Business Editors/High-Tech Writers
SUNNYVALE, Calif.--(BUSINESS WIRE)--March 8, 2004
Dynamic Logic Research Demonstrates Online Advertising Provides a
24 Percent Lift in Message Association as Well as Significant
Increases to Other Brand Metrics
Ads on Yahoo! Outperform Internet Norms in Raising Brand Awareness
Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, and Dynamic Logic, a leading market research company, today released new research findings that further demonstrate that online advertising can provide significant branding benefits to advertisers across all key branding metrics. In addition, the research illustrates that advertising on Yahoo! performed better in general in raising awareness than online advertising.
The research analysis, using Dynamic Logic's MarketNorms(R) database of more than one million completed AdIndex(R) surveys, provides quantifiable evidence that online advertising positively affects brand awareness and can also influence consumer purchasing decisions. The MarketNorms database, which contains survey data about more than 10,000 online advertisements, provides tracking and trending data, comparing the brand perceptions of consumers who were exposed to online advertisements to those who were not. The database also provides a benchmark for measuring impact across five key metrics: brand awareness; ad awareness; message association; brand favorability; and purchase intent. Across these five metrics, online advertising improved brand strength by six to 42 percent, when compared to consumers surveyed who were not exposed to the online campaigns.
"Historically, the conventional wisdom in the industry is that the primary role of Internet advertising was to drive immediate action online by the consumer, whereas the branding benefits have not been as well recognized or understood as the direct marketing advantages," said Wenda Harris Millard, chief sales officer, Yahoo!. "This research shows that online advertising provides significant brand lift across all of the key metrics, further underscoring that online advertising should be an important component of every branding campaign and can be used stand-alone or as a complement to other forms of media."
Highlights
Marketers across different industries have already started to use this research to measure their own online campaigns. For example, Doritos' "Soundbites on Live@Launch" campaign generated increases in all awareness metrics, and exceeded overall Internet norms in brand awareness, online ad awareness, brand favorability, and purchase intent.
The U.S. Treasury worked with Yahoo! to measure the Bureau of Engraving and Printing's campaign to launch the new $20 bill, which created significant increases in awareness of the campaign and its messages and message association. The campaign helped to build rapid awareness and immediate acceptance of the new $20 bills in addition to building awareness for the three key security features that would serve in educating the public on how to authenticate their new $20 bills.
Importance of Publishing Environment
The research also found that while online campaigns in general significantly raised all five core brand metrics, impact on awareness metrics (brand awareness, ad awareness and message association) can vary depending on the publishing environment. More specifically, advertising on Yahoo! performed better in raising awareness than online advertising in general. Based on more than 80 campaigns, advertising on Yahoo! scored 30 - 37 percent better than campaigns across the Internet as a whole, according to MarketNorms Q3 2003 data.
"MarketNorms provides benchmarks for the industry to evaluate the effectiveness of their online ads, allowing them to be smarter marketers," said Margaret Hung, Dynamic Logic's director of research services. "We measure a large number of online campaigns, and find that media placement is a strong determinant of campaign success. This data shows that on average ads on Yahoo! outperform industry norms in raising brand awareness."
Typically, it is more difficult to move the needle on the two metrics measuring consumer persuasion (brand favorability and purchase intent). Even here, however, publishing environment can make a difference. The research showed, for example, that automotive ads on Yahoo! outperformed MarketNorms' benchmarks in both these metrics. Yahoo! Automotive campaigns for Q3 2003 (which included 10 ad campaigns) increased brand favorability by six percent (compared to three percent lift for online advertising overall) and raised purchase intent by five percent (compared to four percent lift for online advertising overall).
Note: Brand lift is the gain in brand-related metrics for an ad-exposed group, relative to a control group that was not exposed to the ad. It is calculated as: (exposed score-control score)/(control score).
About Yahoo!
Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 World properties and is available in 13 languages.
About Dynamic Logic
Dynamic Logic is a leading independent research company that analyzes marketing effectiveness. Dynamic Logic three main product areas are: AdIndex(R) for online advertising, CrossMedia Research(TM) for multi-vehicle campaigns and MarketNorms(R), a syndicated and searchable advertising effectiveness database. Founded in 1999, the company is headquartered in New York City with offices in Chicago, San Francisco, Los Angeles and London. www.dynamiclogic.com.
Yahoo! and the Yahoo! logo are trademarks and/or registered trademarks of Yahoo! Inc.
All other names are trademarks and/or registered trademarks of their respective owners.
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