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Case Study: The Hidden Impact of Display Advertising. April 2010 Yahoo! Asia-Pacific. In partnership with:. Background. Much of previous research and case studies are focused around the branding effects of display ads
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Case Study: The Hidden Impact of Display Advertising April 2010 Yahoo! Asia-Pacific In partnership with:
Background • Much of previous research and case studies are focused around the branding effects of display ads • Some emerging work around the impact of display ads on search behaviour(e.g. Professor Hairong Li, Michigan State University (2009) “Unpuzzling the Synergy of Display and Search”) • Our study explores the impact of display advertising on brand perceptions and search intent for Starwood Hotels: 1. Did display advertising impact brand perceptions? 2. Did display advertising impact branded search intent?
“The bigger battle in search may very well be won before the search is even conducted.” Nick NyhanCEODynamic Logic
WPP-Google China preliminary findings Display ads can increase category search probability to 1.57 one day after the exposure (and up to 1.20 two days after the exposure). No significant impact on category search probability rate after 3 days. Source: Professor Hairong Li, Michigan State University (2009) “Unpuzzling the Synergy of Display and Search”
WPP-Google China preliminary findings Display ads can significantly increase branded search probability within the first two days. Interestingly, branded search probability can still increase to 1.73 seven days after the initial exposure. Source: Professor Hairong Li, Michigan State University (2009) “Unpuzzling the Synergy of Display and Search”
Different impact across guest segments… Mid-Market Hotel Guests Luxury Hotel Guests already pre-disposed towards the Starwood brand as evidenced by the higher baseline scores Luxury Hotel Guests Significant difference between control and exposed group at a 90% confidence level
Optimal frequencies for desired impact… 3-4 ad exposures needed to strengthen brand perceptions significantly for less- engaged guest segment Mid-Market Hotel Guests Luxury Hotel Guests Significant difference between control and exposed group at a 90% confidence level
Did the display advertising impact branded search intent? 02
Different impact on behavioral intent across segments… Display ad impact brand perceptions more than behavioral intent (no significant life noted) Mid-Market Hotel Guests Display advertising significantly moved behavioral intent for the more brand-engaged luxury guest segment Luxury Hotel Guests Significant difference between control and exposed group at a 90% confidence level
More ad exposures needed to move users from ‘affinity’ to ‘action’ More ad exposures (10+) needed to move mid-market guest segment into action Mid-Market Hotel Guests In contrast, 3-4 ad exposures needed to move behavioral metrics for the more engagedluxury hotel guest segment Luxury Hotel Guests Significant difference between control and exposed group at a 90% confidence level
For ‘in-market’ Luxury hotel guests, display ads have significant impact on both brand and intent measures Luxury Hotel Guests (travelling in next 6 months) Significant difference between control and exposed group at a 90% confidence level
Display ads also improved search intent amongst Luxury hotel guests who have not searched hotels online previously Luxury Hotel Guests Significant difference between control and exposed group at a 90% confidence level
Findings • While the display ads have helped reinforced brand perceptions for the Luxury hotel guest segment, its impact was most significant in shifting behavioral intent. • Greater efforts were however needed for the Mid-market hotel guest segment. This likely stems from the different stages of brand acceptance across segments. • Frequency of exposure requirements differ between segments: • 3-4 display exposures were optimal at impacting intent measures for the Luxury hotel guest segment (vs 10+ for Mid-market segment)
Display advertising has different impact on different customer segments Mid-Market Segment Luxury Segment Display campaign impacted luxury hotel guest segment most significantly in their action intent, while reinforcing their brand perceptions.Mid-market hotel guest segment was placed higher on the brand funnel. Display ads helped build brand affinity. However, more exposures were needed to move guests from ‘affinity’ to ‘action’. Awareness Awareness Message Association Attributes Favourability Behaviour Intent Persuasion
Implications • Think integrated – leverage both display and search tactics to drive performance goals. Display ads impact consumer behavior beyond the initial exposure. • Utilize different messaging tactics for consumers at different stages of brand relationship. • Consider frequency management strategies across sites and segments to optimize campaign objectives e.g. awareness build vs performance