The author recently analyzed Nielsen//NetRatings reach, frequency and click-through data for several popular Internet domains. The purpose of the analysis was to determine how excessive frequency of exposure to banner ads impacts click-through response among popular, consumer targeted websites. This paper briefly outlines the impact that TV advertising and promotional clutter is having on the American television marketplace as a prelude to what might happen in the Internet arena. It then highlights banner wearout findings and provides strategic recommendations to help marketers improve both banner click-rates and the potential effectiveness of their online advertising campaigns.
Streaming Media is the generic name for software solutions that allow the delivery of audio and video content over the Web. An exciting new online advertising medium involves using Streaming Media to present videostyle advertisements to Internet users. Many reviews of online advertising effectiveness suggest it fails to build brands, yet few commentators offer substantive evidence to support this position. In March 1999, Millward Brown Interactive conducted the first Streaming Media test on behalf of RealNetworks and their client 800.com. The results showed a very strong, statistically significant increase in ad awareness and brand awareness. Further, endorsement of seven out of ten image attributes increased significantly. Since this first test, other Streaming Media ads have been tested with similar results. This paper reviews evidence from online survey research results demonstrating that Streaming Media ads can have a brand building effect. On average, Streaming Media appears to be five times more effective than the traditional Ad Banner, and qualitative comparisons suggest that it is at least as impactful as TV advertising.
Radio is constantly expanding. There are many new outlets for this expansion the commercialisation of radio, shifting from the old public service scenario; the growing trend of localisation and regionalism of radio. But also, differentiating it from other media seeking proximity to audiences; and radio streaming across the Internet with its consequent changes in listener behaviour and attentiveness.
The authors recently analyzed the local delivery of national television schedules in concert with proposed purchases of spot radio weight on a Designated Market Area basis. The purpose of the analysis was to determine the optimal combination of network TV and spot radio required to meet the local sales goals for selected marketers in given media planning situations. This macro approach to optimization provides a disciplined framework for focusing on both local market opportunity and optimal reach and frequency. The following paper briefly outlines the impact that advertising clutter and ad cost escalation are having on commercial effectiveness in the United States. It then outlines the sales allocation optimization findings and highlights how the combined radio-TV media mixes performed on a reach and efficiency basis relative to total schedule delivery in the United States.
The effect of radio spots/radio campaigns on advertising recall, brand awareness and inclination to buy has been adequately demonstrated in numerous studies based on the most diverse of research tools and analysis models. The toughest test of a radio campaigns success, however, is measuring the additional sales it generates for the advertised brand. It has been possible for some years now to study the sales impact of TV campaigns based on analyses of single source panels. The launch of AC Nielsen Single Source PLUS Radio in spring 2000 allows the efficacy of German radio campaigns to be evaluated. This analysis tool is capable of providing a detailed evaluation of the effectiveness of a radio campaign, based on the parameters of spot effectiveness, insertion effectiveness and campaign effectiveness. The results of analyses performed to date on radio campaigns indicate that the influence factors in radio campaigns are broadly comparable with those at work in TV campaigns. Findings from single-source research also confirm that insertion strategies based on recency planning are particularly effective.
This paper introduces several new methods aimed at improving ad testing. The power of interactive television and scientific statistical techniques are leveraged to create a unified methodology to test ads. The methodology makes three specific improvements, including the utilization of a random probability sample, the development of a system that allows for self-administered ad experiments given in a respondents own home, and the employment of a fully randomized, panel experimental research design. The paper draws on empirical evidence from the Yale Advertising Study, focusing on measuring the effect of political ads on voter attitudes and behavior. The study included 12,350 interviews.
The rapid increase in the number of people who can and do access the Internet, has resulted in similarly strong increases in the amount of money spent for online advertising. This increase in spending makes it more and more important that the effectiveness of these new forms of advertising is explored and that we understand how they work. The body of research that has explored if and how Internet advertising works is still comparatively small, but it is growing rapidly. We will review this research, including a number of unpublished studies, analyze conclusions, and suggest directions for future research. However, before we do that, it is appropriate to define what we consider Internet advertising.
When considering the long-term effects of advertising, Internet advertisements can only be seen as part of an integrated media mix, re-enforcing messages that have become ingrained in memory. But the Net is an immediate medium and short-term effects can be measured. Assessing the effectiveness of advertising on the Net, should be part of the measurement of the whole communication mix.
This paper examines two distinct but related hypotheses: advertising does have short term effects; and incremental exposures do have incremental effect. This paper aims at tracking the effects of TV and press on the purchase of brands by an upmarket audience. The objective would be to examine the effect of exposure of TV and press advertising on consumer purchase behaviour. In order to achieve this objective, a short term panel (fourteen weeks) was conducted among upmarket housewives, i.e. housewives from TV owning households with monthly income of Rs. 4000/- or more so that exposure and purchase could be tracked at the individual level. Weekly interviews were conducted to elicit titles exposed to and brands purchased (in some prespecified product categories) over the last seven days. Recall of TV advertisements over seven days was an unreasonable expectation, and therefore, respondents were visited thrice over a seven day period to elicit programmes watched over the last two or three days in each visit.
This paper analyzes of one aspect of the quality of the television environment - commercial clutter - and its effects on viewers. Despite an increasing preponderance of evidence that clutter has a negative effect on commercial effectiveness, commercial clutter continues to grow in the United States and other countries. The paper discusses studies that show why clutter is a problem for all of us and provides information on commercialization practices, regulations and effects around the world. Finally, the paper presents some solutions for dealing with the problem.