Effectiveness of online and Television advertising in boosting offline sales: Study

By A Bisht

Meaning of terms used in the write-up:

--CPG Brands:     CPG or consumer packaged goods (CPG) brands (products) that consumers buy from real world stores. The study quoted in the write-up has included the CPG products like cereal, cookie mixes, pizza, juice drinks, snack bars, pasta, tea, deodorants and toothpaste etc retailed in the stores in USA.

--Offline sales:     means the retail sales of CPG brands.

Effectiveness of online and Television advertising in boosting offline sales:

A study conducted by research firms comScore and dunnhumbyUSA, comparing the Effectiveness of online and Television advertising in boosting offline sales(retail sales of CPG brands); has revealed that online advertising is equally (if not more) effective, in Growing the offline sales (Retail Sales of Consumer Packaged Brands).

A comparative study between the comScore/dunnhumby and Information Resources, Inc. data related to the online and Television advertising respectively, showed that:

While the TV ads achieved a sales growth of 8% over a period of 12 months, the online ads achieved a sales growth of 9% over just 3 months.

In parallel terms, the percentage of sales lift achieved through TV ads was 36% and that through online ads was 80%. That’s in the case of online ad campaigns, for every 100 ad campaigns analysed, 80 resulted in a sales growth; that number for Television ads was 36.


The possible inferences that can be derived from the above results are as under:
 the notion that online marketing is for online marketers needs to be re-think on.
 The notion that an Offline product is always advertised on Televison needs to be re-think on, as well.
 All sorts of offline products and services have the potential to advertise the prducts/services online.

Benefits of Online advertising:

What online advertising provides which Television advertising doesn't:

--Online advertisements make use of precise targeting ability of the Internet – especially in terms of accurately reaching the desired demographic segment. A reason for online advertising’s increased effectiveness.
--Online advertising is generally less costly than television.
--Since online ads take less time to achieve the results, online advertising can generate measurable sales in the short-term and build brands in the long term. --------