EIAA Marketers Internet Ad Barometer UK and Pan-Euro

8/2/2019 EIAA Marketers Internet Ad Barometer UK and Pan-Euro

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EIAA Marketers Internet

Ad Barometer

September 2005


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Agenda

Background

The Research

What the Industry does well

Barriers to Advertising Online

Onlines Role within Marketing Strategy

Online Advertising Expenditure

Key Takeouts


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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 advertisingonline is a waste of money

1. Brand advertising doesnt work


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81% think that online advertising is avital component of their advertising

strategy

2. Online advertising is an add-on to

mainstream marketing strategy


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88% of those questioned agreed thatincreasing broadband penetration is

making the internet more attractive as a

branding medium

3. The internet only has a niche

audience


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Advertisers have similar broadmarketing objectives when using online

as with other media

4. Online advertising cant do both

branding and direct


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Strengths

Audience reach topped the list of

unprompted strengths mentioned with58% 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 ina large amount

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

Many advertisers struggle to link online advertising to key marketingand 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 internalbarriers

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


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69%

31%

100%

53%

47%

61%

39%

23%

78%

61%

39%


pan-European UK

FMCG Entertainment



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69%

31%

100%

53%

47%

61%

39%

23%

78%

61%

39%


pan-European UK

FMCG Entertainment Automotive



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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


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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 mediaAll TV Print DM

UKFMCG brand advertisers 57% 29% 14% - 14%

Entertainment brandadvertisers

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 biggestgrowth 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


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See you next at

For further information please contact Alison fennah

[email protected]

or visit

www.eiaa.net

EIAA Marketers Internet Ad Barometer UK and Pan-Euro

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