Not only can the internet be used as an information-gathering tool, but it can also be an
Question:
Not only can the internet be used as an information-gathering tool, but it can also be an effective way for firms to advertise their products. In 2001, advertising of all types decreased, but online advertising dropped dramatically. This was because there was no good evidence that Internet advertising generated sales. In 2003, the European Interactive Advertising Association (EIAA) examined 15 major Internet advertising campaigns in the United Kingdom, France, and Germany to find out if Internet advertising had any major impact on consumers. A panel of consumers was used, some of whom saw the ad campaigns only on the Internet, some on the Internet and television and other media, and some who saw the ad campaigns only on television and other media. The study found that brand awareness was increased by online advertising alone. The aggregate reach of the ad campaigns from television was 41 percent. When people exposed only to Internet advertising were included, the ads reached 63 percent. Ad recall from exposure to television increased by 27 percent. But when both TV and the Internet campaigns were seen by consumers, the ad recall almost doubled, to 45 percent. Of even more interest to advertisers was the result that persons exposed to TV campaigns only had an increased intent to buy of 2 percent, but this rose to 12 percent when consumers were exposed to both the television and Internet ad campaigns.
Why do you suppose Internet advertising has such dramatic effects on intent to buy?
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