Vizu teamed with Digiday to ask more than 450 top brands, agencies and media sellers about how they view brand advertising online, and what they’re doubling down on in the coming year. We’ll share top-line survey results, then dig deeper into what it all means with a top-tier panel of media buyers and sellers, led by Jeff Smith, CMO and SVP of Client Services at Vizu.
Digiday Agency LA: The 2012 Online Brand Advertising Outlook
1. The Online Advertising Outlook for 2012
Today’s Panelists
Moderator:
• Jeff Smith, CMO & SVP Client Services, Vizu
Panelists:
• Julie Berger, VP & Managing Director of Digital , Horizon Media
• Amy Clark, Senior Research Analyst, Specific Media
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2. Real-Time Brand Advertising Effectiveness
The Online Brand
Advertising Outlook for
2012
February 29th 2012
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3. The Online Advertising Outlook for 2012
Today’s Panelists
Moderator:
• Jeff Smith, CMO & SVP Client Services, Vizu
Panelists:
• Julie Berger, VP & Managing Director of Digital , Horizon Media
• Amy Clark, Senior Research Analyst, Specific Media
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4. The Online Advertising Outlook for 2012
The Brand’s Perspective
• Direct Response Advertising Growing:
– 56% of brands respondents said they will increase spending in 2012
– 15% said they will increase spending by more than 20%
• Brand Advertising Growing Even Faster:
– 64% of brand respondents said they will increase spending in 2012
– 22% said they will increase spending by more than 20%
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5. The Online Brand Advertising Outlook for 2012
Brand vs. Performance: Brands’ Perspective
Brands: In 2012, to what extent will you increase the % of your
online ad budget allocated to brand advertising?
Substantially increase 10%
Moderately increase 50%
Stay about the same 31%
Moderately decrease 7%
Substantially decrease 0%
We do not spend on online brand
2%
advertising
0% 10% 20% 30% 40% 50% 60%
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6. The Online Brand Advertising Outlook for 2012
Brand vs. Performance: Brands’ Perspective
Brands: What type of digital advertising do you plan to use in 2012?
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7. The Online Brand Advertising Outlook for 2012
Brand vs. Performance: Media Seller’s Perspective
Media Sellers: Where do you believe the majority of your ad sales
dollars will be generated in 2012?
33%
Direct Response
67%
Brand Advertising
Growth Predictions
• Direct Response Advertising Growing: 32% of media sellers responding said they
expected sales growth in 2012, 8% said they expected growth greater than 20%
• Brand Advertising Growing Faster: 51% of media sellers responding said they
expected sales growth in 2012, 18% said they expected growth greater than 20%
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8. The Online Brand Advertising Outlook for 2012
Brand Ad Focus: Brands’ Perspective
Brands: How will your spending in the following channels change
relative to 2011?
Mobile Advertising 69% 26%
Social Media Advertising 63% 34%
Video Advertising 57% 34% Increase
Stay about the same
Rich Media Advertising 29% 57% Decrease
Don't Use
Standard Display
20% 60%
Advertising
Connected TV/IPTV 17% 37%
0% 20% 40% 60% 80% 100%
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9. The Online Brand Advertising Outlook for 2012
TV Dollars: Brands’ Perspective
Brands: Which statement best describes your thinking around substituting online
video advertising for television advertising in the year ahead?
We will be shifting a material amount of
our advertising dollars from television to 11%
online video
We will be shifting some of our
advertising dollars from television to 46%
online video
We will be experimenting with online
31%
video advertising
We will not be using online video
11%
advertising
0% 10% 20% 30% 40% 50%
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10. The Online Brand Advertising Outlook for 2012
Question: What would make it even better?
Brands: Which of the following would lead you to increase
spending on online brand advertising?
Improved clarity around the actual return
68%
on your brand advertising investment
Cleaning up the
Ability to verify my brand advertising
created the desired result (e.g. increased 56%
“Metrics Morass”
awareness of my product) in the online
Ability to use the same metrics to evaluate
medium
brand advertising effectiveness online as 53%
are used offline
Purchasing efficiency (e.g. the ability to
reach audience at scale through fewer 50%
outlets)
Ability to verify my online brand advertising
was actually delivered to my target 38%
audience
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11. The Online Brand Advertising Outlook for 2012
Question: What would make it even better?
Commenting on the amount of data bandied around in
the online ecosystem, 34% of Media buyers stated:
“I’m drowning in data; I would prefer to focus on a
few meaningful metrics to evaluate the
performance of my campaign”
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12. The Online Brand Advertising Outlook for 2012
Question: What would make it even better?
Interviewees comments mirrored in IBM CMO Report
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13. The Online Brand Advertising Outlook for 2012
Question: What would make it even better?
Brands: Which of the following would lead you to increase
spending on online brand advertising?
Improved clarity around the actual return
68%
on your brand advertising investment
Cleaning up the
Ability to verify my brand advertising
created the desired result (e.g. increased 56%
“Metrics Morass”
awareness of my product) in the online
Ability to use the same metrics to evaluate
medium
brand advertising effectiveness online as 53%
are used offline
Purchasing efficiency (e.g. the ability to
reach audience at scale through fewer 50%
outlets)
Ability to verify my online brand advertising
was actually delivered to my target 38%
audience
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14. The Online Brand Advertising Outlook for 2012
Question: What would make it even better?
Brands Answer: Cleaning up the metrics mess; What do they want to use?
Asked to what extent they would like to leverage Asked what they typically
offline metrics in the online medium, brands say: report, Media Sellers say:
The exact same metrics, and nothing else 6%
The exact same metrics, and a few
additional metrics specific to the online 55%
medium
Some of the metrics from the offline
medium, some metrics specific to the 24%
online medium
Just metrics specific to the online medium 15%
0% 10% 20% 30% 40% 50% 60%
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15. The Online Brand Advertising Outlook for 2012
What would make it even better?
Brands Answer: Cleaning up the metrics mess; What do they want to use?
Which metrics do you believe are most appropriate to use to determine the effectiveness of your online
brand advertising?
Brand Lift generated as a result of the
80%
advertising
Sales generated as a result of the
57%
advertising
Interaction rates with the advertising 31%
Clickthrough rates on the advertising 29%
Shares or re-posts of the advertising 29%
Time spent / Dwell time (e.g. on a micro-
20%
site)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
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16. The Online Brand Advertising Outlook for 2012
What would make it even better?
Brands Answer: Cleaning up the metrics mess; but unfortunately, the click-through
still clouds the picture
Which statement best describes your opinion of click-through rates as they relate to online brand advertising
campaigns?
Clickthrough rates have some relevance
71%
for online brand advertising
Clickthrough rates are irrelevant to
26%
online brand advertising
Clickthrough rates should be the primary
metrics used to assess the performance 3%
of online brand advertising campaigns
0% 10% 20% 30% 40% 50% 60% 70% 80%
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17. The Online Brand Advertising Outlook for 2012
What would make it even better?
Other key things brand advertisers are looking for:
• Focus: 97% want the primary marketing objective against which ROI will be
calculated, and the metric that will be used to measure performance against that
objective, clearly defined in advance of the campaign
• Proof:
• Only 6% of brands surveyed said they “Strongly Believed” media sellers claims
they can reach the custom / niche audiences the brands are looking for.
• And even if the target audience is reached, nearly all respondents want proof
consumer opinion was shifted
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18. The Online Brand Advertising Outlook for 2012
Conclusion
• In 2012, brand advertising may be set to finally surpass performance
based advertising in the online medium
• Both media buyers and sellers see significant growth in online brand
advertising in 2012; particular channels will grow faster than others
– Mobile,
– Social,
– Video
• That said, the outlook could be even better, if we work to clean up the
“metrics morass” in the online medium
• Brands have told us what they are looking for – its up to all of us to
provide it
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19. The Online Brand Advertising Outlook for 2012
Audience Q&A
Obtain copy of the full report
Email Darren Ellis at dellis@vizu.com
Benchmark Your Brand Advertising IQ based on this Survey
http://brandlift.vizu.com/knowledge-resources/brand-ad-iq/
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20. The Online Advertising Outlook for 2012
Today’s Panelists
Moderator:
• Jeff Smith, CMO & SVP Client Services, Vizu
Panelists:
• Julie Berger, VP & Managing Director of Digital , Horizon Media
• Amy Clark, Senior Research Analyst, Specific Media
www.brandlift.com COPYRIGHT 2010 VIZU CORPORATION | ALL RIGHTS RESERVED 20