Advertising Effectively Influences Older Users: How Field Experiments Can Improve Measurement and Targeting

B-Tier
Journal: Review of Industrial Organization
Year: 2014
Volume: 44
Issue: 2
Pages: 147-159

Authors (2)

Randall Lewis (Google, Inc.) David Reiley (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Does advertising measurably affect sales? New technologies for tracking individuals’ sales and ad exposure facilitate studying a nationwide retailer’s online brand advertising effectiveness. A controlled experiment on 1,577,256 existing customers measures the causal effect of advertising on purchases, overcoming the attribution problem by exogenously varying ad exposure. The advertising produced a statistically and economically significant effect on in-store sales. The experiment permits a demographic breakdown. Surprisingly, the effects are large for the elderly. Customers aged 65+, comprising only 5 % of customers, increased purchases by 20 % due to the advertising. This represented 40 % of the total effect among all ages. Copyright Springer Science+Business Media New York 2014

Technical Details

RePEc Handle
repec:kap:revind:v:44:y:2014:i:2:p:147-159
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25