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Abstract Details
Activity Number:
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448
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Type:
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Invited
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Date/Time:
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Wednesday, August 3, 2011 : 8:30 AM to 10:20 AM
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Sponsor:
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Section on Statistics and Marketing
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Abstract - #300433 |
Title:
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When Less Is More and More Is More: Proximity and Repetition in Online Display Retail Advertising in a Large-Scale Field Experiment on Yahoo!
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Author(s):
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Randall A. Lewis*+ and David H. Reiley and Garrett A. Johnson
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Companies:
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Yahoo Research and Yahoo Research and Northwestern University
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Address:
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4401 Great America Parkway, Santa Clara, CA, 95054,
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Keywords:
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field experiment ;
online display advertising ;
frequency ;
distance ;
offline sales ;
advertising effectiveness
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Abstract:
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Yahoo! Research partnered with a nationwide retailer to study the effectiveness of display advertising on online and in-store sales on more than three million shared customers. We measure the impact of higher ad impression frequency using a simple design that varies the ads that users see on the Yahoo! network within identically targeted campaigns: users in the treatment group see the retailer's ads; users in the control group see unrelated, `control' ads; and users in the half treatment group see an equal probability mixture of the retailer's and control ads. We find a statistically significant increase in sales, relative to the control group, as a result of the ads. Doubling the number of impressions per person--from 17 to 34 in a two-week period--approximately doubled the treatment effect. We also find striking evidence that the ads most strongly affected customers who live closest to the retailer's brick-and-mortar locations: those who live within two miles of a store experience six times the incremental sales lift due to ads as those living farther away.
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