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Online advertising isn't a fad - it is a reliable form of marketing that gets results for businesses. Below is research compiled by AdByNet that
shows how advertising and media buying can increase your bottom line.
Videos Help Increase Online Sales
Score: 1 for rich media!
Research on the purchase patterns of online shoppers from Sellpoint, conducted by Coremetrics, has shown a 35% increase in the sales conversion
rate between shoppers who took rich media sales tours, including video, and those who didn't.
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Data from Dynamic Logic MarketNorms, based on 101 measured video ad campaigns, show that video ads perform well,
on average. In the chart below, Dynamic Logic compares deltas, or point differences between those who saw the ads and those who did not, for video ads and overall norms. The results show that video ads yield relatively higher increases in all of the below metrics, including both persuasion metrics, Brand Favorability and Purchase Intent.
(Source: Dynamic Logic Enhancing the TV-like Power of Video Ads on the Web - www.dynamiclogic.com/na/research/btc/beyond_the_click_nov2006.html)
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Based upon research conducted by Klipmart's Research Division and other studies, here are some highlights:
- Online video ads are up to four times more impactful than other online formats, with the majority of viewers watching over 70 percent of the content provided.
- Viewers are over five times more engaged with video content with which they can interact.
- Online video is the second most favored ad format, only modestly surpassed by sponsored links.
- But most impressively, when comparing the same ad units run on TV and online, the online ads beat TV ads in boosting brand awareness and purchase intent.
(Source: iMediaConnection Selling Online Video Ads, October 6, 2005 - www.imediaconnection.com/content/6912.asp)
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Consumers are engaging the ads they encounter in online video
advertisements.
Studies show that 40% of video viewers click on accompanying links
and visit
Web sites mentioned in the video.
Of which, 45% have looked for more information on an advertised
product.
| Video Viewers (Total audience:
$51 million) |
Broadband Users (Total
audience: $120.8 million) |
Male |
60% |
Monthly Spending Online |
$311 |
Ages 18-44
Ages 24-44 |
56%
20% |
Time Spent On-line/week |
12hrs.
4min. |
HHI $50,000+
HHI $100,000+ |
50%
17% |
Visit the Internet more often |
30% |
College Degree |
54% |
Try new products first |
28% |
Use internet for
Email, IM or Chat |
54% |
Buy and try at the same time as others |
36% |
Read Newspaper Online
Read Magazines Online |
59%
40% |
Last to buy and try
new products |
32% |
Play Online Video Games |
43% |
Never Purchased Online |
73% |
WATCH VIDEOS |
48% |
Purchased Online
in the Last Month |
45% |
AVG. ONLINE
SPENDING 2005 |
$720 |
Source 1: Online Publishers Association and Frank N.Magid Associates
Source 2: Arbitron 2004
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Over 100 million broadband users
By Nielsen/NetRatings' figures, 120.8 million Americans had broadband
Internet
access as of the end of August, 2005, up from 103.7 million in
January, 2005. The
percentage of active U.S. Internet users going online with broadband
from home
also reached an all-time high, said Nielsen/NetRatings. As of
the end of August,
61.3 percent of users reached the Web via fat pipes.
Source: InternetWeek, September 28, 2005
The Internet is now mainstream. Four in five Americans have Internet
access, with nearly
half of online households having broadband access, and as a result:
• Consumers are researching and buying items online.
• News, music and video are being accessed online.
• Consumers are spending a significant amount of time online,
even while they are doing other
activities, such as watching TV.
Arbitron/Edison Media Research Internet and Multimedia 2005:
The On-Demand Media Consumer
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