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How much does digital advertising accelerate new product success?

Author

Listed:
  • Bertozzi, Giacomo

    (Senior Analytics and Media Manager, Amazon Advertising, USA)

  • Bagheri, Saeed R.

    (Director of Analytics and Insights, Amazon Advertising, USA)

  • Graham, Brett

    (Senior Director, Oracle Advertising, USA)

  • Knowles, Peter

    (Data Translator, Amazon Advertising, USA)

  • Netzer, Oded

    (Arthur J. Samberg Professor of Business, Columbia University and Amazon Research Scholar, Amazon Advertising, USA)

  • Pauwels, Koen

    (Principal Research Scientist, Amazon Advertising, USA)

Abstract

Many new products are launched in e-commerce. While advertising is believed to enhance new product success, managers often lack the numbers to quantify this benefit to the company. Retail websites offer specific success benchmarks, such as pre-purchase product views, purchase conversion and post-purchase reviews. This paper’s main thesis is that while new products can succeed with or without advertising, digital advertising can help products achieve success faster. Across five categories, this research shows that digital advertising on Amazon.com can cut the time needed to reach success levels by more than half, compared to products that reach these same benchmarks without such advertising.

Suggested Citation

  • Bertozzi, Giacomo & Bagheri, Saeed R. & Graham, Brett & Knowles, Peter & Netzer, Oded & Pauwels, Koen, 2022. "How much does digital advertising accelerate new product success?," Applied Marketing Analytics: The Peer-Reviewed Journal, Henry Stewart Publications, vol. 7(4), pages 318-328, March.
  • Handle: RePEc:aza:ama000:y:2022:v:7:i:4:p:318-328
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    More about this item

    Keywords

    advertising; digital; new products; take-off; page views; purchase conversion; online reviews;
    All these keywords.

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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