Who is in control of your brand?

AdAge has just posted a story discussing a big Nielsen study on Facebook advertising. The study of 800,000 people illustrated the benefits to brand recall and purchase intent. They look at the combination of Earned Media and Paid Media.

The study of more than 800,000 Facebook users and ads from 14 brands in a variety of categories shows a marked increase in ad recall, awareness and purchase intent when home-page ads on the social network mention friends of users who’ve become fans of the brand in the ad.

For standard paid media they found a 10% increase in ad recall, a 4% increase in brand awareness and a 2% increase in purchase intent, compared to a control group. And where it get’s interesting is the impact of having both Earned and Paid which resulted in an increase of recall to 16% when ads included mentions of friends who were brand fans, and 30% when the ads coincided with a similar mention in users’ news feeds.

But the increase in recall jumped to 16% when ads included mentions of friends who were brand fans, and 30% when the ads coincided with a similar mention in users’ news feeds. Brand awareness saw similar bumps: up 2% from just a home-page ad, 8% with a “social ad” bearing mentions of friends who were brand fans and up 13% when a home-page ad appeared along with a mention of friends who were brand fans in the users’ news feeds.

The most powerful outcome from this study was their ‘other’ finding, that purchase intent increased in similar ways.

Purchase intent was 2% higher among viewers of home-page ads vs. nonviewers, but got a four-times-bigger bump, up 8% either from social ads or when ads appeared alongside organic mentions of the brand in the news feed.

And to all you digifolk, clicks only made up a small proportion of the whole picture. (Digifolk are those that have grown up in a world of focusing on click throughs, not good old fashioned reach.)

Only around 130,000, or less than 1%, “engaged” with them by clicking on them

And why’s this so important?

For years we have worked hard to get in front of our audience for 30 seconds, or half a page, with pretty profound results, reaching millions, building great brands and generating revenue. Sure now, with social media, we try to get consumers to tell each other about our message, but that’s still the same outcome – REACH.

As I’ve discussed in other posts our growing addiction to clicks is taking us away from the very valuable outcome of reaching our audience. Yes, if they click it’s great, but we all know how few do, so studies that discuss and highlight impact of digital reach – be it display, search or otherwise – on brand awareness, purchase intent and other metrics add value to our good old friend REACH. It’s not the first study of it’s kind, Nielsen released one last November – funny to see I reacted in a similar way…

Thoughts?

Some good research from Nielsen came out recently as you may have read in B&T and Digital Media that argues the value of online advertising in terms of recall, recommendation & purchase influence.

The research also revealed intention to purchase increased by 4.9% following exposure to an online advertising campaign, with brand sentiment increasing by 5.3%.

Display advertising also correlated with a rise in awareness, with top-of-mind awareness jumping 3.1% while prompted awareness increased by 3.5%. The likelihood of a consumer recommending a brand following exposure to an online advertising campaign also increased by 4.4%.

This leads me to 2 main thoughts

1. How does this compare to TV, print & radio? (using the same benchmarks & research approach)

Without context these numbers might be under or over valued as it could smash or be smashed by these other channels? It would be good to put them side by side to see how they interact. And what’s the impact when multiple touch points occur, say TV & Online, does it improve, reduce, increase, change the impact of the communication?

2. More importantly can marketers drop their addiction to clicks?

Clicks, performance & data are both the power and the Achilles heel of digital media. Thanks to many publishers, like Google, you can buy a visitor to your website. This is great because it reduces the risk, it’s not so great because the value of the exposure to media (banner, search result, edm, etc) is missed, all the focus is on the click.

So what?

I recommend clients establish an ROI (return on investment) calculator, where you add up all the outcomes from a campaign and compare it to the cost of the communication. This helps you learn & evaluate performance in a more balanced and reasonable manor. (I’ve explained how to create an ROI calculator here)

One piece of the ROI puzzle should be exposure, it may not be as valuable, but it has to be considered.

This kind of research helps us understand the value, however, we (marketers) need to assign value to it first, both rationally and in our guts.

The last time I checked

About 3 months ago I did some work researching the viability of developing a mobile website for one of our key clients. We reviewed the potential traffic we could drive through search plus the total traffic already coming from mobiles.

From the research I found that about 25% of Australians had access to 3G (this doesn’t mean they use it) and this % had grown rapidly since the introduction of the iPhone. However, based on potential mobile paid search & our current mobile visitors we were able comfortably get 1-2% of our total website traffic to be mobile, pretty darn low. So we, and the client, decided to hold of on a mobile site and focus on other digital activities.

A profound Sensis research study

It’s 3 months later and Sensis have released a research report (pdf) by Sweeny Research that indicates that 26% of Australians have accessed the internet from their mobile – a pretty astounding number.So therefore all advertisers should start spending more on mobile…

So I dug a little further

So I jumped back into their 2008 report to see what the change was year-on-year and I was surprised to see that it wasn’t there… weird. At this point I got a bit skeptical and something else popped out at me – Yellow Pages (Sensis) just released an iPhone app of their directory – what a perfect time to release research that tells their advertisers to spend on mobile.

So maybe I’m skeptical, maybe it is finally the year of the mobile (which the mobile industry has been claiming for 3 yers now) or maybe not. I’m just questioning the background, approach and validity of the research. Maybe they should’ve asked “How many times have you accessed the internet via your mobile in the last 12 months?”.

My personal recent experience

In a recent campaign for another client, the media agency negotiated some bonus media with a big publisher, some mobile media. The publisher also offered to build a mobile site for the product, as there was no cost or risk to our client we couldn’t resist.

So we received a bunch of banner impressions and a really nice mobile site and we measured the results. This client has an ROI calculator that helps compare the performance of different media online, it calculates what the value of the media was to the business. So, if we calculated the value of the mobile site and the media provided by the publisher it would’ve been worth about $50 – not awesome at all.

What does this all mean?

Now I love and advocate mobile apps and advertising, particularly considering it’s potential growth with iPhone, Google Android and many others entering the market, and telcos rapidly reducing the cost of data. However, will it currently deliver a strong ROI? Is this the best place to spend $50k? That all depends on your marketing objectives, but for some of my clients I’d say no

In a recent report prepared by Sysomos and it indicates that we’re beating massive countries like Brazil, Germany, Netherlands, France, Indian & South Africa in terms of new user sign ups on Twitter.

Full report here: http://www.sysomos.com/insidetwitter/appendix

JWT regularly release a great piece of research called the Anxiety Index. It’s a global study that creates an index for each country in a range of particular measures. The top level measure is how nervous/anxious each country is, and Australia is feeling good – at the moment.

The key takeaways for me are

1. Austrlaian’s are currently at ease (relatively)

This could be a result of not actually having a direct noticable impact yet, i.e. losing jobs, however, we know many large companies are continuing to cut back staff. So maybe we’re happier because the impact of the GFC took longer to hit our shores?

2. We’re happier in all areas, compared to the rest of the world

Unsurprisingly the economy and cost of living are our biggest concerns, but surprisingly we’re as anxious about Military Hositlities as the rest of the world.

3. Australia’s aren’t confident about the short term

With the exception of the property market we’re very anxious about the short term (next 6 months), especially unemployment, company failures & food prices – all pretty important measures.

What does this mean to marketers? What does this means to everyone else?

We’re on our way to financial recovery, but leaders need to keep in mind that the anxiety around the short term could undermine our stability as an economy. Marketers need to continue to ensure they’ll be employing people, reducing cost of their products and aren’t going out doing something random, lavish and risky.

What do you think about the research? What does it mean to marketers?

Full research report here: http://from.simontsmall.com/index.php/2009/08/05/research-australians-the-recession-the-environment/

It’s sometimes hard to find valuable, insightful and new information online. If you’re into marketing like I am, these blogs should all be regular reads. Whether they’re an industry voice, thought provoking or factual, each of these blogs/news sites will help you stay at the forefront of marketing. (Some are organisations and some are individuals)

These are my top 14 marketing thought leaders:

• A Digital Perspective – Jye Smith on social media, marketing and the internet
• a shel of my former self – Blogging at the intersection of communications & technology
• acidlabs – Conversation. Collaboration. Community.
• Ad Age – CMO Strategy
• Chris Brogan – Solving business strategy challenges with social media
• Laurel Papworth – The business of being social
• Marketing Charts – Charts and data for marketers in web and Excel format
• Marketing Magazine
• Mumbrella – Everything under Australian media & marketing umbrella
• Servant of Chaos – A blog by Gavin Heaton
• Seth’s Blog – A blog by Seth Godin
• The Steve Rubel Lifestream – Daily links, insights, photos, videos and more on emerging technology.
• Web strategy by Jeremiah Owyang – Social Media, Web Marketing
• Love Digital – A weekly interview podcast – digital marketing
• Come Together – Thoughts on community and conversation

Is there something you read regularly that you would add to this list? Or do you disagree with one of my recommendations? Post a comment.

Thanks to Laurel Papworth,  I discovered that in the US internet has overtaken newspaper as a primary source of news 40% (internet) to 35% (newspaper). Another amazing stat is that the percentage has grown from 24% to 40% from the same time last year.

However, considering all this, TV still dominates as a primary news source for all people at 70%.

One powerful finding shows that 59% of people under 30 yrs old see the internet as a primary source, this is up from 34% last year, equating to about 50% growth. On the flip side, TV has declined from 68% to 59%, a 11% decrease.

And as Laurel Papworth puts it

Remember, 71% of Australians don’t trust the printed word. Many more trust online news. And the Pew study confirm that 2008 was the year that that view went global.

*Research: Pew – Figures add to more than 100% because multiple responses were allowed

If I were in the newspaper business I’d be thinking of a new name for my industry, without the news, its just paper, and Reflex are doing pretty well in that space.

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• Americans abandon newspapers for the internet
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As social media analysts and consultants fall off the pages of the AFR and mainstream media, the excitement is rapidly declining.

In 2009 excitement will be replaced with its less glamorous older cousin ‘measurement‘. People and brands around the world have experiemented with all kinds of social media and its been fun, but now its time to count the cookies, and deliver solid a ROI.

Kate over at Social Abacus brings together the predictions of industry leaders, analysts and researchers on social measurement in 2009.

Top 4 predictions for 2009:

* We will substantially advance our understanding of individuals and the meaningful connections they have.

* We will identify methods to tap what people are *really* thinking, feeling, and paying attention to, meanwhile gaining insight on what a measurement is truly capturing.

* We will determine how to measure the value of social interactions and attach financial value, whether we’re monetizing attention or a new medium.

* We will build better tools to manage– analyze and visualize– massive volumes of data, primarily tapping the evolving social graph.