Digiday Agency LA: The 2012 Online Brand Advertising Outlook

The Online Advertising Outlook for 2012
Today’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

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Real-Time Brand Advertising Effectiveness
The Online Brand
Advertising Outlook for
2012

February 29th 2012

Today’s Panelists

Moderator:

Panelists:


The 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%


The Online Brand Advertising Outlook for 2012
Brand vs. Performance: Brands’ Perspective
Brands: In 2012, to what extent will you increase the % of your
online ad budget allocated to brand advertising?

Substantially increase 10%

Moderately increase 50%

Stay about the same 31%

Moderately decrease 7%

Substantially decrease 0%

We do not spend on online brand
2%
advertising

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

Brand vs. Performance: Brands’ Perspective
Brands: What type of digital advertising do you plan to use in 2012?


Brand vs. Performance: Media Seller’s Perspective
Media Sellers: Where do you believe the majority of your ad sales
dollars will be generated in 2012?

33%
Direct Response
67%

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%

Brand Ad Focus: Brands’ Perspective
Brands: How will your spending in the following channels change
relative to 2011?

Mobile Advertising 69% 26%

Social Media Advertising 63% 34%

Video Advertising 57% 34% Increase
Stay about the same
Rich Media Advertising 29% 57% Decrease
Don't Use
Standard Display
20% 60%
Advertising

Connected TV/IPTV 17% 37%

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

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

We will be shifting a material amount of
our advertising dollars from television to 11%
online video
We will be shifting some of our
advertising dollars from television to 46%
online video

We will be experimenting with online
31%
video advertising

We will not be using online video
11%
advertising

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

Question: What would make it even better?
Brands: Which of the following would lead you to increase
spending on online brand advertising?

Improved clarity around the actual return
68%
on your brand advertising investment
Cleaning up the
Ability to verify my brand advertising
created the desired result (e.g. increased 56%
“Metrics Morass”
awareness of my product) in the online
Ability to use the same metrics to evaluate
medium
brand advertising effectiveness online as 53%
are used offline
Purchasing efficiency (e.g. the ability to
reach audience at scale through fewer 50%
outlets)
Ability to verify my online brand advertising
was actually delivered to my target 38%
audience



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?

Improved clarity around the actual return
68%
on your brand advertising investment
Cleaning up the
Ability to verify my brand advertising
created the desired result (e.g. increased 56%
“Metrics Morass”
awareness of my product) in the online
Ability to use the same metrics to evaluate
medium
brand advertising effectiveness online as 53%
are used offline
Purchasing efficiency (e.g. the ability to
reach audience at scale through fewer 50%
outlets)
Ability to verify my online brand advertising
was actually delivered to my target 38%
audience



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

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

The exact same metrics, and nothing else 6%

The exact same metrics, and a few
additional metrics specific to the online 55%
medium
Some of the metrics from the offline
medium, some metrics specific to the 24%
online medium

Just metrics specific to the online medium 15%

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


What 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?

Brand Lift generated as a result of the
80%
advertising

Sales generated as a result of the
57%
advertising

Interaction rates with the advertising 31%

Clickthrough rates on the advertising 29%

Shares or re-posts of the advertising 29%

Time spent / Dwell time (e.g. on a micro-
20%
site)

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


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

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

Clickthrough rates have some relevance
71%
for online brand advertising

Clickthrough rates are irrelevant to
26%
online brand advertising

Clickthrough rates should be the primary
metrics used to assess the performance 3%
of online brand advertising campaigns

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


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


Conclusion

• 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


Audience Q&A

Obtain copy of the full report
Email Darren Ellis at dellis@vizu.com

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


Today’s Panelists

Moderator:

Panelists:


Digiday Agency LA: The 2012 Online Brand Advertising Outlook

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