The two companies will invest $4.6 million on business analysis and psychological studies to determine how ads in traditional and digital media work together to influence consumer choices, according to a story in the Wall Street Journal.
Ad holding company WPP and Google have committed $4.6 million to a three-year program to investigate how traditional and digital media work together to influence consumer choices, according to a story in the Wall Street Journal.
Written by Emily Steel, the story says the venture marks the latest example of Madison Avenue and Silicon Valley working together to shed light on questions that face the industry as it tries to persuade marketers to spend more than a fraction of their budgets online.
The companies plan to unveil the first round of studies, which will take place at Harvard Business School, the Massachusettes Institute of Technology, Stanford University and other such institutions, today. The researchers will have direct access to up-to-date data from Google and WPP’s clients, which include Unilever and Ford, the story says.
Among other things, the studies will look into the best ways to allocate ad spending between traditional and digital media, as well as how online ads affect a company’s sales and brand image. They will also use psychology and neuroscience to analyze how the brain determines whether Web ads are relevant. And they will examine how Chinese Internet users respond to different online-ad formats, such as display and search ads, the story says.
Marketers and agencies can already get an indication of how Web ads work by counting how many people click on their ads, or by tallying the buzz generated by them in online blogs. But they would like to gain a better understanding of what makes Web campaigns likely to succeed, the story says.
The average marketer spends just 9.9% of its ad budget online, despite all the excitement about online advertising, according to Forrester Research. Digital ad spending has continued to grow even as marketers have cut back on conventional advertising.
WSJ Online subscribers may read the full story here.