Does Online Advertising Really Work?

Posted by jsternal under Advertising
From http://www.sphere.com 5429 days ago
Made Hot by: Bigheights on January 14, 2010 9:51 pm

New research suggests that the mere presence of online ads has an influence on the products and services we buy, and that businesses that advertise online are probably getting a better bang for their advertising buck on the Web than in other media, like television, radio or print.

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Comments

Written by q4sales
5428 days ago

Wow, this study is amazing. I'm sure there are some analytic gurus who can poke some holes in the Yahoo team's work, but it looks pretty sound. I'm passing this on.

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Written by MarciaB2B
5429 days ago

Savvy advertisers have known for a long time that banner ads are great for improving brand recognition, but not necessarily direct response (i.e., direct click throughs to buy something). Up to now the belief in value as brand recognition has been gut feel. This study quantifies the value:

"Surprisingly, Lewis and Reiley found that users who had seen the retailer's ads (which were not shown more frequently than other ads) wound up spending more than 10 times the ad campaigns' cost to the retailer. That sort of return on investment is way beyond estimates for other media."

That is great news for online publishers that have seen the recession eat into ad revenues.

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