Online Display Advertising: Targeting and Obtrusiveness
AbstractWe 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Marketing Science.
Volume (Year): 30 (2011)
Issue (Month): 3 (05-06)
e-commerce; privacy; advertising; targeting;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Tucker, Catherine E., 2012. "The economics of advertising and privacy," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 326-329.
- Avi Goldfarb & Catherine Tucker, 2011.
"Privacy and Innovation,"
in: Innovation Policy and the Economy, Volume 12, pages 65-89
National Bureau of Economic Research, Inc.
- Edelman, Benjamin & Gilchrist, Duncan S., 2012. "Advertising disclosures: Measuring labeling alternatives in internet search engines," Information Economics and Policy, Elsevier, vol. 24(1), pages 75-89.
- Catherine Tucker, 2011. "Virality, Network Effects and Advertising Effectiveness," Working Papers 11-06, NET Institute.
- Tatiana Komarova & Denis Nekipelov & Evgeny Yakovlev, 2011. "Identification, data combination and the risk of disclosure," CeMMAP working papers CWP38/11, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Randall Lewis & Justin M. Rao & David H. Reiley, 2013. "Measuring the Effects of Advertising: The Digital Frontier," NBER Chapters, in: Economics of Digitization National Bureau of Economic Research, Inc.
- Argenton, C. & Prüfer, J., 2011.
"Search Engine Competition with Network Externalities,"
2011-024, Tilburg University, Tilburg Law and Economic Center.
- Argenton, C. & Prüfer, J., 2012. "Search engine competition with network externalities," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5117898, Tilburg University.
- Alexandre de CorniÃ¨re & Romain De Nijs, 2013. "Online Advertising and Privacy," Economics Series Working Papers 650, University of Oxford, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.