The influence of online advertising on search Consumers are using…

The influence of
online advertising
on search
Consumers are using search
engines as a response
channel to online advertising




User research conducted across the Adviva network
by Nielsen/Netratings, February 2007
Mike Teasdale Planning Director, Harvest Digital
                           How online display advertising
                           influences search volumes
· Twice as many people     A series of recent industry research is starting to show the direct connection
say they will use search   between online display advertising and search activity.

rather than clicking on
                           For example, an Atlas survey on the `halo effect' between display and search
a banner ad                discovered an average uplift on conversion rates of 22% on searchers who had
                           recently been exposed to a display advertisement from the same company.
· Projected searches are   Research using adserving data like this has the advantage of using massive
split evenly between       amounts of customer data across different companies, but there are some issues
product and brand          with the accuracy of the data ­ for example, cookie deletion by users can skew
                           the results.
searches
                           To dig a little deeper we turned to primary research with consumers to ask
· Almost a third of        them directly whether display advertising influenced their subsequent
our sample navigate        searching behaviour.
directly to the
advertiser's web site      We ran a survey in conjunction with Adviva, the leading advertising network, to
                           assess attitudes to online travel purchasing. Research was conducted and compiled
                           by Nielsen//NetRatings with over 900 respondents.
                    Research findings
                    Respondents were asked whether they would click on an ad, do a search or go directly
                    to the advertiser's website if they saw an online advertisement.



                    Thinking about holiday advertising
                    in general on the internet, if you see
                    an ad for flights or holidays, which
                    of the following actions do you
                    usually take?

     Only 26% of        35
                                                       31%


respondents said        30
                              26%        26%
                                                                  29%




 they would click       25
                                                                                                          21%


     on a banner        20



      to respond        15


                        10


                        5                                                          4%             4%


                        0
                             Click on   Search        Search     Go directly      Make           Other   None of
                             the ad     engine -      engine -   to advertisers   enquiry with           the above
                                        advertisers   general    site             travel agent
                                        name          term




                    We expected clicking on a banner to be the most popular option ­ but surprisingly
                    only 26% of our sample said that they would click on a banner to respond.

                    In fact search was the most popular option. This was split between searches for the
                    advertiser's name (26%) or for a general term relating to the advertisement (31%).
                    So more than twice as many people are being driven to a search engine by banner
                    advertising than are clicking directly on the banner!

                    Retail channels also benefit, with 4% claiming they would visit a high street store
                    having seen a banner.



                    What's going on here?
                    At first, these findings seem counter-intuitive ­ after all, what could be easier than
                    clicking on a banner? Much web activity is task-driven. `How much is that flight?'
                    `What's the weather like in Hull?'

                    Clicking on a banner distracts from the completion of a task, people tend to follow
                    up on the advertisement afterwards. Many consumers seem to be reacting to online
                    advertising rather like they would to ambient media like billboard posters.
Implications of this research
One key implication is in how we judge the effectiveness of online activity.
Focusing on the last click before a transaction will often rate search marketing as the
most cost-effective channel, underestimating the part display advertising plays.

Alex Burmaster, European Internet Analyst at Nielsen/NetRatings observes, "The
unrivalled ability of the Internet to provide marketers with detailed information
on direct user response to online ads often means the whole story is ignored. Our
research highlights how `click-through-tunnel-vision' ignores the larger or delayed
impact that the ad can have on viewer behaviour or perception. After all, you don't
just measure the success of a poster by how many people buy the product advertised
from the nearest shop."

Fiona McKinnon, European Corporate Development Director at Adviva comments:
"Display activity gives clients the opportunity to reach large numbers of internet
users at a relatively low cost. It's important to appreciate ­ as this research underlines
­ that direct clicks are only one way that the advertising is working.

Consumers are also doing searches, going directly to your web site and even visiting
your retail store ­ all prompted by an online advertising campaign."




The importance of an integrated
approach to search and display
The most striking finding is how many searches are being prompted by online
display activity.

Unfortunately for brand owners, the research suggests that more searches are going
to generic terms like "package holiday Cyprus" than to the brand itself.

Search needs to be optimised to work with banner advertising, by anticipating
searches that are likely to be prompted by the banner and ensure a higher rank
for search results.



Summary
Although the speed and accuracy digital marketing enjoys is the envy of other
marketing channels, the data alone cannot be trusted to give the total picture.
Just as online is influenced by activity in offline channels, different online channels
also seem to have a profound influence on each other.

This research strongly suggests that measuring display activity by click through or
direct action alone underestimates the impact of that activity. For every click on a
banner, our research implies at least two related searches and a further direct visit
to the advertiser's web site.
About the research
Surveys were delivered as a pop up across the Adviva network to Test (exposed) and
Control (non exposed) cells. 863 questionnaires were completed in full by male and
female respondents of all ages in September 2006.



About Harvest Digital
Harvest Digital is a full-service online marketing agency specialising in media
planning and buying, search marketing and online marketing creative.

Formed in 2001, the company is privately owned by staff. Based in London,
clients include Tesco, Auto Trader, Thomas Cook, 3M, Tiscali and Shelter.

www.harvestdigital.com



About Adviva
Adviva is the largest CPM focused network in the UK. It places a strong emphasis on
building a quality content-driven network providing advertiser's confidence in results
in a brand safe online environment. Adviva's comprehensive suite of advertising
targeting options include content and channel targeting, behavioural targeting in the
form of user profiling as well as keyword contextual targeting.

In order to ensure the quality of the Adviva network Adviva have developed an in-
house keyword blocking technology which prevents adverts from showing on pages
that have URL's containing inappropriate content. Adviva are the only network in the
UK to use this technology as standard across all advertising campaigns.

Adviva is the only UK company to offer proprietary advance targeting technology
combined with a comprehensive quality controlled network. Its experience teams
ensure the best in customer service through a consultative account management
approach.

Established in 2000 and headquartered in London, Adviva expanded in the French
and German markets in 2005 with offices in Paris and Munich. It was named the UK's
25th fastest growing technology company in the Sunday Times Tech Track
100 League 2006.



About Nielsen NetRatings
Nielsen//NetRatings is a global leader in Internet media and market research,
providing companies with valuable insight into their businesses. Nielsen//NetRatings
offers the industry's premier source of actionable Internet data and digital media
research on Website usage, online advertising, consumer attitudes and
competitive analysis.