But losses mount for the home furnishings e-retailer that went public in October.
Recall, awareness of advertiser and propensity to buy were higher among a test group who heard an audio ad on the web.
There’s more to using the web for marketing besides e-mail and banner ads. Audio ads, for instance.
And new research from Lightningcast and Diameter, the research division of DoubleClick Inc., demonstrates that such ads are effective. The two companies conducted a survey of 560 web users who listened to Internet radio, of whom 237 had heard a 60-second ad pitching a cellular phone service.
The companies report that the results showed that online audio advertising worked for brand building for the cellular carrier advertiser:
Web users exposed to the audio ad were 10% more likely to be aware of the advertiser, 59% more likely to recall its slogan, and 14% more likely to choose the cellular carrier when considering a wireless service provider than those who had not heard the ad.
Web users who heard the ad retained a greater brand awareness of the advertiser for up to a month. The ad`s impact was greatest, at 11%, among people who had heard the ad within a week of being surveyed, the companies said. But even among listeners who had last heard the ad 15-30 days before being surveyed, awareness of the cellular carrier was 9% higher than among users in the control group, they reported.
Frequency of exposure increased impact on all brand metrics measured. The greatest increases were noted for advertising awareness (+118% after 21 or more exposures to the audio ad) and ad element recall (+195% after 21 or more exposures).
The likelihood to use the service increased the more one heard the ad by nearly 25% (frequency of 21+ exposures) and even after 15-30 days had passed, by over 14%, they said.
“For some time brand marketers have been wondering when and if the web would satisfy their requirements as an advertising medium. This case study indicates that their wait is over," said Karl Spangenberg, president & CEO of Lightningcast. "Today streaming media delivered via Internet radio reaches more than 40 million listeners on a monthly basis and is growing at a double digit rate each quarter."
Lightningcast provides technology and services to webcasters, online publishers, advertisers, and traditional radio stations that simulcast their signals on the web. Diameter provides research, audience measurement and advertising effectiveness products to help advertisers understand online behavior, purchasing patterns and the results of online marketing campaigns.