The CEO of analytics firm comScore, Magid Abraham, is announcing that his company’s studies have unearthed an unusual trend in online advertising, in that commerce gains from the spread of web-based advertising have in fact benefited physical stores more than purely online operations. According to ComScore research, businesses that operate primarily in brick and mortar stores but use online advertising and online sales portals have seen impressive increases in walk-in trade as opposed to online sales and services.
ComScore admits that the results of its research are based on an opt-in approach to gathering data and are therefore limited in scope, but Abraham says that the recent results, including information from a major retailer that sees over USD15bn in annual revenues, showed notable results.
The studies showed that in a three month period, sales by US businesses operating physical stores with online operations saw a sales increase of 40% online and 50% off-line, taking into account the considerably greater base volume of offline sales.
As an overall trend, Abraham says that raw sales increases saw a substantially larger return from online ads as opposed to online sales. Abraham declined to comment on possible reasons for the differential, as the studies did not provide a direct correlation to consumer concerns over online sales such as security or physical issues such as travel time and fuel for offline sales.