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Tuesday, June 24, 2008

Do Ads Work?

Also mentioned in the Times article cited below - "Google is expected this week to roll out another tool designed to show how people browsing the web respond to online advertising. By comparing the behaviour of people who are exposed to particular adverts with those who are not, the company hopes to give advertisers feedback about which campaigns are are successful."

This may be one of the first instances where advertising has been evaluated in the spirit of randomised controlled trials. I'm not aware of the literature on advertising evalauation, but I suspect that its very hard to design a (realistic) experiment when most advertising hits the entire population. However, the targeting capabilties of web advertising mean that treatment and control groups can be established far easier. In saying all of that, we stil have to remember that web advertising is a different beast to other forms of commercial campaign.

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