Starbucks shows just how effective online brand building is

Online advertising is not only an excellent way to build brand awareness but is also extremely cost effective, according to new research.

A study conducted by the Internet Advertising Bureau and GFK NOP revealed that coffee chain Starbucks was able to use the web to great effect when promoting its VIA product – an instant version of its in-store offering.

According to the research, Starbucks’ online efforts led to a “strong uplift in awareness” as well as a 40 per cent increase in purchase intent in the brand’s core demographic of 35-54-year-old women, impressive results.

Perhaps more impressive though, is the cost effectiveness of the project – the Starbucks online campaign cost just a fifth of the cost of a press campaign, while the study also revealed that companies which look to brand build via the internet can exploit the channel’s ability to “increase awareness at a lower cost per additional awareness point”.

Tim Elkington, director for research strategy at the IAB, said: “Through this research we’ve seen that online delivers reach cost effectively.

“Much of that reach is on an exclusive basis and multiple exposure to online advertisements can offer a disproportionate uplift in brand metrics.”

Add to the fact that online advertising offers a level of interaction no other medium can provide and it’s easy to see that ignore internet marketing would be extremely foolish.