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Peapod: Online Ads Yielding Up to 30% CTR

Skokie, IL-based online grocer Peapod Inc. said a recent interactive marketing study it conducted on behalf of certain of its consumer packaged goods clients showed click through rates as high as 30 percent for ads on its Web site.

The study was comprised of 65 programs or events initiated on peapod.com by 24 major consumer packaged goods manufacturers. The events included in the study generated a total of 4.5 million banner views among Peapod's approximately 100,000 customers.

Peapod said the study also found that:

  • Teaser messages on banners, which made no direct mention of a brand being sold, increased click through rate by 30 percent. However, the study warns against overuse of this tactic as it may hurt performance if buyers become wary.

  • Shoppers typically viewed banners several times, but clicked on banners only once, even for very long running events, making the content of banner communication critical. The study concluded banners should not be viewed simply as a portal to further information.

"Understanding the effectiveness of online marketing activities allows us to get the best results for our packaged goods clients," said George Douaire, vice president and general manager for Peapod's interactive marketing services division. "Very few Web sites can point to the level of impact we can achieve by targeting promotions at the appropriate point of decision inside our Internet shopping environment."

Peapod is now marketing its customized and syndicated research services, including its CONSUMER DIRECTIONS learning cooperative, a subscription-based service that offers marketers a combination of media, testing and data deliverables derived from the Peapod technology.

Peapod currently provides grocery services in eight metropolitan markets in the United States.