Effects of game‐product congruity on in‐app interstitial advertising and the moderation of media‐context factors

Advertising has become one of the major sources of game apps revenues and interstitial ads, in particular, are the most used monetization method among the types of in‐game mobile ad formats. Interstitial ads overlaid on top of a mobile game app have more obvious advertising intent and a higher degree of forced exposure and perceived intrusiveness. This study examined how the degree of congruity (high vs. moderate vs. low) between the promoted products in interstitial ads and the mobile game app environment affects consumers’ responses. The moderating effects of media‐context factors (i.e., excited– or calm–happiness game types and game immersion) were further assessed. The results of two experiments revealed that game‐product congruity lead to better consumers’ responses toward ads and advertised products. The positive effects of game‐product congruity were more salient when consumers played calm–happiness games and were less immersed in the game. Theoretical implications on integrating perspectives across disciplines such as schema theory, happiness, and immersion within the media‐context framework, as well as practical suggestions are discussed.     

Measuring and forecasting mobile game app engagement

Monetization strategies in the large and strongly growing mobile app space must go beyond traditional purchase revenue as most mobile apps are now free to download. One key marketing innovation allows mobile app publishers to monetize ongoing engagement — in-app advertising.We study ongoing user engagement with a mobile app after the initial download decision using the $40 billion mobile gaming industry as an example. Our study investigates and forecasts user engagement after the initial download aiming to help publishers to monetize their engagement via in-app advertising. We leverage a novel dataset containing user-level engagement for 193 mobile games and propose a hierarchical Poisson model on a mobile-game level. We find significant usage heterogeneity across the mobile games studied and generate forecasts publishers can use when trying to monetize engagement via pre-sold contracts.     

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.     

Paid search: The innovation that changed the Web

Search engines are key to the operation of the World Wide Web. This centrality, however, presents challenges: search engine providers face the problem of revenue generation when users expect free content, while advertisers need to attract the interest of searchers. The innovation that effectively addresses these challenges is the use of text advertisements based upon search topic, known as paid search. The method entails advertisers competing for top listing position through bidding in ongoing auctions and then paying when users click on their advertisements, making paid search a flexible and accountable form of advertising. Since its introduction in 1998, paid search has become the dominant form of online advertising and led to Google's $140 billion market capitalization in 2006. This article analyzes the emergence of paid search and the mechanics of its operation, and offers managers guidance on its effective usage.     

The rules of engagement: how to motivate consumers to engage with branded mobile apps

ABSTRACT

This research presents and validates a framework, which illustrates how to motivate consumers to engage with branded mobile applications, or apps. The framework shows that consumer involvement with branded apps underpins two sets of consumer perceptions of the benefits that the app offers, which reflect the different motives for engaging with the app, as consumers experience them. These perceptions include the utilitarian motives of security, usefulness and ease of use; and the hedonic motives of interpersonal utility, attachment (with the device) and entertainment. This range of motives leads to the willingness to pay for the app and the willingness to recommend it. This research contributes to marketing theory by clarifying specific details of the psychological process through which it is possible to motivate consumer engagement with branded apps - i.e. by means of binding involvement, perceptions of how apps’ benefits meet individual needs and two key outcomes. The findings also yield managerial relevance. Above all, the outcomes of this research suggest that, by involving and motivating consumers through the improvement of the benefits that a branded app offers, it is possible to increase the app’s revenues and to encourage word-of-mouth, creating value for app providers and consumers.     

How do firms make money selling digital goods online?

We review research on revenue models used by online firms who offer digital goods. Such goods are non-rival, have near zero marginal cost of production and distribution, low marginal cost of consumer search, and low transaction costs. Additionally, firms can easily observe and measure consumer behavior. We start by asking what consumers can offer in exchange for digital goods. We suggest that consumers can offer their money, personal information, or time. Firms, in turn, can generate revenue by selling digital content, brokering consumer information, or showing advertising. We discuss the firm’s trade-off in choosing between the different revenue streams, such as offering paid content or free content while relying on advertising revenues. We then turn to specific challenges firms face when choosing a revenue model based on either content, information, or advertising. Additionally, we discuss nascent revenue models that combine different revenue streams such as crowdfunding (content and information) or blogs (information and advertising). We conclude with a discussion of opportunities for future research including implications for firms’ revenue models from the increasing importance of the mobile Internet.     

Symbols or icons in gay-themed ads: How to target gay audience

This study examines the characteristics of gay-themed ads, focusing on culturally meaningful symbols or iconographies, in gay magazines (specifically Out and Curve). In recent years, advertising scholars and practitioners have grown more interested in how gay-themed ads influence gay consumers and nongay consumers. In gay-themed ads, advertisers employ culturally meaningful symbols or iconographies as part of an effort to not alienate nongay consumers. Gay-themed advertising, however, has yet to be deeply analyzed in terms of creativity or consumer reactions. We go on to clarify the findings' implications, discuss some concerns raised over gay-themed ads, and suggest directions for future research.     

Effects of Ethnic Identity on Perceived Advertisers’ Motives in Values Advocacy Advertising

The current study examined Asian American consumers’ responses to values advocacy advertising through the interaction of levels of ethnic identification (weak or strong Asian ethnic identification) and culturally embedded ads (low and high in Asian/White culturally embedded ads) in evaluating altruistic motives of advertisers and purchase intention through an experimental design. The findings suggest that low Asian ethnic identifiers may identify with the advertiser employing Asian spokespersons with Asian cultural cues and in turn, perceive that the advertisers advocate social causes with altruistic motives. However, they did not feel congruent with the advertisers utilizing values advocacy ads with low Asian cultural cues (only featuring Asian spokespersons) more than with low/high White cultural cues (featuring White spokespersons with and without White cultural cues).The findings were discussed based on ethnic schema and attribution theory. Further, the present study discusses how Asian American consumers view ads through their different lenses toward meanings of race and culture based on their different levels of ethnic identification.     

Intermediary roles in local mobile advertising: Findings from a Finnish study

This research examines the intermediary roles that advertising agencies perform between small local advertisers and a mobile advertising service provider. The intermediary roles have been left unexplored, although the agencies have influence on their client's decisions to use new media. A real-life experiment of new mobile advertising system was conducted, and interview data from eight advertising agencies were collected. The findings show that agencies may play three types of roles. In playing connecting, mediating, and inhibiting roles, agencies influence the value created not only for their clients' but also for themselves and the advertising media provider.     

Influence of gender stereotypes on advertising offensiveness and attitude toward advertising in general

Although considerable research has examined attitude toward advertising in general (AG), little is known about AG's determinants. This study investigates gender stereotype-related constructs whose relationship with AG is understudied and unclear. Structural equation modeling demonstrates that attitude toward sex/nudity in advertising predicts AG indirectly through the perceived offensiveness of advertising. Also, the more consumers believe that advertising portrays gender stereotypes, the less favorable their AG. Multi-group analyses, however, demonstrate that offensiveness harms AG for men, but not women. Also, gender-stereotype attitudes harm AG for female and younger consumers, but do not harm AG for male or older consumers. These results have important implications for advertisers in message targeting and advertisement execution strategies. Also, because unfavorable AG increases demands for governmental oversight and interference, the advertising industry should strengthen self-regulation. This self-regulation should proscribe traditional gender stereotypes and excessively erotic ads that may offend consumers, even if those consumers are outside an advertiser's target market.     

Television ad-skipping,consumption complementarities and the consumer demand for advertising

Endogenous consumption of advertising is common. Consumers choose to change channels to avoid TV ads, click away from paid online video ads, or discard direct mail without reading advertised details. As technological advances give firms improved abilities to target individual consumers through various media, it is becoming increasingly important for models to reflect the endogenous nature of ad consumption and to consider the implications that ad choice has for firms’ targeting strategies. With this motivation, we develop an empirical model of consumer demand for advertising in which demand for ads is jointly determined with demand for the advertised products. Building on Becker and Murphy (The Quarterly Journal of Economics, 108(4), 941–964 1993)’s ideas, the model treats advertising as a good over which consumers have utility and obtains demands as the outcome of a joint utility maximization problem. Leveraging new data that links household-level TV ad-viewing with product purchases, we provide empirical evidence that is consistent with the model: ad-skipping is found to be lower when a household has purchased more of the advertised brand, and purchases are higher when more ads have been watched recently, suggesting that advertising and product consumption are jointly determined. Fitting a structural model of joint demand to the data, we evaluate consumer welfare and advertiser profitability in advertising targeting counterfactuals motivated by an “addressable” future of TV. We find that targeting on the predicted ad-skip probability is an attractive strategy, as it indirectly selects consumers that value the product. Reflecting the positive view of advertising in the model, we also find that net consumer welfare may increase in several targeting scenarios. This occurs because under improved targeting, firms shift advertising to those who are likely to value it. At the same time, consumers that do not value the ads end up skipping them, mitigating possible welfare losses. Both forces are relevant to assessing advertising effects in a world with improved targeting and ad-skipping technology.     

Evolution in the usage of localized appeals in Japanese and American print advertising

Based on global consumer culture theory, this empirical investigation examines how the usage of local appeals in Japanese and American advertising content has shifted over a period of nearly three decades. It replicates and improves upon Mueller’s investigation (Journal of Advertising Research, 1987, 27(3)). Content analysis determined the existence or absence of five traditionally Japanese appeals vs five traditionally Western appeals in 2005 issues of women’s, general interest, business and sports magazines published in each country. A total of 899 US ads and 853 Japanese ads were collected. Japanese advertisers appear to have turned to a rather more direct and persuasive selling approach, but continue to maintain a tradition of Japanese subtlety. American ads have shifted from a hard-hitting and aggressive strategy to a more benefit-orientated strategy with a distinctly softer touch. Appeals employed, however, were found to vary with the product category promoted. Overall, findings suggest that while Japanese advertising may have become somewhat more ‘American’, American advertising appears to have become significantly more ‘Japanese’. Possible future convergence between Eastern and Western advertising has implications for international marketers as they craft messages to appeal to these audiences.     

Recognizing Native Ads as Advertising: Attitudinal and Behavioral Consequences

This study assessed consumers' initial reactions to in‐feed native ads appearing as news content. In particular, it focuses on consumers' recognition of advertising when they realize that content they had thought were news stories had in fact been advertising. Recognition of advertising made consumers infer that advertisers had deliberately manipulated them. Consequently, consumers engaged less with the message, had less positive attitudes toward the brand, and were less likely to purchase and share. The results demonstrated the mechanisms through which the two mediators, manipulative intent and message engagement, lowered brand attitude, purchase intention, and sharing intention. In addition, ad disclosure made more people recognize the ad when they were exposed to it than when it was not disclosed as an ad.     

Disentangling location-based advertising: the effects of location congruency and medium type on consumers' ad attention and brand choice

Research on location-based advertising (LBA) suggests that the merits of LBA lie in the fact that consumers can be targeted with location-congruent ads on their personal mobile devices. However, LBA consists of two underlying constructs: a mobile (vs. point-of-sales) advertising medium and location congruency (vs. location incongruency). This study aims to disentangle these underlying constructs by showing that they differentially affect the efficacy of an ad. Using a virtual reality lab experiment, this study shows that location-congruent ads result in increased choice for the target brand as compared to location-incongruent ads, independent of medium type. However, in location-incongruent situations, mobile ads attracted more attention than point-of-sales display ads. The advantages of LBA thus do not seem to emanate from medium type, but rather from the congruency between the ad and product location. When the ad is received at a different location than the product, the mobile medium is able to enhance consumers' ad attention.     

Comedic violence in advertising: the role of normative beliefs and intensity of violence

Interest in the use of comedic violence in advertising has risen, but the research on this topic has been limited. Past studies have found positive effects of comedic violence in ads, with higher levels of violence increasing positive responses. However, given that the violence depicted in these ads is a violation of social norms, following the Social Norms Theory, it is proposed that individual norm beliefs about violence in advertising could be a significant factor in influencing ad outcome. Using an online panel of general consumers across two experiments, this study revealed that norm beliefs had a positive influence on comedic violence ad responses. In addition, when violence intensities of the ads were varied, individuals with lower norm beliefs responded more positively to low violence ads than high violence ads, whereas individuals with higher norm beliefs did not exhibit different responses to the two violence intensities. Mediation analyses were conducted to test for the underlying mechanisms. As comedic violence advertising may offend audiences, the findings provide targeting and design implications for advertisers interested in this strategy.     

Use of Professional Journal Ads to Promote Accounting Services

ABSTRACT

This paper presents an examination of professional journal advertising by professional accounting firms. Advertisements in the three most widely distributed professional accounting journals were analyzed to ascertain the extent of advertising by accounting firms. Research questions included the following: (1) What is the message or purpose of the ads? (2) What size ads are preferred? (3) What is the information content (firm's location, phone number, etc.) of the ads? (4) Which firms advertise the most?

The findings indicate that the most common advertising message concerned selling computer software, followed by employee recruitment. The most common size ads were between a quarter of a page and a page. Information content ranged from phone number and address to professional credentials and specialized services. Advertisements were widely used by both Big Six and non-Big Six accounting firms. The extent of advertising among Big Six firms, however, is highly varied, with Arthur Andersen & Co. generating the most ads. Advertising allows firms the opportunity to reach consumers, provide useful information, and distinguish themselves from other firms.     

How augmented reality affects advertising effectiveness: The mediating effects of curiosity and attention toward the ad

Many major consumer-driven companies have started to use augmented-reality (AR) technology and AR apps to enrich their customers' shopping experiences and engagement with their brands, and to ultimately increase sales. However, there is scant research discussing the application of AR in an advertising context. Thus, the major goal of this study is to explore how, why, and when augmented reality influences advertising effectiveness. A field experiment and two laboratory experiments demonstrate that an AR advertisement increases consumers’ attitude toward the ad through an increase in their curiosity toward the ad and attention toward the ad (i.e., measured by a physiological measure using eye-tracking). However, the effects only hold when consumers are unfamiliar with the AR ad technology. Overall, this study provides practical implications to advertisers who are considering integrating augmented reality technology in their advertising efforts.     

Taste and nutrition: the uses and effectiveness of different advertising claims in women's magazine food advertisements

A multi-method study was conducted to examine different advertising claims in current food advertising and to determine the effectiveness of different advertising claims on females’ evaluative judgments of food advertisements. Content analysis results of 678 women's magazine food ads indicated functional food ads appeared to adopt nutrition appeals without taste claims and a combined use of nutrition appeals and taste claims, whereas hedonic food ads tended to use taste claims without nutrition appeals. Nevertheless, these food advertising practices were called into question by the results of two experiments, showing the combined use of nutrition appeals and taste claims was the most effective strategy for both hedonic and functional foods. However, for hedonic foods, advertisers need to include more congruent than extremely incongruent claims. Implications for food advertisers and policy-makers were discussed.     

Examining consumers' continuous usage of multichannel retailers' mobile applications

This paper examines the variables influencing a consumer's satisfaction and continuous use of a multichannel retailer's mobile application. Drawing upon the Expectation Confirmation Model for Information Technologies, post-adoption literature, and consumer behavior literature, we assess pertinent factors on the continuous usage of multichannel retailers' mobile apps. Through a sample of 1009 consumers who retained a retailer's mobile app for more than 6 months and conducting Structural Equation Modelling, the findings illustrate that utilitarian variables (perceived usefulness, ease of use, and personalization), hedonic variables (perceived enjoyment), and a brand-related variable (consumer loyalty intention toward the retailer's brand), play a significant role in influencing continuous usage of multichannel retailers' mobile apps. In contrast to e-commerce research, the study outlines that escapism plays a negative role in both consumer satisfaction and intention to continue to use a multichannel retailer's mobile app. Previous research points to the fact that consumers' retention of retailers' apps is low. This paper contributes to the emerging literature on consumers' continuous use of retailers' mobile apps through enhancing our understanding of technology and non-technology-related variables.