The Homa Files

Excerpted from Advertising Age, “Kellogg: Digital ROI Surpasses That of TV” Sep 4, 2008

The digital divide is narrowing for Kellogg Co..its return on online investment for the Special K brand has surpassed that of broadcast TV over the past 18 months.

Kellogg crossed the $1 billion benchmark on ad spending during 2007, and its outlay is set to increase this year.

“It’s still relatively early in our learning,” Mark Baynes, CMO…said,…”But analysis of the Special K initiative of the last 18 months showed digital media exceeding that of broadcast ROI.”

The marketer described the company’s findings as “obviously very encouraging,” and predicted they would help “drive stronger adoption across the business…For the right opportunity, the [online] space offers fresh ways to commercialize new and existing brands, target specific audiences on needs more cost effectively…”

Edit by SAC

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While measuring success of online advertising continues to evolve, Kellogg isn’t the only company looking for higher returns online.  AdAge announced earlier this year that GM plans to move half of its ad spending online and a recent report by eMarketer notes that online advertising’s share of total media will double from 2006 to 2011, reaching $42 billion by 2011.

Chart Source:
http://www.marketingcharts.com/television/online-ad-spending-to-reach-42b-by-2011-budget-shift-to-accelerate-2292/emarketer-us-online-advertising-spending-2006-2011jpg/

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Full article:
http://online.wsj.com/article/SB122057760688302147.html?mod=2_1567_topbox

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This entry was posted on September 15, 2008 at 6:38 am and is filed under Mktg - Advertising, Mktg - ROI. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.