Online Advertising and Branding Effectiveness © Оснат Зарецки #digibrand

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  • Never use the term “offices”. Say “locations” instead.
  • UDM is Adopted by 88% of Top U.S. Media Properties (Sept 2010)
  • Heavy and Moderate clickers are only 8% of the internet population but account for 85% of all clicks
  • Key Points: The quality of an ad’s creative has a four times greater impact on sales changes than key media planning variables, like GRPs, wearout and continuity of airing. This research from comScore ARS proves that advertising creative is four times more impactful in influencing sales than media planning variables, like GRP, wearout, continuity/flighting of airing. The study findings showed that fifty-two percent of market share movement is attributable to the quality of creative, making creative the number one driver of sales change. Takeaway for marketers: -There is value in focusing on the quality of creative, and not just relying on media planning elements, which only account for a combined 13% of market share movement. -These findings not only support the value of copy-testing in the traditional TV space, but also in digital advertising, where much of the focus has historically been placed on ad format and placement strategy. -65% (or two thirds) of the factors that influence an ad’s ability to increase sales are factors that comScore ARS can advise on. There are other “levers” (i.e. that other 35%) that also impact sales change but these factors are not as easy to change/adjust.   Study Details: The research findings are based on an analysis of 396 television advertising campaigns (179 brands, 92 categories, 36 advertisers and 8 countries). For each campaign, market share was evaluated pre-campaign and post-campaign to derive the variance in market share shifts explained by various advertising elements (i.e. ad quality, media weight, etc). Sales data was sourced from R. L. Polk New Vehicle Registration, IMS HEALTH, IRI InfoScan, Markettrack, Nielsen SCANTRACK or Nielsen Retail Index.
  • Display will have a much easier time making the case for brand dollars, but it needs to correct the four mistakes we discussed earlier.
  • For every ad, comScore looked at the following post-view behavioral measures: Visitation - A visit to the marketer’s website Minutes –Minutes spent at the marketer’s website Trademark Search – A search for trademark terms belonging to the marketer
  • Online Advertising and Branding Effectiveness © Оснат Зарецки #digibrand

    1. 1. <ul><li>Оснат Зарецки </li></ul><ul><li>Старший Менеджер по развитию , comScore Europe </li></ul>Online Advertising and Branding Effectiveness Lessons from USA and Europe
    2. 2. KEY LESSONS LEARNED <ul><li>CLICKS are misleading brands. </li></ul><ul><li>DIGITAL vs. TV – online campaigns can complement/replace TV for Brands. </li></ul><ul><li>CREATIVE ONLINE is critical, as with TV, to building brands and lifting online and offline sales. </li></ul><ul><li>CONTENT ENGAGEMENT can amplify the effect of an ad placed within the content. </li></ul><ul><li>NOT ALL MEDIA-PLACEMENT STRATEGIES are created equal – facts before hunches. </li></ul>
    3. 3. <ul><li>comScore </li></ul>
    4. 4. comScore is a Global Leader in Measuring the Digital World V0910 NASDAQ SCOR Clients 1600+ worldwide Employees 900+ Headquarters Reston, VA Global Coverage 170+ countries under measurement; 43 markets reported Local Presence 30+ locations in 21 countries
    5. 5. Among our European clients Agencies
    6. 6. Инновационный подход comScore к измерению Счетчики на страницах сайта Unified Digital Measurement™ (UDM) Patent-Pending Methodology ПАНЕЛЬ 2 миллиона панелистов в мире 360°видимость поведения пользователей PERSON -Centric панель с SITE -Census измерением
    7. 7. <ul><ul><li>CLICKS are misleading brands. </li></ul></ul><ul><ul><li>- Natural born clickers </li></ul></ul>
    8. 8. Where are the online advertising $$$ coming from? <ul><li>The internet is disproportionately used for direct response advertising </li></ul><ul><li>Source: Brand.net analysis based on data from Barclays Capital, Think Equity Partners, LLC, and DMA </li></ul>
    9. 9. Display advertising’s early mistake
    10. 10. Clickers becoming extinct in USA? July 2007 March 2009 Source: comScore, Inc. custom analysis, Total US Online Population, persons, July 2007 and March 2009 data periods Heavy and Moderate clickers are only 8% of the internet population but account for 85% of all clicks Heavy Moderate Light Non
    11. 11. And the Russian clickers? Source: comScore Marketing Solutions, Russia, August 2010 Only 10% of the Russian online population click on Display ads!
    12. 12. But Digital Advertising Has Been Proven to Work! Branding Impact Significant <ul><li>Source: comScore Brand Survey Lift Norms, US Market January 2011 </li></ul>
    13. 13. Can it Increase Consumer Engagement: Yes! <ul><li>Source: comScore “Whither the click in Europe?” – February 2010 </li></ul>
    14. 14. <ul><ul><li>DIGITAL vs. TV </li></ul></ul><ul><ul><li>– online campaigns can complement or replace TV for Brands. </li></ul></ul>
    15. 15. Does it Drive Sales: Yes <ul><li>Source: “Whither the Click?” 139 comScore studies in the June 2009 Journal of Advertising Research </li></ul>
    16. 16. Sales Impact Comparable to TV BehaviorScan tests conducted over one year period comScore studies over three months* *Assumes 40% HH Internet reach against target.
    17. 17. <ul><li>CREATIVE ONLINE </li></ul><ul><li>- Is critical, as with TV, to building brands and lifting online and offline sales. </li></ul>
    18. 18. Traditional Television Advertising Development Process <ul><li>Source: AMA Market Research Conference Presentation (2010) Measuring the Effectiveness of Online Advertising Todd Curtis, Senior Consumer Insights Manager, Digital and Applied Analytics for Marketing Effectiveness, General Mills </li></ul>Pre-Testing of Creative Strategy & Campaign Execution Identify Target Audience Strategy Creative Media Plan In Market Testing Post Campaign Evaluation
    19. 19. Digital Advertising Development Process <ul><li>Source: AMA Market Research Conference Presentation (2010) Measuring the Effectiveness of Online Advertising Todd Curtis, Senior Consumer Insights Manager, Digital and Applied Analytics for Marketing Effectiveness, General Mills </li></ul>Pre-Testing of Creative Strategy & Campaign Execution Identify Target Audience Strategy Creative Media Plan In Market Testing Post Campaign Evaluation
    20. 20. Over Half of the Impact of Advertising is Driven by the Strength of Creative <ul><li>comScore ARS Global Validation Summary includes an evaluation of 396 TV ad campaigns, utilizing sales data from R. L. Polk New Vehicle Registration, IMS HEALTH, IRI InfoScan, Markettrack, Nielsen SCANTRACK or Nielsen Retail Index. </li></ul>% Influence on Shifts in Brand Sales Source: comScore ARS Global Validation Summary Numbers represent the percent variance in sales shifts explained by the corresponding factors. Elements such as GRPs, wearout & continuity/ flighting of airing Quality of the creative based on ARS Persuasion Score* Price, promotion and distribution Ad Quality 52% Other 35% Media Plan 13% Creative is 4X more impactful in influencing sales than the media plan
    21. 21. The future of advertising revealing itself <ul><li>Rich media and takeovers - on premium publisher sites reduce clutter and increase creative quality – better for brand advertising. </li></ul>AT&T on last.fm Takeover Apple on New York Times Takeover
    22. 22. <ul><li>CONTENT ENGAGEMENT </li></ul><ul><li>- Can amplify the effect of an ad placed within the content. </li></ul>
    23. 23. What is engagement? <ul><li>Level of focus & attention </li></ul><ul><li>Loss of self-consciousness </li></ul><ul><li>Altered sense of time </li></ul><ul><li>Intrinsic rewards </li></ul><ul><li>Immersion </li></ul>
    24. 24. Engaging content has a greater impact on older consumers <ul><li>Source: comScore ARS Custom Analysis, October 2010 </li></ul><ul><li>*ARS Consumer Choice Score measures changes in consumer brand preference through a simulated purchase exercise. A lift in the ARS Consumer Choice Score is highly correlated with in-market sales lifts. </li></ul>
    25. 25. <ul><ul><li>NOT ALL MEDIA-PLACEMENT STRATEGIES </li></ul></ul><ul><ul><li>are created equal – facts before hunches. </li></ul></ul>
    26. 26. Ad Effectiveness Solutions Post Buy Analysis Reporting on actual campaign delivery Behavioural Effectiveness Measuring consumer behaviour after exposure to online ads Attitudinal Effectiveness Understanding consumer attitudes after exposure to online ads
    27. 27. SELECT MEDIA-PLACEMENT STRATEGIES – 103 campaigns <ul><li>AUDIENCE TARGETING: Targets consumers based on past interest or interaction with related products/content but who have not yet visited the advertiser’s site </li></ul><ul><li>CONTEXTUAL TARGETING: Targets sites with related, page-level content </li></ul><ul><li>EFFICIENCY PRICING (CPC): Based on cost-per-click engagement with creative </li></ul><ul><li>PREMIUM PRICING: Based on high-visibility placements on premium publishers </li></ul><ul><li>RETARGETING: Based on data that confirms users have previously visited an advertiser’s site </li></ul><ul><li>RUN-OF-NETWORK (RON): Includes ads that appear anywhere in the network, often optimized by conversion </li></ul>
    28. 28. How Does Each Placement Strategy Drive Site Visitation? <ul><li>Highest % Lift in visitation </li></ul><ul><li>Within 1 week </li></ul><ul><li>Retargeting* </li></ul><ul><li>Audience </li></ul><ul><li>Efficiency* </li></ul><ul><li>RON* </li></ul><ul><li>Contextual </li></ul><ul><li>Premium </li></ul><ul><li>Within 4 weeks </li></ul><ul><li>ValueClick Media by identifying the 103 campaigns in the comScore panel. US only </li></ul><ul><li>Retargeting* </li></ul><ul><li>Audience </li></ul><ul><li>Contextual </li></ul><ul><li>Premium </li></ul><ul><li>RON* </li></ul><ul><li>Efficiency* </li></ul>*indicates strategy that is based on optimizing to site visitation
    29. 29. Visitor Non-Buyer Analysis 7.6% Bought at easyJet 92% Became Visitor Non-Buyers (VNBs) 87% That Visit Another Relevant Site 88% Did Not Convert 12% Bought Elsewhere 4.1Million Unique Visitors 13% Had No Other Relevant Activity ILLUSTRATIVE DATA ONLY Analysis of Airline Non-Buyers (VNBs) Transaction Share of Lost Sales Among VNBs
    30. 30. Demographic Profile of Exposed Audience
    31. 31. Example of advertising effectiveness UK - The .Fox Ad Studies Reach & Frequency Information by Campaign Campaign Overall Campaign Reach Average Frequency of Exposure Online Gross Rating Points (GRPs) Formats Used Finance 8.2MM (23%) 3.5 82 Only Video Travel 26.4MM (72%) 5.6 405 Display Public Sector 22.8MM (62%) 6.5 403 Display + Video Utilities 16.9MM (46%) 6.0 276 Display
    32. 32. Overall Campaign Summary Advertiser site reach within 4 weeks of first exposure to display ad Reach of advertiser search queries within 4 weeks of first exposure to display ad Sector Unexposed Group Exposed Group Absolute Percentage Point Lift % Lift Finance 1.98% 5.47% 3.49 176% Travel 0.33% 4.88% 4.55 1,379% Public Sector 0.19% 1.05% 0.86 453% Utilities 0.05% 0.55% 0.50 1,000% Sector Unexposed Group Exposed Group Absolute Percentage Point Lift % Lift Finance 3.97% 7.43% 3.46 87% Travel 0.20% 2.40% 2.20 1,100% Public Sector 1.97% 3.50% 1.53 78% Utilities 1.07% 2.55% 1.48 138%
    33. 33. KEY LESSONS LEARNED <ul><li>CLICKS are misleading brands. </li></ul><ul><li>DIGITAL vs. TV – online campaigns can complement/replace TV for Brands. </li></ul><ul><li>CREATIVE ONLINE is critical, as with TV, to building brands and lifting online and offline sales. </li></ul><ul><li>CONTENT ENGAGEMENT can amplify the effect of an ad placed within the content. </li></ul><ul><li>NOT ALL MEDIA-PLACEMENT STRATEGIES are created equal – facts before hunches. </li></ul>
    34. 34. Thank You. Osnat Zaretsky Twitter - @Osnatz ozaretsky@comscore.com THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE ™

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