Branding and Cost Effectiveness of Rich Media in Online Advertising
Presented by:
Andrew Latzman, Dynamic LogicMarc Ryan, Nielsen//NetRatings
June 20th, 2003
2
AdRelevance Methodology:
• Quarterly survey of top publishers– Approximately 1000 publishers surveyed
• Rate card information collected– Un-Negotiated– Run of Site
• Rates collected for all standard IAB sizes and new rich media technologies– Banners, buttons, rectangles, squares, skyscrapers– Generic Flash, Forms, Eyeblaster, Shoshkeles, Unicast,
PointRoll, Eyewonder, Klip-Ad, Enliven, Bluestreak, Java
3
Dynamic Logic Ad Effectiveness
Group A*
Group B*
Did they see the advertisement?
Yes
No
Both groups
are surveyed
about their
attitudes
toward the
brand in the
ad at the
SAME time
Do the results
indicate a difference?
Yes or No?
Since the only statistical difference
between groups A and B is the
presence of the banner, we can attribute the lift
to the ad
Control / Exposed Methodology
4
Rich Media’s Share of Ad ImpressionsThe amount of rich media in the average advertiser’s campaign has increased dramatically over the course of the past year.
Source: Nielsen//NetRatings
7.8%
11.0%
13.1%
17.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Q1 2003 Q2 2003 Q3 2003 Q4 2003
Shar
e of
Mar
ket I
mpr
essi
ons
5
Rich Media’s Share of Ad Impressions
0
10,00020,000
30,000
40,00050,000
60,000
70,000
80,00090,000
100,000
Mil
lio
ns
Non-Rich Media
Rich Media
Source: Nielsen//NetRatings
6
Sites Hosting Rich Media
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
Portal
Sports & Recreation
General News
Travel
Games
Business & Finance
Movies & Television
Music & Streaming Media
Fashion, Romance & Celebrity
Kids & Family
Millions
Top 10 Site Categories Serving Rich Media Impressions
Source: Nielsen//NetRatings
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Cost vs. Effectiveness
• Considerable variety in the format of online ads available– Banners, Skyscrapers and Buttons present advertisers with
many different creative options
• Additionally, different rich media technologies available– The rich media options are typically more expensive
• QUESTION: Does a more expensive ad unit lead to more branding effectiveness?– To enable clean comparison, each format and technology is
analyzed using only ONE exposure
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Benchmark for Comparison
+ 5
+ 5
+ 2
+ 3
• Benchmark used is MarketNorms database– Over 800 campaigns with 880,000+ respondents– For analysis, only those with one exposure included
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Ad Format Examples
Skyscraper 120 x 600
Banner 468 x 60
Leaderboard 728 x 90
Large Rectangle 336 x 280
Button 120x60
Rectangle 180 x 150
10
Rich Media Examples
11
Effectiveness by Format: Awareness
Index of Performance vs. Benchmark
37%
56%
62%
93%
145%
113%
0% 50% 100% 150% 200%
Button
Banner
Rectangle
Skyscraper
Leaderboard
Large Rectangle
Source: MarketNorms 2003
Best at Increasing Awareness of Brands
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Effectiveness by Format: Association
Index of Performance vs. Benchmark
50%
52%
62%
81%
162%
125%
0% 50% 100% 150% 200%
Skyscraper
Button
Banner
Leaderboard
Large Rectangle
Rectangle
Source: MarketNorms 2003
Best at associating messages or sponsorships with brands
13
Effectiveness by Format: Persuasion
Index of Performance vs. Benchmark
0%
3%
131%
214%
84%
140%
0% 100% 200% 300% 400% 500%
Leaderboard
Banner
Button
Skyscraper
Large Rectangle
Rectangle
Source: MarketNorms 2003
Best at persuading favoring of brands and stimulating intent
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Effectiveness by Format: Composite
Index of Performance vs. Benchmark
51%
52%
73%
78%
135%
129%
0% 50% 100% 150% 200%
Button
Banner
Leaderboard
Skyscraper
Rectangle
Large Rectangle
Source: MarketNorms 2003
Best overall performance
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Effectiveness vs. Cost One Impression Only
Cost per Effectiveness Point
$0.88
$0.76
$0.62
$0.50
$0.31
$0.39
0% 50% 100% 150% 200%
Button
Banner
Skyscraper
Rectangle
Large Rectangle
Leaderboard
Source: MarketNorms 2003, Nielsen//NetRatings
Most Cost Effective
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Rich Media Effectiveness - Composite
Index of Performance vs. Benchmark
133%
135%
223%
88%
225%
0% 50% 100% 150% 200% 250% 300%
Non-RichMedia
Flash
Rich Media
Provider A
Provider B
Source: MarketNorms 2003
Top Rich Media Providers Most Effective
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Effectiveness vs. Cost
$0.63
$0.52
$0.48
$0.46
$0.34
$0.00 $0.50 $1.00
Flash
Rich Media
Provider B
Non-RichMedia
Provider A
Source: MarketNorms 2003, Nielsen//NetRatings
Top Providers are worth the cost, but Non-Rich Media Cost Effective too
Cost per Effectiveness Point
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• Creativity– Clever and original designs most effective often regardless of
format or technology employed
• Frequency of Exposure– Powerful variable in building awareness and persuading– Next step in analysis is to incorporate cost of multiple
exposures in building brands through marketing
Analysis does not control for two major variables
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• Bigger Still Better– Larger and newer formats effectively utilize more real estate to
communicate and persuade– Effectiveness is worth additional cost as seen in greater ROI
per branding point
• Rich Media Outperforms Static units– Top Providers developing ad units that beat benchmarks
considerably– Higher cost is justified by returns– Non-rich media, while less effective can still be very cost
effective
Conclusions