•Advertising content embedded in social media positively affects visual attention.•Advertising content embedded on social media does not affect consumer engagement.•UGC valence-ad congruence has no ...interaction effect on ad recall.•Ad congruence impacts on ad recall and visual attention.•Congruent ad-media contexts are peripheral cues in message processing.
Drawing on cognitive load theory, congruence research, and dual processing models, the purpose of this study is to determine the effectiveness of online advertising in social media. To this end, three separate studies were conducted. First, using eye-tracking and electroencephalography, we examine the differences, based on whether or not an ad is embedded, in subjects’ visual attention and engagement in a TripAdvisor webpage. Our findings showed that synergies between social media content and advertising content positively affect users’ visual attention. A second study, using an online survey, assessed the impact of congruent/incongruent ads on ad recall. A third study, using eye-tracking, assessed the impact of congruent/incongruent ads on visual attention. Our findings suggest that consumers exposed to online ads for very limited time periods rely on less effortful, more heuristic, context-based processing strategies. Congruent ad-media contexts can act as peripheral cues, activating knowledge structures and facilitating message processing.
With web advertising growing to be a huge industry, it is important to understand the effectiveness of web advertisement. In this study we investigate the effects of web advertising visual design ...(WAVD) purchasing intention within the framework of an integrated model. Nine hypotheses were developed and tested on a dataset of 316 observations collected via a questionnaire survey. The results of structural equation modeling (SEM) indicate that while web advertising visual cues influence consumers' purchasing intention through advertising attitudes and brand attitudes, they do not have direct effects on purchasing intention. Further results on the moderating role of gender suggest that web advertising visual cues have direct effect on consumers' purchasing intention for male groups but not for female groups. This study contributes to the understanding the role of visual dimensions in forming online purchase intentions.
•A model of the effects of web advertising visual design (WAVD) is proposed.•Structural equation model (SEM) is adopted to test the model.•WAVD positively influences online purchase intention via attitudinal effects.•Gender moderates the effect of WAVD on consumers' attitudes and purchase intention.
Two experiments examined the impact of Twitter followers, electronic word-of-mouth (eWoM) valence, and celebrity type (prosocial versus antisocial) on consumer behavior in Twitter-based marketing ...communication, applying social capital theory, social identity theory, source credibility, and extant literature on eWoM. Experiment 1 demonstrated the main effect of number of followers on source credibility, and the interaction effect between eWoM valence and number of followers on product involvement, buying intention, and intention to pass along eWoM. Experiment 2 revealed the interaction effect of celebrity type and number of followers on social identification with the celebrity as well as the mediating effect of social identification.
In online advertising markets, advertisers often purchase ad placements through bidding in repeated auctions based on realized viewer information. We study how budget-constrained advertisers may ...compete in such sequential auctions in the presence of uncertainty about future bidding opportunities and competition. We formulate this problem as a sequential game of incomplete information, in which bidders know neither their own valuation distribution nor the budgets and valuation distributions of their competitors. We introduce a family of practical bidding strategies we refer to as
adaptive pacing
strategies, in which advertisers adjust their bids according to the sample path of expenditures they exhibit, and analyze the performance of these strategies in different competitive settings. We establish the asymptotic optimality of these strategies when competitors’ bids are independent and identically distributed over auctions, but also when competing bids are arbitrary. When all the bidders adopt these strategies, we establish the convergence of the induced dynamics and characterize a regime (well motivated in the context of online advertising markets) under which these strategies constitute an approximate Nash equilibrium in dynamic strategies: the benefit from unilaterally deviating to other strategies, including ones with access to complete information, becomes negligible as the number of auctions and competitors grows large. This establishes a connection between regret minimization and market stability, by which advertisers can essentially follow approximate equilibrium bidding strategies that also ensure the best performance that can be guaranteed off equilibrium.
This paper was accepted by Noah Gans, stochastic models and simulation.
Firms using online advertising regularly run experiments with multiple versions of their ads since they are uncertain about which ones are most effective. During a campaign, firms try to adapt to ...intermediate results of their tests, optimizing what they earn while learning about their ads. Yet how should they decide what percentage of impressions to allocate to each ad? This paper answers that question, resolving the well-known “learn-and-earn” trade-off using multi-armed bandit (MAB) methods. The online advertiser’s MAB problem, however, contains particular challenges, such as a hierarchical structure (ads within a website), attributes of actions (creative elements of an ad), and batched decisions (millions of impressions at a time), that are not fully accommodated by existing MAB methods. Our approach captures how the impact of observable ad attributes on ad effectiveness differs by website in unobserved ways, and our policy generates allocations of impressions that can be used in practice. We implemented this policy in a live field experiment delivering over 750 million ad impressions in an online display campaign with a large retail bank. Over the course of two months, our policy achieved an 8% improvement in the customer acquisition rate, relative to a control policy, without any additional costs to the bank. Beyond the actual experiment, we performed counterfactual simulations to evaluate a range of alternative model specifications and allocation rules in MAB policies. Finally, we show that customer acquisition would decrease by about 10% if the firm were to optimize click-through rates instead of conversion directly, a finding that has implications for understanding the marketing funnel.
Data is available at
https://doi.org/10.1287/mksc.2016.1023
.
The study presents a framework for the analysis of advertising in digital games. It reviews literature on in-game advertising, advergames and advertising in social network games. The framework ...distinguishes between stimulus characteristics of the game as well as of the advertising that lead to psychological responses toward the game and the brand and to actual behavior toward the game and the brand. It takes into consideration individual factors of the player and social factors surrounding the player. In addition, theoretical models of advertising perception in digital games and issues regarding regulation are addressed. Directions for future research in the area of advertising in digital games are provided.
China is undergoing a transition from offline to online advertising, but little is known about the causal relationship regarding credibility transfer from non-web advertising to web advertising. ...Meanwhile, web advertising usage behaviour is largely overlooked. The purpose of this study is to explore the formation of customers' attitude towards web advertising (ATT) which further impacts their online information acquisition behaviour, from the perspectives of advertising value and credibility transfer. This paper develops a research model drawing upon advertising value, credibility transfer, ATT and tie. Data collected from Chinese online shopping customers were used to test the model. The results indicate that perceived informativeness, perceived entertainment and credibility contribute to the formation of ATT, which further impacts web advertising usage for getting information. Meanwhile, tie positively moderates the credibility transfer from non-web advertising to web advertising. These findings and their implications for theory and practice are discussed.
Digital media platforms like Facebook and Instagram play a significant role in the marketing of alcohol, connecting producers and consumers in novel ways. Alcohol marketers have proven to be ...innovative experimenters with the participatory and data processing power of these platforms. The aim of this article is (a) to scope how digital advertising and media are typically understood and operationalized in the public health literature and (b) to develop a conceptual framework for investigating alcohol marketing on platforms by identifying new and specific platform affordances that should inform further research in this area.
This article is a conceptual review drawing on research on digital alcohol marketing in the public health literature, conceptualizations of digital platforms in media and communication literature, and instructive examples from industry sources.
The article identifies five key challenges alcohol marketing on digital platforms poses to regulatory and self-regulatory frameworks, which so far have not been sufficiently considered in the public health literature.
The review suggests that in addition to assessing the content, volume, and placement of alcohol advertising, research and regulatory responses need to address alcohol marketing on digital platforms as a dynamic, participatory, and data-driven process.
Social media and the internet have impacted how companies and organizations advertise to consumers. Digital advertising has created the opportunity to engage with consumers, target specific groups, ...and capture metrics of use to help build effective advertising strategies. The floral industry is a large sector within the agricultural arena, which is primed to engage with young consumers. This research examined the effectiveness of utilizing static and animated social media advertisements to increase consumers' intention to purchase floral products. Using an online survey and an experimental design, this study examined 8,488 respondents' intention to purchase floral products after viewing static and animated social media advertisements. This study identified respondents' attitudes, social norms, age, and internet use to be significant predictors in their intent to purchase floral products. Recommendations from a theoretical and applied perspective are discussed within relation to the study's findings to advance strategic advertising in the floral industry. Keywords social media advertising, animated advertisements, floral industry advertising, strategic advertising
PDF
