Yahoo announced today that it is launching AdLabs – a research center devoted to uncovering internet ad insights and consumer behavioral trends. The new research project aims to bring scientific precision to the art of internet marketing.
The company explains that Yahoo Labs has been important in culling data relevant to the development of its own ad products. Now, it hopes to bring Yahoo Labs' intensive research and analysis to the realm of ad targeting in an effort to advance online advertising.
“Successful campaigns change perceptions about brands and increase sales. Marketers need new, breakthrough, scientifically tested methodologies to drive these important metrics,” said Ken Mallon, Yahoo vice president and head of Yahoo AdLabs.
To shed light on the kinds of metrics AdLabs will provide, the company has also released the results of a breakthrough study of online ads in the retail industry. The study uncovered some interesting insight on the ROI of hyperlocal versus local campaigns that might make marketers want to reach out to their next-door neighbors.
Yahoo found that customers living within five miles of a store delivered four times marketers' ad-spend, while return-on-ad spend was 21 times the spend for those consumers living within two miles of a store. The company hopes to deliver more insight of this nature for marketers across industries.
Yahoo AdLabs may provide necessary insight on the ROI that some marketers feel they need to take the plunge into the internet ad realm. Brafton reported earlier today that marketers cite internet advertising as a top focus this year, but uncertainty about the efficacy of the channel holds them back from further investment.
