How Brand Perception is Influenced By Advertising Incentives

In a study released Monday 9-26-2011 by SocialVibe, 91% greater interaction and 38% better brand perception were achieved by combining branding messages with ad incentives.

The study also showed that 48% of participants reported that while they initially opt-in to engage with a brand for the incentive, they stay and pay attention to the brand message.

SocialVibe calls the strategy “value-exchange brand advertising” and defines it as ads that ask for a consumer’s attention in exchange for something they want, such as virtual currency for social games or making a donation to a charity.  It differs from offer-based, cost-per-action (CPA) advertising, which requires a sign-up or purchase of something.

The study, which gathers data from more than 30,000 survey respondents, set out to determine if and why incentives prompt people to engage with the advertisements, how they affect consumer perception of the brands, and whether they influence people to visit the company’s Web site or tell a friend about the offer. Participants interacted with ads from U.S. brands across financial services, CPG, entertainment, e-commerce and technology categories between June and July of 2011.

Engaging with the ad increased the odds that the consumer would purchase the product. For instance, when survey participants were asked about their intent to purchase a brand, another CPG product in the study showed an increase of 32 points, or a 110 percent increase. A similar increase was seen in the entertainment category, where the intent to view a specific television program rose 32 points.

The study demonstrates that incentives through ads drive Web site and in-store traffic, as well as purchases and conversions. Consumers who gain a satisfied view through incentives tend to visit the brand’s Web site more often and 36% are more likely to shop for brand-related items at physical store after interacting with the ad.

As part of the study, KN Dimestore, a subsidiary of Knowledge Networks, demonstrated how consumers took the opportunity to earn virtual currency to Zynga game players in exchange for interacting with a movie studio’s ad. Consumers who had interacted — as well as not interacted — with the ad, were asked if they had gone to see the movie in theaters. The study revealed 32 out of every 100 people who interacted with the ad bought tickets and saw the movie.

Excerpts credited to Laurie Sullivan of Mediapost Publications

Share This & Great Things Will Happen!

9 Responses to: How Brand Perception is Influenced By Advertising Incentives

  1. Brielle says:

    What an insight review, I love your site.

  2. diablo 3 says:

    I received great data from the website. Switchhat rocks!

  3. Anonymous says:

    You really make it seem so easy with your presentation but I find this matter to be really something which I think I would never understand. It seems too complicated and very broad for me. I’m looking forward for your next post, I’ll try to get the hang of it!

  4. Duncan W. says:

    This is a very compelling program, and I will be taking advantage of it!

  5. Leeanne O. says:

    It’s a shame you don’t have a donate button! I’d definitely donate to this fantastic blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to new updates and will share this website with my Facebook group. Talk soon!

Leave a Reply