Online Ads - Offline Purchases
Google, through display advertising, and services such as AdWords, receives roughly 1/6th of all advertising spend worldwide!
Although online advertising is more responsive and easier to track than traditional advertising (across newspapers, outdoor, TV and radio) it is hard to show a direct relationship between online advertising and offline purchases. While online shopping and e-commerce are rapidly growing, more than 90% of sales still occur offline.
Google is hoping to close the gap between online advertising and offline purchases by investigating the data held on consumers across:
- Google Search
- Google Maps
- Android Apps
- Android Phones
Mobile phone data, and bank transactions are particularly useful for this, and will allow Google to see where people go after being exposed to advertising, and if the ads are effective at convincing them to make purchases.
Google has estimated that by using this data, they will be able to track about 70% of all credit and debit card transactions, and link them back to online customer behaviour. Read the full article over at the Harvard Business Review.