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Digital Advertising Impact on Sales (on the Example of U.S. Retail Companies)

Student: Yuliya Sapozhnikova

Supervisor: Evgeny Tsaplin

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Bachelor)

Year of Graduation: 2020

Today, the rapid rise of the Internet and the sustained development of technology are challenging the long-present retail landscape. As retailers are forced to adapt their business models to the disrupting environment, digital advertising tools are gaining particular importance. However, while the U.S. retail companies have readily embraced the online advertising channel and began harnessing its potential to deliver sales, Russia’s retailers still seem to question the effectiveness of digital advertising in terms of sales and thus remain rather reluctant to transform their retail marketing strategies. The present study aims to demonstrate the positive sales impact of online marketing in relation to Russian retail segment. Considering the fact that this issue remains mostly underinvestigated in current studies, we expect to provide some useful insights to all interested parties. Key words: digital advertising, retail advertising spending, advertising sales impact, retail digitalization

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