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Search Engine Advertising Effectiveness in a Multimedia Campaign
Abstract
Search engine advertising has become a multibillion-dollar business and one of the dominant forms of advertising on the Internet. This study examines the effectiveness of search engine advertising within a multimedia campaign, with explicit consideration of the interaction effects between search engine advertising and television and banner advertising. An advertising tracking study with about 300 respondents interviewed before and about 4,700 respondents interviewed after the advertising campaign examines the effects on four consumer metrics: advertising awareness, brand awareness, brand image, and brand consumption. We estimate advertising effectiveness and control for correlations across the four ordinal response metrics using a multivariate ordered probit model. The results show that search engine advertising has significant effects on several consumer metrics, even among consumers who do not click on the sponsored advertisement. Television advertising also affects the consumer metrics. However, a negative interaction effect emerges between search engine advertising and television advertising. Banner advertising exerts a positive impact, but only in combination with television advertising. These substantial interaction effects indicate that firms must consider the investments in various media channels simultaneously when they design multimedia campaigns.
... Google offers more than 81 different customer-facing products [19], many of which can be used to serve ads [50,83]. In 2020, 80.5% of Google's revenue was derived from its various roles in the digital advertising market. ...
... Various studies and terminologies have been used to associate automation and digital advertising [3,54,83]. For example, using automation for advertising is sometimes referred to as computational advertising-defined as advertising activities supported or enabled by computational tools and algorithms [80]. ...
... The majority of Google's changes appear to add features, but adding a feature does not always imply that the advertiser gains more decision-making power [83]. Rather, it can also mean replacing human tasks previously overseen by the advertisers. ...
Businesses are increasingly delegating activities in the advertising process to dominant online advertising platforms. This delegation yields the ad platforms tremendous power, akin to the principal–agent dilemma discussed in economics. One of the major platforms is called Google Ads—this platform is the focal point of our study. Over the years, Google has made substantial changes to its platform’s features, which, in turn, govern what is possible and what is not for the advertisers. These changes impact the advertisers’ ability to act independently and make their own choices, referred to as human agency. To better understand this impact, we examined 362 industry news articles reporting changes in Google Ads from 2015 to 2020. The findings indicate that while most changes increase human agency, this effect is becoming weaker over time, driven by automation. To better understand advertisers’ attitudes towards automation, we surveyed 193 advertisers with Google Ads experience. Contrary to the popular belief that marketers are afraid of being replaced by algorithms, we found this to not be the case. Even though most advertisers indicated appreciation for maintaining their human agency, they did not perceive this agency being violated by the ad platform. However, we did observe interesting variability among respondents, reflected in three computational advertising attitude types: tinkerers, instrumentalists, and shepherds. We discuss the implications for advertisers in terms of strategizing in the face of reduced human agency and for ad platforms in terms of designing features that advertisers perceive as fair.
... The use of technology empowered the customers and made them aware of the product features and most of them have information about the product use and their prices (Wajid et al., 2021). As a result, customers will not be persuaded by the content that is posted on social media because they are aware of false advertising (Zenetti et al., 2014). Therefore, it is difficult for companies to understand the consumption patterns of the consumers (Seyedghorban et al., 2016). ...
... An online advertisement study (Zenetti et al., 2014) uses the behavior response model (Cho and Cheon, 2004) to explain traditional cognition. Customer behavior takes into account both behavior and mechanical aspects of advertisement avoiding, as stated by Speck & Elliott (1997). ...
... When defining each narrative, cognitive ad avoidance is a psychological defense mechanism (Kelly et al., 2010;Zenetti et al., 2014). Consumers intentionally ignore a message that they are expected to receive (Song et al., 2014). ...
In recent years, due to the extensive use of social media advertisement and the development of social commerce tools, scholars and practitioners pay more attention to interaction with the digital channel, shopping intention, satisfaction, and retention. The objective of this study is to understand the shopping cart abandonment behavior as an outcome condition of ad avoidance on social media platforms. This research takes into consideration of cognitive, affective, and behavioral ad avoidance; alongside its antecedent conditions of perceived goal impediment, perceived add clutter, and prior negative experiences on social media. The research is conducted in Germany and Fuzzy sets/Qualitative Comparative Analysis (fs/QCA) is applied to understand the outcome condition of shopping cart abandonment. The findings imply that ad avoidance can create a learning mechanism for consumers about shopping cart abandonment of a brand or product if interrupted by a futile message or content. Theoretical and practical implications are discussed.
... It is recommended that future research considers the inclusion and comparison of campaigns from different sectors. Indeed, most literature focuses on the analysis of one specific company (e.g., Abrahams et al., 2014;Alby & Funk, 2011;Atkinson et al., 2014;Ghose & Yang, 2008Klapdor et al., 2014;Moral et al., 2014;Rutz & Bucklin, 2007;Zenetti et al., 2014). Surveys enable to collect data not only from several companies but also from several sectors, which could be compared in the case the samples are large enough. ...
... Impressions(Geddes, 2014;Google, 2021b;Zenetti et al., 2014); • Traffic volume (Moral et al., 2014); • Number of pages per visit (Moral et al., 2014); • Average visit time (Moral et al., 2014); • Bounce Rate (Moral et al., 2014; Sculley et al., 2009); • Return rate (Lu & Zhao, 2014; Moral et al., 2014); • Lifetime value of the customer (Geddes, 2014; Google, 2021b; Lu & Zhao, 2014; Smith, 2002); • Click through rate (Barry & Charleton, 2009; Geddes, 2014; Google, 2021b; Jansen & Clarke, 2017; Jansen et al., 2009, 2013; Kim et al., 2014; Lu & Zhao, 2014; Sculley et al., 2009; Zenetti et al., 2014); • Conversion rate(Barry & Charleton, 2009;Geddes, 2014;Google, 2021b;Jansen & Clarke, 2017;Jansen et al., 2013;Lu & Zhao, 2014;McDonald, 2014;Rutz & Bucklin, 2007;Zenetti et al., 2014); • Return on investment(Alby & Funk, 2011;Barry & Charleton, 2009;Geddes, 2014;Google, 2021b;Jansen et al., 2013; Kim et al., 2014;Lu & Zhao, 2014). ...
... Impressions(Geddes, 2014;Google, 2021b;Zenetti et al., 2014); • Traffic volume (Moral et al., 2014); • Number of pages per visit (Moral et al., 2014); • Average visit time (Moral et al., 2014); • Bounce Rate (Moral et al., 2014; Sculley et al., 2009); • Return rate (Lu & Zhao, 2014; Moral et al., 2014); • Lifetime value of the customer (Geddes, 2014; Google, 2021b; Lu & Zhao, 2014; Smith, 2002); • Click through rate (Barry & Charleton, 2009; Geddes, 2014; Google, 2021b; Jansen & Clarke, 2017; Jansen et al., 2009, 2013; Kim et al., 2014; Lu & Zhao, 2014; Sculley et al., 2009; Zenetti et al., 2014); • Conversion rate(Barry & Charleton, 2009;Geddes, 2014;Google, 2021b;Jansen & Clarke, 2017;Jansen et al., 2013;Lu & Zhao, 2014;McDonald, 2014;Rutz & Bucklin, 2007;Zenetti et al., 2014); • Return on investment(Alby & Funk, 2011;Barry & Charleton, 2009;Geddes, 2014;Google, 2021b;Jansen et al., 2013; Kim et al., 2014;Lu & Zhao, 2014). ...
Despite its popularity, search engine advertising is a particularly complex and demanding technique. One of the main challenges for Google Ads managers is to adequately monitor performance. Indeed, the literature identifies a plethora of metrics to measure the success of a search engine ads campaign. One research question arises: What are the metrics adopted by small and medium-sized companies to measure the performance of a Google Ads campaign? This chapter includes a mixed-method study with digital marketing professionals experienced in managing Google Ads campaigns for Portuguese SMEs. Interviews helped highlight the main difficulties faced by SEM's Google Ads' managers and to identify the performance measures they mostly control. Then, a survey enabled to analyse the association between performance measures and campaigns' perceived success. The insights produced by this chapter are particularly interesting for researchers, teachers, business managers, and digital marketing professionals, as it presents important clues on measuring the effectiveness of Google Ads campaigns.
... A considerable amount of research has examined the relationship between the exposure to online advertising and its effects (e.g., Asghar, Abbasi & Zafarullah, 2015;Duffett, 2017;Hong, 2014;Martín-Santana & Beerli-Palacio, 2012;Schivinski & Dabrowski, 2015;Zenetti, Bijmolt, Leeflang & Klapper, 2014). Martín-Santana and Beerli-Palacio (2012) disclosed that exposure to online ads relates significantly and positively with the cognitive, affective and behavioral effects of advertising. ...
... Martín-Santana and Beerli-Palacio (2012) disclosed that exposure to online ads relates significantly and positively with the cognitive, affective and behavioral effects of advertising. Zenetti, Bijmolt, Leeflang, and Klapper (2014) also found that exposure to search engine ads has a positive impact on both advertising awareness (cognitive effect) and brand consumption (behavioral effect). Schivinski and Dabrowski (2015) also found that social media brand communications positively affected cognitive responses, and likewise, Duffett (2017) demonstrated that social media promotion, including advertising, has a significant impact on cognitive, affective and behavioral attitudes components. ...
... The third important finding of this study is that respondents' engagement with YouTube advertising has a significant and positive impact on its cognitive, affective and behavioral responses. This result is different from Hong (2014) that found that online ads have some negative cognitive, affective and behavioral effects, and it reinforces Martín-Santana and Beerli-Palacio (2012) study that disclosed that exposure to online ads relate significantly and positively with cognitive, affective and behavioral effects of advertising, and it also agree with Zenetti, Bijmolt, Leeflang, and Klapper (2014) also found that exposure to search engine advertising has a positive effect on both advertising awareness (cognitive effect) and brand consumption (behavioral effect). ...
... Sponsored search advertising has evolved into one of the most prominent online advertising channels [66]. Millions of advertisers choose search advertising to promote their products and services, taking advantage of precise targeting [9], low advertising costs [53] and high return on investment [28,31]. ...
... In experiments on Dataset-1, we increase the total campaign budget from 2,000 to 20,000 by a step of 2,000, which is allocated to the two adgroups at the ratio of 2:1. For the second dataset, the total cost of these keywords in target ad campaign is 66,786. In experiments on Dataset-2, we increase the total campaign budget from 10,000 to 70,000 by a step of 10,000, which is allocated to the three adgoups at the ratio of 3:2:1. ...
In sponsored search advertising, advertisers need to make a series of keyword decisions. Among them, how to group these keywords to form several adgroups within a campaign is a challenging task, due to the highly uncertain environment of search advertising. This paper proposes a stochastic programming model for keywords grouping, taking click-through rate and conversion rate as random variables, with consideration of budget constraints and advertisers' risk-tolerance. A branch-and-bound algorithm is developed to solve our model. Furthermore, we conduct computational experiments to evaluate the effectiveness of our model and solution, with two real-world datasets collected from reports and logs of search advertising campaigns. Experimental results illustrated that our keywords grouping approach outperforms five baselines, and it can approximately approach the optimum in a steady way. This research generates several interesting findings that illuminate critical managerial insights for advertisers in sponsored search advertising. First, keywords grouping does matter for advertisers, especially in the situation with a large number of keywords. Second, in keyword grouping decisions, the marginal profit does not necessarily show the marginal diminishing phenomenon as the budget increases. Such that, it's a worthy try for advertisers to increase their budget in keywords grouping decisions, in order to obtain additional profit. Third, the optimal keywords grouping solution is a result of multifaceted trade-off among various advertising factors. In particular, assigning more keywords into adgroups or having more budget won't certainly lead to higher profits. This suggests a warning for advertisers that it's not wise to take the number of keywords as the criterion for keywords grouping decisions.
... Research has paid more attention to other online marketing instruments in combination with search engine advertising (Chandrasekaran et al. 2018;Dinner et al. 2014;Joo et al. 2016;Naik/Peters 2009;Pfeiffer/Zinnbauer 2010;Olbrich/Schultz 2014;Wiesel et al. 2011;Zenetti et al. 2014). Search engine advertising is effective in driving offline sales, due to targeting consumers who are further along the purchase decision process (Dinner et al., 2014). ...
... Wiesel et al. (2011) found that offline marketing (flyers and fax) may affect the online funnel metrics and that the online funnel metrics significantly affect the offline funnel. In a combined survey and experimental design for multime-dia beer campaign, Zenetti et al. (2014) found a negative interaction effect between television advertising and search engine advertising. Another finding suggests a statistically significant relationship between television advertising and consumers' tendency to search branded keywords rather than generic keywords (Joo et al. 2016). ...
In affiliate marketing, few merchants allow the use of search engine advertising by affiliates restricting the potential of this business model. The study analyzes this situation from both perspectives and thus adds to the literature on affiliate marketing and multichannel relations. Affiliates primarily need to compare the spending in search engine advertising and the return through commissions. In contrast, merchants have to consider spillover effects and potential benefits on the search engine results pages. The underlying complexity only explains in part the prohibited use of search engine advertising. Affiliates with few merchants should consider using search engine advertising. Merchants should allow search engine advertising if the danger of prospect migration is low.
... Colbjornsen [8] states that the success of consumer technologies relies upon an alignment with particular social groups, and their perceptions of relevance and demand. Zenettia et al. [9] state that firms must consider the investments in various media channels simultaneously when they design multimedia campaigns. ...
... Generally, the finding shows that the ergonomics term is not a common exposure in the websites of furniture industry. Referring to [9], there are 4 consumer metrics namely advertising awareness, brand awareness, brand image, and brand consumption that should be given attention in a marketing strategy. Looking from the perspective of public health, this indicates that health is not a primae concern in the marketing strategy of furniture. ...
The objective of this paper is to reveal the awareness of ergonomics as part of internet based marketing strategy in furniture industry. Based on Actor Network Theory (ANT), this study believes that internet marketing is an object that links buyer and seller. Empirical study of previous practices has failed to indicate common use of ergonomics term in this research area of marketing strategy. Most of the marketing strategy literature in furniture industry has focused more on aesthetic than ergonomics issues. Therefore, this study utilized qualitative research to analyze the use of ergonomics term in the websites for marketing strategy. This study has identified 33 websites of furniture industry to address the issues using purposive sampling technique and content analysis. The finding shows the ergonomics term is not a common exposure in the websites of furniture industry. It confirms the lack of awareness about the utilization of ergonomics term in the companies’ websites. This research recommends that future marketing strategy should highlight the ergonomics issues in the company’s website in order to promote public health. Hence, this new knowledge suggests that the furniture industry should be more health conscious. Furthermore, future research can also focus on other tools of digital marketing strategy.
... On the one hand, it is unclear whether clicks eventually lead to sales for advertisers (Blake et al., 2015). On the other hand, externalities between advertisements may produce effects beyond clicks (Zenetti et al., 2014). ...
This paper analyzes externalities generated by offline advertising campaigns on the performance of online ads. Using advertising data on a panel of firms in the hotel industry, we estimate how a firm’s offline, display, and compet- ing ad campaigns impact the effectiveness of Google and Facebook adver- tising. We find a positive effect of traditional mass-media campaigns on Google clicks. Advertising from competitors does not affect Google ad performance but it increases advertising prices, suggesting keyword poach- ing. Further analyses hint that Google’s monopoly power and auction system allow free-riding on advertising externalities. Although we find similar posi- tive effects on Facebook ads, they are not significant.
... As a result, they sometimes develop a tendency to disregard the ads; skipping over them as if they do not exist, a phenomenon often referred to as banner blindness [6,13,28]. Nevertheless, marketing research shows search engine advertising is an effective tool advancing various consumer metrics, such as brand awareness and brand consumption, even among users who do not click on the ads [40]. ...
Advertisements (ads) are an innate part of search engine business models. Advertisers are willing to pay search engines to promote their content to a prominent position in the search result page (SERP). This raises concerns about the search engine manipulation effect (SEME): the opinions of users can be influenced by the way search results are presented. In this work, we investigate the connection between SEME and sponsored content in the health domain. We conduct a series of user studies in which participants need to evaluate the effectiveness of different non-prescription natural remedies for various medical conditions. We present participants SERPs with different intentionally created biases towards certain viewpoints, with or without sponsored content, and ask them to evaluate the effectiveness of the treatment only based on the information presented to them. We investigate two types of sponsored content: 1. Direct marketing ads that directly market the product without expressing an opinion about its effectiveness, and 2. Indirect marketing ads that explicitly advocate the product's effectiveness on the condition in the query. Our results reveal a significant difference between the influence on users from these two ad types. Though direct marketing ads are mostly skipped by users, they can tilt users decision making towards more positive viewpoints. Indirect marketing ads affect both the users' examination behaviour and their perception of the treatment's effectiveness. We further discover that the contrast between the indirect marketing ads and the viewpoint presented in the organic search results plays an important role in users' decision-making. When the contrast is high, users exhibit a strong preference towards a negative viewpoint, and when the contrast is low or none, users exhibit preference towards a more positive viewpoint.
... Also, his review also shows the lack of studies related to specific theory and most of the studies employed the survey methods for investigating the nature of advertising via social media, which is explained to be because of the new phenomenon issues. Interestingly, his reviews showed a very least studies conducts on modelling the problems and the most recent studies that related to this issues include models related to advertising budgets (Albright & Winston, 1979;Coulter & Sarkis, 2006;Viscolani, 2008), advertising methods and contents decision making (Deng et al., 2019;Kelton, 1994;Monahan, 1984;Pareek et al., 2018;Zenetti et al., 2014). ...
This paper proposes a theoretical framework for identifying how customer will react to an advertisement before making the purchase decisions. Different from previous studies, this paper will consider both approaches from customers' views: the advertisements' contents and the products specifications (types, models, brands, and so on). Further examination will be conducted in the future using the theory of the continuous time Markov chain. There are three scenarios are proposed in this study based on real-time customers' behaviors.
... Moreover, externalities between media generates effects beyond clicks. Zenetti et al. (2014) found search and TV ads had own and crossed effects on consumer's awareness and product consumption for a beer brand -even when consumers did not click on the ad. Thus, clicks do not fully internalize advertising effects. ...
This paper analyzes externalities generated by offline advertising campaigns on online ads performance. Using a fixed-effect IV regression on a panel of firms in the hotel industry, we quantify the elasticity of Google and Facebook ads to offline advertisements. Our study demon- strates a positive effect of traditional mass-media campaigns on Google search ads effectiveness. An increases in traditional advertising stock by 1% rises clicks on Google ads by 4.95%. Fur- ther analyses found this effect benefited to Google by (i) a higher advertising cost related to the increase in ads performance and (ii) a higher share of advertising budget in the long run. Although we find similar offline positive effects on Facebook ads, they were not significant.
... From the view of current research, most studies on online advertisements cover various applications, including the construction of effect prediction model of online advertisements [5,6], the factor analysis affecting the online advertising effect [7,8], and the establishment of complete evaluation system for online advertisements [9,10]. rough the collection of these studies, it can be found that they mainly deal with the advertising data characteristics of high dimension and sparsity, instead of multidimension and imbalance. ...
With the rapid development of the Internet, the online advertising market has become larger and larger. Online advertisers often execute their advertising strategies based on the effect of online advertisements, so it is necessary to evaluate the advertising effect because it determines whether advertisers can display effective advertisements continually and remove ineffective advertisements timely. In practical scenarios, the quantity of ineffective online advertisements is always larger than that of effective online advertisements. The imbalanced distribution of them will bring serious bias to the evaluation models. We propose an improved undersampling method based on clustering (termed UBOC) to overcome the data imbalance. It can balance the advertising data into a more suitable data distribution. In addition, we adopt a new evaluation index for the effect evaluation of online advertisements based on C5.0 decision tree. Experimental results indicate the excellent performance of UBOC and the practical application of evaluation index for online advertisements. They can provide an effective evaluation of online advertisements and achieve the early removal of ineffective advertisements for advertisers, which will greatly increase the revenue brought by advertisements.
... • Customer acquisition: Marketing managers like to evaluate newly acquired users through digital display or search engine advertising (Zenetti et al. 2014;Guhl et al. 2016) as to their expected revenue contribution (Seufert 2013). This practice is used to ensure that advertising budget expensed on acquisition of new users does not exceed these users' expected future revenue contributions (Blattberg and Deighton 1996;Seufert 2013). ...
“Freemium” (Free + Premium) hat sich zu einem führenden Preismodell für digitale Güter entwickelt. Dabei kann die Basisversion eines Produkts, z.B. von Handy-Applikationen (“Apps”), unbegrenzt kostenlos genutzt werden und Firmen bieten Premium-Erweiterungen gegen Bezahlung an. Konsumenten haben in 2018 194 Milliarden mal Apps heruntergeladen und 101 Milliarden US-Dollar für In-App-Einkäufe ausgegeben. Beinahe 80% des Umsatzes auf App-Stores wird dabei durch Handyspiele generiert. 2,4 Milliarden Menschen haben in 2019 Handyspiele gespielt, was der Hälfte aller App-Nutzer im gleichen Zeitraum entspricht. Die Hauptthese dieser Dissertation ist, dass preisreduzierende Sonderangebote von gro{\ss}er Wichtigkeit für das Vermarkten von Freemium-Gütern sind: Obwohl Freemium bereits eine extreme Preis-Reduktion darstellt, indem es ein Produkt Konsumenten kostenlos zum Ausprobieren zur Verfügung stellt, können demnach Firmen durch die Nutzung weiterer Sonderangebotstaktiken höhere Profite generieren. Die Arbeit postuliert weiter (und beweist dies empirisch), dass lange angenommene Risiken in der Nutzung von Sonderangeboten, die vor allem bei klassischen Konsumgütern etabliert wurden, im Freemium-Bereich in dieser Form nicht zutreffen. Diese Perspektive entwickelt und vertieft der Autor über vier individuelle Papiere, die zusammen mit einer einleitenden Zusammenfassung die fünf Kapitel dieser Dissertation ausmachen. Die vorliegende Arbeit ist empirischer Natur und wendet “Advanced Analytics”, insbesondere Feldexperimente und maschinelles Lernen, in Zusammenarbeit mit Firmen an. Als repräsentativer Forschungsgrund dienen dabei Freemium-Handyspiele, in denen Firmen detaillierte Daten über Interaktionen mit Kunden sammeln. Anhand dieser Daten leitet der Autor neue Kenntnisse über Kundenverhalten ab und entwickelt Entscheidungsunterstützungssysteme, die es Firmen ermöglichen, höhere Gewinne beim Verkauf von Freemium-Gütern zu erzielen.
... Sponsored search advertising has evolved into one of the most prominent online advertising channels [66]. Millions of advertisers choose search advertising to promote their products and services, taking advantage of precise targeting [10], low advertising costs [53], and high return on investment [28,31]. ...
In sponsored search advertising, advertisers need to make a series of keyword decisions. Grouping these keywords to form several adgroups within a campaign is a challenging task because of the highly uncertain environment of search advertising. This paper proposes a stochastic programming model for keywords grouping, taking click-through rate and conversion rate as random variables, with consideration of budget constraints and advertisers’ risk-tolerance. A branch-and-bound algorithm is developed to solve our model. Furthermore, we conduct computational experiments to evaluate the effectiveness of our model and solution, with two real-world data sets collected from reports and logs of search advertising campaigns. Experimental results illustrated that our keywords grouping approach outperforms five baselines, and it can approximately and steadily approach the optimal solution. This research generates several interesting findings that illuminate critical managerial insights for advertisers in sponsored search advertising. First, keywords grouping does matter for advertisers, especially with a large number of keywords. Second, in keywords grouping decisions, the marginal profit does not necessarily show the marginal diminishing phenomenon as the budget increases. Therefore, advertisers should try to increase their budget in keywords grouping decisions to garner additional profit. Third, the optimal keywords grouping solution is the result of a multifaceted trade-off among various advertising factors. In particular, assigning more keywords into adgroups or having a larger budget will not definitely lead to higher profits. This study suggests a warning for advertisers: It is not wise to use the number of keywords as a single criterion for keywords grouping decisions.
... Corresponding to its evolution into one of the dominant forms of online advertising, increasing research interest has focused on search engine advertising over the last decade. Areas of search engine advertising research are search behavior (Jerath et al. 2011;Joachims et al. 2007), multiple aspects of auction mechanisms (Edelman et al. 2007;Varian 2007), keyword generation and selection (Chen et al. 2008;Klapdor et al. 2014;Qiao et al. 2017), click fraud (Asdemir et al. 2008;Kshetri 2010;Wilbur and Zhu 2009), and the integration of search engine advertising into the marketing mix (Chandrasekaran et al. 2018;Joo et al. 2016;Olbrich and Schultz 2014;Wiesel et al. 2011;Zenetti et al. 2014). Recent reviews on research in search engine advertising present a more in-depth overview (Kapoor et al. 2016;Schultz 2016a). ...
This study investigates the impact of search query intention when evaluating and managing search engine advertising. Specifically, we study whether the performance of a search engine advertising campaign depends on the informational, transactional, and navigational search intentions and also consider the appearance of an organic result alongside a search engine advertisement on the same search engine results page. Both, search intention and organic presence significantly affect some performance indicators of search engine advertising. Advertising ranking as well as click and conversion metrics are influenced by search intention and organic presence. Advertisers may consequently assign advertising budgets according to the dominant search intention in line with their advertising objectives. With the help of search engine optimization, advertisers can also influence the organic presence on the search engine results pages. In summary, theory and practice need to include search intention and organic presence in search engine advertising management.
... Taking under consideration that media type as a moderating effect did not show differences in the relationships proposed here, the results of the present study appear to be consistent with the notion that advertising effectiveness can be assessed and measured in the same way in both online advertising and traditional media advertising. In fact, there is evidence that advertising campaigns tend to garner the best results when tactics of traditional media (such as TV) and digital media (such as search engines) are combined in an overall communication strategy (Zenetti, Bijmolt, Leeflang, & Klapper, 2014). The results of the present study thus support the idea that the consumer's reaction to traditional media advertising and to digital media advertising, as well as his information processing of each of these, tend to remain quite similar. ...
The relationship between advertising effectiveness and behavioural intentions is assessed when involvement with the product is introduced as a direct covariant effect, rather than as a moderator. Advertising effectiveness is assessed through attitude towards the ad and advertising cognition. Advertising media type combined with age is tested as a moderating variable (younger/digital vs. older/traditional). With a sample of n = 307 consumers, a structural statistical path model is implemented to empirically test the hypotheses. It is found that involvement has an effect on attitude towards the ad and on ad cognition. Thus, it is established that the ad cognition variable, rather than attitude towards the ad, has a strong statistical effect on behavioural intentions. The model suggests that the level of the consumer’s attention to the ad depends on her/his degree of involvement with the product. Also, the evidence tends to indicate that the cognitive process through which the consumer builds purchase intentions is similar in both communication channels irrespective of age difference.
... Recent studies have addressed the inclusion of search engine advertising in the promotional mix, analyzing its competitive effectiveness, and the interaction with other advertising media (Dinner et al., 2014;Joo et al., 2016;Kireyev et al., 2016;Naik & Peters, 2009;Olbrich & Schultz, 2014;Pfeiffer & Zinnbauer, 2010;Wiesel et al., 2011;Zenetti et al., 2014). Search engine advertising is found to affect the spending in both traditional and online channel sales (Dinner et al., 2014;Wiesel et al., 2011). ...
For advertisers, search engine advertising represents an attractive opportunity to selectively reach the target group at a point in time when the prospects are already thematically involved and activated. One question that subsequently arises is if users use various devices during different phases of the search process and if this behavior affects the search engine advertising outcome measured by corresponding performance indicators. The present chapter addresses this question. Based on a search engine advertising campaign of a German service provider, the authors examine the development of performance indicators across multiple devices. Specifically, we retrace the development across desktops, tablets, and mobile devices. Thus, the chapter provides insights into device usage in search engine advertising. The chapter concludes with overall trends in search engine advertising.
... However, due to the pay-per-clicking bidding mechanism targeting a less prominent position leads to a vast increase of ad impressions. This might be beneficial as previous research indicates that paid ads generally have a positive lasting impact on brand perception and awareness (Wiesel et al. 2011;Zenetti et al. 2014). Second, due to the decline in costs by over 30% for a given budget advertisers are able to increase the number of website visitors by the same percentage. ...
Current research on paid search highlights its ability to enhance both online and offline conversions. Yet, research investigating the impact of placing paid search ads on less prominent positions on subsequent consumer behavior is limited to the online environment. This paper presents a field experiment using differences-in-differences analysis to investigate whether the targeting of a less prominent ad position can be beneficial for bricks-and-mortar retailers. Results indicate that paid search advertising budgets could be allocated more efficiently by targeting less prominent ad positions, thus allowing bricks-and-mortar retailers with a limited marketing budget to increase the reach of their marketing campaign, attract more consumers to their website and achieve an overall increase in conversions. Furthermore, the pay-per-click billing mechanism allows advertisers to increase their marketing reach at no additional cost. Consequently, bricks-and-mortar retailers should consider targeting less prominent ad positions to reduce advertising costs while simultaneously enhancing advertising benefits.
... Recent studies have addressed the inclusion of search engine advertising in the promotional mix, analyzing its competitive effectiveness, and the interaction with other advertising media (Dinner et al., 2014;Joo et al., 2016;Kireyev et al., 2016;Naik & Peters, 2009;Olbrich & Schultz, 2014;Pfeiffer & Zinnbauer, 2010;Wiesel et al., 2011;Zenetti et al., 2014). Search engine advertising is found to affect the spending in both traditional and online channel sales (Dinner et al., 2014;Wiesel et al., 2011). ...
For advertisers, search engine advertising represents an attractive opportunity to selectively reach the target group at a point in time when the prospects are already thematically involved and activated. One question that subsequently arises is whether users use various devices during different phases of the search process and if this behavior affects the search engine advertising outcome measured by corresponding performance indicators. The present chapter addresses this question. Based on the search engine advertising campaign of a German service provider, this chapter examines the development of performance indicators across multiple devices. Specifically, we retrace the development across desktops, tablets, and mobile devices. Thus, the study provides insights into device usage in search engine advertising. The chapter concludes with overall trends in search engine advertising.
... We study the influence of banner ad exposures on the probability that a consumer will (1) visit the firm's website on a given day and/or (2) make a durable purchase in one of its offline stores, using a Bayesian multivariate probit model Zenetti et al. 2014). ...
Many firms allocate increasing parts of their advertising budgets to banner advertising. Yet, for firms that predominantly sell offline, existing research provides little guidance on online advertising decisions. In this study, the authors analyze the impact of banner advertising on consumers' online and offline behavior across multiple distinct campaigns for one focal firm, which predominantly sells through the offline channel. Results suggest that banner and TV advertising increase website visit incidence for consumers who had not visited the focal firm's website in the previous four weeks (non-recent online consumers). For these consumers, banner and TV advertisements indirectly increase offline sales through website visits. For consumers who have visited the firm's website in the previous four weeks (recent online consumers), the authors find evidence for a cross-campaign, brand-building effect of banner advertising, and TV ads also directly affect offline purchases. Overall, the findings indicate that for firms which predominantly (or even exclusively) sell offline, banner advertising is most suitable to generate awareness for a firm's new products among non-recent online consumers, and to build their brand(s) among recent online consumers.
... In recent research studies, direct effects of search engine marketing have been proven on different aspects of brand recognition and awareness. G. Zenetti et al. (2014) confirms that search engine advertising has positive effects on all four examined categories/consumer metrics: advertising awareness, brand awareness, brand image, brand consumption. Thus, search engine marketing needs to be incorporated into each communication campaign via the creation of the so-called search-centric campaign. ...
In this article, the author focuses on the issues of creating a communication mix that reflects recent changes in consumer behaviour. These include increased activity in researching information before, during and even after purchasing decisions. This requires from marketing managers and communication and media agencies to incorporate search engine marketing into each campaign to attract relevant audience and interconnect various communication channels. The author presents a holistic approach to communication campaign management and introduces the components of an integrated communication campaign in the context of search-centric marketing.
... Most prior research conceptualizes ad avoidance as a tripartite disposition composed of cognitive, affective, and behavioral components Prendergast, Tsang, and Cheng 2014). To facilitate a conceptual replication, conceptualization based on the traditional cognition, affect, and behavior response model (Cho and Cheon 2004) is adopted in the current study that has also been used in other online advertisement studies (e.g., Zenetti et al. 2014). Our behavioral component captures both behavioral and mechanical aspects of ad avoidance suggested by Speck and Elliott (1997). ...
Existing literature indicates that replication and extension studies are crucial for advancement of knowledge and establishing external validity of earlier work. In this study, we replicate and extend Cho and Cheon's (2004) advertising avoidance on the Internet model. We specifically examine the relationship of perceived goal impediment, perceived ad clutter, and prior negative experience with ad avoidance. The proliferation of the Internet has greatly increased ways organizations target customers through online advertising. However, consumers have also become more proficient at advertising avoidance. Survey data from 339 consumers browsing the Internet in Iran were used to validate the original model. Further, an extension of the study suggests that user mode moderates the relationships identified in the original model.
... It does not compulsively show in the sight of users. In one latest research, data reveals that search engine ads have great impact on participants' brand and ad recall, and purchase intention (Zenetti, Bijmolt, Leeflang, & Klapper, 2014). Also, the ad exhibits high specificity for targeted consumers since it only targets the potential consumers. ...
Present paper attempts to examine the effectiveness of modern trend advertising methods in reaching certain outcome. In order to provide evidence for the effectiveness of modern trend advertisement methods, a number of past research studies has been used. The authors will focus on examining and comparing five major modern trend advertising methods, which include internet ads, mobile app ads, video ads, stealth ads and outdoor digital ads. This paper mainly contributes to the marketers and advertisers. It not only allows the marketers or advertisers to recognize the incorrect ways of advertising, but also the characteristics of the modern trend ad methods. At the same time, it can greatly enhance the effectiveness of advertising. Moreover, the objective is introduced with the support of past findings. Also, major studies are used to support the effectiveness of every main modern trend ad method. At the end, the paper is discussed and concluded with the inferences made based on past research. Lastly, the authors look forward for future research to examine the question and resolve the seemingly ineffective ad methods.
... The nature of the field implies a relevant emphasis on the commerce side function of publicizing; but this is also a rather light to blind spot in the documented research. More knowledge generation may be needed to better understand the impacts of online and mobile information availability in customer's processing of a narrowly targeted marketing campaign [9], [14]. ...
... Monitoring brand mentions and sentiments in social media forums and addressing negative messages directly 44% Identifying influential discussion forums and participating in discussions about the brand 25% Reaching out to key online opinion leaders to serve as brand advocates 22% Hiring a third-party service provider to manage brand interactions in social media and other online forums 14% are taken to measure the effects of online media, such as search engine advertising (SEA) (Zenetti, Bijmolt, Leeflang, & Klapper, 2014) and paid search advertising (Manchanda, Dubé, Goh, & Chintagunta, 2006;Rutz & Bucklin, 2011;Rutz & Trusov, 2011). Srinivasan, Vanhuele, and Pauwels (2010) propose new ''mindset'' metrics or consumer metrics. ...
Internet usage continues to explode across the world with digital becoming an increasingly important source of competitive advantage in both B2C and B2B marketing. A great deal of attention has been focused on the tremendous opportunities digital marketing presents, with little attention on the real challenges companies are facing going digital. In this study, we present these challenges based on results of a survey among a convenience sample of 777 marketing executives around the globe. The results reveal that filling “talent gaps”, adjusting the “organizational design”, and implementing “actionable metrics” are the biggest improvement opportunities for companies across sectors.
Purpose
This study aims to examine the cross-media effect of Super Bowl ads on online search behavior. Furthermore, the authors explored the role of ad likability in the effect.
Design/methodology/approach
This study used a quasi-experiment method to test the hypotheses. The subjects of investigation are the brands advertised during the past ten years of Super Bowl from 2011 to 2020 ( n = 389). Search volume index data were collected through Google Trends. The authors used Ad Meter ratings to measure ad likability.
Findings
The findings indicate that Super Bowl advertisements stimulate consumers' likelihood to seek information about the advertised brands via search engines. The search volumes for brands hit a peak right after the Super Bowl advertising exposure. Additionally, ad likability influenced the increase in search volume. Consumers tend to search a brand online if they liked its Super Bowl ad.
Originality/value
The study contributes to the literature on Super Bowl advertising effectiveness by examining the impact of Super Bowl advertising on online search behavior and the role of ad likability in the relationship. Marketers will be able to utilize the increase in search volumes after the Super Bowl advertising exposure to further enhance brand engagement.
The central thesis of the book is the claim that the management of integrated online marketing communication leads to customer retention and co-creation of brand value, thanks to the use of consumer engagement and accompanying factors. Although the topics discussed in the thesis are multi-threaded, they are entirely inscribed in the subdomain of management sciences, which is marketing management.
One of the breakthroughs in the evolution of marketing communication was the emergence of social media in the digital environment. Consumers began to feel as if they had a stake in brand management. Thanks to the feeling of being able to influence, they began to interact with brands directly.
The unique feature of social media, which is based on cooperation, allows consumers to voluntarily participate in a variety of brand-related activities not available on traditional media. Consumers not only meet with brands while browsing the content on the Internet, but also actively interact with them through the process of engaging. This changed the paradigm in marketing communication to such an extent that companies began not only to use this group of communication channels by creating individual profiles on various social networks, or to run blogs, but even started to make their company websites more social, adding features that help customers engage through communication with the company or passing on their insights to other consumers.
Networks of cooperating websites presenting information on brands and their offers have also been created so that consumers can quickly find them using search engines.
These means, as mentioned above, were intended to encourage consumers not only to consume content, but also to engage in activities related to their sharing and creation.
This “community nature” of social media represents real potential that can be used in business practice.
The main goal of the research is to identify the factors and relationships that are important in the process of the positive impact of online marketing communication on consumers’ engagement with brands, and then repeat shopping and co-create brand value.
On its basis, two main research problems were formulated: (1) What activities in the field of digital marketing communication influence the engagement of young consumers with brands on the Internet and encourage them to co-create brand value? (2) What dimensions and factors should the scale of measuring consumer perception of online marketing communication consist?
In the study it was decided to use the pragmatic paradigm, because it allows combining research methods, strategies, techniques and procedures characteristic of both the positivism paradigm and interpretivism.
A mixed research method was used, combining qualitative and quantitative approaches in one study. Mixed methods allow you to use the strengths of each of these approaches while minimizing the resulting weaknesses. As a result, more comprehensive information was obtained, and the accuracy of results obtained via netnography, partially structured individual interviews and online surveys was increased by triangulation.
Mixed methods lead to a greater understanding and closer knowledge of the truth, and thus maximize validity and increase the reliability of the study. Concerning the survey, data obtained in the exploratory phase based on qualitative methods were used to improve the research framework and tested in the confirmatory phase based on quantitative research on a group of 1109 respondents.
One of the research achievements is the creation of a universal scale for measuring the perception of online marketing communication by young consumers, based on the concept of inbound marketing and the idea of dominant value logic. Another is to fill the identified research gap regarding the relationship: perceived online marketing communication, consumer engagement with brands and co-creation of brand value by young consumers.
The results of the exploration and confirmation phase complement the existing research under the links between the three variables of inbound marketing (inspirational content, relationships created, information search). The results prove that engagement is not enough to trigger consumers’ reaction to content and brand communication activities on the Internet. The very process of consumer engagement is complicated. In the process of the positive impact of perceived online marketing communication on the co-creation of brand value by consumers, the role of three mediators is essential. In addition to engaging themselves, perceived brand value and brand trust are also significant. Regardless of the configuration, all these three variables mediate the relationship together. Removal of any of them disturbs mediation and causes the total indirect effect to be lower than when using three mediators.
The research results also make it clear that organizations find it challenging to create an effective online brand communication strategy that would involve representatives of the Millennium Generation and Generation Z. The results prove that when implemented activities and accompanying content mostly meet customer needs in terms of knowledge acquisition and are useful and helpful, then brand communication can be a potent tool in creating relationships with customers.
The main contribution of this research is to increase the credibility of theoretical research by supporting the theory with empirical data, as well as strengthening the approach of the relationship between integrated online marketing communication and co-creation of brand value by young customers.
The proposed scale of perceived online marketing communication also has practical advantages. It can become a convenient instrument for diagnosing the correctness of created online marketing communication activities, content, brand-customer relationship, and the effectiveness of the established information network on the Internet.
This research work has two objectives. On the one hand, to analyze the influence that Perceived Usefulness of Programmatic Advertising (PA) has on the user's Concern about Privacy, and on the other, to check whether this relationship changes over time. That is, to find out how improvements in the effectiveness of programmatic advertising might increase the users' concern for privacy. Today, programmatic advertising can be very invasive, not only because of the use of cookies and geolocation, but also because of using algorithms that analyze users' interests in order to offer related products at a later date when the user visits other different websites which are not at all related to the first. Secondly, this document investigates whether this relationship increases over time and if there are any time-related effects. In this study, data from of a very large sample of Internet users in Spain (n = 14,822) was analyzed at three different moments of time between 2013 and 2017. PLS-SEM was used for the analysis given its usefulness in social studies. Several groups were analyzed to test the difference between the path coefficients of the latent variables at different moments in time. Academics and professionals will benefit from this document by being able to see the importance of this relationship over time and how it changes. The use of a longitudinal study allowed for an investigation into, not only the existence of the relationship, but how it changed over the years.
Suchmaschinen sind die meist genutzten Anwendungen im Internet und werden von ca. 93 % der Internetnutzer verwendet, um Produkte, Dienstleistungen, Personen und allg. Informationen zu finden (Kroker 2018 ). Großer Marketing-Vorteil ist, dass jede Suchanfrage aktuelles Themeninteresse reflektiert und ca. 50–70 % von Online-Kaufentscheidungen mit einer Suchmaschinen-Nutzung beginnen (Forrester Research 2016 ). Suchmaschinenmarketing ist daher das meist genutzte Online-Marketing-Instrument und weiterhin werden starke Wachstumsraten prognostiziert. Im nachfolgenden Kapitel erfolgt die praxisrelevante Aufbereitung von Ergebnissen und Erfolgszusammenhängen, die in vornehmlich wissenschaftlicher Forschung diskutiert bzw. identifiziert wurden. Abgeleitet werden Management-Tipps als etwaige Ansatzpunkte für ein innovatives und effizienteres Suchmaschinenmarketing.
Search engine advertising (SEA), in which businesses (or advertisers) bid on keywords and pay search engine providers (e.g. Google) to get a secure place on the first page of search results, is a prominent source of revenue for search engine companies, and an effective method for businesses to promote their visibility on the Web. SEA is a complex and dynamic form of advertising and managing it effectively is still a challenge for many businesses, particularly smaller businesses. Building upon resource-based theory, this study has developed a context-specific model for understanding advertisers' competency factors that influence SEA effectiveness. Using structural equation modelling and survey data collected from 142 businesses, this research has found that SEA effectiveness is influenced by organizations' ability to manage keywords and bids, ability to analyse and monitor outcomes, advertising expertise, commitment to SEA task, and the use of external experts. Moderating relationships between the factors have been examined, and the implications of the findings for both academics and practitioners have been discussed.
In this chapter we discuss several issues that are related to the actual use of a model. We first examine the determinants of model implementation
. We categorize the dimensions that contribute to the likelihood of implementation as follows:
model-related dimensions;
organization-related dimensions;
implementation-strategy dimensions.
Database marketing and list management are more vital than ever, as marketers have troves of consumer information at their fingertips (Marketing News, October 2013, p. 54).
With the development of information
technology, it’s possible to deliver advertising more accurately. Online
behavioral advertising (OBA) is a kind of advertising which tracks individual
online behavior in order to deliver advertising tailored to his or her
interests. However, consumers still avoid advertising with more precise
delivery. We can’t find out the measures which decrease OBA avoidance unless we
know about the factors that influence the avoidance. This paper reviewed
researches about advertising avoidance and built the model of OBA avoidance
combining the characteristics of OBA. Goal Impediment, Perceived
Personalization and Privacy Concern are the inde-pendent variables and Negative
Experience is the intervening variable. The empirical study finds that Goal
Impediment and Privacy Concern are related to OBA avoidance positively, and
Perceived Personalization is related to OBA avoidance negatively.
Measuring the effects of advertising on consumers’ purchase decisions is an important yet difficult task in retailing because the effect can depend on both current and past advertising efforts and on the co-occurrence of other marketing instruments. Consumers may have different evaluations and preferences for advertising that can determine its effectiveness, and these can change over time based on factors such as recall of and attitude toward advertisements. The proposed econometric framework examines the purchase decisions of potentially heterogeneous consumers by means of the widely used random coefficient logit model for aggregate sales and information about perceptions of advertising at the consumer level, that is, tracking data. These tracking data assess individual responses to two consumer metrics that are related to consumers’ (I) recent experience with the consumption of the brand and (II) recall and appreciation of advertisements. The empirical application indicates that both consumer metrics and heterogeneity can be important for retailing researchers and managers by revealing the effects of advertising and determining the influence of other marketing instruments, such as price.
Multi-touch attribution, which allows distributing the credit to all related advertisements based on their corresponding contributions, has recently become an important research topic in digital advertising. Traditionally, rule-based attribution models have been used in practice. The drawback of such rule-based models lies in the fact that the rules are not derived form the data but only based on simple intuition. With the ever enhanced capability to tracking advertisement and users' interaction with the advertisement, data-driven multi-touch attribution models, which attempt to infer the contribution from user interaction data, become an important research direction. We here propose a new data-driven attribution model based on survival theory. By adopting a probabilistic framework, one key advantage of the proposed model is that it is able to remove the presentation biases inherit to most of the other attribution models. In addition to model the attribution, the proposed model is also able to predict user's 'conversion' probability. We validate the proposed method with a real-world data set obtained from a operational commercial advertising monitoring company. Experiment results have shown that the proposed method is quite promising in both conversion prediction and attribution.
There has been a tremendous growth in the mobile telecommunication industry in Jordan. Jordan has already crossed the 6 million users mark in February 2009 (Arab Advisors Group's, 2010). At the same time, there has also been a growth in the mobile advertising space in Jordan. Although several papers have been written in the recent times about consumer attitudes towards mobile advertising, a systematic study of these for Jordan context is lacking. This paper has tried to address this need. The underlying paper discusses its relevance and investigates antecedents of consumer attitudes towards SMS advertising via mobile devices and variables influencing it. The analysis is based on a consumer survey. For this purpose a quota sample of 130 cellular phone users in Jordan has been interviewed. It was found that consumers' perceptions of the entertainment value, Informativeness and credibility of SMS advertisements are positively correlated to consumers' overall attitudes towards SMS advertisements. The study further found consumers' perceptions of the irritation aspect of SMS advertisements is negatively correlated with consumers' attitudes towards SMS advertisements. The results indicate that attitude toward advertising via mobile devices strongly depends on message Characteristics. The message characteristics need to be developed carefully. Marketers can not only rely on the fact that an advertising message sent via mobile devices will be read and remembered automatically. Also the results indicate that advertising value and advertising message content have the largest impact on attitude toward advertising via mobile devices.
As with all forms of advertising, exposure is a necessary prerequisite for Internet banner ad effectiveness. However, exposure does not guarantee a user's attention, an issue especially relevant to the Internet, where ad avoidance occurs most frequently. And if an ad is noticed, the message may or may not remain in the consumer's memory after cognitive processing. However, even if the advertising message is not consciously remembered, the exposure can be unconsciously processed and subsequently change the user's affective state. To investigate how attention levels influence users, this study uses eye tracking to measure the level of attention that results from an advertisement exposure and explores how different levels of attention influence users in conscious and unconscious ways. Also, we examine the effect of animation-one of the most popular attention-grabbing tools-on attention and how it moderates cognitive processing. By measuring and analyzing users' actual eye-movement data, we found that animation in banner ads not only attracts less attention than static ads but also reduces the positive effect of attention on memory. In addition, although more than half of the participants could not recognize the advertised brand, the animated banner ad was unconsciously processed and did influence attitudes toward the brand. The results suggest that animation in banner ads does not necessarily increase user attention, but that even if a user does not consciously notice a banner ad, the user's attitude toward the brand is influenced.
Synergy is a concept that many communication professionals believe in, but demonstrating synergy effects in the laboratory or field settings to identify how synergy operates has proved elusive. A set of experiments was conducted to test the existence of different synergy effects as well as to compare the information-processing model of synergy with that of repetition. As a result, television-Web synergy leads to significantly higher attention, higher perceived message credibility, and a greater number of total and positive thoughts than did repetition. Also, people under synergistic conditions formed brand attitudes through the central processing route, whereas people under repetitive conditions formed brand attitudes through the peripheral route. The implementations of these findings are discussed.
Despite the rapid growth of the Internet as a vehicle for communication and commerce, substantive theory to guide Web-based marketing communications is still in its infancy. Combining the distinctive characteristics of the Internet with recent models and research findings regarding information processing, this paper proposes a framework for understanding consumer response to Web-based communications. Consideration of Internet communication options (advertisements, Web sites, viral messaging), message characteristics (attention devices, encoding variability, framing, mood tone) and individual-difference moderators (involvement, cognitive/affective motivations, gender, context) leads to propositions regarding consumer motivation, opportunity and ability to process.
In this paper, we analyze the relationship between performance and use of brand terms in the key phrases that link advertisements to searcher queries. We use data that consist of more than 2.5 million daily records from a key word advertising campaign of a major U. S. retailer. The campaign spanned nearly four years, involved approximately $8 million in advertising cost, and generated more than $23 million in sales. We categorize key phrases and advertisements as either brand focused or non-brand focused. Using analysis of variance in a 2 x 2 design, we analyze use of branded terms on the critical key word advertising metrics of number of clicks, cost per click, sales revenue generated, number of orders, number of items ordered, and return on advertising cost, as well as number of impressions triggered by these key phrases. Therefore, we investigate a significant spectrum of user actions and consumer behaviors in a sponsored search campaign. Our findings show that there is a significant advantage to matching branding terms in key phrases and advertisements relative to any other combination of key phrase or advertisement for all the metrics examined. A combination of a branded phrase and a branded advertisement generated 15 times more sales revenue than any other combination of phrase and advertisement. Therefore, a focus by key word advertisers on branded terms for search engine ads could be quite beneficial for both the effectiveness and efficiency of key word advertising. The implication for online advertising and key word search in the e-commerce domain, especially for large retailers, is that brand mentions in both key phrase and advertisements correlate with higher conversions.
While many offline retailers have developed informational websites that offer information on products and prices, the key question for such informational websites is whether they can increase revenues via web-to-store shopping. The current paper draws on the information search literature to specify and test hypotheses regarding the offline revenue impact of adding an informational website. Explicitly considering marketing efforts, a latent class model distinguishes consumer segments with different short-term revenue effects, while a Vector Autoregressive model on these segments reveals different long-term marketing response.We find that the offline revenue impact of the informational website critically depends on the product category and customer segment. The lower online search costs are especially beneficial for sensory products and for customers distant from the store. Moreover, offline revenues increase most for customers with high web visit frequency. We find that customers in some segments buy more and more expensive products, suggesting that online search and offline purchases are complements. In contrast, customers in a particular segment reduce their shopping trips, suggesting their online activities partially substitute for experiential shopping in the physical store. Hence, offline retailers should use specific online activities to target specific product categories and customer segments.
This study develops a theoretical model, based on the theory of reasoned action and the concept of behavioral calculus, for understanding on-line advertiser behavior. Structural equation modeling and survey data are used to test hypotheses on how beliefs about on-line pay-per-click advertising shape the attitudes and subjective norms that lead advertisers to advertise on-line. The roles of trust, third-party tools, and support from search engine providers are explored. The study confirms that attitudes and subjective norms significantly influence intention to advertise on-line using the pay-per-click model, but trust in search engine providers and third-party monitoring and filtering tools are also found to have central roles. Trust can significantly increase the perceived benefits, in addition to its direct positive impact on attitude and subjective norms. The perceived effectiveness of third-party tools has a positive impact on attitude and trust, and thus on intention to advertise on-line.
We propose a new hierarchical model of online and offline advertising. This model incorporates within-media synergies and cross-media synergies and allows higher-order interactions among various media. We derive the optimal spending on each medium and the optimal total budget. We also develop three hypotheses on the effects of within- and across-media synergies on both the total budget and its allocation. We estimate media effectiveness as well as the within- and cross-media synergies of offline (television, print, and radio) and online (banners and search) ads using market data for a car brand. We show that both types of synergies —within-media (i.e., intra-offline) and cross-media (online-offline)— exist. We show how within- and cross-media synergies boost the total media budget and online spending due to synergies of the online media with various offline media.
Along with the rapid increase in the number of Internet users around the world, the World Wide Web has become the fastest growing advertising medium in this decade. The Interactive Advertising Bureau (2007) reported US online advertising revenue's growth from 1998's US$1.8 billion to $20 billion in 2007. The 10 fold increase not only signifies the importance of online advertising to the advertising and media industry, but also the rapid advancement of technology in online advertising delivery and display formats that requires researchers to help the media and advertisers to capitalize on the new medium and the society in understanding the increasing impact of the medium.
Considerable research suggests that advertising executional cues can influence communication effec- tiveness. Related research indicates that communication effectiveness is in part driven by consumers' motivation, opportunity, and ability (MOA) to process brand information from an ad. However, little re- search has explicitly linked executional cues to communication effectiveness via their impact on MOA and levels of processing. The authors present a framework that explicitly provides such a linkage. The framework highlights the mediational role of MOA in the relationships among executional cues and com- munication outcomes, it also provides a theoretical account that links apparently disparate cues to their common effects on motivation, opportunity, or ability. The framework is complemented by a critical re- view of current measures of MOA and proposed measures based on the review. Research issues raised by the framework and the proposed measures are discussed.
We introduce the weighted likelihood bootstrap (WLB) as a way to simulate approximately from a posterior distribution. This method is often easy to implement, requiring only an algorithm for calculating the maximum likelihood estimator, such as iteratively reweighted least squares. In the generic weighting scheme, the WLB is first order correct under quite general conditions. Inaccuracies can be removed by using the WLB as a source of samples in the sampling-importance resampling (SIR) algorithm, which also allows incorporation of particular prior information. The SIR- adjusted WLB can be a competitive alternative to other integration methods in certain models. Asymptotic expansions elucidate the second- order properties of the WLB, which is a generalization of Rubin’s Bayesian bootstrap [D. B. Rubin, Ann. Stat. 9, 130-134 (1981)]. The calculation of approximate Bayes factors for model comparison is also considered. We note that, given a sample simulated from the posterior distribution, the required marginal likelihood may be simulation consistently estimated by the harmonic mean of the associated likelihood values; a modification of this estimator that avoids instability is also noted. These methods provide simple ways of calculating approximate Bayes factors and posterior model probabilities for a very wide class of models.
The authors review more than 250 journal articles and books to establish what is and should be known about how advertising affects the consumer-how it works. They first deduce a taxonomy of models, discuss the theoretical principles of each class of models, and summarize their empirical findings. They then synthesize five generalizations about how advertising works and propose directions for further research. Advertising effects are classified into intermediate effects, for example, on consumer beliefs and attitudes, and behavioral effects, which relate to purchasing behavior, for example, on brand choice. The generalizations suggest that there is little support for any hierarchy, in the sense of temporal sequence, of effects. The authors propose that advertising effects should be studied in a space, with affect, cognition, and experience as the three dimensions. Advertising's positioning in this space should be determined by context, which reflects advertising's goal diversity, product category, competition, other aspects of mix, stage of product life cycle, and target market.
The development of internet-based mobile electronic commerce (mcommerce) has been slow, but commercial applications for text messages have developed rapidly. This paper explores the role of SMS or text message advertising. Although SMS advertising is strictly a form of telemarketing, it shares features with e-mail marketing and mcommerce. An analysis of 26 text marketing campaigns (5,401 respondents) demonstrates the surprising effectiveness of this new form of telemarketing. SMS advertising is effective, both as a branding vehicle and in stimulating response; this was demonstrated by significant improvements in brand attitude and purchase intentions.Journal of Targeting, Measurement and Analysis for Marketing (2005) 13, 304-312; doi:10.1057/palgrave.jt.5740158
Industry practitioners and social scientists throughout the world have long sought to determine the effectiveness of advertising in this multi-billion dollar industry. For close to a century, many social scientists have debated just how advertising works. One suggested explanation is the hierarchy of effects—that body of literature that posits that audiences go through a variety of stages, namely cognitive, affective, and conative, in responding to advertising, and other persuasive marketing messages. This paper reviews the hierarchy of effects from its beginning at the turn of this century to present-day developments. The paper also examines the controversies surrounding hierarchy models and provides a critique of the evidence supporting its position as an advertising model.
In this paper, we attempt to empirically determine the factors that drive traffic and brand equity in the internet space. Even in 2002 with the internet bubble burst, many companies are still turning to the web to interact with current customers and reach new markets. These companies need to know if the traditional theories linking advertising, store visits, and sales are still supported as they move online, using the technology-based internet as a primary marketplace.
Our main objective in this paper is to measure the value of customers acquired from Google search adver- tising accounting for two factors that have been overlooked in the conventional method widely adopted in the industry: (1) the spillover effect of search advertising on customer acquisition and sales in off-line channels and (2) the lifetime value of acquired customers. By merging Web traffic and sales data from a small-sized U.S. firm, we create an individual customer-level panel that tracks all repeated purchases, both online and off-line, and tracks whether or not these purchases were referred from Google search advertising.
To estimate the customer lifetime value, we apply the methodology in the customer relationship management literature by developing an integrated model of customer lifetime, transaction rate, and gross profit margin, allowing for individual heterogeneity and a full correlation of the three processes. Results show that customers acquired through Google search advertising in our data have a higher transaction rate than customers acquired from other channels. After accounting for future purchases and spillover to off-line channels, the calculated value of new customers using our approach is much higher than the value obtained using conventional method. The approach used in our study provides a practical framework for firms to evaluate the long-term profit impact of their search advertising investment in a multichannel setting.
The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. A brand is said to have positive (negative) customer-based brand equity when consumers react more (less) favorably to an element of the marketing mix for the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. Brand knowledge is conceptualized according to an associative network memory model in terms of two components, brand awareness and brand image (i. e., a set of brand associations). Customer-based brand equity occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory. Issues in building, measuring, and managing customer-based brand equity are discussed, as well as areas for future research.
Information integration theory and the integrated information response model are used to explore how consumers combine information from advertising and trial. Also investigated is the ability of attitude toward the ad to mediate advertising's effects on brand cognitions and brand attitudes after trial. An experiment is conducted in which three independent variables are manipulated: the information source (ad only, trial only, and ad plus trial), information sequence (ad/trial and trial/ad), and favorability of trial (positive and negative). Results show that (1) advertising can lessen the negative effects of an unfavorable trial experience on brand evaluations, especially when the ad is processed first, (2) when negative trial precedes exposure to advertising, cognitive evaluations of the ad are more negative, (3) the ability of ad attitudes to influence brand cognitions and brand attitudes is significantly reduced after trial, and (4) the ability of brand cognitions to influence brand attitudes is significantly increased after trial. Implications for advertising research and practice are discussed.
Bayesian methods are considered for analyzing correlated ordinal data. We present a new approach to Bayesian hierarchical generalized linear models using a rich class of scale mixtures of multivariate normal (SMMVN) link functions. Fully parameteric classical approaches to these are intractable and thus Bayesian methods are pursued using a Markov chain Monte Carlo sampling-based approach. Marginal likelihood approaches are used to compare the proposed models and simulation-based diagnostic procedures are developed to assess model adequacy. Novel computational algorithms to perform the Bayesian analysis are further developed and a real data example is used to illustrate the methodologies.
This study traces the rhythms of news storytelling on Twitter via the #egypt hashtag. Using computational discourse analysis, we examine news values and the form of news exhibited in #egypt from January 25 to February 25, 2011, pre- and post-resignation of Hosni Mubarak. Results point to a hybridity of old and newer news values, with emphasis on the drama of instantaneity, the crowdsourcing of elites, solidarity, and ambience. The resulting stream of news combines news, opinion, and emotion to the point where discerning one from the other is difficult and doing so misses the point. We offer a theory of affective news to explain the distinctive character of content produced by networked publics in times of political crisis.
In this article, the authors propose an integrative model of advertising persuasion that orders the major theories and empirically supported generalizations about persuasion that have been offered in the information-processing literature. The authors begin by reviewing this literature, placing particular emphasis on the assorted processes or mechanisms that have been suggested to mediate persuasion. To consolidate this material, the authors propose a framework that delineates three alternative strategies that people may use to process persuasive communications and form judgments, in which each strategy represents a different level of cognitive resources that is employed during message processing. In addition, the framework identifies a judgment correction stage that allows people to attempt to correct their initial judgments for biases that they perceive may have affected such judgments. The authors add to this by identifying particular processes that appear to mediate when and how these judgment formation and judgment correction processes operate. They also attempt to foster growth by specifying some of the critical issues and gaps in the knowledge that appear to impede further progress. Finally, the authors clarify how the proposed framework can inform the decisions advertising practitioners make about advertising execution and media factors.
Exposure models focusing on reach and frequency where an audience is exposed to an ad message are the foundation of audience measurement. Given that a certain fundamental assumption of conventional exposure models is not relevant in the Internet advertising context, this paper suggests that the audience's on-line banner exposure can be best analyzed by its Web site visits. The negative binomial distribution (NBD) model, having long been applied in analyzing repeat behaviors, is proposed to serve as a banner ad exposure model. An empirical validation indicates that the model performs well in both data fitting and prediction.
As the number of Internet users increases daily, Internet advertising grows in importance as one of the elements of the communications mix. Because of the controversy surrounding the effectiveness of banner advertising, many companies are seeking alternative formats for capturing on-line consumers. Through two studies, this research provides an empirical investigation of the effects of banner advertising and sponsored content on Web site communities and their advertisers.The studies demonstrate that Web communities and advertisersboth benefit from sponsored content. Specifically, sponsored content can be an effective advertising tool to engender positive response toward an advertiser and increase feelings of customer responsiveness, product quality, category leadership, and even purchase intention. In addition, there is evidence that these types of messages are processed differently, indicating to communications managers that program objectives should drive the decision as to whether sponsored content, banner advertising, or some combination of the two will be most effective.
Internet usage continues to explode across the world with digital becoming an increasingly important source of competitive advantage in both B2C and B2B marketing. A great deal of attention has been focused on the tremendous opportunities digital marketing presents, with little attention on the real challenges companies are facing going digital. In this study, we present these challenges based on results of a survey among a convenience sample of 777 marketing executives around the globe. The results reveal that filling “talent gaps”, adjusting the “organizational design”, and implementing “actionable metrics” are the biggest improvement opportunities for companies across sectors.
Many online shoppers initially acquired through paid search advertising later return to the same website directly. These so-called “direct type-in” visits can be an important indirect effect of paid search. Because visitors come to sites via different keywords and can vary in their propensity to make return visits, traffic at the keyword level is likely to be heterogeneous with respect to how much direct type-in visitation is generated.
Estimating this indirect effect, especially at the keyword level, is difficult. First, standard paid search data are aggregated across consumers. Second, there are typically far more keywords than available observations. Third, data across keywords may be highly correlated. To address these issues, the authors propose a hierarchical Bayesian elastic net model that allows the textual attributes of keywords to be incorporated.
The authors apply the model to a keyword-level data set from a major commercial website in the automotive industry. The results show a significant indirect effect of paid search that clearly differs across keywords. The estimated indirect effect is large enough that it could recover a substantial part of the cost of the paid search advertising. Results from textual attribute analysis suggest that branded and broader search terms are associated with higher levels of subsequent direct type-in visitation.
We develop a two-stage consumer-level model of paid search advertising response based on standard aggregated data provided to advertisers by major search engines such as Google or Bing. The proposed model uses behavioral primitives in accord with utility maximization and allows recovering parameters of the heterogeneity distribution in consumer preferences. The model is estimated on a novel paid search data set that includes information on the ad copy. To that end, we develop an original framework to analyze composition and design attributes of paid search ads. Our results allow us to correctly evaluate the effects of specific ad properties on ad performance, taking consumer heterogeneity into account. Another benefit of our approach is allowing recovery of preference correlation across the click-through and conversion stage. Based on the estimated correlation between price- and position-sensitivity, we propose a novel contextual targeting scheme in which a coupon is offered to a consumer depending on the position in which the paid search ad was displayed. Our analysis shows that total revenues from conversion can be increased using this targeting scheme while keeping cost constant.
Due to steady erosion in the effectiveness of on-line advertising (e.g., banners and buttons placed at frequently visited sites), on-line businesses need to target their ad campaigns more precisely to reach the segments they are interested in. This paper examines the issue of how to identify ideal paid advertising, banner exchange, or affiliate partner locations, and proposes a model based on consumer search behavior. Calibrated with data obtained from searches for information in 18 different categories, the model allows for heterogeneity by permitting consumers to belong to different segments that have idiosyncratic search points and thresholds. It also includes a segment-membership function, specified in terms of consumer demographics, that can be used to identify the demographics associated with different focal groups.
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.
This article reviews the development of advertising response theories including the hierarchy of effects and low involvement learning models. By combining concepts from several areas, a new "integrated information response model" is proposed that appears to be in close accord with existing evidence.
A study of Web banner advertising that measured attitudes and behavior found important attitudinal shifts even without click-through. By using Millward Brown's BrandDynamics™ system, along with other copytesting measures, the authors have documented increases in advertising awareness and in brand perceptions to Web banner ads for apparel as well as technology goods. [ABSTRACT FROM AUTHOR]
In this study, an Online Prepurchase Intentions Model is proposed and empirically tested in the context of search goods. The focus of this research is to determine whether intent to search the Internet for product information is a key element for marketing researchers to employ in predicting consumers’ Internet purchasing intentions. Data were collected through a mail survey to computer users who resided in 15 U.S. metropolitan areas. Two-stage structural equation modeling was employed to test hypotheses. The results show that intention to use the Internet to search for information was not only the strongest predictor of Internet purchase intention but also mediated relationships between purchasing intention and other predictors (i.e., attitude toward Internet shopping, perceived behavioral control, and previous Internet purchase experience). Direct and indirect relationships between two antecedents (attitude toward Internet shopping and previous Internet purchase experience) and Internet purchase intention were also found. Theoretical and managerial implications are discussed.
There is a growing trend among consumers to serially consume small, incomplete “chunks” of multiple media types – television, radio, Internet and print – within a short time period. We refer to this behavior as “media multiplexing” and note that key challenges for integrated marketing communications (IMC) media planners are (1) predicting which media or combination their target audience is likely to consume at any given time and (2) understanding potential substitutions and complementarities in their joint consumption. We propose a forecasting model that incorporates media-multiplexing behavior of both traditional and new media, their interdependencies, and consumer heterogeneity and calibrate the model using a rich database of individual-specific media activity diaries. The results suggest that accounting for media synergies within a single utility specification significantly improves model forecasts. We also introduce a utility function that directly models cross-channel media complementarities via interactive effects of the satiation parameters of own and joint consumption of various media types. Finally, our individual-level analyses generate unique insights on consumer-level media switching, multiplexing and individual heterogeneity often ignored in aggregate data.
This article describes an approach to measuring frequency of exposure to all media at the individual level and presents a case study illustration based on a cross-platform TV, print, and online campaign for a consumer packaged good for which advertising had begun several weeks prior to data collection. Using the respondent-level frequency approach, we address the contribution of different media to marketing objectives in circumstances where the campaign has already started and for very well-established brands with high levels of awareness. Knowing respondent-level frequencies also allows us to understand if media synergy effects are truly synergistic or the result of achieving higher frequency levels among people who have been exposed to multiple media.
This article examines the impact of brand famiiiarity and internet user experience on banner-ad effectiveness. The results from a large empirical study show that there are major differences between the performances of banner ads for familiar and unfamiliar brands. Advertisements for familiar brands tend to wear out quickly, whereas banner ads for unfamiliar brands need multiple exposures to wear in. Major differences are aiso found between novice and expert internet users regarding their susceptibiiity to web advertising. Novice users are more affected by banner ads than are expert users. Implications based on the findings are discussed. THE INTERNET IS THE FASTEST-GROWING medium of
Click fraud occurs when a Web user clicks on a sponsored link with the malicious intent of hurting a competitor or gaining undue monetary benefits. Advertisers and the media accuse search engines of not doing enough to curb this practice. This paper develops a game-theoretical model of click fraud in a publisher network that sheds light on the economic trade-offs search engines face. On the supply side, search engines try to create incentives for publishers to generate clicks honestly and to reward honest publishers who generate legitimate clicks. The negative strategic effect of undercounting invalid clicks deters the search engine from undercounting. Since better filtering is beneficial to search engines, publishers, and advertisers, search engines have an incentive to invest in filtering technology.
Albert and Chib introduced a complete Bayesian method to analyze data arising from the generalized linear model in which they used the Gibbs sampling algorithm facilitated by latent variables. Recently, Cowles proposed an alternative algorithm to accelerate the convergence of the Albert-Chib algorithm. The novelty in this latter algorithm is achieved by using a Hastings algorithm to generate latent variables and bin boundary parameters jointly instead of individually from their respective full conditionals. In the same spirit, we reparameterize the cumulative-link generalized linear model to accelerate the convergence of Cowles’ algorithm even further. One important advantage of our method is that for the three-bin problem it does not require the Hastings algorithm. In addition, for problems with more than three bins, while the Hastings algorithm is required, we provide a proposal density based on the Dirichlet distribution which is more natural than the truncated normal density used in the competing algorithm. Also, using diagnostic procedures recommended in the literature for the Markov chain Monte Carlo algorithm (both single and multiple runs) we show that our algorithm is substantially better than the one recently obtained. Precisely, our algorithm provides faster convergence and smaller autocorrelations between the iterates. Using the probit link function, extensive results are obtained for the three-bin and the five-bin multinomial ordinal data problems.
In this study, an Online Prepurchase Intentions Model is proposed and empirically tested in the context of search goods. The focus of this research is to determine whether intent to search the Internet for product information is a key element for marketing researchers to employ in predicting consumers’ Internet purchasing intentions. Data were collected through a mail survey to computer users who resided in 15 U.S. metropolitan areas. Two-stage structural equation modeling was employed to test hypotheses. The results show that intention to use the Internet to search for information was not only the strongest predictor of Internet purchase intention but also mediated relationships between purchasing intention and other predictors (i.e., attitude toward Internet shopping, perceived behavioral control, and previous Internet purchase experience). Direct and indirect relationships between two antecedents (attitude toward Internet shopping and previous Internet purchase experience) and Internet purchase intention were also found. Theoretical and managerial implications are discussed.
This study was designed ca provide insights into why people avoid advertising on the Internet. Recent negative trends in Internet advertising, such a.s "banner blindness" and extremely low click-through rates, make it imperative to study various factors affecting Internee ad avoidance. Accordingly, this study builds a comprehensive theoretical model explaining advertising avoidance on the Internet, We examined three latent variables of Internet ad avoidance: perceived goal impediment, perceived ad clutter, and prior negative experience. We found that these constructs successfully explain why people cognitively, affectively, and behaviorally avoid advertising messages on the Internet. Perceived goal impediment Is found to be the most significant antecedent explaining advertising avoidance on the Internet.
Advertising on the World Wide Web is growing at a fast pace. However, it is difficult to compare advertising effectiveness on the Internet relative to standard media, such as broadcast and print, because current measures of advertising effectiveness on the Web are not standardized and incorporate significant measurement errors. In this study, we investigate issues relating to the accurate measurement of advertising GRPs, Reach and Frequency on the Internet. Moreover, we suggest critical measurement issues that need to be resolved before Internet advertising can be considered as an integral part of a company's media mix.
Determining the best way to utilize on-line media for advertising purposes is a critical question. This research, based on the Elaboration Likelihood Model (ELM), incorporates consumer goal-directedness and involvement as moderators influencing when a particular advertising strategy (i. e., variation strategy vs. appeal strategy) will be appropriate for Web advertisements. The results of a laboratory experiment supported the use of ELM in the Web environment and showed how advertising strategies should be designed and implemented in accordance with consumer goal-directedness and involvement to achieve Web advertising effectiveness. The results demonstrated the uniqueness of the Web media and the importance of goal-directedness and consumer involvement in the Web advertising context.
The marketing and sales functions in many firms are often at odds despite their common goal of increasing revenue and profit. The finger pointing goes both ways: Marketing complains of poor lead follow-up by sales, and in turn, sales grumbles about the quality of leads generated by marketing. This disconnect can be damaging; high lead volumes generated through effective marketing campaigns could actually hurt downstream sales because of wasted effort on poorly qualified leads and/or delays in sales follow-up resulting from limited sales force capacity. To examine the revenue and profit implications of coordinated communications efforts at the marketing-sales interface, the authors develop a three-stage model that captures the effects of sequential marketing/sales communications on lead generation, appointment conversion, and sales closure. The results, which are based on a collaborative effort with a large home improvement retailer, suggest a complex interplay among marketing efforts (multiple media that generate leads), delays in follow-up (time lag between inquiry and sales force contact), and sales efficiencies (appointment and sales conversion). The findings underscore the impact of multimedia spending on the timing and effectiveness of subsequent communications, implying that improved internal collaboration between marketing and sales can offer significant upside potential for the firm. Finally, the authors develop a managerial decision support tool to simulate the impact of varying communications budgets, timing, and allocation on the marketing and sales planning system.
19 telephone surveys, made at 2-mo intervals to a national probability sample of 1,200 households who were users of instant coffee, yielded aggregate measures of brand awareness, attitudes towards brands, and advertising exposure. These measures and an aggregate purchase behavior measure were used to estimate 3 multiple regression equations that formed a dynamic recursive model of the relationships between the measures. Advertising influenced both awareness and attitude, while awareness and attitude influenced behavior. The influence of advertising went directly from awareness to behavior, not through attitude. Thus, the hierarchy model of communication effects was only partially correct. Attitude change preceded behavior change, although a less significant reverse effect also emerged. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Examined the information-processing implications of coordinated radio and TV advertising campaigns, using 243 undergraduates. Ss viewed sample news broadcasts in which ads were embedded. Six exposure conditions involving different TV and radio exposure were used. Dependent measures related to processing, memory, and judgment were collected. Results show that when Ss heard a radio replay of the ads, they did little critical, evaluative processing. Rather, they appeared to replay the TV ad mentally. Recall results are consistent with this view of processing. Judgments of the brands advertised, however, were as positive for radio replay as they were for the repeated TV exposure condition. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Describes a multiproduct advertising-sales model that explicitly specifies the unobservable behavioral process intervening between advertising and sales. As a result, the model provides detailed diagnostic information to the manager, unlike conventional econometric models. The model can be used to suggest both qualitative and quantitative changes in advertising policy and also allows for a general pattern of cross-product interactions. (10 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Rotation, one type of visual simulation used to create three-dimensional (3-D) experiences, and currently being used for product presentation on some e-tail websites, may create consumer responses. Therefore, the purpose of this study is to examine the effects of rotation in product presentation on the cognitive, affective, and conative responses of consumers. This study employed a single-factor between-subjects design: product presentation (rotating vs. non-rotating). Causal model analysis showed the influence of rotation in product presentation on perceived information quantity, mood, attitude, and purchase intention. Theoretical and managerial implications, as well as future research directions, are discussed.
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The present study investigated how different product presentation formats (visual vs. verbal) influence consumer attitudes toward product and purchase intentions in Internet shopping. The overall results from two Web experiments simulating Internet apparel shopping showed that both visual and verbal information had significant effects on affective and cognitive attitudes toward apparel products, but only verbal information had a significant effect on purchase intention. Though the superiority of visual information was predicted based on prior literature, the results of the study supported verbal superiority. This finding provides an important implication for Internet retailers who tend to pay more attention to visual product presentation. Although visual product presentation is also found to be important, detailed product descriptions are critical to positively influence consumer shopping experience in Internet shopping. © 2008 Wiley Periodicals, Inc.