NDLI: Does banner advertising affect browsing for brands? clickstream choice model says yes, for some

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Does banner advertising affect browsing for brands? clickstream choice model says yes, for some

Content Provider	Springer Nature Link
Author	Rutz, Oliver J. Bucklin, Randolph E.
Copyright Year	2011
Abstract	This paper investigates how exposure to Internet display advertising affects the subsequent choices users make of brand-specific pages to view within a website. Using individual-level clickstream data from a third-party automotive website, we tracked the web pages selected by users as they browsed the site and their exposures to premium placement display ads for different vehicle makes (e.g., Ford, Toyota). Pages on the site were classified into those that displayed information about a specific vehicle make (a “make page”) versus those that did not (a “non-make page”). For each “make-page” viewed, the specific automotive make selected (e.g., Ford, Toyota) was also recorded. We use these data to develop a model of users’ make-specific page choices as a function of prior banner ad exposure on the site. Consumer heterogeneity is captured using a Bayesian Mixture approach. We find that banner ads influence subsequent choices of which make-specific pages to view for ads, served during the current browsing session but not for ads served in previous sessions. The effect of banner ads is also segmented: users in one segment (54%) reacted positively, users in a second segment (46%) were not influenced. Using a standard continuous approach to heterogeneity, we would have concluded–incorrectly–that banner advertising has no effect on the subsequent selection of make-specific pages. For the positively reacting segment, we estimate that the elasticity of make-page choice with respect to banner ad exposure is just under 0.2. Users in this segment appear less focused in their site browsing behavior and tend to stay longer than users in the non-reacting segment.
Ending Page	257
Page Count	27
Starting Page	231
File Format	PDF
ISSN	15707156
e-ISSN	1573711X
Journal	Quantitative Marketing and Economics
Issue Number	2
Volume Number	10
Language	English
Publisher	Springer US
Publisher Date	2011-11-15
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Heterogeneity Clickstream Statistics for Business/Economics/Mathematical Finance/Insurance Economic Theory Internet Econometrics Bayesian Analysis: General Banner advertising Advertising Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models Marketing Logit choice models
Content Type	Text
Resource Type	Article
Subject	Economics, Econometrics and Finance Marketing

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