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Research: online ads efficiency, influence of purchase intentDocument Transcript
Dynamic Logic: Beyond the Click ® Novelty Might be Wearing Off, but Online Video Still Drives Purchase Intent More than Other Online Formats With ad spend for online video expected to exceed $3 billion by 20141, the importance of engaging creative, relevant targeting, and ad effectiveness measurement is becoming increasingly critical to the success of online video ads. Analysis of Dynamic Logics MarketNorms® database Purchase Intent Trend Line reveals that video ads are losing their edge at increasing 2 Online Video Rich Media Simple Flash certain brand metrics compared to other ad formats*. While still an effective form of advertising, their once more Percent Impacted than 100% lead in Online Ad Awareness (average 1 percent impacted of 15.8 for video vs. 7.9 for overall MarketNorms in 2007) has diminished over the past three years and is now on par with overall norms. But theres good news for video. A trending analysis of 0 Q3/06- Q4/06- Q1/07- Q2/07- Q3/07- Q4/07- Q1/08- Q2/08- Q3/08- Q4/08- Q1/09- Q2/09- Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Purchase Intent levels reveals another story — a steady 4 Quarter Rolling Average increase in the persuasion impact of online video. Source: Dynamic Logic MarketNorms; Last 3 Years through Q1/2010; Overall Video N=323 n=382,3 3; Rich Media N=1,207 n=1,5 2,406; Simple Flash N=1,1 n=1,485,83 1 1 79 1 The decreases seen in awareness likely reflect the wearing off of videos novelty, a trend similar to that seen in the early stages of rich media advertising. While other As shown above, video is still the most effective online factors certainly play a role in the effectiveness of online format when it comes to increasing consumers likelihood creative (check out Dynamic Logics Online Creative Best to purchase — likely a result of many factors. For one, Practices), novel formats seem to outperform others early marketers are beginning to embrace the fact that the on, particularly on awareness metrics, but decline in online environment is different from TV, and many are effectiveness as penetration increases. pre-testing their ads to determine which creative will generate the biggest impact online. In a recent study, which explored the role of creative content in video, Dynamic Logic found that although repurposed TV spots result in higher brand awareness metrics, custom, made-for-Web creative is far more likely to influence purchase decisions. The trend is especially true among females and younger age groups. Of 18-34 year olds who saw an ad withJune 2010 1 Forrester Research