What's Advertising Content Worth? Evidence from a Consumer Credit Marketing Field Experiment^*

Debunking the science of advertising

We delve into the world of advertising, worth hundreds of billions of dollars annually, to find out if it's really even that effective. A collection with 3 stories from The Correspondent.

“You Will:” A Macroeconomic Analysis of Digital Advertising

Abstract. An information-based model is developed where traditional and digital advertising finance the provision of free media goods and affect price comp

The $2.43 Billion Question: Podcast Advertising in 2024

An immersive data story exploring podcast advertising trends and the breaking point where ads drive audiences away.

Cognitive Load and Social Media Advertising

Social media engagement requires cognitive resources, which subsequently impact the advertisements consumers see while browsing. For the most part, however, advertising practitioners and scholars s...

Variety Effects in Mobile Advertising

Mobile app users are often exposed to a sequence of short-lived marketing interventions (e.g., ads) within each usage session. This study examines how an increase in the variety of ads shown in a session affects a user's response to the next ad. The authors leverage the quasi-experimental variation in ad assignment in their data and propose an empirical framework that accounts for different types of confounding to isolate the effects of a unit increase in variety. Across a series of models, the authors consistently show that an increase in ad variety in a session results in a higher response rate to the next ad: holding all else fixed, a unit increase in variety of the prior sequence of ads can increase the click-through rate on the next ad by approximately 13%. The authors then explore the underlying mechanism and document empirical evidence for an attention-based account. The article offers important managerial implications by identifying a source of interdependence across ad exposures that is often ignored in the design of advertising auctions. Furthermore, the attention-based mechanism suggests that platforms can incorporate real-time attention measures to help advertisers with targeting dynamics.

Advertising as a Reminder: Evidence from the Dutch State Lottery

We show that advertising can act as a reminder for consumers who intend to buy a product. , Consumers who intend to buy a product may forget to do so because they suffer from limited attention. Therefore, they may value being reminded by an advertisement. This reminder effect of advertising could be important in many markets but is usually difficult to document. We study it in the context of buying a product that has existed for almost 300 years: a ticket for the Dutch State Lottery. This context is particularly suitable for our analysis because the product is simple, it is very well known, and there are multiple fixed and known purchase cycles per year. Moreover, radio and TV advertisements are designed explicitly to remind consumers to buy a lottery ticket before the draw. This can conveniently be done online. We develop an approach to distinguish reminder effects of advertising from other effects, such as conveying information about the size of the jackpot. The key idea is that reminder effects are short lived. We use minute-level advertising and online sales data and find that the reminder effect of advertising is strong. Reaching 1% of the population by a radio advertisement leads to an increase in online sales of 1.55% in the four hours after the advertisement is aired. For TV advertisements, the increase is 0.78%. We show that the effects generally last longer for radio advertisements. We also provide direct evidence that reminding consumers not only affects the timing of purchases but also leads to market expansion. Finally, we estimate a model of consumer behavior under limited attention to quantify the effect on total sales. We find that total sales would be 16.7% lower without the reminder effect of advertising and that shifting advertising to the week of the draw would lead to a 9.2% increase in sales. History: Puneet Manchanda served as the senior editor and Günter Hitsch served as associate editor for this article. Supplemental Material: A replication package with code and log files and an Online Appendix are available at https://doi.org/10.1287/mksc.2022.1405 .

Field Experimentation in Marketing Research

Despite increasing efforts to encourage the adoption of field experiments in marketing research (e.g., Campbell 1969 ; Cialdini 1980 ; Li et al. 2015 ), the majority of scholars continue to rely primarily on laboratory studies ( Cialdini 2009 ). For example, of the 50 articles published in Journal of Marketing Research in 2013, only three (6%) were based on field experiments. The goal of this article is to motivate a methodological shift in marketing research and increase the proportion of empirical findings obtained using field experiments. The author begins by making a case for field experiments and offers a description of their defining features. She then demonstrates the unique value that field experiments can offer and concludes with a discussion of key considerations that researchers should be mindful of when designing, planning, and running field experiments.

Dare Obasanjo (@carnage4life@mas.to)

The decline of the advertising supported internet is inevitable yet sad. Tech has been unique in being an equalizer. A poor Nigerian kid, a techie in the US or Jeff Bezos all used the same apps and websites. Now many charge $5-$15 per month creating a huge financial divide. Online advertising is a progressive form of taxation as the rich, mostly US-based consumers who buy goods & services from ads subsidized the internet for everyone else. We now live in the flat tax version of the internet.

Introduction to the Journal of Marketing Research Special Interdisciplinary Issue on Consumer Financial Decision Making

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I truly hate mostpeopleslop

In 2006, Joe Sugarman published a book called The Adweek Copywriting Handbook - and an axiom stuck... "The sole purpose of the first sentence in an advertisement is to get you to read the second sentence." That line, more or less, explains how social media turned into a pile of

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Advertising media solutions Combine the power of Canada’s largest media brands across multiple platforms to multiple target groups. Advertising media solutions Combine the power of Canada’s largest media brands across multiple platforms to multiple target groups.

ICCL report on the scale of Real-Time Bidding data broadcasts in the U.S. and Europe - Irish Council for Civil Liberties

New report: the $127 billion "Real-Time Bidding" online ad industry tracks & shares what people view online, and their locations, 178 Trillion times a year in the U.S. & Europe.

Hello Local Business, Your AI Ads Are Costing You Customers

'Even if this was a genre popularised by human artists, it would still look like shit'

Experimental Study of Inequality and Unpredictability in an Artificial Cultural Market

Hit songs, books, and movies are many times more successful than average, suggesting that “the best” alternatives are qualitatively different from “the rest”; yet experts routinely fail to predict which products will succeed. We investigated this paradox experimentally, by creating an artificial “music market” in which 14,341 participants downloaded previously unknown songs either with or without knowledge of previous participants' choices. Increasing the strength of social influence increased both inequality and unpredictability of success. Success was also only partly determined by quality: The best songs rarely did poorly, and the worst rarely did well, but any other result was possible.

Experimental Study of Inequality and Unpredictability in an Artificial Cultural Market

Hit songs, books, and movies are many times more successful than average, suggesting that “the best” alternatives are qualitatively different from “the rest”; yet experts routinely fail to predict which products will succeed. We investigated this paradox experimentally, by creating an artificial “music market” in which 14,341 participants downloaded previously unknown songs either with or without knowledge of previous participants' choices. Increasing the strength of social influence increased both inequality and unpredictability of success. Success was also only partly determined by quality: The best songs rarely did poorly, and the worst rarely did well, but any other result was possible.