Consumers’ responses to native vs. banner advertising: moderation of persuasion knowledge on interaction effects of ad type and placement type

Applying advertising contextual theory, we examined the conditions under which native advertising embedded in a news website was more effective. With the use of college students (n = 189), a 2 (type of ad: native vs. banner) × 2 (type of ad placement: solo vs. duo) × 2 (persuasion knowledge: high vs. low) online experimental design was employed. In the solo condition, native advertising was evaluated more favorably than banner advertising in perceived fit, ad credibility, brand attitudes and click intention. Significant interaction effects between ad type and placement type were found on all dependent variables, with native advertising showing a significant decrease in duo (vs. solo) placement. These interaction effects appeared to be more pronounced for consumers with high persuasion knowledge, confirming its moderating role. Theoretical and managerial implications were discussed regarding the strategic placement of native advertising in news websites.     

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.     

Understanding Why Consumers Don't Skip Pre-Roll Video Ads

Pre-roll advertising is a novel form of online video advertising that provides consumers with an option to skip after viewing a brief forced segment. Pre-roll ads are unique from other forms of online advertising because pre-roll ads play in exactly the space in which consumers are expecting to view their intended content. Such interruption and obstruction not only heightens consumer irritation but also causes attention-getting tactics, which are redundant in a highly attentive state, to backfire. For these reasons, existing ad avoidance literature may not adequately address this unique format. Employing a large industry data set of pre-roll ads representing multiple countries and product categories, we empirically examine skipping behavior using a broader range of ad characteristics than previous research. We propose that less complex affective ad characteristics increase skipping by failing to engage cognitive resources and therefore leaving cognitive resources available to experience irritation. We further posit that, in a pre-roll context, attention-getting ad characteristics are not only superfluous but actually increase the likelihood consumers recognize pre-roll content as advertising and skip. Our empirical findings support these assertions, identifying new factors driving ad avoidance, and calling into question the applicability of attention-getting advertising approaches in the novel pre-roll environment.     

Online Behavioral Advertising: A Literature Review and Research Agenda

Advertisers are increasingly monitoring people's online behavior and using the information collected to show people individually targeted advertisements. This phenomenon is called online behavioral advertising (OBA). Although advertisers can benefit from OBA, the practice also raises concerns about privacy. Therefore, OBA has received much attention from advertisers, consumers, policymakers, and scholars. Despite this attention, there is neither a strong definition of OBA nor a clear accumulation of empirical findings. This article defines OBA and provides an overview of the empirical findings by developing a framework that identifies and integrates all factors that can explain consumer responses toward OBA. The framework suggests that the outcomes of OBA are dependent on advertiser-controlled factors (e.g., the level of personalization) and consumer-controlled factors (e.g., knowledge and perceptions about OBA and individual characteristics). The article also overviews the theoretical positioning of OBA by placing the theories that are used to explain consumers’ responses to OBA in our framework. Finally, we develop a research agenda and discuss implications for policymakers and advertisers.     

When transparency pays off: Enticing sceptical consumers with two-sided advertising

It has been generally assumed that higher levels of scepticism towards advertising invariably lead to higher resistance to advertising appeals. The main purpose of the present research was to examine whether highly sceptical consumers' resistance can be overcome by appeals associated with higher credibility. We tested our hypotheses using message sidedness as an advertising variable that has been associated with higher (two-sided) versus lower (one-sided) credibility. In three experimental studies, we examined more versus less sceptical consumers' responses to two- versus one-sided appeals. We found that two-sided messages are more effective in increasing purchase intentions, through enhanced credibility, but only for consumers who are more sceptical of advertising. Less sceptical consumers trust both messages equally and their purchase intentions are not affected by the type of message. Importantly, we also showed that highly sceptical consumers trust two-sided appeals as much as their less sceptical counterparts. The study contributes to the literature on advertising and persuasion knowledge by showing that advertising scepticism does not elicit a single response tendency, as originally conceptualized. Rather, advertising scepticism is more consistent with the underpinnings of the Persuasion Knowledge Model, in that higher knowledge about persuasion tactics aids consumers to better cope with, and not invariably resist persuasion attempts. We conclude that transparency pays off because it may entice a more sceptical audience and, at the same time, it does not harm less sceptical consumers' trust and purchase intentions.     

How sponsorship transparency mitigates negative effects of advertising recognition

The proliferation of covert online advertising formats such as advergames has raised concerns about consumers’ ability to recognize such content as advertising and about how recognition affects evaluative outcomes. The present research utilized an online experiment (N?=?179) to examine differences between covertness of advertising format (advergame vs. online video commercials) on advertising recognition, and whether sponsorship transparency mediates – and mitigates – the negative effects of advertising recognition on attitude toward the ad, attitude toward the brand, and purchase intent. The results show that covertness of advertising format, recognition, and sponsorship transparency all shape consumers’ responses to online ads. Specifically, the predicted negative indirect effect of covertness of advertising format on attitudes and behavioral intention via advertising recognition reversed valance when sponsorship transparency was included in the serial mediation model.     

Newsfeed native advertising on Facebook: young millennials’ knowledge,pet peeves,reactance and ad avoidance

Abstract

This study explores how young millennials understand and respond to newsfeed native advertising on Facebook, rooting our focus on its covert nature of the ad format. Drawing insight from two persuasion-related theories, we conducted focus group interviews and in-depth interviews with Facebook users aged 19–29. The study revealed three major themes regarding their interactions with newsfeed ads: persuasion knowledge, positive and negative experiences and avoidant coping responses. Participants showed a high level of persuasion knowledge of how Facebook newsfeed ads work and ambivalent attitudes toward newsfeed native ads. Despite some benefits, newsfeed native ads presented strong negative responses, which were often accompanied by reactance and ad avoidance. Multiple themes regarding negative experiences emerged: ad intrusiveness, ad clutter, a lack of relevance, too personal, privacy concern, goal impediment and covertness. Participants also voiced less autonomy in controlling their exposure to newsfeed ads. Theoretical and managerial implications are discussed and a model for future research is provided.     

Predicting Consumer Avoidance of Native Advertising on Social Networking Sites: A Survey of Facebook Users

Abstract

As a result of constant efforts to improve consumers’ online advertising experiences, native advertising has started to gain popularity on social networking sites (SNSs). This survey study examined antecedents of avoidance of native advertising on SNSs and the moderating role of consumer skepticism toward native advertising. Our findings suggest perceived intrusiveness and perceived informative and entertainment advertising value as major antecedents of consumer advertising avoidance. Additionally, the number of brands that consumers are following on SNSs and negative communication among peers on SNSs were found to be factors affecting native advertising avoidance. Finally, consumer skepticism toward native advertising was found to be an important moderating variable in the mechanism of advertising avoidance on SNSs.     

The Influence of Consumers’ Cognitive and Psychographic Traits on Perceived Deception: A Comparison Between Online and Offline Retailing Contexts

In this article, we examine the role of several consumers’ cognitive and psychographic traits in their perceptions of retailers’ deceptive practices (perceived deception) and the different effects on perceived deception associated with online vis-à-vis in-store shopping. Building on theoretical models of persuasion in consumer behavior, we hypothesize that the antecedents of perceived deception in traditional settings are the same as those on the Internet, while the intensity of the impact of these antecedents differs between the online and the offline environment. Results suggest that the effects of individual’s cognitive traits (Internet-based information search and perceived Internet usefulness) and risk aversion on perceived deception are more relevant when consumers shop online than when they purchase from traditional stores. Conversely, psychographic traits (shopping enjoyment and materialism) play a more important role in explaining perceived deception in the traditional shopping context as compared to the online channel. Several theoretical and managerial implications are derived from these findings.     

Developmental antecedents to children’s responses to online advertising

Many critics have raised concerns about online advertising directed to children. This study investigated the role of several antecedent variables that may impact children’s attitudinal and behavioural responses to online advertising. Specifically, online ad scepticism, family communication patterns, time spent on the internet, and perceived internet competency were examined as factors that may impact children’s online advertising attitudes and behaviours. A survey conducted with a dyad sample of 381 parents-preteens in South Korea revealed that children with high scepticism towards online advertising, who spent less time using the internet and who perceived lower levels of confidence about their internet skills were more likely to have a negative attitude towards online advertising and less likely to disclose personal information to online marketers. However, the relationship between family communication and children’s responses to online advertising found in this study was inconsistent with the previous empirical findings. Implications of findings are discussed and directions for future research suggested.     

The interplay between consumer self-view,cognitive style,and creative visual metaphors in print advertising

This paper examines the use of an advertising rhetoric technique – visual metaphor, and its persuasion effects in light of consumers’ cultural and individual dispositional characteristics when processing visually relational information. Of particular interest are the culturally driven self-views and individuals’ cognitive thinking styles. An experimental study involving visual metaphor manipulations in the context of print advertising was conducted. Results showed that, visual metaphor techniques significantly enhanced the persuasion outcomes through consumers’ evaluation of the advertising message and the brand. Both consumers’ self-construal orientation and their analytic-holistic processing style, moderate the effects of visual metaphors in print ads for low-involvement products, but not for high-involvement products. Implications for academics and practitioners, as well as future research directions suggested through the current experiment, are discussed.     

The Tri-Mediation Model of persuasion

In this paper, the effects of positive versus negative (political) advertising are modelled. The findings show that positive as well as two different types of negative advertising will lead viewers to formulate specific attitudes towards the brand (sponsor). However, the manner in which these attitudes are formed will be affected by ad type and argument strength. It was found that under strong message argument conditions, negative attack ads may lead to more positive evaluations of the sponsoring candidate, whereas under weak message argument conditions, direct comparison ads may be superior.

In developing this model to include the effects of negative appeals, the traditional Dual Mediation Model of persuasion is redefined. The author demonstrates that a peripheral cue (attitude towards the ad) can have an impact on the central route to persuasion by fostering message acceptance not only in regard to the sponsor of the advertisement but also in regard to a competitor. The resultant Tri-Mediation Model of persuasion provides significant insights into the nature of cognitive processing resulting from exposure to negative advertising.     

WHY DO PEOPLE AVOID ADVERTISING ON THE INTERNET?

This study was designed to provide insights into why people avoid advertising on the Internet. Recent negative trends in Internet advertising, such as "banner blindness" and extremely low click-through rates, make it imperative to study various factors affecting Internet ad avoidance. Accordingly, this study builds a comprehensive theoretical model explaining advertising avoidance on the Internet. We examined three latent variables of Internet ad avoidance: perceived goal impediment, perceived ad clutter, and prior negative experience. We found that these constructs successfully explain why people cognitively, affectively, and behaviorally avoid advertising messages on the Internet. Perceived goal impediment is found to be the most significant antecedent explaining advertising avoidance on the Internet.     

Self-Regulation for Online Behavioral Advertising (OBA): Analysis of OBA Notices

This study assessed how and to what extent self-regulation of online behavioral advertising (OBA) is executed on participating companies' websites. Based on the principles of OBA, as outlined by the Digital Advertising Alliance and Federal Trade Commission, we analyzed the format of OBA notices, explanation of OBA notices, opt-out options, transparency, and use of unacceptable notices. A series of content analyses was done in the years 2013 and 2015. Our results indicated slight improvements over the years, but the specific details of the implementation continued to fall short of the standards. In terms of accessibility and visibility, many websites demonstrated problematic presentations or lack of the components necessary to increase consumers' understanding and control over the practice of OBA.     

Clarifying the Relationship between Involvement Variables and Advertising Effectiveness among Young People

Previous research has indicated the need for an in-depth investigation of the role of involvement variables in advertising information processing among young people, in view of the unsuitability of existing adult persuasion models for a young population, the inadequate consideration of involvement variables among young people and the unique characteristics of this population. This study examined the effects of advertising involvement and product involvement on advertising effectiveness among young people, using a quantitative study of 252 4–15-year olds. Results show that advertising involvement and product involvement had a positive direct effect on ad effectiveness. In addition, all endogenous variables—subjective product knowledge, peer and parent influence and age—had an indirect effect on ad effectiveness, via advertising involvement and product involvement. Interestingly, subjective product knowledge and peer influence had no direct effect on ad effectiveness, but rather only an indirect effect. This study presents a more accurate depiction of the complexity of the process and shows that advertising involvement and product involvement contribute to a better understanding of the process among young people.     

Empathy with influencers? The impact of the sensory advertising experience on user behavioral responses

Short-form video influencer advertising offers new opportunities for user sensory experience to promote advertising effectiveness and induce positive user responses. This unique means of influencer-generated advertising via short-form videos has not yet been investigated. This study builds on the reciprocity norm of social exchange theory to investigate relationships among ad sensory stimuli (i.e., the sensory advertising experience), the efficacy of influencer advertising (i.e., empathy and altruistic motive), and user behavioral responses (i.e., ad avoidance intention, ad engagement, and purchase intention). It also seeks to shed light on the critical role of perceived influencer effort in these relationships. An empirical study using data from TikTok (Douyin) users and results indicate that sensory advertising experience positively affects user behavioral responses through the serial mediation of empathy and altruistic motive. Additionally, perceived influencer effort is found to be a crucial moderator of the effect of sensory advertising experience on user empathy, which further influences user behavioral responses. The findings provide insight into the persuasion effect and mechanism of short-form video influencer advertising and offer suggestions for advertising campaign designers.     

Young British partisans’ and non-voters’ processing of attack election advertising and the implications for marketing politics

Abstract

This article presents an empirical study of young partisans’ and non-voters’ processing of attack ad messages utilised in the 2010 British general election. Expanding understanding of how these messages are processed is important because they can aid electoral and civic engagement, which is declining amongst youth. Currently, there is limited understanding of how youth process these ad messages and how they influence their engagement. We applied motivated reasoning to explore this in a national survey in England with 18- to 22-year-old British first-time voters, with data from 646 respondents presented in this article. Overall, our young partisans and non-voters employed motivated reasoning – (de)selection and critical appraisal – in their ad processing, thereby advancing understanding of how youth process attack election advertising. Concerns surrounding the use of attack election advertising emerge, suggesting the need for greater appraisal of the relevance of marketing in the development of election campaign strategies.     

Do online ad breaks clearly tell kids that advergames are advertisements that intend to sell things?

Advergames, blending advertising messages with interactive games, aggressively target young children online. Due to the immersive and embedded nature of commercial messages in advergames, it is important to provide a cue to trigger children’s persuasion knowledge of the marketplace and advertising. The purpose of this study was to analyse the format, content and characteristics of online ad breaks. The results showed that many websites do not provide any type of ad break. Furthermore, the content and characteristics of ad breaks revealed problems of low visibility, readability and deficiency in terms of stating the commercial intent of advergames.     

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.     

Consumers as legitimating agents: How consumer‐citizens challenge marketer legitimacy on social media

Previous research has shown that consumers increasingly challenge the legitimacy of marketers and unsolicited marketing communication in online contexts. Based on a qualitative study, this article examines how and for what reasons consumers challenge marketer legitimacy—the perceived appropriateness of marketers and their activities—in the empirical context of Reddit, a popular social news and community website. The study suggests that consumers challenge or accept marketer legitimacy in online communities based on particular, community and situation specific, legitimacy criteria that reflect and reproduce the values and norms of the community. In doing so, it is argued, consumers play a role as legitimating agents—consumer‐citizens that have the power to confer or deny legitimacy in the context of business‐society relations. Overall, the study advances knowledge in the field of consumer studies in two ways. First, it builds a symbolic interactionist perspective on consumer‐citizens as legitimating agents who enact their active citizenship role in the marketplace by assessing and constructing marketer legitimacy in online communities. Second, it offers an empirically grounded account of how and for what reasons consumer‐citizens challenge or accept the legitimacy of marketers and unsolicited marketing communication in online communities.