Third Party Advertising Evaluation: American Express eStatement Topline July 2008

Third Party Advertising Evaluation: American Express eStatement

ToplineJuly 2008

2

Background and Objectives

04-405 Third Party Advertising Evaluation

Understand how American Express Cardmembers feel about the presence of ads on their eStatement

Understand how American Express Cardmembers feel about the presence of ads on their eStatement

• American Express has been selling advertising on its website for some time now. In an effort to extend the revenue potential of this endeavor, the company is planning to introduce advertising on its eStatement.

– While American Express is committed to selling this ad space, the company wants to do so in a way that minimizes negative repercussions.

– The focus of this research is to accomplish the following goals:

Overall Objective•Determine the optimal ad location for future sales on

the American Express eStatement that will

maximize revenue without creating a negative

experience for Cardmembers

Assess current interaction with and impressions of the American Express eStatement

Assess current interaction with and impressions of the American Express eStatement

Gauge how disruptive the ads are to Cardmembers’ experience with the website and American Express overall

Gauge how disruptive the ads are to Cardmembers’ experience with the website and American Express overall

Evaluate how the footer, sidebar and midpage ads compare in terms of impacting the Cardmember experience

Evaluate how the footer, sidebar and midpage ads compare in terms of impacting the Cardmember experience

Research Goals

3

Methodology


• Who: A total of 1,000 random interviews were conducted among American Express Cardmembers who were visiting the website to view their American Express eStatement.

– Of the random sample, 110 were OPEN Cardmembers. Augment interviews were conducted among OPEN Cardmembers to allow for an analysis of that target. Between the random and the augment, 726 OPEN Cardmembers were interviewed.

– This nets out to the following sample sizes per cell:

• What: 12-minute online interview, using a pop-up survey

• When: June 11 – June 23, 2008

• Stat Testing: A/B/C/D – Significantly higher than group noted at the 90% confidence level

Total Random(CCSG and OPEN)

OPEN (Random and Augment)

Footer Ad 250 199

Sidebar Ad 250 194

Midpage Ad 250 168

No Advertising 250 165

4

Key Findings

• Currently, CMs are highly involved and satisfied with their American Express eStatement.

– Most visit their eStatement at least once a month, with between one-fifth and one-third incorporating this activity into their daily routine.

– Overall impressions of the eStatement are favorable; eight in ten CMs have an extremely positive opinion of the site.

• Over three-quarters feel the sites provides useful information and is user friendly.

• The vast majority can find the information they’re looking for within a few minutes.

• While the proposed advertising does not generate positive feelings about American Express or the eStatement experience, it also does not seem to negatively impact engagement or satisfaction.

– Reactions tend to be neutral rather than strongly negative.

• Two-thirds of CMs feel the advertising has a negligible impact on their impressions of American Express overall and the eStatement experience.

• More importantly, the ads are not likely to deter CMs from visiting the eStatement.

• Even with the ads, more than nine in ten CMs are just as likely or more likely to visit their eStatement in the next month.

• A majority say the size of the ads is not too obtrusive and has a minimal impact, if any, on navigation of the site.

• Of the possible locations, the footer ad is most likely to be perceived as too large.

– The biggest barrier for American Express to overcome is the lack of appeal the ads generate.

• Six in ten CMs consider the ads not at all appealing.


5

Key Findings (Continued)

• The consensus is that CMs are inundated with advertising and that ads on the eStatement do not make them feel special, add value to the site, or provide worthwhile information about new products and services.

– However, CMs exposed to the sidebar ad were slightly more receptive to the presence of advertising.

• This group was more likely to consider advertising acceptable, especially if the ads are exclusively for American Express CMs.

• Further, this location is least likely to interfere with CMs train of thought as they navigate the eStatement.

• Based on these preliminary findings, the sidebar ad seems to be the best option for American Express, as it is the least intrusive for CMs.

– In the final report, we will take a more in-depth look at awareness and perceptions of the sidebar ad relative to alternative ad locations.

– We will also gauge reactions among OPEN CMs as well as other key targets to see whether there are important nuances that may impact your decision.


Experience with and Perceptions of American Express and the eStatement

7

________Note: Net Promoter = Top 2 Box – Bottom 6 Box likelihood to recommend.Q.21 How likely are you to recommend American Express to a friend, relative, or coworker? 10 point scale - 1 is Not At All Likely, 10 is Extremely Likely


Extremely Likely(Top 3 Box)

27% 25% 19%

4% 4%

71%69% 69% 76%

27%

4% 5%

Middle 4 Box

Not At All Likely(Bottom 3 Box)

+32% +38% +31% +42%

Likelihood to Recommend American Expressto a Friend or Family Member

ACC

AC

DD

8

Test Control

Footer Ad Sidebar Ad Midpage Ad No 3rd Party Advertising (250) (250) (250) (250) A B C D Whether Visited American Express eStatement Previously

________Q.1b Before today, have you visited the American Express website to check your online statement? Q.2 And how frequently do you visit your American Express online statement in a typical month? *Based on those who have visited eStatement previously.

100%


About Once a Day

About Once a Week

About Once Every Other Week

About Once a Month

Less Than Once a Month

39%37%

39%

18%19%

12%1%

30%25%20% 24%

42%

22% 17%

15%17%17%

3%2%1%

99%

1%

100% 98%

2%

Involvement with American Express eStatement

YesNo

Frequency of Viewing eStatement in a Typical Month

C

9

Test Control

Footer Ad Sidebar Ad Midpage Ad No 3rd Party Advertising (250) (250) (250) (250) A B C D

Overall Impression (Top 3 Box)

Usefulness of Information (Top 3 Box)

Ease of Navigating (Top 3 Box)

Length of Time Typically Takes to Find Information

3%

64%

34%

________Q.3 Thinking about the American Express online statement and considering all of the experiences you have had with this site, how would you describe your overall impression of the American Express online statement? 10 point scale - 1 is Extremely Negative, 10 is Extremely PositiveQ.4 Using the scale below, how useful do you find the information provided to you on the American Express online statement? 10 point scale - 1 is Not At All Useful, 10 is Extremely UsefulQ.5 Thinking about the American Express online statement, how would you rate it in terms of being easy to navigate? 10 point scale - 1 is Not At All Easy to Navigate, 10 is Extremely Easy to NavigateQ.6 On average, how quickly are you usually able to find the information you are looking for on the American Express online statement?

Almost Immediately

Within a Few MinutesLonger than a Few Minutes


3%

61%

36%

4%

65%

31%

4%

56%40%

Impression of American Express eStatement

D

C

D

Impact of Advertising on American Express eStatement Experience

11

Test

Footer Ad Sidebar Ad Midpage Ad (250) (250) (250) A B C

Overall Appeal of Ad

Impact of Ad on Feelings About American Express

Impact of Ad on Feelings About American Express eStatement

Impact of Ad on Likelihood to Visit American Express eStatement

9%

4%

3%

3%

31%

69%

71%

91%

60%

27%

26%

6%

________Q.13 Overall, how appealing do you find this ad that appeared on your American Express online statement/would it be to have this type of ad on your American Express online statement? 10 point scale - 1 is Not At All Appealing, 10 is Extremely AppealingQ.16 What type of impact does (would) the presence of this ad have on your feelings about American Express overall? 10 point scale - 1 is Extremely Negative Impact, 10 is Extremely Positive ImpactQ.17 And what type of impact does (would) the presence of this ad have on your feelings about the American Express online statement? 10 point scale - 1 is Extremely Negative Impact, 10 is Extremely Positive ImpactQ.18 Thinking about the ad displayed on the American Express online statement, how does (would) the presence of this ad affect your likelihood to visit your online statement in the next month? 10 point scale - 1 is Makes (Would Make) You Much Less Likely to Visit Your Online Statement, 10 is Makes (Would Make) You Much More Likely to Visit Your Online Statement 04-405 Third Party Advertising Evaluation

6%

3%

2%

2%

35%

63%

66%

92%

59%

34%

32%

6%

7%

4%

3%

2%

30%

65%

69%

90%

63%

31%

28%

8%

Reaction to eStatement Advertising

Bottom 3 BoxMiddle 4 BoxTop 3 Box

12

________Q.14 Using the scale below, please indicate how you felt (would feel) about the size of the ad on the online statement? Was it (Would it be)…? 10 point scale - 1 is Way too Small, 10 is Way too LargeQ.15 How did (would) the ad placement on the American Express online statement impact your ability to view or check the information on your online statement?


54%60%

4% 8%

32%42%

34%

57%

9%

Way Too Large(Top 3 Box)

Just the Right Size(Middle 4 Box)

Way Too Small(Bottom 3 Box)

Perceptions of Size of Ad

Impact of Ad Placement on Ability to View/Check eStatement

11%

52%

37%No Impact

Minimal ImpactA Lot of Impact

7%

59%

34%12%

56%

32%

Reaction to the Size and Placement of eStatement Ads

B

AA

AB

13

Test

Footer Ad Sidebar Ad Midpage Ad (250) (250) (250) A B C Don't belong on the American Express site, I see enough advertising and don't need to have it while I'm checking my statement

Cheapen American Express image

Are not even noticeable

Are fine as long as the offer is exclusively for American Express customers

Don't bother me, I'm used to seeing ads on Internet pages

Interfere with my train of thought when I'm on the site

Are not a problem, but I'd prefer them to be in different locations on the site

Keep with American Express progressive position

Are always a good way to find out about something new that I can relate to

Help me stay on top of new products and services

Are valuable

Break up the monotony

Make me feel special as a customer

50%

41%

32%

25%

32%

22%

13%

6%

6%

7%

7%

3%

4%

29%

31%

44%

42%

38%

32%

49%

45%

35%

30%

31%

28%

25%

21%

28%

24%

33%

30%

46%

38%

50%

59%

62%

62%

69%

71%

46%

36%

32%

32%

33%

15%

12%

9%

7%

6%

5%

6%

38%

38%

45%

45%

41%

39%

52%

42%

39%

40%

36%

35%

24%

16%

26%

22%

23%

26%

46%

36%

52%

53%

58%

60%

71%

10% 48%

________Q.19 For each statement listed, please select the number that best describes the extent to which you agree or disagree with the statement. 10 point scale - 1 is Completely Disagree, 10 is Completely Agree

52%

40%

35%

28%

26%

23%

12%

7%

7%

5%

4%

3%

2%

30%

40%

49%

40%

39%

40%

46%

43%

36%

33%

31%

28%

22%

18%

20%

16%

32%

35%

37%

41%

50%

57%

62%

64%

69%

76%

Agreement with Statements about Advertisingon American Express eStatement

C


B

B

CB

B

B

A

A

A

C

C

BC

BC

AC

A

A

B

AB

B

B

Completely Disagree (Bottom 3 Box)Middle 4 BoxCompletely Agree (Top 3 Box)

C

Cardmember Profile

15

Cardmember Profile

________*Monthly spend based on self-reported estimate


Documents

Third Party Advertising Evaluation: American Express eStatement Topline July 2008