Television and Digital Advertising: Second Screen Response and Coordination with Sponsored Search

Speaker:

Shawndra Hill - Senior Researcher, Microsoft Research NYC

Talk Abstract:

We consider the potential to improve the eciency and ecacy of broader advertising eorts through cross-channel coordination. Past work has demonstrated a positive relationship between television advertising and online search activity. Here, we consider the types of devices on which search response predominantly manifests following TV advertisements, and the degree to which shifts in search activity can be used to evaluate the success of TV advertisers' targeting eorts.We leverage data on TV advertising around Microsoft Windows 10 and an Xbox app (NFL Game Day Evolution), in combination with large-scale proprietary search data from Microsoft Bing. Our ident cation strategies hinge on a combination of geographic heterogeneity in TV advertising exposure and continuous variation in the cost of TV advertisements (a proxy for TV audience size). Werst demonstrate that search response peaks within three minutes of the airing of a TV advertisement, and that this manifests primarily via second-screen mobile devices. Our estimated elasticities indicate that a 20% increase in advertising spend equates to an approximate 2.5% (3.4%) increase in search volumes for Windows 10 (the Xbox app). Second, we show that, indeed, the demographic groups targeted by TV advertisements are those most likely to respond, and we thereby demonstrate that TV ad eectiveness can be usefully measured via online search data. Third, examining sponsored search clicks in our query-level data, for queries involving brand-related keywords, we demonstrate a sign cant increase in rank-ordering effects in searches that take place in the minutes immediately following a TV advertisement, which implies a complementarity between TV and sponsored search advertisements.

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