Historically, local media advertisers have avoided online tactics for their branding message, but research shows higher engagement helps the brand resonate with consumers.
Many marketers have considered the online platform to be more of a direct response medium and have hesitated to put their branding message in the online space.
With the inherent measurability of online and the immediate sense of return, online has historically been the cornerstone of direct response marketing efforts. Brand advertising that attempts to shift consumer perception, however, has historically utilized more traditional channels such as print, radio and television.
According to new research from Vizu, advertisers are increasingly using the online medium for their branding message. Their projected spending for online branding is now rivaling that of direct response.
According to the 2013 Online Advertising Performance Outlook report,
sixty-three percent of marketers’ project that the dollars allocated to online brand advertising will grow in 2013, with one in five stating that the increase will exceed 20 percent.
With these kinds of statistics, brand ad spending is projected to grow more quickly than direct response in the online space, and this trend is expected to continue in coming years. Why is this trend expected to continue?
1. The migration towards digital channels
Whether through online, tablet, mobile or connected TV usage – statistics show that media consumption continues to migrate toward digital channels and brand marketers (and their advertising dollars) will need to follow them there.
When it comes to specific tactics, brand marketers in particular are planning to increase their usage of social media, mobile and video advertising, with fewer dollars allocated towards rich media and standard display.
While media usage is shifting toward the digital space, evolving formats also provide a reason why brand advertisers should consider using online.
2. Richer experiences influence consumer opinion
As digital channels are starting to provide richer sight, sound and motion experiences, they are much more likely to influence consumer opinion and naturally attract more brand advertisers.
With the increased usage of online video, many advertisers say they will be shifting some of their television budget to online video in 2013. According to the research, “18 percent say they will be shifting a ‘material amount’” of their budget to the online space. Given that online video advertising is often repurposed television creative, this may not represent a truly new and different way of doing thing, but it is a telling statistic.
With all of these statistics for brand advertisers to consider, there are still challenges some brand advertisers feel prohibit them from considering the online space for their messages.
As brand advertisers consider their local media options, they should consider if the online space makes sense for their branding message.