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09/30/2016

Online Ads Result in More Purchases

Do online display ads actually influence online and in-store purchases? Brand marketers might be interested to know that according to some recent and about-to-be published research, the answer is yes. 
 
Yahoo! Research partnered with a nationwide retailer to study the effects of online display advertising on both online and in-store purchases. The team used a randomized field experiment on 3 million Yahoo! users who were also past customers of the retailer. They found statistically significant evidence that the retailer ads increased sales 3.6% relative to the control group.
 
They also showed that they didn’t need to study as many users to arrive at more precise conclusions--control ads boost measurement precision by identifying and removing the half of in-campaign sales data that are unaffected by the ads.
 In other words, less is more when it comes to the data needed to draw accurate conclusions.
 
The study, When Less Is More: Data and Power in Advertising Experiments, is set to be published in INFORMS’ Marketing Science, a peer-reviewed journal from the Institute for Operations Research and the Management Sciences.