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June 2001 | |
| Editor's note: If you are receiving this for the first time, Beyond The Click® is a newsletter from Dynamic Logic that provides useful insights based on research findings. You are on our mailing list because we either have met you or worked with your company. Our goal is to send you brief and actionable "news you can use." We welcome your feedback and hope you pass it along. To unsubscribe see below. |
| N E W S Y O U C A N U S E |
5 Exposure Plateau for Building Message OnlineDynamic Logic's AdIndex research has found the branding value of online advertising plateaus after five exposures in the specific area of "message association." Message association is a traditional brand metric that helps advertisers determine the degree to which people associate a specific tagline or value-proposition (i.e., Just do it) with a specific brand (i.e., Nike). This finding, based on aggregate data from many campaigns tested, indicates that the incremental branding value of additional impressions beyond five exposures levels off and shows diminishing returns for the advertiser.
The 5 exposure plateau has a counterpart in traditional media. The traditional "rule of thumb" has been that three ad exposures is enough and additional exposures have less and less value. The fact that online advertising shows value beyond three exposures and up to five should be interesting to media planners who calculate how to spend their media dollars using traditional reach/frequency formulas. It has been common practice among online direct marketers to set frequency caps on ad impressions to maximize the click-through rate (CTR). While historical research has shown that the CTR declines with additional exposures, the new Dynamic Logic research adds to a body of evidence that the branding value increases with additional exposures. But like click-through, brand building and message association campaigns may hit a point where additional exposures to the same campaign just aren't worth it - and that point may be five exposures. Does that mean advertisers should not advertise to someone after 5 exposures have been delivered? Not necessarily, but perhaps the ad creative or the campaign approach should be significantly changed to invigorate the brand in the consumer's mind. Tips for Advertisers:
* This study was limited to traditional advertisers looking to enhance their brand equity through value proposition messaging. Dynamic Logic's AdIndex uses Message Association to measure how well consumers can match the messages in a campaign to the brand advertising. For the purposes of this study, Dynamic Logic's findings have excluded campaigns that contain streaming media or interstitials. Sample for this report based on 66,907 interviews. The Control and Exposed groups are recruited simultaneously to remove any potential impact of alternate channel marketing efforts. Exposure data was recorded when the banners appeared on the web sites used in the actual campaign. Types of campaigns tested included travel services, financial services, packaged goods, food and beverage, pharmaceuticals, appliances and retail. Lift is defined as the relative difference between the branding level of the Control and Exposed groups. All differences are statistically significant at 99%. |
