TV Viewing and Advertising Targeting DENG, YITING; MELA, CARL F.
Journal of marketing research,
02/2018, Letnik:
55, Številka:
1
Journal Article
Recenzirano
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Television, the predominant advertising medium, is being transformed by the microtargeting capabilities of set-top boxes (STBs). By procuring impressions at the STB level (often denoted "programmatic ...television"), advertisers can now lower per-exposure costs and/or reach viewers most responsive to advertising creatives. Accordingly, this study uses a proprietary, household-level, single-source data set to develop an instantaneous show and advertisement viewing model to forecast consumers' exposure to advertising and the downstream consequences for impressions and sales. Viewing data suggest that personspecific factors dwarf brand- or show-specific factors in explaining advertising avoidance, thereby suggesting that device-level advertising targeting can be more effective than existing show-level targeting. Consistent with this observation, the model indicates that microtargeting lowers advertising costs and raises incremental profits considerably relative to show-level targeting. Further, these advantages are amplified when advertisers can buy in real time as opposed to up front.
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.
We demonstrate this scope by summarizing the state of knowledge about display advertising, organizing the summary by the various agents in the display advertising ecosystem. We then propose specific areas for improvement to enhance the decision outcomes for the market participants (e.g., how display ads should be valued, targeted, priced, and allocated). In doing so, we take an interdisciplinary view, connecting diverse streams of theoretical and empirical research in information systems, marketing, economics, operations, and computer science. By providing this integrated view, we hope to bring attention to the outstanding research opportunities in this economically consequential and rapidly growing market.
This paper summarizes the display advertising literature, organizing the content by the agents in the display advertising ecosystem, and proposes new research directions. In doing so, we take an interdisciplinary view, drawing connections among diverse streams of theoretical and empirical research in information systems, marketing, economics, operations, and computer science. By providing an integrated view of the display advertising ecosystem, we hope to bring attention to the outstanding research opportunities in this economically consequential and rapidly growing market.
We describe online consumers’ search behavior for differentiated durable goods using a data set that captures a detailed level of consumer search and attribute information for digital cameras. ...Consumers search extensively, engaging in 14 searches on average prior to purchase. Individual level search is confined to a small part of the attribute space. Early search is highly predictive of the characteristics of the camera eventually purchased. Search paths through the attribute space are state dependent and display “lock-in” as the search unfolds. Finally, the first-time discovery of the chosen alternative usually takes place toward the end of the search sequence. We discuss these and other findings in the context of optimal search strategies and discuss the prospects for consumer learning during search.
Data, as supplemental material, are available at
http://dx.doi.org/10.1287/mksc.2016.0977
.
Few studies have considered the relative role of the integrated marketing mix (advertising, price promotion, product, and place) on the long-term performance of mature brands, instead emphasizing ...advertising and price promotion. Thus, little guidance is available to firms regarding the relative efficacy of their various marketing expenditures over the long run. To investigate this issue, the authors apply a multivariate dynamic linear transfer function model to five years of advertising and scanner data for 25 product categories and 70 brands in France. The findings indicate that the total (short-term plus long-term) sales elasticity is 1.37 for product and .74 for distribution. Conversely, the total elasticities for advertising and discounting are only .13 and .04, respectively. This result stands in marked contrast to the previous emphasis in the literature on price promotions and advertising. The authors further find that the long-term effects of discounting are one-third the magnitude of the short-term effects. The ratio is reversed from other aspects of the mix (in which long-term effects exceed four times the short-term effects), underscoring the strategic role of these tools in brand sales.
Sponsored search advertising is ascendant-Forrester Research reports expenditures rose 28% in 2007 to $8.1 billion and will continue to rise at a 26% compound annual growth rate VanBoskirk, S. 2007. ...U.S. interactive marketing forecast, 2007 to 2012. Forrester Research (October 10), approaching half the level of television advertising and making sponsored search one of the major advertising trends to affect the marketing landscape. Yet little empirical research exists to explore how the interaction of various agents (searchers, advertisers, and the search engine) in keyword markets affects consumer welfare and firm profits. The dynamic structural model we propose serves as a foundation to explore these outcomes. We fit this model to a proprietary data set provided by an anonymous search engine. These data include consumer search and clicking behavior, advertiser bidding behavior, and search engine information such as keyword pricing and website design.
With respect to advertisers, we find evidence of dynamic bidding behavior. Advertiser value for clicks on their links averages about 26 cents. Given the typical $22 retail price of the software products advertised on the considered search engine, this implies a conversion rate (sales per click) of about 1.2%, well within common estimates of 1%-2% Narcisse, E. 2007. Magid: Casual free to pay conversion rate too low. GameDaily.com (September 20). With respect to consumers, we find that frequent clickers place a greater emphasis on the position of the sponsored advertising link. We further find that about 10% of consumers do 90% of the clicks.
We then conduct several policy simulations to illustrate the effects of changes in search engine policy. First, we find the search engine obtains revenue gains of 1% by sharing individual-level information with advertisers and enabling them to vary their bids by consumer segment. This also improves advertiser revenue by 6% and consumer welfare by 1.6%. Second, we find that a switch from a first- to second-price auction results in truth telling (advertiser bids rise to advertiser valuations). However, the second-price auction has little impact on search engine profits. Third, consumer search tools lead to a platform revenue increase of 2.9% and an increase of consumer welfare by 3.8%. However, these tools, by reducing advertising exposures, lower advertiser profits by 2.1%.
Customer Channel Migration Ansari, Asim; Mela, Carl F.; Neslin, Scott A.
Journal of marketing research,
02/2008, Letnik:
45, Številka:
1
Journal Article
Recenzirano
The authors develop a model of customer channel migration and apply it to a retailer that markets over the Web and through catalogs. The model identifies the key phenomena required to analyze ...customer migration, shows how these phenomena can be modeled, and develops an approach for estimating the model. The methodology is unique in its ability to accommodate heterogeneous customer responses to a large number of distinct marketing communications in a dynamic context. The results indicate that (1) Web purchasing is associated with lower subsequent purchase volumes than when buying from other outlets; (2) marketing efforts are associated with channel usage and purchase incidence, offsetting negative Web experience effects; and (3) negative interactions occur between like communications (catalog x catalog or e-mail x e-mail) and between different types of communications (catalog x e-mail). The authors find that over the four-year period of their data, a Web-oriented "migration" segment emerged, and this group had higher sales volume. Their post hoc analysis suggests that marketing efforts and exogenous customer-level trends played key roles in forming these segments. The authors rule out alternative explanations, such as that the Web attracted customers who were already heavy users or that the Web developed these customers into heavier users. They conclude with a discussion of implications for both academics and practitioners.
The Competitive Effects of Entry Arcidiacono, Peter; Ellickson, Paul B.; Mela, Carl F. ...
American economic journal. Applied economics,
07/2020, Letnik:
12, Številka:
3
Journal Article
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Coupling weekly grocery transactions with the exact location and opening date of Walmarts over an 11-year period, we examine how Supercenter entry affects prices and revenues at incumbent ...supermarkets. We find that entry within 1 mile of an incumbent causes a sharp 16 percent drop in revenue, a competitive effect that decays quickly with distance. Surprisingly, despite large cross-sectional differences in supermarket prices by exposure to Walmart, our findings also indicate that Supercenter entry has no causal effect on incumbent prices. This result is robust across many dimensions, including a lack of price response for individual products, and across brands within a category.
Database Paper--The IRI Marketing Data Set Bronnenberg, Bart J; Kruger, Michael W; Mela, Carl F
Marketing science (Providence, R.I.),
07/2008, Letnik:
27, Številka:
4
Journal Article
Recenzirano
This paper describes a new data set available to academic researchers (at the following website: http://mktsci.pubs.informs.org ). These data are comprised of store sales and consumer panel data for ...30 product categories. The store sales data contain 5 years of product sales, pricing, and promotion data for all items sold in 47 U.S. markets. In two U.S. markets, the store level data are supplemented with panel-level purchase data and cover the entire population of stores. Further information is available regarding store characteristics in these markets. We address several potential applications of these data, as well as the access protocol.
The data set described in this paper is maintained by IRI. Any fees charged by IRI for the distribution of the data set will be used for the continual maintenance and updating of the data. Scholarships to cover IRI's fees (for those who need it) are available through the INFORMS Society for Marketing Science (ISMS). Please see the website above for further details.
E-Customization Ansari, Asim; Mela, Carl F.
Journal of marketing research,
05/2003, Letnik:
40, Številka:
2
Journal Article
Recenzirano
Customized communications have the potential to reduce information overload and aid customer decisions, and the highly relevant products that result from customization can form the cornerstone of ...enduring customer relationships. In spite of such potential benefits, few models exist in the marketing literature to exploit the Internet's unique ability to design communications or marketing programs at the individual level. The authors develop a statistical and optimization approach for customization of information on the Internet. The authors use click stream data from users at one of the top ten most trafficked Web sites to estimate the model and optimize the design and content of such communications for each user. The authors apply the model to the context of permission-based e-mail marketing, in which the objective is to customize the design and content of the e-mail to increase Web site traffic. The analysis suggests that the content-targeting approach can potentially increase the expected number of click-throughs by 62%.
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