Yahoo Delves Into Digital Advertising Research with AdLabs Group

By Laura Stotler February 03, 2011

Yahoo has launched the Yahoo AdLabs group to promote innovation in digital advertising products through its Yahoo Labs industrial research organization. The company also released the results of its multi-part study of online advertising in the retail industry in tandem with the AdLabs launch.

The study focused on hyperlocal ad targeting, believed to be one of the most important new tools available to online marketers this year. It found that hyperlocal targeting of a retail display campaign generated more than five times return-on-ad spending, measured by sales lift at the retailer. In-store purchases accounted for 75 percent of the total return, while customers who live within two miles of the one of the retailer's stores represented 10.6 percent of the audience seeing the ads, generating a whopping 56 percent of the revenue.

"Successful campaigns change perceptions about brands and increase sales. Marketers need new, breakthrough, scientifically-tested methodologies to drive these important metrics," said Ken Mallon, vice president and head of Yahoo AdLabs. "Yahoo has the scale to measure the impact of many campaigns and the breadth of expertise to produce the new models and innovations that will move the digital advertising industry forward."

The hyperlocal ad study also found that return-on-ad spending was four times the spending for customers living within five miles of a store and 21 times the spending for customers living within two miles of a store. The multi-part study is using a controlled experiment conducted to quantify the effects of this type of ad targeting.

"Yahoo Labs has been instrumental in developing Yahoo's advertising products, laying a foundation of scientific research and innovative data analysis, supporting everything from the world's most advanced display advertising marketplace to the world's most effective ad targeting capabilities," said Dr. Prabhakar Raghavan, Yahoo's chief scientist and head of Yahoo Labs. "AdLabs will build on this success and break new ground in combining scientific rigor with a deep understanding of the practical needs of marketers."

"As media models fragment, so too do the models for understanding their effectiveness. At the same time, with more people doing more online and ad spend going up, marketers need answers more than ever," said Ted McConnell, executive vice president, Advertising Research Foundation. "Yahoo, with its diverse but integrated palette of options, provides a great Petri dish for experimenting with new measures. I, for one, am delighted that Yahoo is taking this challenge head on, and I feel certain the entire industry will benefit."

Want to learn more about the latest in communications & technology? Then be sure to attend ITEXPO East 2011, taking place Feb 2-4, 2011, in Miami. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.




Edited by Tammy Wolf

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More