• by Masha Geller , February 10, 2003

The Interactive Advertising Bureau released the results of their latest Cross Media Optimization Study (XMOS) today, which found that 1) using a static budget, optimal results are achieved when online advertising is 10-15% of the marketing mix; 2) adding online advertising expands reach and coverage and 3) increasing online allocation produces better overall results by increasing the ROI.

Of course, these are ideas the IAB and the whole of online advertising industry have been pushing for quite some time – with definite success - but the study offers some concrete data, which seems to be the only way to lure big advertisers to the web.

The study is based on advertising campaigns from Kimberly-Clark's Kleenex Soft Pack tissues and Colgate-Palmolive's Colgate Total toothpaste, which ran for six to eight weeks and involved television, print, and online advertising.

Among other findings, the Colgate "purchase intent" data demonstrated that online advertising should be 11% of the overall mix to best achieve marketing goals instead of Colgate's current 7%. Specifically, dedicating 11% of the overall budget to online advertising generated an increase in "purchase intent" to 4.3% as opposed to 3.4% purchase intent from using offline media only. In addition, Colgate's data showed that it cost 23% more to encourage consumer purchase using TV alone compared to using TV in combination with online.

The research from the Kleenex campaign underscores the ability of online advertising to supplement television's reach and coverage to normally hard-to-reach consumers. More specifically, when targeting those not reached or only lightly covered by TV, the combination of online and magazine advertising was the most effective for boosting "aided brand awareness," "Brand Image," "Purchase Intent" and "Bundled Trial Intent." The IAB recommended Kleenex increase its online spending from 3% to 10% of their overall mix for optimal results.

Brad Santeler, who’s in charge of Interactive Services at Kimberly-Clark, was clearly impressed with the findings, saying the study shows that “without increasing the media budget, we can simply reallocate media dollars to better reach our core audience by leveling out our delivery and, at the same time, better impact brand attitudes."

Over the next few months, the IAB expects to complete similar studies with AstraZeneca, Universal Home Video and ING. We'll keep you posted.