Saturday, May 26, 2012

Online ads that use purchaser data deliver incremental sales

Consumer packaged goods (CPG) brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising that has been precisely delivered using purchase-based information, according to research from Nielsen Catalina Solutions.
These findings, based on what we believe to be the industry’s most in-depth and comprehensive study to date on the correlation between online advertising and offline purchase, indicate a turning point for the digital medium as marketers seek to better leverage their advertising budgets across multiple channels.
Nielsen Catalina Solutions, a JV of Nielsen and Catalina, helps CPG marketers and media companies measure and improve advertising performance with single source analytics for television, print, CRM, online and mobile. For this body of work, Nielsen Catalina Solutions and Nielsen completed more than 800 studies over the past seven years, collaborating with more than 300 CPG brands and 80 companies to measure the correlation between online advertising and offline consumer purchases.

Payback* per $1 Advertising Investment
All-Category Average          2.79
Food               2.36
Over-the-Counter                 2.72
Health & Beauty Aids          2.73
General Merchandise         2.73
Beverage       3.17
Pet                  5.29
*Ratio of incremental sales revenue per thousand households (RPM) to advertising cost per thousand (CPM). RPM/CPM = Payback

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