Analyst Speak: Reassuring brands online ads really do have an impact of consumers

26 February 2009

“Online FMCG campaigns increase purchase intent by 1.6 percentage points”

In these uncertain times, we should go back to basics and see if online advertising really can have an impact on branding, look for proof that it can work to positively shift attitudes, and learn how online advertising can work more efficiently. If corners are cut and all brands revert to direct response ads and focus only on short-term sales, then what will happen to the long-term impact on brand equity?

Here’s what we know. Based on 2,316 online campaigns measured globally over the past three years, people who are exposed to brand advertising online are more likely to recall the ads (5.1%), be aware of the brand (2.4%), be more favourable towards the brand (1.6%) and consider buying the advertised brand (1.2%) than people who saw none of the online ads.

Looking at automotive and FMCG specifically, we find that using online as a brand-building medium can have a positive impact and influence purchase decisions in both of these sectors. FMCG represents a wide variety of brands, many of which are lower-consideration inexpensive products. On average, online FMCG campaigns increase purchase intent by 1.6 percentage points — 16 in every 1,000 people are more likely to considering buying the brand after exposure to online advertising. Compared to automotive, which are high-consideration, high price-point items, purchase consideration increases by 0.6 percentage points on average, meaning six in every 1,000 people are more likely to consider buying the advertised brand as a result of exposure to online advertising.

According to the research, an automotive brand can effectively raise awareness across most types of websites. However, auto sites work best for shifting favourability (4.2%) and purchase intent (2.1%) since they’re reaching people who are potentially more receptive to the ad message. For auto brands, it’s critical to reach consumers when they’re in the market to buy a car in order to have the strongest impact; that may be less important for other brand verticals.

The impact that exposure to online advertising can have varies by ad format, level of exposure, website and brand vertical, but on average we know that online works for communicating branding messages, building over time and working with other media for brand reinforcement. Going back to branding basics allows us to assess what works and what doesn’t.