Media Sellers and Buyers Expect 2013 Emphasis on Online Brand Advertising

Heavy brand marketers have been slow to move away from broad reach mediums like traditional TV and have been using digital mediums for direct-​response campaigns. The rationale for the strategy had been all about the limitations of measuring ROI for the new marketing formats. This year, media buyers and sellers say brand marketers are poised to shift more ad money, especially the funds spent on branding campaigns, to the online channel as the ROI measurement challenges improve.

The latest research from Vizu, a Nielsen company, suggests that large brands are seeing the wisdom in moving their efforts online where onlineuserconsumers are spending more time. The online ad spending should look something like this:

  • Brand advertising 18%
  • Direct response advertising 18%
  • Mix 64%

In 2013, 63% of marketers say they’ll increase online brand advertising while only 51% will increase direct response advertising.

Vizu’s research also incorporated predictions from media sellers. This group believes that 60% of their online sales this year will stem from branding campaigns. Nearly all sellers, 89%, expect that brand ad sales will be a growth vehicle for them through the end of the year.  At the same time, direct response campaigns will also fair well with 80% of media sales reps looking for an increase in that sector as well.

The news about online brands is big though and analysts trace the growth to fragmentation of consumer media use and rapidly improving online ad formats like video which deliver a quality experience.

Marketers will be watching the results of their big shift carefully.  For most, a solid and verifiable way to measure impact and ROI will be the key to continued migration of branding dollars from traditional to digital marketing channels.

Have you moved any of your branding efforts from traditional to digital formats this year? Are you able to verify your ROI?

[Source: Online Advertising Performance Outlook. Nielsen​.com. 2013. Web. 1 May 2013] 
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.