This paper demonstrates the impact of a specific campaign setup best practice — frequency capping — on media performance, highlighting potential cost savings from optimising this setting. Focusing on this single practice, we show how its implementation can improve efficiency and reduce media waste. Analysing thousands of campaigns across DV360 and Meta, we assess whether frequency capping was enabled (compliant/non-compliant) and examine its influence on media spend and reach. An optimised XGBoost model, trained via grid search and cross-validation, estimates media spend based on delivered results. Counterfactual simulations on 500 campaigns show that enabling frequency capping can decrease media spend by 27–38 per cent without negatively impacting outcomes.1 These findings underscore the value of frequency capping as a targeted, data-driven strategy for enhancing advertising efficiency and managing budgets effectively.
Amplifying Off-Site Purchases with On-Site Retail Media Advertising
Retail media is of growing interest to brands, and online retailers offer a large collection of product information that is freely available for consumers’ online and offline purchase decisions. In this study, the authors map webrooming across ten product categories by combining internal data from consumer browsing behavior at an online retailer and survey responses from the same customers about their offsite behavior. Moreover, they build a random forest machine-learning model to predict the mag- nitude of webrooming across categories. They find that webrooming is economically substantial. On average, for every 10 cus- tomers who research the product category on-site and buy on-site, 17 other customers research the product category on-site and buy off-site. As to retail media’s impact, upper-funnel and always-on online ad forms are associated with a higher number of online searchers in the laptop category who buy the brand offline. Beyond finding support for their propositions, the authors provide directions for future research on the cross-channel effects of retail media and how they generalize across brands, cat- egories, and retailers.
How much does digital advertising accelerate new product success?
Many new products are launched in e-commerce. While advertising is believed to enhance new product success, managers often lack the numbers to quantify this benefit to the company. Retail websites offer specific success benchmarks, such as pre-purchase product views, purchase conversion and post-purchase reviews. This paper’s main thesis is that while new products can succeed with or without advertising, digital advertising can help products achieve success faster. Across five categories, this research shows that digital advertising on Amazon.com can cut the time needed to reach success levels by more than half, compared to products that reach these same benchmarks without such advertising.
Bertozzi, Giacomo, et al. “How much does digital advertising accelerate new product success?.” Applied Marketing Analytics 7.4 (2022): 318-328.
Please access the preprint version here: How much does digital advertising accelerate new product success_pauwelspreprint
How much does digital advertising accelerate new product success?
Many new products are launched in e-commerce. While advertising is believed to enhance new product success, managers often lack the numbers to quantify this benefit to the company. Retail websites offer specific success benchmarks, such as pre-purchase product views, purchase conversion and post-purchase reviews. This paper’s main thesis is that while new products can succeed with or without advertising, digital advertising can help products achieve success faster. Across five categories, this research shows that digital advertising on Amazon.com can cut the time needed to reach success levels by more than half, compared to products that reach these same benchmarks without such advertising.
Bertozzi, Giacomo, et al. “How much does digital advertising accelerate new product success?.” Applied Marketing Analytics 7.4 (2022): 318-328.
Please access the preprint version here: How much does digital advertising accelerate new product success_pauwelspreprint