Internet Advertising Is Most Effective For New Brands
New products and fledgling brands should consider using the internet as a launch medium when planning their first campaigns, as it can quickly raise awareness while proving cost effective, according to new research from Dynamic Logic.
The research revealed that, while online advertising is advantageous to both new and established brands, on average much higher levels of effectiveness are achieved by campaigns promoting new products.
Dynamic Logic measured the effectiveness of campaigns for both new and established brands and compared the average difference between consumers who were exposed to the ads and those who were not. The resulting figures demonstrated that advertisements for new brands or products resulted in a greater increase in brand awareness, message association, brand favourability and purchase intent compared with adverts for established products.
Commenting on the findings, Suzanne Moorey-Denham, managing director of Dynamic Logic Europe, said: “Newer products have lower baselines in awareness and persuasion metrics. It is easier to move the needle with lower baselines than higher ones. That said, existing products still show impact on average. Secondly, new product advertising may be brand and message focussed; after all, their goal is to introduce people to the brand/product/service.”
She added: “Existing products may assume their brand is well established and focus their advertising on lower-funnel persuasion metrics such as favourability and purchase intent. For these metrics, existing products perform similarly to new products.”
To maximise their impact, Dynamic Logic recommends several strategies for existing brands to adopt when using online advertising. These include exploiting online advertising’s ability to build association with the brand and a specific message. The research firm suggests using small, advertisements featuring a simple logo and tagline to achieve this, with the added benefit that this form of advertising is relatively cheap.
The company also suggests that, while higher exposure levels can have a strong impact on consumers, capping the frequency of advertisements can further stretch an advertiser’s budget, while retaining the campaign’s effectiveness.
Dynamic Logic’s findings follow reports last month from the Interactive Advertising Bureau that UK online advertising in 2003 beat all records as spending reached more than £350 million, pushing its market share of total advertising revenue to 2.5%. The IAB’s figures showed that, when compared with other media such as radio, online is rising fast (see UK Online Advertising Spend Beats All Records).
Dynamic Logic: 0207 152 4004 www.dynamiclogic.com
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