Branding: Advertising and Brand

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Branding 101:

An Overview of Branding and Brand Measurement for Online Marketers

Report Contact:
Molly Hislop
Director of Research & Development, Dynamic Logic
800-245-2455
molly@dynamiclogic.com

April 2001

Dynamic Logic's Branding 101:
An Overview of Branding and Brand Measurement for Online Marketers

Table of Contents
INTRODUCTION3
WHAT IS BRANDING?6
MEASURING BRANDING OFFLINE9
STANDARD PRACTICES IN TELEVISION ADVERTISING9
Case Study: Kraft Uses Copy Testing for DiGiorno Rising Crust Pizza9 STANDARD PRACTICES IN PRINT ADVERTISING10
Case Study: Advertising Works in Print11
TRACKING STUDIES12
Case Study: Avis – Rent-A-Car12
MEASURING BRANDING ONLINE14
ONLINE COPY TESTS14
Case Study: Findings From Ipsos-ASI Interactive14
IN MARKET MEASURES15
Case Study: Travelocity16
COMPARING ONLINE AND OFFLINE BRANDING18
TABLE: COMPARING MEDIA EFFECTIVENESS IN BRANDING AND DIRECT MARKETING18 MSDW OBSERVATIONS ON MEDIA EFFECTIVENESS18
Brand Recall18
Generating Product Interest19
Generating Brand Awareness19
Cost Effectiveness19
SUMMARY20
GLOSSARY OF TERMS21
REFERENCES22

Dynamic Logic's Branding 101:
An Overview of Branding and Brand Measurement for Online Marketers

Introduction
Professionals involved in online media are met with increasing scrutiny surrounding the medium’s value. Online media is not alone, however at their inception, all forms of media have been pushed to show value. Through that pressure have come some innovative and widely accepted approaches to measure advertising effectiveness. One simple way to measure the effectiveness of advertising, as stated by the head of online advertising at a large packaged goods company is to "stop advertising and see what happens." While that comment was made humorously, it underscores the notion that we know advertising works - it's just a challenge to know precisely how. Since the stop-and-see-what-happens approach is not feasible, smart marketers need to devise ways to measure the value of their advertising on an ongoing basis. Of course, the measurement tactics and metrics chosen must meet the clearly defined objectives of the campaign: branding, direct response, or both. When looking at why ad budgets are spent in TV, Print, and Radio, over half of it (59%) is for branding, according to the Direct Marketing Association. How much online advertising is geared towards branding is a topic of some debate: AdRelevance says approximately 63% whereas Nielsen/NetRatings says 11%. Either way, branding campaigns are clearly a part of traditional ad spending and online marketers need to understand how to include brand metrics in their measurement approach. Some online marketers hear they need to measure branding and think: ‘oh no, here is more data we have to deal with.’ While the data-obsession can get overwhelming, the answer is not to turn away from the important data, but perhaps be more judicious about what data-point one seeks. Smart marketers find the right balance, gathering select data points without trying to measure every single thing and getting frustrated. Like a mosaic or the famous point-style head-shots used in The Wall Street Journal, a few key data-points can paint a clear picture. Online effectiveness tracking has historically been framed in terms of ad impressions, click-through rate, and the resultant direct-response action (registration, purchase, etc.). These metrics, while important, only tell a small part of the effectiveness story. Getting people to react immediately to advertising, while possible, may not be feasible or appropriate for many advertisers. Imagine the challenge for the brand manager of Soap X who is thinking about running an online advertising campaign; the campaign should be measured by what are realistic outcomes.

Outcome A is best measured by behavioral metrics such as click-through and post-click conversion analysis. These are behavioral in...
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