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Studies See Growth and Effectiveness in New Media

Jun 25, 2008  •  Post A Comment

Use of new media is increasing, but is newer necessarily better?
A new study from GroupM tracking interactive media projects says new media will amount to 15% of global advertising in 2009.
In addition, Integrated Media Measurement Inc. (IMMI) released a white paper at the Advertising Research Foundation’s audience measurement meeting, held June 24-25 in New York, that provides hard measurements of the effectiveness of multimedia campaigns.
According to GroupM, interactive media accounted for 11% of all spending last year, with the biggest gains recorded in the U.S. and Western Europe. The Internet was the main recipient of the increasing interactive ad volume.
“There’s little doubt that interactive channels are increasingly vital to delivering reach and engagement, and will only become more so in the coming years,” said Rob Normal, global CEO of GroupM Interaction. “This report sheds considerable light on how best to use these platforms and how marketers can get the most out of their investment in them.”
Findings in the GroupM report, called “Interaction: Addressable, Searchable, Social and Mobile,” included the notion that growth in Internet use will continue for a generation or two, as people who are now under 25 carry their media habits into middle age and beyond. Also, investment in interactive advertising on the Web will rise as broadband penetration does.
People are spending more time online, as well as more money. The mean sum spent shopping online in 2007 was estimated to be $471 per person annually. Denmark topped the list of 35 countries studied by GroupM, with online spending above $1,000.
Marketers assume or have seen some anecdotal evidence that multiplatform campaigns are a better way to get consumers to buy their products than using one medium alone, including TV. But while media outlets scurry to coordinate digital and other outlets for clients, IMMI said there has been little real proof that these 360-degree media campaigns are a big upgrade over more traditional advertising.
The effectiveness of any media is tricky to measure because it is hard to link exposure to commercials with specific purchases. Ironically, IMMI has focused on a product that it can easily measure consumption of using the same system it used to measure advertising exposure: television programs.
IMMI’s sample is 3,000 people age 13 to 54 in six large markets: New York, Chicago, Los Angeles, Miami, Houston and Denver. Panelists agree to carry around cell phones that listen for the audio signatures of television and radio programming. Those signatures are sent to IMMI’s central database.
So the device that records exposure to commercials also picks up what programs are being watched.
IMMI said it looked at 13 prime-time television shows during the 2006-07 season, nine new and four returning. Nine of the shows ran enough ads on radio, in theaters, online and on TiVo to be significant, and six of those showed a significant improvement in tune-in among people who were exposed to the ads.
In one example, ratings of a show on cable rose 4.5% among viewers who were exposed to TV spots and 17.8% among viewers who saw ads on TV and other media. In another example, ratings were up 4.9% among viewers who saw TV promos and 15.1% among viewers who saw a promo on TV as well as on other platforms.
“Until now, the value of a multiplatform advertising campaign was thought to be just an increase in reach,” said Amanda Welsh, head of research of IMMI. “This new data shows the increase in reach is real, but the impact of advertising on multiple platforms on conversion and getting consumers to engage in the target behavior is potentially more important.”
IMMI was able to do a similar analysis of the effectiveness of movie campaigns. It found that 11% of the people who saw ads for a superhero movie attended after being exposed to a TV ad and 27.2% went after seeing ads on multiple platforms. For an adventure comedy, 5.2% went after seeing TV ads, compared with 14.4% of those exposed to a multimedia barrage.
While the frequency of ad exposure also played a role in the effectiveness of the campaigns, the IMMI paper said, the data show “multiple-platform exposure has greater impact than single-platform exposure.”
It added, “In each case, the data showed that exposure on television-only drives less of the target behavior than exposure on another platform in addition to television.”
The paper concluded, “Because the result is consistent across the board, we conclude there is value in constructing multiple-platform campaigns that goes well beyond simply maximizing reach.”
As it builds out its technology to track consumption of retail products, IMMI said it anticipates issuing future papers that expand upon the themes covered in the current paper.

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