Practice Prize Paper—Marketing's Profit Impact: Quantifying Online and Off-line Funnel Progression
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Inofec, a small- to medium-sized enterprise in the business-to-business sector, desired a more analytic approach to allocate marketing resources across communication activities and channels. We developed a conceptual framework and econometric model to empirically investigate (1) the marketing communication effects on off-line and online purchase funnel metrics and (2) the magnitude and timing of the profit impact of firm-initiated and customer-initiated contacts. We find evidence of many cross-channel effects, in particular, off-line marketing effects on online funnel metrics and online funnel metrics on off-line purchases. Moreover, marketing communication activities directly affect both early and later purchase funnel stages (website visits, online and off-line information, and quote requests). Finally, we find that online customer-initiated contacts have substantially higher profit impact than off-line firm-initiated contacts. Shifting marketing budgets toward these activities in a field experiment yielded net profit increases 14 times larger than those for the status quo allocation.
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This fragmented approach has resulted in limited understanding of how travellers move through the entire journey, particularly how experiences evolve across touchpoints and collectively shape outcomes such as satisfaction and loyalty.
“This fragmented approach has resulted in limited understanding of how travellers move through the entire journey, particularly how experiences evolve across touchpoints and collectively shape outcomes such as satisfaction and loyalty (Wiesel et al., 2011).”
From Influencers and the choice of a travel destination: A customer journey and information processing perspective (2025) · cites this paper as Wiesel et al., 2011
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“In addition, Dinner, Van Heerde, and Neslin (2014) found that paid search advertising is more effective than offline advertising, and Wiesel, Pauwels, and Arts (2011) also found the impact of a paid search is more enduring than that of e-mail.”
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“To derive the standard errors of the estimates, we use Monte Carlo bootstrapping with 1,000 runs (e.g., Wiesel, Pauwels, and Arts 2011).”
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“…has also explored how information in one channel leads to purchases in another channel (e.g., Ansari, Mela, and Neslin 2008; Joo et al. 2014; Wiesel, Pauwels, and Arts 2011) and how store redesigns are particularly effective for attracting and retaining profitable new customers (Dagger and…”
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“For CICs, 70.0% of elasticities (21 of 30) are significant, which is in line with previous studies that show that CICs are more effective than FICs (e.g., Li and Kannan 2014; Sarner and Herschel 2008; Wiesel et al. 2011).”
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“At the same time, contradictory evidence in the business-to-business sector suggests that direct mail is not effective in driving sales (Wiesel et al., 2011).”
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“We apply two-standard-error bounds to the point estimates, following the VAR literature (e.g., Sims & Zha, 1999) as well as standard practice in VAR applications in economics and finance (e.g., Bloom, 2009; Kelly & Jiang, 2014) and marketing science (e.g., Wiesel et al., 2011).”
BackgroundMethodHarmancioǧlu, N., & Tellis, G. J. (2018) · Journal of International Business Studies · doi:10.1057/s41267-018-0162-8 · Cited by 14 · see citing works
Lamberton, C., & Stephen, A. T. (2015) · SSRN Electronic Journal · doi:10.2139/ssrn.2675139 · Cited by 13 · see citing works
A Study on Malaysian Consumers’ Attitude and Behavioral Intention Towards Print Advertising
Chew, B. E., & Adis, A.-A. A. (2018) · International Journal of Marketing Studies · doi:10.5539/ijms.v10n2p132 · Cited by 10 · see citing works
“Based on data from Wiesel et al. (2011), online advertising generates 17 times more profit than print advertising.”
BackgroundMultiple Time Series Analysis for organizational research
Colicev, A., & Pauwels, K. H. (2020) · Long Range Planning · doi:10.1016/j.lrp.2020.102067 · Cited by 11 · see citing works
Self-citationKöster, A., Matt, C., & Hess, T. (2020) · Business & Information Systems Engineering · doi:10.1007/s12599-020-00660-1 · Cited by 11 · see citing works
The Effect of House Ads on Multichannel Sales
Goic, M., Álvarez, R., & Montoya, R. (2018) · doi:10.1016/j.intmar.2017.12.001 · Cited by 11
Online customer-initiated contacts and the development of profitable relationships
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Truly Accountable Marketing: The Right Metrics for the Right Results
Pauwels, K. H. (2015) · doi:10.1515/gfkmir-2015-0001 · Cited by 11
Self-citationDIGITAL MARKETING PERFORMANCE EVALUATION METHODS
Gaitniece, E. (2018) · CBU International Conference Proceedings · doi:10.12955/cbup.v6.1145 · Cited by 10
“Wiesel et al (2011) concluded that customer-initiated contacts have, in comparison with companyinitiated contacts, yielded much better returns in the traditional environment.”
BackgroundAttribution Modeling In Digital Advertising
Nisar, T., & Yeung, M. (2017) · Journal of Advertising Research · doi:10.2501/jar-2017-055 · Cited by 10
“…cross-effects of online and offline media in terms of how customers move through the purchase funnel found a very high sales elasticity for AdWords (4.35) and much lower sales elasticities (0.05 and 0.04) for flyers and faxes (i.e., other sales channels), respectively (Wiesel et al., 2011).”
BackgroundInfluentialMoving Forward: The Role of Marketing in Fostering Public Transport Usage
Gijsenberg, M. J., & Verhoef, P. (2019) · Journal of Public Policy & Marketing JPP&M · doi:10.1177/0743915619846869 · Cited by 9 · see citing works
Krywuczky, F., & Kleijnen, M. (2024) · Psychology & Marketing · doi:10.1002/mar.22104 · Cited by 8 · see citing works
Effects of online and offline advertising and their synergy on direct telephone sales
Lu, S., Singh, S., & de Roos, N. (2023) · Journal of Retailing · doi:10.1016/j.jretai.2023.06.001 · Cited by 8
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Modern (Multiple) Time Series Models: The Dynamic System
Pauwels, K. H. (2017) · International series in quantitative marketing · doi:10.1007/978-3-319-53469-5_4 · Cited by 8 · see citing works
Self-citation
- Authors
- Wiesel, T., Pauwels, K., & Arts, J.
- Affiliations
- University of Groningen (NL)
- Özyeğin University (TR)
- Vrije Universiteit Amsterdam (NL)
- ORCID
- Pauwels, Koen
- Venue
- Marketing Science
- Published
- 2011-07
- Volume
- 30
- Issue
- 4
- Pages
- 604-611
- ISSN
- 0732-2399 (ISSN-L)
- 1526-548X
- OpenAlex
- W2141950067
- Cited by
- 207
- References
- 0
- Citations by year
- 2026: 7 · 2025: 17 · 2024: 7 · 2023: 12 · 2022: 18 · 2021: 17 · 2020: 21 · 2019: 16 · 2018: 16 · 2017: 16 · 2016: 17 · 2015: 13 · 2014: 13 · 2013: 10 · 2012: 3
- FWCI
- 16.15
- Type
- journal article
- Language
- en
- Open access
- green
- research.rug.nl
- Licence
- other-oa
- Locations
- Marketing Science (publishedVersion)
- eResearch@Ozyegin (submittedVersion)
- University of Groningen research database (University of Groningen / Centre for Information Technology) (submittedVersion, other-oa)
- University of Groningen research database (University of Groningen / Centre for Information Technology) (submittedVersion)
- Funders
- Pennsylvania State University
- Rijksuniversiteit Groningen
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Marketing and Advertising Strategies
- Social Sciences › Sociology and Political Science › Digital Marketing and Social Media
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Keywords
- marketing resource allocation, purchase funnel, digital marketing, offline marketing, cross-channel effects, B2B marketing, small and medium-sized enterprises, website visits
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