10 Figures Forecasting Brand and Direct Response Online Advertising in 2013

By eleventy marketing group

Online brand advertising looks to get a bump in 2013There are a lot of businesses and nonprofits out there. So many, in fact, it’s increasingly difficult for consumers to keep track or distinguish them from one another. Therein lies the power of branding. No matter what your product, service or cause, it’s much easier to draw attention to it when people are familiar with your brand; when they know who you are and what you’re about.

Think Apple, Amazon or Target; Goodwill, Red Cross or Girl Scouts of America. You know what you get from these brands. You clearly understand what they do and the value they offer. There is power in having a brand people recognize and understand. That power trickles down and impacts all of an organization’s sales, marketing and advertising efforts.

Brand Marketing is focused on informing people who you are and what you do (instead of promoting a product/service or prompting an action). A great example is the recent “brilliant machines” marketing from GE, which paints the company as a versatile technology leader and innovator.

2013 Online Advertising Performance Outlook

A new survey from Nielsen revealed companies expect to spend more on brand marketing in 2013 than in previous years. The Nielsen 2013 Online Advertising Performance Outlook details the forecast for brand and direct response online advertising this year, and provides some revealing insights.

Direct response vs. brand advertising graphic from the 2013 Online Advertising Performance Outlook

Here are some key stats from the 2013 Online Advertising Performance Outlook:

Brand Advertising

63% of marketers expect to spend more on brand advertising in 2013

1 in 5 advertisers reported increased spending on brand advertising would exceed 20% this year

70% of brand marketers will increase their usage of social media in 2013

69% said they would use more mobile advertising this year

64% said they would be increasing their usage of video advertising 

What would increase marketers’ online brand spending?

69% said more clarity on the ROI

68% said they want to be able to verify the impact of the advertising on things like consumer awareness

42% want to verify the ad was delivered to the right audience

Direct Response

51% of advertisers said they would be increasing their direct response ad spending in 2013

1 in 4 advertisers reported that direct response spending will increase by over 20% this year

Increased Online Spending & Mixed Approach

So what does the 2013 Outlook tell us? The survey results show an expected increase in online advertising spending across the board. 61% of brand respondents said they planned on increasing their budgets, while only 11% planned to see a decrease. A quarter planned on keeping their budgets steady.

The results also signal that, when it comes to online advertising, organizations are taking a mixed approach of brand marketing and direct response. Certainly if a consumer has more awareness of a brand, their chances of responding to—or at least listening to—a direct response offer from that company increase. So, when implemented effectively, the two approaches can actually work hand in hand.

Another reason for the bump in brand-focused ads may be an increase in ways of measuring ROI and impact on the Web. With the continued development of methods for measuring the value of brand marketing, expect more companies to focus spending in this arena to increase brand awareness and boost overall sales in the coming year.

About the 2013 Outlook

For the 2013 Online Advertising Performance Outlook, Vizu, a Nielsen company, surveyed 287 senior brand leaders, 176 agency executives and 152 publishing representatives. Get the full report here.