jump to navigation

AdReaction – Part 3 of 3 – Research Suggests Web Users Are Growing More Accepting of Over-Content Ads September 25, 2008

Posted by Mark Blei in : Uncategorized , add a comment
September 2008 – Part 3 of 3

N E W S Y O U C A N U S E
This issue of Beyond the Click highlights more findings from Dynamic Logic’s AdReaction 5 Survey, which gauges consumers’ opinions towards advertising.

Research Trends Suggest Web Users Are Growing
More Accepting of Over-Content Ads


As part of the AdReaction 5 Study on consumer perceptions of specific forms of advertising, Dynamic Logic research shows that consumers continue to feel that the “appropriate” number of ads that appear over the content of the Web pages they are browsing is two per hour. This number is consistent with the results for the same question asked in the previous AdReaction 3 & AdReaction 4 surveys, conducted in 2003 and 2005, respectively.

Certainly, there continue to be people who feel that over-content – or “intrusive” ads – are never appropriate, even to support free Web content, but this amounts to roughly one in four people (21%). The majority of U.S. respondents feel that some over-content ads are appropriate to support free content and that number centers around two over-content ads per hour (a calculation based on median number).

The most promising finding for advertisers and online publishers from this research is that the percentage of people who feel that no over-content ads are appropriate has dropped from 32% in 2003 to 21% in this latest study, suggesting that people may be more willing to accept some advertising in exchange for viewing free content.


Q. How many online ads that appear OVER Web content (such as pop-ups, out-of-frame ads, floating ads, etc.) PER HOUR, do you think are appropriate for a FREE Web site that you use?

Chart
Source: Dynamic Logic’s AdReaction Studies; AdReaction 5 (2007), n=933 respondents; AdReaction 4 (2005), n=2,988 respondents; AdReaction 3 (2003), n=425 respondents)

This AdReaction study also highlighted that two-thirds of respondents felt advertising on the Web sites they visit has increased over the past six months. Compared to the results of this question back in 2005, more people – 66% – say online advertising is increasing compared to 57% three years ago.

Based on prior research conducted around clutter, we believe that there are two main reasons why consumers perceive an increase in online advertising. Firstly, over the last few years Web surfers have begun to broaden the number and types of Web sites they visit. Someone who used to visit a major portal to check mail and news now may go to a variety of sites – their social networking site, a local newspaper site and various sites particular to their hobbies and interests. The so-called “long-tail of the Web” is getting fatter. Some of the less recognized sites attract less popular brands and have less strict ad policies. Thus, on these sites, you are more likely to see a greater percentage of intrusive ad formats and a larger number of ads in general. So, while the major portals and other large sites have likely maintained or even decreased their ad clutter (because they have greater access to ad effectiveness and user experience data), consumers’ usage of a wider var iety of sites may be resulting in their perception of increased overall clutter.

Secondly, as more and more big brands come online, people “see” more advertising than they used to. Online ads are more noticeable than before and this adds to the perception that clutter is increasing.

While it is safe to assume that consumers want less advertising rather than more, many consumers understand advertising’s role in supporting the content they like. Finding the right balance between the amount of advertising that produces positive impact for brands and what consumers feel is fair and appropriate in exchange for valuable content is important.

NOTE: A median was used as opposed to mean since the distribution curve is asymmetrical. Median is calculated by finding a number where 50% of the population is below that number and 50% is above. Field dates: Sept 2007, sample size: 933 U.S. respondents.

A B O U T A D R E A C T I O N
AdReaction is a recurring survey conducted by Dynamic Logic aimed to measure consumer opinions and perceptions of various types and formats of advertising. AdReaction 5 was fielded in September 2007 in the U.S. in addition to Canada, UK, France, Germany, Italy, Spain and the Netherlands. The sample was randomly selected from Lightspeed’s panel and reflects the national population.

A B O U T D Y N A M I C L O G I C
Dynamic Logic is a leading research company with expertise in measuring marketing effectiveness. Dynamic Logic’s research includes: AdIndex® to test and analyze advertising across digital platforms, CrossMedia Research™ to evaluate multimedia campaigns, MarketNorms®, a syndicated ad effectiveness planning and benchmarking database, and LinkSelect for Digital, an online copy-testing solution developed jointly with Millward Brown. Founded in 1999, the company is headquartered in New York City with offices in Chicago, San Francisco, Providence, London, Paris, Frankfurt and Hong Kong. Clients include leading marketers, advertising agencies and media companies. Dynamic Logic is a Millward Brown company, which is part of The Kantar Group, the information and consultancy arm of WPP. www.dynamiclogic.com

C O N T A C T U S
www.dynamiclogic.com

909 Third Avenue, 8th Floor
New York, NY 10022

+1-800-245-2455
+1-212-844-3700
marketing@dynamiclogic.com



Copyright © 1999-2008 Dyn
amic Logic Inc. – A Millward Brown Company. All Rights Reserved.
If you enjoy Beyond the Click, let us know. Please send feedback, comments and topics you’d like to see addressed to marketing@dynamiclogic.com. All letters become property of Dynamic Logic and may be edited for space and clarity. To subscribe to this email newsletter, please visit http://www.dynamiclogic.com/na/research and enter your email address in the newsletters box on the left.

FIRST LOOK AT MOBILE PERFORMANCE September 9, 2008

Posted by Mark Blei in : Uncategorized , add a comment



Early Research Shows Mobile Advertising Campaigns Increase Brand Metrics

According to eMarketer, this year’s mobile advertising spend is estimated to be nearly 5 billion globally, to triple by the year 2011. Yet, only 13% of all mobile advertising is intended for branding compared to 87% for direct response. Are marketers missing out? Firstly by not investing in mobile advertising at all, and secondly, by using it primarily as a DR vehicle?

Dynamic Logic has completed over 30 AdIndex® for Mobile research studies in the US and the UK to measure the branding effects of mobile advertising campaigns across a number of industry sectors, including alcohol, automotive, consumer electronics, CPG, entertainment, financial services, retail, telecomm, and travel. The campaigns include display ads on mobile WAP sites and downloadable mobile applications.

Comparing people exposed to the mobile campaigns to those not exposed, the initial performance averages from 21 studies suggest that mobile advertising can be an effective medium for raising brand metrics throughout the purchase funnel. An average increase of +23.9 percentage points in Mobile Ad Awareness shows that these campaigns generally cut through and grab users’ attention. Average increases in Brand Favorability and Purchase Intent of +5.4 and +4.7 percentage points, respectively, support the ability of mobile advertising to change consumers’ attitudes towards a brand and to drive intent to purchase.



Source: Dynamic Logic’s AdIndex for Mobile; Early Averages as of July 2008, N=21 campaigns, n=25,050 respondents
Delta (Δ) represents percent of people impacted by advert exposure; calculated Delta (Δ) = Exposed-Control
* Please note small sample size

Part of the reason for these positive increases may be a result of the newness of the medium. People may be intrigued and pay more attention to the advertising on their mobile phone since it is presented on a smaller screen and is located in a less cluttered environment compared to the Internet. More research and campaign analysis is needed to help marketers understand what will continue to work best on mobile devices.

Dynamic Logic’s latest AdReaction Study shows that only 26% of people in the U.S. have used their mobile phone or wireless device to connect to the Internet. While reach may still be small, this will most certainly grow as providers offer more competitive packages for consumers to use their mobile phone to access the Web. Certain brands may be able to reach a more targeted audience of consumers via mobile branding campaigns on WAP sites. Reaching a smaller, but more engaged and relevant audience may provide a worthwhile return on investment. Mobile advertising is not going away, and now may be the best time to test out the waters before consumers force brands to jump in head first.

While these mobile averages are only based on a small number of campaigns and should be used for directional purposes, it is important to begin comparing mobile campaigns’ effectiveness to an industry average. As we conduct more studies, we will continue to build these initial averages into a normative database that can be used for a more granular look into the mobile data in the same way our MarketNorms® database is used for online performance benchmarking and planning.

To learn more about AdIndex for Mobile, please contact mobile@dynamiclogic.com.

*Note: These findings are based on 21 mobile ad campaigns across a variety of industries. The averages could significantly change as the number of campaigns increases, so any comparison made to them is directional.

A B O U T D Y N A M I C L O G I C
Dynamic Logic is a leading research company with expertise in measuring marketing effectiveness. Dynamic Logic’s research includes: AdIndex® to test and analyze digital advertising campaigns including online, mobile, and gaming elements; CrossMedia Research™ to evaluate multimedia campaigns; MarketNorms®, a syndicated ad effectiveness planning and benchmarking database; and LinkSelect for Digital, an online copy-testing solution developed jointly with Millward Brown. Founded in 1999, the company is headquartered in New York City with offices in Chicago, San Francisco, Providence, London, Paris, Frankfurt and Hong Kong. Clients include leading marketers, advertising agencies and media companies. Dynamic Logic is a Millward Brown company, which is part of The Kantar Group, the information and consultancy arm of WPP. www.dynamiclogic.com

C O N T A C T U S
www.dynamiclogic.com

909 Third Avenue, 8th Floor
New York, NY 10022

+1-800-245-2455
+1-212-844-3700
marketing@dynamiclogic.com