Online to Store: Online Advertising Drives Offline Sales

Uploaded by GoogleBusiness on 01.04.2011

[fast drumline beat]
>>Male Narrator: Online to store: Online advertising drives offline sales.
Online advertisers wonder how online advertising affects their in-store sales.
This is an important part of understanding the full value of online ads.
In-store sales are often influenced by online research, but measuring just how much can
be tricky.
To quantify this impact, Google partnered with an outside firm to conduct what we like
to call 'online to store experiments'.
We conducted these controlled experiments by saturating test markets with online advertising
for particular products.
We then compared in-store sales with these products to in-store sales in control markets
to determine whether online ads lifted in-store sales.
Time and again, results show positive in-store sales lift and return on ad spend -- some
up to 15 times.
Turns out, our advertisers did see that their online ad spend does correlate with increased
sales lift.
In one case, a large advertiser wanted to see if running search ads on generic keywords
would influence in-store sales.
Test stores saw a 1.7 percent lift in new in-store conversions with a positive return
on ad spend.
In another experiment, a national retailer targeted 59 selected test markets with keyword
specific to one product category.
They saw a two percent lift in in-store sales.
Stores that typically underperformed in the category saw lifts of 5.3 percent.
Overall, they reported a three dollar return on every ad dollar spent.
Another large retailer saw an overall lift in sales of 1.5 percent.
For one keyword targeted product category, they saw a 3.6 percent lift.
Thanks to the halo effect, they saw a one percent lift in all other categories for an
impressive ten to one return on spend.
And finally, a national retailer wanted to see if online coupons would drive in-store
Online coupons resulted in a 2.5 percent lift in promoted categories, and a 1.6 percent
overall lift.
Online ads prove to be greater than or equal to circulars in boosting sales with another
incredible ten to one return on ad spend.
When our advertisers have questions, we like to have solid numbers to back up our answers.
Does online advertising have an effect on offline sales, too?
These experiments point to a resounding yes.