IAB and comScore Release New Research on the Effectiveness of Online
Local, Directory and Classifieds Advertising; Compelling ROI Proves
Interactive as a Powerful Medium to Drive Online and Offline Sales
CHICAGO--(BUSINESS WIRE)--March 13, 2006--The Interactive Advertising
Bureau (IAB) and comScore Networks, Inc. today announced results of a
new study showing a positive return on investment (ROI) and
significant conversions both online and offline for companies that
participate in online local, directory and classified advertising. The
research also shows that these advertising vehicles have a
considerable impact on brand image. The IAB Classifieds, Directories
and Local Search Committee commissioned comScore to conduct this
"Return on Investment in Online Local and Classifieds Advertising"
project which studies the sales and brand impact of text based
listings for categories including: Automotive, Careers, Construction
and Contractors, Financial Services, Hospitality, Professional
Services, Real Estate and Retail.
The research, sponsored by CareerBuilder.com, Cars.com, Fathom Online,
Verizon Superpages.com, and Volkswagen North America will be presented
for the first time at the IAB Leadership Forum: Performance Marketing
Optimization in Chicago on March 13, 2006.
"Millions of consumers turn to the Internet each month for help in
finding a new job, a new car, or to research any number of local
services," said Erin Hunter, Senior Vice President of comScore's Media
and Entertainment Division. "This study provides empirical evidence
proving the effectiveness of online local and classifieds advertising.
It is abundantly clear that small and large advertisers have a
compelling opportunity to leverage the Internet as a powerful medium
that drives conversion for local services."
Analysis conducted for Ford Rental Car and Verizon Superpages.com
shows that online local, directory and classifieds deliver an
impressive Return on Investment ("ROI").
Ford Rental Car
The methodology for the Ford Rental Car research involved tracking an
opt-in consumer panel that searched using online directories for car
rentals, clicked on Ford Rental Car and completed their rental online.
A survey was then sent to those consumers who were exposed to the
listing, but did not complete the rental online to determine their
offline conversion.
Advertiser Return Percentage of Percentage of
on Investment * Conversion Conversion
Occurring Offline Occurring Online
----------------------------------------------------------------------
Ford 7.8 40% 60%
----------------------------------------------------------------------
* ROI is defined as the ratio of generated revenue to advertising expense
"We have always viewed online local and classifieds advertising as an
excellent way to reach potential customers," said Colleen Kelley,
Fleet Internet Strategy, Ford Motor Company. "The ROI validation
provided by this study will help Ford increase their marketing budget
allocations to these online vehicles."
Verizon Superpages.com
For Verizon Superpages.com, comScore measured different categories
including: Automotive, Hospitality, Professional Services, Retail,
Real Estate and Trade. The methodology involved tracking an opt-in
consumer panel that searched within a specific category, viewed the
listings page and clicked on the details contained therein. Those
consumers who converted online were measured. Consumers who clicked on
the listing page, but did not convert online received a subsequent
survey to determine their offline conversion.
Publisher Advertiser Return on Percentage of Percentage of
Investment * Conversion Conversion
occurring occurring
offline** online**
----------------------------------------------------------------------
Superpages.com Aggregate $10.71 73.0% 27.0%
----------------------------------------------------------------------
Superpages.com Retailers $18.85 17.4% 7.5%
----------------------------------------------------------------------
Superpages.com Real Estate $13.60 7.9% 4.9%
----------------------------------------------------------------------
Superpages.com Trade Services $0.31 2.5% 3.9%
----------------------------------------------------------------------
Superpages.com Hospitality $22.54 13.3% 8.0%
----------------------------------------------------------------------
Superpages.com Automotive
(general) $1.93 15.5% 9.5%
----------------------------------------------------------------------
Superpages.com Professional
Services $1.21 9.0% 4.1%
----------------------------------------------------------------------
* ROI is defined as the ratio of generated revenue to advertising expense
** Online and Offline conversion calculated in the aggregate
The research for CareerBuilder.com and Cars.com demonstrated a
favorable cost per acquisition analysis.
CareerBuilder.com
The methodology for CareerBuilder.com involved tracking an opt-in
consumer panel who searched for jobs at two specific companies (a "Big
4" accounting firm and an international bank) and applied either
online or offline. Job applicants were then surveyed to find out
whether they were selected for an interview and if they ultimately
received a job offer.
Cost of Cost per job Cost per job Conversions Conversions
Listings offer - offer - Bank online offline
Fee Accounting (aggregate of (aggregate of
Firm both both
categories) categories)
----------------------------------------------------------------------
$389 $283 $30 69% 31%
----------------------------------------------------------------------
* Differences driven by number of listings, job appeal, and brand equity
Cars.com
The methodology for Cars.com involved analyzing an opt-in panel that
visited the site and looked at the listings over a one year period of
time. This panel was then matched against the Polk automotive database
to determine the percentage of consumers who purchased a car. comScore
found that the cost per sale for the average auto dealership using
Cars.com listings was substantially lower than the industry average
across all media.*
Cars.com listings Industry Average
-------------------------------------------------------
Cost per Sale $68 $493
-------------------------------------------------------
* North American Dealer Association 2005 Data.
"This latest IAB study provides undisputed evidence that marketers
must include online classifieds listings as an integral part of any
marketing campaign to promote local services and products and generate
on and offline sales with very efficient ROI." said, Tim Lambert,
Chair, IAB Classifieds, Directories and Local Search Committee.
"Online classifieds enable consumers to engage products and services
at a variety of levels - information only, contact, location, email
etc.
Methodology Details
Population: U.S. Internet users viewing online local and classifieds listings.
Test and Control Design: Test consumers were exposed to online local
and classifieds listings. Control consumers were "category-involved",
but did not see an online listing.
Time Period: Seven months ending September 2005.
Measurement of Online Behavior: Passively observed via the comScore
opt-in panel.
Measurement of Offline Behavior: Surveys among the comScore opt-in panel.
Publishers: Superpages.com, CareerBuilder.com, and Cars.com.
Marketers: Car dealerships, Ford Rental Car, a "Big 4" accounting
firm, a major international bank, and six local categories of
businesses (real estate, shopping, automotive, professional services,
trade services and hospitality)
About comScore Networks
comScore Networks provides unparalleled insight into consumer behavior
and attitudes. This capability is based on a massive, global
cross-section of more than 2 million consumers who have given comScore
explicit permission to confidentially capture their browsing and
transaction behavior, including online and offline purchasing.
comScore panelists also participate in survey research that captures
and integrates their attitudes and intentions. Through its proprietary
technology, comScore measures what matters across a broad spectrum of
behavior and attitudes. comScore consultants apply this deep knowledge
of customers and competitors to help clients design powerful marketing
strategies and tactics that deliver superior ROI. comScore services
are used by global leaders such as AOL, Microsoft, Yahoo!, Verizon,
Best Buy, The Newspaper Association of America, Tribune Interactive,
ESPN, Fox Sports, Nestle, MBNA, Universal McCann, the United States
Postal Service, Merck and Orbitz. For more information, please visit
www.comscore.com.
About the IAB
Founded in 1996, the Interactive Advertising Bureau (www.iab.net)
represents over 225 leading interactive companies that actively engage
in, and support the sale of interactive advertising. IAB members are
responsible for selling over 86% of online advertising in the United
States. On behalf of its members, the IAB evaluates and recommends
standards and practices; fields interactive effectiveness research,
and educates the advertising industry about interactive advertising.
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