt to put to rest such questions. Advertisers, including General Motors, pulled their ad spend from Facebook amid claims it was ineffective.

 

Frowns and smiles become ad testers as ‘facial coding’ lands in Aus

Frowns, smiles and other facial expressions are set to join brain activity and other observed responses as the latest predictors used in ad testing research.

Research agency Millward Brown has added ‘facial coding’ technology to its ad testing tools, claiming it can give insights into how audiences will emotionally react to advertising and indications of the ad’s impact on brand perceptions.

“Facial expressions paint a rich canvas of emotional response that provide invaluable insight into advertising and brand effectiveness,” the research agency says, claiming to be the first to offer the service in Australia.

Global brand director of Millward Brown’s ad testing tool ‘Link’, Daren Poole says for analysing mood there’s no substitute for a smile, laugh or frown. “Traditional methods of measuring emotion are not always capable of capturing a true emotional response,” Poole says. “Facial coding allows us to track how a person really responds, rather than what they claim to have felt.”

Facial coding uses webcams to record and measure real time emotional responses during ad viewing, analysing a viewer’s spontaneous reaction to the concept as they sit behind their computer at home.

The approach can measure how well an ad captures a viewer’s attention, how they respond to it, and can also predict ad cut through and impact on brand perceptions and  sales, according to Millward Brown.

Millward Brown’s Link is an ad testing tool for creative development and evaluation that has been used in the development of 84,000 ads worldwide. Neuroscience, a technique which measures brain activity, is a key part of the technique and has been promoted by research and specialist agencies for serveral years now. Millward Brown, fellow researcher Nielsen and Neuro-Insight are just some of the firms that offer the service in Australia.

Poole says the facial coding tool has the ability to be a good fore warner of ads that may be poorly received. “If a campaign is pushing the boundaries in terms or humour or controversy this is a controlled means to test how consumers really respond.”

 

Facebook to enable promotion in news feeds of non-fans

Facebook has announced that brands may soon be able to pay to have page posts shown in the news feeds of non-page fans, extending their reach beyond users who have ‘liked’ the brand.

Tests of the new ‘ad unit’ will begin soon, Facebook wrote in an email to Marketing:

“Starting soon, we are beginning a very small test that will allow marketers to promote page posts to people beyond their fans in the news feed… These ads will look like other page post ads in news feed and be labelled as sponsored.  We think this will make it easier for businesses to reach more people.”

The ads will appear in both desktop and mobile versions of the social network. It is another extension of ‘sponsored stories’ which Facebook made available in the news feed of page fans in March. Described as a ‘reach generator’ product, it allowed brands to pay for a guaranteed reach of 75% of their fan’s news feeds. The new ad product will allow brands to take reach a step further by targeting people who are yet to ‘like’ their page.

Facebook says they will gather feedback from participants in the test to help improve their ad experience.

New Facebook ad unit

 

BBC punches holes in Facebook with virtual bagel stunt

The BBC has conducted a test to show that Facebook ‘likes’ generated from sponsored ad placements within the social network may be of little value unless tightly targeted.

The experiment, in which technology correspondent Rory Cellan-Jones bought ads for a fictional ‘virtual bagel’ company, found that many likes received from the global campaign appeared to be from fake accounts or users from Egypt that liked thousands of pages.

With so much of the value of the social networking giant based on its potential ad revenue, and questions over the efficacy of advertising in its tightly controlled ecosystem circling, the exercise speculated that global activity in particular, whether it be number of ‘likes’ or clicks on ads, may be of little or no value.

The page for the virtual bagel company was set up with very little information apart from a brief, vague description so that it would be of little interest to Facebook users. However, through an ad in the right hand sidebar that prompted users to like the page with the text “We send virtual bagels, just click to enjoy”, Cellan-Jones received 2999 likes in just a few days.

The ad was set to display in the UK, US, India, Egypt, Indonesia and the Philippines to users aged 13-45 years with an interest in health and wellbeing, cooking and early adoption of technology, exposing the ad to a potential audience of 66 million people.

Almost all of the likes came from users in India, Egypt, Indonesia or the Philippines, according to Cellan-Jones, with few coming from the US and the UK. Facebook’s analytics show where a page is most popular, which in this case emerged as Cairo among 13-17 year olds. Cellan-Jones made the point that some of his page’s fans looked to be fake accounts which had liked over 3000 pages.

“All of this raises questions in my mind and probably in advertisers’ minds about the real value of untargeted advertising on Facebook,” he says in a video showing his approach to the experiment. “What seems to be happening is that people in certain parts of the world are incredibly keen to click on random adverts for no apparent reason. That generates a lot of money for Facebook in the short term, but may have an impact on the long term perception of its value.”

Facebook responded to the test by saying it had “not seen evidence of a significant problem”. You can see the company’s full response to the test here.

The exercise was conducted using an untargeted campaign and in doing so makes the point that global pages of large brands may have likes from users with limited value, but it also speculates over the value of pages and Facebook ads generally using a single methodology flawed by its lack of targeting. However, Facebook in its defence of the efficacy of its system has also been guilty of cherry-picking data to paint a positive picture in the past. Meanwhile, the industry is still yet to see the full picture of the social network’s effectiveness from an independent point of view.

 

Experts wary as Facebook spruiks ‘cherry-picked’ ad effectiveness data

Facebook has launched a concerted PR effort to bolster opinion of its ad products and marketing effectiveness, releasing research on the performance of its solutions for businesses.

But while the research shows positive results for marketing activity including Pages and its ad products, the amount of data released has been limited and mostly related to a few select brands. Accused of cherry-picking evidence of its effectiveness in the past, the real story could be less positive than Facebook’s analytics show, according to comments from a local Facebook adman.

Last week, the newly public company’s PR agency contacted Marketing with the findings and an offer to interview a spokesperson based in their Californian headquarters about a report conducted using comScore social media analytics, and its own research into return on investment.

comScore’s report demonstrates how different steps in the social media marketing process work, evaluating the combined impact of owned (a brand’s Facebook Page), earned (amplification of a brand’s content from fans to friends of fans) and paid (ad placements in the right hand column of Facebook’s layout) techniques. The report, dubbed ‘The Power of Like 2’ calls the three techniques, when used together, “a virtuous cycle of brand impact”.

To illustrate rates of amplification, comScore looked at the “leading brands on Facebook”, reporting that most achieve a monthly amplification, or earned media exposure to friends of their fans, of between 50 to 200%, expressed as a ratio of 0.5 to 2.0. This amplification was driven by optimising fan reach and engagement and by supplementing with paid advertising strategies, which for the top ten brands, shown below, resulted in an average amplification ratio average of 1.05.

The report then goes on to look at how Facebook campaigns impact on sales, using an analysis from the American 2011 holiday season examining the social media presence of four leading retailers: Amazon, BestBuy, Target and Walmart. During this period “most of these retailers were highly active with their social marketing programs on Facebook, in some cases soliciting customers and potential customers to become a Fan in order to get a sneak peak at their Black Friday ‘door-buster’ deals,” the report reads. Amplification rates rose by two to four times what they normally were as a result of this activity, and resulted in higher spend levels for fans and friends of fans, compared to the general public, according to an index where a score of 100 represents what a member of the general public spent.

Starbucks was also used as an example, with a control group and test group compared over a four week exposure period, showing a 38% lift in purchase incidence among the exposed group.

Commenting on the results, Facebook’s advertising communications manager, Elisabeth Diana, told Marketing that the findings support the idea the Facebook fans and advertising drive sales to brands: “comScore used a ground-breaking methology to show there is a causal link between seeing a branded message from a brand on Facebook or seeing an ad for that brand on Facebook and driving sales.”

Facebook’s own research into ROI, which was conducted across more than 60 brands, claims a return on investment per advertising dollar of three-fold for most campaigns, and for some a return of five-fold. For “campaigns using a variety of third party methodologies like panels and mix media models, all client initiated, we have seen that, in all the studies run on ROI to date – not cherrypicked – all of the studies we have run” a return on ad spend of three times or better in 70% of cases and a return of five times or better in 49% of cases.

With highly publicised cases of big brands pulling out of advertising on Facebook, such as General Motors, and criticism over their ad formats, the newly public company is under increasing pressure to display a stronger monetisation strategy.

Ben Willee, general manager and media director of STW Group’s Spinach Advertising, which runs Facebook campaigns for a number of local clients, agrees with criticisms of the social networks ad approach. “The Interactive Advertising Bureau has a number of standard formats that have been developed over the last ten years to suit advertisers and to suit the industry and Facebook doesn’t operate in that space,” Willee says.

“Facebook’s formats tend to be in a position and a size that are less eye-catching than other digital formats. In a medium that’s super cluttered, it’s really hard to cut through at the best of times, let alone when you’ve got one hand tied behind your back with a format that is perhaps not as good as it should be.”

Willee’s comments support the notion that Facebook has been ‘cherry-picking’ the data it releases to give a positive impression of its products for marketers. “Stronger brands will always perform better in any research because they’re much more salient,” Willee says. “Here you’re talking about a bunch of big American brands that have very sophisticated social media campaigns. We haven’t necessarily seen any big brands go to that level of sophistication within Facebook in Australia.”

Where Facebook can be the most powerful is in sponsored stories, which Facebook is yet to release any data on, or any sponsored ad that uses friends’ likes to promote engagement, according to Willee. “What we’re seeing is that’s enormously powerful and absolutely working it’s socks off, because people want to operate in communities and think if that person likes it then I will like it as well because that person and I are quite similar. We know that little things like that are enormously powerful. Imagine what we could do if we had bigger formats and access to richer data.”