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The risk of programmatic advertising: Effects of website quality on advertising effectiveness
Abstract
Programmatic advertising is prevalent in online advertising. However, it offers managers limited control over the type of website where the ad appears, resulting in brand safety issues. Aware of the risk that ads may potentially display on websites of poor quality (nonpremium websites), managers have developed strategies to reduce this risk. Due to the lack of empirical insights, these strategies are based on “gut feeling” and depend on campaign type (branding versus performance) and brand type (premium versus nonpremium). Our research addresses this void and analyzes website quality effects for premium and nonpremium brands in branding and performance campaigns. Our results show that effects, indeed, vary depending on campaign and brand type, but not in ways that managers might expect. When a branding ad appears on a nonpremium website, attitudes towards the ad and the brand deteriorate, but only for premium brands. In contrast, website quality does not affect awareness for either type of brand. When a performance ad appears on a nonpremium website, it generates fewer clicks; this effect is stronger for premium brands. Overall, these findings enrich our understanding of the consequences of programmatic advertising and highlight the crucial role of website quality dependent on campaign goal and brand type.
... Such contextual effects can be positive when, for instance, ads appear around high-quality brands (Desai et al., 2014) or trustworthy websites (Aguirre et al., 2015). But they can also be negative when ads are shown next to polemical contents (Madio and Quinn, 2021) or low-quality websites (Shehu et al., 2021). More recently, Ada et al. (2022) empirically documented that disclosing information about the context in which the ad appears increased advertiser's willingness-to-pay of ad impressions. ...
... First and foremost, online display platforms may allocate ads in placement that are not relevant for brands, especially in programmatic buying. Shehu et al. (2021) showed that programmatic advertising could decrease ad effectiveness, especially for premium brands', by showing ads in low-quality websites (like flash game websites or content aggregators). ...
... The database provides traditional statistics such as the impressions, clicks and cost associated to each advertisement. Using clicks to assess an ad effectiveness is a straightforward strategy used in previous studies (Tucker, 2014;Jeziorski and Segal, 2015;Shehu et al., 2021). ...
Online advertising relies on a complex network of intermediaries between advertisers and publishers. Often, advertisers do not know where their ads appear which can lead to placement issues. An ad may never be seen by the user, or displayed in controversial contexts. I investigate how different methods of pricing, targeting and buying online ads affect their outcomes. We leverage two databases, each containing millions of ad impressions bought in 2019 and 2021. In a first study, I find that both cost-per-impression (CPM) contracts and programmatic buying lessen ad viewability. Programmatic advertising also exposes advertisers to non-human ad traffic. Using a second dataset on advertising targeting, I find that matching ads with website contents yields better click rates than individual targeting based on users’ personal data. Surprisingly, premium ad marketplaces (PMPs) have positive spillovers on non-premium ads
... Premium publishers offer high-quality edited content and earn stronger reputations than non-premium publishers. Nonpremium publishers instead tend to feature unedited or user-generated content (Shehu, Abou Nabout, and Clement 2020). With a list similar to the ComScore Top 100 list, we had three independent raters categorize the publishers in our sample into premium and non-premium classes. ...
Regulators and browsers increasingly restrict user tracking to protect users privacy online. Such restrictions also have economic implications for publishers that rely on selling advertising space to finance their business, including their content. According to an analysis of 42 million ad impressions related to 111 publishers, when user tracking is unavailable, the raw price paid to publishers for ad impressions decreases by about -60%. After controlling for differences in users, advertisers, and publishers, this decrease remains substantial, at -18%. More than 90% of the publishers realize lower prices when prevented from engaging in user tracking. Publishers offering broad content, such as news websites, suffer more from user tracking restrictions than publishers with thematically focused content. Collecting a users browsing history, perceived as generally intrusive to most users, generates negligible value for publishers. These results affirm the prediction that ensuring user privacy online has substantial costs for online publishers; this article offers suggestions to reduce these costs.
... These context effects are highlighted from a theoretical perspective (see for instance Desai et al. (2014)) and in empirical works (Stipp, 2018). For example, Shehu et al. (2021) show that ads displayed on low-quality websites were less effective, in particular for premium and luxury brands. Aguirre et al. (2015) find that website credibility lowered the aversion of users to targeted advertising. ...
In July 2020, more than 1,000 well-known consumer brands pulled their advertisements from Facebook and Instagram as the platforms hosted an increasing number of controversial content. Such contents, along with low media credibility, are known for altering ad effects. Using data from a US brand that did not boycott Facebook Ads back then, we investigate whether Facebook and Instagram ad outcomes effectively decreased during the boycott period. Leveraging recent developments in counterfactual estimates, we find that advertising clicks and prices dropped on Facebook and Instagram during the boycott. In particular, clicks decreased in July, when the boycott received the most media coverage. Using data scraped from Google News, we find a negative correlation between the boycott's press coverage and Facebook/Instagram ads clicks and prices. The degradation of Facebook's credibility is thus likely to have affected the value of ads on its platforms. Brands hence have reason to leave ad platforms identified as controversial.
... Moreover, entertainment products and their markets differ on multiple dimensions relative to other products, such as fast moving consumer goods (FMCG;Holbrook & Hirschman, 1982). Our study establishes conceptually and empirically that the results gathered from other industries might not transfer to the entertainment industry, because of its specificities, nor do past results necessarily hold, due to the radical shifts in advertising imposed by digital channels (Shehu et al., 2021). Sethuraman et al. (2011) and Henningsen et al. (2011) focus on contextual influential factors in their analyses, but variables that reflect the specific advertising and distribution mechanisms of the entertainment industry (e.g., advertising period) likely affect advertising elasticities as well. ...
How does advertising affect supply and demand in the entertainment industry? Different advertising and distribution mechanisms and unique product characteristics limit the transferability of findings from other industries to the entertainment industry. This meta-analysis focuses on 290 documented elasticities, drawn from 59 studies of movies and video games, and establishes new findings and empirical generalizations. First, the average advertising elasticity in the entertainment industry is .33 (method bias-corrected .20), approximately three times higher than the average identified for other industries. Second, average advertising elasticities are higher for demand (e.g., revenue) than for supply (e.g., screens). Third, elasticities of pre-launch advertising are higher than those of overall advertising budgets, but with respect to the success period, elasticities are higher for later periods, and in total, compared to the launch period. Fourth, elasticities tend to be rather recession-proof and consistent across geographic regions but decreased after the rise of social media platforms.
... Brand safety. There have been many studies that have highlighted the impact of ads (and the websites on which they appear) on the reputation of a brand [43,[54][55][56]. In fact, the impacts are so strong that there have been several activist efforts that have successfully weaponized brand safety to prevent the spread of misinformation. ...
Ad-tech enables publishers to programmatically sell their ad inventory to millions of demand partners through a complex supply chain. Bogus or low quality publishers can exploit the opaque nature of the ad-tech to deceptively monetize their ad inventory. In this paper, we investigate for the first time how misinformation sites subvert the ad-tech transparency standards and pool their ad inventory with unrelated sites to circumvent brand safety protections. We find that a few major ad exchanges are disproportionately responsible for the dark pools that are exploited by misinformation websites. We further find evidence that dark pooling allows misinformation sites to deceptively sell their ad inventory to reputable brands. We conclude with a discussion of potential countermeasures such as better vetting of ad exchange partners, adoption of new ad-tech transparency standards that enable end-to-end validation of the ad-tech supply chain, as well as widespread deployment of independent audits like ours.
... Clicks are more related to sales than impressions and have been used in previous empirical researches to approximate advertising effectiveness (C. E. Tucker, 2014;Jeziorski & Segal, 2015;Shehu et al., 2021). In addition, click are one the main pricing instruments on which advertisers are charged (in CPC contracts). ...
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.
... The development and use of techniques such as big data, artificial intelligence or data mining, among other technologies, have allowed companies to improve the effectiveness of their programmatic advertising campaigns through the possibility of better targeting the desired audience (Beerli-Palacio and Mart ın-Santana, 2017; Shehu et al., 2021). However, this can cause users to feel a sense of continuous surveillance or persecution by the appearance of advertisements and offers for products in which they might be interested while browsing the Internet (Kannan and Li, 2017). ...
Purpose
The study of the background to programmatic advertising is of great interest in the context of digital marketing. Therefore, the main aim of this research is to define a structural equation modelling (SEM) model, which allows studying the relationship between the usefulness and privacy of online ads to increase the effectiveness and efficiency of campaigns through the use of computation and big data.
Design/methodology/approach
A cross-sectional descriptive study based on the Web Browsers Survey was carried out on a sample of 24,062 Internet users by the Association for Media Research. The partial least squares structural equation modelling method (PLS-SEM) was applied to evaluate the model with the study constructs and test the hypotheses.
Findings
The result of this research allows us to know how perceived usefulness (U) and perceived annoyance (A) affect users' privacy concerns (P) and concerns about the storage and use of their data through cookies (C). The authors also seek if there is any relationship between privacy concerns (P) and cookies (C) on users' level of Internet usage (IU).
Originality/value
One of the novelties of this study is the consideration not only of Internet user perceptions but also their concerns about privacy and the use of cookies, as key variables in the strategic management of the use of programmatic advertising in digital marketing.
... The growing complexity of purchasing journeys and the ever-growing need for more relevant targeting have gradually given personal data singular importance. The evolution of the so-called display advertising is a good illustration of the rise in data within digital advertising from the 2000s, with a remarkably sustained intensification during the 2010s and the appearance of programmatic advertising (Shehu et al. 2021). ...
The COVID-19 pandemic has been a very strong reminder that the future economic development of any country is more than ever influenced by its ability to ramp-up digital competitiveness. Consequently, enterprises were pushed to assess and develop the possibilities offered by e-commerce and online marketing tools. In this book, experts outline the prerequisites for such online marketing competitiveness and compare the current level of digital marketing competitiveness in Europe by using publicly available macro and micro-level data. The authors present their analyses and recommendations including interviews with over 125 online marketers and e-commerce specialists and present the lessons from digitalization of over 600 SMEs.
... The growing complexity of purchasing journeys and the ever-growing need for more relevant targeting have gradually given personal data singular importance. The evolution of the so-called display advertising is a good illustration of the rise in data within digital advertising from the 2000s, with a remarkably sustained intensification during the 2010s and the appearance of programmatic advertising (Shehu et al. 2021). ...
Consumers make their purchasing decisions based on information that is also related to emotions. Customers prefer transparent information that allows them to trust companies and then show interest in their services or products. Corporate social responsibility is one of the critical factors influencing the image. Because the concept of CSR significantly affects the perception of the company among customers and society. Strengthening the image is one of the fundamental goals of marketing. The CSR concept is thus one of the possible aspects of strengthening the image and thus having the edge over the competition. This chapter examines the relationships between CSR communication, brand reputation, and customer shopping intentions.
... The growing complexity of purchasing journeys and the ever-growing need for more relevant targeting have gradually given personal data singular importance. The evolution of the so-called display advertising is a good illustration of the rise in data within digital advertising from the 2000s, with a remarkably sustained intensification during the 2010s and the appearance of programmatic advertising (Shehu et al. 2021). ...
To stand out and face the growing demand from customers to obtain products and services online, several SMEs are implementing digital transformation strategies. It became evident that many factors other than technology are required to ensure the digital transformation’s completion and success. However, the global pandemic of Covid-19 showed that many SMEs struggle significantly to implement Internet and online platforms into their strategies to achieve a decent level of e-commerce competitiveness. In this chapter, we combine secondary information, opinions of experts in online marketing, and the experience of SMEs to identify which factors affect the capacity of businesses to embrace the digital environment. Based on these findings, we propose an evaluative framework allowing business to assess their current level of e-commerce readiness.
... (Knuth, Kouki, & Strube, 2013;Knuth & von Krusenstern, 2013) Although advertising products are very specific and revenues are essential in the global media industry (PricewaterhouseCoopers LLP, 2020, p. 4), academic research on success factors of media products in the advertising market is uncommon. Existing studies mainly focus on the relationship between the media content and advertising effectiveness as well as the role of the brand for media selection, but empirical studies on business-to-business and media selling perspectives are scarce (Sommer & Marty, 2015, p. 3-4;Shehu, Abou Nabout, & Clement, 2020). ...
Income structures of media companies strongly rely on advertising revenues. To be able to produce content of high quality, many media companies need to be able to maximize revenues on the advertising market. In this context it is obvious that the core product of media companies, which is the content package, is essential for selling advertising space and time. We therefore address the question to which extent high product quality in terms of quality of the advertising space and content benefits success in selling advertising for varying types of media. Based on the service value chain concept, we develop a theoretical model and empirically test it to evaluate the impact of product quality on customer satisfaction.
... Here, clicks approximates consumer's utility for the ad. Clicks are more related to sales than impressions and have been used in previous empirical researches to approximate ad effectiveness (Tucker, 2014;Shehu et al., 2021). In addition, clicks are a pricing instruments on which advertisers are charged in pay-per-clicks contracts. ...
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.
The paper contains a description of the key twelve principles of advertising planning, which can be used in the period of media strategy preparation. Such principles will help to solve the tasks of media mix selection and strategic work with different advertising tools. The aim of the research is to determine the key principles of effective planning of advertising activity, which will be actual for media planning in the 21st century. The main principles of ad planning contain reach maximization, multi-media mix increases synergy effects, online plus TV as these communication channels perfectly complement each other, online video is another TV channel, the display provides the additional frequency of contact with potential consumers, mobile thinking, adaptation of creatives, considering of regional specificity, optimization of campaign building architecture, performance is not only online, programmatic is audience targeting and brand safety is the protection of the brand environment. The research results will be useful for marketing practitioners, strategic managers, and scientific society for the improvement of advertising planning and future development of marketing principles, considering all changes which will appear in the 21st century. The proposed principles of media planning make it possible to increase the validity of marketing decisions and improve business and advertising results, so they are recommended for implementation in Ukrainian and international companies.
La publicidad programática y sus tecnologías, la compra de medios tradicionales se ha visto sustituida por la compra de segmentos de audiencia. El criterio ya no es más el contexto sino los intereses de los usuarios a los que queremos mostrar ciertos anuncios, que conocemos gracias a su perfil de navegación entre otras fuentes. Se ha empleado una metodología de investigación cualitativa. Junto con lo anterior se ha estudiado las cookies, su relevancia en el ecosistema de publicidad programática y qué supondría la desaparición de las third party cookies en Google Chrome.
Digital advertising evolves in an increasingly dynamic context and therefore finds itself in perpetual change. Advertising success increasingly relies on targeting and personalization capabilities that require strong skills in collecting and processing user information and data. However, these practices carry risks for Internet users since personal and potentially sensitive data on their lives can be exchanged without actual knowledge or consent on their part. While the targeting and the precision with which the advertising algorithms deliver content, users’ interest in the marketing content decreases. Thus the main question is, what are the causes of this lesser effectiveness of online advertising. In this chapter, we analyze the effects of programmatic advertising on the perceptions of advertised content and user attitudes toward the protection of personal data.
Ad exchanges where real-time auctions for display ad impressions take place historically emphasized user targeting, and advertisers sometimes did not know which sites their ads would appear on, i.e., the ad context. More recently, some ad exchanges have been encouraging publishers to provide context information to ad buyers, allowing them to adjust their bids for ads at specific sites. This paper explores the empirical effect of a change in context information provided by a private European ad exchange. Analyzing this as a quasi-experiment using difference-in-differences, the authors find that average revenue per impression rose when the exchange provided subdomain information to ad buyers. Thus, ad context information is important to ad buyers, and they will act on it. Revenue per impression rises for nearly all sites, which is what is predicted by auction theory when rational buyers with heterogeneous preferences are given more information. The exception to this are sites with thin markets prior to the policy change; consistent with theory, these sites do not show a rise in prices. This paper adds evidence that ad exchanges with reputable publishers, particularly smaller volume, highquality sites, should provide ad buyers with context information, which can be done at almost no cost.
Purpose: This paper examines in detail howthe use of storytellingwith parallax technology can influence the user experience (UX) in online shops as well as brand- and behavior-relevant variables. Furthermore, this study analyzes the causal relationships between UX, brand attitudes and brand-related behavioral intentions in terms of purchase
intention and price premiums. Explicit and implicit paths of human information processing are considered.
Design/methodology/approach: A sample of 266 respondents completed a web-based experiment under two conditions (text-based vs parallax storytelling online shop). An existing and operational online shop was used. The causal relationships were assessed by using partial least squares structural equation modeling (PLSSEM). To measure implicit information processing, a single category implicit association test was applied.
Findings: By applying the storytelling technique with parallax scrolling, the online shop increased visitors’ UX on explicit and implicit information processing levels and increased the online shop’s overall perceived attractiveness. Storytelling with parallax motion enables an efficient transmission of brand-related associations to consumers’ minds, enhances their explicit and implicit brand attitudes and increases their willingness to pay a higher price. Moreover, this study provides empirical evidence on the effects ofUXon brand-related measures by applying PLS-SEM and thus reveals a causal chain of effects from UX on online shop attractiveness, brand
attitude and behavioral intentions. Again, explicit and implicit perceptions were considered.
Originality/value: Science and practice are increasingly emphasizing that storytelling emotionalizes content, which facilitates effective communication and builds strong relationships with customers. Little
evidence exists about its efficient implementation in an online shopping context and in fulfilling hedonic and pragmatic needs throughout the online journey. This study provides novel insights into managing online shoppers’ UX, brand-related perceptions and behavioral intentions with the optimal use of techniques to implement storytelling. Furthermore, this is one of the first studies to holistically consider the human perception of online shops by drawing on theories and methods of psychology, marketing, consumer behavior, brand research and consumer neuroscience and considering explicit and implicit information processing in terms of hedonic and pragmatic UX and brand-related measures.
Media professionals and scholars have examined the influence of media context on advertising effectiveness for more than 50 years, but clarity regarding media-context effects remains lacking, amid an abundance of mixed results. This study used meta-analysis to investigate the relationship between media context and advertising memory in quantitative studies up to 2013. Effect sizes were significant by media-context factors, advertising-memory measures, and study characteristics, although these were correlated weakly or moderately. The findings strongly reinforce the decision rule that media professionals should consider media context when making media decisions. © 2019, World Advertising Research Center. All rights reserved.
Non-premium brands occasionally emulate their premium counterparts by using ads that emphasize premium characteristics such as superior performance and exclusivity. We define this practice as “advertising up” and develop hypotheses about its short- and long-term impact on advertising elasticity and brand equity respectively. We test the hypotheses in two large-scale empirical studies using a comprehensive dataset from the automotive industry that includes, among others, the content of 2317 television ads broadcast over a period of 45 months. The results indicate that advertising up increases (decreases) short-term advertising elasticity for non-premium products with a low (high) market share. The results also show that an intensive use of advertising up over time leads to long-term improvements (reductions) in brand equity for expensive (cheap) non-premium products. Furthermore, an inconsistent use of advertising up leads to reductions in brand equity. The results imply that managers of non-premium products with a low market share can use advertising up to increase advertising effectiveness in the short run. However, advertising up will only generate long-term improvements in brand equity for expensive non-premium products. Finally, to avoid long-term reductions in brand equity, advertising up should be consistently used over time.
Although research has examined the social media-shareholder value link, the role of consumer mindset metrics in this relationship remains unexplored. To this end, drawing on the elaboration likelihood model and accessibility/ diagnosticity perspective, the authors hypothesize varying effects of owned and earned social media (OSM and ESM) on brand awareness, purchase intent, and customer satisfaction and link these consumer mindset metrics to shareholder value (abnormal returns and idiosyncratic risk). Analyzing daily data for 45 brands in 21 sectors using vector autoregression models, they find that brand fan following improves all three mindset metrics. ESM engagement volume affects brand awareness and purchase intent but not customer satisfaction, while ESM positive and negative valence have the largest effects on customer satisfaction. OSM increases brand awareness and customer satisfaction but not purchase intent, highlighting a nonlinear effect of OSM. Interestingly, OSM is more likely to increase purchase intent for high involvement utilitarian brands and for brands with higher reputation, implying that running a socially responsible business lends more credibility to OSM. Finally, purchase intent and customer satisfaction positively affect shareholder value.
Advertising situated in environments where people congregate or pass through on their way to somewhere else benefit from being placed in such high traffic areas. However, these strategically placed ads also suffer from conditions of human crowding that prevents them from being noticed and processed. We undertake a study of place-based advertising in a shopping mall using facial recognition software to determine the effect of human density on the attention directed to advertising. We find that as human density increases, attention to advertising decreases, but only to a point where it begins to increase again. Our research also finds that human density plays a moderating role on the motivation to process advertising.
Human preferences can be shaped by evaluative conditioning (EC), which describes observed changes in liking of an initially neutral stimulus (conditioned stimulus) due to repeated paired presentations with an inherently positive or negative stimulus (unconditioned stimulus). The experimental procedure of EC implies that participants are repeatedly exposed to the conditioned stimulus. Prior research suggests that repeated exposure to stimuli facilitates their processing. Furthermore, the resulting experience of processing fluency is known to shape human preferences through its inherent positive valence. Surprisingly, however, the role of processing fluency due to repeated stimulus exposure has never been directly investigated within the context of EC. The present research extends current conceptualizations of EC by incorporating processing fluency. In particular, it presents the first study that differentiates between a direct effect of stimulus pairing and a fluency-mediated effect of stimulus repetition on liking in a standard EC procedure. This approach helps to answer the open theoretical questions of why negative EC (i.e., EC applying negative unconditioned stimuli) tends to produce smaller effects than positive EC (i.e., EC applying positive unconditioned stimuli), and why positive EC is less susceptible to extinction than negative EC. On this basis, we strongly recommend considering processing fluency in theoretical models and empirical studies on EC and other forms of evaluative learning.
The current authors’ research addressed the importance of a billboard’s location and visual saliency in capturing consumer attention. Visual saliency refers to an advertisement’s ability to stand out and attract attention because of its use of color, shading, and compositional design. Building on data from an existing eye-tracking study from the Traffic Audit Bureau for Media Measurement, Inc. (TA B, renamed Geopath in September 2016), the authors found that visual salience has some, but limited, influence on drivers’ attention to billboard advertising. Rather, a billboard’s location contributed more to the understanding of the distribution of attention in complex environments like roadside advertising. These billboard attributes explained two-thirds of the observed variance in the author’s models. © 2016, World Advertising Research Center. All rights reserved.
Firms are under increasing pressure to justify their marketing expenditures. This evolution towards greater accountability is reinforced in harsh economic times when marketing budgets are among the first to be reconsidered. Such decisions require information whether, and to what extent, marketing’s effectiveness varies with the economic tide. However, there is surprisingly little research that addresses this issue. Therefore, we conduct a systematic investigation on the impact of the business cycle on the effectiveness of two important marketing instruments, price and advertising. To do so, we estimate time-varying short- and long-run advertising and price elasticities for 150 brands, across 36 CPG categories, based on 18 years of monthly U.K. data covering 1993-2010. The long-run price sensitivity tends to decrease during economic expansions, while long-run advertising elasticities increase. During contractions, the long-run own- and cross- price elasticities increase. Moreover, across the observation period, the short-run price elasticity has become significantly stronger. Finally, patterns are not the same across categories and brands, which offers opportunities for firms that know how to ride the economic tide.
The current marketing environment is characterized by a surge in multichannel shopping and increasing choice of advertising channels. This situation requires firms to understand how advertising in one channel (e.g., online) influences sales in another channel (e.g., offline). This article studies the presence, magnitude, and carryover of these cross-channel effects for online advertising (display and search) and traditional media. The analysis considers how these advertising expenditures translate directly into sales, as well as indirectly through intermediate search advertising metrics-namely, impressions and clickthrough rate. For a high-end clothing and apparel retailer, the authors find that cross effects exist and are important and that cross-effect elasticities are almost as high as own-effect elasticities. Online display and, in particular, search advertising is more effective than traditional advertising. This result is primarily due to strong cross effects on the offline channel. Return-on-investment calculations suggest that by ignoring these cross effects, firms substantially miscalculate the effectiveness of online advertising. Notably, the authors find that traditional advertising decreases paid search click-through rates, thus reducing the net cross effect of traditional advertising.
This study investigated the relationship between radio advertising clutter and advertising recall using the Australian radio market as a test case. The term ‘clutter’ is defined here as a greater number of advertisements in a given time period. The study used an experimental design in which certain groups of participants were exposed to a radio format with high advertising clutter, while others were exposed to a low-clutter format. The ‘low-clutter’ respondents recalled as many ads on average as the ‘high-clutter’ respondents. Since the low-clutter respondents were exposed to far fewer ads, the proportion of ads recalled by the low-clutter respondents was more than double that of the high-clutter respondents, and this effect was consistent across multiple recall measures. That is, the low-clutter participants were twice as likely to recall a particular advertisement among those ads to which they were exposed. They were also twice as likely to correctly recall the product category the advertisement was for, and were twice as likely to correctly identify the advertised brand. In addition, the respondents exposed to a low-clutter advertising environment showed almost three times greater prompted advertising recognition.
The study also tested the relationship between position in the advertising block and the recall of the ad. Ads that were placed at the start and end of large blocks of ads were better recalled than ads in the centre of such large blocks. This effect was comparatively stronger for ads at the start of a block and weaker for ads at the end of a block. These results suggest that low-clutter stations are justified in charging a price premium. Exactly how much this premium should be depends largely upon the measure of effectiveness used, but based on advertising recall the price premium could be double. More research is needed to establish a suitable premium and to extend the findings of this study into a real-life radio listening environment.
This article examines the impact of clutter on advertising placed on Facebook. This platform is quite different from broadcast media, yet the current study unveiled very similar findings as previously seen for television and radio-that advertisements were better recalled when placed among fewer other advertisements. The improvements in advertising recall, however, do not appear to be sufficient to justify the likely price premium that advertisers would have to pay to reduce clutter on Facebook. The research found that larger brands are more immune to clutter than small brands, so low-clutter environments are more important for lesser-known (i.e., smaller and new) brands.
In expectation of the expanded use of full-motion commercials on the web to promote goods and services, this study examined the influence of webpage background on commercial effectiveness. More specifically, the research examined what type of background is most appropriate for positively affecting advertising effectiveness as measured by several common attitude measures: attitude-toward-the-ad, attitude-toward-the-brand, attention-to-the-commercial, and purchase intention. The findings of an experiment suggest that simpler webpage backgrounds are more effective than more complex ones. In addition, this research introduces the concept of attitude toward a website (A ws) and shows how it can play an important role in the advertising hierarchy-of-effects.
This research examines the relationship between attention to online advertising and brand attitude, aided recall, and purchase intention. Results indicate that attention to an ad is affected by ad type (pictorial vs. text) and the interaction between ad location (left vs. right) and page (image-oriented vs. textual), suggesting a range of factors that impact attention. Furthermore, under the online conditions of this study, attention is positively related to aided recall and to purchase intention, but negatively associated with brand attitude. Re-sults are interpreted in the framework of dual attitude theory (Wilson, Lindsey, & Schooler, 2000) and other effects models. Although a clear “hierarchy of effects” appears to be elusive, the results suggest that marketers must fully evaluate advertising goals prior to creative development. © 2011 Wiley Periodicals, Inc.
Endogeneity arises for numerous reasons in models of consumer choice. It leads to inconsistency with standard estimation methods that maintain independence between the model's error and the included variables. The authors describe a control function approach for handling endogeneity in choice models. Observed variables and economic theory are used to derive controls for the dependence between the endogenous variable and the demand error. The theory points to the relationships that contain information on the unobserved demand factor, such as the pricing equation and the advertising equation. The authors' approach is an alternative to Berry, Levinsohn, and Pakes's (1995) product-market controls for unobserved quality. The authors apply both methods to examine households' choices among television options, including basic and premium cable packages, in which unobserved attributes, such as quality of programming, are expected to be correlated with price. Without correcting for endogeneity, aggregate demand is estimated to be upward-sloping, suggesting that omitted attributes are positively correlated with demand. Both the control function method and the product-market controls method produce downward-sloping demand estimates that are similar.
Despite the importance of causal analysis to build a valid base of knowledge and to answer managerial questions, the issue of causality rarely receives the attention it deserves in published empirical work in information systems (IS) and management research that uses observational data. In this paper, we discuss a potential outcomes framework for estimating causal effects and illustrate the application of the framework in the context of a phenomenon that is also of substantive interest to IS researchers. We use a matching technique based on propensity scores to estimate the causal effect of an MBA degree on information technology professionals’ salary in the United States. We demonstrate the utility of this counterfactual or potential outcomes-based framework in providing an estimate of the sensitivity of the estimated causal effects due to selection on unobservables. We also discuss issues related to the heterogeneity of treatment effects that typically do not receive as much attention in alternative methods of estimation, and we show how the potential outcomes approach can provide several new insights into who benefits the most from the interventions and treatments that are likely to be of interest to IS researchers. We discuss the usefulness of the matching technique in IS and management research and provide directions to move beyond establishing association to assessing causation.
This article presents a meta-analysis of research on evaluative conditioning (EC), defined as a change in the liking of a stimulus (conditioned stimulus; CS) that results from pairing that stimulus with other positive or negative stimuli (unconditioned stimulus; US). Across a total of 214 studies included in the main sample, the mean EC effect was d = .52, with a 95% confidence interval of .466-.582. As estimated from a random-effects model, about 70% of the variance in effect sizes were attributable to true systematic variation rather than sampling error. Moderator analyses were conducted to partially explain this variation, both as a function of concrete aspects of the procedural implementation and as a function of the abstract aspects of the relation between CS and US. Among a range of other findings, EC effects were stronger for high than for low contingency awareness, for supraliminal than for subliminal US presentation, for postacquisition than for postextinction effects, and for self-report than for implicit measures. These findings are discussed with regard to the procedural boundary conditions of EC and theoretical accounts about the mental processes underlying EC.
Matched sampling is a method for selecting units from a large reservoir of potential controls to produce a control group of modest size that is similar to a treated group with respect to the distribution of observed covariates. We illustrate the use of multivariate matching methods in an observational study of the effects of prenatal exposure to barbiturates on subsequent psychological development. A key idea is the use of the propensity score as a distinct matching variable. Statistics Version of Record
Humorous, warm and rational television and print advertisements are tested in similar television and print contexts. The impact of ad style/context style congruency and context appreciation on the attitude towards the ad and on recall was studied. Results showed that low involvement individuals perceived ads embedded in a congruent context as clearer and more likable. High involvement individuals perceived ads embedded in a contrasting context as having a higher likeability and clarity. Ads shown in a highly appreciated television or print context resulted in a more positive attitude towards the ad. As opposed to a print environment, in a television context ad content and brand recall were also positively influenced by a positively appreciated context.
Mandler theorized that the level of congruity between a product and a more general product category schema may influence the nature of information processing and thus product evaluations. Products that are moderately incongruent with their associated category schemas are expected to stimulate processing that leads to a more favorable evaluation relative to products that are either congruent of extremely incongruent. Data from three experiments conducted in new product contexts are consistent with Mandler's hypothesis and serve as a basis for theorizing about the process. Copyright 1989 by the University of Chicago.
Dealing with spam is very costly, and many organizations have tried to reduce spam-related costs by installing spam filters. Relying on modern econometric methods to reduce the selection bias of installing a spam filter, we use a unique data setting implemented at a German university to measure the costs associated with spam and the costs savings of spam filters. Our methodological framework accounts for effect heterogeneity and can be easily used to estimate the effect of other IS technologies implemented in organizations.
The majority of costs stem from the time that employees spend identifying and deleting spam, amounting to an average of approximately five minutes per employee per day. Our analysis, which accounts for selection bias, finds that the installation of a spam filter reduces these costs by roughly one third. Failing to account for the selection bias would lead to a result that suggests that installing a spam filter does not reduce working time losses.
However, cost savings only occur when the spam burden is high, indicating that spam filters do not necessarily reduce costs and are therefore no universal remedy. The analysis further shows that spam filters alone are a countermeasure against spam that exhibits only limited effectiveness because they only reduce costs by one third.
Evaluative conditioning is best defined as an effect, that is, as a change in the valence of a stimulus that results from pairing the stimulus with another stimulus. This definition has several advantages that are made explicit in this paper. One of the advantages is that it clarifies that evaluative conditioning can be due to multiple processes. Therefore, the conditions under which evaluative conditioning is observed can depend on the processes that underlie a particular manifestation of evaluative conditioning. This could explain why there are so many conflicting results about the conditions under which evaluative conditioning can be found. Future research should adopt a meta-conditional approach that focuses not only on whether a certain condition is crucial for obtaining evaluative conditioning but should also examine when a certain condition is crucial.
[eng] We present a two-sided search model where agents differ by their human capital endowment and where workers of different skill are imperfect substitutes. Then the labor market endogenously divides into disjoint segments and wage inequality will depend on the degree of labor market segmentation. The most important results are : 1) overall wage inequality as well as within-group and between-group inequalities increase with relative human capital inequality ; 2) within-group wage inequality decreases while between-group and overall wage inequalities increase with the efficiency of the search process ; 3) within-group, between-group and overall wage inequalities increase with technological changes. [fre] Immigration et justice sociale. . Cet article est d�di� � la m�moire d'Yves Younes qui nous a quitt�s en mai 1996, et dont les derni�res r�flexions sur l'importance du ph�nom�ne migratoire dans les �tats-Unis des ann�es 1980-1790 m'ont beaucoup influenc�.. L'ouverture des fronti�res entre le Nord et le Sud peut-elle se retourner contre les plus d�favoris�s du monde, c'est-�-dire les non-qualifi�s du Sud ?. Avec deux facteurs de production, les migrations Sud-Nord b�n�ficient tou�jours aux moins qualifi�s du Sud, puisqu'ils y sont le facteur le plus abondant. Mais avec trois facteurs de production (trois niveaux de qualifications, ou deux niveaux et un facteur capital imparfaitement mobile), l'ouverture des fronti�res peut conduire � une baisse du salaire des moins qualifi�s du Sud si leur compl�mentarit� avec le travail tr�s qualifi� ou le capital du Nord est suffisamment faible compar�e � celle des sudistes plus qualifi�s.. Plusieurs �tudes r�centes sugg�rent effectivement que les �lasticit�s de compl�mentarit� chutent brutalement au-del� d'un certain �cart de qualification. Cependant, rien ne prouve que ces effets soient suffisamment forts pour que l'ouverture optimale des fronti�res du point de vue de la justice sociale
Display advertising is a $50 billion industry in which advertisers’ (e.g., P&G, Geico) demand for impressions is matched to publishers’ (e.g., Facebook, Wall Street Journal) supply of them. An ideal match is one wherein the publisher’s ad impression is assigned to the advertiser with the highest value for it. Intermediaries (e.g., Google) facilitate this match between advertisers and publishers by managing data and providing optimization tools and algorithms for serving ads. Although these markets exhibit high allocative efficiency, we argue there is considerable scope for improvement.
Influencer marketing is prevalent in firm strategies, yet little is known about the factors that drive success of online brand engagement at different stages of the consumer purchase funnel. The findings suggest that sponsored blogging affects online engagement (e.g., posting comments, liking a brand) differently depending on blogger characteristics and blog post content, which are further moderated by social media platform type and campaign advertising intent. When a sponsored post occurs on a blog, high blogger expertise is more effective when the advertising intent is to raise awareness versus increase trial. However, source expertise fails to drive engagement when the sponsored post occurs on Facebook. When a sponsored post occurs on Facebook, posts high in hedonic content are more effective when the advertising intent is to increase trial versus raise awareness. The effectiveness of campaign incentives depends on the platform type, such that they can increase (decrease) engagement on blogs (Facebook). The empirical evidence for these findings comes from real in-market customer response data and is supplemented with data from an experiment. Taken together, the findings highlight the critical interplay of platform type, campaign intent, source, campaign incentives, and content factors in driving engagement.
The authors develop an econometric model of the relationship between a household's private-label (PL) share and its behavioral store loyalty. The model includes major drivers of these two behaviors and controls for simultaneity and nonlinearity in the relationship between them. The model is estimated with a unique data set that combines complete purchase records of a panel of Dutch households with demographic and psychographic data. The authors estimate the model for two retail chains in the Netherlands—the leading service chain with a well-differentiated high-share PL and the leading value chain with a lower-share PL. They find that PL share significantly affects all three measures of behavioral loyalty in the study: share of wallet, share of items purchased, and share of shopping trips. In addition, behavioral loyalty has a significant effect on PL share. For the service chain, the authors find that both effects are in the form of an inverted U. For the value chain, the effects are positive and nonlinear, but they do not exhibit nonmonotonicity, because PL share has not yet reached high enough levels. The managerial implications of this research are important. Retailers can reap the benefits of a virtuous cycle; greater PL share increases share of wallet, and greater share of wallet increases PL share. However, this virtuous cycle operates only to a point because heavy PL buyers tend to be loyal to price savings and PLs in general, not to the PL of any particular chain.
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.
Evaluative conditioning refers to changes in the liking of a stimulus that are due to the fact that the stimulus has been paired with other, positive or negative stimuli. Although evaluative conditioning appears to be subjected to certain boundary conditions, significant evaluative conditioning effects have been obtained using a large variety of stimuli and procedures. Some data suggest that evaluative conditioning can occur under conditions that do not support other forms of Pavlovian conditioning, and several models have been proposed to account for these differences. In the present article, the authors summarize the available literature, draw conclusions where possible, and provide suggestions for future research.
In today's digital market, the number of websites available for advertising has ballooned into the millions. Consequently, firms often turn to ad agencies and demand-side platforms (DSPs) to decide how to allocate their Internet display advertising budgets. Nevertheless, most extant DSP algorithms are rule-based and strictly proprietary. This article is among the first efforts in marketing to develop a nonproprietary algorithm for optimal budget allocation of Internet display ads within the context of programmatic advertising. Unlike many DSP algorithms that treat each ad impression independently, this method explicitly accounts for viewership correlations across websites. Consequently, campaign managers can make optimal bidding decisions over the entire set of advertising opportunities. More Importantly, they can avoid overbidding for impressions from high-cost publishers, unless such sites reach an otherwise unreachable audience. The proposed method can also be used as a budget-setting tool, because it readily provides optimal bidding guidelines for a range of campaign budgets. Finally, this method can accommodate several practical considerations including consumer targeting, target frequency of ad exposure, and mandatory media coverage to matched content websites.
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.
We develop and describe a framework for research in digital marketing that highlights the touchpoints in the marketing process as well as in the marketing strategy process where digital technologies are having and will have a significant impact. Using the framework we organize the developments and extant research around the elements and touchpoints comprising the framework and review the research literature in the broadly defined digital marketing space. We outline the evolving issues in and around the touchpoints and associated questions for future research. Finally, we integrate these identified questions and set a research agenda for future research in digital marketing to examine the issues from the perspective of the firm.
Advertising has come a long way today. More and more new medium is being explored each day to make a successful advertising campaign. Internet that has in recent times picked up as advertising medium has become the favorite of the advertiser in no time. Online advertisement, also called internet advertising uses the internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. This study reveals that the effectiveness of on line advertising and usefulness and the reasons for using online advertisement. For this the study takes percentage and Lickert's scaling techniques.
This study examined the effectiveness of advertising in the context of commercialization congruence between online advertising and Web sites. Specifically, we separated commercialization congruence into commercial and noncommercial sectors, and drew from schema-congruence theory to consider the effects of commercialization congruence that may influence attitudes toward advertising. We employed the laboratory experiment method to manipulate the commercialization level of the Web site and the banner advertisement to verify attitudes toward advertising, before testing them according to commercialization congruence between advertising and the Web site. The findings revealed that our subjects' attitudes toward commercial advertising were significantly higher (lower) than for noncommercial advertising on commercial Web sites (noncommercial Web sites). This study contributes to online advertising research, can assist advertisers in their understanding of the importance of commercialization congruence, and serves as a reference for advertisers considering the placement of advertisements on Web sites.
An observational study is biased if the treated and control groups differ prior to treatment in ways that matter for the outcomes under study. An overt bias is one that can be seen in the data at hand-for instance, prior to treatment, treated subjects are observed to have lower incomes than controls. A hidden bias is similar but cannot be seen because the required information was not observed or recorded. Overt biases are controlled using adjustments, such as matching or stratification. In other words, treated and control subjects may be seen to differ in terms of certain observed covariates, but these visible differences may be removed by comparing treated and control subjects with the same values of the observed covariates, that is, subjects in the same matched set or stratum defined by the observed covariates. It is natural to ask when the standard methods for randomized experiments may be applied to matched or stratified data from an observational study. This chapter discusses a model for an observational study in which there is overt bias but no hidden bias. The model is, at best, one of many plausible models, but it does clarify when methods for randomized experiments may be used in observational studies, and so it becomes the starting point for thinking about hidden biases. Dealing with hidden bias is the focus of most of the later chapters.
This research examines the effects of hyper-contextual targeting with physical crowdedness on consumer responses to mobile ads. It relies on rich field data from one of the world’s largest telecom providers who can gauge physical crowdedness in real-time in terms of the number of active mobile users in subway trains. The telecom provider randomly sent targeted mobile ads to individual users, measured purchase rates, and surveyed purchasers and nonpurchasers. Based on a sample of 14,972 mobile phone users, the results suggest that, counterintuitively, commuters in crowded subway trains are about twice as likely to respond to a mobile offer by making a purchase vis-à-vis those in noncrowded trains. On average, the purchase rates measured 2.1% with fewer than two people per square meter, and increased to 4.3% with five people per square meter, after controlling for peak and off-peak times, weekdays and weekends, mobile use behaviors, and randomly sending mobile ads to users. The effects are robust to exploiting sudden variations in crowdedness induced by unanticipated train delays underground and street closures aboveground. Follow-up surveys provide insights into the causal mechanism driving this result. A plausible explanation is mobile immersion: As increased crowding invades one’s physical space, people adaptively turn inwards and become more susceptible to mobile ads. Because crowding is often associated with negative emotions such as anxiety and risk-avoidance, the findings reveal an intriguing, positive aspect of crowding: Mobile ads can be a welcome relief in a crowded subway environment. The findings have economic significance because people living in cities commute 48 minutes each way on average, and global mobile ad spending is projected to exceed $100 billion. Marketers may consider the crowdedness of a consumer’s environment as a new way to boost the effectiveness of hyper-contextual mobile advertising.
Brands and word of mouth (WOM) are cornerstones of the marketing field, and yet their relationship has received relatively little attention. This study aims to enhance understanding of brand characteristics as antecedents of WOM by executing a comprehensive empirical analysis. For this purpose, the authors constructed a unique data set on online and offline WOM and characteristics for more than 600 of the most talked-about U.S. brands. To guide this empirical analysis, they present a theoretical framework arguing that consumers spread WOM on brands as a result of social, emotional, and functional drivers. Using these drivers, the authors identify a set of 13 brand characteristics that stimulate WOM, including three (level of differentiation, excitement, and complexity) that have not been studied to date as WOM antecedents. The authors find that whereas the social and functional drivers are the most important for online WOM, the emotional driver is the most important for offline WOM. These results provide an insightful perspective on WOM and have meaningful managerial implications for brand management and investment in WOM campaigns.
Three studies investigate the moderating role of divided attention in the relationship between thematic (in)congruency between a web page and a web ad, and evaluations of and click intentions towards the embedded web ad. The first study establishes the traditional priming effect in sequential web page - web ad exposure. Study two manipulates viewers' opportunity to divide their attention when simultaneously exposed to a web page and a web ad, and study three measures divided attention by means of gaze jumps in a simultaneous exposure situation. In the case of simultaneous exposure to a web page and a web ad, a congruency effect occurs when there is little opportunity to divide the attention between the web page and the ad, and when there are few gaze jumps between the web page and the web ad. In these cases, web ads that are thematically congruent with the web page result inmore positive responses. This effect reverse when there is more opportunity to divide the attention between the web page and the web ad, and when the number of gaze jumps is high: web ads incongruent with the web page lead to more positive responses. Undivided attention benefits web ads that are congruent with the web page in which they are embedded, but divided attention benefits those that are incongruent with the web page.
Pay-per-bid auctions are a popular new type of Internet auction that is unique because a fee is charged for each bid that is placed. This paper uses a theoretical model and three large empirical data sets with 44,614 ascending and 1,460 descending pay-per-bid auctions to compare the economic effects of different pay-per-bid auction formats, such as different price increments and ascending versus descending auctions. The theoretical model suggests revenue equivalence between different price increments and descending and ascending auctions. The empirical results, however, refute the theoretical predictions: ascending auctions with smaller price increments yield, on average, higher revenues per auction than ascending auctions with higher price increments, but their revenues vary much more strongly. On average, ascending auctions yield higher revenues per auction than descending auctions, but results differ strongly across product categories. Additionally, revenues per ascending auction also vary much more strongly.
Gaining consumers' attention and generating favorable attitudes are two key advertising objectives. Using two experiments in an on-line environment, we consider the effects of the congruity between the product foci of the advertiser and the Web site, as well as banner color and banner color-text color contrast on measures of attention (i.e., recall and recognition) and attitudes toward the ad and the Web site. Experiment 1 results indicate that incongruity has a more favorable effect on recall and recognition, whereas congruity has more favorable effects on attitudes. Experiment 2 results suggest that when ads generate sufficient attention to gain recall or recognition, moderate congruity offers the most favorable attitudes toward the ad. Managerial implications for the use of these ad execution cues are discussed and future research avenues are proposed.
This study investigates the ways of improving banner advertising effectiveness by suggesting alternative advertising repetition strategies in varying on-line environments. Specifically, we investigate the effectiveness of repeating varied executions versus repeating single executions of a banner ad on brand recall and intention to click in different competitive and content-relevant on-line environments. The results of our experiment show that (1) banner advertising repetition leads to greater brand name memory and intention to click in on-line environments; (2) in a noncompetitive Internet environment, an ad variation strategy leads to higher brand name recall and intention to click than an ad repetition strategy; (3) in a competitive Internet environment, a single ad repetition strategy leads to higher brand name recall than a varied ad repetition strategy; (4) brand name recall is higher when the ad is presented in a content-relevant Web site; (5) a single ad repetition strategy generates marginally greater recall in a content-relevant Web site; and (6) a varied ad repetition strategy generates marginally greater recall in a content nonrelevant Web site. The effects of repeating varied versus same executions of an ad on intention to click in content-relevant Web sites did not generate any significant findings.
This research addresses web advertising placement issues by examining two main variables: website reputation and the relevance between website content and banner ad product category. An experiment was conducted, with a sample of web surfers, that manipulated product type, relevance between advertisement product category and vehicle content, and vehicle reputation. Four dependent variables were examined: attitude toward the ad, attitude toward the brand, intention to click, and purchase intention. Online data collection using adapted websites yielded different results for high- versus low-involvement products. Advertising effectiveness for a high-involvement product appears to be relevance-driven, with reputation enhancing outcomes only when the website's content is relevant to the advertised product category. In contrast, advertising effectiveness for a low-involvement product is reputation-driven: when a site's reputation is well established, relevance exhibits no effect on outcomes. Results are consistent with Elaboration Likelihood Model predictions and the contention that variables can serve dual roles in the persuasion process, depending on the experimental context. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This research reports how banner ads are responded to in Web sites that emphasize either emotion or cognition. It also looks
at the moderating effects of individuals’ own levels of need for cognition and need for emotion on banner responsiveness in
the two kinds of Web sites. Recall and attitude toward banners are consistently better when their context is an emotion-based
Web site. Need for cognition, but not need for emotion moderates this effect. For ad recall, it is better to be lower in need
for cognition in a cognitive Web site, but higher in need for cognition on an emotional Web site. For attitude toward the
banner and purchase intention, however, it is better to be higher in need for cognition in a cognitive Web site, but lower
in need for cognition on an emotional Web site. The results are discussed in terms of advertising context theory that has
been developed in applications to the traditional media like print and broadcast, but here is shown to be applicable to the
Web.
This paper applies cross-sectional and longitudinal propensity score matching estimators to data from the National Supported Work (NSW) Demonstration that have been previously analyzed by LaLonde (1986) and Dehejia and Wahba (1999, 2002). We find that estimates of the impact of NSW based on propensity score matching are highly sensitive to both the set of variables included in the scores and the particular analysis sample used in the estimation. Among the estimators we study, the difference-in-differences matching estimator performs the best. We attribute its performance to the fact that it eliminates potential sources of temporally invariant bias present in the NSW data, such as geographic mismatch between participants and nonparticipants and the use of a dependent variable measured in different ways for the two groups. Our analysis demonstrates that while propensity score matching is a potentially useful econometric tool, it does not represent a general solution to the evaluation problem.
Monozygotic and same-sex dizygotic twin pairs reported on their food preferences, the variety of foods of the same general category (e.g. types of soup) in their diet, and their concern about contact of their food with disgusting or other unacceptable substances (contamination sensitivity). Although there was substantial resemblance between siblings for many of these items, there was no clear evidence for a heritable component on any item. The only case for which there was an interpretable and significantly greater resemblance among monozygotic than among dizygotic twins (out of 23 questions) was preferred degree of hotness resulting from chili pepper in foods. These results confirm the prediction that in omnivorous animals, such as humans, genetic predispositions will be minimal with respect to food. The modest sibling resemblances on a number of measures are primarily attributable to a shared environment.
Matched sampling is a standard technique in the evaluation of treatments in observational studies. Matching on estimated propensity scores comprises an important class of procedures when there are numerous matching variables. Recent theoretical work (Rubin, D. B. and Thomas, N., 1992, The Annals of Statistics 20, 1079-1093) on affinely invariant matching methods with ellipsoidal distributions provides a general framework for evaluating the operating characteristics of such methods. Moreover, Rubin and Thomas (1992, Biometrika 79, 797-809) uses this framework to derive several analytic approximations under normality for the distribution of the first two moments of the matching variables in samples obtained by matching on estimated linear propensity scores. Here we provide a bridge between these theoretical approximations and actual practice. First, we complete and refine the nomal-based analytic approximations, thereby making it possible to apply these results to practice. Second, we perform Monte Carlo evaluations of the analytic results under normal and nonnormal ellipsoidal distributions, which confirm the accuracy of the analytic approximations, and demonstrate the predictable ways in which the approximations deviate from simulation results when normal assumptions are violated within the ellipsoidal family. Third, we apply the analytic approximations to real data with clearly nonellipsoidal distributions, and show that the theoretical expressions, although derived under artificial distributional conditions, produce useful guidance for practice. Our results delineate the wide range of settings in which matching on estimated linear propensity scores performs well, thereby providing useful information for the design of matching studies. When matching with a particular data set, our theoretical approximations provide benchmarks for expected performance under favorable conditions, thereby identifying matching variables requiring special treatment. After matching is complete and data analysis is at hand, our results provide the variances required to compute valid standard errors for common estimators.
This paper explores various factors influencing the clicking of banner ads on the WWW. The study indicates that several important variables affect the clicking of banner ads: (1) level of product involvement, (2) congruency between the content of a vehicle and the product category of a banner ad, (3) attitude toward the vehicle, and (4) overall attitude toward web advertising. For methodology, this study employed a between-group experimental design and measured real click-through rates with the aid of an online data collection technology called FileMaker Pro. Results of logistic regressions show that people are more likely to click banner ads if they are highly involved with products, perceive high synergy between web pages and ads, have a favorable attitude toward a vehicle, or have a favorable attitude toward web advertising in general. A total of 756 subjects participated in this research.
This paper develops the method of matching as an econometric evaluation estimator. A rigorous distribution theory for kernel-based
matching is presented. The method of matching is extended to more general conditions than the ones assumed in the statistical
literature on the topic. We focus on the method of propensity score matching and show that it is not necessarily better, in
the sense of reducing the variance of the resulting estimator, to use the propensity score method even if propensity score
is known. We extend the statistical literature on the propensity score by considering the case when it is estimated both parametrically
and nonparametrically. We examine the benefits of separability and exclusion restrictions in improving the efficiency of the
estimator. Our methods also apply to the econometric selection bias estimator.
The programmatic problem: What’s an audience without a show
- J Battelle
Battelle, J. (2014). The programmatic problem: What's an audience without a show? Available at http://digiday.com/publishers/programmatic-advertisingcontext/.