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Research: online ads efficiency, influence of purchase intent

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Mitya Voskresensky
Mitya Voskresensky

Online video ads were once much more effective at increasing brand awareness than other formats, but this advantage has diminished over time. However, online video still drives purchase intent more than rich media or simple flash ads. While awareness for video has declined as its novelty wears off, purchase intent from video ads continues to rise. Custom video ads targeted towards specific audiences can be even more effective at influencing purchasing decisions compared to repurposed television ads.

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Dynamic Logic: Beyond the Click ® Novelty Might be Wearing Off, but Online Video Still Drives Purchase Intent More than Other Online Formats With ad spend for online video expected to exceed $3 billion by 20141, the importance of engaging creative, relevant targeting, and ad effectiveness measurement is becoming increasingly critical to the success of online video ads. Analysis of Dynamic Logic's MarketNorms® database Purchase Intent Trend Line reveals that video ads are losing their edge at increasing 2 Online Video Rich Media Simple Flash certain brand metrics compared to other ad formats*. While still an effective form of advertising, their once more Percent Impacted than 100% lead in Online Ad Awareness (average 1 percent impacted of 15.8 for video vs. 7.9 for overall MarketNorms in 2007) has diminished over the past three years and is now on par with overall norms. But there's good news for video. A trending analysis of 0 Q3/06- Q4/06- Q1/07- Q2/07- Q3/07- Q4/07- Q1/08- Q2/08- Q3/08- Q4/08- Q1/09- Q2/09- Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Purchase Intent levels reveals another story — a steady 4 Quarter Rolling Average increase in the persuasion impact of online video. Source: Dynamic Logic MarketNorms; Last 3 Years through Q1/2010; Overall Video N=323 n=382,3 3; Rich Media N=1,207 n=1,5 2,406; Simple Flash N=1,1 n=1,485,83 1 1 79 1 The decreases seen in awareness likely reflect the wearing off of video's novelty, a trend similar to that seen in the early stages of rich media advertising. While other As shown above, video is still the most effective online factors certainly play a role in the effectiveness of online format when it comes to increasing consumers' likelihood creative (check out Dynamic Logic's Online Creative Best to purchase — likely a result of many factors. For one, Practices), novel formats seem to outperform others early marketers are beginning to embrace the fact that the on, particularly on awareness metrics, but decline in online environment is different from TV, and many are effectiveness as penetration increases. pre-testing their ads to determine which creative will generate the biggest impact online. In a recent study, which explored the role of creative content in video, Dynamic Logic found that although repurposed TV spots result in higher brand awareness metrics, custom, made-for-Web creative is far more likely to influence purchase decisions. The trend is especially true among females and younger age groups. Of 18-34 year olds who saw an ad with June 2010 1 Forrester Research
Dynamic Logic: Beyond the Click ® 2 custom creative, for instance, 2.8 percent of viewers were About MarketNorms® influenced to make a purchase decision, compared to 1.1 Advertisers, publishers and agencies use MarketNorms to understand which aspects of online advertising have the greatest impact on brand percent for repurposed TV ads. lift. Dynamic Logic’s MarketNorms database of over 6,000 campaigns across more than a dozen industries has branding lift metrics, ad and In addition to quality creative execution, video is becoming brand attributes, environmental/site data, audience data and other increasingly impactful as more engaging and efficient campaign information collected in over 8.2 million surveys. targeting methods are utilized in the online space. As new www.marketnorms.com innovations (such as tickers or overlays) continue to emerge, pre-testing and in-market measurement will be About Beyond the Click® Since 1999, Dynamic Logic's Beyond the Click® newsletter has provided even more critical in helping advertisers determine how far marketers with actionable insights on the branding impact of digital to deviate from the more traditional pre-roll formats. advertising. Based on research from MarketNorms®, our normative database of over 6,000 online campaigns, as well as experience measuring the effectiveness of mobile, video, social media and other emerging platforms, Beyond the Click continues to be the leading source * Online Ad Formats, as Defined in MarketNorms: for the latest trends, opportunities and best practices for navigating the digital landscape and beyond. • Online Video: Encompasses all ad formats utilizing some form of video, regardless of delivery method: Dynamic Logic, A Millward Brown Company in-page, in-banner, in-stream, in-player, etc. Linear +1 800 245 2455 www.dynamiclogic.com and non-linear formats are included. • Rich Media: Units with which users can interact within a web page. Elements such as sound, video, or Flash may be implemented. May appear in ad formats such as banners, buttons, transitionals, floating, take-overs, etc. • Simple Flash: Ad unit with animation frames; multiple click-through buttons or points may be implemented, but without interactive elements • Static/GIF: Units that have no animation frames, or simple animation without interactive elements. Only a single click-through point may be implemented. ©2010 Dynamic Logic, A Millward Brown Company

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Research: online ads efficiency, influence of purchase intent

  • 1. Dynamic Logic: Beyond the Click ® Novelty Might be Wearing Off, but Online Video Still Drives Purchase Intent More than Other Online Formats With ad spend for online video expected to exceed $3 billion by 20141, the importance of engaging creative, relevant targeting, and ad effectiveness measurement is becoming increasingly critical to the success of online video ads. Analysis of Dynamic Logic's MarketNorms® database Purchase Intent Trend Line reveals that video ads are losing their edge at increasing 2 Online Video Rich Media Simple Flash certain brand metrics compared to other ad formats*. While still an effective form of advertising, their once more Percent Impacted than 100% lead in Online Ad Awareness (average 1 percent impacted of 15.8 for video vs. 7.9 for overall MarketNorms in 2007) has diminished over the past three years and is now on par with overall norms. But there's good news for video. A trending analysis of 0 Q3/06- Q4/06- Q1/07- Q2/07- Q3/07- Q4/07- Q1/08- Q2/08- Q3/08- Q4/08- Q1/09- Q2/09- Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Purchase Intent levels reveals another story — a steady 4 Quarter Rolling Average increase in the persuasion impact of online video. Source: Dynamic Logic MarketNorms; Last 3 Years through Q1/2010; Overall Video N=323 n=382,3 3; Rich Media N=1,207 n=1,5 2,406; Simple Flash N=1,1 n=1,485,83 1 1 79 1 The decreases seen in awareness likely reflect the wearing off of video's novelty, a trend similar to that seen in the early stages of rich media advertising. While other As shown above, video is still the most effective online factors certainly play a role in the effectiveness of online format when it comes to increasing consumers' likelihood creative (check out Dynamic Logic's Online Creative Best to purchase — likely a result of many factors. For one, Practices), novel formats seem to outperform others early marketers are beginning to embrace the fact that the on, particularly on awareness metrics, but decline in online environment is different from TV, and many are effectiveness as penetration increases. pre-testing their ads to determine which creative will generate the biggest impact online. In a recent study, which explored the role of creative content in video, Dynamic Logic found that although repurposed TV spots result in higher brand awareness metrics, custom, made-for-Web creative is far more likely to influence purchase decisions. The trend is especially true among females and younger age groups. Of 18-34 year olds who saw an ad with June 2010 1 Forrester Research
  • 2. Dynamic Logic: Beyond the Click ® 2 custom creative, for instance, 2.8 percent of viewers were About MarketNorms® influenced to make a purchase decision, compared to 1.1 Advertisers, publishers and agencies use MarketNorms to understand which aspects of online advertising have the greatest impact on brand percent for repurposed TV ads. lift. Dynamic Logic’s MarketNorms database of over 6,000 campaigns across more than a dozen industries has branding lift metrics, ad and In addition to quality creative execution, video is becoming brand attributes, environmental/site data, audience data and other increasingly impactful as more engaging and efficient campaign information collected in over 8.2 million surveys. targeting methods are utilized in the online space. As new www.marketnorms.com innovations (such as tickers or overlays) continue to emerge, pre-testing and in-market measurement will be About Beyond the Click® Since 1999, Dynamic Logic's Beyond the Click® newsletter has provided even more critical in helping advertisers determine how far marketers with actionable insights on the branding impact of digital to deviate from the more traditional pre-roll formats. advertising. Based on research from MarketNorms®, our normative database of over 6,000 online campaigns, as well as experience measuring the effectiveness of mobile, video, social media and other emerging platforms, Beyond the Click continues to be the leading source * Online Ad Formats, as Defined in MarketNorms: for the latest trends, opportunities and best practices for navigating the digital landscape and beyond. • Online Video: Encompasses all ad formats utilizing some form of video, regardless of delivery method: Dynamic Logic, A Millward Brown Company in-page, in-banner, in-stream, in-player, etc. Linear +1 800 245 2455 www.dynamiclogic.com and non-linear formats are included. • Rich Media: Units with which users can interact within a web page. Elements such as sound, video, or Flash may be implemented. May appear in ad formats such as banners, buttons, transitionals, floating, take-overs, etc. • Simple Flash: Ad unit with animation frames; multiple click-through buttons or points may be implemented, but without interactive elements • Static/GIF: Units that have no animation frames, or simple animation without interactive elements. Only a single click-through point may be implemented. ©2010 Dynamic Logic, A Millward Brown Company