April 10, 2002, 12:00 AM

Online brand advertising works, a new study says

Online advertising positively influences consumer perceptions of brands and increases offline sales by an average of 6.6% for major consumer packaged goods, Information Resources and DoubleClick reported today.

Kurt Peters

Executive Editor

 

Online advertising positively influences consumer perceptions of brands and increases offline sales by an average of 6.6% for major consumer packaged goods, Information Resources Inc. and DoubleClick Inc. announced today.

The two companies collaborated on the e-AdWorks: Internet Advertising Effectiveness Study, which examines the impact of Internet advertising on purchase behavior and consumer attitudes. The study found growth in brand awareness, message recall and sales that was incremental to the base levels achieved through TV, radio and print advertising. The sales lift resulting from online advertising ranged from flat for two brands up to 22.5% for a brand with a new line extension.

"Not only does this research dispel the notion that people ignore banner ads, but it shows that online advertising can impact the most important measure--sales," said Brian Murphy, senior vice president, IRI. "This research should shift the debate from `does it work` to `how can we maximize the impact and ROI of Internet advertising within the marketing communications mix?’"

The research was conducted on eight brands from five manufacturers. Half of the brands achieved statistically significant increases in unaided brand awareness, ranging from 1.8% to 23.9%. Six of the eight brands achieved significant growth in aided message recall. "Building from these sales and branding metrics, we were able to construct an ROI model to help marketers put the results in perspective and craft a stronger online strategy," added Murphy.

The study focused on three primary objectives:
-- Can Internet advertising drive offline sales of consumer packaged goods products?
-- Is online advertising an effective medium for branding CPG products?
-- Is online ad impact related to offline advertising sensitivity?

 

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