Internet advertising effectiveness

Online advertising has experienced phenomenal growth since its inception in 1994. This empirical study investigates the impact of seven creative characteristics of banner ads on the effectiveness of online advertising using a multiple regression model. A random sample of 209 banner ads was drawn from a sampling frame of advertisers, provided by an advertising agency specialising in internet advertising for the gaming industry. The findings of this study are broadly consistent with past research into online advertising efficiency, indicating that the creative characteristics of effective banner ads in the online gaming arena include: a larger size, absence of promotional incentives and the presence of information about casino games. In contrast, banner features such as animation, action phrase and presence of company brand or logo were ineffective in generating clickthroughs. Contrary to expectations, long messages on banners were associated with higher click-through rates.     

The Effects of Animation and Format on the Perception and Memory of Online Advertising

Based on a general framework of consumer perception and processing of advertising, this study examines the impact of animation and ad format on the attention and memorization of online ads. Consumer attention to a variety of real-world ads was measured with eye tracking and ad memory was assessed with recognition and recall tests. The results suggest that on average, animation had little or no effect on attention. We did nevertheless observe a strong interaction effect between animation and ad format, which suggests that the effect of animation is conditioned by ad format. Animation has a positive effect on attention to skyscrapers, but a negative one on attention to banners. As to memorization, animation improved recognition effects, but mainly for banners. Surprisingly, consumers could recognize ads without having looked at them, which suggests that online consumers are especially parsimonious in allocating their focal attention and memory resources to irrelevant ads when they are involved in other tasks.     

Is a website known by the banner ads it hosts?

While marketers often rely upon banner ads to generate revenues, it is unclear as to how these ads might influence consumer perceptions of host websites. In this paper, we conduct three studies to examine the effect of animation and brand advertised in a banner ad on consumers’ attitude towards a host website, as well as word-of-mouth behaviour. Results of the first study reveal that consumers are irritated with unfavourable banner brands and that irritation, in turn, negatively affects their attitude towards the host website. We demonstrate that banner brand and banner type serve as contextual cues that influence judgements of the host website due to a forward spillover effect. Findings of the second study demonstrate that a host website, corol- larily, serves as a context to negatively influence evaluations of favourable brands mainly for animated banner ads - a reciprocal spillover effect. The third study validates and extends the findings of the first study by adopting methodological pluralism through a different approach to stimuli selection and experimental manipulation. Results indicate that, while presence of animation has a negative influence on the host site and WOM behaviour when the brand advertised is an unfavourable one, it neither benefits nor hurts a host website evaluation and WOM behaviour when a favourable brand is advertised. Managerial implications of our findings are also discussed.     

The games people play: How the entertainment value of online ads helps or harms persuasion

This research examines consumer reactions to online ads varying in levels of entertainment value. Results show that more favorable brand attitudes and more positive purchase intentions are formed when consumers are exposed to an ad that generates a high (game ad), rather than a low (banner ad) level of entertainment value. However, such effects are qualified by consumers' shopping goals. When consumers have access to their goals to seek specific product information, affect transfer is impaired, such that the advantage of entertaining ads dissipates. This research also documents moderating roles of individual differences in need for cognitive closure and Internet usage versatility. © 2011 Wiley Periodicals, Inc.     

Do mobile banner ads increase sales? Yes,in the offline channel

Firms allocate increasingly large budgets to mobile banner advertising. Yet, existing research paid only scant attention to the sales effects of mobile banner ads. In this paper, we fill this gap by determining the offline and online sales impact of a large-scale mobile banner advertising campaign. As part of a geographical field experiment, over 3.5 million mobile banner ads were served to a predetermined geographical area. We determine the offline and online sales effects of the mobile banner ad campaign by analyzing twenty months of sales data for regions covering the entire country of the Netherlands. Relying on a difference-in-difference approach and two matching methods, we demonstrate an offline sales increase of around 2%. The online sales effect is not significant. We conclude that firms can use mobile banner advertising to boost offline sales. We find no evidence for cross-channel sales cannibalization.     

Do Web Users Care About Banner Ads Anymore? The Effects of Frequency and Clutter in Web Advertising

This study investigates the effects of frequency of exposure to banner ads and ad clutter in web pages upon online users’ psychological responses. In a 7 (frequency 1 through 7) × 2 (clutter vs. non-clutter) between-participants factorial experiment, participants (N = 250) were randomly assigned to one of fourteen news websites, each with 20 separate pages of news stories and animated banner ads downloaded from various websites. Results indicated that frequency of exposure is a powerful psychological cue affecting users’ memory, attitudes, and behavior. However, contrary to expectation, banner clutter does not lead to negative effects on recall, attitudes, and behavior. Negative impact of banner clutter was significant only on ad recognition.     

Disclosures Exposed: Banner Ad Disclosure Adherence to FTC Guidance in the Top 100 U.S. Web Sites

With banner ads accounting for one‐fifth of the $16.4 billion spent on Internet advertising in 2006, this advertising format has become an integral marketing communications tool. Inclusion of required disclosure language and presenting those disclosures in a clear and conspicuous manner are important areas of regulatory interest and in recent years have extended to the online environment. This study examines the extent to which disclosures in banner ads in the top 100 U.S. Web sites adhere to Federal Trade Commission guidance in these two areas. Additionally, this study compares the banner ad results for clear and conspicuous presentation to those of a prior study that examined television advertising. All the banner ads in the study contained at least one disclosure; yet, adherence was mixed in terms of providing all the required information clearly and conspicuously. Implications of these results are discussed.     

Are Banner Advertisements in Online Games Effective?

Advertising in online games has grown considerably in recent years and is expected to see continued expansion (Cauberghe and DePelsmacker 2010). However, the literature suggests that banner advertisements in games are sometimes ineffective, often being seen as annoying and potentially triggering avoidance behavior. Because of the possibility of avoidance it is important to examine whether gamers have implicit memory of banner ads even if they don't explicitly recall them. The experiment conducted here measures both explicit and implicit memory of a banner ad in an advergame to assess whether and how well the game players exposed to the ad remembered it. Results suggest that a high proportion of the gamers exposed to the ads did have explicit and implicit memory of the messages shown. Moreover, gamers who were high achievers reported a higher level of implicit memory than those who were less effective at playing games, suggesting that these ads can be remembered despite a high level of concentration on the game. These findings are consistent with the notion that banner ads have a stronger chance of being effective in advergames than in some other contexts, especially among avid gamers.     

The role of respect in the effects of perceived ad interactivity and intrusiveness on brand and site

This paper examines the interrelated effects of respect, ad intrusiveness, and ad interactivity on attitudes toward brands and the publishers that serve online advertisements. Despite widespread use of the term, respect has received almost no attention in the advertising literature. A structural equations model indicates that ad formats that are perceived as respectful to viewers result in more favorable attitudes toward both the brand and publisher site. Ad intrusiveness negatively affects respect, while interactivity has a positive influence. Respect is demonstrated to exhibit a partial mediating role in the effect of these two variables on brand and site. Results also suggest that advertisers should strive for greater interactivity in ads if their objective is branding rather than direct response, as this can minimize the negative influence of intrusiveness. Publishers can also benefit from these kinds of ads.     

Does banner advertising affect browsing for brands? clickstream choice model says yes, for some

This paper investigates how exposure to Internet display advertising affects the subsequent choices users make of brand-specific pages to view within a website. Using individual-level clickstream data from a third-party automotive website, we tracked the web pages selected by users as they browsed the site and their exposures to premium placement display ads for different vehicle makes (e.g., Ford, Toyota). Pages on the site were classified into those that displayed information about a specific vehicle make (a ??make page??) versus those that did not (a ??non-make page??). For each ??make-page?? viewed, the specific automotive make selected (e.g., Ford, Toyota) was also recorded. We use these data to develop a model of users?? make-specific page choices as a function of prior banner ad exposure on the site. Consumer heterogeneity is captured using a Bayesian Mixture approach. We find that banner ads influence subsequent choices of which make-specific pages to view for ads, served during the current browsing session but not for ads served in previous sessions. The effect of banner ads is also segmented: users in one segment (54%) reacted positively, users in a second segment (46%) were not influenced. Using a standard continuous approach to heterogeneity, we would have concluded?Cincorrectly?Cthat banner advertising has no effect on the subsequent selection of make-specific pages. For the positively reacting segment, we estimate that the elasticity of make-page choice with respect to banner ad exposure is just under 0.2. Users in this segment appear less focused in their site browsing behavior and tend to stay longer than users in the non-reacting segment.     

How banner ads can be effective

This research examines the impacts of exposure duration and banner ad complexity on advertising persuasion in a web advertising environment. Processing fluency is used to explain the underlying process that occurs among consumers during exposure to advertisements, and refers to the ease of stimulus encoding and processing that is facilitated by prior exposure to a banner ad. Based on previous studies (e.g. Reber et al. 1998), this research used a priming phase and a testing phase, in which respondents viewed two banner ads for the same brand. A banner ad presented in the priming phase facilitates viewer processing of a target banner ad in the testing phase due to processing fluency. The findings show that, when a banner ad is difficult to process in the priming phase, increasing the duration of exposure to the ad in the priming phase causes a linear increase in respondent attitudes towards the target ad and brand in the testing phase. When the priming banner ad is moderately difficult to process, increasing the exposure duration in the priming phase first increases, and then decreases, respondent attitudes towards the target ad and brand (an inverted-U pattern) in the testing phase. When the priming banner ad is easy to process, increasing the exposure duration in the priming phase first decreases, and then increases, respondent attitudes towards the target ad and brand (a U pattern) in the testing phase.     

网络旗帜广告的策划和设计

网络旗帜广告作为网络广告的主要形式,频繁出现在国内外各种网页上,但目前来看,网络旗帜广告正遭遇失效的窘境。必须从网络旗帜广告的现状入手,找出其准备工作和设计的基本点,进而分析如何进行网络旗帜广告的策划和设计,以提高网络旗帜广告的吸引力。     

Effects beyond click-through: Incidental exposure to web advertising

While Web advertising tends to be based on a direct response model, there is a growing debate about the brand building potentials of Web ads. Click-through rates (CTR) are disappointingly low, but Web ads can be effective at brand building in an environment where Web ads are outside of consumers' attentional focus. With this in mind we conducted two experiments. The first experiment examined the effects of incidental exposure to banner ads. Subjects who were incidentally exposed to banner ads reported greater priming effects induced by implicit memory, more favorable A_ad, and greater likelihood for the advertised brand to be included in a consideration set over no exposure to the ad. These effects were found without significant improvement on explicit memories (i.e. recall and recognition) and click-through intention. The second experiment to assess the conditions conducive to incidental exposure examined two advertising strategies: format (animated vs. static) and placement (congruency vs. incongruency). Findings suggest that the level of congruency between an advertised product and Webpage content play significant roles in affecting consumers' responses to incidentally exposed banner ads. This paper examines the results of these two experiments before discussing the implications for the role of Web ads on brand building and directions for future research.     

An International Perspective of Online Disclosure Presentation: A Comparison of Banner Ad Disclosures from United States, United Kingdom, and Singapore Web Sites

Effective online disclosure presentation is an important feature in banner advertising worldwide. The U.S. Federal Trade Commission (FTC) is viewed as the leader in providing guidance for making disclosures clear and conspicuous. This study examines the extent to which banner ads in the top 100 web sites in three countries with a shared language and intertwining legal and self-regulatory systems—the United States, United Kingdom, and Singapore—adhere to FTC guidance. The lack of systematic differences across countries suggests the need for disclosure research from a global perspective that takes cultural and linguistic differences into account.     

Soft drink advertising and consumption in the United States 1984–2007

The internet environment has changed the format of internet advertising. One emerging form of online marketing communication is ‘contextual advertising’, in which marketers strive to develop customised images or texts more relevant to customers based on the content of web pages. This study investigates the effectiveness of internet contextual ads. In particular, we examine the effect of internet contextual ads on brand memory (i.e. recall and recognition) and attitudes towards the advertisement and/or brand using the theory of priming effect. We find that the complexity of banner ads moderates the relationship between a contextual advertisement and its effectiveness, and generates two distinct priming effects (i.e. assimilation and contrast effects). The results demonstrate that the internet contextual advertisement enhances brand recognition and induces favourable attitudes towards the ad. In addition, consumers have higher recall rates and attitudes towards the brand when they are exposed to a less complex contextual advertisement or when they are exposed to a complex, non-contextual advertisement.     

The Importance of Trust for Personalized Online Advertising

With the amount of online advertising on a steady rise, generic ads noticeably lose effectiveness. In order to break through the clutter, retailers employ a method called retargeting to tailor their advertisements to individual consumers based on inferred interests and preferences. However, while personalization should generally make ads more appealing, the authors use field data to show that the effectiveness of retargeting considerably hinges on consumers’ trust in a respective retailer. To uncover the underlying mechanisms of this phenomenon, they investigate how trust moderates the impact of ad personalization on consumers’ internal and external responses in the lab. They propose a two-dimensional conceptualization of ad personalization: First, a banner's personalization depth defines how closely the ad reflects a consumer's interests. Second, its personalization breadth determines how completely the banner reflects these interests. The lab results show that more trusted retailers can increase the perceived usefulness of their ads through a combination of high depth and narrow breadth of personalization without eliciting increased reactance or privacy concerns. On the other hand, for less trusted retailers, banners with higher depth are not perceived more useful, but instead trigger increased reactance and privacy concerns, regardless of their personalization breadth. These effects directly translate into consumers’ click-through intentions so that retailers should adjust their personalization strategies accordingly in order to increase the effectiveness of their online advertising.     

Investigating the persuasive impact and underlying processes of interactive magazine ads in a real-life setting

ABSTRACT

This study tests a theoretical framework to explain the persuasive impact of interactive magazine ads on consumers’ ad and brand attitudes. To obtain realistic (unforced) responses, a field experiment was conducted with a one-factor (interactive vs. non-interactive magazine ad) between-subjects design (N = 98). Results showed that, although they rarely used it, participants positively evaluated the presence of an interactive feature in a digital magazine ad. Furthermore, parallel-mediation analyses revealed that the interactive magazine ad was perceived as more interactive and more surprising than the non-interactive ad, which ultimately positively impacted consumers’ attitudes towards the magazine. A second real-life setting experiment (N = 121) confirmed and extended these findings by revealing that the mediation effects were even stronger when consumers had used the interactive feature (vs. only seen). In addition, the relationship between interactive magazine ads and consumers’ attitudinal responses was explained slightly better by ‘perceived surprise’ than by ‘perceived interactivity.’     

Do you want me to watch this ad on social media?: The effects of norms on online video ad watching

This study examines the influences of norms on consumers’ intentions to watch online video ads on social media. The social norms approach and the theory of reasoned action (TRA) were adopted as theoretical frameworks. In addition, the effects of interpersonal and social influences on the three personal-level norms were examined as the antecedents of normative perceptions. To test the hypothesized model, an online survey was conducted with 313 undergraduate students. A confirmatory factor analysis was used to validate the measurement constructs of the model, and a structural equation modeling was used to identify the relationships among constructs in the model. Findings indicate that personal injunctive norms and subjective norms were positively related to consumers’ intention to watch online video ads. Interpersonal and social influences were positively related to three normative perceptions regarding online video ad watching. The findings of this study contribute to the research stream on social norms approach and TRA and provide practical implications for advertising and marketing practitioners.     

Do You Recognize Its Brand? The Effectiveness of Online In-Stream Video Advertisements

The effects of ad length, ad position, and ad-context congruity on brand name recognition in an online in-stream video advertising context were investigated. Video ads and video programs were selected from YouTube as stimuli. Findings from a laboratory experiment indicate that long ads enhance recognition. Mid-roll ads lead to better brand name recognition than pre-roll and post-roll ads because of attention spillover. However, a mid-roll ad is futile when the ad is unrelated to the video content. In contrast, post-roll ads can improve brand name recognition in an incongruent context.     

Matching audio/video app features with young user preferences: An integrated approach

Audio/video mobile applications (apps) enable people to engage in leisure activities without time and space restrictions, which gradually changed human leisure behaviours. This study is one of the first to integrate means-end chain theory, Kano and conjoint analyses to reveal young user preferences for entertainment audio/video mobile apps. A preliminary qualitative survey with 36 young interviewees established the questionnaire items in the subsequent survey of 389 young respondents. Results show that ‘subtitle choice’, ‘resolution selection’, ‘top ranking list’ and ‘advertising mode and format’ are key attributes that directly influence young user willingness to download apps. In particular, ‘flashing banner ads’, ‘resolution ≤ 480 ppi’, ‘5 seconds to skip ads’, providing ‘subtitle choice’ and without ‘top ranking list’ is the best combination of attribute levels of audio/video apps that meet young users' desires. That is, young users prefer mobile apps with ‘resolution ≤ 480 ppi’ and ‘subtitle’ choices and expect that they can skip flashing banner ads in 5 s. Providing a top audio/video ranking list, however, is unnecessary for young app users. The findings can help marketers and app designers develop effective app designs and advertising strategies for young users to expedite the adoption of entertainment audio/video apps.