This document summarizes research from the Internet Advertising Bureau (IAB) on how brands spend online and the impact of digital advertising. Some key findings include:
- Brands are spending more online, with a 10% year-over-year increase in the first half of 2010. Display advertising and online video have seen strong growth.
- Exposure to multiple online advertising formats, such as display and search, increases the likelihood users will visit brand websites and progress in the customer journey, such as obtaining a quote.
- Display advertising alone can drive up to 6.7% of exposed users to brand websites within a month or two, much higher than typical clickthrough rates, demonstrating its latent effect on users.
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Iab mobile landscape
1. Introduction & Brand Planning Online Tim Elkington Director of Research and Strategy
2. Upcoming IAB events and research Events & Training Mobile Planning Seminar – 18th January – 9am – FREE Research Breakfast – 19th January – 9am – FREE Research Launching a brand online – Starbucks VIA – Q1 2010 Students Online – Q1 2010 The benefits of behavioural advertising – Q1 2010 www.iabuk.net
5. £1,968.6mmarket in H1 2010Anincreaseof£209m year-on-year10% increaseon a like-for-like basis Source: PwC / Internet Advertising Bureau, The Advertising Association / WARC
6. The digital media mix % share of revenues for the H1 2010 H1 2010 total £1,968.6 NB: Other includes Lead Generation and Solus E-mail Source: PwC / Internet Advertising Bureau / WARC
7. The display digital media mix % share of display revenues for H1 2010 H1 2010 display total £380.9m Source: PwC / Internet Advertising Bureau / WARC
8. Video shows market beating growth Pre/mid/post roll grown X 5 in 2 years Source: PwC / Internet Advertising Bureau
9. IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. Data excludes unclassified, multi-advertiser and misc figures and covers 72% of online display revenues in H1 2010. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC Share of spend by Consumer Goods advertisers has grown
10. Top 20 online display advertisers Source: Nielsen Media Research Jan – Jun 2010
18. Online video audience 35.1 million unique viewers 6.65 billion videos viewed 561.7 million hours of video viewed 16 hours per person per month Source: ComScore September 2010
19. Mindset influences recall State of mind: Expectant Attention: Higher Ad Recall: 44% Completion: 61% State of mind: Reflective Attention: Lower Ad Recall: 37% Completion: 42% Pre-Roll Video Clip Post-Roll BASE: 4459. All exposed to advertising
20. Significance of daypart and location State of mind: Distracted Behaviour: Exploratory State of mind: Attentive Behaviour: Restricted Evening Daytime Willing to explore Focused attention RESPONSE CAMPAIGN BRANDING CAMPAIGN
21. Why? 3 – It’s easier to plan & buy online media
25. UKOM demographic information Gender & age (2+) Region Household size & Income Social grade & Acorn groups Main shopper Life plans – new car, home improvements
26. November 2010 stats Source: UKOM November 2010 Apr 2010: Digital Universe 46.9m aged 2+ Active Universe 40.5m aged 2+ Average 2424 pages/user
27. Top 10 sites for reach – no surprises Source: UKOM November 2010
36. Pricing - has got simpler Unlimited data plans quadruple in last 2 years Source: Comscore Source: comScore GSMA MMM; comScore Media Metrix, December 2009
40. 2009 total mobile ad spend breakdown Total market £37.6m +32.2% yr / yr Source: IAB / PwC mobile display ad spend survey 2009; search spend figure derived from modelling and industry estimates
41. Based on 55% of total display ad spend IAB estimates for industry sector shares are based on categorised net revenue from media owners provided by PwC. Data excludes unclassified, multi-advertiser and misc figures and covers 55% of mobile display revenues in 2009. Source: PricewaterhouseCoopers / Internet Advertising Bureau Industry sector display market shares
43. Experience in mobile advertising grows What experience do you have with mobile advertising? Difficult to sell in to our clients Less respondents have NO experience of mobile advertising in 2010
44. Mobile specialist responsibility in planning campaign grows Who is responsible for the planning of mobile campaigns within your agency? Specialist mobile team easily accessible to planners and our online specialists and known/used by them. 2 years on, the proportion of mobile specialists in 2010 responsible for planning mobile campaigns has practically doubled
45. Mobile specialist responsibility also increases within media buying Who is responsible for the buying of mobile campaigns within your agency? We are aligned with a mobile specialist
46. Mobile commerce research Consumers moving faster than retailers – 4.2m visitors to retail sites every month 41% of UK retail brands expect to have transactional mobile presence in next year 59% expect mobile revenues to increase next year – 94% see it as an opportunity 74% want more training – only 1 in 10 retailers think they are experts in the area Source: IAB / AIME / IMRG / Orange Mobile Commerce research
47. Mobile commerce consumer wave People do it – 51% of the UK engage in M-Commerce, spending up to £14.50 on an average transaction People like it – 42% say they use their mobile because it is the easiest way to research/buy M-Commerce will continue to grow- 49% of non M-Commerce users say they will purchase in the future 35% can’t on their current handset Smartphone users are 63% more likely to engage in M-Commerce only 9% mention security issues Source: IAB Consumer M-Commerce Study October 2010
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49. When consumers are opted in, they are over 200% more likely to agree that messaging is the best medium to grab attention and receive information
51. Almost 100%of the M&S base remembered the SMS & MMS, the MMS in particular cuts through
52. 74% of non opted-in consumers would do so given the right incentive
53. Brands must overcome 5 key barriers awareness, perceived cost, relevance, control and privacy
54. When brands are communicating via messaging, be relevant with valuable content, a relevant time of day and fair level of frequency Source: IAB / DMA Messaging study September 2010
77. Contents Background and methodology What we measured – Brands and their activity Results – Web site visitors and behaviour Results – Affect on online activity Results – Latency of display advertising Summary
79. Background The IAB wanted to investigate The role all forms of online media play in the customer conversion journey How online media work most efficiently when integrated The non-linear nature of the customer journey and the way that different formats interact with each other on the journey in the build up to conversion The real impact of display advertising on site visits and user behaviour
80. Methodology Nielsen NetView panel monitors activity of 40,000 representative UK internet users at home and work Software installed on panelists' PCs records their online activity – each URL visited and search made is recorded The online activity of three brands – BMI, British Airways, Virgin Atlantic and is tagged to allow identification of those that have been exposed to the activity – for example online display advertising The three brands are identified as Brands ‘A’, ‘B’ and ‘C’ in the research results – some details (e.g. sample size, visitor numbers) have been masked to preserve the anonymity of the brands The URLs within the sites of the three brands are categorised into one of three areas – ‘general visit’, ‘obtaining a quote’ or ‘making a purchase’ This enables us to answer two key questions Which users were exposed to which elements of the online campaigns? What activities users conducted during visits to the brands’ websites?
82. What we measured – time periods, activity and sample size Brand C Brand A Brand B Two months Period One month Two months Activity Display Sponsored Search Organic Search Referrals incl. Affiliates Email Display Sponsored Search Organic Search Referrals incl. Affiliates Email Display Sponsored Search Organic Search Referrals incl. Affiliates Sample Size 500 – 1,000 500 – 1,000 1,000+ Source: Nielsen NetView
83. What we measured – levels of activity online and offline Medium Medium Small Small Paid Search Click Thrus Display/ Email Offline Activity Large Large Medium Brand A Small Brand B Medium Brand C Source: Nielsen NetView & Nielsen NMR
85. An average of one in four visitors at least obtained a quote Brand A Brand B Visit - 72% Brand C Average of Brands A, B & C Quote - 25% Purchase - 3% Source: Nielsen NetView – Average of three brands
86. Purchasers are more likely to have been exposed to activity Brand A Brand B Brand C Total Site Visitors Total Site Visitors Total Site Visitors 86% 69% 69% Exposed to activity Exposed to activity Exposed to activity Quote/Purchase Pages Visitors Quote/Purchase Pages Visitors Quote/Purchase Pages Visitors 94% 75% 78% Exposed to activity Exposed to activity Exposed to activity Source: Nielsen NetView
87. Example user journey - one Quote Visit Purchase Brand related search x 2 SEARCH TERMS 1 15 43 16 3 DAY Direct Sponsored Click Display Display Display EXPOSURE Visit Visit Sponsored Click Quote Source: Nielsen NetView
88. Example user journey - two Quote Visit Purchase Destination related search Brand related search SEARCH TERMS 1 22 29 DAY Display Exp: x4 Sponsored Click Organic Click EXPOSURE Visit Visit Direct Purchase Source: Nielsen NetView
89. Display more likely to drive first steps Three Most Likely First Touch Points Three Most Likely Last Touch Points WWWWWWWWWW 1st 1st Organic Click Organic Click 2nd 2nd Sponsored Click Sponsored Click Brand A 3rd 3rd Display Referral Brand B Brand C Source: Nielsen NetView – Average of three brands, excluding direct visits without any prior exposure to activity
90. Average customer conversion journey across all three brands 3.1 0.2 0.7 1.0 Brand A, B and C average + + + = Organic Click Sponsored Click Display Emails Quote/Purchase (over 7.8 days) Brand A Brand B Brand C Source: Nielsen NetView, period from first event to first Quote / Purchase NB: excludes journey’s that began with an organic click through
93. Working together Users are more likely to make a purchase if they use Display AND Paid for Search
94. Purchasers use search in conjunction with display Purchasers Visitors 29% also used Sponsored Search 22% also used Sponsored Search Brand A Brand A + 7% Display Only Display Only 35% also used Sponsored Search 16% also used Sponsored Search Brand B Brand B + 19% Display Only Display Only 35% also used Sponsored Search 26% also used Sponsored Search Brand C Brand C + 9% Display Only Display Only Purchasers Visitors Source: Nielsen NetView
95. Relationship between display exposures and number of visits Site Visits per Exposed Person Brand A Brand B Brand C Number of Site Visits Number of Display Exposures Source: Nielsen NetView
97. Display advertising – how many people visit after exposure? Brand C Brand A Brand B 6.7% 6.6% 3.4% of those exposed to the display campaign went on to visit Brand A’s site post exposure of those exposed to the display campaign went on to visit Brand B’s site post exposure of those exposed to the display campaign went on to visit Brand C’s site post exposure Source: Nielsen NetView, Average Display CTR = 0.18%, Source AdTech 2009
98. Brand A 40% of the people who were exposed to the display campaign AND visited the site within a week of exposure did not see or do anything else online
99. Display advertising – how long does it take exposed people to visit? Brand A Have not been exposed/ to conducted any other activity 40% Brand C 46% Have not been exposed/ to conducted any other activity 5 Seconds Less than a week Same session Brand B 12% Have not been exposed/ to conducted any other activity 5 Seconds Less than a week Same session Source: Nielsen NetView
101. Summary £ Online activity is working - Individuals who make purchases on websites are more likely to have been exposed to online advertising The customer conversion journey is not a simple linear path– users come into contact with multiple campaign elements on multiple occasions – up to 6 display ads, 1 organic click thru, 2 sponsored click thrus and 1 email over a period of up to 13 days to make their 1st purchase Different online elements work together – they play different roles at different stages of the journey – it’s not only the last step or click in the journey that matters Source: Nielsen NetView
102. Summary Click thru metrics may not be an adequate way of assessing the impact of display advertising– up to 6.7% of users exposed to display advertising will visit the advertisers website within one or two months – approximately 40 times the average click thru rate of 0.18% Display advertising performs better than is widely perceived – display advertising has a positive latent effect – up to 46% of people that visit a web site a week after being exposed to a display advertisement have not been exposed to any other online elements www
Hinweis der Redaktion
28% growth in mobile internet users in 2008
107 minutes are spent online (UKOM Feb)32 minutes on mobile (Comscore MMM) (Understimate as doesnt include mobile wifi usage)139 minutes spent on the internet per day – 23% are spent on a mobile Yet mobile spend is only 1% of online
The three brands were measured over slightly different time periods and used slightly different combinations of online activity
The weight of each brand’s online activity also varied. The research did not take any offline activity into account, however we were able to benchmark the different levels of offline activity that the brands were engaged in during the fieldwork period at a top line level through Nielsen’s NMR product.
The percentage of visitors that went on to obtain a quote on the three sites varied from 19% to 30%, with an average figure of 25%. An average of 3% of those visiting the three brands’ sites made a purchase. It's worth noting that some visitors would have gone on to make a purchase and become customers after the fieldwork period
Those visitors making purchases or obtaining quotes were more likely to have been exposed to online activity than those users who just visited the sites. In one case 69% of visitors to the site had been exposed while 78% of those making a purchase of obtaining a quote were exposed. This clearly demonstrates that exposure to online activity makes users more likely to engage meaningfully with the brand's website
The example user journeys illustrate the many different factors that influence a user's journey, search terms are masked to preserve anonymity of brands, search terms in bold are click thrus from sponsored searches, those in italics are from natural searches
This shows the top three most likely first and last steps on the customer conversion journey, display advertising is more likely to be a driver at the start of the journey – driving initial brand awareness – than at the end of the journey, where customers are more likely to visit via search (sponsored and organic).
Average user journeys show the average length of time it took for a user to make a purchase or obtain a quote from their first exposure and the average number of exposures to each element within that period. The highest number of display exposures was 8.6, emails 2.0, organic search click thrus 2.7 and sponsored searches 2.4. Journey times varied from 1.3 days to 2.4 days.
This shows the percentage of visitors to each brand’s site that has been exposed to different campaign elements. Brand B’s audience were most likely to have been exposed to display advertising or made an organic click thru. Roughly one in four visitors to each brands’ website clicked thru from a referring site (including affiliates).
This chart plots the relationship between the number of display exposures and visits to the site over the fieldwork period. This can be useful for frequency capping. Brand A and Brand B's visits peak once the users have been exposed to 10 or more display ads, while brand C's visits peak when users are exposed to 4 or 5 display ads.
The percentage of visitors to each of the three sites that were exposed to the display campaigns varied from 3.4% to 6.7%. This means that up to 6.7% of those that saw the online display campaign visited the site at some stage during the fieldwork period. According to AdTech 2009 the average display click thru rate is 0.18% - this research suggests that numbers visiting due to display exposure may be higher than the traditional click thru metric suggests.
This shows the positive latent affect of online display advertising and the time lag between people being exposed to display advertising and visiting the sites of the three brands. Of those visitors to Brand A's site who were exposed to display advertising 2% visited within 5 seconds of seeing the display ad (we equate this to a click thru), 24% visited during the same session and 80% visited within the first week of seeing the display ad (the remaining 20% of people visiting who had seen online display advertising visited at some stage after one week). Of the 80% that visited within a week of exposure 40% had not been exposed any other online campaign element - this suggests that online display advertising is driving more visits than the traditional click thru rate metrics suggests. These 'solus display exposure’ visitors may have seen offline marketing, but that was beyond the scope of this project, but we can definitely say that they saw a display ad, had no other online interaction and then visited a week later.