The IAB partnered with Kantar, global leaders in ad effectiveness research, on an Australian first report on the impact of digital advertising on building brands. As part of this study Australian Cross Media Kantar analysed… campaign effectiveness studies global Digital Brand global Cross Media global Marketers as part of Lift studies campaign effectiveness our annual Getting Media studies Right industry survey
With over half of all ad dollars spent on digital media, the IAB wanted to demonstrate to marketers how to get the best return from their ad investments Source: IAB Australia Online Advertising Expenditure Report prepared by PWC 12 months to December 2018 and 2017, CEASA 2018
Brand building is vital for business success. In the long term, strong brands generate more superior shareholder returns than leading market indexes. BrandZ Top 10 Powerful Brands BrandZ Strong Brands Portfolio S&P 500 317% MSCI Word Index 196% 128% 59% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Kantar BrandZ Top 100 Most Valuable Brands 2019
Investment in media directly impacts sales and also impacts brand equity (….. and brand equity is a driver of sales) Has a direct impact on sales BUSINESS Total MROI The complete impact on Communication sales from media investment media investment Has a direct impact on equity BRAND EQUITY Source: Kantar Total MROI database
A strong brand drives future sales, as well as sales TODAY. Source: Kantar Total MROI database
Strong brands are built by being Salient and Meaningfully Different In this report these are reflected as the Long term aggregate metrics of sales Awareness, Brand Associations and Motivation 7
Digital advertising is effective at delivering brand impact and has a marketing role beyond that of short-term sales All digital formats AVERAGE CAMPAIGN IMPACT PER PERSON REACHED can help build brands 2.3% 1.5% 1.3% 2.2% 1.6% 1.7% 4.7% 1.7% 1.9% 0.9% 0.9% 0.8% 2.3% 1.8% 2.7% 1.2% 1.5% 1.4% 1.5% 1.2% 1.2% 1.1% 0.8% 0.7% TV Online Video Cinema Radio Print Online Display Social Outdoor AWARENESS ASSOCIATIONS MOTIVATION Source: IAB/Kantar ‘The Digital Brand Effect Report’ October 2019 - 145 Australian/New Zealand cross-channel studies
The brand impact of digital campaign exposure is retained well after the campaign ends and this retention is comparable to offline media channels % RETAINED BRAND IMPACT AFTER ADVERTISING ENDS 90 80 8 weeks after flighting, digital 70 media retains over 20% of 60 original brand impact 50 40 30 20 10 0 W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 VIDEO SOCIAL DISPLAY Source: IAB/Kantar ‘The Digital Brand Effect Report’ October 2019 - 145 Australian/New Zealand cross-channel studies
Retained brand impact for digital video is on par with that of TV - effective advertising carries through similarly online and offline Source: IAB/Kantar ‘The Digital Brand Effect Report’ October 2019 - 145 Australian/New Zealand cross-channel studies
There is a body of evidence to support it is the COMBINATION of media (including digital) that drives greater ROI and not specific media on its own Incremental Impact of Media Channels on ROI Kantar are not the only measurement company to prove that synergy drives greater marketing +35% +19% effectiveness. Analytics Partners meta- analysis shows adding multiple touchpoints increases ROI significantly – up to an additional +35% for five channels. Number of Channels Source: Analytic Partners, 2016; Analysis based on over 3,200 campaigns from 2010-2015, Platforms include TV, Print, Radio, Display, Paid Search, Online Video, PR, Out-of-Home and Cinema
Digital channels demonstrate synergy effects when working with each other (video, display, social), as well as strongly complementing offline media. % SHARE OF OVERALL BRAND CONTRIBUTION Synergy Exclusive (share of contributions due to exposure to this channel plus another) (share of contributions due to exposure to this channel on its own) AUSTRALIA / NZ Online Video 17% 22% Over 40% of digital brand effects are a result of working Online Display 13% 24% with other digital or offline media to produce synergistic Social 18% 23% effects. Synergy with offline media Synergy with digital media Exclusive Source: IAB/Kantar ‘The Digital Brand Effect Report’ October 2019 - 145 Australian/New Zealand cross-channel studies
Digital touchpoints pay their way back in building brand building and are more cost efficient than most offline channels Index : Share of Brand Impact / Share of Spend Index = 100 130% 102% 124% 136% 164% 108% 112% 116% 129% 142% 131% 149% 103% 108% 66% 97% 79% 74% 69% 97% 80% TV Online Video Radio Print Online Display Social Outdoor AWARENESS ASSOCIATIONS MOTIVATION Source: IAB/Kantar ‘The Digital Brand Effect Report’ October 2019 - 145 Australian/New Zealand cross-channel studies
Taking into account the complete picture of total ROI shows digital contributes to both short-term and brand equity driven sales. Total ROI by media today Short term sales Equity driven sales through that media TV Digital Radio Outdoor Print Cinema Source: Kantar Database TMROI non FMCG
Social and video formats have come of age with brand ROI improved over time Reflects adoption and reach as well as improved ad units with better integration, new features and user experience. Source: IAB/Kantar ‘The Digital Brand Effect Report’ October 2019 - 145 Australian/New Zealand cross-channel studies
Top performing digital campaigns are over 3.5 times more impactful than the bottom performers, with top performing campaign spend just 12% higher Source: IAB/Kantar ‘The Digital Brand Effect Report’ October 2019 - 145 Australian/New Zealand cross-channel studies
Creative quality is half of campaign impact, followed by reach and frequency. Media synergy 9% Design creative with context in mind. Optimising assets to work their hardest Frequency makes your ad dollar 16% work to highest Creative potential quality Drivers of Salience: 50% Overall Campaign Level Reach 25% Source: Kantar global CrossMedia studies, 2015-2017, (223 studies).
Creative synergies help to drive much greater return and optimize both digital and traditional spends Campaign contribution to brand exposure growth (100 is indexed) 157 +57 100 Not well integrated or Integrated AND most adapted to media context media were customised well Base: (57) (102) Source: Kantar global CrossMedia studies, 2015-2017, (223 studies). Overall Campaign Contribution is a measure of campaign impact on a combination of all brand KPIs (awareness, associations, motivation)
For top digital campaign performance, best practice is more than simply a bigger investment Don’t just think short term – Digital channels are highly cost efficient for driving brand metrics Work with other media – 35-45% of digital impact comes from working effectively with other media Manage your frequencies – over exposure impacts cost efficiency and can be negative for brands Test and learn with new and emerging formats/platforms – in the early stages of development, they can out perform other channels Optimise your creative assets to the channel/platform where they will appear
In summary …. All digital channels are effective at delivering brand impact - digital media has a marketing role beyond that of short-term sales activation. The brand impact of digital campaign exposure is retained well after the campaign ends and this retention is comparable to offline media channels with 20% of the original brand impact of digital campaigns retained for eight weeks after the original exposure. Digital campaigns have a higher share of brand impact compared to the share of spend, with the report finding that digital touchpoints pay their way back in building key brand building metrics being more cost efficient than most offline channels. Digital advertising excels when it is part of a multimedia campaign. Adding multiple touchpoints (including digital media) to a campaign increases ROI significantly. The upside in brand impact is significant for brands who create digital campaigns with context in mind and integrate with other media. Top performing campaigns are over 3.5 times more impactful than the bottom performers. 20
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