Making contact
Perpetual uses television advertising but only for branding, While it displays its URL on the commercials, very few people respond, says Michael.
He says the URL is only included to provide credibilityâ€"to give a point of contact, because the commercials do not include a phone number.
-We put everything on our press ads including phone numbers, e-mail address, and the URL and about half of the responses come through the Internet. We get more contact through the Internet than over the phone but the phone callers are better leads."
He says the key with any advertising is to know who you are targeting. -We have identified a particular segment of the market we call savvy clickers and are targeting people who use the Internet quite frequently so our executions are oriented towards that."
The company tracks the response in partnership with its advertising agency and an external supplier called RNR, who looks after its prospect database.
-Everyone measures different things at different times. If someone goes to a Web page and enters their details they are automatically downloaded to the database. So RNR measure that part of it, while we count the actual hits to the particular pages so we can measure they actual dropout rate," says Michael.
Perpetual found that it was cheaper to do their own testing and experimentation than to pay for other people's research, which was scarce and not always relevant.
Finding the revenue source
A recent survey by Australian research company RedSheriff, found that online advertising was currently a primary source of Web site revenue and had become a significant online industry. Despite this, questions were regularly raised over the effectiveness of online advertising and industry understanding, of which many aspects remain incomplete.
The research showed that two thirds of Internet users were exposed to advertising most often through their TV consumption and that TV was perceived to have an advantage over other mediums because of its use of visuals, movement and sound.
It was also capable of inducing a much higher emotional response than any other mass media. Fifty-three percent of Internet users surveyed said they had gone online and visited Web sites after viewing a TV commercial.
The report said consumers perceived different media as having particular communication strengths. Television was seen as being capable of generating emotional response whereas Internet advertising was appreciated for its interactivity and ability to link to detailed information. Consumers expected elements of consistency between online and offline advertising for a particular brand or product. James Burge, Australasian research director for RedSheriff, says consumer reach and advertising effectiveness can be maximised through an integrated online and offline approach.
-Each medium has its communication strengths and should be employed to leverage on these to meet brand and product communication objectives. Synergies arise from employing different media for their strengths and where possible driving consumers between them."
Group participants in the RedSheriff study generally recalled seeing advertising on Web sites, the formats and creative of the advertising, but failed to remember brand names or product information immediately after viewing. Overall, users most often recalled online advertising that was highly noticeable, relevant or entertaining. It was more likely to be recalled where the ads were positioned high on the page; they were for well known brands; the logo was prominent; there was creative use of images or graphics; they included movement and animation; there was an element of interactivity and there were relevant brand or product messages.
The study found that while many online ads performed on some of these, ineffective execution of one of these elements could be enough to dramatically reduce the apparent effectiveness of a campaign.
It found that the mention of e-mail advertising prompted unpleasant memories and negative perceptions for many, though some recounted more positive experiences and attitudes towards relevant opt-in e-mail marketing such as newsletters.
-Banner blindness", a phenomenon recently identified in the US, also appeared to affect Australian Internet users. Users said they usually -zoned out" and ignored information from the banner area as it was expected to contain advertising.
Pop-ups received overwhelmingly negative reactions, though they had the greatest level of awareness and, in some cases, had been found to be relevant or entertaining. However, competitions and surveys were frequently recalled due to the involvement required on the part of the user and attracted a lot of enthusiasm from some users.
The research also looked into new advertising and media technologies such as SMS advertising and promotion and Interactive TV. Only one in five Internet users were aware of SMS advertising and promotion, 23 percent of them were receptive to the idea. Even fewer had considered the implications of interactive TV advertising but those who had reacted favourably to the concept and could see benefits in being able to immediately respond to advertising that was of interest.
While the RedSheriff study showed up the growing incidence of banner blindness, properly crafted banner campaigns can work if the product is right.
Earlier this year Coca Cola tested banner advertising through a campaign in the Netherlands.
Coca Cola's experiment involved a Shockwave advertisement that ran across four Dutch Web sites in the 24/7 Media Europe advertising network and involved a survey of 7600 people. The aim was to drive people to a microsite where they could register for a Coca-Cola card. While 26 percent of those surveyed said they didn't like banners, more than 20 percent recalled seeing the banner after only a single exposure. Of those 60 percent found it -striking, clear and up-to-date" while 80 percent of respondents thought the campaign was consistent with the Coca-Cola image.
Closer to home, ACNielsen.consult's Australian Online Advertising Effectiveness Study 2001 also concluded that online advertising worked in increasing brand awareness, attracting prospective purchasers and driving people to relevant Web sites. But it found other forms of advertising also worked.
Whether you experiment as Perpetual did, rely on research by the likes of RedSheriff or ACNielsen.consult or employ an advertising or public relations agency, it is clear that no single medium can offer a total solution for driving traffic to your site. However, if you get the fundamentals right, have compelling content and know your target market you can successfully drive a lot of traffic in the right direction.
