The keys to the recovery of the high-end sector: e-commerce, data and innovation

[sujonkumar630]

Online advertising seems at first glance to be the ultimate in efficiency , but the truth is that its effectiveness has been exacerbated to infinity and beyond and it is not as fierce as it is painted. And there is also multiple proofs that attest to this.

A large-scale study of eBay advertising found that advertising effectiveness on the platform was overstated by a whopping 4,100%. And a similar analysis of Facebook found a 4,000% gap.

Despite tons of data at their disposal, advertisers still seem unable to answer the question posed back in the 19th century by retailer John Wanamaker : “How much of my company’s advertising spend is wasted money?”

In fact, it should be perfectly possible to answer this number database question in this day and age. There is certainly no information deficit. What really hinders advertisers in measuring the effectiveness of advertising is the systematic confusion between correlation and causality.

When advertising space is sold, those in charge of selling it boast that such advertising space will eventually lead to a change in behaviour on the part of the audience (a phenomenon commonly referred to as “lift”). And they reinforce this sales argument by putting the spotlight on the number of people who make a purchase after being confronted with an advertisement (the so-called conversion rate).