IDEAS home Printed from https://ideas.repec.org/p/zbw/iubhma/323242.html

An analysis of the optimal advertising format for artificial intelligence (AI) tools

Author

Listed:
  • Cornelsen, Jens
  • Mählck, Anna

Abstract

This discussion paper examines the success factors of different advertising formats on AI platforms and based on this, develops a practice-oriented guide for the successful implementation of operational advertising measures for AI tools. The relevance of the topic results from the growing importance of AI in everyday digital life as well as the challenges for existing advertising measures to "prevail" in an increasingly advertising-resistant environment. This article is based on an IU master's thesis in which comprehensive literature research was combined with expert interviews and focus groups. Methodologically, potential success factors of different forms of advertising are identified and then evaluated regarding their "target group performance" using a self-developed "AI Advertising Relevance Score" (AARS) based on an utility model. The work further develops existing research on the integration of advertising formats in AI tools while also providing valuable implementation recommendations for operational practice. The still largely limited use of advertising in AI tools shows that further empirical studies are required to validate the direct applicability of the research results presented here in different scenarios. Overall, however, the work makes a valuable contribution to the fundamental understanding of the possibilities and limits of different advertising formats in AI tools and provides practical implications for the sustainable economic stabilization or "monetization" of conversational AI systems such as ChatGPT, Google Gemini or CoPilot.

Suggested Citation

  • Cornelsen, Jens & Mählck, Anna, 2025. "An analysis of the optimal advertising format for artificial intelligence (AI) tools," IU Discussion Papers - Marketing & Communication 3 (July 2025), IU International University of Applied Sciences.
  • Handle: RePEc:zbw:iubhma:323242
    DOI: 10.56250/4071
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/323242/1/193224395X.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.56250/4071?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anindya Ghose & Sha Yang, 2009. "An Empirical Analysis of Search Engine Advertising: Sponsored Search in Electronic Markets," Management Science, INFORMS, vol. 55(10), pages 1605-1622, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carattini, Stefano & Gillingham, Kenneth & Meng, Xiangyu & Yoeli, Erez, 2024. "Peer-to-peer solar and social rewards: Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 340-370.
    2. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    3. Stephan Wachtel & Thomas Otter, 2013. "Successive Sample Selection and Its Relevance for Management Decisions," Marketing Science, INFORMS, vol. 32(1), pages 170-185, September.
    4. Martin Spann & Oliver Hinz & Vandana Ramachandran, 2013. "Business and Information Systems Engineering and Marketing," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(3), pages 127-128, June.
    5. Bayer, Emanuel & Srinivasan, Shuba & Riedl, Edward J. & Skiera, Bernd, 2020. "The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value," International Journal of Research in Marketing, Elsevier, vol. 37(4), pages 789-804.
    6. Wei Zhou & Zidong Wang, 2020. "Competing for Search Traffic in Query Markets: Entry Strategy, Platform Design, and Entrepreneurship," Working Papers 20-12, NET Institute.
    7. Avi Goldfarb, 2014. "What is Different About Online Advertising?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(2), pages 115-129, March.
    8. Michael Arnold & Éric Darmon & Thierry Pénard, 2012. "To Sponsor or Not to Sponsor: Sponsored Search Auctions with Organic Links," Economics Working Paper Archive (University of Rennes & University of Caen) 201207, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    9. Raluca M. Ursu, 2018. "The Power of Rankings: Quantifying the Effect of Rankings on Online Consumer Search and Purchase Decisions," Marketing Science, INFORMS, vol. 37(4), pages 530-552, August.
    10. Darius Schlangenotto & Martin Poniatowski & Dennis Kundisch, 2018. "What Drives Paid Search Success: A Systematic Literature Review," Working Papers Dissertations 31, Paderborn University, Faculty of Business Administration and Economics.
    11. Qu, Chuang & Liu, Hanzhen & Wang, Sai, 2025. "Is ranking position equal to pricing power?—Evidence from Chinese e-commerce platforms," International Review of Economics & Finance, Elsevier, vol. 98(C).
    12. Anindya Ghose & Panagiotis G. Ipeirotis & Beibei Li, 2014. "Examining the Impact of Ranking on Consumer Behavior and Search Engine Revenue," Management Science, INFORMS, vol. 60(7), pages 1632-1654, July.
    13. Shengqi Ye & Goker Aydin & Shanshan Hu, 2015. "Sponsored Search Marketing: Dynamic Pricing and Advertising for an Online Retailer," Management Science, INFORMS, vol. 61(6), pages 1255-1274, June.
    14. Lijia Ma & Xingchen Xu & Yong Tan, 2024. "Crafting Knowledge: Exploring the Creative Mechanisms of Chat-Based Search Engines," Papers 2402.19421, arXiv.org.
    15. Totok Haryanto & Budhi Haryanto, 2025. "How Do YouTube Ads Shape Consumer Decisions? (Empirical Study on Gen-Z)," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 87-106.
    16. Thorsten Wiesel & Koen Pauwels & Joep Arts, 2011. "Practice Prize Paper --Marketing's Profit Impact: Quantifying Online and Off-line Funnel Progression," Marketing Science, INFORMS, vol. 30(4), pages 604-611, July.
    17. Hagiu, Andrei & Jullien, Bruno, 2014. "Search diversion and platform competition," International Journal of Industrial Organization, Elsevier, vol. 33(C), pages 48-60.
    18. Amin Sayedi & Kinshuk Jerath & Kannan Srinivasan, 2014. "Competitive Poaching in Sponsored Search Advertising and Its Strategic Impact on Traditional Advertising," Marketing Science, INFORMS, vol. 33(4), pages 586-608, July.
    19. Mengzhou Zhuang & Eric (Er) Fang & Jongkuk Lee & Xiaoling Li, 2021. "The Effects of Price Rank on Clicks and Conversions in Product List Advertising on Online Retail Platforms," Information Systems Research, INFORMS, vol. 32(4), pages 1412-1430, December.
    20. Vilma Todri & Anindya Ghose & Param Vir Singh, 2020. "Trade-Offs in Online Advertising: Advertising Effectiveness and Annoyance Dynamics Across the Purchase Funnel," Information Systems Research, INFORMS, vol. 31(1), pages 102-125, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:iubhma:323242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://www.iu.de/forschung/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.