Friday, January 18, 2008

Dynamic Logic: Online brand effectiveness online on the decline ...

So says Dynamic Logic in this article from Clickz -

According to the author, "the Unilevers and Fords of the world are struggling to get their messages across" due to an increase in larger brands utilising online as part of their marketing mix.

Note - this is comparing data compiled over the past 4 years, where online has gone from barely an after thought to an important part of a comms plan.

What has happened over this time

- more ads on each page
- more available executions
- more non traditional websites (ie social networks, blogs, twitter etc)
- more advertisers
- users facing more and more ad impacts everytime they venture online

It's important to view these in context ... Dynamic Logic (disclaimer: MindShare Interaction and Dynamic Logic are owned by the same parent company) measures numerous elements of an online campaign - favbourability, awareness, purchase intent, sponsorship association et al ... the only one to face a real drop is online ad awareness.

From the article ... "While all brand impact measures tracked by Dynamic Logic have declined over time, some have fared better than others. For instance, the boost in "purchase intent" provided by online campaigns has lost relatively little mojo, dropping from 1.6 percent in 2005 to 1.3 percent in 2007, according to MarketNorms. The average lift in "brand favorability" meanwhile actually rose for a year, from 1.8 percent in 2005 to 1.9 percent in 2006, before sliding to 1.4 percent last year. The award for the most drastically sagging lift goes to "online ad awareness," a metric that offered online marketers a 7.3 percent leg-up over a control group in 2005. In 2006 that metric fell over a full percentage point to 6.4 percent, before dropping again to a mere 4.8 percent lift last year. "

So what has caused the drop and what can be done? Most importantly, is Dynamic Logic effectively measuring non traditional (ie non straight display) campaigns.

One suggestion Clickz has (which I agree on) is pressuring publishers to lower the amount of ads per page - some local publishers have more than 15 advertising messages on one page ... it's excessive and unnecessary and ultimately self defeating ...

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