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Cash-strapped e-tailers looking to improve their bottom line should think twice before shaving their Internet ad budget, said Charlie Buchwalter, vice president of media research for AdRelevance, a division of Media Metrix. According to a report released today by the Seattle-based Internet ad measurement service, a strong positive correlation exists between online advertising and visitors to e-commerce sites. “It doesn’t appear to be a good strategy to ratchet down online advertising budgets,” said Buchwalter. “Those who are advertising online intelligently and aggressively are translating that into increased traffic.”
The report, which looked at Internet ad impressions and traffic patterns for online retail sites between January and May 2000, revealed that as the number of ad impressions for e-tailers grew, so too did traffic to their sites.
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