Exposure to online display ads can lead to improved in-store sales for consumer packaged goods brands, finds comSCORE study
October 13, 2011
– comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, and dunnhumbyUSA, a global leader in building brand value for consumer goods and retail companies, today released results of multiple studies measuring the offline sales impact of online display advertising for consumer packaged goods (CPG) advertisers. Retail sales were measured by analytically linking the permission-based comScore panel of one million U.S. Internet users to their anonymous loyalty card in-store purchase data provided by dunnhumbyUSA; no identifiable personal data was disclosed. By comparing the in-store brand buying of households exposed to online advertising with that of households not exposed, it was possible to determine the impact of online advertising campaigns. The results of the studies indicate that exposure to online display ads can lead to improved in-store sales for CPG brands.
“Effective advertising has always been about increasing awareness, favorability and purchase intent in order to increase in-store conversion,” said comScore Chairman Gian Fulgoni. “After several years of conducting advertising effectiveness research for CPG brands, we are learning how digital campaigns can lift sales in retail stores. It’s now clear that online ad campaigns should be an integral part of any CPG marketer’s integrated communications strategy.”
“The comScore dunnhumbyUSA research highlights the potential impact of an integrated, customer-driven approach across channels,” added Matthew Keylock, Senior Vice President, New Business Development & Partnerships at dunnhumbyUSA. “With these results we are one step closer to a more comprehensive understanding of what motivates shoppers to buy and how online advertising can play a significant role along the path to purchase.”
CPG Campaigns Show Median Offline Sales Lift of 21 Percent
An analysis of multiple CPG online ad campaigns that involved comparing the offline buying of households exposed to advertising with the buying behavior of households who were not exposed revealed a median in-store sales lift of 21 percent among the exposed households, with five out of every six campaigns generating a positive sales lift. Approximately 70 percent of campaigns generated a double-digit sales lift, and more than 40 percent generated lifts of at least 30 percent.
Ads Anonymously Targeted to In-Store Brand Buyers Drive Incremental Conversion
comScore also analyzed the offline sales results of a limited set of ad effectiveness campaigns that leveraged a new advertising product called Microsoft CPG Online Effect. This solution uses sophisticated predictive targeting algorithms powered by anonymous in-store buying data from dunnhumbyUSA coupled with online browsing data from comScore. These targeting algorithms are deployed by Microsoft Corp. across its network of sites.
The results showed an in-store sales lift of 42 percent, double the lift from campaigns that were not targeted using this approach. These results demonstrate how targeting algorithms can help improve efficiency and effectiveness in display ad delivery, providing more relevant ads to consumers, improved ROI for advertisers and higher CPMs for publishers. Dr Pepper Snapple Group is one of more than 20 CPG advertisers that have used this purchase-based targeting solution.
Mr. Fulgoni added: “Based on these results, the power of purchase-based ad targeting is clear. By delivering a relevant and persuasive message to the appropriate consumer segment, brand buying at retail stores can be increased substantially. It’s clear that the level of accuracy in reaching a brand’s consumer target that is possible with the Internet can drive ROI several times higher than what can be obtained using traditional media channels.”
comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital business analytics. For more information, please visit www.comscore.com/companyinfo.
dunnhumby is the global leader in personalizing customers’ experience of retailers and brands. Analyzing data from over 350 million people in 25 countries, we help companies put customers at the center of every decision. We use our insight to improve customers’ experience of stores and communications to earn their lifetime loyalty. Our work with some of the world's biggest retailers and brands has demonstrated that those companies that deliver value to customers through personalization become and stay their customers' first choice. This strategic approach to putting the customer first in business improves our clients' like-for-like sales and profit margins - or, put simply, their brand value. dunnhumbyUSA is a joint venture of The Kroger Company and London-based dunnhumby. Employing more than 1,500 people in 30 offices in Europe, Asia and the Americas, dunnhumby serves a prestigious list of companies including The Kroger Co., Tesco, Coca-Cola, General Mills, Kimberly-Clark, Macy's, Panera Bread Company, PepsiCo and Procter & Gamble. For more information, visit www.dunnhumby.com.