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
Ken McGuffin | EurekAlert!
Product placement: Only brands placed very prominently benefit from 3D technology
07.07.2016 | Alpen-Adria-Universität Klagenfurt
NASA Goddard network maintains communications from space to ground
02.03.2016 | NASA/Goddard Space Flight Center
Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...
A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.
Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...
In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.
“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...
The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.
The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...
Broadband rotational spectroscopy unravels structural reshaping of isolated molecules in the gas phase to accommodate water
In two recent publications in the Journal of Chemical Physics and in the Journal of Physical Chemistry Letters, researchers around Melanie Schnell from the Max...
16.11.2016 | Event News
01.11.2016 | Event News
14.10.2016 | Event News
05.12.2016 | Power and Electrical Engineering
05.12.2016 | Materials Sciences
05.12.2016 | Power and Electrical Engineering