Big Thinkers India Series, March 19
The lectures, under the banner of the Yahoo! Big Thinkers India series, bring together academia, scientists, the corporate world and the media.
This quarter, the event will be held on March 19, Friday from 3-5 pm at the Leela Hotel on Old Airport Road.
TOPIC: Does Retail Advertising Work? Measuring the Effects of Advertising on Sales via a Controlled Experiment on Yahoo!
A randomized experiment performed in co-operation between Yahoo! and a major nationwide retailer allows us to measure the effects of online advertising on sales. We exploit a match of over one million customers between the databases of Yahoo! and the retailer, assigning them to treatment and control groups for an online advertising campaign for this retailer and then measuring each individual’s weekly sales at this retailer, both online and in stores.
We find statistically and economically significant impacts of the advertising on sales. We estimate the total effect on revenues to be more than four times the retailer’s expenditure on advertising during the study. Additional results explore differential effects of ads on online and offline sales and on individuals who click the ads versus those who merely view them. Our results provide the best measurements to date of the effectiveness of image advertising on sales, and we shed light on important questions about online advertising in particular.
SPEAKER: David Reiley, Principal Research Scientist at Yahoo! Research
David Reiley is a Principal Research Scientist and a pioneer in the use of field experiments in economics. He has used field experiments to test theories of auction bidding and charitable fundraising, and is currently using experiments to measure the effects of display advertising on advertisers’ sales. Before joining Yahoo! Research, David worked at the Arizona Public Service Professor of Economics at the University of Arizona.
To register for the event, click here.