The EIAA

1
The EIAA Presents European Online
Advertising Effectiveness Study September 2004
2
Executive Summary

• 200 European online advertising campaigns
  consolidated into this study
• Study finds that key branding metrics (awareness,
  message association, favourability and purchase
  intent) were positively impacted by online ad
  campaigns
• Brand Awareness 5.4
• Ad Recall 45.3
• Message Association 21.6
• Brand Favourability 5.6
• Purchase Intent 5.0
• European results mirror US results
• Effectiveness continues to increase with exposure
  frequency (even at 10 exposures)
• Insights by Sector
• Autos
• Auto ads impact all branding metrics except
  purchase intent most likely the result of long
  purchase cycle and highly considered purchase
• FMCG
• FMCG ads impact all branding metrics
• European FMCG effectiveness exceeds Europe online
  averages

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Objective and Methodology

• Objective
• Quantify the average impact that European online
  ad campaigns have on traditional branding metrics
• Create benchmarks for Autos (22 studies) and
  FMCG (33 studies) verticals
• Methodology
• Dynamic Logic exposed versus non-exposed
  methodology
• 200 European campaigns studies (Q12002
  Q22004)
• 160,000 individuals surveyed

4
Online Advertising Builds Brands
Online Ad Effectiveness European Averages
Percent
Source Dynamic Logic MarketNorms MarketNorms
data through June 30, 2004 N199 European
campaigns, n163,262 respondents
5
Online Advertising Builds Brands
Online Ad Effectiveness European Averages
Percent
Source Dynamic Logic MarketNorms MarketNorms
data through June 30, 2004 N199 European
campaigns, n163,262 respondents
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European and US averages are equal
European versus US Average Ad Effectiveness
Point Change
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Effective Frequency Awareness
Effective Frequency For Brand Awareness

• Additional ad exposure increases brand awareness
• Awareness in 2.5 X higher among those with ten
  exposures versus those with one exposure

Point Change
Exposure Frequency
8
Effective Frequency Message Association
Effective Frequency For Message Association

• Additional ad exposure increases message
  association
• Message association is 40 higher among those
  exposed to ad 10 times versus those with only
  one exposure

Point Change
Exposure Frequency
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Online Advertising Builds Car Brands
Online Ad Effectiveness European Automobile
Averages
5.6
13.7
6.8
Percent
65.6
3.5
Source Dynamic Logic MarketNorms-EU-Automotive,
data through Q2/04 N22 campaigns, n19,372
respondents not statistically different from
zero
10
Online Advertising Builds FMCG Brands
Online Ad Effectiveness European FMCG Averages
5.9
9.0
5.9
33.7
Percent
107
Source Dynamic Logic MarketNorms-EU-FMCG, data
through June 30, 2004 N33 campaigns, n25,273
respondents
11
FMCG Outperforms EU Averages
FMCG Averages versus EU Averages
Point Change
Source Dynamic Logic MarketNorms-EU through
Q2/04, N199, n163,262 Dynamic Logic
MarketNorms-EU-FMCG through Q2/04, N33, n25,273
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Conclusions and Recommendations

• Conclusions
• Online advertising builds brands!
• When measured in isolation, online advertising
  has a positive impact on traditional branding
  metrics like awareness, message association, etc.
• All 5 branding metrics positively impacted
• EU online ad effectiveness results are similar to
  US
• Branding metrics continue to increase with
  additional exposures
• Online advertising works in FMCG a category
  whose adoption of the Internet trails other
  industries
• Recommendations
• It is no longer a question of why use online but
  when and how much
• Know your marketing objective and track
  performance relative to industry averages and
  your own internal data
• Dont assume that effective frequency is 3
  because it is not. Effectiveness continues to
  increase with additional exposures
• Cycle times are short online, so live and learn
  in real time