24 Mar Study of the Year – BVM Congress 2007
Measurement of the efficiency of eBay’s online advertising. The current approach to advertising efficiency measurement in online marketing has focused on the relationship between clicks on an ad and the subsequent revenue generated by the sales.
All advertising contacts on home computers of more than 1000 users were monitored over a course of 4 weeks in cooperation with the partner Ebay.
In light of the rising expenses for online advertising, the relevance of efficiency tests of this particular form of advertising has become highly important. The current approaches fall short of expectations, as they only take into consideration the relationship between clicks on an ad and the generated sales.
Our experimental approach investigates, in a between subjects design, the effect of performance frequency of eBay ads in relation to the number of eBay page views and the number and amount of successful and unsuccessful bids on eBay.
With the aid of our Ad Selector Tools, performance of eBay ads was systematically varied and registered over a period of four weeks: the control group saw 100% of eBay ads on other websites, the experimental group only 30%. It was now possible to conduct an Internet panel study on a large sample (N=1481) and to statistically determine effects of the different performance frequency.
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