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BREAKING NEWS & VIEWS
Web Ads Shown to Be as Effective as TV SpotsTuesday, August 18, 2009 Just as every economic downturn breeds negative advertising among consumer brands (seen any car commercials lately?), recessions usually reopen hard competition among media platforms. Last week we saw the Online Publishers Association pit branded media environments against the fragmented content that ad networks aggregate for media buyers. This week, in its “How Advertising Works” report, comScore shows that ads work as well online as they do on TV. According to comScore’s report, over a 12-week span, online campaigns involving consumer packaged goods (CPGs) with a 40% reach of their target segment were responsible for lifting retail sales of the product 9%, compared to an average lift of 8% for TV advertising. The comScore dunnhumbyUSA research examined a panel of 2 million Internet users who opted into having their online behaviors tracked. It also used loyalty card data from 200,000 panelists to track actual buying patterns. The study specifically looked at display ad units (banners and rich media) for branding campaigns. Not only did the campaigns on average lift buying behavior by 9%, but 80% of the campaigns studied across all major product groups registered positive retail effects from the digital advertising. The data is significant on several grounds. CPG advertising continues to lag behind other media buying segments in their move to digital because the branding power of the medium remains in question. “These are precisely the types of persuasive studies we are looking for at Del Monte as digital plays an increasing role in our marketing strategy,” said Bill Pearce, SVP and CMO of Del Monte Food, in a statement. For all of the years that online ad networks have spent making the case for the branding effectiveness of digital media, most traditional marketers continue to identify the medium with search and direct marketing. TV and print media have relied on long histories of research that show to media buyers’ satisfaction the ways in which their media can move the retail needle. Making the bridge between digital advertising and offline, in-store sales has always been a tough case to make. That companies like comScore are starting to make more compelling research cases for that link demonstrates that the brands and agencies are looking more actively for proof. Also significant in this research is the element of reach. The retail lift is associated with campaigns that reach 40% of their target audience, which is a considerable reach in an online environment that is by nature fragmented. Creating audiences that large almost certainly requires ad buys that span premium, portal and remnant content like small sites and blogs. As premium publishers and ad networks bicker over whose environments are most effective with advertisers, they might remember that the media buyers still are looking to move the retail metrics. It benefits all members of the publishing and ad network value chain to find partnerships and bundles that give the media buyer what they need to justify moving budgets from TV to online, and that, ultimately, is reach. If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com
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