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Study of Online Engagement17th April 2012

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The Association of Online Publishers Ireland is an industry body representing Irish digital publishing companies that create original, branded, local, quality content.

Current members include entertainment.ie, irishtimes.com, tv3.ie, independent.ie and rte.ie

AOP Ireland Background

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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.

Overview

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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.

Methodology

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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.

Methodology

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Irish Content Sites

PortalsSocial Networks

Site types studied

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1. A Matter of Trust

Trust is key in driving both site engagement and advertising responsiveness

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Irish Content Sites Are Trustworthy

-20

0

20

40

60

80

6157

66

55

1822 23

45

35 3539 37

Are for people like me

Trustworthy ReliableI trust 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>?

(Irish Content)

(Social Network)

(Portals )

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61% assert that Irish Content Sites are ‘trustworthy’(strongest among 25-34 and 35-44 year olds)

[18% for social networks/35% for portals]

66% of Irish internet users agree that ‘reliability’ is a characteristic they would attribute to Irish Content Sites(strongest among 25-34s at 70%)[23% Social Networks/39% Portals]

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“I trust these types of sites”

-20

0

20

40

60

80

57

72

22 22

35

25

All Internet Users All AOP Member Site Users

*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

(Irish Content)

(Social Network)

(Portals )

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• 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

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

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Irish Content Sites Have A Loyal Audience

-20

0

20

40

60

80

70

57

68 70

37

2834

40

3237

4542

Has good quality content

Content is relevant to Irish

Audiences

Is an essential source of

information

Relevant

(Irish Content)

(Social Network)

(Portals )

*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

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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]

57% agree that Irish Content Sites are an essential source of information (higher among ABC1s at 63%)[28% for social networks/37% for portals]

68% contend that Irish Content Sites have good quality content(few demographic differences)[34% for social networks/45% for portals]

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“Is an essential source of information”

-20

0

20

40

60

80

57

73

28

21

37

24

All Internet Users

All AOP Member Site Users

*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

(Irish Content)

(Social Network)

(Portals )

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• 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

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3. Agenda SettingInvesting in original, quality content and curating that content continues to appeal to Irish Internet users as ‘go to’ sources of information

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Irish Content Sites Are Seen As Influential

-20

0

20

40

60

49 49 51

42

2327

30 3026 27

41

25

PassionateAuthoritative I always find what I am

looking for on these types of

sites

Opinion Leader

(Irish Content)

(Social Network)

(Portals )

*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

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51% of Irish internet users agree with the statement ‘I always find what I am looking for on these type of sites’ when rating 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]

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-20

0

20

40

60

80

51

74

3026

41

29

All Internet Users

All AOP Member Site Users

*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

“I always find what I am looking for on these type of sites’ ”

(Irish Content)

(Social Network)

(Portals )

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• 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

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4. Higher EngagementIn 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…

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Irish Content Sites Stimulate Their Audience

-20

0

20

40

60

80

64

53 54 56

48 46 4551

45

35 36

43

EntertainingInteresting EngagingI talk to others about things I’ve seen on

these types of sites

(Irish Content)

(Social Network)

(Portals )

*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

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53% say they talk to others about content they have seen on Irish Content 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)[36% for social networks/32% for portals]54%

indicate that Irish Content Sites are ‘engaging’(higher for 45-54s at 61%)[45% for social networks/36% for portals]

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“I talk to others about things I’ve seen on these types of sites”

*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

-20

0

20

40

60

80

53

69

4642

35

21

All Internet Users

All AOP Member Site Users

(Irish Content)

(Social Network)

(Portals )

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• 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

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5. Positive EndorsementWith marketers under increasingpressure to demonstrate a return on investment, Irish content sites are delivering measurably superior results

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Consumers Respond Well to Adverts on Irish Content Sites

-20

0

20

40

60

38

44

35 33

1722 21 22

26 25 25 25

I trust the advertising I see on these types of sites

These types of sites have advertising

that is relevant to me

I’m more likely to notice

advertising on these types of

sites

The advertisements on these sites are relevant to Irish audiences

(Irish Content)

(Social Network)

(Portals )

*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

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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 the advertising” 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]

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“I trust the advertising I see on these types of sites”

-20

0

20

40

60

38 37 3531

17

8

2117

26

14

25

11

All Internet Users

All AOP Member Site Users

All Internet Users

All AOP Member Site Users

“These types of sites have advertising that is relevant to me”

*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

(Irish Content)

(Social Network)

(Portals )

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• 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

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6. Funnel VisionThe 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

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Advertising On Irish Content Sites Gets A Better Response

-10

10

30

50

25

33 33 3330

14

2225 25

2320

2628

26 26

I have clicked on advertising on these types of

sites

I have bought a brand based on advertising on these types of

sites

I have visited a site prompted by

advertising on these types of

sites

I have searched for a brand prompted by advertising on

these types of sites

These types of sites prompt me to

find out about products/brands

(Irish Content)

(Social Network)

(Portals )

*NOTE: % 4/5 All Internet Users AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

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25% have bought a brand prompted by advertising

on Irish Content Sites(rising to 30% of 25-34s and 45-54s)

[14% for social networks/20% for portals]22% report that they have purchased a product/service after seeing content about it on Irish Content Sites(rising to 33% of 45-54s)[15% for social networks/15% for portals]

30% of Irish internet users agree that they have searched for a brand prompted by advertising on Irish Content Sites(36% of 25-34s)[23% for social networks/26% for portals]

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“I have bought a brand based on advertising on

these types of sites”

-10

10

30

50

2523

33 33

14

10

25

2020

9

26

13

All Internet Users

All AOP Member Site Users

All Internet Users

All AOP Member Site Users

“I have clicked on advertising on these types

of sites”

*NOTE: % 4/5 AgreeQ. Please tell us to what extent do you agree or disagree with the following statement about <site>?

(Irish Content)

(Social Network)

(Portals )

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• 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.

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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

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Thank You