August 5, 2010—The IAB releases “An Evaluation of Methods Used to Assess the Effectiveness of Advertising on the Internet,” which examines the methodology behind site intercept studies, a common form of consumer advertising effectiveness research. It is the first thorough, public assessment undertaken of the state of online ad effectiveness research.

The IAB will be leading an industry effort to undertake additional research to ensure that brand-effectiveness studies adhere to established principles for the conduct of market and consumer research.

Through a detailed review of relevant academic literature and multiple interviews with experts at research vendors and media companies, Dr. Lavrakas concludes that three prevalent flaws in site intercept studies jeopardize their results:

The validity of Interactive Advertising Effectiveness (IAE) research is “threatened...by the extremely low response rates achieved in most IAE studies”
The research is also “threatened by the near-exclusive use of quasi-experimental research designs rather than classic experimental designs”
The research is compromised by “a lack of valid empirical evidence that the statistical weighting adjustments...adequately correct for the biasing effects” created by the two preceding issues.

The IAB Research Council commissioned Dr. Lavrakas to provide a foundation for a comprehensive initiative that will improve online brand effectiveness research. As next steps, the IAB will:

Launch a cross-industry task force to help the interactive advertising ecosystem better understand how these studies impact the broader supply chain, and suggest ways to minimize potential inefficiencies they may create
Create a set of U.S. best practices for online brand impact ad effectiveness studies that will include recommendations for marketers, advertising agencies, research vendors and publishers
Use Dr. Lavrakas’s report to identify and develop valuable research for understanding and improving online ad effectiveness studies

Download: Evaluation of Methods Used to Assess the Effectiveness of Advertising on the Internet
For more information, please contact Joe Laszlo at Joe@iab.net.