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The State of Online Advertising

New insights into the beliefs of consumers and professional marketers

October 2012

Methodology

Research firm Edelman Berland conducted an online survey of 1,250 adults, 18 years or older, including 1,000 general population and 250 Marketing Decision Makers, each in the U.S.

Interviewing took place from October 8th 16th, 2012.

The margin of sampling error at the 95% confidence level is as follows:

U.S. (n=1,000): MOE = 3%

U.S. (n=250): MOE = 6%

Additionally, this survey will be fielded in the following countries:

UK

Japan

China

The data set for each country is nationally representative of the population of that country.
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Summary of Key Findings

Print magazines and while watching a favorite TV show are the two most preferred places to look at an ad

Majority of respondents use social media; over half have liked on behalf of their favorite brands, but also wish there was a dislike button for social media

68% of consumers find online ads annoying and distracting and 54% say online banner ads dont work

Likes get attention encourage consumers to check out a product, but doesnt translate to sales

5 6

44% of consumers feel advertising works better on women than men

Consumers and marketing professionals agree that marketing is valued, strategic to business and paramount to driving sales

Professional advertising is the most effective form of advertising, 27% of marketers believe that user-generated content is the most popular form of online advertising

Advertising/Marketing professionals considered in the bottom professions among consumers along with actors and dancers; not highly regarded by marketing professionals either

Most marketing is a bunch of B.S., 53% agree

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Majority of consumers and marketers believe television commercials are more important than online advertising
Consumers Marketers Online advertising is annoying, distracting and all over the place Annoying Distracting All Over the Place Invasive
47% 51% 44% 46% 50% 38% 36% 16% 11% 14% 21% 68%

Online Advertising: Effectiveness & Descriptions

T.V. More Important Than Online

Consumers Marketers

66% 49%

Creepy Eye-Catching Clever Persuasive Evil Never seen an online advertisement Other

T.V. Commercials Are More Effective Than Online Advertising

10% 7% 10% 6% 3% 2% 0% 1% 3%

22%

Q8. Please rate each of the following statements based on whether you agree or disagree. *All potential responses included in appendix Q46. Which of the following adjectives would you use to describe online advertising? (select all)
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Print magazines and while watching a favorite TV show are the two most preferred places to look at an ad

Deconstructing Marketing
Consumers Favorite Print Magazine Favorite TV Show Favorite Website Billboard Window Display Social Media Favorite Digital Magazine Apps
11% 13% 10% 4% 6% 2% 3% 2% 2% 3% 0% 1% 23% 21% 45% 55%

Favorite Print Magazines and Favorite TV shows are the two most preferred
Marketers

31%

ONLY

OF CONSUMERS ENJOY READING AND VIEWING ADVERTISEMENTS

Q30. Where do you prefer to look at an ad? Q38 Do you enjoy viewing / reading advertisements?
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Traditional media is considered to be the best for marketing and advertising

Consumers 45% 42% 36% 27% 28% 24% Marketers

Best for marketing and advertising

Traditional Media: Newspapers / TV

Traditional

Family/Friends/Coworkers
Traditional

Consumer Forums / Publications

Traditional

CONSUMERS
Traditional NET: 88% Modern / Digital NET: 40%

Company Websites
Modern / Digital

22% 23% 9% 13% 9% 11% 7% 18%

News Websites
Modern / Digital

Company Social Media Pages

Modern / Digital

Industry Publications
Traditional

Blogs
Modern / Digital

4% 9%

Q40. Which source is best for marketing and advertising? (select up to 2)

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Majority of respondents use social media; over half have liked on behalf of their favorite brands, but also wish there was a dislike button for social media

Social Media Likes and Dislikes

69%
Marketers Yes, very much Don't care 57% 66% No, not at all 4% 6%

83%
MARKETERS USE SOCIAL MEDIA
Do you wish there was a dislike button on social media sites?

CONSUMERS USE SOCIAL MEDIA

Have you ever liked something on social media on behalf of a brand or product you enjoy? Consumers 43% 35%

No

53% 54% 43% 40%

Yes

Q17. Do you use social media? Q20. Have you ever liked something on social media on behalf of a brand or product you enjoy? Q21. Do you wish there was a dislike button on social media sites?
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Consumers and marketers feel online advertising is effective; but consumers dont want banner ads

Online Advertising Effectiveness

For Consumers: Online Advertising Is Effective In The Right Taste; Just Not Web Ads
Consumers 30% Online Advertising Is Not Effective Marketers 16%

Consumers 54% Marketers 33%

Web Banner Advertisements Do Not Work

Q8. Please rate each of the following statements based on whether you agree or disagree.
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While likes may ignite product engagement, opportunity still exists to translate this to purchasing power
Consumers
None Check out the product I do not visit social networking sites Visit the product's website Visit the product's social media page Other Like' the product 'Comment' on the product

Which of the following would you do if you saw your friend like a product on social media or social networking site?

35% 29% 20% 14% 11% 6% 5% 4% 2% 2% 2% 1%

Hide that person from your social media newsfeed Recommend the product to others Purchase the product De-friend that person on social media

Q25. Which of the following would you do if you saw your friend like a product on social media or a social networking site? (multiple responses)
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2012 Adobe Systems Incorporated. All rights reserved.

Consumers and marketers feel advertising works better on women than men

Deconstructing Marketing

Advertising Works Better On Women Than Men

29% 12% 9%

44%

Advertising Works Better On Men Than Women

Both men and women feel advertising works best on children

Consumers

Marketers
28%

Women Men

79% 74%

Women Very Influenced By Advertising

32% 11% 13%

Men Very Influenced By Advertising

Q8. Please rate each of the following statements based on whether you agree or disagree. *All potential responses included in appendix Q10. To what extent do you think each of the following consumer groups is influenced by advertising? Top Box Very Influenced
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Marketing is strategic, and heavily contributes to sales impact

Consumers Marketers

Best for Business

Is marketing strategic?

94% 98%

Does marketing drive sales?

94% 99%

Does marketing create brands?

76% 93%

Should marketing define future products?

46% 67%

Q13. Is marketing strategic? Q14. Does marketing drive sales? Q15. Does marketing create brands? Q16. Should marketing define future products?
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While professional advertising is the most effective form of advertising, user-generated content is increasingly appealing
Consumers
36% 49%

Deconstructing Marketing
Marketers

Advertising Created By Professional Marketers

Consumer/User-Generated Content There are no good ads

1% 7% 7% 6% 3% 1% 6% 11%

28% 27% Rise of User-Generated Content

Social Media Endorsements Outdoor/out-of-home advertising There are no effective ads Email Marketing Paid Search Listings

4% 5% 3% 7%

Q12. Which type of promotion is most effective? (please select one response)
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Advertising/Marketing considered bottom four to consumers; not highly regarded by Marketing Professionals either

Professions Valuable to Society

Consumers Marketers

92% 91% 72% 61% 65%

88% 91% 68%

35% 23% 13% 13% 16% 13% 15% 11%

Teacher

Scientist

Programmer/ Social Worker Engineer

Advertising/ Marketing

Actor/Actress

Dancer

PR Professional

Top 4 Professions Most Valuable to Society

Least 4 Valuable Professions to Society

*Consumer emphasis

Q1. Which profession provides the most value to society? Top 2 Box 4,5 (not depicted: Graphic Designer, Artist, Writer, Singer, Politician, Lawyer, Banker, Cleaner, Chef, Architect
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Consumers want to be told a story

A video is worth 1,000 words

Agreed

Advertisements should tell a unique story, not just try to sell

User product reviews are the best source of truth

In-Store experiences trump online experiences People buy what celebrities wear / like Web Banner advertisements do not work Most marketing is a bunch of B.S. Beautiful advertising is more effective Online advertising is creepy and stalks you Online advertising isn't effective No one watches TV commercials anymore All "likes" are good in social media Every brand needs a funny viral video

Television commercials are more effective than online

The Super Bowl is the best advertising opportunity of the year

Advertising works better on women than on men

73% 67% 67% 67% 66% 57% 57% 54% 53% 51% 46% 44%

Advertising works better on men than women

30% 27% 22% 19% 12%

Q8 Please rate each of the following statements based on whether you agree or disagree:
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Consumers pay far less attention to ads than they do the speed limit
Consumers Posted Speed Limits Spouse or Significant Other Weather Report Dentist Boss Parents Kids Office Staff Meetings Text Messages Teacher TV Commercials Billboards Radio Ads Celebrity Gossip Online Ads Ads in Apps / Games

Attention
74% 69% 63% 54% 52% 51% 46% 45% 38% 31% 26% 18% 16% 15% 11% 7% 5%

Print Ads in Magazines / Newspapers

Q43. One a scale of 1-5 where 5 is full undivided attention and 1 is no attention at all, how much attention do you pay to each of the following? Top 2 Box 4,5
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2012 Adobe Systems Incorporated. All rights reserved.

 2012 Adobe Systems Incorporated. All rights reserved.