Study: Online Branding Power On The Wane

More bad news for Web advertising: A research firm says that the more big brand advertisers spend online, the harder it becomes for them to their messages across. Clickz reports on a study Dynamic Logic that argues that the effectiveness of Web ads have dwindled over the past few years, as consumers are hit with a barrage of online messages.

One set of representative numbers:
Dynamic Logic says that consumers who were exposed to online ad campaigns between Q4 2004 and Q3 2005 were 4.3% more “aware” of a given brand message than those who didn’t see the Web ads. But in 2006, that margin fell to 3.5%; last year it fell again 2.5%.

The research company provides a slew of data that basically says the same thing: Marketers are spending more online for less impact. But Ian Schafer, CEO of Web ad shop Deep Focus, thinks it doesn’t have to be that way. His suggestion: Make smarter ads: “The medium isn’t working because each year the chasm between users and advertisers grows greater. The more advertisers try and outspend each other to get frequency, the more people tune out.”

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