1 Display versus The SEAT Ibiza ST campaign illustrating how to effectively allocate your online advertising budgets Munich, 2011 Authors: Volker Wiewer and Rolf Anweiler
2 Prologue: Background and Executive Summary Chapter 1: Overview of study data The synergy range between marketing and display composition of advertising Contact frequency Chapter 2: Study demographics Life stages Age groups Education Household net incomes Chapter 3: Effectiveness Effects of campaign on traffic to seat.de Effects of campaign on ad recall Effects of campaign on ad associations Effects of marketing on disposition to buy Acceptance of marketing Viral effects of marketing Glossary
3 Project partners Initiators and coordinators Brand: SEAT Product: Ibiza ST Research partners: Media planning and advertising design for the campaign
4 Composition of the study Main issues: What is the advertising effectiveness of marketing in comparison with display advertising? Particular investigative aspects of the advertising effectiveness study: How specific and effective does marketing approach users in comparison with display advertising? The following aspects were investigated in detail: Campaign delivery (net reach, reach build-up, contact frequency, user demographics) Brand impact (ad recall, buy intention, acceptance of marketing, viral effects, brand communication, recognition of the advertising message) Behavioural impact (increase reach among the target group, contact frequency) Methodology and design of the study: The study was conducted in parallel to the marketing and display campaigns for the new SEAT Ibiza ST A total of 1,050 registered members of the Nielsen Online Panel participated in the study. They were split into three different random samples: contact with the campaign, contact with the display campaign, contact with the and display campaigns The basis for the study are two forms of data collection - a technical evaluation using the Nielsen Netview tool, and a survey of the Nielsen Online Access Panel
5 Executive summary The 7 key findings Comparison of and display advertising - how to best spend an online budget? increases disposition to buy in 47% of cases and is therefore ideal for increasing conversions. 47% of questioned recipients said that newsletter advertising motivates them to buy. Advertising through achieved exceptionally good results in the high-income 31 and 50 age group. Spending power as a target group by using you can precisely reach your target group In its main target group the reach of the campaign was split between 51% for women and 49% for men. Nearly 60% of recipients are in the strong-income group between ages 30 and 49. recipients had a generally higher than average household income. allowed the required level of advertising to be reached three times more quickly than display advertising In the first wave of , nearly a third of the entire media volume was achieved within a week. The display campaign only achieved one tenth of its volume in the same amount of time. Therefore, achieving the required amount of advertising volume takes nearly three times as long using display media. advertising is welcomed and viral effects significantly improve the reach of campaigns 42% of recipients and 31% of users exposed to the display campaign think that newsletter advertising with tailored product recommendations and offers is very good to good. 45% of recipients forward good newsletter offers on to friends.
6 Executive summary The 7 key findings Comparison of and display advertising - how to spend an online budget 5 The combination of display and advertising improves advertising recall by 13% compared with just display advertising In a mix of 85.4% of display advertising to 14.6% of advertising, outscored display by 8% in terms of advertising recall The mix improves advertising recall by 13% compared with just display advertising. demonstrated especially strong advertising recall in younger age groups, with a 27% greater effect from a mix of both media in comparison with a plain advertising campaign. 6 Advertising/brand association is exceptionally strong within the younger target group Brand association is 41% among men and 40% among women - therefore up to 5% higher than a normal display campaign. Advertising association is particularly strong in the younger target groups (18-35 year olds). 7 The mix of and display campaigns boosted web traffic by a factor of 4 Contributing four times the web traffic, the mix of and display advertising is ideal for achieving a significant increase in traffic to websites and landing pages.
7 Ad Effectiveness Methodology Tag in online advertising Technical measures using Nielsen meters Online surveys of the access panel Evaluation of the study findings Ad effectiveness Ad effectiveness analysis Reach analysis
8 Ad effectiveness Data Reach analysis Technical measurement using NetView Ad effectiveness analysis Survey of Online Access Panel Datasheet: Datasheet: Methodology: CATI survey Methodology: CAWI Online Access Panel Target group: year olds Target group: year olds Groups: With ad contact Without ad contact Period: July to October 2010 Data basis: Population: 47,950,075 Figures over four months Random sample size: 350 Display Display & With ad contact Without ad contact Period: July to October 2010 Survey length: Panel size: 8-10 minutes Approx. 100,000 people** **With cookie identification
9 Overview of study data Active internet users: 47,950,075* Display Display & Media volume in % Net reach (unique users) 11,833,051 2,030,717 13,863,768 Active reach 24.68% 4.24% 28.91% Exposure (contacts) From 14.6% of the media volume, achieves 4.24% of the net reach of the campaign. The reach achieved within the campaign reflects the efficiency of this channel.
10 Prologue: Background and Executive Summary Chapter 1: Overview of study data Range synergies from & display composition of advertising Contact frequency Chapter 2: Study demographics Life stages Age groups Education Household net incomes Chapter 3: Effectiveness Effects of campaign on traffic to seat.de Effects of campaign on ad recall Effects of campaign on ad associations Effects of marketing on disposition to buy Acceptance of marketing Viral effects of marketing Glossary
11 Significant reach synergies make a clear case for a mix of and display advertising Reach comparison Display & Display 11,833,051 (85.4% of the media volume) 2,030,717 (14.6%) of the media volume) The overlap in unique users is minimal, with a share of 8%. The campaign reaches more than one million additional new users, in other words an additional net reach of 8.6%. The mix of display and channels is therefore a media combination that produces very good reach synergies.
12 is impressive in creating the required advertising pressure with speed and accuracy Net reach in 000s % increase in net reach within one week Display Net reach in 000s % increase in net reach within one week Time Time The 1st distribution wave reached almost 600,000 users after just one week i.e. almost one third of the total media volume. In the same week, the display campaign registered growth of 11%, or just more than one tenth of the total volume. Therefore, it takes display advertising almost three times longer than an campaign to generate the required level of advertising pressure.
13 reliably and precisely achieves the right exposure level for each recipient Contacts Analysis period: 1 week during the campaign Contacts Analysis period: 1 week during the campaign Time Time The exposure of display advertising rose during the campaign to an average of 6 contacts per unique user. The campaign returned an average exposure of 1 or 2 contacts per unique user. therefore generates a constant volume of advertising pressure and thus achieves significantly better ROI. The findings reconfirm the use of display advertising especially for campaigns with image and branding goals, but less so for conversion-oriented campaigns (e.g. sales or lead-generation campaigns).
14 Prologue: Background and Executive Summary Chapter 1: Overview of study data Range synergies from & display composition of advertising Contact frequency Chapter 2: Study demographics Life stages Age groups Education Household net incomes Chapter 3: Effectiveness Effects of campaign on traffic to seat.de Effects of campaign on ad recall Effects of campaign on ad associations Effects of marketing on disposition to buy Acceptance of marketing Viral effects of marketing Glossary
15 The campaign specifically reaches the customer group with the greatest purchasing power 47.1% couples 22.3% singles 30.6% families Youngsingles 2.65% Middle-aged singles 12.04% Pensioners living alone 7.64% Young couples with no children 1.06% Middle-aged couples 22.34% Couples without children at home 23.68% Young families with children 3.03% Older families with children 14.02% Established families with children 13.55% More than 47% of the users reached by the campaign are middle-aged couples with/without children living at home.
16 Demographics: Age groups for the campaign recipient age groups Age in years In the defined core target group, the campaign reached men (49%) and women (51%). Almost 60% of recipients fell in the high-income year old age bracket.
17 The majority of recipients have higher education qualifications Education of recipients 20% 1% 21% General education or lower Vocational school leaving qualification 1% University entrance exams 16% Further school education Vocational college / Polytechnical / University qualification 41% Doctorate/Professorship More than three quarters of the recipients in the SEAT campaign have completed at least a vocational school leaving certificate, university entrance exams or an undergraduate degree. marketing can be directed specifically towards the desired target group through strong profiling of addresses.
18 40% of recipients have an above-average level of household income Net household income of recipients 23.24% 20.45% 19.96% 14.01% 14.56% 5.03% Up To Income in euros Almost 40% of the surveyed recipients have a net household income of more than 25,000 per annum
19 Prologue: Background and Executive Summary Chapter 1: Overview of study data Range synergies from & display composition of advertising Contact frequency Chapter 2: Study demographics Life stages Age groups Education Household net incomes Chapter 3: Effectiveness Effects of campaign on traffic to seat.de Effects of campaign on ad recall Effects of campaign on ad associations Effects of marketing on disposition to buy Acceptance of marketing Viral effects of marketing Glossary
20 The campaign mix of and display advertising increased the number of visitors to by four times Visitors to Visitors in 000s Contact frequency leading to site visit Reach in % Pre-campaign* Post-campaign** Time Contacts In total, the campaign increased the visits to the SEAT website by four times. 65% of users arrived at the SEAT site after 1-3 contacts, only 34% of users required just 1 contact. Therefore the media mix of and display is an optimum combination for the purpose of generating web traffic. * All those on the Nielsen Panel who have visited the SEAT site but who have not had any contact with the advertising. * All those on the Nielsen Panel who have visited the SEAT site and who had already had contact with the advertising.
21 marketing stays in the mind better than display advertising Comparison of supported ad recall Data in % 40% 30% 26% 31% 20% 18% 10% 0% Display Display + At a media volume ration of 85.4% to 14.6% in favour of the display campaign, delivered impressive results in terms of supported ad recall, with 8 percentage points advantage. Therefore, a significantly greater number of people recalls the product advertising following contact with the campaign than following contact with the display campaign. is indispensable the media mix of the two channels increases ad recall by 13% compared with a purely display-based campaign. Base: n = 463 (with ad contact and filter on online ad recall) Question: For which of the following models of car have you seen online advertising within the last 30 days?
22 Supported online ad recall in the male target group doubles with advertising in comparison with a display campaign Supported ad recall by gender Gender Supported ad recall by age Age Data in % Question: For which of the following models of car have you seen online advertising within the last 30 days? In the male target group of respondents who had contact with the campaign, ad recall is twice as high than for the display campaign. Females are most convinced by the media mix of the two different channels. The effect of as an advertising channel (in terms of supported ad recall was particularly high in the younger age groups, achieving two thirds greater effect than the display campaign in the age group. Base: n = 463 (with ad contact and filter on online ad recall) Data in %
23 In terms of ad association for the SEAT brand - and the media mix of both channels both have strong results Ad association with the SEAT brand Data in % Question: Please think back to the advertising for the Ibiza ST that you have just seen, and indicate your level of agreement with the following statements. 40% of the surveyed recipients would recognise from the advertising that the product being advertised was the SEAT Ibiza ST car. This means that is also more effective than the display campaign in this respect. Base: n = 373 (with ad contact)
24 Ad association with the SEAT brand by gender and age Ad association with the SEAT brand by gender Gender Ad association with the SEAT brand by age Age Data in % Question: Please think back to the advertising for the Ibiza ST that you have just seen, and indicate your level of agreement with the following statements. Data in % Contact with the campaign is especially effective in terms of association with the SEAT Ibiza ST in the young target group of year olds. Among males the media mix is more successful, while among females the channel achieves the best results. Base: n = 373 (with ad contact)
25 motivates recipients to buy the channel increases propensity to buy significantly and is therefore the best driver of conversions Buy intention through Data in % Question: Has an ever motivated you to make a purchase in the past? advertising inspires purchase decisions: As demonstrated in the feedback from almost half of the surveyed recipients. therefore increases propensity to buy by up to 47%, and is thus an optimum conversion driver. Base: n = 1,067 (with ad contact and specific online ad recall)
26 primarily motivates the high-income target group between 31 and 60 to buy Increase in buy intention by gender Gender Increase in buy intention by age Age Data in % Data in % Question: Has an ever motivated you to make a purchase in the past? The campaign increased the propensity to buy slightly more among males than among females in the target group. Particularly good results were achieved by in terms of increasing the buy intention in the high-income age segments between years old. Base: n = 463 (with ad contact and filter on online ad recall)
27 advertising is convincing! Acceptance of advertising Data in % Question: advertising often contains exclusive offers and special promotions. Assuming you are generally interested in the topic being advertised: How do you feel when a company sends you information in a newsletter? 42% of recipients, 31% of users with contact from the display campaign, and 39% of users with contact from both media; view newsletter advertising with suitable product recommendations or offers as good or very good. Base: n = 948 (with ad contact)
28 Acceptance of advertising among web users Acceptance of advertising by gender Gender Acceptance of advertising by age Age 50% Data in % Question: advertising often contains exclusive offers and special promotions. Assuming you are generally interested in the topic being advertised: How do you feel when a company sends you information in a newsletter? Data in % Both in the male and female target groups, up to 44% of users view advertising with relevant offers as good to very good. Newsletter advertising is desirable in all age groups, however especially in the years old segment, advertising is particularly well received. Base: n = 948 (with ad contact)
29 Reach can be significantly increased by strong marketing content Propensity to forward newsletters Data in % 45% of recipients forward good newsletter offers to friends and acquaintances. In addition, 30% of users with contact from the display campaign and 36% of users with contact from both media are also prepared to do this. Therefore, following distribution to a specific group of recipients, reach can be increased many times. This is a convincing indicator of the viral nature of the advertising channel. Base: n = 1,067 (with ad contact) Question: Do you forward good offers/advertising to friends and acquaintances?
30 The viral effects of marketing make it a strong medium for men and women in all age groups Forward newsletters by gender Forward newsletters by age Gender Age 52% Data in % Question: Do you forward good offers/advertising to friends and acquaintances? Data in % In particular, female recipients and recipients in the young and medium age groups between years old forward the newsletters containing interesting products and offers to friends and acquaintances. Base: n = 1,067 (with ad contact)
31 Prologue: Background and Executive Summary Chapter 1: Overview of study data Range synergies from & display composition of advertising Contact frequency Chapter 2: Study demographics Life stages Age groups Education Household net incomes Chapter 3: Effectiveness Effects of campaign on traffic to seat.de Effects of campaign on ad recall Effects of campaign on ad associations Effects of marketing on disposition to buy Acceptance of marketing Viral effects of marketing Glossary
32 Glossary - terms used Net reach: The number of unique users who had contact with the campaign advertising during the campaign period. Active reach: Reached users as percentage of the total number of active users - net reach / active population (in %). Active internet users: Total number of users who actively used or visited the Internet during the campaign period. Exposed group: The number of users that had contact with the campaign during the given period. Control group: The number of users that had no contact with the campaign. Exposed with ad recall: The number users that had contact with the campaign during the given period and who indicated that they had seen the online advertising for the target brand. Online GRPs: Measure for evaluating online advertising - reach (%) * contact frequency
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