Online advertising shows shift from direct response to branding focus
Published September 28, 2010
While many digital marketing campaigns are focused on acquiring direct responses, such as clicks and sales, companies are increasingly using the online platform to reinforce their brands and gain exposure.
Research firm eMarketer observed in 2009 that 35.2 percent of companies' digital marketing budgets were allocated to brand building. However, eMarketer expects this number to grow 6 percent to 41.9 percent by 2014.
Meanwhile, eMarketer anticipates direct response expenditures will decline by a similar amount, from 64.8 percent last year to 58.1 percent in 2014.
"Many of the largest advertisers have shown little interest in the internet ads often most suited to branding," David Hallerman, eMarketer senior analyst, told AdWeek. "But that trend is changing, and with it the spending focus of many brand marketers."
The key to successful brand marketing, says Hallerman, is leveraging paid, owned and earned media. Marketers should integrate all three elements to fully engage consumers and amplify their brand messages.
Several companies are using multichannel marketing campaigns to build or expand their brands, such as Ethan Allen. The firm recently launched a mixed online and print initiative that targets younger consumers.