the halo effect: effects of the environment on digital brand advertising

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The Halo Effect Effect of the environment on digital brand advertising #FTHalo Simon McDonald

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Page 1: The Halo Effect: Effects of the environment on digital brand advertising

The Halo Effect

Effect of the environment on digital

brand advertising

#FTHalo

Simon McDonald

Page 2: The Halo Effect: Effects of the environment on digital brand advertising

Nigel Jacklin

WELCOMHalo Effect

#FTHaloE

Page 3: The Halo Effect: Effects of the environment on digital brand advertising

CONTEX

T

Page 4: The Halo Effect: Effects of the environment on digital brand advertising

tabloid newspaper

Vogue

$40

$250

VOGU

E

Page 5: The Halo Effect: Effects of the environment on digital brand advertising

BLACK BO

X

Page 6: The Halo Effect: Effects of the environment on digital brand advertising

CONTEXT IS

Q

U

E

E

N

Enders Analysis & Millward Brown

Page 7: The Halo Effect: Effects of the environment on digital brand advertising

CONTEX

T“Not everything that can be counted

counts, and not everything that counts

can be counted”

Albert Einstein

Page 8: The Halo Effect: Effects of the environment on digital brand advertising

HALO EFFEC

TSimon McDonald

InSites Consulting

Page 9: The Halo Effect: Effects of the environment on digital brand advertising

www.insites-consulting.com

Halo EffectEffect of the environment on digital brand advertising

Page 10: The Halo Effect: Effects of the environment on digital brand advertising

The Halo Effect

Effect of the environment on digital

brand advertising

#FTHalo

Simon McDonald

Page 11: The Halo Effect: Effects of the environment on digital brand advertising

BACKGROUND

Background

In digital advertising, it is easier than ever to target specific audiences with

little regard for the advertising environment it appears on

#FTHalo

Page 12: The Halo Effect: Effects of the environment on digital brand advertising

Environment has always carried huge weight in planning a campaign across established media…

the Halo Effect

Background

#FTHalo

Page 13: The Halo Effect: Effects of the environment on digital brand advertising

Observable Halo Effect of Quality Ad Placement on brand perceptions creating more…

Sources:

Previous FT Halo Study

BBC Advertising Dress Test

IAB VW campaign test

OPA emotional link test

Awareness

Expensive

Trust

High Quality

Higher advocacy and WOM

Purchase intent

Closing the sale

#FTHalo

Page 14: The Halo Effect: Effects of the environment on digital brand advertising

BACKGROUND

Background

Is this still the case for digital advertising?

#FTHalo

Page 15: The Halo Effect: Effects of the environment on digital brand advertising

BACKGROUND

Objective of study

We set out to prove that environment matters more than ever in digital

advertising

#FTHalo

Page 16: The Halo Effect: Effects of the environment on digital brand advertising

We set out to prove...

Not all content

providers are equal

Consumers have strong views on attributes associated with specific content providers

A ‘rub off’ effect

exists

Perception of the content provider will effect the consumer’s perception of the brand which is advertised

You can’t fit a

square peg in a

round hole

Consumers have opinions on where brands should appear

Right environment =

implicit added value

to a brand

Not just a natural association, but even the system 1 part of the brain reinforces this

#FTHalo

Page 17: The Halo Effect: Effects of the environment on digital brand advertising

So how did we do it?

Page 18: The Halo Effect: Effects of the environment on digital brand advertising

Test Questions

Quantitative online survey

Global independent sample (1,008)

(40% UK, 30% US, 20% Europe, 10% APAC)

High income, full time working

respondents

Respondents aware of at least 1 out of 10

selected content providers

Method

Content Provider Assessment

Product Attribute Evaluation

Brand Matching

Implicit Test

#FTHalo

Page 19: The Halo Effect: Effects of the environment on digital brand advertising

10 digital content providers, 6 brands

Media and brands

Established Content

ProvidersEmerging Content Providers

Brands

#FTHalo

Page 20: The Halo Effect: Effects of the environment on digital brand advertising
Page 21: The Halo Effect: Effects of the environment on digital brand advertising

Dimension 1: Media AttributesWhich media sites deliver on which attributes?

#FTHalo

Page 22: The Halo Effect: Effects of the environment on digital brand advertising

Attributes Associated with Different Media

Much higher and stronger perception of established content providers across key attributes versus emerging content providers

high quality

trustworthy

business advantage

prestigious

leader

essential reading

thought provoking

innovative

unique

boring

light-hearted

untrustworthy

0%

10%

20%

30%

40%

50% Established

Emerging

To follow are a number of attributes about the different websites. For each attribute, please tell me which website(s) you would associate with it.

Media Attributes#FTHalo

Page 23: The Halo Effect: Effects of the environment on digital brand advertising

Dimension 2: Product AttributesWhat is important when buying a new product or service?

#FTHalo

Page 24: The Halo Effect: Effects of the environment on digital brand advertising

Product Attributes

So, which is important when considering to purchase each of these products or services?

Which are the most important attributes?

Leader

ContemporarySuccessful

Innovative

Traditional

PrestigiousTrust

High quality

Contemporary

Prestigious

Innovative

Traditional

Leader

High quality Successful

Trust

Prestigious Traditional

Contemporary

Innovative

Leader

Successful

High quality

Trust

Traditional

Prestigious

Contemporary

Leader

Successful

Trust

Innovative High quality

Traditional

Leader

Contemporary

Prestigious

Successful

Innovative

Trust

High quality

PrestigiousTraditional

Contemporary Innovative

Leader Successful

High quality

Trust

Most important

Least important

WatchBanking Services

Flights/ Airline

Technology Services

Car B2B services

#FTHalo

Page 25: The Halo Effect: Effects of the environment on digital brand advertising

Product Attributes

So, which is important when considering to purchase each of these products or services?

High quality and trust are the most important attributes

Leader

ContemporarySuccessful

Innovative

Traditional

PrestigiousTrust

High quality

Contemporary

Prestigious

Innovative

Traditional

Leader

High quality Successful

Trust

Prestigious Traditional

Contemporary

Innovative

Leader

Successful

High quality

Trust

Traditional

Prestigious

Contemporary

Leader

Successful

Trust

Innovative High quality

Traditional

Leader

Contemporary

Prestigious

Successful

Innovative

Trust

High quality

PrestigiousTraditional

Contemporary Innovative

Leader Successful

High quality

Trust

Most important

Least important

WatchBanking Services

Flights/ Airline

Technology Services

Car B2B services

#FTHalo

Page 26: The Halo Effect: Effects of the environment on digital brand advertising

Dimension 3: Brand MatchWhich adverts would you place in which media site?

#FTHalo

Page 27: The Halo Effect: Effects of the environment on digital brand advertising

Six brands shown in rotation and respondents asked to match which

of the nine websites most suitable to advertise in

So, for the brand X, which website(s) do you think would be the most suitable for this brand? Based on respondents who are aware of websites

Brand Match#FTHalo

Page 28: The Halo Effect: Effects of the environment on digital brand advertising

Established57%

Established 59%

Established 47%

Established 54%

Established53%

Established 48%

Emerging27%

Emerging41%

Emerging29%

Emerging 41% Emerging

38%Emerging

34%

20%

40%

60%

Which site should advert appear in

Average of 51% more placements in established media compared with emerging

media

Brand Match

211 143 162 132 139 141

Index (Established compared to emerging media)

Please have a look at the brand below and select the websites which you think the brand should appear on.

#FTHalo

Page 29: The Halo Effect: Effects of the environment on digital brand advertising

Dimension 4: So What?What is the effect on perception of the brand when it appears in

different sites?

#FTHalo

Page 30: The Halo Effect: Effects of the environment on digital brand advertising

Implicit Test

Implicit Test:

What effect does the media brand have on perceptions of the advertiser?

InnovativeSuccessfulTrustworthyPrestigiousLeaderTraditionalContemporaryHigh quality

+ = (?)

#FTHalo

Page 31: The Halo Effect: Effects of the environment on digital brand advertising

Implicit testImplicit Test#FTHalo

Page 32: The Halo Effect: Effects of the environment on digital brand advertising

Implicit testImplicit Test#FTHalo

Page 33: The Halo Effect: Effects of the environment on digital brand advertising

ADDED VALUE OF

IMPLICIT MEASUREMENT

NICHE

POTENTIAL

Low agreement, but fast reaction time

Brands here have a small, loyal following

The best place to be

High agreement, quick reaction

time. These are natural and

spontaneous associations.

High agreement, but slow reaction time.

These are potential associationswhich can become natural if the given brand enhances the communication.

% of respondents

Re

ac

tio

n tim

e (fa

ste

r)

LIMITS

Low agreement, slow reaction time.

These items are not linked with brand.

Implicit testing to

highlight areas that

perform well in consumers

“system 1” thinking.

Fast, frequent, automatic

thinking

NATURAL

Page 34: The Halo Effect: Effects of the environment on digital brand advertising

Which of the following would you associate with “honest”

Three second test for each individual. Three seconds to hit the space bar

• David Cameron

• The Queen

• Ed Milliband

• Simon Cowell

• Ant and Dec

• David Attenborough

Implicit Test@MCDONALDSIMON

Page 35: The Halo Effect: Effects of the environment on digital brand advertising

Which of these people do think are “honest”Occurrence

76%

64%

59%

28%

25%

22%

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

David Attenborough

The Queen

Ant and Dec

Simon Cowell

David Cameron

Ed Milliband

All respondents

Which of these people do you think are honest? 3 seconds to hit the space bar for each

Implicit Test@MCDONALDSIMON

Page 36: The Halo Effect: Effects of the environment on digital brand advertising

David Attenborough

The Queen

Ant & Dec

David Cameron

Ed Milliband

Simon Cowell

900

950

1000

1050

1100

1150

1200

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

Implicit measurement

% of respondents

Reaction tim

e (faster)

Implicit Test

NICHE

LIMITS POTENTIAL

NATURAL

People associated with HONEST

Page 37: The Halo Effect: Effects of the environment on digital brand advertising

Trust

Successful

High quality

Leader

Traditional

Innovative

Prestigious

Contemporary

Trust

Successful

High quality

Leader

Traditional

Innovative

Prestigious

Contemporary

900

950

1000

1050

1100

1150

1200

30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%

Emerging

Established

Credit Suisse - Implicit

% of respondents

Reaction tim

e (faster)

Implicit Test

NICHE

LIMITS POTENTIAL

NATURAL

Size of circle equates to importance when purchasing financial services

Page 38: The Halo Effect: Effects of the environment on digital brand advertising

High quality

Trust

Innovative

High quality

Trust

Innovative

800

850

900

950

1000

1050

1100

30% 40% 50% 60% 70% 80% 90%

Emerging

Established

Lexus - Implicit

% of respondents

Reaction tim

e (faster)

Implicit Test

NICHE

LIMITS POTENTIAL

NATURAL

Size of circle equates to importance when purchasing a car

Page 39: The Halo Effect: Effects of the environment on digital brand advertising

Trust

High quality

Successful

TrustHigh quality

Successful

850

900

950

1000

1050

1100

1150

1200

45% 50% 55% 60% 65% 70% 75% 80%

Emerging

Established

British Airways - Implicit

% of respondents

Reaction tim

e (faster)

Implicit Test

NICHE

LIMITS POTENTIAL

NATURAL

Size of circle equates to importance when purchasing airline/flights

Page 40: The Halo Effect: Effects of the environment on digital brand advertising

High quality

Prestigious

Trust

High quality

PrestigiousTrust

850

900

950

1000

1050

1100

1150

30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%

Emerging

Established

TAG Heuer - Implicit

% of respondents

Reaction tim

e (faster)

Implicit Test

NICHE

LIMITS POTENTIAL

NATURAL

Size of circle equates to importance when purchasing a watch

Page 41: The Halo Effect: Effects of the environment on digital brand advertising

High quality

InnovativeTrust

High quality

Innovative

Trust

700

800

900

1000

1100

1200

35% 40% 45% 50% 55% 60% 65% 70% 75% 80%

Emerging

Established

IBM - Implicit

% of respondents

Reaction tim

e (faster)

Implicit Test

NICHE

LIMITS POTENTIAL

NATURAL

Size of circle equates to importance when purchasing tech services

Page 42: The Halo Effect: Effects of the environment on digital brand advertising

Trust

High quality

Successful

Trust

High quality

Successful

850

870

890

910

930

950

970

990

1010

1030

1050

30% 35% 40% 45% 50% 55% 60% 65% 70% 75%

Emerging

Established

KPMG - Implicit

% of respondents

Reaction tim

e (faster)

Implicit Test

NICHE

LIMITS POTENTIAL

NATURAL

Size of circle equates to importance when purchasing B2B services

Page 43: The Halo Effect: Effects of the environment on digital brand advertising

Trust

High quality

Successful

Trust

High quality

Successful

880

930

980

1030

1080

40% 45% 50% 55% 60% 65% 70% 75%

Emerging

Established

Summary / Average for all 6 brands

Implicit test

% of respondents

Reaction tim

e (faster)

NICHE

LIMITS POTENTIAL

NATURAL

Implicit Test

Size of circle equates to importance

Page 44: The Halo Effect: Effects of the environment on digital brand advertising

What to remember?5 tweetaways#FTHalo

Page 45: The Halo Effect: Effects of the environment on digital brand advertising

5 tweetaways

Trust and high quality top attributes when consumer looking to buy new products and services #fthalo

Page 46: The Halo Effect: Effects of the environment on digital brand advertising

5 tweetaways

Trust and high quality top attributes when consumer looking to buy new products and services #fthalo

Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo

Page 47: The Halo Effect: Effects of the environment on digital brand advertising

5 tweetaways

Trust and high quality top attributes when consumer looking to buy new products and services #fthalo

Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo

Consumer as media planner places 50% more ads in established websites v emerging #fthalo

Page 48: The Halo Effect: Effects of the environment on digital brand advertising

5 tweetaways

Trust and high quality top attributes when consumer looking to buy new products and services #fthalo

Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo

Consumer as media planner places 50% more ads in established websites v emerging #fthalo

Ad placement in established trusted media sites has positive implicit impact on consumer perception of brands advertised #fthalo

Page 49: The Halo Effect: Effects of the environment on digital brand advertising

5 tweetaways

Trust and high quality top attributes when consumer looking to buy new products and services #fthalo

Consumers 80% more likely to associate quality and trust with established online media brands compared with emerging media #fthalo

Consumer as media planner places 50% more ads in established websites v emerging #fthalo

Ad placement in established trusted media sites has positive implicit impact on consumer perception of brands advertised #fthalo

Ad environment, context and placement online is as important for brands as ever #fthalo

Page 50: The Halo Effect: Effects of the environment on digital brand advertising

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@mcdonaldsimon

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