Comparing User Engagement across Seven Interactive and Social-Media Ad Types.

Similar documents
PERFORMANCE DIGITAL PLATFORMS

"SEO vs. PPC The Final Round"

Training and Development (T & D): Introduction and Overview

Exploring the Impact of Type- ins on Brand and Message Recall

Beyond Clicks and Impressions: Examining the Relationship Between Online Advertising and Brand Building

Foodie Blogroll Media Kit 2013 Packages & Pricing Contact Us: (802) sales@foodieblogroll.com

A Study of Effective Web Advertising Design to Maximize Click-Through and Brand Awareness

Google Month - Tips for a Great Landing Page

HAS PROFOUNDLY CHANGED THE WAY AMERICANS SHOP...

Why marketing. 7 reasons why marketing will help your business grow

Social Media & Events Report 2011: How Is The Event Industry Using Social Networks?

Behavioral Data as a Complement to Mobile Survey Data in Measuring Effectiveness of Mobile Ad Campaign

How To Make The Most Of All Media In Multi Media Campaigns

How big is the mobile app market?

Online Media Kit 2014-FCC_OnlineMediaKit 12/4/2014 8:56 AM Page 1 nline Odvertising A

Online Marketing & Social Media for Best of British Parks

The 3 must-know online marketing trends for event promotion. Jenn Tapscott Online Strategy Consultant September 22, 2011

THE INFLUENCE OF AD PLACEMENT ON THE EFFECTIVENESS OF THE ONLINE CAMPAIGN

Advertising and Marketing Overview Part 1. Learning Objectives. Business has only two functions - marketing and innovation. Milan Kundera 2/20/15

7 KEY INFLUENCER MARKETING STRATEGIES FOR FOOD BRANDS. Share this ebook:

SOCIAL MEDIA & YOUR CUSTOMERS WHAT RESTAURANTS NEED TO KNOW BEFORE IT S TOO LATE!

How TV, Online and Magazines Contribute Throughout the Purchase Funnel

Does investing in social media create business value?

The Sales Lead System

BLOGGING AND NEW MEDIA DISCLOSURE INFORMATION

Internet Marketing Metrics. by Jennifer Dziura

Xplore.net Seminar Notes: Facebook

Benchmark Report. Customer Marketing: Sponsored By: 2014 Demand Metric Research Corporation. All Rights Reserved.

VROUW Always something new

Discover the most effctive version of your web site with

iprospect November 2010 Real Branding Implications of Digital Media an SEM, SEO, & Online Display Advertising Study

Winning Young Voters: New Media Tactics June 2008

Social Media & Your Business

Can you briefly describe, for those listening to the podcast, your role and your responsibilities at Facebook?

How to Dominate Your Local Market Online Now

MONETARY VALUE OF WORD-OF-MOUTH MARKETING IN ONLINE COMMUNITIES. Michael Trusov, Randolph E. Bucklin, Koen Pauwels * August 20, 2009

Automated Marketing Stream

Attract traffic to your website. Convert traffic into leads. Convert leads into customers

The Leading Interactive Online Video Advertising Platform

Building Customer Relationships

WHITE PAPER. Social media analytics in the insurance industry

SETTING UP THE NEW FACEBOOK BUSINESS PAGE DESIGN

How to Measure Social Media s ROI and Impact.

Bingo glossary marketing mix

What is online? Offline?

Syndacast. Company Introduction. Find out how we can guide your business to higher ROI

#TrendingNow: How to Bridge the Gap Between E-Commerce and Social Media

OVERVIEW OF INTERNET MARKETING

Best Practices for Marketing. Monday, March 8, 2010

HOW DOES GOOGLE ANALYTICS HELP ME?

PUTTING SCIENCE BEHIND THE STANDARDS. A scientific study of viewability and ad effectiveness

Applying Social Media Measurement to the Sales Funnel

2013 Interactive Marketing Strategy

What is Text Message Marketing?

Incorporating Social Media into a Technical Content Strategy White Paper

VROUW The facts. Platform. Redactionele pijlers

The Scenario. Copyright 2014 Pearson Education, Inc.

DELIVERING RELEVANCE How to Increase Engagement and Drive Results with Web Personalization

Social Media, How To Guide for American Express Merchants

The Display Advertiser s Guide To Social Media Marketing

Online Lead Generation For Law Firms

DIGITAL CAPABILITIES DAY PARTING TRENDS COUNTDOWNS USER-GENERATED CONTENT LIVE SCORES TRAFFIC WEATHER SOCIAL MEDIA

The Right Marketing Mix

Know Enough. to be Dangerous: Your Guide to Online Marketing in Houston

MARKETING GONE SOCIAL

THE IMPORTANCE OF BRAND AWARENESS IN CONSUMERS BUYING DECISION AND PERCEIVED RISK ASSESSMENT

Inbound Digital Marketing Proposal Webfactories

MARKETING GONE SOCIAL

VANCITY BUZZ? WHY ADVERTISE WITH

Effect size and eta squared James Dean Brown (University of Hawai i at Manoa)

GUIDE TO GOOGLE ADWORDS

Measuring Mobile Advertising. Joy Liuzzo Senior Director, Marketing & Mobile Research InsightExpress

Digital Marketing Workshop

Does Social Media Affect Consumer Decision- Making?

Social Media for Business and Professional Use. An Introduction to Queens Library s Presence on Today s Most Popular Online Communities

The Top 10 Optimization Best Practices for Financial Services

How to Measure the ROI of a Press Release

NORTHERN VIRGINIA COMMUNITY COLLEGE PSYCHOLOGY RESEARCH METHODOLOGY FOR THE BEHAVIORAL SCIENCES Dr. Rosalyn M.

UNITED STATES PROVISIONAL PATENT APPLICATION FOR ZORBA (MULTI LEVEL VIRAL MARKETING) INVENTOR: GIL DAVID ALLOUCHE

Grow Your Business wi w t i h a a Mobil i e l A p A p

Digital Marketing Training Institute

New! Internet Courses

Social Media Glossary of Terms For Small Business Owners

The Future of Display Advertising

SOCIAL LISTENING AND KPI MEASUREMENT Key Tips for Brands to Drive Their Social Media Performance

Driving Traffic Advertising 102

Social media metics How to monitor a Social Media campaign?

Client Questionairre. Website Design Checklist

95% 79% 72% 64% 46% Search for local businesses using their mobile phones. Make weekly purchases from their tablets

Create a personal account and a fan page for your business and you ll be on your way to building relationships with new and existing customers.

Organic Authority Advertising

Convention & Exhibition Attendance Marketing Best Practices Study SPECIAL REPORT DEVELOPED BY:

Key Performance Indicators (KPIs): Taking the Mystery Out of Marketing

FACEBOOK MARKETING Colleen Dalton C. Dalton Marketing & Board Member Truckee Chamber of Commerce

News and Information. Advertising and Marketing. Web. Design, Hosting, Promotion, Advertising, SEO

The Greatest Strategy. For Social Media Marketing

SERVICES & CAPABILITIES

Four Keys to Selling Event Sponsorship in a Digital World. and 12 new things you can sell now

Online Display Advertising: Its Quantified Effect on Organic Down-Funnel Activity. A CBS Interactive White Paper

How To Get A Better Car From A Car Dealer To A Car Buyer

Transcription:

Comparing User Engagement across Seven Interactive and Social-Media Ad Types. A Collaborative Study by ` Executive Summary. Increases in social networking and interactive advertising technology have led to a variety of new options for advertisers and publishers. With the expansion of this medium, choosing the right ad type for a campaign may not always be straightforward. The purpose of this study was to experimentally test user engagement across a variety of so-called widgets, defined to be interactive ad types that may prompt users to engage their peers in a social manner. Survey respondents were randomly assigned to view a narrated video of one of 7 ad types, and then report on their engagement, perceptions, and purchase intent. A summary of the findings are as follows: Sponsored Content ads, in which individuals viewed a holiday page that was brought to you by a leading brand, were the most engaging but produced the least purchase intent of the 7 ad types tested. Corporate Profiles on social-networking sites produced greater purchase intent and more recommendations when users could become a fan and add the logo to their own profiles than when they could not. Give and Get Widgets in which individuals could create and customize something (a car or a dinner menu) and then either send it to a friend ( give widget) or keep it for themselves ( get widget) were more engaging than traditional banner advertisements but no more likely to produce an intent to purchase. The above conclusions held across brands (a leading soup brand and a leading car brand) and publishers (on Allrecipes.com and on Facebook.com), but like traditional ads, widgets had increased success if the brand was relevant to the website (i.e. a soup brand on a cooking website). Attribution. David C. Evans, Ph.D. & Eden Epstein, Ph.D. Psychster Inc. 4500 9 th Ave NE Suite 300 Seattle, WA 98028 www.psychster.com All rights reserved. Psychster Inc. has made every reasonable effort to ensure that all information in this report is correct. Allrecipes.com assumes no responsibility for any errors. Psychster Inc. 2010. Psychology of social media. www.psychster.com p1/6

Background and Research Questions. Although banner advertising still dominates the web, advertisers and publishers now have a much wider array of choices due to advances in interactive web technology and the rapid rise of social networking. Beyond merely clicking, users may now read special holiday or sports-related content that is brought to you by advertisers. Or they may create digital products, like customized cars or weekly food menus, and then either save them for themselves or give them to friends. Companies now routinely create profiles on social networking websites and encourage users to become fans or even display corporate logos on their personal profiles. And of course, traditional banner ads or email-newsletters still exist and are widely used. Key Question: Are some ad types more effective than others? Secondary Questions: Do ad types work for all brands on all sites? Must the brand be relevant to the website for the ad to work? These ad types differ in the cognitive, social, and motivational foundations that make them a success, as well as the time and cost to bring them to market. As advertisers continue to transition marketing dollars to the web, and as publishers compete to offer effective inventory, empirical research is needed to make informed choices. This study tested the key questions at right. Whereas other research might focus on marketing spending or performance metrics, this study concentrated on website users attitudes toward different ad types and the brands they promoted. Methodology. To address the above questions, Allrecipes.com, the leading cooking/recipe website, commissioned Psychster Inc. to design a multivariate online experimental survey. Mockups were created of seven ad types (see descriptions below), appearing on one of two publisher websites (Allrecipes, or Facebook), and promoting one of two brands (a leading soup brand and a leading car brand), for a total of 28 combinations. To capture the interactive nature of the ads, a video was recorded showing the screen activity of someone interacting with the mockups, complete with a narration. For example, the narration for the sponsored content ad went, The scenario is: you re on [website]. You look at the current holiday page for St. Patrick s Day. You notice that this page is sponsored by [brand]. You decide to look at Irish cookie recipes. You look over the recipe and again notice that this page is sponsored by [brand]. These videos were imbedded in the survey, and respondents were randomly assigned to view only one. Afterward, they rated their attitudes on a variety of metrics. Designed as a multivariate experiment in this way, we were able to conclude that any difference in the metrics was in fact caused by the ad-type to which people were exposed. Psychster Inc. 2010. Psychology of social media. www.psychster.com p2/6

The seven different ad types were: 1. Banner This type consisted of a traditional ad on a website; the narrator clicked the ad to view the brand s website. 2. Newsletter This type consisted of an ad on a website; the narrator clicked an ad then signed up to receive the brand s newsletter. 3. Corporate Profiles with Fans and Logos This type consisted of a profile page, showing photos and notes left on a message board. The narrator further became a fan of the brand, and upon doing so, placed the corporate logo on his or her own profile. 4. Corporate Profiles without Fans and Logos This ad type was identical to the former, except that no mention of fans or logos is made. 5. Get Widget This ad type consisted of a widget application where the narrator created a digital product and saved it for him or herself. For the car brand, the digital product was a car with customized interior and exterior colors. For the soup brand, the digital product was a collection of recipes based on an ingredient search. 6. Give Widget This ad type was identical to the Get Widget, except that after creating the digital product, the narrator sent it via email to a friend. 7. Sponsored Content This ad type consisted of a special St. Patrick s Day page with a mix of editorial and usergenerated content. Twice during the video, the narrator pointed out that the page was sponsored by a company (either the leading soup brand or the leading car brand). Respondents. All surveys were fielded in May, 2009. The variations of the survey that depicted the ad types on Allrecipes were shown to 478 Allrecipes users who were recruited via a site-wide popover. The variations that depicted ad types on Facebook were shown to 681 Facebook users recruited via a panel company. Thus it is important to note that Allrecipes ads were only tested among Allrecipes users and Facebook ads were only tested among Facebook users. This decision was made to increase the ecological validity of the study by being more naturalistic, although it prevented us from testing the effect of the website independently of the website users. Metrics. After viewing the video, respondents answered a series of questions both about how they viewed the brand featured in the video, and how they viewed the activity shown in the video. Within each group, there was a high degree of correlation between all the metrics, so only the most informative are reported here (see below). Key Metrics (5-point agreement ratings) 1. I would personally click links and interact like shown in the video. 2. I would buy products from this brand. 3. I would recommend this brand to a friend. 4. I see the activity as an advertisement. Psychster Inc. 2010. Psychology of social media. www.psychster.com p3/6

Results. An analysis of variance (ANOVA) revealed significant differences across ad types; multivariate F(6,1065)=2.49, p <.001. 1. Sponsored Content produced the highest interaction ratings, but the lowest purchase intent and viral recommendations. The green squares in the figures above show that people reported being more likely to interact with sponsored content than with any other ad type (ps <.05). And they were least likely to see it as an ad. However, sponsored content was least likely to Psychster Inc. 2010. Psychology of social media. www.psychster.com p4/6

elicit purchase intent and a recommendation to friends. Thus, sponsored content was the most engaging of the ad types, but least likely to trigger consumer behavior or viral spread. 2. Corporate Profiles caused higher purchase intent when people could become a fan and put a logo on their own profile than when they could not. The blue circles in the figure above show that purchase intent was significantly higher when people could become a fan of a corporate profile than when this functionality was absent (p =.03). Similarly, people were significantly more willing to recommend profiles to friends when they could become a fan than when they could not (p =.03). If this were a field study, it would be unsurprising that customers who brand themselves with a company s logo are more likely to buy from that company and recommend it to others. But because this was an experimental study where naïve users were randomly assigned to view such profiles, it suggests that this allowing people to become a fan and add a logo to their own profiles causes an increase in purchase intent and recommendations. 3. Give and Get Widgets were more engaging than Banners and Newsletters, but not more likely to increase viral recommendations or purchase intent. Like Profiles with Fans, Give and Get Widgets were the best all-around ad types across all metrics. People were significantly more likely to want to interact with ads where they could create and customize something (a custom car or a dinner menu) compared to banners or newsletters (p <.05). However, they were not significantly more likely to recommend the brands to friends or show an intent to purchase. 4. The above conclusions held across websites and brands. The best and worst-performing ad types on the metrics as shown in the figures above were the same on both Allrecipes and Facebook, and for both the soup brand and the car brand. (The ANOVA produced no significant two-way interactions involving ad types.) Although future research should test additional brands and sites, there was no suggestion from this study that some ad types would only work for some brands in some contexts. 5. No ad type was so engaging that it overcame the advantage found by matching the brand to the website. It is widely believed that ads are at an advantage when the brand relates to the site on which it appears. Our findings replicated this effect, such that the soup brand performed better on Allrecipes than it did on Facebook. Despite the variability across ad types described above, no ad type was so engaging that it overcame this advantage. (The ANOVA produced no significant three-way interaction between brand, website, and ad type.) Conclusions. In the research presented here, we tested reactions to seven types of interactive and social ad types, shown on two different websites, promoting two brands. Not surprisingly, the success of an ad was increased by matching the brand with the website. However, there was clear evidence that different ad types were more suitable to different marketing objectives. Sponsored-content ads produced the highest interaction ratings but the lowest purchase intent of the 7 ad types studied. This suggests that this type of ad may be a good marketing strategy for raising brand awareness, and for generating positive associations and engagement with the brand. But it would appear to be a less favorable choice where sales is the main objective. Psychster Inc. 2010. Psychology of social media. www.psychster.com p5/6

Corporate profiles were among the most likely ads to trigger purchase intent - but only if people can become a fan and place a logo on their own profile. On social networking sites and sites devoted to user-generated content, this type of ad can be quite inexpensive. Although its engagement value has often been touted, this study indicates that it also has a strong commercial impact. Give and Get Widgets were more engaging than Banner or Newsletter ads, which helps to justify their increased costs to produce. Overall, widgets are good all-around strategies for increasing viral spread, purchase intent, and positive brand attitudes. Interestingly, however, functionality allowing users to send the digital products to others did not increase the likelihood of recommending it to a friend. Thus, it may be wise to develop inexpensive means of sharing (links or tweets) rather than more expensive ones (e.g. custom messaging to other site users). If the goal is brand awareness and positive associations, Sponsored Content may be the best choice. If the goal is purchasing and loyalty, then Profiles that allow people to become Fans and add logos to their own profiles may be the best choice. If the goal is purchasing and the best ROI, Banners and Newsletters may still be the best choice. In general, all of the activities were indeed perceived to be advertisements. Although none of the ads fully disguised themselves, sponsored content scored lowest on this scale, but possibly at the expense of a strong call to action. Although Banners and Newsletters were most likely to be seen as ads, they were among the best at triggering purchase intent and viral recommendations. So again, traditional advertising may be the best choices depending on the goals of a campaign. Psychological Processes at Play. Why might becoming a fan and putting a logo on one s own profile cause an increase in purchase intent? The classic phenomena of cognitive dissonance (Festinger, 1957) is likely to be at play. For decades psychologists have observed that people strongly avoid the tension associated with discrepancies between their attitudes and their behavior. So not surprisingly, once people purchase products from a brand, they report liking the brand more. But the reverse is also true when people declare publicly that they like a brand (by putting a logo on their profile for all of their friends to see) they are more likely to buy from it. So while the absence of a clear call to action may be the reason that sponsored content did not produce strong purchase intent in this study, something more subtle and apparently more powerful may account for the commercial potential of encouraging visitors to become a fan of a corporate profile. Although further testing may be needed to confirm the reason for this finding, social and cognitive explanations may be as likely as motivational ones. To view the videos used in this survey, please contact the authors. Psychster Inc. 2010. Psychology of social media. www.psychster.com p6/6