Online Display Advertising: Targeting and Obtrusiveness

doi:10.1287/MKSC.1100.0583

Home
/
Papers
/
Online Display Advertising: Targeting and Obtrusiveness

Journal Article•DOI•

Online Display Advertising: Targeting and Obtrusiveness

Avi Goldfarb¹, Catherine Tucker²•Institutions (2)

University of Toronto¹, Massachusetts Institute of Technology²

01 May 2011-Marketing Science (INFORMS)-Vol. 30, Iss: 3, pp 389-404

TL;DR: It is found that matching an ad to website content and increasing an ad's obtrusiveness independently increase purchase intent, however, in combination, these two strategies are ineffective.

read less

Abstract: We use data from a large-scale field experiment to explore what influences the effectiveness of online advertising. We find that matching an ad to website content and increasing an ad's obtrusiveness independently increase purchase intent. However, in combination, these two strategies are ineffective. Ads that match both website content and are obtrusive do worse at increasing purchase intent than ads that do only one or the other. This failure appears to be related to privacy concerns: the negative effect of combining targeting with obtrusiveness is strongest for people who refuse to give their income and for categories where privacy matters most. Our results suggest a possible explanation for the growing bifurcation in Internet advertising between highly targeted plain text ads and more visually striking but less targeted ads.

...read moreread less

Content maybe subject to copyright Report

Citations

PDF

Open Access

More filters

行銷硏究 : Marketing research

[...]

鄭宇庭

01 Jan 2009

3,235 citations

Journal Article•DOI•

[...]

Lisette de Vries¹, Sonja Gensler¹, Peter S.H. Leeflang², Peter S.H. Leeflang¹•Institutions (2)

University of Groningen¹, Libera Università Internazionale degli Studi Sociali Guido Carli²

01 May 2012-Journal of Interactive Marketing

TL;DR: In this article, the authors analyzed 355 brand posts from 11 international brands spread across six product categories and found that vivid and interactive brand post characteristics enhance the number of likes and positive comments on a brand post.

...read moreread less

1,621 citations

Cites background from "Online Display Advertising: Targeti..."

...Vividness can be achieved by the inclusion of dynamic animations, (contrasting) colors, or pictures (Cho 1999; Drèze and Hussherr 2003; Fortin and Dholakia 2005; Goldfarb and Tucker 2011; Goodrich 2011)....
[...]
...Interactivity is characterized by two-way communication between companies and customers, as well as between customers themselves; put differently, it characterizes many-tomany communication (Goldfarb and Tucker 2011; Hoffman and Novak 1996)....
[...]

Journal Article•DOI•

Privacy and human behavior in the age of information

[...]

Alessandro Acquisti¹, Laura Brandimarte¹, George Loewenstein¹•Institutions (1)

Carnegie Mellon University¹

30 Jan 2015-Science

TL;DR: This Review summarizes and draws connections between diverse streams of empirical research on privacy behavior: people’s uncertainty about the consequences of privacy-related behaviors and their own preferences over those consequences; the context-dependence of people's concern about privacy; and the degree to which privacy concerns are malleable—manipulable by commercial and governmental interests.

...read moreread less

Abstract: This Review summarizes and draws connections between diverse streams of empirical research on privacy behavior. We use three themes to connect insights from social and behavioral sciences: people's uncertainty about the consequences of privacy-related behaviors and their own preferences over those consequences; the context-dependence of people's concern, or lack thereof, about privacy; and the degree to which privacy concerns are malleable—manipulable by commercial and governmental interests. Organizing our discussion by these themes, we offer observations concerning the role of public policy in the protection of privacy in the information age.

...read moreread less

1,139 citations

Journal Article•DOI•

How to Conduct Surveys: A Step-by-Step Guide

[...]

Lorraine Carter

01 Dec 2010-Canadian Journal of University Continuing Education

935 citations

Journal Article•DOI•

Digital marketing: A framework, review and research agenda

[...]

P.K. Kannan¹, Hongshuang Li²•Institutions (2)

University of Maryland, College Park¹, Indiana University²

01 Mar 2017-International Journal of Research in Marketing

TL;DR: In this article, the authors present a framework for research in digital marketing that highlights the touchpoints in the marketing process as well as in marketing strategy process where digital technologies are having and will have a significant impact.

...read moreread less

749 citations

Cites background from "Online Display Advertising: Targeti..."

...Goldfarb and Tucker (2011a) using a large scale survey of customers exposed to display ads found that, on average, “display advertising became far less effective at changing stated purchase intent after the EU laws were enacted,...
[...]
...Goldfarb and Tucker (2011a) found that the ad that is both obtrusive and targeted has less impact on purchase than ads that are only one or the other....
[...]

1
2
3
4
…
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140

Collapse

References

PDF

Open Access

More filters

Posted Content•

Mostly Harmless Econometrics: An Empiricist's Companion

[...]

Joshua D. Angrist, Jörn-Steffen Pischke

01 Jan 2009

TL;DR: The core methods in today's econometric toolkit are linear regression for statistical control, instrumental variables methods for the analysis of natural experiments, and differences-in-differences methods that exploit policy changes.

...read moreread less

Abstract: The core methods in today's econometric toolkit are linear regression for statistical control, instrumental variables methods for the analysis of natural experiments, and differences-in-differences methods that exploit policy changes. In the modern experimentalist paradigm, these techniques address clear causal questions such as: Do smaller classes increase learning? Should wife batterers be arrested? How much does education raise wages? Mostly Harmless Econometrics shows how the basic tools of applied econometrics allow the data to speak. In addition to econometric essentials, Mostly Harmless Econometrics covers important new extensions--regression-discontinuity designs and quantile regression--as well as how to get standard errors right. Joshua Angrist and Jorn-Steffen Pischke explain why fancier econometric techniques are typically unnecessary and even dangerous. The applied econometric methods emphasized in this book are easy to use and relevant for many areas of contemporary social science. An irreverent review of econometric essentials A focus on tools that applied researchers use most Chapters on regression-discontinuity designs, quantile regression, and standard errors Many empirical examples A clear and concise resource with wide applications

...read moreread less

7,192 citations

"Online Display Advertising: Targeti..." refers background or methods or result in this paper

...Generally speaking, our method follows the framework for causal econometric analysis provided in Angrist and Pischke (2009)....
[...]
...Generally, our method follows the framework for causal econometric analysis provided in Angrist and Pischke (2009)....
[...]
...Angrist and Pischke (2009) point out that this increased computational efficiency comes at little practical cost....
[...]
...This positive correlation has been well established in work such as Bemmaor (1995) and, in particular, has been found to be higher for product-specific surveys such as the ones conducted in our data than for categorylevel studies (Morwitz et al....
[...]

Book•

Marketing Research: An Applied Orientation

[...]

Naresh K. Malhotra

01 Sep 2003

TL;DR: The content of this 3rd edition marketing research textbook is practical and up to date and is based on an applied and managerially focused approach.

...read moreread less

Abstract: The content of this 3rd edition marketing research textbook is practical and up to date and is based on an applied and managerially focused approach. Australian an New Zealand research and examples have been thoroughly intergrated into every chapter.

...read moreread less

6,557 citations

"Online Display Advertising: Targeti..." refers methods in this paper

...This is significantly better than the 52% of successful campaigns that we would predict by chance using random assignment.6 In column (2), we use the full (1 to 5) scale of the dependent variable rather than discretizing it....
[...]

Journal Article•DOI•

Interaction terms in logit and probit models

[...]

Chunrong Ai¹, Edward C. Norton²•Institutions (2)

University of Florida¹, University of North Carolina at Chapel Hill²

01 Jul 2003-Economics Letters

TL;DR: In this article, the authors present the correct way to estimate the magnitude and standard errors of the interaction effect in nonlinear models, which is the same way as in this paper.

...read moreread less

5,500 citations

"Online Display Advertising: Targeti..." refers background in this paper

...One issue of a logit probability model compared to a linear probability model is that the interpretation of interaction terms in logit and probit models is not straightforward (Ai and Norton 2003), as they are a cross-derivative of the expected value of the dependent variable....
[...]
...The effects of targeted ads and obtrusive ads are even larger, though the prices of such ads are also higher....
[...]

Journal Article•DOI•

Practical Issues in Structural Modeling

[...]

Peter M. Bentler¹, Chih-Ping Chou¹•Institutions (1)

University of California, Los Angeles¹

01 Aug 1987-Sociological Methods & Research

TL;DR: In this article, practical problems that are frequently encountered in applications of covariance structure analysis are discussed and solutions are suggested, along with conceptual, statistical, and practical requirements fo...

...read moreread less

Abstract: Practical problems that are frequently encountered in applications of covariance structure analysis are discussed and solutions are suggested. Conceptual, statistical, and practical requirements fo...

...read moreread less

4,841 citations

"Online Display Advertising: Targeti..." refers background in this paper

...Bentler and Chou (1987),...
[...]
...Bentler and Chou (1987), while acknowledging that such scales are ordinal, argue that it is common practice to treat them as continuous variables because it makes little practical difference....
[...]

Journal Article•DOI•

Estimating production functions using inputs to control for unobservables

[...]

James Levinsohn¹, Amil Petrin²•Institutions (2)

University of Michigan¹, University of Chicago²

01 Apr 2003-The Review of Economic Studies

TL;DR: Olley and Pakes as discussed by the authors show that when intermediate inputs (i.e., those inputs which are typically subtracted out in a value-added production function) can also solve this simultaneity problem, and discuss some potential benefits of expanding the choice set of proxies to include these inputs.

...read moreread less

Abstract: Economists began relating output to inputs in the early 1800's. A large literature on estimating production functions has followed, in part because much of economic theory yields testable implications that are related to the technology and optimizing behaviour.1 Since at least as early as Marschak and Andrews (1944), applied researchers have worried about the potential correlation between input levels and the unobserved firm-specific productivity shocks in the estimation of production function parameters. The economics underlying this concern are intuitive. Firms that have a large positive productivity shock may respond by using more inputs. To the extent that this is true, ordinary least squares (OLS) estimates of production functions will yield biased parameter estimates, and, by implication, biased estimates of productivity. Many alternatives to OLS have been proposed, and we add to this set by extending Olley and Pakes (1996). They show the conditions under which an investment proxy controls for correlation between input levels and the unobserved productivity shock. Their approach has the advantage that, for many questions, it is no more difficult to implement than OLS. We show when intermediate inputs (those inputs which are typically subtracted out in a value-added production function) can also solve this simultaneity problem. We discuss some potential benefits of expanding the choice set of proxies to include these inputs.

...read moreread less

3,901 citations