The EIAAThe EIAA

PresentsPresents

European Online European Online AdvertisingAdvertising

Effectiveness Study Effectiveness Study

October 2004October 2004

• 200 European online advertising campaigns consolidated into this study• Study finds that key branding metrics (awareness, message association,

favourability and purchase intent) were positively impacted by online ad campaigns

• Brand Awareness +5.4%• Ad Recall +45.3%• Message Association +21.6%• Brand Favourability +5.6%• Purchase Intent +5.0%

• European results mirror US results• Effectiveness continues to increase with exposure frequency (even at 10

exposures)• Insights by Sector

Autos:• Auto ads impact all branding metrics except purchase intent – most likely the result of long

purchase cycle and highly considered purchase FMCG

• FMCG ads impact all branding metrics• European FMCG effectiveness exceeds Europe online averages

Executive Summary

Objective and Methodology

• Objective Quantify the average impact that European online ad campaigns

have on traditional branding metrics Create ‘benchmarks’ for Autos (22 studies) and FMCG (33

studies) verticals

• Methodology Dynamic Logic exposed versus non-exposed methodology 200 European campaigns studies (Q1:2002 – Q2:2004) 160,000 individuals surveyed

Online Advertising Builds Brands

68.9 72.6

0

20

40

60

80

100

Brand Awareness Ad Recall MessageAssociation

BrandFavourability

Purchase Intent

Control

Exposed

Online Ad EffectivenessEuropean Averages

+5.4%

Which of the following [brands, products] have you heard of before?”

Of those who had not seen the online ad, 68.9% were aware of the brand

Of those who had seen the online ad, 72.6% were aware of the brand

So, the ad caused a 5.4% increase in awareness

Source: Dynamic Logic MarketNormsMarketNorms data through June 30, 2004; N=199 European campaigns, n=163,262 respondents

Percent

Online Advertising Builds Brands

68.972.6

23.4

34

27.3

33.2

44.647.1

38.3 40.2

0

20

40

60

80

100

Brand Awareness Ad Recall MessageAssociation

BrandFavourability

Purchase Intent

Control

Exposed

Online Ad EffectivenessEuropean Averages

+5.4%

+45.3% +21.6%

+5.6%

+5.0%

Source: Dynamic Logic MarketNormsMarketNorms data through June 30, 2004; N=199 European campaigns, n=163,262 respondents

Percent

European and US averages are equal

3.84.5

10.5 10.4

5.96.1

2.6 2.5 1.9 2.1

0

5

10

15

20

Brand Awareness Ad Recall MessageAssociation

BrandFavourability

Purchase Intent

EU

US

European versus US Average Ad Effectiveness

PointChange

Effective Frequency: Awareness

2.9

3.4

3.9

5.1

6.7

0

2

4

6

8

1 2 3 4 to 9 10 +

• Additional ad exposure increases brand awareness Awareness in 2.5 X higher

among those with ten exposures versus those with one exposure

Exposure Frequency

Point Change

Effective Frequency For Brand Awareness

Effective Frequency: Message Association

5.15.4

5.7

6.7

7.3

0

2

4

6

8

10

1 2 3 4 to 9 10 +

• Additional ad exposure increases message association Message association is 40%

higher among those exposed to ad 10+ times versus those with only one exposure

Exposure Frequency

Point Change

Effective Frequency For Message Association

Online Advertising Builds Car Brands

63.467

11.9

19.7

42.9

48.8

32.234.4

17.1 17.7

0

20

40

60

80

100

Brand Awareness Ad Recall MessageAssociation

BrandFavourability

Purchase Intent

Control

Exposed

Online Ad EffectivenessEuropean Automobile Averages

Source: Dynamic Logic MarketNorms-EU-Automotive, data through Q2/04; N=22 campaigns, n=19,372 respondents; *not statistically different from zero

5.6%

65.6%

13.7%

6.8%

3.5%

Percent

Online Advertising Builds FMCG Brands

75.880.3

16

33.2 33.2

44.4

53.3

58.1

47.5 50.3

0

20

40

60

80

100

Brand Awareness Ad Recall MessageAssociation

BrandFavourability

Purchase Intent

Control

Exposed

Online Ad EffectivenessEuropean FMCG Averages

Source: Dynamic Logic MarketNorms-EU-FMCG, data through June 30, 2004; N=33 campaigns, n=25,273 respondents

5.9%

107%

33.7%

9.0%5.9%

Percent

FMCG Outperforms EU Averages

4.43.8

17.2

10.5 11.1

5.94.9

2.6 2.7

1.9

0

5

10

15

20

Brand Awareness Ad Recall MessageAssociation

BrandFavourability

Purchase Intent

FMCG

EU Norms

FMCG Averages versus EU Averages

Source: Dynamic Logic MarketNorms-EU through Q2/04, N=199, n=163,262

Dynamic Logic MarketNorms-EU-FMCG through Q2/04, N=33, n=25,273

PointChange

Conclusions and Recommendations

• Conclusions: Online advertising builds brands!

• When measured in isolation, online advertising has a positive impact on traditional branding metrics like awareness, message association, etc.

– All 5 branding metrics positively impacted

EU online ad effectiveness results are similar to US Branding metrics continue to increase with additional exposures Online advertising works in FMCG – a category whose adoption of the Internet

trails other industries• Recommendations:

It is no longer a question of why use online but when and how much Know your marketing objective and track performance relative to industry

averages and your own internal data Don’t assume that effective frequency is 3 – because it is not. Effectiveness

continues to increase with additional exposures Cycle times are short online, so live and learn in real time