Research shows online advertising lifts in-store CPG brand sales

Retail sales were measured by analytically linking the permission-based comScore panel of one million US Internet users to their anonymous loyalty card in-store purchase data provided by dunnhumbyUSA; no identifiable personal data was disclosed. By comparing the in-store brand buying of households exposed to online advertising with that of households not exposed, it was possible to determine the impact of online advertising campaigns. The results of the studies indicate that exposure to online display ads can lead to improved in-store sales for CPG brands.

"Effective advertising has always been about increasing awareness, favourability and purchase intent in order to increase in-store conversion," said comScore chairman Gian Fulgoni. "After several years of conducting advertising effectiveness research for CPG brands, we are learning how digital campaigns can lift sales in retail stores. It's now clear that online ad campaigns should be an integral part of any CPG marketer's integrated communications strategy."

"The comScore dunnhumbyUSA research highlights the potential impact of an integrated, customer-driven approach across channels," added Matthew Keylock, senior vice president, New Business Development & Partnerships at dunnhumbyUSA. "With these results we are one step closer to a more comprehensive understanding of what motivates shoppers to buy and how online advertising can play a significant role along the path to purchase."

CPG campaigns show median offline sales lift of 21%

An analysis of multiple CPG online ad campaigns that involved comparing the offline buying of households exposed to advertising with the buying behaviour of households who were not exposed revealed a median in-store sales lift of 21% among the exposed households, with five out of every six campaigns generating a positive sales lift.

Approximately 70% of campaigns generated a double-digit sales lift, and more than 40% generated lifts of at least 30%.

Ads anonymously targeted to in-store brand buyers drive incremental conversion

comScore also analysed the offline sales results of a limited set of ad effectiveness campaigns that leveraged a new advertising product called Microsoft CPG Online Effect. This solution uses sophisticated predictive targeting algorithms powered by anonymous in-store buying data from dunnhumbyUSA coupled with online browsing data from comScore. These targeting algorithms are deployed by Microsoft Corp. across its network of sites.

The results showed an in-store sales lift of 42%, double the lift from campaigns that were not targeted using this approach. These results demonstrate how targeting algorithms can help improve efficiency and effectiveness in display ad delivery, providing more relevant ads to consumers, improved ROI for advertisers and higher CPMs for publishers. Dr Pepper Snapple Group is one of more than 20 CPG advertisers that have used this purchase-based targeting solution.

*Non-purchased based targeting includes, but is not limited to, the following types of media-placement strategies: contextual, audience, run of site/run of network, etc.

Fulgoni added: "Based on these results, the power of purchase-based ad targeting is clear. By delivering a relevant and persuasive message to the appropriate consumer segment, brand buying at retail stores can be increased substantially. It's clear that the level of accuracy in reaching a brand's consumer target that is possible with the Internet can drive ROI several times higher than what can be obtained using traditional media channels."

About dunnhumbyUSA

dunnhumby is a global leader in personalising customers' experience of retailers and brands. Analysing data from over 350 million people in 25 countries, the company's mission is to help companies put customers at the centre of every decision. dunnhumbyUSA is a joint venture of The Kroger Company and London-based dunnhumby. For more information, go to www.dunnhumby.com.