EIAA Marketers Internet Ad Barometer September 2005

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EIAA Marketers InternetAd Barometer
September 2005
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Agenda

• Background
• The Research
• What the Industry does well
• Barriers to Advertising Online
• Onlines Role within Marketing Strategy
• Online Advertising Expenditure
• Key Takeouts

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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

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The Research

• 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

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Participating Advertisers
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What the Industry does well
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Shattering the myth.
1. Brand advertising doesnt work
89 DISAGREE that brand advertising online is a
waste of money
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Shattering the myth.
2. Online advertising is an add-on to mainstream
marketing strategy
81 think that online advertising is a vital
component of their advertising strategy
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Shattering the myth.
3. The internet only has a niche audience
88 of those questioned agreed that increasing
broadband penetration is making the internet more
attractive as a branding medium
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Shattering the myth.
4. Online advertising cant do both branding and
direct
Advertisers have similar broad marketing
objectives when using online as with other media
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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
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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

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Barriers to advertising online
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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

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Online Planning

• Insufficient standardisation of formats
• Insufficient dedicated staff and resources
  internally
• Labour intensive nature of campaigns

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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

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Role within Marketing Strategy
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Branding Vs Direct Response
FMCG
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Branding Vs Direct Response
Entertainment
FMCG
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Branding Vs Direct Response
Entertainment
Automotive
FMCG
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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

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Measuring Objectives

• 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

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Search

• 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

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Online Advertising Expenditure
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FMCG Share of Adspend
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Entertainment Share of Adspend
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Automotive Share of Adspend
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Reallocated media spend 2005

• Majority of new spend coming out of traditional
  media budgets, particularly TV

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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

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Key Takeouts
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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

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See you next at

• For further information please contact Alison
  fennah
• afennah_at_eiaa.net
• or visit
• www.eiaa.net