digiday agency la: the 2012 online brand advertising outlook

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The Online Advertising Outlook for 2012Today’s Panelists

Moderator: • Jeff Smith, CMO & SVP Client Services, Vizu

Panelists:• Julie Berger, VP & Managing Director of Digital , Horizon Media • Amy Clark, Senior Research Analyst, Specific Media


Real-Time Brand Advertising Effectiveness

The Online Brand Advertising Outlook for 2012

February 29th 2012


The Online Advertising Outlook for 2012The Brand’s Perspective

• Direct Response Advertising Growing: – 56% of brands respondents said they will increase spending in 2012– 15% said they will increase spending by more than 20%

• Brand Advertising Growing Even Faster: – 64% of brand respondents said they will increase spending in 2012– 22% said they will increase spending by more than 20%


Brands: In 2012, to what extent will you increase the % of your online ad budget allocated to brand advertising?

The Online Brand Advertising Outlook for 2012Brand vs. Performance: Brands’ Perspective

2%

0%

7%

31%

50%

10%

0% 10% 20% 30% 40% 50% 60%

We do not spend on online brand advertising

Substantially decrease

Moderately decrease

Stay about the same

Moderately increase

Substantially increase


The Online Brand Advertising Outlook for 2012Brand vs. Performance: Brands’ Perspective

Brands: What type of digital advertising do you plan to use in 2012?


Media Sellers: Where do you believe the majority of your ad sales dollars will be generated in 2012?

The Online Brand Advertising Outlook for 2012Brand vs. Performance: Media Seller’s Perspective

33%

67%

Direct Response

Brand Advertising

Growth Predictions• Direct Response Advertising Growing: 32% of media sellers responding said they

expected sales growth in 2012, 8% said they expected growth greater than 20%

• Brand Advertising Growing Faster: 51% of media sellers responding said they expected sales growth in 2012, 18% said they expected growth greater than 20%


The Online Brand Advertising Outlook for 2012Brand Ad Focus: Brands’ Perspective

Brands: How will your spending in the following channels change relative to 2011?

17%

20%

29%

57%

63%

69%

37%

60%

57%

34%

34%

26%

0% 20% 40% 60% 80% 100%

Connected TV/IPTV

Standard Display Advertising

Rich Media Advertising

Video Advertising

Social Media Advertising

Mobile Advertising

Increase

Stay about the same

Decrease

Don't Use


The Online Brand Advertising Outlook for 2012TV Dollars: Brands’ Perspective

Brands: Which statement best describes your thinking around substituting online video advertising for television advertising in the year ahead?

11%

31%

46%

11%

0% 10% 20% 30% 40% 50%

We will not be using online video advertising

We will be experimenting with online video advertising

We will be shifting some of our advertising dollars from television to

online video

We will be shifting a material amount of our advertising dollars from television to

online video


Brands: Which of the following would lead you to increase spending on online brand advertising?

38%

50%

53%

56%

68%

Ability to verify my online brand advertising was actually delivered to my target

audience

Purchasing efficiency (e.g. the ability to reach audience at scale through fewer

outlets)

Ability to use the same metrics to evaluate brand advertising effectiveness online as

are used offline

Ability to verify my brand advertising created the desired result (e.g. increased

awareness of my product)

Improved clarity around the actual return on your brand advertising investment

The Online Brand Advertising Outlook for 2012Question: What would make it even better?

Cleaning up the “Metrics Morass”

in the online medium


Commenting on the amount of data bandied around in the online ecosystem, 34% of Media buyers stated:

“I’m drowning in data; I would prefer to focus on a few meaningful metrics to evaluate the

performance of my campaign”



Interviewees comments mirrored in IBM CMO Report



Brands: Which of the following would lead you to increase spending on online brand advertising?

38%

50%

53%

56%

68%

Ability to verify my online brand advertising was actually delivered to my target

audience

Purchasing efficiency (e.g. the ability to reach audience at scale through fewer

outlets)

Ability to use the same metrics to evaluate brand advertising effectiveness online as

are used offline

Ability to verify my brand advertising created the desired result (e.g. increased

awareness of my product)

Improved clarity around the actual return on your brand advertising investment


Cleaning up the “Metrics Morass”

in the online medium



Brands Answer: Cleaning up the metrics mess; What do they want to use?

Asked to what extent they would like to leverage offline metrics in the online medium, brands say:

Asked what they typically report, Media Sellers say:

15%

24%

55%

6%

0% 10% 20% 30% 40% 50% 60%

Just metrics specific to the online medium

Some of the metrics from the offline medium, some metrics specific to the

online medium

The exact same metrics, and a few additional metrics specific to the online

medium

The exact same metrics, and nothing else


20%

29%

29%

31%

57%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Time spent / Dwell time (e.g. on a micro-site)

Shares or re-posts of the advertising

Clickthrough rates on the advertising

Interaction rates with the advertising

Sales generated as a result of the advertising

Brand Lift generated as a result of the advertising

The Online Brand Advertising Outlook for 2012What would make it even better?

Brands Answer: Cleaning up the metrics mess; What do they want to use?

Which metrics do you believe are most appropriate to use to determine the effectiveness of your online brand advertising?



Brands Answer: Cleaning up the metrics mess; but unfortunately, the click-through still clouds the picture

3%

26%

71%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Clickthrough rates should be the primary metrics used to assess the performance of online brand advertising campaigns

Clickthrough rates are irrelevant to online brand advertising

Clickthrough rates have some relevance for online brand advertising

Which statement best describes your opinion of click-through rates as they relate to online brand advertising campaigns?



Other key things brand advertisers are looking for:

• Focus: 97% want the primary marketing objective against which ROI will be calculated, and the metric that will be used to measure performance against that objective, clearly defined in advance of the campaign

• Proof: • Only 6% of brands surveyed said they “Strongly Believed” media sellers claims

they can reach the custom / niche audiences the brands are looking for. • And even if the target audience is reached, nearly all respondents want proof

consumer opinion was shifted


The Online Brand Advertising Outlook for 2012Conclusion

• In 2012, brand advertising may be set to finally surpass performance based advertising in the online medium

• Both media buyers and sellers see significant growth in online brand advertising in 2012; particular channels will grow faster than others – Mobile, – Social, – Video

• That said, the outlook could be even better, if we work to clean up the “metrics morass” in the online medium

• Brands have told us what they are looking for – its up to all of us to provide it


The Online Brand Advertising Outlook for 2012Audience Q&A

Obtain copy of the full reportEmail Darren Ellis at [email protected]

Benchmark Your Brand Advertising IQ based on this Surveyhttp://brandlift.vizu.com/knowledge-resources/brand-ad-iq/

mailto:[email protected]

http://brandlift.vizu.com/knowledge-resources/brand-ad-iq/

digiday agency la: the 2012 online brand advertising outlook

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