Offline marketing may beat online platforms like social media, direct email, and mobile apps in triggering desired consumer behaviors, a new study has found. This is despite marketers’ current increasing reliance on online marketing strategies, a team of Japanese researchers reported.
Examples of traditional offline promotions include printed coupons, direct mail advertisements, billboards, in-store promotions, and newspaper inserts.
The Online vs. Offline Marketing Question
We know that consumers recall promotional content better and have a more favorable perception of advertised products when exposed to offline marketing. However, until this latest research, whether online media marketing outperformed its offline counterpart, or vice versa, had been a mystery.
To explore this question, a team of academics from Japan, including Associate Professor Taku Togawa from Sophia University, Associate Professor Hiroaki Ishii and Professor Naoto Onzo from Waseda University, Assistant Professor Soonho Kwon from Kanagawa University, and Professor Ikumi Hiraki from Tokyo International University, conducted a comparative study. They examined the effects of online and offline sales promotional media on consumer behavioral responses.
They wrote about their study and findings in the Journal of Advertising Research, December 1, 2024 (citation below).
A Major Field Study with Fujifilm
The researchers carried out a field experiment involving 7,500 Fujifilm customers. Both offline and online promotional coupons were sent to them.
The research team divided the participants into three groups:
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Offline First Group (Offline + Online)
This group received offline promotional coupons first and then online, that is, they received the coupons by direct mail (traditional mail) followed by email.
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Online First Group (Online + Offline)
Another group received the coupons online and then offline, that is, via email, followed by direct mail.
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Online Only Group (Online + Online)
The third group received online coupons twice, that is, via email and then via email again.
The research team calculated what percentage of customers used the coupons and followed up with a survey to evaluate participants’ interactions with the media, their cognitive engagement, and their attachment to the Fujifilm brand.
Offline Marketing Won
Surprisingly, the study results showed that the Offline-First Group had the highest redemption rate while the Online-Only Group had the lowest rate.
The customers’ cognitive engagement directly affected coupon redemption behavior, the authors wrote.
Lead author, Prof. Togawa, said:
“Printed coupons increase cognitive engagement, which in turn promotes redemption behavior.”
They also found that consumers with low brand attachment were more likely to cognitively engage with the coupons’ contents and subsequently redeem them.
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Costs and Total Sales
Promoting coupons offline was much more expensive, costing $4,500 for the Offline-First and Online-First groups, compared to $0 for the Online-Only group. However, offline promotional couponing resulted in significantly higher sales.
Estimated sales totals were as follows:
- Offline-First Group – $13,000
- Online-First Group – 11,100
- Online-Only Group – $2,200
Prof. Togawa explained:
“The higher costs of offline marketing are justified by the substantial increase in sales they drive.”
Online vs. Offline Marketing Study in the Lab
The researchers also carried out a laboratory study involving 127 undergraduate volunteers. They distributed make-believe (fictitious) online and offline (printed) coupons for a discount on IKEA furniture and Starbucks drinks.
They performed an online survey to assess the volunteers’ intention to redeem the coupons and their cognitive engagement. The results showed, as in the field study, that their intention to redeem the offline coupons was higher for both products.
The intention to use the offline coupons was high for both products. Similar to the field study results, offline marketing had a stronger effect on coupon usage compared to online marketing. This effect was more noticeable among participants with low attachment to the brands, while it was weaker for those with high brand attachment.
Prof. Togawa noted:
“Our findings indicate that offline promotional media have an important role in triggering consumer behavior even in this digital age.”
The authors also added that further research is required to determine what the effects of offline marketing are on consumer behavior in a range of contexts (e.g., cross-national studies).
This study shows the benefits of offline marketing in influencing consumer behavior and provides important insights for marketers. It highlights the importance of cognitive engagement and brand attachment, helping marketers create more effective and focused promotional strategies.
Citation
Togawa, T., Ishii, H., Kwon, S., Hiraki, I., & Onzo, N. (2024). Effects of Offline Versus Online Promotional Media on Consumer Response: Can Print versus Online Coupons Be More Effective at Increasing Redemption Behavior? Journal of Advertising Research, 64(4), 416–429. https://doi.org/10.2501/JAR-2024-030