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June 27, 2009

Forbes Digital Marketing Effectiveness Study

Forbes Survey Examines Effectiveness of Digital Marketing Campaigns | Ad Operations Online: "Forbes released results of its “Ad Effectiveness Survey,” conducted among senior marketing executives during February and March 2009 to better understand their behaviors and beliefs regarding digital marketing, and to forecast where the major areas of growth – and weakness – will be over the next six months.

Among the study highlights, when it comes to influencing brand perception, the most effective tactics were site sponsorships and pay-per-impression programs on digital publications. Ad networks and pay-per-click-search were identified as the least effective tactics. For garnering conversions, search engine optimization (SEO), pay-per-click and e-mail tactics were seen as the top three most effective tools, while ad networks, video ads and “other” tactics were cited as least effective.

“Ad network spending is all about demand fulfillment while direct-to-publisher display is much aligned with the traditional advertising goals of demand creation,” said Forbes.com President and CEO Jim Spanfeller. “It is interesting to see the shift of dollars toward demand creation as we see signs of life in the economy.”

Marketers are measuring success as follows:

* 82% say they are using conversions or sales data
* 55% use registrations
* 51% use click-throughs
* 51% use impressions
* 39% use search rank
* 31% use brand perception
* 16% use customer feedback
* 14% use reach to target

When respondents were asked about their expected changes in digital media tactic allocation over the next six months:

* Overall respondents plan to allocate a higher percentage of their digital media dollars to viral marketing (42%) and SEO (40%), while 53% stated they would spend less on Ad networks.
* Behavioral Targeting was the tactic to see the least change (57% plan to allocate the same).
* Among $1MM+ Digital spenders, Viral Marketing (54%) and SEO (50%) will also see expected increase allocations, with Ad networks seeing the highest percentage of expected decreases at 52%."