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Beyond Clicks and Impressions: Examining the
Relationship Between Online Advertising and
Brand Building
Executive Summary
Advertisers increasingly think of online as a place to build their brands, but need greater
confidence that their online investments are helping them achieve their brand goals. This
paper explores both the role of online ads in brand building, as well as the best metrics for
measuring the success of Internet ads against marketers’ goals. Leveraging Nielsen’s advertising
effectiveness solutions to examine this relationship, the following conclusions will be discussed
in this paper:
1.	 Click-through rate is not the right metric to measure brand impact – virtually no relationship 		
	 exists between clicks and brand metrics or offline sales.
2.	 There is emerging evidence that brand metrics in response to online campaigns are correlated 	
	 with offline sales impact.
3.	 Online ads can succeed in driving brand impact, though success is not guaranteed and 			
	 advertisers must embrace new online branding metrics to separate themselves from the 		
	competition.
Advertisers are
increasingly building
brands online
There’s an old adage that advertisers
follow consumers’ eyeballs, and over
the course of the last 10 years, there has
certainly been a remarkable rise in the
number of consumers online and the
amount of time they’re spending there.
Since 2003, the number of Americans
with Internet access has grown 34 percent
from 186.7 million to 249.3 million, ac-
cording to Nielsen. This growth has not
come in a vacuum – online has increas-
ingly become integrated into consumers’
lives – they access online at work (nearly
27 hours per user per month), on mobile
(43 percent of US adults now own smart-
phones), and even concurrently with other
media (20% of U.S. adults watch TV while
using either a PC or mobile device on a
daily basis, according to the Media Behav-
ior Institute USA TouchPoints study.)
Additionally, more and more advertising
dollars are finding their way online. In the
2011 Advertising Outlook published by
The Cambridge Group (a Nielsen com-
pany), a survey of over 300 advertising
decision-makers from a variety of indus-
tries indicates that digital budgets have
increased more than any other type of
media in 2011.
But what’s interesting is this growth is not
only from e-commerce advertisers looking
to generate web traffic or drive sales.
The Cambridge Group report also shows
that in 2011 54 percent of those surveyed
believe online ads are highly effective at
“enhancing brand/product image,” com-
pared to just 38 percent of respondents in
a 2008 version of the study. As consum-
ers have integrated the Internet into their
lives, advertisers are increasingly inter-
ested in ways to better reach consumers,
deliver messages, and build ongoing
relationships through this medium. In
other words, these advertisers are looking
to truly build their brands online.
2	 Copyright © 2011 The Nielsen Company.
With more and more advertisers look-
ing to include online brand building in
their media mix, they are looking for two
things: confidence that their online in-
vestments are helping them achieve their
brand goals, and metrics that give them
the ability to demonstrate success across
their campaigns.
Is CTR a good measure
of brand impact?
Online’s early history as a direct-response
sales channel gave way to traditional
metrics such as click-through rates (CTR),
impressions and conversions, which
e-commerce marketers used to develop
strategies for optimizing online sales.
However, the broadening of advertisers’
objectives to include brand building has
led to questions about whether these
metrics can be used to accurately
measure how well online campaigns
perform against brand marketers’ goals.
Many brand marketers run online
campaigns with the objective to drive
in-store rather than online conversions.
Nielsen is able to measure whether online
ad campaigns influence offline purchase
behavior through Nielsen Sales Effect,
which connects online exposure to off-
line sales using the Nielsen Homescan
consumer purchase panel.
It’s clear from those findings that online
advertising can have a substantial impact
on offline purchase behavior. However,
as shown in Figure 1, CTR itself does not
predict changes in in-store sales due to
the ad campaign. Picking the campaigns
with the best CTR would not deliver the
best overall uplift in sales. Moreover,
evaluating a campaign solely on the
number of clicks greatly underestimates
the number of potential consumers
influenced by the campaign.
Click-Through Rate
SalesLift
Figure 1: Correlation of Sales Lift and Click-Through Rate
Source: Nielsen
The random scatter of the points indicates a lack of relationship between sales lift and click-through rate.
Standard Brand
Effect questions:
•	Ad Recall: “Do you recall seeing
an ad online for product X in the
last 7 days?”
•	Brand Awareness: “Have you
heard of brand X?”
•	Message Association: “Which
brand do you most associate
with the message X?”
•	Purchase Consideration: “Will
you purchase brand X in the next
month?”
•	Brand Favorability: “What is 	 	
	 your opinion of brand X?”
Copyright © 2011 The Nielsen Company.	 3
Figure 2: Correlations with Click-Through Rate
-1.0 -0.5 0.0 0.5 1.0
Ad Recall Delta
Brand Awareness Delta
Message Association Delta
Purchase Consideration Delta
Brand Favorability Delta
Source: Nielsen
No strong correlations emerge between CTR and any of the Brand Effect metrics.
Other brand campaigns are designed to
impart information upon consumers,
make them more aware of a new product
or service, or change feelings or inten-
tions about a brand or product. Using the
Nielsen Online Brand Effect methodology,
(See Page 5) Nielsen examined how well
exposure to online ad campaigns influ-
ences these brand objectives.
Interestingly, research shows that click-
through rate for a given ad campaign also
fails to predict the rate of success in ac-
complishing these attitudinal objectives.
(See Figure 2.)
As expected, there is a small positive re-
lationship between consumers clicking on
an ad and their ability to remember that
ad (Ad Recall). However, the connection
is still weak and likely due to more
noticeable ads increasing both the likeli-
hood of recall and the likelihood of a click.
But there is no measure of branding –
whether the message resonated with con-
sumers or if it was successful in changing
consumer awareness, opinions or intent
– that has any relationship to CTR.
But are brand metrics
correlated with sales?
Digging further into Nielsen research,
there is evidence that attitudinal
measures, such as Purchase Intent,
are important predictors of offline
sales and thus, are a powerful way for
advertisersto gauge the success of their
brand campaigns online.
While based on a small number of cases,
looking at campaigns measured by both
Nielsen Online Brand Effect and Nielsen
Sales Effect, there was strong alignment
between increased purchase consider-
ation following an online campaign and a
boost in offline product sales. Campaigns
in which consumers reported increased
purchase intent after viewing an ad also
showed a boost in product sales. Cases
with flat purchase intent showed no
significant change in sales.
Overall, it is clear that traditional direct
response metrics such as click-through
rate fail to indicate whether online cam-
paigns will impact consumer attitudes or
offline sales. As a result, advertisers need
better brand metrics that can serve as
an indication of the sales impact of their
online ads.
4	
How do online ads
impact consumer
attitudes?
One of the key questions weighing on
advertisers’ minds is, “Are my online brand
ads working?” To answer this question,
Nielsen analyzed results from over 500
online ad campaigns measured by Nielsen
Online Brand Effect over the last year and
a half.
In short, the answer is yes. Brand ads do
on average succeed in moving the needle
for most measured Brand Effect metrics,
as shown in Figure 3.
Despite some claims that “no one pays
attention to online ads,” Nielsen research
shows that the average increase between
the control and exposed groups is highest
for Ad Recall, an indication that consum-
ers do remember exposure to an online ad
campaign. It should come as no surprise
that the first step to influencing consum-
ers through advertising is ensuring that
they notice and remember the ad itself.
The next question brand advertisers want
to answer is whether online ad campaigns
can actually change the opinions and
intentions of consumers. Following Ad
Recall, Message Association showed the
next highest average change, indicating
that online ads can also succeed in con-
veying a brand’s intended message.
Nielsen research also shows that online
ads often increase overall awareness for
the advertised brand. This is an especially
important factor in driving new product
success – clearly, consumers must become
aware of a new product before they can
buy it.
The “lower funnel metrics” – Brand Favor-
ability and Purchase Intent —are far more
difficult to influence than Awareness,
Recall and Association, given that these
metrics require a change in consumer
opinion or behavior.
4%
-1%
1%
3%
Brand
Awareness
6%
Ad Recall
Message
Association
Purchase
Consideration
Brand
Favorability
Figure 3: Average Online Brand Effect Results
Well-executed online advertising can drive branding metrics.
Source: Nielsen
.	 5
-10%
-5%
0%
5%
10%
15%
Brand AwarenessAd Recall Message Association Purchase Consideration Brand Favorability
Weak Ads Average Ads Strong Ads
Figure 4: Average Online Brand Effect Results
Average Nielsen Online Brand Effect results for strong, average, and weak performing ads. Results are
calculated as the average percentage point difference between the exposed vs. control groups on each metric.
Source: Nielsen
Copyright © 2011The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are
trademarks or registered trademarks of CZT/ACNTrademarks, L.L.C. Other product and service
names are trademarks or registered trademarks of their respective companies. 9/2011
Varying results across
campaigns
While our analysis indicates mostly posi-
tive results across the different Brand Ef-
fect metrics on average, perhaps an even
more important conclusion is that there
is a lot of variance in the performance
of online ad campaigns we’ve measured,
as shown in Figure 4. We find some
campaigns are very successful across all
metrics, some campaigns succeed only on
certain dimensions, and others underper-
form across the board.
More generally, stronger performing
web ads drive noticeably greater posi-
tive impact on all five branding metrics
compared to average or weak ads. Just
as TV ads perform better based on the
quality of the creative and programming
context, online ads are similarly impacted
by factors such as creative, publisher
content and type of ad unit. In fact, online
advertising potentially offers a greater
range of possibilities than TV in terms of
format (display vs. video), dimension/size,
or publisher. In many cases, understanding
online ad impact and what makes a strong
vs. weak ad is even more complex than
understanding TV ad impact.
Using brand metrics to
separate from the pack
Just as TV ad effectiveness research has
taught advertisers which levers to pull
in optimizing their TV campaigns, over
time, online ad effectiveness research can
be similarly leveraged to help marketers
understand those factors that drive the
most successful web campaigns.
Those who embrace these new metrics
and collect trustworthy data on ef-
fectiveness across media platforms will
be substantially better positioned than
others, and likely to separate themselves
from the competition.
6 Copyright © 2011 The Nielsen Company.
Ad campaign
tagged
www
!" TAG
www
!"
#$#$
#$#$#$#$#$%
&'!()*+,+
-.%/#0!1
1 User exposed
to ad running
anywhere online
2 Exposure info
encrypted by Nielsen
and passed through
Facebook platform
3 4 Control and
exposed groups
polled by Nielsen
on Facebook
Nielsen Online Brand Effect Methodology
Source: Nielsen
How Nielsen Online
Brand Effect Works
Nielsen Online Brand Effect measures on-
line advertising effectiveness using simple,
strategic standardized poll questions that
are	an	integrated	part	of	the	Facebook	
experience. (Note: Nielsen reports data
only in aggregate to clients and receives
no personally identifiable information
from	Facebook).
Brand Effect questions are asked both of
a sample of respondents exposed to the
ad being measured, as well as a control
sample that is demographically matched
to the exposed group but did not see the
ad. The difference in exposed vs. control
scores is reported for each measure.
Facebook’s	large	and	highly	engaged	
user base enables samples to be built
rapidly, meaning shorter turnaround time
for results. Because polling occurs after
exposure	and	within	the	normal	Facebook	
user experience, no interruptive pop-up or
click-away	surveys	are	required.		Finally,	
reduced sample bias through shorter, stra-
tegic polls, truer measurement of impact
through 24-hour latency, and validated
demos	of	Facebook’s	expansive	user	base	
ensure a more accurate read of online ad
effectiveness.
Studies are compared against a normative
Nielsen database to determine overall
effectiveness and awareness results.
About This White Paper
The data and insights in this white paper
are compiled from a range of Nielsen
resources. For	more	information,	
contact your Nielsen representative.
About Nielsen
Nielsen Holdings N.V. (NYSE: NLSN) is
a global information and measurement
company with leading market positions
in marketing and consumer information,
television and other media measurement,
online intelligence, mobile measurement,
trade shows and related properties.
Nielsen has a presence in approximately
100 countries, with headquarters in New
York, USA and Diemen, the Netherlands.
For	more	information,	please	visit	
www.nielsen.com.

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Nielsen: Brand_building_beyond_clicks Apr 2013

  • 1. Beyond Clicks and Impressions: Examining the Relationship Between Online Advertising and Brand Building Executive Summary Advertisers increasingly think of online as a place to build their brands, but need greater confidence that their online investments are helping them achieve their brand goals. This paper explores both the role of online ads in brand building, as well as the best metrics for measuring the success of Internet ads against marketers’ goals. Leveraging Nielsen’s advertising effectiveness solutions to examine this relationship, the following conclusions will be discussed in this paper: 1. Click-through rate is not the right metric to measure brand impact – virtually no relationship exists between clicks and brand metrics or offline sales. 2. There is emerging evidence that brand metrics in response to online campaigns are correlated with offline sales impact. 3. Online ads can succeed in driving brand impact, though success is not guaranteed and advertisers must embrace new online branding metrics to separate themselves from the competition. Advertisers are increasingly building brands online There’s an old adage that advertisers follow consumers’ eyeballs, and over the course of the last 10 years, there has certainly been a remarkable rise in the number of consumers online and the amount of time they’re spending there. Since 2003, the number of Americans with Internet access has grown 34 percent from 186.7 million to 249.3 million, ac- cording to Nielsen. This growth has not come in a vacuum – online has increas- ingly become integrated into consumers’ lives – they access online at work (nearly 27 hours per user per month), on mobile (43 percent of US adults now own smart- phones), and even concurrently with other media (20% of U.S. adults watch TV while using either a PC or mobile device on a daily basis, according to the Media Behav- ior Institute USA TouchPoints study.) Additionally, more and more advertising dollars are finding their way online. In the 2011 Advertising Outlook published by The Cambridge Group (a Nielsen com- pany), a survey of over 300 advertising decision-makers from a variety of indus- tries indicates that digital budgets have increased more than any other type of media in 2011. But what’s interesting is this growth is not only from e-commerce advertisers looking to generate web traffic or drive sales. The Cambridge Group report also shows that in 2011 54 percent of those surveyed believe online ads are highly effective at “enhancing brand/product image,” com- pared to just 38 percent of respondents in a 2008 version of the study. As consum- ers have integrated the Internet into their lives, advertisers are increasingly inter- ested in ways to better reach consumers, deliver messages, and build ongoing relationships through this medium. In other words, these advertisers are looking to truly build their brands online.
  • 2. 2 Copyright © 2011 The Nielsen Company. With more and more advertisers look- ing to include online brand building in their media mix, they are looking for two things: confidence that their online in- vestments are helping them achieve their brand goals, and metrics that give them the ability to demonstrate success across their campaigns. Is CTR a good measure of brand impact? Online’s early history as a direct-response sales channel gave way to traditional metrics such as click-through rates (CTR), impressions and conversions, which e-commerce marketers used to develop strategies for optimizing online sales. However, the broadening of advertisers’ objectives to include brand building has led to questions about whether these metrics can be used to accurately measure how well online campaigns perform against brand marketers’ goals. Many brand marketers run online campaigns with the objective to drive in-store rather than online conversions. Nielsen is able to measure whether online ad campaigns influence offline purchase behavior through Nielsen Sales Effect, which connects online exposure to off- line sales using the Nielsen Homescan consumer purchase panel. It’s clear from those findings that online advertising can have a substantial impact on offline purchase behavior. However, as shown in Figure 1, CTR itself does not predict changes in in-store sales due to the ad campaign. Picking the campaigns with the best CTR would not deliver the best overall uplift in sales. Moreover, evaluating a campaign solely on the number of clicks greatly underestimates the number of potential consumers influenced by the campaign. Click-Through Rate SalesLift Figure 1: Correlation of Sales Lift and Click-Through Rate Source: Nielsen The random scatter of the points indicates a lack of relationship between sales lift and click-through rate. Standard Brand Effect questions: • Ad Recall: “Do you recall seeing an ad online for product X in the last 7 days?” • Brand Awareness: “Have you heard of brand X?” • Message Association: “Which brand do you most associate with the message X?” • Purchase Consideration: “Will you purchase brand X in the next month?” • Brand Favorability: “What is your opinion of brand X?”
  • 3. Copyright © 2011 The Nielsen Company. 3 Figure 2: Correlations with Click-Through Rate -1.0 -0.5 0.0 0.5 1.0 Ad Recall Delta Brand Awareness Delta Message Association Delta Purchase Consideration Delta Brand Favorability Delta Source: Nielsen No strong correlations emerge between CTR and any of the Brand Effect metrics. Other brand campaigns are designed to impart information upon consumers, make them more aware of a new product or service, or change feelings or inten- tions about a brand or product. Using the Nielsen Online Brand Effect methodology, (See Page 5) Nielsen examined how well exposure to online ad campaigns influ- ences these brand objectives. Interestingly, research shows that click- through rate for a given ad campaign also fails to predict the rate of success in ac- complishing these attitudinal objectives. (See Figure 2.) As expected, there is a small positive re- lationship between consumers clicking on an ad and their ability to remember that ad (Ad Recall). However, the connection is still weak and likely due to more noticeable ads increasing both the likeli- hood of recall and the likelihood of a click. But there is no measure of branding – whether the message resonated with con- sumers or if it was successful in changing consumer awareness, opinions or intent – that has any relationship to CTR. But are brand metrics correlated with sales? Digging further into Nielsen research, there is evidence that attitudinal measures, such as Purchase Intent, are important predictors of offline sales and thus, are a powerful way for advertisersto gauge the success of their brand campaigns online. While based on a small number of cases, looking at campaigns measured by both Nielsen Online Brand Effect and Nielsen Sales Effect, there was strong alignment between increased purchase consider- ation following an online campaign and a boost in offline product sales. Campaigns in which consumers reported increased purchase intent after viewing an ad also showed a boost in product sales. Cases with flat purchase intent showed no significant change in sales. Overall, it is clear that traditional direct response metrics such as click-through rate fail to indicate whether online cam- paigns will impact consumer attitudes or offline sales. As a result, advertisers need better brand metrics that can serve as an indication of the sales impact of their online ads.
  • 4. 4 How do online ads impact consumer attitudes? One of the key questions weighing on advertisers’ minds is, “Are my online brand ads working?” To answer this question, Nielsen analyzed results from over 500 online ad campaigns measured by Nielsen Online Brand Effect over the last year and a half. In short, the answer is yes. Brand ads do on average succeed in moving the needle for most measured Brand Effect metrics, as shown in Figure 3. Despite some claims that “no one pays attention to online ads,” Nielsen research shows that the average increase between the control and exposed groups is highest for Ad Recall, an indication that consum- ers do remember exposure to an online ad campaign. It should come as no surprise that the first step to influencing consum- ers through advertising is ensuring that they notice and remember the ad itself. The next question brand advertisers want to answer is whether online ad campaigns can actually change the opinions and intentions of consumers. Following Ad Recall, Message Association showed the next highest average change, indicating that online ads can also succeed in con- veying a brand’s intended message. Nielsen research also shows that online ads often increase overall awareness for the advertised brand. This is an especially important factor in driving new product success – clearly, consumers must become aware of a new product before they can buy it. The “lower funnel metrics” – Brand Favor- ability and Purchase Intent —are far more difficult to influence than Awareness, Recall and Association, given that these metrics require a change in consumer opinion or behavior. 4% -1% 1% 3% Brand Awareness 6% Ad Recall Message Association Purchase Consideration Brand Favorability Figure 3: Average Online Brand Effect Results Well-executed online advertising can drive branding metrics. Source: Nielsen
  • 5. . 5 -10% -5% 0% 5% 10% 15% Brand AwarenessAd Recall Message Association Purchase Consideration Brand Favorability Weak Ads Average Ads Strong Ads Figure 4: Average Online Brand Effect Results Average Nielsen Online Brand Effect results for strong, average, and weak performing ads. Results are calculated as the average percentage point difference between the exposed vs. control groups on each metric. Source: Nielsen Copyright © 2011The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACNTrademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 9/2011 Varying results across campaigns While our analysis indicates mostly posi- tive results across the different Brand Ef- fect metrics on average, perhaps an even more important conclusion is that there is a lot of variance in the performance of online ad campaigns we’ve measured, as shown in Figure 4. We find some campaigns are very successful across all metrics, some campaigns succeed only on certain dimensions, and others underper- form across the board. More generally, stronger performing web ads drive noticeably greater posi- tive impact on all five branding metrics compared to average or weak ads. Just as TV ads perform better based on the quality of the creative and programming context, online ads are similarly impacted by factors such as creative, publisher content and type of ad unit. In fact, online advertising potentially offers a greater range of possibilities than TV in terms of format (display vs. video), dimension/size, or publisher. In many cases, understanding online ad impact and what makes a strong vs. weak ad is even more complex than understanding TV ad impact. Using brand metrics to separate from the pack Just as TV ad effectiveness research has taught advertisers which levers to pull in optimizing their TV campaigns, over time, online ad effectiveness research can be similarly leveraged to help marketers understand those factors that drive the most successful web campaigns. Those who embrace these new metrics and collect trustworthy data on ef- fectiveness across media platforms will be substantially better positioned than others, and likely to separate themselves from the competition.
  • 6. 6 Copyright © 2011 The Nielsen Company. Ad campaign tagged www !" TAG www !" #$#$ #$#$#$#$#$% &'!()*+,+ -.%/#0!1 1 User exposed to ad running anywhere online 2 Exposure info encrypted by Nielsen and passed through Facebook platform 3 4 Control and exposed groups polled by Nielsen on Facebook Nielsen Online Brand Effect Methodology Source: Nielsen How Nielsen Online Brand Effect Works Nielsen Online Brand Effect measures on- line advertising effectiveness using simple, strategic standardized poll questions that are an integrated part of the Facebook experience. (Note: Nielsen reports data only in aggregate to clients and receives no personally identifiable information from Facebook). Brand Effect questions are asked both of a sample of respondents exposed to the ad being measured, as well as a control sample that is demographically matched to the exposed group but did not see the ad. The difference in exposed vs. control scores is reported for each measure. Facebook’s large and highly engaged user base enables samples to be built rapidly, meaning shorter turnaround time for results. Because polling occurs after exposure and within the normal Facebook user experience, no interruptive pop-up or click-away surveys are required. Finally, reduced sample bias through shorter, stra- tegic polls, truer measurement of impact through 24-hour latency, and validated demos of Facebook’s expansive user base ensure a more accurate read of online ad effectiveness. Studies are compared against a normative Nielsen database to determine overall effectiveness and awareness results. About This White Paper The data and insights in this white paper are compiled from a range of Nielsen resources. For more information, contact your Nielsen representative. About Nielsen Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, please visit www.nielsen.com.