Marketers Shift Funds to Online Branding Campaigns

At a time when well-​known brands are trying to recover from the recession, marketers may look online for new ways to grow recognition and awareness. To date,  marketers have used online ad budgets for direct response campaigns. But eMarketer analyst David Hallerman says marketers can improve their branding efforts by optimizing their use of the following types online display media.

  •  Paid media – Marketing messages that appear next to content generated on someone else’s site
  • Owned media – Marketing messages that appear on the marketer’s site
  • Earned media – Marketing messages or positive comments that are generated by someone else.

 Hallerman notes that as the online ad space matures, more marketers are using their money to focus on branding instead of just prompting for a response. For example, in 2009, about 64.8% of online ad spending fell into the direct response category. The balance, 35.2%, was all about branding. By 2014, that ratio will have shifted. Up to 58% of display-​type online ad spending will be direct response but branding campaigns will have captured up to 41.9% of the total effort.

 This change in online branding campaigns may be associated with the increased use of video.  Last year, video grabbed 13.4% or $1 billion of the online ad display market. The projections for 2014 look very different. The expected $14.71 billion online display ad market should resemble the following breakout:

  •  Banner ads – 50.1% (down from 66.7% in 2009)
  • Rich media – 12.3% (down from 19.8% in 2009)
  • Video – 37.5% (up from 13.4% in 2009)

 According to Hallerman, online marketers will realize increasing advantages from paid, earned and owned media.  As a result, “they must learn to construct campaigns that rely on all three types of media to engage with consumers and amplify brand messages. Paid, owned and earned media all contribute to the whole and to one another.” As marketers use these multiple media forms, they will also employ more video to make their pitches.

 [Source: Blending Paid, Owned and Earned Media for Branding. eMarketer​.com. 21 Sept. 2010. Web. 4 Oct. 2010] 

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.