Online Advertising Ups E-Profit
September 8th, 2007 Posted in NewsInternet advertising is finally making a mark in the market and is significantly changing the shopping and spending behavior of today’s consumers, according to a new study commissioned by online giant Yahoo! and web authority comScore. Yahoo! is one of the largest US online conglomerates with a wide range of Internet services which includes a web portal, free webmail service, instant messaging, members directory, news and the Yahoo! 360o networking website. On the other hand, comScore is an online database that studies the divergent ways in which the Internet is used and provides valuable information for leading corporations to understand better and profit more from the advantages of fast-evolving online world.
Involving a survey sample of more than 175,000 comScore panelists and made between April 2006 and January 2007, this study contrasted the buying attitudes of consumers exposed to online advertisements and those who have no access to them but share similar demographic characters and purchasing behaviors and to determine the incremental effects of exposure to Internet advertising on in-store sales.
These latest conclusions on Internet marketing are based on the effects of search and display online advertising on in-store sales of five major retailers. Exposure on to online advertising influences consumers to “pre-shop” online or to make choices over products that could lead them to make in-store purchases. As a result, buyers who tend to pre-shop on the Internet spend an average of 41% more in in-store purchases than those who have no access to online advertisements. Online advertising has also widened the access to online “pre-shoppers” since buyers would usually search for similar products based on available online advertisement. Of the total sales made due to online advertisements, 90% of incremental sales include in-store purchases resulting in a $6 increment for every $1 spent for online advertising. Furthermore, online advertising campaign that uses the search and display strategy result in a stronger connection with the target consumers who have access to these advertisements and this too has contributed to increased profits.
Results of the study further show that online advertising is increasingly becoming an important tool for modern businesses. By promoting their products and services to their targeted consumers who search the Internet for information and solutions, search and display online advertising also at the same time allows access to online advertisements. With increased website hits, an online advertising campaign can help increase offline sales made from in-store sales.
With the widening Internet use and the latest developments in web technology, an increasing number of online advertisers have made several significant business advances with the use of innovative online tools like videos, graphics and other advertising medium as well as by directing Internet traffic to websites and web advertisements which feature products and services to potential customers and help speed up significantly business growth and considerably increase profitability. With a well-planned and carefully studied advertising campaign, online advertisements can make a great impact on one’s business sales, visibility and brand building, with just a few mouse clicks.
