Online Branding Campaigns to Take Larger Share of Ad Budgets

From the beginning, marketers have used the Internet for direct response advertising. But will this format deliver returns on branding campaigns? Many marketers plan to shift some of their online budgets to branding this year but they’d like to see improved metrics to measure their ROI on this effort.

Until now, online branding has been a challenge for marketers, mostly because of metrics. They need the following data  to truly commit to online brand advertising:

  •  Improved clarity around ROI 68%
  • Ability to verify impact of advertising 56%
  • Ability to use performance metrics that have been used offline 53%
  • Improved purchasing efficiency 50%
  • Ability to verify delivery of advertising to target audience 38%

The new Digiday Survey: Online Brand Advertising Outlook for 2012 shows that 59% of 2012 online ad budgets will go to branding campaigns while 41% will go to direct response. And, to fund these branding initiatives, 60% of brand marketers will shift funds from the direct response category.

For now, marketers and agencies say that the best indicator of branding campaign success is brand lift. After that, marketers look to sales increases while agencies say consumer interaction with the advertising is an important success metric. In any case, as marketers spend more on online branding, all interested parties, including media properties, will be working to agree on “what constitutes success”.

[Source: 2012 Online Brand Advertising Outlook. Digiday. 2012. Web. 26 Jan. 2012] 
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.