Online Ads Apparently DO Work

After years of ad companies and their clients wondering whether online ads work, a new study by comScore and marketing consultancy dunnhumbyUSA over a three month period shows they do.

A large sampling of 200K panelists selected from supermarket loyalty programs (including measured retail-buying behavior) was tracked through point-of-sale UPC scanners at checkout. Those exposed to online CPG advertising were 9% more likely to buy than the control group. Ad campaigns included both static banners and rich media ads for a range of products including tea, pizza, snack bars, deodorant and toothpaste.

In addition, the study found that 80% of the campaigns resulted in a statistically significant sales increases for the advertised brand. The results were on a par with TV-based ads. CPG companies have lagged behind sectors like financial services and automotive in utilizing online advertising, accounting for only 6% ($1.5bn) of the $23.4bn spent on online buys in 2008 (up from 4%, or $925MM in 2007).

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