Online Ads Lift Sales of Packaged-Goods 9 Percent2 Sep, 2009 Response This Week
RESTON, Va. – Online advertising can help raise the sales of consumer packaged goods by 9 percent, according to a recent survey by comScore and DunnhumbyUSA. The rate of sales is one-percent higher than the effect of television ads on retail sales.
The study collected data via supermarket loyalty cards by looking at the behaviors of 200,000 consumers. Product categories looked at included cereal, cookie mixes, pizza juice drinks, snack bars, pasta, tea, deodorants and toothpaste. The brands studied were advertised with both static and rich media online display ads.
The study found that 80 percent of online CPR display ad campaigns had some increase in supermarket sales. This compares with a figure of 36-percent impact and 8-percent retail lift from television ads (measured by Information Resources Inc.).
“These early results confirm the ability of online advertising to successfully build retail sales of CPG brands on par with the impact of television advertising,” says Gian Fulgoni, executive chairman of comScore. “It is likely that the more precise targeting ability of the Internet – especially in terms of accurately reaching the desired demographic segment – is a key reason for its effectiveness.”
However, online media is still less expensive than buying television time. Why? Television’s ability to reach out and touch large audiences in a short period of time.