One Additional Minute of Exposure to Display Advertising Can Boost Direct Traffic to a Company’s Website by 10%, According to New Research from NYU Stern
— September 8, 2016
A new digital attribution model shows that advertising effects are amplified up to four times when consumers are targeted earlier and for longer periods of time
This first-of-its-kind study uses real-world settings and data to examine how actual viewability of display advertising – and the length of exposure to display ads – impacts consumer behavior from initial exposure to final purchase. This framework is part of a pioneering set of research focused on digital attribution, or determining which display advertising channel deserves the most credit for a consumer’s purchase – a key question among advertising executives who manage campaigns for brands.
Using a large-scale, individual-level data set, which tracked the entire advertising campaign of a U.S.-based retailer, the study reveals:
- On average, 55% of display ads are not viewable – meaning they are not visible on a consumer’s screen area for more than one second.
- Exposure to display ads increases the chances that a consumer will engage in active search and visit a company’s website by more than 36%.
- Additionally, consumers are 25% more likely to click on a search ad served up to them on Google.
- When a consumer is targeted earlier in the purchase funnel, one additional minute of exposure to display advertising can increase the likelihood he/she will visit a company website by almost 10%.
- Consumers are also 7% more likely to complete a purchase after seeing a display ad.
The article, “Towards a Digital Attribution Model: Measuring the Impact of Display Advertising on Online Consumer Behavior,” is forthcoming in MIS Quarterly and was nominated for a Best Paper Award at the 2015 INFORMS Conference on Information Systems and Technology (CIST).