Online Advertising Can Boost Sales By Up To 12.5%
Online advertising can boost off-line sales by as much as 12.5%, according to an innovative new study published by MSN in conjunction with Procter & Gamble, Nestle and Kraft.
The research, carried out between November 2003 and January this year, recommends a significant increase in internet adspend after revealing that sales of consumer packaged goods rose by between 7% and 12.5% when advertised online.
The study found that marketers will achieve the best results through investment in the right mixture of online and offline advertising. It suggests that online adspend should account for at least 5% of a total marketing budget and potentially higher depending on specific marketing objectives.
Additional results from the research show that online advertising increases key brand images attributes by between five and seven points and purchase intent by three to seven points.
Commenting on the findings, Todd Manion, director of e-business of Nestle Brands Company, said: “This study answers one of the most important questions top of mind with today’s marketers: how to determine the best mix of online media with other traditional media to get the best return on investment. We participated in this study with MSN to help provide the accountability needed to establish the value of online advertising among the more traditional forms of media.”
Joanne Bradford, chief media revenue officer for MSN, added: “This study provides marketers with the research-based insight and guidance they need to get the most bang for their increasingly scarce advertising buck across a broad range of media. “We are delighted that marketers were willing to work with us to develop a method that adds new accountability to this entire industry.”
Research from the Association of Online Publishers shows that internet users react more positively to advertising on websites they have a strong relationship with. The study claims that users of quality content websites, such as economist.com, FT.com and guardian.co.uk, are the most attractive audience to advertisers both in terms of demographic and online behaviour (see Research Shows Context Is Key For Online Advertising).
MSN: 020 7465 7700 www.msn.co.uk
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