Yahoo Knows How Well Ads Work

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A premium service from Yahoo will let advertisers know just how well online ads work for their sites, thanks to a deal with an econometric analysis firm.

Yahoo and Marketing Management Analytics have reached an agreement that should make a higher level of ad effectiveness information available to advertisers. The Wall Street Journal reported on the deal, which could spur online ad competitors like Google and Microsoft’s forthcoming AdCenter to make similar metrics available.

The Journal described econometrics this way:

A branch of economics, econometrics uses mathematical calculations to measure the relationship between different sets of events. To determine an advertisement’s effectiveness, analysts at companies such as MMA, a unit of London-based Aegis Group, use complex equations to estimate how factors such as weather, price cuts and advertising affect sales.

Advertisers can collect plenty of information on how many people see an ad. The disconnect comes for advertisers who need to know how that online activity drives sales offline. That’s where the MMA pact can benefit Yahoo.

“If you can show that interactive media can be measured on the same basis as other media, marketing executives can start to make informed decisions about how much to spend on it,” says Wing Pepper, MMA’s senior vice president for client service, said in the report.

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David Utter is a staff writer for WebProNews covering technology and business.

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