Online branding refers to the concept of building and maintaining a brands identity using online tools (for example advertisements, games etc). The value of the brand is also known as brand equity – the perceived value of a brand in the customer’s eyes. In relation to online advertising, the branding concept recognises the long term value of using online tools to build a brand online rather than simply measuring their success in terms of sales figures and CTR (Click Through Rates).
Initially the internet was viewed by businesses as a direct sales tool, a call to action similar to POP (point of purchase) displays in stores that urge buyers to make on-the-spot purchases. It was perceived that the success of online marketing and advertising should be measured by click through statistics (Miletsky, 2002), with many advertisers paying PPC (Pay Per Click) or PPP (Pay Per Purchase) rates which reward host sites each time a viewer clicked through and/ or made a purchase.
But a revolution in thinking has moved businesses to consider that the branding opportunities offered by online marketing and advertising are worth more in the long run. CPM (Cost Per Thousand), a newer model, pays the host for the number of ‘impressions’ (views). The more people see the page, the more the ad is viewed and the more money the host makes. All three models (PPC, PPP and CPM) are common online.
However the future may be a different story as some now believe that “people will remember animated ad banners and the measurement of their CTR as merely the first generation of online marketing�? (Nashed, 2002).
The online branding concept advocates that the real value of online advertising and related promotional activities is gained from brand recognition (Miletsky, 2002). In a 2002 study, the new wave of interactive advertising (utilising technology such as that offered by Flash and Dynamic HTML) was found to increase recall and positive attitudes towards a brand by up to 40% (Nashed, 2002).
Miletsky, J. (2002) Planning, Developing and Marketing Successful Websites. Boston: Thomson.
Nashed, A. (2002) The Promise of Interactive Media, Pharmaceutical Executive, March 2002, 16 – 20
Stephanie Hulett 22:20, 27 Oct 2005 (EST)
