Effectiveness of B2B Online Display Advertising Questioned
According to a new report from Forrester, summarized by MarketingProfs, only 13% of B2B interactive marketers say they have increased online display budgets in 2011 relative to 2010 levels, in large part due to perceptions of ineffectiveness.
71% of B2B marketers surveyed say they used display advertising during the fourth quarter of 2010, whereas 86% of B2C marketers reported doing so.
Attitudes toward online display are negative, particularly toward ad exchanges, DSPs (demand-side platforms), and ad networks:
- 27% of B2B marketers say they anticipate increased effectiveness of display advertising via exchanges over the next three years
- 21% expect increased effectiveness of display media via DSPs over the next three years
- 16% expect increased effectiveness of display ads via ad networks over the next three years
Given lengthy and complex purchase cycles, says the report, most B2B marketers focus display efforts on increasing brand awareness, lead generation, reaching key target audiences, and driving direct sales.
Only 20% of marketers focus display efforts on increasing site visits (e.g., using campaigns to drive clicks to lead-securing and nurturing opportunities such as webinars, whitepapers, and virtual events). Still fewer marketers focus display efforts on driving brand favorability (17%) and customer lifetime value (14%), observes the report.
The effectiveness of Facebook ads has always been a big question-mark, with some data suggesting that the ads just don’t perform well.
According to Sharon Terlep, Shayndi Rice, and Suzanne Vranica of the Wall Street Journal, GM decided to pull the ads after meeting with Facebook executives and coming away unconvinced that they were effective.
GM currently spends $40 million a year on its Facebook presence.
Importantly, however, only $10 million of that spending goes went to Facebook.
The other $30 million goes to pay ad agencies and others to create content for Facebook and maintain GM’s pages and presence on Facebook.
In other words, GM has just killed the only part of its Facebook advertising presence that it was paying Facebook for.
Here’s the key section of the WSJ article:
Asked about the move, GM marketing chief Joel Ewanick said the auto maker, “is definitely reassessing our advertising on Facebook, although the content is effective and important.” Content refers to the unpaid Facebook pages many companies use to promote their products.
GM, started to re-evaluate its Facebook strategy earlier this year after its marketing team began to question the effectiveness of the ads. GM marketing executives, including Mr. Ewanick, met with Facebook managers to address concerns about the site’s effectiveness and left unconvinced advertising on the website made sense, according to people familiar with GM’s thinking.
Importantly, GM’s skepticism about Facebook is not due to a skepticism about digital advertising overall. GM spends about $300 million a year on digital brand advertising–just not on Facebook.
The growth of Facebook’s advertising business has slowed sharply in recent quarters, and the business achieved growth of only 37% year over year in Q1.
Advertiser skepticism may be one reason for this.
Although some people are convinced that Facebook will eventually be a bigger company than Google, there is very little evidence to support this contention. At the same time, there is much to suggest that this conclusion is simply unwarranted:
- Facebook is growing significantly more slowly than Google was at this stage of its development
- Advertising on Facebook, however well-targeted, is like advertising on walls at a party (people are there to socialize, not buy stuff). Advertising on Google, meanwhile, is advertising to people who have explicitly expressed interest in your product (See: “Like Hell Facebook Is Killing Google“)
Facebook just rolled out a suite of new impressive-looking ad products, which will include large ads in users’ news feeds. These new units seemed to be well-received by advertisers, at least to the extent that they were excited about hearing more about them.
But GM appears to have gone to the trouble to hear a lot about them–and still came away unimpressed.
The loss of a $10 million deal obviously won’t dent the ~$5 billion of revenue Facebook is expected to generate this year. But the loss of lots of clients like GM will begin to dent it. And for a company whose growth rate is already decelerating, there’s no way this can be construed as good news.
It uses the same principle as your Brita filter to purify water, but Black+Blum’s Eau Good bottle does it with way more style using a stick of charcoal that’s always visible through the bottle’s lovely curves.
Known as Binchotan, the black stick is a type of carbon made from tree branches, which the Japanese have been using to soften and purify water for centuries. It can even reduce the amount of chlorine in your H2O, though the passive process does require quite a few hours to work its magic. So it’s recommended you leave the Eau Good bottle sitting overnight before drinking. We recommend staring at the bottle while it works.
To prevent the charcoal from floating to the surface, the $20 plastic bottle has been designed with a slight bulge on the side, keeping the $4 Binchotan stick submerged at all times. It’s promised to work for up to 6 months before it needs to be replaced, while a quick 10 minute boil at the 3 month mark will help ensure its effectiveness. And when it does stop working, you can of course just toss the charcoal stick in your garden, where mother nature will recycle it for you. [Black+Blum via bookofjoe]
There’s fascinating disconnect between which advertisers the media thinks did well on last night’s Super Bowl and what the research says was effective.
But it didn’t even show up in the Ace Metrix Top 10. Ace Metrix measures a panel of 500 consumers who watch ads and rate them for effectiveness. That research says Doritos’ sling baby ad won the night.
It was also a big night for dogs. Volkswagen’s much anticipated follow-up to its little Darth Vader spot from last year used an obese dog getting in shape to gets its revenge on a VW it wanted to chase down the street (and then somehow ended up in the Star Wars cantina scene).
Skechers used a dog — Mr. Quiggly — in a greyhound race.
As did Bud Light, whose appeal with Weego, a rescue dog, was heartwarming.
So did Doritos, in another comedic appeal revolving around the whole Dogs v. Cats war.
Chase ran an ad that for the life of me I can’t recall even though I am paid to remember these things. And TaxACT’s ad, featuring a kid who urinates in a swmming pool, was disgusting.
Later today — much later — we’ll take a look at how B.I.’s readers judged the ads with the results of our Super Bowl ad readers’ poll. Vote early, and often!
- VOTE HERE: For The Best And Worst Super Bowl Ads
- SUPER BOWL ADS LIVE BLOG: Instant Reaction From Our Man With The Nachos!
- Here Are All Of This Year’s Super Bowl Ads
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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