A comparison of attitudes towards Internet advertising among lifestyle segments in Taiwan

As the Internet gradually diffuses throughout more sectors in society many advertisers have begun to consider the diversity in various aspects of consumer behaviour among Internet users. As Internet users' attitudes towards Internet advertising are found to influence their brand attitudes and purchase intentions, the study can contribute to the design and assessment of Internet advertising. The study identified potential lifestyle segments among Internet users and examined the relationships between lifestyle segments and their attitudes towards Internet advertising. This study surveyed 700 Internet users and employed a lifestyle segmentation approach for categorizing consumers into three distinct lifestyle groups: ‘experiencers’, ‘traditionalists’ and ‘self‐indulgents’. Statistical analyses pointed out that all three groups differed from one another in several demographic characteristics. Moreover, the lifestyle clusters were found partly to predict Internet users' attitudes towards Internet advertising. The findings of the present study provide justifications for marketers to treat Internet users as a heterogeneous group. Furthermore, advertising researchers should be aware of the diversity of the Internet population in order to assess the effectiveness of Internet advertising better.     

The impacts of instructional video advertising on customer purchasing intentions on the Internet

As the application of the Internet has grown rapidly, electronic commerce is expected to become increasingly prosperous. In addition, since the launching of the Internet, more media in advertising have appeared. Online customer experiences and Web 2.0 are believed to be two of the driving forces behind the growth in online sales. A more advanced advertising medium is thus needed to stimulate customers’ purchasing intentions. One creative medium of advertising on the Internet is instructional video advertising. It provides instructions on how to operate the products being sold and/or on how the products function. Hence, the customers may in this way view the advertising, and finally the intention to purchase may be triggered. In order to explore how Internet instructional video advertising may affect customers’ purchasing intentions, we propose a new model that adopts the theory of reasoned action, the technology acceptance model, and others. We perform the survey to analyze how instructional video advertising may impact customers’ purchasing intentions.     

A network modeling approach for the optimization of Internet-based advertising strategies and pricing with a quantitative explanation of two paradoxes

This paper addresses the determination and evaluation of optimal Internet marketing strategies when a firm is advertising on multiple websites. An optimization model is constructed for the determination of the optimal amount of click-throughs subject to a budget constraint. The underlying network structure of the problem is then revealed and exploited to obtain both qualitative properties of the solution pattern as well as computational procedures. In addition, three different pricing schemes used in Internet marketing are quantitatively compared and indices that can guide marketers to shift from one scheme to another are proposed. Finally, two numerical examples are constructed that demonstrate two paradoxes: (1) that advertising on more websites may reduce the total responses and (2) that advertising on more websites may reduce the click-through rate. Through the analysis of the network model, such puzzling phenomena are then quantitatively explained.     

The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value

This research examines the impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value. Using proprietary data on annualized advertising expenditures for 1651 firms spanning seven years, we document that both display advertising and paid search advertising exhibit positive effects on firm performance (measured by sales) and firm value (measured by Tobin's q). Paid search advertising has a more positive effect on sales than offline advertising, consistent with paid search being closest to the actual purchase decision and having enhanced targeting abilities. Display advertising exhibits a relatively more positive effect on Tobin's q than offline advertising, consistent with its long-term effects. The findings suggest heterogeneous economic benefits across different types of advertising, with direct implications for managers in analyzing advertising effectiveness and external stakeholders in assessing firm performance.     

Strategic responses to market globalisation among advertising agencies

The advertising industry is undergoing major changes as markets and clients become more global. Using the integration-responsiveness framework and the transnational framework, it is apparent that advertising agencies have a high need to be simultaneously integrated and responsive. This paper reports on a series of depth interviews with international agency leaders intended to gain an assessment of both the extent to which their firms are responding to these important but conflicting needs and the appropriateness of the framework for understanding the strategic options available for ad agency management. The findings indicate that the agencies have tried to modify their strategies to accommodate both kinds of pressures. However, their success in this regard is questioned and other broader strategic concerns are considered.     

互联网广告批评初探

互联网的迅猛发展，必然带来互联网广告的繁荣。互联网广告繁荣的背后，也必然存在诸多问题。所以对互联网广告批评的研究意义重大，它能促进互联网广告的良性发展。本文认为互联网广告批评应该重点关注如下几个方面：互联网广告的真实性问题、性和暴力问题、隐私保护问题以及与公关的模糊化问题。     

An investigation of the influence of cinema environment on advertising effectiveness

Many advertisers are looking to cinema advertising as a nontraditional medium to reach consumers. Although several scholars have examined the effectiveness of this advertising vehicle, there is a dearth of empirically grounded research on how to improve such effectiveness. This study, based on the reactance and the equity theories, is probably the first academic project investigating how to manipulate an advertising environment in a real movie theatre to maximize advertising effectiveness. Results indicated that audiences in a distractive environment held a more positive attitude toward cinema advertising in general, but those in a restrictive environment were more likely to remember the advertised brands. In addition, the provision of ticket price information improved audiences’ acceptance of cinema advertising, but did not enhance recall. Moreover, the influence of ambient scent emitted into the atmosphere in a cinema room on ad recall dissipated when movie viewers became accustomed to such stimuli. Based on these findings, theoretical discussions and recommendations for practising managers were made.     

Wireless digital advertising: nature and implications

The convergence of the Internet and wireless telecommunications in the late 1990s has opened the way for a plethora of data services for the mobile handset user. One potential area of development is wireless advertising. The personal, always-at-hand nature of devices, along with the ability to assess context dependence (e.g. time and location), presents a rich platform for wireless advertising. Using a range of wireless platforms, operators will be able to offer very different advertising services that go beyond those of the wired Internet. The purpose of this paper is to review the emerging technologies, applications and research issues associated with wireless advertising. It concludes with some predictions on the future role of wireless advertising.     

Bundling products to success: The influence of complementarity and advertising

This study investigates the strategic influence of product complementarity and advertising on the success of bundling products. We use a profit maximization model to show that when a firm sells bundled products, both the product complementarity and advertising significantly impact the performance of bundled products. The bundling strategy with advertising can help firm achieve higher performance than the bundling strategy without advertising. However, the price discount to the identical products must be attractive to customers and the degree of product complementarity to the complementary products must be large enough, and then the bundling strategy with advertising can obtain a success in the market. Furthermore, our results also show that when the degree of the complementarity between two products increases, firm should invest less on advertising to promote the bundled products. Based on our results, we propose optimal marketing strategies for firms to adopt. Firm managers can utilize our findings to plan their bundling strategies wisely.     

The return to advertising expenditure

Every year companies spend billions of dollars on advertising in an effort to induce consumers to purchase their goods. Yet, unlike almost any other investment that a company makes, management's advertising allocation decision is made with little, if any, substantive information on the return received from that investment. This research presents a methodology for determining the monetary gains from advertising and provides an estimate of the return to advertising investment for a sample of firms. Substantial gains exist for firms from advertising. This effect is seen to vary by type of industry and is strongly related to other positive strategic decisions of the firm.The authors would like to thank Deborah Heisley, two anonymous referees, and the participants at the 1991 Marketing Science Conference for their comments and suggestions. We thank Sylvia Graham, Camilo Riano, Patrick Grant, Patricia James, and Cordy Cates for assistance in gathering the information for this paper.     

An empirical analysis of national and local advertising effect on price elasticity

This paper investigates the interaction effect of advertising and price on the market share of a consumer nondurable product. We postulate a model in which local advertising is thought to primarily affect the consumers' purchase by making the demand more price sensitive, and national advertising to affect the consumers' preference, thus making the demand less price sensitive. Moreover, we hypothesize that local advertising interaction will have more immediate effect, while national advertising interaction will have longer term interaction effects. We apply these ideas empirically, and find support for our hypotheses. Thus, the interaction effect of advertising and price can be characterized by both increased and decreased price sensitivity, depending on the type of advertising. Moreover, these effects may be present simultaneously for the same product.     

Agency beliefs in the power of advertising

Two opposing schools of thought on how advertising works have emerged. One, known as the ‘strong theory’, holds that advertising plays a centrally important part in the economic system of a country and is therefore a formidable market force. This view is generally associated with North American scholars and practitioners. An opposing view is that advertising is a rather weaker force, capable only of gently nudging or reminding consumers, rather than actually persuading them. This paper reports on a study of Australian advertising practitioners' beliefs in the power of advertising. Findings suggest that opinion overall is more weighted towards the strong theory, particularly among creative personnel. However, educational background/field of study, age and agency experience play significant roles in determining a practitioner's theoretical orientation. Business faculty graduates are more inclined towards the weak theory, while mass communications, journalism and art school graduates lean in the direction of the strong theory. Furthermore, younger practitioners, and those with less than seven years' agency experience, are more inclined towards the strong theory, but as they age and gain more experience, they tend towards a weak theory orientation.     

Permission-based mobile advertising

This article reports the results of a study of permission-based advertising via mobile phones. The study, part of the proof of concept for a UK startup, specifically explored the effectiveness of SMS text messaging as an advertising medium for reaching young adults. The results suggest that, with the right execution, the mobile channel has the potential to benefit both advertisers and consumers. The findings also include some suggestions about when and how to use this emerging new medium. Although confined to SMS text messaging in the UK, the results are also likely to be relevant to other countries, and to more advanced mobile communication technologies as these are rolled out.     

Investor sentiment and advertising expenditure

A strategic issue facing marketing managers is ‘how much and when’ to spend on advertising. We argue that investor sentiment in the stock market may influence advertising expenditure by affecting firms' ability to raise new funds. We show that during periods of low (high) investor sentiment, firms decrease (increase) their advertising expenditure, even though the effectiveness of advertising is greater (lower) during such periods. We also find that these results are stronger for financially constrained firms that rely more on external financing. Our findings suggest that marketing managers can improve the efficiency of their advertising expenditure by raising (reducing) it during periods of low (high) sentiment.     

Mail advertising and consumer behavior

This paper examines some trends in mail advertising and presents some findings from a longitudinal study on mail sent to and from U.S. households. Data from 1987 and 1991 interviews and diaries of a national probability sample of U.S. households were compared. As the third largest advertising medium, mail has grown in market share in the past decade as traditional advertising media declined or stayed the same. The paper examines how consumers feel, perceive and respond to the advertising mail they receive. It also explores how characteristics of the senders and recipients, factors outside the mail piece and the type of mail piece, influence consumer attitudes, perceptions, and treatment of the mail received. The paper concludes with recommendations to advertisers, marketers, and fundraisers for future research and for increasing the effectiveness of mail in their marketing mix. © 1996 John Wiley & Sons, Inc.     

National advertising,dual-channel coordination and firm performance

With the rapid development of e-commerce, many manufacturers nowadays opt to open an online channel to engage in direct online sales. The mix of retailing with an online channel adds a new dimension of competition and complementarity to a product's distribution channels. Our model focuses on the strategic effect of the manufacturer's national advertising on alleviating the channel competition. We use a game-theoretical model to show that opening an online channel with the added national advertising effectively alleviates the channel conflict and thus helps improve the whole channel and each channel member performance. Depending on the different product categories and the degree of channel substitutability, the manufacturer's investment in the national advertising also will be different. The value of national advertising increases as product is more compatible with online sales and channel substitutability increases.     

Search engine advertisements: The impact of advertising statements on click-through and conversion rates

Search engine advertising has emerged as the predominant form of advertising on the Internet. Despite its increasing importance academic research on this topic is scarce. Several authors have called for more research on how the content of the ad influences its evaluation. This exploratory study builds on this call for more research and examines the impact of evidence type on click-through and conversion rates in a search engine advertising setting. We find that click-through rates are higher for advertisements involving expert evidence and statistical evidence than for advertisements involving causal evidence. On the contrary, we find that causal evidence results in higher conversion rates than other types of evidence. These findings help marketers to fine-tune their advertising in search engines. In particular, if their aim is to attract people to the website, expert evidence and statistical evidence should be used, while causal evidence works best if the main objective is to generate conversions.     

The impact of the lost decade on advertising in Japan

This study describes the perceptions of Japanese advertising professionals regarding the evolution of advertising planning and execution over a three-decade period. Senior management and creatives from 18 of Japan’s top agencies participated in extensive in-person interviews to compare the traditional nature of Japanese advertising with that of the US, and to explore factors that may have caused a shift in the style of Japanese advertising since the 1980s ‘bubble economy’. A grounded theory approach was utilised as an interpretive methodology. The study finds that the dramatic recession experienced during Japan’s ‘lost decade’ indeed had a strong influence on the nature of Japanese advertising. Along with additional factors such as changes in the media landscape and the adoption of American-born audience measures, economic uncertainty during the 1990s pushed adverting agencies towards a more direct and persuasive selling approach. This trend contrasts sharply with a general societal shift from materialist to post-materialist values in Japan during this period.     

Internet media personality: scale development and advertising implications

This study explores the personality of Internet media and develops a multidimensional measurement scale to assess personality across diverse entities, including social networking sites, search engines, portals, and shopping sites. Through a series of qualitative and quantitative methods, including exploratory factor analysis and confirmatory factor analysis, the present study identifies a set of 30 personality traits that represent five unique dimensions of Internet media personality: Intelligent, Amusing, Convenient, Sociable, and Confusing. This study found that different pairs of brand and Internet media personality dimensions yield different effects on attitude toward advertising brands. Practical implications for marketers and advertisers, as well as theoretical implications for advertising researchers, are discussed.     

Retailer and manufacturer advertising scheduling in a marketing channel

This paper investigates, in a bilateral monopoly, the optimal scheduling of retailer and manufacturer advertising in a three-period planning horizon. Consistent with previous literature, the integrated channel adopts continuous advertising schedules when advertising effects are not very large and decay exponentially over time. Conversely, when pricing and advertising decisions are uncoordinated, vertical externalities also influence advertising scheduling. Consequently, channel members can optimally implement each of the following three advertising schedules depending on the effects of retailer and manufacturer advertising: The full continuous schedule, in which channel members advertise in the three periods; the full pulsing schedule, in which the two channel members advertise only in the first and third periods, and the mixed schedule where the retailer continuously advertises and the manufacturer advertises exclusively in the first and third periods. Surprisingly, the uncoordinated channel adopts lower retail prices than the integrated channel when the mixed schedule is adopted.