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Practice paper

How much does digital advertising accelerate new product success?

Giacomo Bertozzi, Saeed R. Bagheri, Brett Graham, Peter Knowles, Oded Netzer and Koen Pauwels
Applied Marketing Analytics: The Peer-Reviewed Journal, 7 (4), 318-328 (2022)
https://doi.org/10.69554/IPZS9329

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.

Keywords: advertising; digital; new products; take-off; page views; purchase conversion; online reviews

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Author's Biography

Giacomo Bertozzi Born in Italy, Giacomo Bertozzi joined Amazon Advertising in 2016 in Milan. He is currently a Senior Analytics and Media Manager. He works with sales, product, retail and other Amazon business partners to analyse and improve advertisers’ performance on Amazon, in support of their marketing initiatives. Giacomo graduated from a double degree programme in international management between Bocconi University, Milan and Fudan University, Shanghai.

Saeed R. Bagheri is Director of Analytics and insights at Amazon Advertising, developing insightbacked recommendations to adopt Amazon Advertising’s offerings when and in a way that is helpful to advertisers. Saeed received his BS from Sharif University of Technology, two MS degrees and a PhD from MIT. Prior to joining Amazon, Saeed led GroupM’s Global Data and Analytics Product and R&D team and led the Global Healthcare Services Innovation Topic at Philips Research.

Brett Graham Originally from Jamaica and Belize, Brett joined Amazon Advertising in 2017. From 2017 to 2021, he established the Analytics and Media Management team and led the group’s Learning White Paper programme. In January 2022 he joined Oracle Advertising as Senior Director of Analytics and Insights. He has built brands for leading advertisers and agencies including Coca-Cola, Hyundai, McDonald’s, OMD, Procter & Gamble, Starcom Mediavest Group and Western Union. Brett is a graduate of the University of London's SOAS program, where he earned a masters in Financial Management, and a triple graduate of Texas A&M University, where he earned bachelor's degrees in Geophysics, Physics and a masters in Business Administration.

Peter Knowles is a data translator with experience delivering actionable insights to a range of industries including eCommerce, digital advertising and fitness, as well as commercial litigation. Peter holds a bachelor’s degree in Economics from Boston College and a Master of Business Administration from Cambridge, Judge Business School.

Oded Netzer expertise centres on one of the major business challenges of the data-rich environment: developing quantitative methods that leverage data to gain a deeper understanding of customer behaviour and guide firms’ decisions. In addition to his role as the Arthur J. Samberg Professor of Business at Columbia Business School, he is also an Amazon Scholar. Oded has published numerous papers in the leading scholarly journals and won multiple awards.

Koen Pauwels is Principal Research Scientist at Amazon Advertising’s Analytics and Insights. He received his PhD from UCLA, where he was chosen Top 100 Inspirational Alumnus. After tenure at the Tuck School of Business at Dartmouth, Koen helped build start-up Ozyegin University in Istanbul and became Distinguished Professor at Northeastern University. Named a Top 2 per cent scientist, Koen has published 85 award-winning articles on marketing effectiveness and shares consultancy insights in books and blogs.

Citation

Bertozzi, Giacomo, Bagheri, Saeed R., Graham, Brett, Knowles, Peter, Netzer, Oded and Pauwels, Koen (2022, March 1). How much does digital advertising accelerate new product success?. In the Applied Marketing Analytics: The Peer-Reviewed Journal, Volume 7, Issue 4. https://doi.org/10.69554/IPZS9329.

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cover image, Applied Marketing Analytics: The Peer-Reviewed Journal
Applied Marketing Analytics: The Peer-Reviewed Journal
Volume 7 / Issue 4
© Henry Stewart
Publications LLP

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