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In search of digital ROI: Best practices for including digital data in marketing mix modeling
Eric Schmidt, ARF Key Issue Forum, Re:Think conference, 2013
This paper examines the challenges of including digital data in marketing mix models and suggests some best practices for determining its sales impact and ROI.
This paper examines the challenges of including digital data in marketing mix models and suggests some best practices for determining its sales impact and ROI. To better understand how to make mix decisions, it considers the unique difficulties in measuring three digital media types - online display, search (paid), and social word-of-mouth (buzz). Once the metrics have been determined, they must be combined with other sales drivers in a sales response modeling framework. Results are developed in a consistent framework with 'traditional' media to allow resource allocation decisions across the entire mix.
How banner ads can be effective: investigating the influences of exposure duration and banner ad complexity
Kai-Yu Wang, Eric Shih and Laura A. Peracchio, International Journal of Advertising, Vol. 32, No. 1, 2013, pp. 121-141
This research examines the impacts of exposure duration and banner ad complexity on advertising persuasion in a web advertising environment.
This research examines the impacts of exposure duration and banner ad complexity on advertising persuasion in a web advertising environment. Processing fluency is used to explain the underlying process that occurs among consumers during exposure to advertisements, and refers to the ease of stimulus encoding and processing that is facilitated by prior exposure to a banner ad. Based on previous studies (e.g. Reber et al. 1998), this research used a priming phase and a testing phase, in which respondents viewed two banner ads for the same brand. A banner ad presented in the priming phase facilitates viewer processing of a target banner ad in the testing phase due to processing fluency. The findings show that, when a banner ad is difficult to process in the priming phase, increasing the duration of exposure to the ad in the priming phase causes a linear increase in respondent attitudes towards the target ad and brand in the testing phase. When the priming banner ad is moderately difficult to process, increasing the exposure duration in the priming phase first increases, and then decreases, respondent attitudes towards the target ad and brand (an inverted-U pattern) in the testing phase. When the priming banner ad is easy to process, increasing the exposure duration in the priming phase first decreases, and then increases, respondent attitudes towards the target ad and brand (a U pattern) in the testing phase.
The Role of Visual Attention in Internet Advertising: Eleven Questions and a Score of Answers
Adam S. Greenberg, Journal of Advertising Research, Vol. 52, No. 4, 2012, pp. 400-404
In this article, the cognitive neuroscientist, Adam Greenberg, provides answers to a series of questions on consumers' attention to digital marketing, based on his analysis of a large dataset provided to him by the Advertising Research Foundation.
In this article, the cognitive neuroscientist, Adam Greenberg, provides answers to a series of questions on consumers' attention to digital marketing, based on his analysis of a large dataset provided to him by the Advertising Research Foundation. Greenberg had no experience of advertising research prior to the exercise, but was selected to provide a fresh perspective given his extensive work in the general field of human attention and cognition (and particularly about how humans control their behavior in response to a visual stimulus and the brain mechanisms this involves). Some of the 11 issues discussed include: How does design affect consumers' engagement with an advertisement? Is clutter a distraction? What is the impact of page placement on attention? Are clicks a good measure of attention? What are the best practices for display advertising?
Is a website known by the banner ads it hosts? Assessing forward and reciprocal spillover effects of banner ads and host websites
Sweta Chaturvedi Thota, Ji Hee Song and Abhijit Biswas, International Journal of Advertising, Vol. 31, No. 4, 2012, pp. 877-905
While marketers often rely upon banner ads to generate revenues, it is unclear as to how these ads might influence consumer perceptions of host websites.
While marketers often rely upon banner ads to generate revenues, it is unclear as to how these ads might influence consumer perceptions of host websites. In this paper, we conduct three studies to examine the effect of animation and brand advertised in a banner ad on consumers’ attitude towards a host website, as well as word-of-mouth behaviour. Results of the first study reveal that consumers are irritated with unfavourable banner brands and that irritation, in turn, negatively affects their attitude towards the host website. We demonstrate that banner brand and banner type serve as contextual cues that influence judgements of the host website due to a forward spillover effect. Findings of the second study demonstrate that a host website, corollarily, serves as a context to negatively influence evaluations of favourable brands mainly for animated banner ads – a reciprocal spillover effect. The third study validates and extends the findings of the first study by adopting methodological pluralism through a different approach to stimuli selection and experimental manipulation. Results indicate that, while presence of animation has a negative influence on the host site and WOM behaviour when the brand advertised is an unfavourable one, it neither benefits nor hurts a host website evaluation and WOM behaviour when a favourable brand is advertised. Managerial implications of our findings are also discussed.
Facebook: Not an ad platform but an ecosystem
Vincent Blaney, Millward Brown Points of View, August 2012
As a display channel, Facebook combines the potential for strong targeting with high traffic. However, this paper argues that, in assessing the value of Facebook to advertisers, it is not enough to focus narrowly on the impact of Facebook display.
As a display channel, Facebook combines the potential for strong targeting with high traffic. However, this paper argues that, in assessing the value of Facebook to advertisers, it is not enough to focus narrowly on the impact of Facebook display. It is as a social ecosystem that the best opportunities for consumer engagement are realised. The paper sees the fan page as the basis of direct communication with consumers but must engage in a two-way conversation with rich added content. Combining social media with TV and PR is worth focusing on, as demonstrated by P&G's corporate-level "Thank You, Mom" campaign and Andrex Washlets' "Clean Campaign". Research shows that in multimedia campaigns, Facebook serves to drive increased consideration and is especially strong in improving popularity, recommendations and playfulness, when compared to TV.
Managing metrics into the future
Chuck Kapelke, ANA Magazine, August 2012, pp. 20-21
This article outlines the "Making Measurement Make Sense" (3MS) initiative from the Association of National Advertisers (ANA) which aims to move the industry towards the adoption of standards which will ensure online ads can be credibly compared to other media.
This article outlines the "Making Measurement Make Sense" (3MS) initiative from the Association of National Advertisers (ANA) which aims to move the industry towards the adoption of standards which will ensure online ads can be credibly compared to other media. The article outlines the key changes of the 3MS initiative, including ensuring at least 50% of an ad is loaded onto a user's screen for at least one second before it counts as an impression. Equally, gross rating points, the default currency for online spending, should be replaced with variables such as age or gender.
Online advertising and congruency effects: it depends on how you look at it
Wim Janssens, Patrick De Pelsmacker and Maggie Geuens, International Journal of Advertising, Vol. 31, No. 3, 2012, pp. 579-604
Three studies investigate the moderating role of divided attention in the relationship between thematic (in)congruency between a web page and a web ad, and evaluations of and click intention towards the embedded web ad.
Three studies investigate the moderating role of divided attention in the relationship between thematic (in)congruency between a web page and a web ad, and evaluations of and click intention towards the embedded web ad. The first study establishes the traditional priming effect in sequential web page – web ad exposure. Study two manipulates viewers’ opportunity to divide their attention when simultaneously exposed to a web page and a web ad, and Study three measures divided attention by means of gaze jumps in a simultaneous exposure situation. In the case of simultaneous exposure to a web page and a web ad, a congruency effect occurs when there is little opportunity to divide the attention between the web page and the ad, and when there are few gaze jumps between the web page and the web ad. In these cases, web ads that are thematically congruent with the web page result in more positive responses. This effect reverses when there is more opportunity to divide the attention between the web page and the web ad, and when the number of gaze jumps is high: web ads incongruent with the web page lead to more positive responses. Undivided attention benefits web ads that are congruent with the web page in which they are embedded, but divided attention benefits those that are incongruent with the web page.
Lifting the lid on Singapore's online ad market: data from IAB
Low Lai Chow, Warc Exclusive, July 2012
According to IAB Singapore, online ad spend in Singapore totalled S$135.91m (US$107m) in 2011, breaking the S$100m mark for the first time.
According to IAB Singapore, online ad spend in Singapore totalled S$135.91m (US$107m) in 2011, breaking the S$100m mark for the first time. Singapore's digital advertising market has more than doubled since H1 2009 and accounts for 8% of the country's total ad expenditure. The financial services category is the leader in online adspend, followed by travel and leisure; technology, communications and business services; and property. Among ad formats, display dominates the market, taking around half of digital adspend. Search accounts for 35%, while Classified & Directories accounts for 15%.
Facebook focuses on ad platform development
Todd Steinman, Mindshare, June 2012
Since going public, Facebook has introduced many new products in an effort to develop its nascent advertising platform.
Since going public, Facebook has introduced many new products in an effort to develop its nascent advertising platform. These updates include: real-time bidding (Facebook Exchange); unbundling Facebook ad products – including an a la cart newsfeed offering; the ability to purchase Sponsored Stories in desktop and mobile Newsfeed, and tracking performance by channel; increased targeting options to fans and Friends of Fans (FOFs) and launching Self-Serve Premium ads. This short article looks at the details and implications of these new developments to its ad platform. The combination will enable brands with a better opportunity to interpret data from Facebook, compare it to the market place and make more-informed buying decisions for better overall ROI.
How Validation Can Trump Digital Waste and Generate Value across the Digital Advertising Ecosystem
Linda Boland Abraham, Anne Hunter and Andrea Vollman, Journal of Advertising Research, Vol. 52, No. 2, 2012, pp. 180-195
The research demonstrates the impact of measuring “validated” ad impressions as opposed to simply counting ads that are delivered to a computer as has historically been done in online advertising measurement.
The research demonstrates the impact of measuring “validated” ad impressions as opposed to simply counting ads that are delivered to a computer as has historically been done in online advertising measurement. “Validation” holistically measures the visibility of ads by consumers as well as the geographic accuracy, brand safety, and legitimacy of the ad delivery. Based on eighteen campaigns from twelve major brand advertisers, including Kellogg’s, General Mills, Ford, Sprint, and more, the study found that there is a significant difference between gross and validated delivery, representing a substantial optimization opportunity for both buyers and sellers of digital advertising.
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