Infographic: Online display advertising effectiveness and use in Australia

by Marketing ON 21 July 2012

Long dominated by execution performance metrics, the measurement of online ad effectiveness is shifting towards brand measures such as awareness, favourability or purchase intent, as advertisers seek to be more definitive about ROI.

So which form of display ads deliver? Research from Millward Brown found that rich display and video ads can be up to four times more effective at building brand measures than other formats. When combined, the two formats can be even more powerful, boosting brand favourability by 4.7% and purchase intent by 4.3% in tests conducted.

Video rated as the strongest stand-alone performer for three of the four brand metrics analysed, but for online ad awareness rich formats was the most effective generating a 5.6% uplift among the exposed group compared to the control group in the study.

The frequency of exposure to display ads also plays an important role, with higher frequency not a positive thing in all cases, the study found. Video formats were found to be stronger performers at lower rather than higher frequencies, particularly for brand favourability and purchase intent measures. In fact, over-exposure to high impact formats can drive down attitudes toward a brand, particularly purchase intent.

A constant brand and message presence in the ads showed clear benefits, with awareness, favourability and purchase intent measures more than double for those with 100% logo presence over those with only partial presence. A similar trend was noted for ads with 100% message presence compared to partial message presence.

The days of solely measuring online campaign success on a cost per click or lead-generation basis are fading, says director of Millward Brown’s media and digital solutions, Mark Henning, with these measures indicating engagement with the ad itself rather than its success in improving brand metrics.

The below infographic, developed by Marketing, sources data from Millward Brown case study analysis, PricewaterhouseCoopers’ IAB Online Advertising Expenditure Report, March 2012, analysis of MediaMind’s ad network and Mi9.

Click image for full size

Online ad future: rates and campaigns to adapt with real-time brand metrics

by Marketing ON 17 July 2012

Online advertisers utilising automated trading will be able to understand the impact of their ads on brand metrics, such as awareness, favourability and purchase intent, in real time with the introduction of a new online brand effectiveness measurement platform.

With real-time automated online trading for ads set to become a standard industry practice, Nielsen has introduced a research platform that will enable brands to understand which websites and which particular creative executions are driving higher brand engagement than others. The researcher will provide real time analysis that will enable clients to adapt and optimise their spend across the best performing sites and creative during the course of the campaign.

Managing director of Nielsen’s Media Practice Group, Matt Bruce, says much of the focus to date has been on targeting the right audience demographics with performance of factors such as context, placement and publisher only evaluated after the campaign is over. “This means agencies can’t assess how much of a role that contextual placement and or the creative is having in real time; and hence cannot make changes mid campaign to optimise the brand impact of a campaign,” Bruce says.

“Agencies are not alone in facing this blind spot, as publishers risk having their inventories undervalued by media packages bought and evaluated solely on audience delivered, without adequately recognising the additional brand impact generated by campaigns placed within the most relevant content.”

Dubbed ‘Brand Effect’, Nielsen claims the platform is already delivering cost and brand optimisation efficiencies to clients in the US. Australia is the first market in this region that Nielsen will launch the platform in.

Analysis from Nielsen’s work with over 1500 products and 30,000 ads utilising the system shows the biggest drivers of brand metrics are program factors (e.g. context and audience engagement), creative factors (e.g. ad quality and size), media weight, placement factors and competitive activity.

The approach could see publishers adjust rates in line with demonstrated effectiveness of contextual placements on their websites.

Branded content desired but has little influence on savvy consumers

by Marketing ON 4 July 2012

A study in the US has found that branded content does not have a major influence on purchase intent among consumers.

When asked if they felt more inclined to buy an item promoted in branded entertainment in a study conducted by Edelman entertainment unit Matter, only 15% responded in the affirmative, while 33% said no and 42% were neutral.

The study, conducted in conjunction with insights group StrategyOne, surveyed 1000 adults, finding that one third of respondents perceived branded entertainment to be ‘valuable’. A similar proportion (31%) ‘expect’ brands to provide free online content, and a further 30% ‘want’ brands to entertain them.

Branded content was more likely to be seen as valuable by younger age groups, with 52% of 18 to 34 year olds appreciating it. This age bracket was also the most likely to seek such material out and seek out brands behind the entertainment.

However, brand fit was perceived as crucial by the respondents, and an area where many often come unstuck. When assessing branded entertainment, 47% of participants agreed it must ‘fit’ the content, while 44% suggested it typically felt ‘forced’ and 30% found it ‘overwhelming’.

Many also find branded content to lack authenticity, with 7% of the sample describing such material as ‘poor’ and 24% believing it held no worth whatsoever.

General manager of Matter, Andy Marks, says brand funded content is becoming more prevalent, with some of it compelling, and some not. “Creating and curating content, or integrating into existing entertainment must be approached strategically in order to ensure integration is organic and unobtrusive,” Marks says.

With only 15% of respondents having never knowingly seen branded entertainment, awareness of brand sponsored material was high in the US. Several notable cases of branded content, such as McDonald’s McDonald’s Gets Grilled which aired on Channel Seven recently, have gained public attention in Australia.

If local consumers hold similar attitudes to consumers in the US, many are keen to see more entertainment sponsored by brands. In the US, 27% wanted to hear more from brands supplying free online content, and 20% felt it gave them access to content they could not otherwise see.

The study also found that 16% of respondents comment on social networks about branded content before and during viewing or listening to it, and 34% do so after watching, offering brands a chance to stay involved with consumers.

In conclusion, Marks adds, “When dealing with audiences who want and expect to be entertained, working with creative and strategic partners who understand how to strike the right balance within the creative process between delivering entertainment value and highlighting brand attributes is critical. If done correctly, branded entertainment can be a powerful vehicle to make deeper connections between brands and their audiences.”