Tuesday, August 25

Rivaling Television: The Internet


comScore, Inc. and dunnhumby released a study that may make some local television station executives lose sleep. The study, which delves into the effectiveness of online advertising in building retail sales, reveals that Internet advertising is as effective as television advertising.

One study demonstrated that over the course of 12 weeks, online ad campaigns with an average reach of 40 percent of their target segment successfully grew retail sales of the advertised brands by an average of 9 percent in three months. Television accounted for an 8 percent lift over 12 months.

In fact, according to the study, 80 percent of Internet campaigns showed a significant statistical lift in sales whereas television showed a 36 percent lift in sales. In the study, which included more than 200,000 people and campaigns that featured cereal, cookie mixes, pizza, juice drinks, snack bars, pasta, tea, deodorants, and toothpaste, the Internet seems to have come of age among big brand marketers.

"The study results represent very encouraging news for CPG marketers online and offline because the data confirms the ability of online marketing to drive results offline at the shelf level," said Bill Pearce, senior vice president and chief marketing officer at Del Monte Foods. "These are precisely the types of persuasive studies we are looking for at Del Monte as digital plays an increasing role in our marketing strategy."

Studies such as these, many of which are never released, are driving dozens of companies to explore Internet advertising and social media programs. Just one of a hundred of new examples we're tracking includes Procter & Gamble's Pampers brand, which is experimenting with digital media by creating its own version of a reality show.

The show, A Parent Is Born, will chronicle the birth of parents via a 12-part Web series that focuses on various aspects of the parenting journey, from "Finding Out the Sex" to "My Big, Fat, Beautiful Body." The Webisodes will run on Pampers.com, YouTube and DirecTV On Demand, and TLC will also promote the show. MommyCast, a weekly radio/podcast series, will interview the Barstons on what life is like after son Leo is born.

Gian Fulgoni, comScore chairman and co-founder, will be sharing more about the series of studies at the Digital Age conference on Aug. 27 in Sao Paulo, Brazil. He is scheduled to share in-depth insight into how online advertising really works, presenting the results of research into click-through rates as well as the importance of online advertising in raising brand awareness and ROI.

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