Today’s annual Internet Advertising Bureau (IAB) Engage conference will see the release of a year-long study carried out with research agency, GfK NOP which looked at cross-media campaigns for FMCG brands and isolated the impact of online in building brands and increasing reach.
The report collates the findings from the three-part study, looking at the separate and combined impact of online with TV, print and outdoor across three FMCG brands; Starbucks VIA, Nestlé’s Maggi So Juicy cooking product and most recently, the energy drink, Lucozade Sport and Sport Lite.
Tim Elkington, Director of Research and Strategy at IAB, summarised the results:
"Online advertising is effective in driving awareness and changes perceptions of brands. Online offers FMCG brands incremental reach, works particularly well with core target audiences and does this cost effectively.”
Lucozade’s "Yes” campaign which ran across video websites and TV - focused on engaging with a younger audience and associating the product with artists like Tinie Tempah and Travis Barker. Online was more effective at reaching the target audience as 67% of people who saw the ads online were aged 16-34 compared to 40% who saw them on TV.
Not only was online 17% cheaper than TV in generating reach but it was more successful in generating key positive perceptions amongst consumers such as "Lucozade has a strong association with great music” and "Lucozade has a cool image”.
Furthermore, unlike many campaigns where the effectiveness of the ad increases the more times a person sees it, the online campaign was most effective when people saw the ad on just 1-3 occasions – emphasizing the highly impactful nature of the online video advertising used.
Online’s ability to deliver hard-to-reach audiences was shown by the fact that almost one-third of people who saw the ad online didn’t see the TV ad. In contrast, only 8% of people who saw the TV ad saw the online ad. However, the greatest impact was achieved when consumers saw both ads.
For example, when comparing people who saw the ad with those who didn’t, TV caused a 4% "uplift” in consumers looking for Lucozade in a store; online ads caused a 10% uplift but those who saw both ads were 14% more likely to look for Lucozade in store than those who hadn’t seen either ads.
Maggi So Juicy’s cooking sauce campaign - aimed at a target audience of 25-40 year old women with children - included TV, online advertising and social media. Each form of advertising ended-up performing different roles throughout the campaign:
- The online element delivered an uplift in both brand and ad awareness. It encouraged research into the brand – an increase 3.2% pts amongst those who saw the ads searched for Maggi so Juicy online and 2% pt uplift in visiting the website
- Exposure to online social media delivered uplifts in favourability and purchase intent, and also encouraged experimentation with new recipes using Maggi so Juicy – an uplift of 4.3% compared to those who didn’t see the ad
- TV was most effective at driving brand favourability and purchase intent on a mass scale, stimulating word of mouth discussion and supermarket searches
As with the Lucozade campaign, online delivered significant extra reach beyond TV - 25% of those who saw the campaign online didn’t see it on TV – delivering reach at one quarter the cost of TV. Again, the greatest uplift in metrics occurred when TV and online were combined. This was particularly prominent amongst the target group where the online campaign delivered a 7.8% pt uplift in brand awareness over those who didn’t see the ad; the TV campaign delivered a 4.1% pt uplift; TV and online together delivered a 17.1% pt uplift.
The Starbucks campaign, launching their new instant coffee product – VIA - utilised print, outdoor and online advertising. The three formats were extremely complementary as 65% of those who saw the online ad didn’t see the press ads and 55% who saw the online ad didn’t see the outdoor ads.
Online was extremely cost-effective, reaching consumers at one-third the cost of outdoor and one-fifth the cost of press. Online advertising also increased product awareness at 80% the cost of press and 50% the cost of outdoor ads. Display ads in social media were the most cost efficient medium for reach and increasing key metrics such as Favourability and Purchase Intent.
Although press and outdoor advertising delivered uplifts across all key metrics for Starbucks, it also created a "halo effect” for the entire instant coffee category across Favourability and Purchase Intent.
Babita Earle, Digital Strategy Director at GfK,
" Our evaluation of all three campaigns within the Building Brands Online Trilogy produced some powerful insights on the role of online as a brand building channel. We believe our research will help advertisers to use and integrate online more effectively in future brand building campaigns.
About GfK NOP
For more information please visit http://www.gfknop.com/
London, UK - 3 November 2011