Measurement of Online Advertising Effect

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1 Measurement of Online Advertising Effect For APIRA 2009 Hong Kong Peking Tan

2 Time Spend VS Media Market Share Spend time on media 2008, China Mainland Media Marketing Value and Share 2008, China Mainland Internet User Non User Total Media Media CNY m Share Penetration 30% 70% 100% TV 165,975 72% 12 average time on Hours/W Hours/W Hours/W Radio 5,774 3% Newspapers 26,276 11% 2 TV Newspapers Magazines 4,255 2% Outdoor 14,717 6% Internet Internet 12,758 6% 1 Total Media 229, % Data source: CNNIC Report 2008 Dec Data source: GroupM, 2008 Jan

3 Millions Impression of Online Advertising On Sina News homepage, 1/2 area are advertisings which will be exposed to millions of Netizen.

4 The Tail of The Dog The effectiveness of online advertising is hard to measure when only considering a tiny piece of the pie. What about the 99% who don t click? BRANDING Fewer than 1% do click (1 in 100)

5 Impression trends VS Click trends Impression trends Click Trends

6 Different Measurements Behavioral Data Attitudinal Data Customer Profiles Measures Mouse Ad servers and web analysis tools do this Measures Mind Dynamic Logic does this

7 How to measure where consumers are in the continuum? The Hierarchy Effects for Any Advertising 1. First, consumers need to become aware of the brand 2. Then they need to understand the value of the brand to them Brand Awareness Measures the level of familiarity respondents have with the brand (aided and unaided) Message Association Measures the extent to which respondents can match the copy, messages and/or concepts in the creative to the brand 3. Then an opinion about the brand is formed Brand Favorability Measures the extent to which respondents have a positive or favorable opinion of the brand and its relevant topics 4. The consumer then considers whether a purchase is likely or not Purchase Intent Measures the likelihood of respondents to consider purchasing the product/service

8 AdIndex AdIndex measures the effectiveness of an online advertising campaign using key branding metrics

9 AdIndex Methodology Control vs. Exposed 1. Exposure is tracked 2. Respondents are surveyed 3. Difference is determined Exposed Group Control Group Campaign Creative Non-Campaign Creative Both groups are surveyed about their attitudes toward the brand at the SAME time Since the only statistical difference between the two groups is exposure to the banner, we can attribute differences between them to the banner This methodology at a Point in Time isolates the impact of online and controls for variables such as offline advertising and previous brand awareness.

10 Recruitment Example Notes: A visitor is exposed to a test banner and a small percentage (5-10%) will receive an invite asking them to take a generic survey. Dynamic Logic code attached to the creative unit We can build intelligence into timing and frequency of invite (e.g, occurs 5% of impressions, no more than once per user per day) Invite disappears after 15 seconds if unclicked Control group recruited using same method off of generic invite banners, house ads, or tags * Alternative recruitment vehicles (pop-ups, pop-unders, floating ads, interstitials, etc.) can also be used

11 What key steps are involved in a study? 1.Track Ad Exposure Stores ad id, placement, type, frequency of exposure 2. Survey Respondents Control and Exposed groups collected 3. Compare respondent groups - Where are the differences statistically significant?

12 We Measure All Online Ad Formats, And More Branded blogs Advergaming MOBILE RSS Feed Home-page takeovers Video Micro-sites Sponsorships Instant Messenger

13 What You Will Learn Key findings relative to campaign and research objectives Overall Results: Impact of campaign on Brand Awareness, Ad Awareness, Message Association, Brand Favorability and Purchase Intent Results analyzed by: Different levels of exposure frequency Creative execution (where applicable) Media placement (where applicable) Audience analysis, impact of campaign filtered by: Target Audience Demographics and other key audience segments Conclusions & Recommendations Refine further activity to be more effective

14 Sample Results: Brand X Campaign Results Overall, the Brand X campaign successfully achieved its core objectives of generating awareness for the new product line extension and communicating the campaign message Overall Respondents: Brand Metrics * Statistically significant difference between control and exposed group at a 90% confidence level Lift = (Exposed-Control)/Control

15 MarketNorms Thousands of Cases A global benchmarking and planning tool for online branding (the largest database of this kind in the world) Fuelled by AdIndex studies: 5+ years of data 2,700+ campaigns 60,000+ creatives 3,500,000+ respondents Across more than a dozen industries

16 Key Findings from Thousands of cases Online Advertising Impressing has Positive Contribution to Brands

17 Key Findings from Thousands of cases Concentrated Online Ad Exposures Enhance the Impact on Purchase Intent Source: Dynamic Logic's MarketNorms through Q1/2007 Note 1: 'All Ads Seen In 1 Day' N=2,611 campaigns, n=2,474,149 respondents; 'Ads Seen In More Than 1 Day' N=2,471 campaigns, n=2,410,737 respondents Note 2: 'All Ads Seen In 1 Day' includes media purchased as fixed roadblocks as well as that running in rotated placements

18 Key Findings from Thousands of cases Video Ads Achieve Greater Branding Impact With Fewer Impressions

19 Company Overview Dynamic Logic, A Millward Brown Company Founded in 1999, 100+ employees US: New York (HQ), Chicago, San Francisco, LA, Rhode Island Europe HQ: London Asia Pacific base: Tokyo Division of Millward Brown, a WPP Group company 65 offices globally 30 years of brand tracking experience Tested 20,000 TV campaigns, many print, radio, outdoor Conducted over 3,250 studies on online advertising effectiveness (4.8 million respondents) Conducted studies in more than 20 countries in 18 languages Including: Australia, India, Japan, Taiwan, Singapore, Malaysia, South Korea, Thailand, Hong Kong

20 Dynamic Logic Client Roster We work with Publishers, Agencies, and Advertisers

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