Critique Report Yahoo Consumer Direct
Was the research well designed? Was it a good research?
The research is an example of a good research and well designed as follows. Firstly, the research purpose is clearly defined as a tool to evaluate the effectiveness of Yahoo banner ads from ad exposure to shopping behaviour. The scope is limited to the ad placement on Yahoo only. Secondly, the research procedure is well detailed, e.g. the steps to acquire participants, well informed consent, sampling methods, representativeness and data collection procedures. Other search engine could also conduct similar research under these settings. Thirdly, the research design is well planned with identified ...view middle of the document...
the control group) with certain propositions and observing test participants’ purchasing behaviour. After that, it analysed and compared with two test groups data and generalized conclusion.
Although the case does not imply the methodology, it should be using a quantitative method because this research tried to describe the consumers’ purchases phenomenon thoroughly and insightful. Meanwhile, it had attempted to test the correlation between one variable and another variable such as comparing of a group of households that did not see the tracked advertising with a group of households that were exposed to tracked CPG ads. Besides, since a sample size of the research was approximately 2,000 households for the test group, the quantitative method should be more appropriate.
How was the Research conducted?
The research was conducted by asking Homescan panelists to opt in to a joint Yahoo/Homescan panel whereby their Yahoo ad behaviour would be linked to their offline purchase information. 19,000 visitors opted in to the new panel.
Yahoo divided the participants into 2 groups – a test group and a control group. The control group are households that didn’t see the tracked advertising but were members of the Homescan panel. Test households were exposed to tracked CPG ads when visiting Yahoo sites.
Consumer Direct then tracks firstly the effectiveness of ad targeting by determining whether there is increased likelihood of buying activities by visitors who are exposed to the ads. Secondly, it tracks the persuasiveness of the ad advertising by looking at the percentage of households buying advertised product.
Through analysing buying behaviours and quantity purchased, Yahoo was able to monitor and measure the effectiveness of the ads. As a result, they were able to help its advertisers more effectively target ad contents to those more likely to purchase. According to Ken Mallon, Yahoo’s director of insights products, every single Consumer Direct client has experienced sales lift/increase. In other words, this research was successful.
Did the Research answer all the managerial questions?
To answer this, we first need to identify the managerial questions. They are:
1. Since no one goes online to search out information on paper towels, soup or boxed dinners and bar soup (consumer-packaged...