IAB, comScore: Online-Classifieds Yield Strong ROI

For some companies, the use of online local, directory, and classified advertising can generate substantial return on investment and online and offline conversion rates, according to a study released Monday by the Interactive Advertising Bureau and comScore Networks. The research--sponsored by CareerBuilder.com, Cars.com, Fathom Online, Verizon Superpages.com, and Volkswagen North America--also shows these text-based ad vehicles to have a significant impact on brand image.

Ford Rental Car, for instance, saw a 7.8 percent return on its classified expenses during an average month in 2005, and an average of 7 percent of consumers went on to make a purchase, comScore found. Sixty percent of conversions occurred online, and 40 percent occurred offline.

For the study, comScore tracked its opt-in consumer panel of about 1.5 million for those who searched using online directories for car rentals, clicked on Ford Rental Car, and completed their rental online. Surveys were then sent to consumers who were exposed to the listing, but did not complete the rental online in order to determine offline conversion rates.

"This study provides empirical evidence proving the effectiveness of online local and classifieds advertising, Erin Hunter, senior vice president of comScore's media and entertainment division, said in the report. "It is abundantly clear that small and large advertisers have a compelling opportunity to leverage the Internet as a powerful medium that drives conversion for local services."

The categories comScore studied included automotive, careers, construction and contractors, financial services, hospitality, professional services, real estate, and retail.

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