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The Halo Effect: Effects of the environment on digital brand advertising

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The Halo Effect: Effects of the environment on digital brand advertising by Simon McDonald, Business Director at InSites Consulting

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The Halo Effect: Effects of the environment on digital brand advertising

  1. 1. The Halo Effect Effect of the environment on digital brand advertising #FTHalo Simon McDonald
  2. 2. Nigel Jacklin WELCOMHalo Effect #FTHalo E
  3. 3. CONTEX T
  4. 4. tabloid newspaper Vogue $40 $250 VOGU E
  5. 5. BLACK BO X
  6. 6. CONTEXT IS Q U E E N Enders Analysis & Millward Brown
  7. 7. CONTEX T“Not everything that can be counted counts, and not everything that counts can be counted” Albert Einstein
  8. 8. HALO EFFEC TSimon McDonald InSites Consulting
  9. 9. www.insites-consulting.com Halo Effect Effect of the environment on digital brand advertising
  10. 10. The Halo Effect Effect of the environment on digital brand advertising #FTHalo Simon McDonald
  11. 11. BACKGROUND Background In digital advertising, it is easier than ever to target specific audiences with little regard for the advertising environment it appears on #FTHalo
  12. 12. Environment has always carried huge weight in planning a campaign across established media… the Halo Effect Background #FTHalo
  13. 13. Observable Halo Effect of Quality Ad Placement on brand perceptions creating more… Sources: Previous FT Halo Study BBC Advertising Dress Test IAB VW campaign test OPA emotional link test Awareness Expensive Trust High Quality Higher advocacy and WO Purchase intent Closing the sale #FTHalo
  14. 14. BACKGROUND Background Is this still the case for digital advertising? #FTHalo
  15. 15. BACKGROUND Objective of study We set out to prove that environment matters more than ever in digital advertising #FTHalo
  16. 16. We set out to prove... Not all content providers are equal Consumers have strong views on attributes associated with specific content providers A ‘rub off’ effect exists Perception of the content provider will effect the consumer’s perception of the brand which is advertised You can’t fit a square peg in a round hole Consumers have opinions on where brands should appear Right environment = implicit added value to a brand Not just a natural association, but even the system 1 part of the brain reinforces this #FTHalo
  17. 17. So how did we do it?
  18. 18. Test Questions Quantitative online survey Global independent sample (1,008) (40% UK, 30% US, 20% Europe, 10% APAC) High income, full time working respondents Respondents aware of at least 1 out of 10 selected content providers Method Content Provider Assessment Product Attribute Evaluation Brand Matching Implicit Test #FTHalo
  19. 19. 10 digital content providers, 6 brands Media and brands Established Content Providers Emerging Content Providers Brands #FTHalo
  20. 20. Dimension 1: Media Attributes Which media sites deliver on which attributes? #FTHalo
  21. 21. Attributes Associated with Different Media Much higher and stronger perception of established content providers across key attributes versus emerging content providers high quality trustworthy business advantage prestigious leader essential reading thought provoking innovative unique boring light-hearted untrustworthy 0% 10% 20% 30% 40% 50% Established Emerging To follow are a number of attributes about the different websites. For each attribute, please tell me which website(s) you would associate with it. Media Attributes #FTHalo
  22. 22. Dimension 2: Product Attributes What is important when buying a new product or service? #FTHalo
  23. 23. Product Attributes So, which is important when considering to purchase each of these products or services? Which are the most important attributes? Leader Contemporary Successful Innovative Traditional Prestigious Trust High quality Contemporary Prestigious Innovative Traditional Leader High quality Successful Trust Prestigious Traditional Contemporary Innovative Leader Successful High quality Trust Traditional Prestigious Contemporary Leader Successful Trust Innovative High quality Traditional Leader Contemporary Prestigious Successful Innovative Trust High quality Prestigious Traditional Contemporary Innovative Leader Successful High quality Trust Most important Least important Watch Banking Services Flights/ Airline Technology Services Car B2B services #FTHalo
  24. 24. Product Attributes So, which is important when considering to purchase each of these products or services? High quality and trust are the most important attributes Leader Contemporary Successful Innovative Traditional Prestigious Trust High quality Contemporary Prestigious Innovative Traditional Leader High quality Successful Trust Prestigious Traditional Contemporary Innovative Leader Successful High quality Trust Traditional Prestigious Contemporary Leader Successful Trust Innovative High quality Traditional Leader Contemporary Prestigious Successful Innovative Trust High quality Prestigious Traditional Contemporary Innovative Leader Successful High quality Trust Most important Least important Watch Banking Services Flights/ Airline Technology Services Car B2B services #FTHalo
  25. 25. Dimension 3: Brand Match Which adverts would you place in which media site? #FTHalo
  26. 26. Six brands shown in rotation and respondents asked to match which of the nine websites most suitable to advertise in So, for the brand X, which website(s) do you think would be the most suitable for this brand? Based on respondents who are aware of websites Brand Match #FTHalo
  27. 27. Established 57% Established 59% Established 47% Established 54% Established 53% Established 48% Emerging 27% Emerging 41% Emerging 29% Emerging 41% Emerging 38% Emerging 34% 20% 40% 60% Which site should advert appear in Average of 51% more placements in established media compared with emerging media Brand Match 211 143 162 132 139 141 Index (Established compared to emerging media) Please have a look at the brand below and select the websites which you think the brand should appear on. #FTHalo
  28. 28. Dimension 4: So What? What is the effect on perception of the brand when it appears in different sites? #FTHalo
  29. 29. Implicit Test Implicit Test: What effect does the media brand have on perceptions of the advertiser? Innovative Successful Trustworthy Prestigious Leader Traditional Contemporary High quality + = (?) #FTHalo
  30. 30. Implicit testImplicit Test #FTHalo
  31. 31. Implicit testImplicit Test #FTHalo
  32. 32. ADDED VALUE OF IMPLICIT MEASUREMENT NICHE POTENTIAL Low agreement, but fast reaction time Brands here have a small, loyal following The best place to be High agreement, quick reaction time. These are natural and spontaneous associations. High agreement, but slow reaction time. These are potential associations which can become natural if the given brand enhances the communication. % of respondents Reactiontime(faster) LIMITS Low agreement, slow reaction time. These items are not linked with brand. Implicit testing to highlight areas that perform well in consumers “system 1” thinking. Fast, frequent, automatic thinking NATURAL
  33. 33. Which of the following would you associate with “honest” Three second test for each individual. Three seconds to hit the space bar • David Cameron • The Queen • Ed Milliband • Simon Cowell • Ant and Dec • David Attenborough Implicit Test@MCDONALDSIMON
  34. 34. Which of these people do think are “honest” Occurrence 76% 64% 59% 28% 25% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% David Attenborough The Queen Ant and Dec Simon Cowell David Cameron Ed Milliband All respondents Which of these people do you think are honest? 3 seconds to hit the space bar for each Implicit Test@MCDONALDSIMON
  35. 35. David Attenborough The Queen Ant & Dec David Cameron Ed Milliband Simon Cowell 900 950 1000 1050 1100 1150 1200 20% 30% 40% 50% 60% 70% 80% Implicit measurement % of respondents Reactiontime(faster) Implicit Test NICHE LIMITS POTENTIAL NATURAL People associated with HONEST
  36. 36. Trust Successful High quality Leader Traditional Innovative Prestigious Contemporary Trust Successful High quality Leader Traditional Innovative Prestigious Contemporary 900 950 1000 1050 1100 1150 1200 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Emerging Established Credit Suisse - Implicit % of respondents Reactiontime(faster) Implicit Test NICHE LIMITS POTENTIAL NATURAL Size of circle equates to importance when purchasing financial services
  37. 37. High quality Trust Innovative High quality Trust Innovative 800 850 900 950 1000 1050 1100 30% 40% 50% 60% 70% 80% 90% Emerging Established Lexus - Implicit % of respondents Reactiontime(faster) Implicit Test NICHE LIMITS POTENTIAL NATURAL Size of circle equates to importance when purchasing a car
  38. 38. Trust High quality Successful Trust High quality Successful 850 900 950 1000 1050 1100 1150 1200 45% 50% 55% 60% 65% 70% 75% 80% Emerging Established British Airways - Implicit % of respondents Reactiontime(faster) Implicit Test NICHE LIMITS POTENTIAL NATURAL Size of circle equates to importance when purchasing airline/flights
  39. 39. High quality Prestigious Trust High quality Prestigious Trust 850 900 950 1000 1050 1100 1150 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Emerging Established TAG Heuer - Implicit % of respondents Reactiontime(faster) Implicit Test NICHE LIMITS POTENTIAL NATURAL Size of circle equates to importance when purchasing a watch
  40. 40. High quality Innovative Trust High quality Innovative Trust 700 800 900 1000 1100 1200 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Emerging Established IBM - Implicit % of respondents Reactiontime(faster) Implicit Test NICHE LIMITS POTENTIAL NATURAL Size of circle equates to importance when purchasing tech services
  41. 41. Trust High quality Successful Trust High quality Successful 850 870 890 910 930 950 970 990 1010 1030 1050 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% Emerging Established KPMG - Implicit % of respondents Reactiontime(faster) Implicit Test NICHE LIMITS POTENTIAL NATURAL Size of circle equates to importance when purchasing B2B services
  42. 42. Trust High quality Successful Trust High quality Successful 880 930 980 1030 1080 40% 45% 50% 55% 60% 65% 70% 75% Emerging Established Summary / Average for all 6 brands Implicit test % of respondents Reactiontime(faster) NICHE LIMITS POTENTIAL NATURAL Implicit Test Size of circle equates to importance
  43. 43. What to remember? 5 tweetaways #FTHalo
  44. 44. 5 tweetaways Trust and high quality top attributes when consumer looking to buy new products and services #fthalo
  45. 45. 5 tweetaways Trust and high quality top attributes when consumer looking to buy new products and services #fthalo Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo
  46. 46. 5 tweetaways Trust and high quality top attributes when consumer looking to buy new products and services #fthalo Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo Consumer as media planner places 50% more ads in established websites v emerging #fthalo
  47. 47. 5 tweetaways Trust and high quality top attributes when consumer looking to buy new products and services #fthalo Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo Consumer as media planner places 50% more ads in established websites v emerging #fthalo Ad placement in established trusted media sites has positive implicit impact on consumer perception of brands advertised #fthalo
  48. 48. 5 tweetaways Trust and high quality top attributes when consumer looking to buy new products and services #fthalo Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo Consumer as media planner places 50% more ads in established websites v emerging #fthalo Ad placement in established trusted media sites has positive implicit impact on consumer perception of brands advertised #fthalo Ad environment, context and placement online is as important for brands as ever #fthalo
  49. 49. uk.linkedin.com/in/simonmcdonald @mcdonaldsimon simon@insites-consulting.com Thanks!

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