Impact of Internet Advertisement and Its Features on E-Commerce Retail Sales: Evidence from Europe

Abstract

The stimulus to carry out this research is to investigate the relationship between internet advertisement and its features on the total E-commerce sales of the top five countries of Europe. The units of analysis are the individuals of UK, France, Italy, Germany and Netherland. Secondary data are collected from the reports of [1] (ADEX, 2010) and [2] (Eurostats, 2011). To empirically determine the relationship between independent variable and dependent variable in the European context, the study uses various statistical techniques, including OLS regression and correlation analysis techniques. The empirical findings indicate that the Internet advertisement features of search advertisement and classified advertisement ha ve positive significant relationship with the E-commerce sales in Europe. The empirical findings indicate negative significant relationship of display advertisement with the E-commerce sales in Europe. However, this variable is also justified with the help of literature. Findings also demonstrate that search advertisement has strong positive relationship and it generates positive influence for the E-commerce sales as compared to the classified advertisement and display advertisement. Firms and marketers which are investing in online advertisement will find these results useful as they can get better sales and can use these features of online advertisement in order to maximize the sales of their products and services.