Shares of online grocer Peapod (Nasdaq: PPOD) soared more than 25 percent, rising 3-1/16 to 14-7/8 on Thursday after the company released figures about the success of advertising on its site.
Peapod announced the results of a study that found that some ads on its Web site resulted in click-through rates as high at 30 percent, which is a stellar number, considering most ad campaigns have click-through rates of less than 1 percent. The study also found that teaser messages on banners, which made no direct mention of a brand being sold, increased click-through rates by 30 percent, although overuse of this tactic might make buyers wary.
With so many companies flummoxed about how to create effective Web advertising, Peapod’s study establishes it as a frontrunner in online advertising research. That’s worth a lot in today’s Internet economy. More than 3.3 million shares of Peapod stock changed hands on Thursday, nearly five times the daily average.