EIAA Marketers’ Internet Ad Barometer September 2005

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EIAA Marketers’ Internet Ad Barometer September 2005

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EIAA Marketers’ Internet Ad Barometer September 2005. Agenda. Background The Research What the Industry does well Barriers to Advertising Online Online’s Role within Marketing Strategy Online Advertising Expenditure Key Takeouts. European Online Advertising. - PowerPoint PPT Presentation

Transcript of EIAA Marketers’ Internet Ad Barometer September 2005

Page 1: EIAA Marketers’ Internet Ad Barometer   September 2005

EIAA Marketers’ InternetAd Barometer

September 2005

Page 2: EIAA Marketers’ Internet Ad Barometer   September 2005

Agenda

Background

The Research

What the Industry does well

Barriers to Advertising Online

Online’s Role within Marketing Strategy

Online Advertising Expenditure

Key Takeouts

Page 3: EIAA Marketers’ Internet Ad Barometer   September 2005

European Online Advertising

Jupiter predict that the European advertising market will be worth over €80bn by end 2005

Online adspend will be worth almost €3bn, almost 4% in share

The EIAA predict that online will account for 7% by 2008

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Objective

To understand the role online advertising plays and attitudes towards the internet amongst key advertisers across Europe

Methodology

Enders Analysis commissioned to run research Telephone interviews with over 50 leading brand advertisers Focus on FMCG, Entertainment, and Automotive sectors Companies selected according to level of offline ad spend with top 20

advertisers by spend in each sector targeted Mix of marketing decision-makers with national and European

responsibilities

The Research

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Participating Advertisers

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What the Industry does well

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Shattering the myth….

89% DISAGREE that brand advertising online is a waste of money

1. Brand advertising doesn’t work

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Shattering the myth….

81% think that online advertising is a vital component of their advertising

strategy

2. Online advertising is an add-on to mainstream marketing strategy

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Shattering the myth….

88% of those questioned agreed that increasing broadband penetration is

making the internet more attractive as a branding medium

3. The internet only has a niche audience

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Shattering the myth….

Advertisers have similar broad marketing objectives when using online

as with other media

4. Online advertising can’t do both branding and direct

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Strengths

Audience reach topped the list of unprompted strengths mentioned with 58% highlighting its benefit. Other unprompted strengths mentioned were accountability, the interactive nature of the medium and the ability to innovate

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Strengths by Market & Country

FMCG Reach/targeting perceived most important strength Followed by interactivity & ability to innovate

Entertainment Reach/targeting perceived biggest strength Accountability more of a strength for UK

Automotive Accountability biggest strength in UK Followed by ability to innovate and interactivity

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Barriers to advertising online

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Research & Measurement

Unsophisticated research tools mentioned in highest frequency

FMCG in UK also mentioned difficulty in comparing to other media in a large amount

Only 3 out of 16 advertisers include internet in brand or media influence studies

Many advertisers struggle to link online advertising to key marketing and business metrics

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Online Planning

Insufficient standardisation of formats

Insufficient dedicated staff and resources internally

Labour intensive nature of campaigns

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Support

Lack of enthusiasm from ad agencies cited as top barrier to using

online

Lack of internal senior management support one of top internal

barriers

Senior marketers interviewed keen to build relationships “at the right

level”

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Role within Marketing Strategy

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69%

31%

100%

53%47%

61%

39%

23%

78%

61%

39%

Branding DR Branding DR Branding DR

pan-European UK

Branding Vs Direct Response

FMCG

Page 19: EIAA Marketers’ Internet Ad Barometer   September 2005

69%

31%

100%

53%47%

61%

39%

23%

78%

61%

39%

Branding DR Branding DR Branding DR

pan-European UK

FMCG Entertainment

Branding Vs Direct Response

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69%

31%

100%

53%47%

61%

39%

23%

78%

61%

39%

Branding DR Branding DR Branding DR

pan-European UK

FMCG Entertainment Automotive

Branding Vs Direct Response

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European Marketing Objectives

FMCG Influencing purchase decisions the strongest objective Followed by changing brand perceptions

Entertainment Influencing purchase decisions and generating sales UK & Europe less focussed on delivering customer contacts UK less focussed on increasing brand awareness

Automotive UK – Increase brand awareness, change brand perceptions & generate

sales Europe – Influence purchase decisions & generate sales

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Purchase decisions, branding, sales are most common objectives

Yet brand awareness, purchase intent and sales are least used

measures

Click-through & registration measured across the board

Although branding related objectives more prominent, measurement

is still relates to DR

Measuring Objectives

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Many advertisers already spending a significant proportion on search

vs. display advertising

Pan Euro FMCG advertisers invest very little in search

UK advertisers intend to increase search spend

Search

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Online Advertising Expenditure

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1.5%

2.0%

2.8%

3.8%

1.7%

2.2%

2.9%

3.5%

2004 2005 2006 2007

pan-European UK

FMCG: Share of Adspend

Page 26: EIAA Marketers’ Internet Ad Barometer   September 2005

2.8%

3.8%

5.2%

6.5%

3.5%4.0%

4.6%

5.4%

2004 2005 2006 2007

pan-European UK

Entertainment: Share of Adspend

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4.2%4.8%

5.4%5.8%

2.7%

3.9%

7.5%

8.7%

2004 2005 2006 2007

pan-European UK

Automotive: Share of Adspend

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Share of increase from other media

All TV Print DM

UK FMCG brand advertisers 57% 29% 14% - 14%

Entertainment brand advertisers

33% 33% - - -

Automotive brand advertisers 81% - 41% 20% 20%

Pan-European FMCG brand advertisers 83% 33% - 33% -

Entertainment brand advertisers

50% - 25% 25% -

Automotive brand advertisers 50% - - 50% -

Reallocated media spend 2005

Majority of new spend coming out of traditional media budgets, particularly TV

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European Online Adspend

FMCG predicting smallest share of spend in 2007, Automotive largest

Pan European advertisers predicting biggest growth in share of budgets

Exception with automotive where UK advertisers predicting biggest growth in share

Advertisers predicting budget reallocated from TV and print to increase online share

UK also intending to reallocate some DM budgets to online

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Key Takeouts

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Summary

Positive growth in spend predicted on all sectors

Online already and integral part of the marketing mix with objectives following brand strategy and sales

Barriers derive from research/measurement, ease of use and enthusiasm

Page 32: EIAA Marketers’ Internet Ad Barometer   September 2005

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For further information please contact Alison [email protected] visitwww.eiaa.net