Online really works: IAB brand engagement study

This is the fourth study of its kind and was conducted by ævolve (formerly Carat Insight). The research set out to quantify the impact of display internet advertising on brand engagement relative to other communication channels, such as press, radio and TV, in the retail sector, as well as wider influences such as word of mouth or heritage.

What did we focus on?

• John Lewis

• Marks and Spencer

• Next

• Debenhams

• Woolworths

What were our objectives?

• To demonstrate the ability of internet advertising to drive engagement.

• To measure the effects of internet advertising on brand strength relative to other media.

• To identify how internet advertising works alongside other brand contacts to increase brand consideration.

What was our sample?

• 1024 Women aged 30-50.

• All to have shopped in at least 3 of the stores included in the study inthe last 6 months.

• All to agree with the statement ‘I enjoy shopping in major stores onthe high street’.

• All to have broadband internet access either at home or a work.

• All to use the internet at least 2-3 times a week and at least 7 hoursa week.

What are the most important contributors to brand engagement for this audience?

• Affinity 24.3%

• Quality 19.3%

• Fits my needs 16.3%

• Presence 14.7%

• Choice 12.1%

• Service 10.8%

• Sales 2.4%

The previous three brand engagement studies identified 2 or 3 clear contributors to brand engagement however, in the retail sector, there wasn’t a clear winner. Other than ‘sales’, all of the above were fairly evenly split. It is therefore important for advertisers to hit all of these in order to achieve the greatest brand engagement.

How many ads did we show them?

A total of 41 separate ads in the study, split across the 5 test brands, and across 5 different media channels:

• 14 press ads

• 14 online ads

• 8 TV ads

• 3 radio ads

• And 2 outdoor ads

What did we find out?

• The brand’s own advertising contributed to 5% of driven brandengagement

• Within this, the online display advertising has a greater effect on brand engagement than any other medium, contributing an average of 40%of the advertising effect.

• Press advertising has the second greatest influence, contributing 31%of total consumer engagement.

• Next was TV with 19%, Radio with 8% and Outdoor 3%.

• Online advertising for department stores is 16 times as effective perpound of spend as the all media average.

What drives consumer engagement with a department store/major high street retailer?

• Brand shop experience and competitor experience were much biggerfactors in terms of driving brand engagement with consumers, whichis to be expected given the long-term relationships consumers havewith these stores.

• Unsurprisingly, a retail brand’s own website was also found to have asignificant effect. Website experiences have over twice the impact ofbrands’ own communications.

• Overall website ease of use came out by far the highest ininvestigating the impact of online experiences (over 50%).