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A new study by Yahoo has looked at the effect of online advertising on consumer shopping patterns offline, finding that online ads can increase the number of offline buyers, as well as their average spend.

The study (pdf) used around 175,000 panelists, looking at the effect of search marketing and display advertising on consumers' offline shopping behaviour between April 2006 and January 2007.

Highlights from the study:

  • When pre-shopping consumers are exposed to online ads,  the report suggests that they are more engaged with a website, viewing an average of 6 pages more than those not exposed, a 53% increase.
  • These consumers were more likely to make a purchase, with revenues for the stores in the study rising by 43%. The report also said that 83% of the sales revenue generated from the online advertising was from offline spending.
  • The report suggests that search marketing has three times the effect on offline sales than display advertising. When consumers in the study were exposed to search only, on average they spent $16 in the store for every $1 they spent online.
  • However, display ads have a greater effect on offline sales volume, with three times the reach of search marketing.  Consumers exposed to display advertising spent an average of $6 in the store for every $1 they spent online.

Further reading:
Consumers who research online spend more offline - report
Report shows influence of internet on offline sales  

Graham Charlton

Published 1 August, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

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