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Standardization and the Effectiveness of Online Advertising

Author

Listed:
  • Avi Goldfarb

    (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

  • Catherine E. Tucker

    (MIT Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02142)

Abstract

The technological transformation and automation of digital content delivery has revolutionized the media industry. Increased reliance on automation has also led to requirements for standardization of content-delivery formats. This paper examines how the memorability of banner advertising changed with the introduction of new standards regularizing its format. Using data from randomized field tests, we find evidence that for most ads, ad effectiveness falls as the use of standard formats rises. The decline is smaller when a standardized ad appears to be more original (such as ads created by an ad agency). Therefore, a likely explanation is that increased use of a standard format makes it harder for basic ads to distinguish themselves from their competition because the ad format commands less attention. This paper was accepted by Pradeep Chintagunta, marketing.

Suggested Citation

  • Avi Goldfarb & Catherine E. Tucker, 2015. "Standardization and the Effectiveness of Online Advertising," Management Science, INFORMS, vol. 61(11), pages 2707-2719, November.
    • Handle: RePEc:inm:ormnsc:v:61:y:2015:i:11:p:2707-2719
    DOI: 10.1287/mnsc.2014.2016
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    References listed on IDEAS

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    Cited by:

    1. Shehu, Edlira & Abou Nabout, Nadia & Clement, Michel, 2021. "The risk of programmatic advertising: Effects of website quality on advertising effectiveness," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 663-677.
    2. Miroslav Mandić & Iva Gregurec & UgljeÅ¡a Vujović, 2023. "Measuring the Effectiveness of Online Sales by Conducting A/B Testing," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 35(2), pages 223-249.

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