branding and cost effectiveness of rich media in online advertising presented by: andrew latzman,...

Branding and Cost Effectiveness of Rich Media in Online Advertising

Presented by:

Andrew Latzman, Dynamic LogicMarc Ryan, Nielsen//NetRatings

June 20th, 2003

2

AdRelevance Methodology:

• Quarterly survey of top publishers– Approximately 1000 publishers surveyed

• Rate card information collected– Un-Negotiated– Run of Site

• Rates collected for all standard IAB sizes and new rich media technologies– Banners, buttons, rectangles, squares, skyscrapers– Generic Flash, Forms, Eyeblaster, Shoshkeles, Unicast,

PointRoll, Eyewonder, Klip-Ad, Enliven, Bluestreak, Java

3

Dynamic Logic Ad Effectiveness

Group A*

Group B*

Did they see the advertisement?

Yes

No

Both groups

are surveyed

about their

attitudes

toward the

brand in the

ad at the

SAME time

Do the results

indicate a difference?

Yes or No?

Since the only statistical difference

between groups A and B is the

presence of the banner, we can attribute the lift

to the ad

Control / Exposed Methodology

4

Rich Media’s Share of Ad ImpressionsThe amount of rich media in the average advertiser’s campaign has increased dramatically over the course of the past year.

Source: Nielsen//NetRatings

7.8%

11.0%

13.1%

17.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Q1 2003 Q2 2003 Q3 2003 Q4 2003

Shar

e of

Mar

ket I

mpr

essi

ons

5

Rich Media’s Share of Ad Impressions

0

10,00020,000

30,000

40,00050,000

60,000

70,000

80,00090,000

100,000

Mil

lio

ns

Non-Rich Media

Rich Media


6

Sites Hosting Rich Media

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Portal

Sports & Recreation

General News

Travel

Games

Business & Finance

Movies & Television

Music & Streaming Media

Fashion, Romance & Celebrity

Kids & Family

Millions

Top 10 Site Categories Serving Rich Media Impressions


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Cost vs. Effectiveness

• Considerable variety in the format of online ads available– Banners, Skyscrapers and Buttons present advertisers with

many different creative options

• Additionally, different rich media technologies available– The rich media options are typically more expensive

• QUESTION: Does a more expensive ad unit lead to more branding effectiveness?– To enable clean comparison, each format and technology is

analyzed using only ONE exposure

8

Benchmark for Comparison

+ 5

+ 5

+ 2

+ 3

• Benchmark used is MarketNorms database– Over 800 campaigns with 880,000+ respondents– For analysis, only those with one exposure included

9

Ad Format Examples

Skyscraper 120 x 600

Banner 468 x 60

Leaderboard 728 x 90

Large Rectangle 336 x 280

Button 120x60

Rectangle 180 x 150

10

Rich Media Examples

11

Effectiveness by Format: Awareness

Index of Performance vs. Benchmark

37%

56%

62%

93%

145%

113%

0% 50% 100% 150% 200%

Button

Banner

Rectangle

Skyscraper

Leaderboard

Large Rectangle

Source: MarketNorms 2003

Best at Increasing Awareness of Brands

12

Effectiveness by Format: Association


50%

52%

62%

81%

162%

125%

0% 50% 100% 150% 200%

Skyscraper

Button

Banner

Leaderboard

Large Rectangle

Rectangle


Best at associating messages or sponsorships with brands

13

Effectiveness by Format: Persuasion


0%

3%

131%

214%

84%

140%

0% 100% 200% 300% 400% 500%

Leaderboard

Banner

Button

Skyscraper

Large Rectangle

Rectangle


Best at persuading favoring of brands and stimulating intent

14

Effectiveness by Format: Composite


51%

52%

73%

78%

135%

129%

0% 50% 100% 150% 200%

Button

Banner

Leaderboard

Skyscraper

Rectangle

Large Rectangle


Best overall performance

15

Effectiveness vs. Cost One Impression Only

Cost per Effectiveness Point

$0.88

$0.76

$0.62

$0.50

$0.31

$0.39

0% 50% 100% 150% 200%

Button

Banner

Skyscraper

Rectangle

Large Rectangle

Leaderboard

Source: MarketNorms 2003, Nielsen//NetRatings

Most Cost Effective

16

Rich Media Effectiveness - Composite


133%

135%

223%

88%

225%

0% 50% 100% 150% 200% 250% 300%

Non-RichMedia

Flash

Rich Media

Provider A

Provider B


Top Rich Media Providers Most Effective

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Effectiveness vs. Cost

$0.63

$0.52

$0.48

$0.46

$0.34

$0.00 $0.50 $1.00

Flash

Rich Media

Provider B

Non-RichMedia

Provider A

Source: MarketNorms 2003, Nielsen//NetRatings

Top Providers are worth the cost, but Non-Rich Media Cost Effective too

Cost per Effectiveness Point

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• Creativity– Clever and original designs most effective often regardless of

format or technology employed

• Frequency of Exposure– Powerful variable in building awareness and persuading– Next step in analysis is to incorporate cost of multiple

exposures in building brands through marketing

Analysis does not control for two major variables

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• Bigger Still Better– Larger and newer formats effectively utilize more real estate to

communicate and persuade– Effectiveness is worth additional cost as seen in greater ROI

per branding point

• Rich Media Outperforms Static units– Top Providers developing ad units that beat benchmarks

considerably– Higher cost is justified by returns– Non-rich media, while less effective can still be very cost

effective

Conclusions

branding and cost effectiveness of rich media in online advertising presented by: andrew latzman,...

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