NONE: ONLINE-ADS>> WEB-AD'98 COVERAGE: 3/9/98 - DISSECTING THE
ONLINE-ADS>> WEB-AD'98 COVERAGE: 3/9/98 - DISSECTING THE
richard_at_tenagra.com
Mon, 9 Mar 1998 07:49:24 -0600 (CST)
"EXPERTS", rpt #9
Sender: owner-online-ads_at_o-a.com
Precedence: bulk
Web Advertising '98 Email Coverage
DISSECTING THE "EXPERTS", rpt #9
March 9, 1998
This is the ninth in a series of 10 reports from Richard Hoy, who
covered the Web Advertising '98 conference in New York.
You will receive these reports in addition to your normal Online Ads
posts/digests.
This coverage is archived at:
http://www.o-a.com/webad98/webad98-archive.html
======================================================================
======================================================================
This conference coverage is generously underwritten by:
Discover the best source for Internet marketing trends and tactics!
http://www.cobb.com/go/iba/o-a
Internet Business Advantage brings you all the information that
Internet marketers are looking for--advice, case studies, new
technology, and statistical information to help you make smarter
Internet marketing decisions. Learn the insider secrets that open the
power and potential of marketing and selling on the Internet!
Your subscription to Internet Business Advantage includes a bi-weekly
print newsletter; weekly E-mail updates; and complete access to the
companion Web site.
Subscribe to Internet Business Advantage today:
http://www.cobb.com/go/iba/o-a
======================================================================
======================================================================
DISSECTING THE "EXPERTS"
Branding on the Internet
Andy Bourland (andy_at_clickz.com)
Publisher, ClickZ and Microscope
Andy Bourland, founder of the popular industry e-zines
ClickZ and Microscope, dissected the brand studies that came
out of Forrester, MB Interactive, Berkeley Systems, and
Pointcast.
First up on the chopping block was Forrester. Their study
consisted of questions asked to the market managers of 50
top consumer brands and media buyers from 25 top interactive
agencies.
According to Forrester's research, the Internet is not as
effective a branding tool as the traditional branding
vehicles - event sponsorship, newspapers, radio, magazines,
and TV. Though the study did conclude that the Internet is
better at branding than direct mail and billboards.
Over the course of the next two years, the survey predicts
that Web sites will remain the number one branding vehicle
online, followed by banners, sponsorships, push ads, and
Interstitials.
Those interviewed said the two biggest things needed for
brand advertising to flourish on the 'Net was more bandwidth
and a larger audience. 50 percent said that they would spend
less than $500,000 of their media budgets on branding buys
online over the next year.
The study concluded that brand advertising on the Internet
will not flourish until 2002.
So what should we conclude from this? Andy pointed out that
by looking at only the consumer market, Forrester missed the
whole business-to-business marketing angle, which is really
the critical mass online now. I'd like to also point out
that Forrester Research is the same group of people who
concluded no online publisher would make money before the
year 2000. I know of two online publishing ventures that
have already proven this false.
The next study Andy analyzed for the group was MB
Interactive's study on branding, commissioned by the
Internet Advertising Bureau. MB Interactive measured user
behavior across 12 major publishing sites. They surveyed
16,758 people.
They found banners can impact branding. The average increase
in brand awareness was a modest five percent. But there was
a reason for this, and it was probably the most unusual
finding of the study. Of the 12 brands tested, nine had
positive results and three had very negative results.
Because of these extremes, the average was only 5 percent.
The same thing happened when MB Interactive measured
consumer loyalty. The overall increase in consumer loyalty
was only four percent across the 12 brands. For three
products, the advertising had a negative impact on their
consumer loyalty.
There was not clear explanation in the report for these
negative results. One explanation is that there were other
things going on with the brands that took a nose dive and
the performance of the banner ads were a reflection of this.
Two other important findings that came out of this study.
First, it appears that a single ad exposure online can
impact the likelihood of purchasing a product. And second,
there was no statistical difference in customer loyalty
between those who clicked on an ad and those who didn't -
suggesting that banner ads can have impact without
generating a click-through (something pointed out in other
sessions again and again).
After the IAB study, Andy took a critical look at Berkeley
Systems, who commissioned MB Interactive to study the
effectiveness of interstitial ads on "You Don't Know Jack."
MB Interactive surveyed 7810 people as they played the game.
They looked at four types of brands: a beverage, a
fragrance, a high-tech consumer product and a new Web site.
MB Interactive found a 71 percent increase in brand
awareness overall. There was an overall increase of 14
percent in purchase intent. MB Interactive also took it a
little further and tested for recall of key elements within
each ad. They discovered a 56 percent increase in overall
recall.
MB Interactive has its own algorithm for comparing
advertisements across media. Known as a FORCE score (First
Opportunity to see Reaction Created by the Execution), it
attempts to isolate the overall creative power of an ad from
the advertising vehicle. Essentially the FORCE algorithm
attempts to measure the first-time impact, or brand-linked
awareness, of an ad independent of how it is being
delivered.
The average FORCE score for Interstitials as measured in
this study were high. In fact, it was higher than the
average for TV, the Web, or print.
ad vehicle average FORCE Score
------------ -------------------
Interstitials 25
Print 18
Web 12
TV 10
What this seems to indicate is that Interstitials make a
first-time impact 2.5 times that of television. The probable
explanation for this is that thought TV is a more dynamic
medium, you're in a passive mind set when you view it. With
both print and the Web, you are in an active mind set. So
Interstitials as executed the way Berkeley Systems does it
combine the dynamic qualities of TV with the active mind set
quality of print and the Web.
The final study Andy discussed was one conducted on the
Pointcast Network for the direct PC manufacturer Micron.
Pointcast conducted an email survey that yielded about 500
respondents. Awareness of the Micron brand did increase.
They moved from 5th to 3rd most recognized on a list of
direct PC marketers.
This ends the ninth report from Web Advertising 98. Stay tuned for the
final session synopsis.
======================================================================
======================================================================
This conference coverage is generously underwritten by:
Discover the best source for Internet marketing trends and tactics!
http://www.cobb.com/go/iba/o-a
Internet Business Advantage brings you all the information that
Internet marketers are looking for--advice, case studies, new
technology, and statistical information to help you make smarter
Internet marketing decisions. Learn the insider secrets that open the
power and potential of marketing and selling on the Internet!
Your subscription to Internet Business Advantage includes a bi-weekly
print newsletter; weekly E-mail updates; and complete access to the
companion Web site.
Subscribe to Internet Business Advantage today:
http://www.cobb.com/go/iba/o-a
======================================================================
======================================================================
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