EIAA Marketers’ Internet Ad Barometer September 2005
Jan 25, 2016
EIAA Marketers’ InternetAd 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
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
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
Participating Advertisers
What the Industry does well
Shattering the myth….
89% DISAGREE that brand advertising online is a waste of money
1. Brand advertising doesn’t work
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
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
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
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
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
Barriers to advertising online
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
Online Planning
Insufficient standardisation of formats
Insufficient dedicated staff and resources internally
Labour intensive nature of campaigns
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”
Role within Marketing Strategy
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
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
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
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
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
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
Online Advertising Expenditure
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
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
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
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
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
Key Takeouts
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
See you next at …
For further information please contact Alison [email protected] visitwww.eiaa.net