July 2001   

 

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 N E W S  Y O U  C A N  U S E

CPG Online Ads More Effective at Raising Purchase Intent

Dynamic Logic has found that consumer packaged goods (CPG) advertising campaigns are generally more effective than the non-CPG campaigns in raising Purchase Intent. The data also shows that while CPG campaigns are more effective at shifting Purchase Intent, they still require at least two exposures to significantly influence consumers (results from one exposure are not significant). After four or more exposures, the lift in Purchase Intent for CPGs is raised to 7% on average.

The data were gathered through Dynamic Logic's AdIndex system that measures the branding value of online advertising campaigns. The campaigns were divided into two groups - those advertising consumer packaged goods (including soft drinks, snack foods, hair products, feminine care, diapers and more) and those advertising goods and services that do NOT fall into the CPG category.

Purchase Intent has historically been shown to be difficult to move. Perhaps CPG advertisers are more effective at it due to their offline advertising experience.

* Sample for this report based on 90,125 interviews (32,964 for CPG campaigns, and 57,161 for non-CPG campaigns) . The Control and Exposed groups are recruited simultaneously to remove any potential impact of alternate channel marketing efforts. Exposure data were recorded when the creative appeared on the web sites used in the actual campaign. Lift is defined as the relative difference between the branding level of the Control and Exposed groups. All differences are statistically significant at 99%.

 M O L L Y  A N D  J E F F R E Y

Moving the Mind to Purchase

by Molly Hislop



Every day we are bombarded with thousands of marketing efforts. The goal of many, if not most, of the advertising campaigns that cross our paths is to convince us to buy the advertiser's product or service. This is not an easy feat to do successfully, for if it were, we would spend all of our time buying things.

Brand purchase intention is defined as the buyer's "self-instruction" to purchase the brand, or take purchase-related action 1. Persuading people to purchase a product is not a one-step process either. The initial steps in building a brand include creating awareness and establishing a favorable attitude in the minds of consumers. Convincing them that they should then consider purchasing it requires an emotional connection with the brand that must be developed through repeated advertising.

The packaged goods industry has been effectively persuading consumers to purchase their products through traditional media since the advent of advertising. It should come as little surprise that they would be more effective in the online space as well. They have perfected the science of persuasion over time and are now successfully applying that knowledge online.

1 Rossiter & Percy, Advertising Communications and Promotions Management, 1997: p. 126, Boston : McGrawHill, 1997.

molly@dynamiclogic.com


Waiting to See

by Jeffrey Graham




Many marketers of consumer packaged goods have taken a "wait and see" attitude towards substantial investment in online advertising.

What are they "waiting to see"? Simply, for proof that that online advertising is worth their investment. Because broadcast advertising built their brands, diverting more than a small percentage of that money to a new medium is perceived as a risky bet.

But what constitutes proof that online advertising works? It's certainly not the ability to drive Internet sales; few consumers want to buy products like toothpaste, or motor oil, online (yet). In any case, advertising is not supposed to induce immediate purchase.

Rather, the purpose of advertising is to change consumers' attitudes towards brands. Advertising "works" when it creates incremental shifts in awareness, message association, and above all, purchase intent. For these objectives, recent data show that online advertising is effective.

We have been told that this is the type of data that CPG marketers have been "waiting to see" for years. These findings represent an important first step in correlating online ad exposure to reported purchase intent and behavior.

jgraham@dynamiclogic.com




 A B O U T   A D I N D E X

Dynamic Logic's AdIndex® is a research tool used by online advertisers to measure the effectiveness of their campaign beyond click-through. By providing real-time metrics on brand awareness, purchase intent, message association, and creative evaluation; AdIndex empowers online marketers to optimize their campaigns and get a true measure of the campaign's impact.

AdIndex was developed by Dynamic Logic and has multiple patents pending.
www.adindex.com

 A B O U T  C R O S S M E D I A   R E S E A R C H

Dynamic Logic's CrossMedia Research™ measures the value of integrated media packages and quantifies the success of a cross-media campaign that combines online with print, television or radio. CrossMedia Research allows advertisers, agencies and publishers to understand cost effectiveness of different media in the mix.

 A B O U T   M A R K E T N O R M S

Dynamic Logic's MarketNorms® is a leading source of normative data for online marketing effectiveness, with a database of over 1,000,000 completed surveys and more than 10,000 tested creatives. MarketNorms is a powerful, analytical tool that allows advertisers, agencies and publishers to compare effectiveness by vertical (automotive, CPG, pharmaceutical), ad format type (rich media, interstitials, email) and audience (gender, B2B, consumer).
www.marketnorms.com

 C O N T A C T   U S

www.dynamiclogic.com

909 Third Avenue, 8th Floor
New York, NY 10022

+1-800-245-2455
+1-212-844-3700
marketing@dynamiclogic.com


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