Targeted Advertising and Advertising Avoidance

Johnson, Justin P.

doi:10.2139/ssrn.2018938

Cited by 38 publications

(40 citation statements)

References 28 publications

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“…Although journalists generally agreed that this boundary should exist in theory, today many are questioning what Coddington (2015) referred to as an "anachronistic relic of a time when the news industry's survival wasn't threatened" (p. 68). Indeed, as circulations have declined and readers have turned to ad avoidance and ad blocking software, publishers have been keen to find new sources of revenue (Austin and Newman 2015;Johnson 2013). With this search, the language of newsroom leaders has increasingly come to dispute the need for the church9state division and defends the use of advertising as content that no longer has to erode consumer trust (Conill 2016), despite years of evidence to the contrary.…”

Section: Introductionmentioning

confidence: 99%

Saving Media or Trading on Trust?

Amazeen

Muddiman

2017

Digital Journalism

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Ext e n d in g re s e a rch fro m Wo jd yn s ki a n d Eva n s ( 2 0 1 6 ) , t h is e xp e rim e n t a l s t u d y re p lica t e s t h e ch a lle n g e s o f e ffe ct ive ly d is clo s in g n a t ive a d ve rt is in g t o re a d e rs a n d d e m o n s t ra t e s a p ro m is in g in o cu la t io n m e t h o d t h a t in cre a s e s like lih o o d o f re co g n it io n . Mo re o ve r, t h is q u a n t it a t ive re s e a rch in d ica t e s t h a t b o t h le g a cy a n d o n lin e n e ws p u b lis h e rs w e re e va lu a t e d le s s fa vo ra b ly fo r d is p la yin g n a t ive a d ve rt is in g . At t it u d e s t o wa rd t h e p u b lis h e r a n d p e rce p t io n s o f it s cre d ib ilit y d e clin e d fo r b o t h , a lt h o u g h o n lin e p u b lis h e rs s u ffe re d g re a t e r a t t it u d in a l d a m a g e t h a n d id le g a cy p u b lis h e rs wh o m a y b e n e fit fro m t h e ir e s t a b lis h e d re p u t a t io n . Extending research from Wojdynski and Evans, this experimental study replicates the challenges of effectively disclosing native advertising to readers and demonstrates a promising inoculation method that increases likelihood of recognition. Moreover, this quantitative research indicates that both legacy and online news publishers were evaluated less favorably for displaying native advertising. Attitudes toward the publisher and perceptions of its credibility declined for both, although online publishers suffered greater attitudinal damage than did legacy publishers who may benefit from their established reputation. URLKEYWORDS framing; journalism; media effects; native advertising; persuasion; source credibility Intr oductionAs advertising and subscriber revenues continue to plummet (Cillizza 2015; McChesney and Pickard 2011), legacy publishers are looking for ways to fund the costs of producing the content in their publications. With the technological revolution of digital media, a controversial practice is drawing increasing attention: the notion of "native advertising." Native advertising refers to the practice of creating ads that mimic, or appear "native" to, the platform on which they appear. These messages adopt the same format, font and tone as a traditional piece of journalism or user9generated post, often looking nearly identical to the content created by the platform publisher (Austin and Newman 2015;Conill 2016;Einstein 2016;Sonderman and Tran, 2013). The Interactive Advertising Bureau (IAB) defines native advertising as "paid ads that are so cohesive with the page content, assimilated into the design, and consistent with the platform behavior that the viewer simply feels that they belong" (IAB 2013, 3). It is varyingly referred to with different types of disclosures such as sponsored content, branded content, or promoted content. This inconsistent labeling of native advertising complicates an audience member's ability to identify the type of content he or she is consuming (Austin and Newman 2015;Conill 2016;Einstein 2016;Sonderman and Tran, 2013; Wojdynski and Evans 2015)...

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Section: Introductionmentioning

confidence: 99%

Saving Media or Trading on Trust?

Amazeen

Muddiman

2017

Digital Journalism

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“…Instead, as discussed by Johnson (2009), the challenge is to capture the disutility expressed by consumers when faced with more 'informative' advertising. The closest academic framework derives primarily from a social psychology literature that describes how consumers respond when they perceive something as overly intrusive or encroaching.…”

Section: Introductionmentioning

confidence: 99%

The economics of advertising and privacy

Tucker¹

2012

International Journal of Industrial Organization

147

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One of the new realities of advertising is that personal information can be used to ensure that advertising is only shown and designed for a select group of consumers who stand to gain most from this information. However, to gather the data used for targeting requires some degree of privacy intrusion by advertisers. This sets up a tradeoff between the informativeness of advertising and the degree of privacy intrusion. This paper summarizes recent empirical research that illuminates this tradeoff.

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“…Rational consumers, anticipating that the usefulness of the messages outweighs their nuisance, therefore do not switch on their blockers. Proposition 4 resembles a result in Johnson (2013) 31 Equilibrium blocking in his model is a consequence of imperfect marketing data, and reflects the fact that some consumers receive pure spam as a consequence of targeting inaccuracy. We could replicate this finding in the current model by using the modified setting of Section 4.…”

Section: Proposition 4 Suppose Thatmentioning

confidence: 58%

“…12 Many recent contributions on targeted advertising have abstracted away from price competition (e.g., Van Zandt, 2004;Athey and Gans, 2010;Johnson, 2013). We show in Section 2.2.1 and 4 respectively that our main result on how LA affects equilibrium targeting is robust to both endogenous pricing and imperfect information.…”

Section: Targeting Equilibriummentioning

confidence: 72%

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Targeted Information and Limited Attention

Hefti

Liu

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Targeted Information and Limited AttentionAndreas Hefti and Shuo Liu * AbstractWe study targeted information in a duopoly model with differentiated products, allowing for consumers with limited attention. The presence of inattentive consumers incentivizes firms to behave as if they were mass-advertisers, despite their ability to direct their messages precisely towards consumers with the strongest preferences. We show that the scope for targeting as an efficient marketing instrument can be severely reduced, for both firms and consumers, if the standard assumption of unbounded attention capacities is dropped.A central insight of our model is that limited attention may explain the recent evidence on increased ad-blocking, which has become a key concern to the entire advertising industry. Our main findings are robust to several variations, including price and salience competition as well as varying quality of the available marketing data.

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Targeted Advertising and Advertising Avoidance

Cited by 38 publications

References 28 publications

Saving Media or Trading on Trust?

Saving Media or Trading on Trust?

The economics of advertising and privacy

Targeted Information and Limited Attention

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