AOP Ireland Study of Online Engagement, April 2012

Study of Online Engagement 17th April 2012 1

AOP Ireland BackgroundThe Association of Online Publishers Ireland is anindustry body representing Irish digital publishingcompanies that create original, branded, local,quality content.Current members include entertainment.ie,irishtimes.com, tv3.ie, independent.ie and rte.ie 2

Overview AOP Ireland commissioned Amárach Research to investigate: • The value Irish publishing companies with local and original content bring to advertisers • The factors that determine positive online brand engagement • User reaction to advertising on different website types In order to answer these questions it was important to compare and contrast the experience of Irish internet users on different types of sites. 3

Methodology Amárach Research surveyed a representative sample of Irish adults online, including 500 general internet users and 1,000 AOP member site users. The fieldwork was conducted between 17th and 31st January 2012. Only those using the internet on a weekly or greater frequency were included in the survey. Questions were based on a similar study carried out by the AOP in the UK. These included questions about both the user experience of different types of sites, and attitudes towards advertising on the different sites. 4

Methodology Participants rated their agreements with statements about sites on a range from 1 to 5, where 1 is „completely disagree‟ and 5 is „completely agree‟. Percentages referenced in this report relate to the number of people who rated positively (i.e. 4 or 5) on a 5 point agreement scale. 5

Site types studied Irish Content Sites Social Networks Portals 6

1. A Matter of Trust Trust is key in driving both site engagement and advertising responsiveness 7

Irish Content Sites Are Trustworthy (Irish Content) (Social Network) 80 (Portals ) 66 61 60 57 55 45 39 37 40 35 35 22 23 20 18 0 Trustworthy I trust these Reliable Are for people types of sites like me -20*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 8

66%of Irish internet users agree that „reliability‟ is a characteristicthey would attribute to Irish Content Sites(strongest among 25-34s at 70%)[23% Social Networks/39% Portals] 61% assert that Irish Content Sites are „trustworthy‟ (strongest among 25-34 and 35-44 year olds) [18% for social networks/35% for portals] 9

“I trust these types of sites” (Irish Content) (Social Network) 80 72 (Portals ) 60 57 40 35 25 22 22 20 0 All Internet All AOP Member -20 Site Users Users*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 10

• Trust is the key driver for engagement as site visitors are more likely to interact online in a trusted environment• Consumers‟ attitudes towards a site, their motivation for using it and their overall opinion of site are powerful influences on their online behaviour• Irish Internet users are over three times as likely to trust Irish content websites compared to social media and almost twice as likely to trust Irish content websites over portal sites 11

2. Context is King In an age of distraction, the quality and relevance of the content is a vital factor in driving online engagement 12

Irish Content Sites Have A Loyal Audience (Irish Content) 80 (Social Network) 70 68 70 (Portals ) 60 57 45 40 42 40 37 37 32 34 28 20 0 Content is Is an essential Has good Relevant relevant to Irish source of quality content Audiences information -20*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 13

57%agree that Irish Content Sites are an essential source ofinformation (higher among ABC1s at 63%)[28% for social networks/37% for portals] 70% say the content on Irish Content Sites is relevant to Irish audiences (also higher among ABC1s at 77%) [37% for social networks/32% for portals]68%contend that Irish Content Sites have good quality content(few demographic differences)[34% for social networks/45% for portals] 14

“Is an essential source of information” (Irish Content) 80 73 (Social Network) (Portals ) 60 57 40 37 28 24 21 20 0 -20 All Internet All AOP Member Users Site Users*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 15

• The more engaged a user is with a particular site type influences how receptive they are to advertising contained within• Obtaining relevant quality content quickly may have more influence on engagement than excessive dwell time 16

3. Agenda Setting Investing in original, quality content and curating that content continues to appeal to Irish Internet users as „go to‟ sources of information 17

Irish Content Sites Are Seen As Influential (Irish Content) 60 (Social Network) 51 49 49 (Portals ) 41 42 40 30 30 26 27 27 25 23 20 0 Authoritative Opinion Leader I always find Passionate what I am -20 looking for on these types of sites*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 18

51%of Irish internet users agree with the statement „I alwaysfind what I am looking for on these type of sites‟ whenrating Irish Content Sites(higher among ABC1s)[30% for social networks/41% for portals] 49% say Irish Content Sites are „opinion leaders‟ (higher for 25-34s) [27% for social networks/27% for portals] 19

“I always find what I am looking for on these type of sites’ ” (Irish Content) 80 74 (Social Network) (Portals ) 60 51 41 40 30 29 26 20 0 All Internet All AOP Member -20 Site Users Users*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 20

• With an abundance of information online, people are turning to trusted sources such as Irish content sites as key points of reference• While there is an emerging opinion that people now get all their news from social networks like Twitter, the information on Irish content sites is a key driver of online conversation 21

4. Higher Engagement In terms of word-of-mouth, the ability of Irish content websites to attract, engage, and re-attract Irish consumers is vital to online (and offline) marketing success… 22

Irish Content Sites Stimulate Their Audience (Irish Content) 80 (Social Network) (Portals ) 64 60 54 56 53 51 48 46 45 45 43 40 35 36 20 0 I talk to others Interesting about things Engaging Entertaining -20 I’ve seen on these types of sites*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 23

53%say they talk to others about content they have seen on IrishContent Sites(higher for females at 59%)[46% for social networks/35% for portals] 41% say Irish Content Sites provide information they cannot get elsewhere (also higher for females)54% [36% for social networks/32% for portals]indicate that Irish Content Sites are „engaging‟(higher for 45-54s at 61%)[45% for social networks/36% for portals] 24

“I talk to others about things I’ve seen on these types of sites” (Irish Content) 80 (Social Network) 69 (Portals ) 60 53 46 42 40 35 21 20 0 All Internet All AOP Member -20 Site Users Users*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 25

• As more Irish consumers spend more of their time online, the ability of sites to retain the interest of their users will be a key channel for long term brand engagement• Moreover, engagement not only drives brand relations, it also drives brand advocacy – and content sites continue to generate more „water cooler‟ conversations both online and offline, to the benefit of their advertisers 26

5. Positive Endorsement With marketers under increasing pressure to demonstrate a return on investment, Irish content sites are delivering measurably superior results 27

Consumers Respond Well to Adverts on Irish Content Sites (Irish Content)60 (Social Network) (Portals ) 4440 38 35 33 26 25 25 25 22 21 2220 17 0 I trust the The These types of I’m more likely advertising I advertisements sites have to notice see on these on these sites advertising advertising on-20 types of sites are relevant to that is relevant these types of Irish audiences to me sites*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 28

81% of Irish internet users agree that advertising is well matched to the content on Irish Content Sites (higher for 55-64‟s at 90%) [63% for social networks/69% for portals]38%of Irish internet users agree with the statement “I trust theadvertising” on Irish Content Sites(rising to 50% of 25-34s)[17% for social networks/26% for portals] 32% say advertising on Irish Content Sites makes them feel more positively towards the brand (rising to 40% of 45-54s) [18% for social networks/19% for portals] 29

“I trust the advertising I see “These types of sites have on these types of sites” advertising that is relevant to me”60 (Irish Content) (Social Network)40 38 37 (Portals ) 35 31 26 25 2120 17 17 14 11 8 0 All Internet All AOP Member All Internet All AOP Member-20 Site Users Site Users Users Users*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 30

• Irish Content Sites provide a strong „halo effect‟ for their advertisers relative to other sites, in terms of advertising trustworthiness and relevance• This benefit can create a „virtuous circle‟ for advertisers in that relevant content is sub-consciously associated with relevant advertising, in turn reducing barriers to awareness and consideration• Trust, relevance and noticeability also extend beyond content into advertising and brand awareness 31

6. Funnel Vision The task of marketing is to support sales, whether purchasing online or offline. Irish content sites deliver at each stage of the sales funnel … and beyond 32

Advertising On Irish Content Sites Gets A Better Response50 (Irish Content) (Social Network) (Portals ) 33 33 33 3030 28 25 26 25 25 26 26 22 23 20 1410 I have bought a I have visited a I have clicked on These types of I have searched for brand based on-10 sites prompt me to site prompted by advertising on a brand prompted advertising on advertising on these types of find out about by advertising on these types of these types of sites products/brands these types of sites sites sites*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>? 33

30%of Irish internet users agree that they have searched for a brandprompted by advertising on Irish Content Sites(36% of 25-34s)[23% for social networks/26% for portals] 25% have bought a brand prompted by advertising on Irish Content Sites (rising to 30% of 25-34s and 45-54s)22% [14% for social networks/20% for portals]report that they have purchased a product/service afterseeing content about it on Irish Content Sites(rising to 33% of 45-54s)[15% for social networks/15% for portals] 34

(Irish Content) “I have bought a brand “I have clicked on based on advertising on advertising on these types (Social Network)50 these types of sites” of sites” (Portals ) 33 3330 25 25 26 23 20 20 14 13 10 910 All Internet All AOP Member All Internet All AOP Member-10 Site Users Site Users Users Users *NOTE: % 4/5 Agree Q. Please tell us to what extent do you agree or disagree with the following statement about <site>? 35

• It is clear that Irish Content Sites can play a key role at every stage in the „sales funnel‟: from awareness through conversion to purchase – with advertising responsiveness and purchase contribution higher for Irish content sites versus other types of sites• But the sales funnel doesn‟t just end with purchases – beyond each purchase is the customer‟s experience of the product or service, their subsequent loyalty, their willingness to recommend, and of course their repeat purchase. 36

Summary: Only Connect• Engagement and how to measure it is particularly complicated in the online world. Consumers may visit certain sites very frequently and spend considerable time there, yet not notice any advertising• The more an audience trusts and finds the content of a particular site relevant, the more effective the advertising contained within that site is• Visitors to Irish content sites are not only more likely to interact with advertising on the site, but also to take action by purchasing a brand or taking a similar action based on online advertising they have seen• With advertising responsiveness strongest on Irish content sites, it is clear that they provide a unique and effective route to the online Irish consumer 37

Thank You 38

AOP Ireland Study of Online Engagement, April 2012

by Amárach Research

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