Dynamic Logic Translates Purchase Intent into Estimated Sales with Conversion Index September 22, 2009
Posted by markblei in : Sales and Marketing , add a comment
We are pleased to announce the official launch of our ROI-driven solution — Conversion Index. Conversion Index allows our clients to further understand the branding impact of their campaigns by translating Purchase Intent into estimated sales.
In today’s economy, as the need for ROI grows, our clients often want a metric closer to actual sales. Through Conversion Index, an add-on to brand studies, clients can quantify impact of a digital advertising campaign by converting a Purchase Intent delta into an estimate of actual purchase or other KPI measures.
Conversion Index can be ideal for estimating sales impact of established or new products, line extensions, new formulations, etc. and can offer insight in these areas and more:
- How many people who say they are going to buy my product actually do?
- How many incremental purchasers were there? Incremental purchases?
- Where did I source my incremental purchases from? New customers? Existing customers?
- How can I convert a non-sales event, like intent to go see a doctor, into actual behavior?
To learn more about how Conversion Index can help you convert Purchase Intent into estimated sales, contact sales@dynamiclogic.com
Mention you saw it here firs,t and you wil win a prize ofl all the Chinese food menus that have been randomly stuck under our doors in the last seven years.
Research Operations Manager Scott Kresge talks about the unique aspects of operating on a global scale September 4, 2009
Posted by markblei in : Staff posts , add a commentWith a degree in computer science as well as cognitive psychology, I’ve always enjoyed pushing around large collections of data particularly when they involve human behavior and demographics.
When I go to the office I live the vicarious life of a virtual tourist. Rather than stepping off a plane or a ship and being immersed in a different culture, I am exposed to a cacophony of out-of-context snapshots of other cultures every work day.
One of my first eye opening experiences in managing Global Operations was a study being run in China. I was keeping an eye on the recruitment levels as it went infield just out of curiosity. The number of survey respondents exploded instantly and grew at speeds that we would never see in the U.S. My first thought was to shut the survey down. Surely we were breaking some agreement with the publishers by commandeering all the available advertising real estate and then inviting every single visitor to take a survey. I naively envisioned 1.3 billion Chinese poised over their keyboards happily waiting to pounce on the next available survey.
Mercifully, one of my counterparts in Beijing explained what I was seeing. It’s not uncommon in China for even some the largest of portal sites to “lease out” their entire site to a single entity or a small group. For all practical purposes, you own all branding rights and advertising real estate on the site. There’s a catch of course. You can only “own” it for a few days at most. Imagine owning all the advertising real estate and data collection rights on a site like Yahoo.com or AOL.com…even for just a few hours.
Here are a few examples of some of those out-of-context, cultural snapshots. I’ve identified them by language since country borders are becoming less and less meaningful in the brave new internet landscape.
Chinese – Seeing this survey throws me every time I see it. This survey involves one of the largest American entertainment icons and is instantly recognizable by probably 99+% of Americans and here it’s mixed with a language that I imagine less than 1% of Americans can decipher. I find it pleasantly disorienting.
Russian – I was born into an era when the Soviet Union was planting nuclear missiles on Cuba and Nikita Khrushchev was saying “We will bury you!” (apparently speaking figuratively to capitalism in general). Now I’m helping to execute a study to determine how well the marketing efforts of one the largest American chip manufacturers are going in Russia.
Arabic – Written Arabic is a visually beautiful language. Of course, I wouldn’t even recognize it as a language of any kind if someone didn’t tell me it was so. In addition to the translation issue, Arabic has the additional technical challenge of being written and read from right to left.
I’ve presented three glimpses of data collection across three very different regions and cultures. To paraphrase a saying; the more things change, the more they remain the same. I won’t bore you with numerical results but you can take comfort from the fact that out of this cultural chaos comes one global truth: If you expose people from any culture to enough advertising, it’s going to affect their attitudes and behaviors
I’ll leave it to the advertisers and the philosophers to decide if this is a good thing or a bad thing.
- Scott Kresge
Research Operations Manager – Global
If you’re interested in how Dynamic Logic can help your next campaign perform optimally for you. No matter if you’re in New York, London, Paris Munich or anywhere else . We invite you to learn more by calling us at 212-844-3700 or email us at answers (at) dynamic logic (dot) com. Tell them that you read about us here!
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Article by Dynamic Logic's Ken Mallon: To GRP or not to GRP? August 26, 2009
Posted by steng in : Ken Mallon , add a comment
To GRP or not to GRP? Is online branding broken? These are questions facing Geoff Ramsey of eMarketer and the industry as a whole. Geoff recently commented on The Great GRP Debate, in his July 13, 2009 article. Also, in July, eMarketer published Online Brand Measurement: Connecting the Dots, based on industry interviews.
The continually debated issue is around metrics, metrics, metrics. What are the correct metrics? Are some better than others? Some claim online measurement is a mess. Is it?
GRPs are important … with a caveat
Why are GRPs important? Well, two reasons. First, many large companies use GRPs as inputs to media allocation and other models. They depend on these models to understand the impact advertising in each media is having. Although there are other and, sometimes more cost-effective, methods for evaluating the independent and synergistic effects of advertising across different media, these GRP modeling approaches have been in place for many years and change is difficult.
Second, GRPs are constructed based on reach and frequency. Reach is important because it’s an input to another important formula: impacted reach = reach times ad effectiveness. More on impacted reach in a moment.
So, in the GRP debate, I’m on the GRP side with a caveat. I think reach is critical to determining overall impact or impacted reach, as I call it, of a campaign, but GRPs may over-simply the reach concept.
GRPs over-simplify the concept of reach, especially online.
If you have reach and frequency, you can calculate GRPs, but GRPs are an over-simplification. Here is why. In the online world, there is a big difference in impact between delivering 10 million impressions to 5 million people versus delivering 10 million impressions to 2 million people. They can both represent the same number of GRPs, but the impacted reach of the latter example is far less.
The table below steps through the math as to why this is so. This concept can be illustrated for any measure of perception or with sales data. In this example, I chose brand favorability as the perception metric and the data come from the Dynamic Logic MarketNorms database. I looked at three different exposure frequency groups: those that saw ads from a given campaign exactly once, those who saw 2-3 ads and those who saw 4 or more ads. The data are aggregated across 71 campaigns. Those who saw 2-3, had an average exposure of 2.3 and those who saw 4+, had an average exposure of 10.2.
From the above example, one can clearly see that the total effectiveness or impacted reach, in the three scenarios, is vastly different even though the number of impressions, which are the closest things we have to GRPs, are the same. I went into more detail on this in an i-Media connection article two years ago. Note how dramatically reach decreases at different frequency levels. The reach among the 4+ group is less than 1/10th of the reach in the single frequency group. The impact, on a percentage basis, is higher in the high exposure group (2.7% became favorable to the tested brand who otherwise would not have been, versus <2% in the <4 exposure groups) but the loss in reach cannot be made up and shows itself in the impacted reach calculation.
The problem of having similar GRPs associated with vastly different impact is less of a problem offline. In the offline world, once you choose, for example, a magazine, TV show or other offline channel, the range of possible frequencies is somewhat limited. Online, someone can see your ad dozens or even hundreds of times.
More on impacted reach and ad effectiveness
Impacted reach is the number of people impacted by a particular ad campaign. And, I believe that in 90% of cases, impact boils down to one of two things. For an ad campaign to be considered effective, in any media, it has to either change people’s perceptions about your brand or product or it has to drive incremental sales or both.
So, ad effectiveness = changes in perceptions + sales impact. Ad effectiveness is not about ad interaction, clicking, driving traffic, etc. These post-view behaviors can be very important diagnostically, but I don’t think they belong in the ad effectiveness equation. I’d put them in the category of very important diagnostic information. They’d be in the same category as finding out if someone read the newspaper circular or finding out if someone noticed an end-aisle display. They are important and can help you understand what went wrong when perceptions and/or sales are not impacted, but they aren’t endpoints in themselves. This is why Dynamic Logic launched AdIndex Connects with Compete so that we can now provide enhanced post-view behavioral data in addition to the attitudinal and sales impact metrics. It’s a very valuable layer of insights.
Is brand impact measurement broken?
Now to the issue of online brand impact measurement. Is it broken? In the eMarketer Brand Measurement article, there is a nice section citing Dynamic Logic MarketNorms data. It shows that, on average, online advertising lifts brand metrics. But, it also shows that there is great variability in results and that the bottom 20% of online ad campaigns actually have negative impact on perception.
Based on our further research, the biggest driver of success versus failure is the quality of the ads. So, we believe that in-market optimization of ads should not be based on click rates or interaction rates but, rather, on creative quality. Conducting a copy test before or early on in the campaign, can have a huge positive impact on results.
So, we do not believe online branding is broken and neither is measurement. Advertisers conduct thousands of research projects per year that include brand impact measurement as part of the accountability of the campaign. It is not too difficult to also compute impacted reach and ROI metrics such as impacted reach per dollar spent. Advertisers who focus on good creative tend to be more successful and we support folks like the Online Publishers Association who are pushing the envelope by launching new ad formats that more closely mirror magazine advertising.
Thanks, eMarketer for the continued great articles. Look forward to commenting more in the future.
Ken Mallon
SVP Custom Solutions
Dynamic Logic
New Research: Position and ad shape may have more impact in online advertising than size August 20, 2009
Posted by dynamiclogicbeaty in : Dynamic Logic Press Release, Ken Mallon , add a commentNew research released today by Dynamic Logic reveals that online ad effectiveness depends less on size than it does on shape and placement, based on MarketNorms data.
Is Bigger Better When it Comes to Online Ad Size? Jury Still Out, According to Dynamic Logic
Position and Shape May Play a More Important Role than Size 
New York, August 20, 2009 -Research released today by Dynamic Logic, the leaders in measuring digital advertising effectiveness, reveals ads that are integrated into the content of the page, such as half banners and rectangles, are the most effective in driving online ad awareness and purchase intent.
The research, based on 2,390 online display campaigns that took place over the past three years, is from Dynamic Logic’s MarketNorms database, the largest in the industry. It found that half banners (234 x 60) and rectangles (180 x 150) were more effective than ads that frame the page such as leadersboards and skyscrapers.
Media Coverage:
Top story in Ad Age today! View Ad Age article:
Why Large Online Ad Formats Aren’t Industry’s Silver Bullet
Bigger Isn’t Necessarily Better When It Comes To Online Ad Formats
Solutions Spotlight On Mobile AdIndex July 20, 2009
Posted by markblei in : Dynamic Logic Press Release , add a comment
New Free White Paper ! BRAND VALUE OF RICH MEDIA AND VIDEO ADS June 30, 2009
Posted by Mark Blei in : white paper , add a commentA new report, co-authored by DoubleClick and Dynamic Logic, is available free on our website at at:
http://www.dynamiclogic.com/na/research/whitepapers/docs/DL_DoubleClick_June09.pdf
For every online display campaign, advertisers must decide what ad formats to use for best results. To help, DoubleClick teamed up with Dynamic Logic to study the impact of ad format selection on branding goals. In the joint report titled “The Brand Value of Rich Media and Video Ads,” we compare the branding strengths of four common display advertising formats:
- Image – GIF or JPG ads
- Simple Flash – Ads with a short animation and single click-through link
- Rich Media with Video - Ads capable of responding to user interaction, such as mouseovers, keyboard inputs, or clicks without a click-through, that also contain video
- Rich Media without Video – Ads capable of responding to user interaction, such as mouseovers, keyboard inputs, or clicks without a click-through, that do not contain video
The report provides detailed information on how each of these formats impacts aided brand awareness, online ad awareness, message association, brand favorability and purchase intent. For example, study findings show that, on average:
- Rich Media formats are the most successful at driving purchase intent
- Rich Media without Video is unique among the formats in its ability to positively impact all five brand metrics
- Simple Flash is the least effective of the ad formats studied
- For brand favorability, aided brand awareness and purchase intent metrics, Rich Media with Video provides a statistically significant improvement over Simple Flash at a 90% confidence level
The report concludes with a cheat sheet to help guide your ad format decisions and suggests best practices for achieving branding goals. We hope you enjoy this and it helps you. Please feel free to contact us directly with any questions at 212-844-3700 and tell the person answering the phone that you read about it on our Blog!
Google and Dynamic Logic Co-Present Research on Rich Media Ad Effectiveness at ARF June 24, 2009
Posted by Mark Blei in : Uncategorized , add a commentAt the ARF’s Audience Measurement 4.0 yesterday, Amy Fayer from Dynamic Logic co-presented results with Google from a custom MarketNorms study measuring the effectiveness of different ad formats at achieving different branding goals. We have released this white paper for you to download (pdf),
There are already a few articles in which the research has been covered - Video In Rich Media Ads More Likely To Lead Customers To Purchase by MediaPost and WebProNews Google Analyzes Rich Media Ad Effectiveness .
If you have any questions related to this presentation or our capabilities please feel free to call us at 212-844-3728 and tell them you read about it in the Dynamic Logic Blog!
WE'RE ON THE MOVE! May 22, 2009
Posted by Mark Blei in : Uncategorized , add a comment
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Please update your contact information. We look forward to having you visit us in our new space.
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Dynamic Logic in iMedia April 21, 2009
Posted by Mark Blei in : Uncategorized , add a comment Filling in the mobile measurement gaps
By: Jennifer Okula
Click-through rates, SMS subscribers, widget/application interaction time, mobile video downloads, game plays — these are no doubt good metrics for determining the success of a mobile marketing campaign. However, advertisers could be in jeopardy of making some of the same mistakes that were made in the early days of online advertising, when click-through seemed like the fast answer to ROI. In the current economic environment, it is increasingly important to measure the value of every marketing dollar spent.
The mobile medium can and should be viewed as a brand-building platform, just as TV, print, and the internet have proven to be time and again. This is especially the case for mobile today, given that there is still little clutter and users are still curious and engaged. Newly released normative benchmarking data across 34 Dynamic Logic mobile ad effectiveness studies shows that WAP banner ads can increase traditional brand metrics such as brand awareness and purchase intent.
Full Article at http://www.imediaconnection.com
Does Internet Advertising Work? Yes, But December 12, 2008
Posted by Mark Blei in : Uncategorized , add a commentRecently, Morgan Stanley Dean Witter released a report entitled Correction: Does Internet Advertising Work? Yes, But Based on data provided by Dynamic Logic and others, MSDW eventually concluded, “Internet advertising banners are a cost-effective branding tool.”
he Internet performs well across branding measures, but we believe it is better for those who already have a brand than those who are trying to develop one.”"At today’s prices, we believe banners are cost-effective in generating brand recall and brand interest but they are only a moderately effective direct marketing tool.”"More attention on branding benefits will attract traditional advertisers”To draw these conclusions, MSDW relied heavily on normative branding data provided by Dynamic Logic.
Read The Rest—>Does Internet Advertising Work? Yes, But
