The impact of TV advertising on website traffic

Abstract

AbstractWe propose a modeling procedure for estimating immediate responses to TV ads and evaluating the factors influencing their size. First, we capture diurnal and seasonal patterns of website visits using the kernel smoothing method. Second, we estimate a gradual increase in website visits after an ad using the maximum likelihood method. Third, we analyze the nonlinear dependence of the estimated increase in website visits on characteristics of the ads using the random forest method. The proposed methodology is applied to a dataset containing minute‐by‐minute organic website visits and detailed characteristics of TV ads for an e‐commerce company in 2019. The results show that people are indeed willing to switch between screens and multitask. Moreover, the time of the day, the TV channel, and the advertising motive play a great role in the impact of the ads.