Online ads more effective than TV, says study

Tue Aug 18 2009, 18:27 PM

Online advertising can be more effective than TV ads when it comes to selling consumer packaged goods, according to comScore. The study, produced with brand strategist dunnhumbyUSA, claims online ads produced a 9% sales lift over three months. Comparable TV ad campaigns caused an 8% sales lift over a 12-month period.

comScore focused on a volunteer sample of 200,000 shoppers, whose supermarket purchases were scanned and logged at participating shops using shop royalty cards. The shopping habits of those who were exposed to online ads were compared to a "control" group of shoppers who did not see the ads.

The impact of display ads promoting products such as pizza, juice drinks, deodorants and toothpaste was measured over a three-month period. Resultant sales jumped 9% and the number of ad campaigns that produced significant sales increases was 80%.

comScore compares to TV ad figures compiled by marketing firm Information Resources Inc (IRI). Using a comparable control group and point-of-purchase identification methods, IRI found that sales lifted 8% over the course of a year, with 36% of the TV ad campaigns showing a significant sales increase.

"These early results confirm the ability of online advertising to successfully build retail sales of consumer packaged goods brands on par with the impact of television advertising," says Gian Fulgoni, executive chairman of comScore. "When you take into account the fact that online advertising is generally less costly than television, these results take on even greater significance."

The results come as TV ad budgets continue to suffer from the recent economic downturn and advertisers increasingly look towards the web. Earlier this month, MediaWeek reported that ad revenues for the five main US TV networks were down 22% year-on-year in their annual upfront negotiations with media buying agencies. In June, a Screen Digest report predicted the US TV industry could see a USD2bn slump in ad revenue by 2013 as audiences and advertisers move online.

In contrast, a recent Forrester report predicted that ad spend on US social media sites is set to grow at least four times over in the next five years, from an estimated USD716m this year to USD3.1bn in 2014.

Though the web has been affected by the economic downturn, the online ad market is still growing. ZenithOptimedia Group's quarterly forecast, released in July, estimates that global online ad spending will expand 10.1% in 2009.