The Impact of Digital Advertising on Sales

Sphere Quantitative Insights worked with a mid-sized U.S. firm to estimate the effectiveness of its digital advertising campaigns on sales outcomes. We designed several stratified, randomized experiments that tested the impact of various online advertising platforms, including Groupon, Facebook, and Google AdWords. Our experiments, in combination with econometric modelling, allowed us to produce causal estimates of the impact of advertising on gross sales by utilizing variation in sales across the firm’s various geographic locations. The firm’s leadership was able to use our findings to more efficiently direct its digital advertising dollars.