New Market Research: Digital Print Advertising Effectiveness vs.

Traditional Online Display Advertising

New research from Format Dynamics in conjunction with Dynamic Logic and a Major
High Tech Brand assessed brand impact of Digital Print advertising in comparison to
traditional online display advertising. Format Dynamics’ CleanPrint® product
optimizes pages printed from the Internet. This research study shows that Digital Print
advertising can be more impactful than standard online display campaigns.

Executive Summary
A Major High Tech Brand partnered with Format Dynamics on assessing brand
effectives against a branding campaign targeted at business decision makers. The
Digital Print campaign clearly resonated with the Brand’s target audience, as did the
online display campaign.

There was a significant increase in brand and ad awareness among those exposed to
the Digital Print campaign. Most importantly, there was a marked increase in
purchase consideration among those exposed to the Digital Print advertising,
significantly beating its online display counterpart.

Nearly all key brand metrics increased more among those exposed to the Digital
Print campaign versus those exposed to the online display campaign with the
exception of online ad awareness, which was comparable.

Methodology
Format Dynamics partnered with Dynamic Logic and a Major High Tech Brand to
understand the brand impact of Digital Print ads. The Brand ran a Digital Print ad
campaign on the Format Dynamics network from March 1 through March 28, 2010.

Concurrently, the Brand ran an online display campaign with similar messaging
across contextually relevant websites. Those who printed the pages with the Digital
Print ads embedded were retargeted online and served a survey invitation through
one of Format Dynamics’ sites. There were 303 respondents who were exposed to
the Digital Print ad and 1,114 respondents in the control cell. The control
respondents were recruited from the Format Dynamics network, but were not
exposed to the Brand advertisements.

Dynamic Logic conducted the same survey among those exposed to the online
display campaign. There were 1,506 respondents who were exposed to the online
display campaign and 1,716 control respondents recruited from the same websites.

Note that in this study the comparison to online banner media is for brand name
and messaging only, as there were some obvious differences in creative design and
placements. Also, higher awareness baselines for online media do not allow for
100% conclusive comparison. Lastly, the online banner ads were more awareness
building, while the digital print media creative was skewed for demand generation.
Net, apples to apples comparisons are often difficult in real world environments.

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 New Market Research: Digital Print Advertising Effectiveness vs.
Traditional Online Display Advertising

Results
Overall Campaign Results: As the graph below shows, unaided brand awareness
increased
significantly among Figure 1 DELTA change between Exposed Group & Control
Group in Key Brand Metrics
those exposed to the
Digital Print as well 18
15.8 *
as the online display 16
Online Display
campaigns. 14
However, the delta 12 Digital Print2
in brand awareness 10 8.4 *
was much higher 8
among those 6 5.0 *
4.4 *
exposed to Digital 3.4
4
Print ads, 16 point 1.6 1.6 1.4
2
increase vs. 4 point
among those 0
exposed to online Unaided Brand Aided Brand Online Ad Purchase
display ads (to be Awareness Awarness Awareness Consideration
clear, that change
would be a 16 percentage point increase, which for example could be from 50% in control
to 66% in test cell).

Purchase Consideration also increased among those exposed to the Digital Print
campaign by over 8 points. Directionally, for online display there was an increase
in purchase consideration among those exposed, however, this increase at 1.4
points was not statistically significant. Directionally, the study also saw increases
in aided
brand
awareness
and online
ad
awareness
among
those
exposed to
the Brand’s
Digital
Print ads. 1

Dynamic
Logic has

1 Statistically significant differences between control and exposed group at 90% confidence level

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 New Market Research: Digital Print Advertising Effectiveness vs.
Traditional Online Display Advertising

been measuring the brand impact of thousands of digital ads over the past nine
years. As seen in chart, both the Digital Print media as well as the digital display
campaign outperformed the average online campaign for technology products
across all key metrics.

Importantly, Digital Print ads increased purchase consideration more than 93% of
the technology campaigns that Dynamic Logic has ever measured.

Our preliminary thesis is that Digital Print ads are highly effective for four reasons.
They are served in an uncluttered environment and only to content the user has
selected for printing. Also, printing behavior would likely deliver multiple exposures
of the Digital Print ad. And finally, recent research indicates that online ads do not
always show up in the visible part of screen, therefore suggesting that on an
impression by impression basis, online ads would not be seen as often as Digital
Print ads, and yet both are ‘measured’ impressions. Therefore, the research herein,
in conjunction with the thinking above suggests that Digital Print quite possibly is
more impactful that online but more study is encouraged.

Targeting
Format Dynamics also effectively reached Role in Decision Making
decision makers. The majority of consumers
who were exposed to the Digital Print
campaign played a role in the decision
making process within their companies. With Do Not Primary,
this new, unique ad format, the Major High play a 34%
role,
Tech Brand not only reached the target 46%
audience, but also influenced their attitudes.
Play a
role,
As the chart to the right shows, 54% of those 20%
who responded were involved in the product
decision.

Impact of Frequency
Frequency of Ad Exposure
Due to the frequent printing habits of Internet
printers, the study showed that the majority
of Internet printers could be reached multiple 1, 17%
times during the campaign. The majority of
respondents were exposed to the Digital Print 4+,
48%
ad multiple times, with half seeing four or
more ads.
2-3,
35%
More specifically, although the study showed
an increase in brand awareness with only one
digital ad exposure, 2-3 exposures seemed

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 New Market Research: Digital Print Advertising Effectiveness vs.
Traditional Online Display Advertising

optimal in driving shifts in purchase consideration for this particular

product/campaign.

As is shown in the following chart, Digital Print effectiveness appears to be affected

by frequency. Whereas one impression was more than enough to move some brand
measures, one impression had poor performance. The sweet spot appears to be in
the 2-3 range. Again, more research is encouraged in this area.

Impact of Frequency on Key Brand Metrics in Digital Print

1 2-3 4+
Metrics
  

Unaided Brand Awareness First Mention 2 +22.0* +19.8* +10.4*

Unaided Brand Awareness Any Mention +18.7* +18.6* +12.8*

Purchase Consideration -1.8 +13.1* +8.7*

Sample Size c=1142; e=53 c=1142; e=105 c=1142; e=145

Format Dynamics and Dynamic Logic look forward to partnering with other
marketers in conducting research around the Digital Print advertising.

###

2 * Statistically significant differences between control and exposed group at 90% confidence level

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 New Market Research: Digital Print Advertising Effectiveness vs.
Traditional Online Display Advertising

Digital Print Background

There are 75MM Internet printers in the United
States, and 18MM heavy Internet printers (those
who print 7+ times weekly). On average, they
print from the Internet six times weekly. 3

Internet printers are also more difficult to reach

through traditional media as they spend 3.5
hours less time weekly watching TV than the
general Internet population. They tend to share
their printouts with others as half of Internet
printers regularly pass along a news story that
they have printed from the Internet.

Format Dynamics’ unique CleanPrint product

provides nicely formatted printed Web Content
(see sample print out with Ad to the right).

Participants:
Dynamic Logic’s AdIndex Methodology: AdIndex uses a control-exposed methodology that measures the branding value of
online ad campaigns as they run live across a site or set of sites. Two groups are simultaneously sampled and their responses
compared. One group has seen the creative campaign under study, while the other, the Control group, has not. The
simultaneous surveying eliminates outside sources of influence such as news items, seasonality, or differing media exposure
from causing different attitudes between the two groups. Since the only statistical difference between the Exposed group and
the Control group is the presence of the creative, we can attribute a lift in measures of branding to the campaign creative.

MarketNorms Normative Comparison

Dynamic Logic’s MarketNorms database contains results from over 5,240 AdIndex studies and provides benchmarks of
campaign performance for each of the standard brand metrics. Performance may be compared against Overall norms (includes
all studies) or against category norms (such as B-to-B campaigns for computers and office equipment).

About Format Dynamics

Format Dynamics is the first company to extend digital advertising to the printer and into the hands of users. Its technology
improves the way people experience media across platforms, creates targeted opportunities for advertisers, and provides
incremental revenue for publishers. Format Dynamics customers include over 200 leading publishers including Time Inc.,
Hearst, and Disney. The Denver-based company is privately held. For more information visit www.FormatDynamics.com.

For more information, contact:

Format Dynamics Dynamic Logic
Ethan Holien | Chief Executive Officer Carla M. Verder | Account Supervisor
(o)+1 303.228.7317 (o) +1 310.309.3350 (m) +312.320.4537
eholien@formatdynamics.com carlav@dynamiclogic.com
www.formatdynamics.com www.dynamiclogic.com

3 Source: MRI, Format Dynamics custom research, August 2009

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