Evaluating the influence of YouTube advertising for attraction of young customers

Nowadays, we have been faced with an increasing number of people who are spending tremendous amounts of time all around the world on YouTube. To date, the factors that persuade customers to accept YouTube advertising as an advertising medium are not yet fully understood. The present paper identified four dimensions towards YouTube advertising (i.e., entertainment, Informativeness, Customization and irritation) which may be affected on advertising value as well as brand awareness, and accordingly on purchase intention of consumers. The conceptual model hypothesizes that ad value strategies are positively associated with brand awareness, which in turn influence perceived usefulness of You Tube and continued purchase behavior. For this study, data were collected from students studying at the Sapienza University of Rome. In total, 315 usable questionnaires were chosen in order to analysis of data for the variables. The results show that entertainment, informativeness and customization are the strongest positive drivers, while irritation is negatively related to YouTube advertising. On the other hand, advertising value through YouTube affects both brand awareness and purchase intention of consumers accordingly.     

A model of advertiser—portal contracts: Personalization strategies under privacy concerns

Online portals provide personalization for “free”since the information acquired from consumers' usage of these services is valuable for advertising and targeted marketing purposes. Consumers' usage of services is determined by the tradeoff between their marginal value for personalized services and the resulting information privacy concerns and is captured by their personalization for privacy (P4P) ratio. A portal's decision to offer personalized services is dependent upon its cost of offering the services and revenue due to advertisers' marginal value for information (MVI) acquired therein. Through three models, our paper examines the strategic interaction between a portal that determines the service level to be offered and advertisers who pay the portal for placing advertisements through which they acquire information. Our first model of an independent portal finds that while all profits are increasing in the advertiser's MVI, with increasing P4P ratio the advertiser's profits are increasing at a faster rate than the portal's profits. In our second model, we consider an information sharing regime between two advertisers and find that a high MVI advertiser has a distinct first-mover advantage in announcing the services rate for the entire market. Our final model considers a portal that has its own advertising capabilities and we find that while this case is superior to others in the high MVI advertiser's and portal's profits, the consumer welfare and overall social welfare is dependent on the relative valuations of the two advertisers.     

AdROSA—Adaptive personalization of web advertising

One of the greatest and most recent challenges for online advertising is the use of adaptive personalization at the same time that the Internet continues to grow as a global market. Most existing solutions to online advertising placement are based on demographic targeting or on information gained directly from the user. The AdROSA system for automatic web banner personalization, which integrates web usage and content mining techniques to reduce user input and to respect users’ privacy, is presented in the paper. Furthermore, certain advertising policies, important factors for both publishers and advertisers, are taken into consideration. The integration of all the relevant information is accomplished in one vector space to enable online and fully personalized advertising.     

Advertising value and credibility transfer: attitude towards web advertising and online information acquisition

China is undergoing a transition from offline to online advertising, but little is known about the causal relationship regarding credibility transfer from non-web advertising to web advertising. Meanwhile, web advertising usage behaviour is largely overlooked. The purpose of this study is to explore the formation of customers' attitude towards web advertising (ATT) which further impacts their online information acquisition behaviour, from the perspectives of advertising value and credibility transfer. This paper develops a research model drawing upon advertising value, credibility transfer, ATT and tie. Data collected from Chinese online shopping customers were used to test the model. The results indicate that perceived informativeness, perceived entertainment and credibility contribute to the formation of ATT, which further impacts web advertising usage for getting information. Meanwhile, tie positively moderates the credibility transfer from non-web advertising to web advertising. These findings and their implications for theory and practice are discussed.     

The effect of web advertising visual design on online purchase intention: An examination across gender

With web advertising growing to be a huge industry, it is important to understand the effectiveness of web advertisement. In this study we investigate the effects of web advertising visual design (WAVD) purchasing intention within the framework of an integrated model. Nine hypotheses were developed and tested on a dataset of 316 observations collected via a questionnaire survey. The results of structural equation modeling (SEM) indicate that while web advertising visual cues influence consumers' purchasing intention through advertising attitudes and brand attitudes, they do not have direct effects on purchasing intention. Further results on the moderating role of gender suggest that web advertising visual cues have direct effect on consumers' purchasing intention for male groups but not for female groups. This study contributes to the understanding the role of visual dimensions in forming online purchase intentions.     

Comparing factors affecting attitudes toward LBA and SoLoMo advertising

This study compares the effectiveness of location-based advertising (LBA) and social-local-mobile (SoLoMo) advertising. The results show that SoLoMo advertising is more effective than LBA. Consumers perceive a higher level of brand interaction, entertainment, informativeness, perceived location awareness, and sociability in SoLoMo advertising than in LBA. This study also discovers that there are differences in consumers’ reaction to the ads on different situational contexts and platforms. The academic contribution of this paper lies in the direct comparison of the effectiveness of LBA and SoLoMo advertising, which was lacking in the literature. To our knowledge, this is the first study in which comparison between LBA and SoLoMo advertising is made. This paper fills the gap by investigating how factors associated with advances of modern smartphone functionalities, brand interaction, perceived location awareness, and sociability, affect attitudes towards ads. It also contributes to the theory of effectiveness of telecommunication promotion by examining how consumers react to ads in different situational contexts on different platforms. Finally, this study provides practical suggestions.     

Do males and females think in the same way? An empirical investigation on the gender differences in Web advertising evaluation

Informativeness and entertainment are regarded as two types of advertising value that can influence consumers’ attitudes toward Web advertising. Despite of many studies on these two factors, there are two research gaps in extant literature. First, the effects of informativeness and entertainment on attitude are considered separately, yet their interaction effect is neglected. Second, the role of individual characteristics (e.g., gender) in the advertising evaluation process is far from clear. To address these two issues, a laboratory experiment was conducted to investigate the interaction effect between informativeness and entertainment, and also the moderating role of gender. The results indicate that informativeness can help form a more positive attitude for males than for females, and entertainment can lead to a more positive attitude for females than for males. It is also found that there is a three-way interaction among informativeness, entertainment, and gender. More specifically, the interaction effect between informativeness and entertainment is significant for females, but insignificant for males. Results, research contributions, and limitations are discussed, and implications for future studies are suggested.     

基于模糊优化的关键词广告预算分配策略

针对单搜索引擎,研究了广告主竞投多个关键词时的广告时序预算分配策略,在总预算限制下建立了以最大化广告收益、最小化无效点击为双目标的单引擎多关键词广告时序预算分配模型,并给出了模糊优化双目标预算分配模型的解法。通过验证,该预算分配模型对广告主在单搜索引擎上竞投多个关键词广告时起着策略性指导作用。     

An empirical test to measure the effectiveness of online advertising in online marketplaces using a hierarchical Bayes model

Online marketplace, taken the form of “open market” where a very large number of buyers and sellers participate, has occupied a rapid increasing position in e-commerce, which resulting in sellers’ increasing investment on online advertising. Hence, there is a growing need to identify the effectiveness of online advertising in the online marketplaces such as eBay.com. However, it is problematic to directly apply the existing online advertising effect models for click-through data of online marketplaces. Therefore, there is a need for developing a model to estimate the effectiveness of online advertising in online marketplace considering its characteristics. In this paper, we develop an analytical Bayesian approach to modeling click-though data by employing the Poisson-gamma distribution. Our results have implications for online advertising effect measurement, and may help guide advertisers in decision-making.     

网络广告关键词选择优化

搜索引擎广告系统的核心任务是针对用户提交的每个查询,决定以何种顺序显示哪些广告。这是广告商和搜索引擎之间的一个博弈过程：搜索引擎需要准确地估算广告的点击率,提高广告收益、广告商的满意度及用户的满意度;广告商则需要猜测搜索引擎的排序模型、竞价广告栏并依据广告效果调整广告策略以及执行其他的搜索引擎优化动作。探讨了推测CPC模式下搜索引擎广告排序模型的一般方法,并据此指导广告商的关键词选择策略。     

A distributed platform for personalized advertising in digital interactive TV environments

Advertising plays an important role in modern free markets. Furthermore, advertising is moving towards the establishment of one-to-one marketing relationships. Thus, personalized advertisement is currently considered as a hot topic in product promotion as it can be proved beneficial for all the key players, such as the advertisers, the advertised companies, as well as the consumers. Interactive TV and WWW can provide the means for personalized advertising. But of course, special systems and platforms for personalization must be first developed. This paper proposes a prototype system which efficiently achieves the personalization of the advertisements in the environment of digital interactive TV. Thus, the environment for the exploitation of the proposed system are examined, the details in design and implementation are given, while extensive operation testing and evaluation are provided proving its high applicability in real business environments.     

L-Shape advertising for mobile video streaming services: Less intrusive while still effective

Advertising is significant in video streaming services on mobile devices, as well as in other e-business services. Advertisement providers pay part or the entire service cost; hence, users enjoy services at a low price or free of charge. However, users perceive advertisements as clutter and avoid them. To reduce advertising avoidance and enhance advertising efficiency, various methods, such as raising advertising relevance, seeking advertisement permission, or changing advertisement position, are suggested. This study introduces L-Shape advertising, a new strategy suitable for mobile video streaming services, as it is less distractive and effective. We demonstrate the superiority of L-Shape advertising compared to popular advertising formats such as skippable and non-skippable advertisements. The study empirically tests how the proposed strategy performs and examines users’ cognitive processes applying eye-tracking technology. We found that L-Shape advertising is less distractive but still effective.     

How to select search keywords for online advertising depending on consumer involvement: An empirical investigation

In paid search advertising on Internet, advertisers bid for specific keywords. Consumer involvement affects a consumer’s purchase intention. However, there has been no research on selecting keywords in paid search advertising depending on consumer involvement from the advertisers’ perspective. Our paper investigates the effects of several factors including impressions, click-through rate, conversion rate, the number of competitors and the quantity of online customer reviews on the performance of individual keywords. Our analysis shows that regardless of consumer involvement, the conversion rate and the number of reviews significantly affect to the performance of individual keywords but the click-through rate does not. In addition, the effects of impressions and the number of competitors partially exist depending on consumer involvement. This study provides managerial insights into paid search advertising and can give some assumptions in the theoretical modeling literature for allocating advertising budgets.     

On web user tracking of browsing patterns for personalised advertising

On today’s Web, users trade access to their private data for content and services. App and service providers want to know everything they can about their users, in order to improve their product experience. Also, advertising sustains the business model of many websites and applications. Efficient and successful advertising relies on predicting users’ actions and tastes to suggest a range of products to buy. Both service providers and advertisers try to track users’ behaviour across their product network. For application providers this means tracking users’ actions within their platform. For third-party services following users, means being able to track them across different websites and applications. It is well known how, while surfing the Web, users leave traces regarding their identity in the form of activity patterns and unstructured data. These data constitute what is called the user’s online footprint. We analyse how advertising networks build and collect users footprints and how the suggested advertising reacts to changes in the user behaviour.     

Modeling the dynamic optimal advertising in stochastic condition

An effort to model the dynamic optimal advertising was made with the uncertainty of sales responses in consideration. The problem of dynamic advertising was depicted as a Markov decision process with two state variables. When a firm launches an advertising campaign, it may predict the probability that the campaign will obtain the sales reponse. This probability was chosen as one state variable. Cumulative sales volume was chosen as another state variable which varies randomly with advertising. The only decision variable was advertising expenditure. With these variables, a multi-stage Markov decision process model was formulated. On the basis of some propositions the model was analyzed. Some analytical results about the optimal strategy have been derived, and their practical implications have been explained.     

Online shopping,misleading advertising and consumer protection

One of the most substantive developments in the delivery of marketing activities in recent years has undoubtedly been the emergence and growth of Internet shopping. This relatively new form of communication has revolutionised the buying and selling of products and services, enabling customers to select and import items – many of which are not available through local shop fronts – directly from vendors around the world with the click of a button, and often at a reduced price. Although online shopping has provided a new international landscape to conduct business, the use of this medium and the absence of face-to-face interactions has presented the law with numerous challenges in terms of the scope of consumer protection. This article examines the nature and extent of misleading and deceptive online advertising and looks at the degree to which common law and legislation have evolved to deal with false, deceptive or misleading advertising on the Internet.     

用数字看网络广告

本文在分析现有网络广告研究的基础上,尝试进行网络广告的数字研究.在收集实际调研数据的基础上,对网络广告现阶段的一些现象和特征进行数字化,并采用横向、纵向的类比法对这些现象和特征进行定量分析研究.笔者在选定的时间内,选择国内具有代表性的网站,每天于固定时段抓取这些站点中固定页面上的横幅广告和弹出式广告,共抽取样本二百余条,分别对这些广告的行业分类,技术分类,品牌标志的使用情况、人物、产品图片和文案的使用情况,互动功能的使用情况等进行分类统计,并在此分类统计的基础上进行分析研究.     

Optimal dynamic advertising with an adverse exogenous effect on brand goodwill

We propose the model of a firm that advertises a product in a homogeneous market, where a constant exogenous interference is present. Using the framework of Nerlove and Arrow’s advertising model, we assume that the interference acts additively on goodwill production as a negative term. Hence, we allow that the goodwill may become negative and we associate a zero demand with negative goodwill values. We consider a piecewise linear demand function and formulate a nonsmooth optimal-control problem with an infinite horizon. We obtain that an optimal advertising policy exists and takes one of two forms: either a positive and constant advertising effort, or a decreasing effort starting from a positive level and eventually reaching the zero value at a finite exit time. In the former scenario, the demand is always positive and the firm stays in the market in the long run; in the latter, the demand becomes zero in the short run, and afterward, the firm goes out of business. In both cases we have an explicit representation of the optimal control, which is obtained through the study of an auxiliary smooth optimal-control problem. It is interesting that the fundamental choice between staying in the market and going out of business at some time depends both on the interference level and on the initial goodwill level.     

Predicting user response to sponsored advertising on social media via the technology acceptance model

Sponsored advertising has generated strong advertising revenues for Facebook in recent years. As sponsored ads are built on an interactive platform that could be seen as invasive to user privacy, the growth of this advertising platform has important implications for consumers, and advertisers alike. As little research is available on consumer response to sponsored advertising as an interactive technology innovation, the current study assesses the effects of user perceptions of privacy risk, intrusiveness concerns and utilities of sponsored advertising on consumer attitudes and purchase intent. Testing a model derived form the technology acceptance model (TAM), the study found that privacy and intrusiveness concerns are both valid antecedent variables to perceived usefulness but not perceived ease of use of sponsored advertising. While both antecedent variables also influence consumer attitudes toward sponsored advertising, only privacy concerns have an impact product purchase intentions. The hypothesized relations between perceived usefulness, ease of use, attitudes and purchase intentions were also validated.     

Optimizing direct response in Internet display advertising

Internet display advertising has grown into a multi-billion dollar a year global industry and direct response campaigns account for about three-quarters of all Internet display advertising. In such campaigns, advertisers reach out to a target audience via some form of a visual advertisement (hereinafter also called “ad”) to maximize short-term sales revenue. In this study, we formulate an advertiser’s revenue maximization problem in direct response Internet display advertisement campaigns as a mixed integer program via piecewise linear approximation of the revenue function. A novelty of our approach is that ad location and content issues are explicitly incorporated in the optimization model. Computational experiments on a large-scale actual campaign indicate that adopting the optimal media schedule can significantly increase advertising revenues without any budget changes, and reasonably sized instances of the problem can be solved within short execution times.