Where does your message best get seen?

Just about every company worth its salt has some sort of online advertising component as part of its marketing budget. With the ubiquity and ease of use of platforms such as Google’s Adwords and Facebook ads, online marketing has truly become an accessible avenue for a lot of novice advertisers.

But there’s another question that has nagged advertisers in all mediums for as long as there has been marketing, does it work?

Online advertising, whether it’s in the form of a banner ad or text ad, seems inherently impersonal. You’re creating and placing ads that are viewed by nameless, faceless people who could literally be anywhere in the world…the task to reach them seems daunting doesn’t it?

What a lot of people forget is that this is exactly the same with all advertising, regardless of the medium. You don’t really know who’s looking at an ad on a billboard, or who is listening to the radio, or who is watching your commercial on television. Sure, there are demographic studies you could perform that could help you make intelligent guesses, but the truth is that data is useless if your product has a narrow or hyper-competitive market. In this respect webhosting is an excellent example, as costs per click (CPC’s) for popular keywords in our industry regularly hit the $25 mark in Google Adwords, the most popular ad network online by far.

comScore, a tech marketing analytics firm and a great source of genuinely interesting internet marketing info has performed a spate of studies recently that bring up some great points on this very topic.

In August, the firm released the findings of a study it conducted with dunnhumbyUSA that focused on the difference between television and online advertising. You can checkout a detailed press release about the study here, but I’ll do my best to summarize the findings.

The two firms used the example of consumer packaged goods, things such as food and snacks, to test whether online advertising actually worked. By tracking the buying habits of thousands of shoppers using their supermarket discount cards the firm was able to obtain fascinating, and to some extent unexpected results.

The study found that, in a sample size of roughly 200,000 shoppers, the brands who were exposed to consumers via ads on the web saw a 9% sales lift over a three month period with 80% of the campaigns showing a statistical increase. Those exposed through television ads saw an 8% sales lift over twelve months with only 36% of the campaigns showing a statistical increase. This is staggering data, it means nearly 1 in 10 consumers will change their buying habits in the affirmative after being exposed to an ad online and in a very short amount of time as well.

Of course, there are plenty of things to take issue with, the study doesn’t comment on the frequency of ad delivery or what percentage of ads were static vs flash, but it does at least validate the concerns of many advertisers out there.

What’s your take on the status quo in online advertising? Let us know in the comments, on our Facebook page, and on Twitter.

Photo by kevindooley.