Driving Online and Offline Sales: The Cross-Channel Effects of Traditional, Online Display, and Paid Search Advertising

Abstract

The current marketing environment is characterized by a surge in multichannel shopping and increasing choice of advertising channels. This situation requires firms to understand how advertising in one channel (e.g., online) influences sales in another channel (e.g., offline). This article studies the presence, magnitude, and carryover of these cross-channel effects for online advertising (display and search) and traditional media. The analysis considers how these advertising expenditures translate directly into sales, as well as indirectly through intermediate search advertising metrics-namely, impressions and clickthrough rate. For a high-end clothing and apparel retailer, the authors find that cross effects exist and are important and that cross-effect elasticities are almost as high as own-effect elasticities. Online display and, in particular, search advertising is more effective than traditional advertising. This result is primarily due to strong cross effects on the offline channel. Return-on-investment calculations suggest that by ignoring these cross effects, firms substantially miscalculate the effectiveness of online advertising. Notably, the authors find that traditional advertising decreases paid search click-through rates, thus reducing the net cross effect of traditional advertising.

Dynamics in Clickthrough and Conversion Probabilities of Paid Search Advertisements

“…As a final remark, the model's predictions of clickthrough and conversion probabilities are insufficient to determine the optimal bid per keyword. To set the optimal bid, an advertiser has to know the value of each obtained impression, click and conversion, using additional information on spillover effects to future searches (see , Rutz, Trusov, & Bucklin, 2011, Agarwal et al, 2011, substitution effects across marketing channels (see Yang & Ghose, 2010, Dinner, Van Heerde, & Neslin, 2014, and Blake, Nosko, & Tadelis, 2015, and branding profits of keywords (see Ghose & Yang, 2008). Combining the information from these sources requires the formation of an attribution strategy like in Li and Kannan (2014).…”

Efeitos das Mídias Digitais nas Novas Vendas B2B: Um ensaio sobre inbound marketing, mídias pagas e ganhadas on-line

“…Efeitos das Mídias Digitais nas Novas Vendas B2B: Um ensaio sobre inbound marketing, mídias pagas e ganhadas on-line. Revista Eletrônica de Ciência Administrativa, 18 2 Mídias Pagas Dinner et al (2014) apresentaram o conceito de mídia paga como uma estratégia de divulgação da empresa por intermédio da propaganda, a qual pode se dar nos meios on-line (propagandas na Internet, como Google Adwords, que implica em taxas por clique) ou off-line (jornais, revistas, rádio, televisão e outdoors), sendo que ambas influenciariam as vendas em canais cruzados. As mídias pagas off-line são as ações realizadas na televisão, jornais, revistas, rádio, outdoors, enquanto as mídias pagas on-line são os displays e banners nos sites, Google Adwords, dentre outros (Stephen & Galak, 2012).…”

“…Os efeitos das mídias pagas nas vendas têm sido protagonizados nos estudos de marketing (Chintagunta, Gopinath, & Venkataraman, 2010;Stephen & Galak, 2010Sethuraman, Tellis, & Briesch, 2011Norris et al, 2012;Onishi & Manchanda, 2012, Stephen & Galak, 2012Danaher & Dagger, 2013;Dinner et al, 2014;Draganska et al, 2014;Fang et al, 2015;Hewett et al, 2016;De Vries, Gensler, & Leeflang, 2017). O efeito das mídias pagas nas vendas ocorre porque as mesmas atingem ampla população -dado a capilaridade -e são impulsionadoras de receitas (Kumar & Gupta, 2016).…”

“…No âmbito de marketing digital, percebe-se que os efeitos das mídias pagas e ganhadas on-line nas vendas é um assunto intrínseco às organizações e, assim, amplamente pesquisado na área de marketing. A literatura mostra que mídias pagas e ganhadas impactam no resultado de vendas das organizações (Trusov, Bucklin, & Pauwels, 2009;Norris, Kay, & Prasad, 2012;Onishi & Manchanda, 2012;McQuarrie, Miller, & Phillips, 2013;Dewan & Ramaprasad, 2014;Dinner, Van Heerde, & Neslin, 2014;Draganska, Hartmann, & Stanglein, 2014;Hu, Du, & Damangir, 2014;Fang, Li, Huang, & Palmatier, 2015;Kumar, Bezawada, Rishika, Janakiraman, & Kannan, 2016;Kumar, Choi, & Greene, 2017). Contudo, ainda faltam iniciativas teóricas de modelos que possam englobar os efeitos do inbound marketing, das mídias pagas e das mídias ganhadas on-line nas novas vendas B2B, justificando um ensaio teórico como este.…”

Social Communication and Modern Opinion Leaders – Youtube Bloggers

“…Every year, communication tools used to attract the audiences of commercial and social advertising are becoming more and more elaborate; thanks to, among other things, the brisk development of modern media technologies. This quick renewal of communication tools and channels can be explained by the audience being surfeited with definite types of advertising, as well as by "media ageing" -the ageing of communication tools against the background of technical progress -when the stereotypic advertisements are superseded by more interesting and unconventional ones [1][2][3][4][5].…”