Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Online ads can get too close for comfort says new study

14.06.2010
Trying to have an impact in the brave new world of web advertising?

You could match an ad to a web page’s content – such as putting a car ad on an auto consumer website. Or, you could make it stand out with eye-catching pop-up graphics and video.

But don’t waste your marketing budget putting the two strategies together. The first large-scale study looking at thousands of online ad campaigns says that in combination, these approaches make viewers feel like their privacy is being invaded – and turns them off.

“Usually more is better,” says Avi Goldfarb, an associate professor of marketing at the Rotman School of Management, who wrote the paper with Catherine Tucker of MIT’s Sloan School of Business. “If targeting works and visible ads work, you’d think visible, targeted ads would work even better – but they didn’t.”

The study, which will be published in a forthcoming issue of Marketing Science, used data from nearly 3,000 web advertising campaigns across a wide variety of product categories. It found that high-visibility ads were associated with better consumer recall, while content-linked ads led to higher consumer purchase plans. But although consumers still had good recall when the strategies were used together, their purchase intentions were worse than if the ad had not been particularly visible at all.

The effect was strongest in more private product categories – such as financial products – and among consumers who declined to offer information about their incomes when asked in an online survey. The results may explain the unexpected success of Google AdSense, says the study, which uses unobtrusive text-based ads that are tied to a webpage’s content.

At $6 billion U.S. in revenue a year, Google Adsense generates more than half of the total online display market, worth about $11.2 billion.

“Our results show privacy matters in something of a subtle way in online advertising,” says Goldfarb. “Sometimes privacy violations are fine, sometimes they’re not.”

The complete study is available at: http://www.rotman.utoronto.ca/~agoldfarb/GoldfarbTucker-intrusiveness.pdf .

For the latest thinking on business, management and economics from the Rotman School of Management, visit http://www.rotman.utoronto.ca/NewThinking .

The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world’s most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. The School is currently raising $200 million to ensure Canada has the world-class business school it deserves. For more information, visit http://www.rotman.utoronto.ca.

Ken McGuffin
Manager, Media Relations
Rotman School of Management
Voice: (416) 946-3818
E-mail: mcguffin@rotman.utoronto.ca

Ken McGuffin | EurekAlert!
Further information:
http://www.utoronto.ca

More articles from Communications Media:

nachricht High Number of Science Enthusiasts in Switzerland
05.02.2018 | Universität Zürich

nachricht Between filter bubbles, uneven visibility and transnationality
06.12.2017 | Schweizerischer Nationalfonds SNF

All articles from Communications Media >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: BAM@Hannover Messe: innovative 3D printing method for space flight

At the Hannover Messe 2018, the Bundesanstalt für Materialforschung und-prüfung (BAM) will show how, in the future, astronauts could produce their own tools or spare parts in zero gravity using 3D printing. This will reduce, weight and transport costs for space missions. Visitors can experience the innovative additive manufacturing process live at the fair.

Powder-based additive manufacturing in zero gravity is the name of the project in which a component is produced by applying metallic powder layers and then...

Im Focus: Molecules Brilliantly Illuminated

Physicists at the Laboratory for Attosecond Physics, which is jointly run by Ludwig-Maximilians-Universität and the Max Planck Institute of Quantum Optics, have developed a high-power laser system that generates ultrashort pulses of light covering a large share of the mid-infrared spectrum. The researchers envisage a wide range of applications for the technology – in the early diagnosis of cancer, for instance.

Molecules are the building blocks of life. Like all other organisms, we are made of them. They control our biorhythm, and they can also reflect our state of...

Im Focus: Spider silk key to new bone-fixing composite

University of Connecticut researchers have created a biodegradable composite made of silk fibers that can be used to repair broken load-bearing bones without the complications sometimes presented by other materials.

Repairing major load-bearing bones such as those in the leg can be a long and uncomfortable process.

Im Focus: Writing and deleting magnets with lasers

Study published in the journal ACS Applied Materials & Interfaces is the outcome of an international effort that included teams from Dresden and Berlin in Germany, and the US.

Scientists at the Helmholtz-Zentrum Dresden-Rossendorf (HZDR) together with colleagues from the Helmholtz-Zentrum Berlin (HZB) and the University of Virginia...

Im Focus: Gamma-ray flashes from plasma filaments

Novel highly efficient and brilliant gamma-ray source: Based on model calculations, physicists of the Max PIanck Institute for Nuclear Physics in Heidelberg propose a novel method for an efficient high-brilliance gamma-ray source. A giant collimated gamma-ray pulse is generated from the interaction of a dense ultra-relativistic electron beam with a thin solid conductor. Energetic gamma-rays are copiously produced as the electron beam splits into filaments while propagating across the conductor. The resulting gamma-ray energy and flux enable novel experiments in nuclear and fundamental physics.

The typical wavelength of light interacting with an object of the microcosm scales with the size of this object. For atoms, this ranges from visible light to...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

Unique scope of UV LED technologies and applications presented in Berlin: ICULTA-2018

12.04.2018 | Event News

IWOLIA: A conference bringing together German Industrie 4.0 and French Industrie du Futur

09.04.2018 | Event News

 
Latest News

Getting electrons to move in a semiconductor

25.04.2018 | Physics and Astronomy

Reconstructing what makes us tick

25.04.2018 | Physics and Astronomy

Cheap 3-D printer can produce self-folding materials

25.04.2018 | Information Technology

VideoLinks
Science & Research
Overview of more VideoLinks >>>