Dynamic Logic: Beyond the Click

This issue of Beyond the Click shares findings from Dynamic Logic's AdReaction 5 Survey - a study that gauges consumers' opinions toward advertising. We have highlighted the key findings in a special three-part BTC series.

Less Intrusive and New Online Ad Formats Perceived Most
Positively by Consumers

Online advertising is generally still perceived by many as either "banners" or "pop-ups"; however, there are many different formats for Web advertising. Dynamic Logic research demonstrates that consumers understand that there are differences in the types of ad formats seen online and they react to them very differently.

In the AdReaction 5 survey, Dynamic Logic asked for consumers' reactions to the major types of online ad formats. Respondents were given a description of each format and were asked to rank each one using a five-point scale ranging from very negative to very positive. The top five most popular (or least unpopular) Web ad formats are:

Banners
Skyscrapers
Advergames*
"Ghost" ads*
Video ads & audio ads

Source: Dynamic Logic's AdReaction 5 Study, n=933 U.S. respondents

It is not surprising that consumers continue to prefer the less intrusive ad formats to more intrusive ones. This is consistent with what we have seen in previous AdReaction studies, conducted in 2003 and 2005, in which banners and skyscrapers were the most positively perceived online formats. As online advertising grows, the industry learns more about what is working and what is not from a branding perspective. Given this knowledge of efficiency and consumers' receptivity, digital ad formats continue to evolve, resulting in several new formats.

Interestingly, advergames and "ghost" ads — video overlays like the new YouTube ad formats where an ad will appear at the bottom of a video screen or player for a few seconds while the video is playing, then disappears — are both newer digital formats and are perceived positively. This may be in part because of the novelty effect, because people are interested and intrigued about the new formats the first time they are exposed to them. Both video and interstitial units experienced this "honeymoon" period where respondents were more receptive to these formats because they were new.

These insights may present an opportunity for marketers interested in advergames and newer video formats, as these are perceived positively now and are also working effectively in communicating brand messages for advertisers. Continuing to learn how these formats work best, including the optimal length, placement, and frequency, will be critical to maintaining positive perceptions and effectiveness of these formats.

Pop-unders, pop-ups and interstitials are at the bottom of the consumer preference list, suggesting that their interruptive quality and over-exposure to these formats continue to create negative perceptions. Frequency capping for the more intrusive formats, pre-testing the creative to ensure they are having the proper effect, and targeting could all help to improve the perception of these formats in time.

*Note: Advergames defined as simple online games that incorporate ads in or around the game play.
"Ghost" ads defined as ads that appear at the bottom of the player or video screen for a few seconds while watching content online, then disappear if you do not click on them.