Quantifying The Impact of Online Ads on In-Store Sales: A Retail Case Study
The CompanyUS-based specialty retailer with over 1,000 stores
The ChallengeThe retailer wanted to tailor its online advertising to drive in-store sales. Before rolling out paid search advertising, it wanted a clear idea of how these online ads would affect overall in-store sales, advertised product sales, and sales in other product categories.
The SolutionAPT's Test & Learn for Ads™ guided the retailer through a scientific Test & Learn analysis. Working with APT, the retailer launched a paid-search ad campaign in representative test markets, and compared the performance of stores in those markets to the performance of representative stores in markets not receiving the internet advertising. The test revealed that stores in the test markets experienced a statistically significant lift in overall sales and positive overall ROI. Test & Learn™ also identified significant sales increases from both the product and a secondary set of impulse buy items.
The ResultsTest & Learn™ empowered the retailer to target its paid search campaigns by limiting advertising to markets that responded most profitably. As a result, the retailer optimized returns on online ad spending.
Next Case Study: Store Closings and Customer Retention