Online ads translate to shop sales

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Internet ads can help high street sales

A new study has found that online promotions such as display advertising and pay-per-click (PPC) campaigns have an impact on consumers' choices when they visit traditional shops.

The research, carried out by comScore and dunnhumbyUSA, found that shoppers who had seen internet advertisements for consumer packaged goods (CPG) spent 21 per cent more in-store than customers who had not seen them.

The statistics represent a median conclusion drawn from a study conducted over two years in the US, covering products such as food, household supplies, tobacco and other packaged goods. A control group was monitored alongside households who had been exposed to online advertising.

Industry publication eMarketer predicts that online advertising spend on CPG products will increase by 35 per cent this year and the sector will also enjoy growth in the overall advertising sphere, perhaps even rising to represent 10 per cent of the market by 2015.

Online promotions are absorbed by consumers

This follows a sharp increase in the amount that marketing professionals have spent on internet display advertising since 2010.

Mark Baker, online marketing manager at theEword, said: "It is easy to dismiss display ads as something that people see at a glance online while browsing and then instantly forget, but this research suggests that their effects are more long-reaching.

"Like any other form of advertising, online display and PPC campaigns leave an impression on consumers and when they are next shopping in a store, they are reminded - whether consciously or subconsciously - of the products or services they have seen online."

Some recent high profile spending indicates it is not just CPG products that are attracting sizeable promotional splurges. Marketing publication has reported that US President Barack Obama and the Democratic National Committee have spent nearly $5m (£3.1m) on online promotion this year.