Effect of temporal spacing between advertising exposures: Evidence from online field experiments

Sahni, Navdeep S.

doi:10.1007/s11129-015-9159-9

Cited by 93 publications

(27 citation statements)

References 52 publications

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“…If an offer serves as a reminder of the products available on the platform, its impact can decline depending on the time elapsed from when it was sent (beginning of the offer) because of possible forgetting (Sahni 2015). However, its effect on expenditure at a point of time should not directly depend on whether the offer is valid.…”

Section: Longer-term Effectsmentioning

confidence: 99%

Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments

2017

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T he prevalence and widespread usage of email has given businesses a direct and cost-effective way of providing consumers with targeted discount offers. While these discounts are expected to increase the demand for the promoted products, are they effective in increasing revenues? Do they have effects beyond acting as price reductions? We study these questions using individual-level data from 70 randomized experiments run by a large online ticket resale platform. We estimate the redemption rates of the offers and also measure the broader impact of emailed promotions by comparing purchases by individuals who received the experimental promotions with purchases by those who did not receive the offers because of the experimental randomization. We find that the offers cause the average expenditure to increase significantly, by $3.03 (a 37.2% increase) during the promotion window. However, the redemption rate of these offers is low. Importantly, 90% of these gains are not through redemption of the offers. The individuals who spent more on the platform in the past are more responsive to the offers, and the effect of the offers is significantly higher among individuals who did not transact on the platform in the year before the offer was given. Interestingly, the offer causes carryover to the week after the promotion expires; we find that spending increases by $1.55 in the week after the offer expires. Additionally, we find evidence for cross category spillovers to nonpromoted products: offers not applicable to a ticket genre cause an increase in spending in that genre. We conclude that emailed offers can serve as a form of "advertising" for the firm's products, in addition to being tools for price discrimination.

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Section: Longer-term Effectsmentioning

confidence: 99%

Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments

2017

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“…Lodish et al (1995) report a meta-analysis of advertising experiments using split cable, where the only difference between the experimental and treatment group was on the TV advertisements they saw. Sahni (2015) use online field experiment to test for alternative mechanisms by which the temporal spacing of advertising impacts sales;…”

Section: A Advertisingmentioning

confidence: 99%

“…Methodologically, this paper is part of a small but growing empirical literature in marketing using field experiments to measure advertising effects (e.g., Eastlack and Rao 1989;Lodish et al 1995;and Sahni 2015). More broadly, this paper contributes to a research paradigm bridging empirical work in behavioral and quantitative marketing.…”

Section: Introductionmentioning

confidence: 99%

Do Sympathy Biases Induce Charitable Giving? The Effects of Advertising Content

2016

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We randomize advertising content motivated by the psychology literature on sympathy generation and framing effects in mailings to about 185,000 prospective new donors in India. We find significant impact on the number of donors and amounts donated consistent with sympathy biases such as the "identifiable victim," "in-group" and "reference dependence." A monthly reframing of the ask amount increases donors and amount donated relative to daily reframing. A second field experiment targeted to past donors, finds that the effect of sympathy bias on giving is smaller in percentage terms but statistically and economically highly significant in terms of the magnitude of additional dollars raised. Methodologically, the paper complements the work of behavioral scholars by adopting an empirical researchers' lens of measuring relative effect sizes and economic relevance of multiple behavioral theoretical constructs in the sympathy bias and charity domain within one field setting. Beyond the benefit of conceptual replications, the effect sizes provide guidance to managers on which behavioral theories are most managerially and economically relevant when developing advertising content.

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“…This approach has been used in prior work on other advertising channels (e.g., Goldfarb and Tucker 2011;Lodish et al 1995) and has the advantage of enabling us to quantify the extent to which campaign outcomes differ. We note that multiple field studies on advertising effectiveness that focus on a single medium and use an approach similar to ours have faced the same limitation (e.g., Goldfarb and Tucker 2011;Hu, Lodish, and Krieger 2007;Johnson, Lewis, and Reiley 2013;Lewis 2010;Lewis and Reiley 2010;Lodish et al 1995;Sahni 2012). In addition, because advertising treatment effects tend to be small and digital advertising field experiments often are statistically underpowered (Lewis and Rao 2013), a meta-analytic approach that pools data from multiple campaigns can be helpful.…”

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confidence: 94%

Which Products Are Best Suited to Mobile Advertising? A Field Study of Mobile Display Advertising Effects on Consumer Attitudes and Intentions

Bart

Stephen

Sárváry

2014

Journal of Marketing Research

239

151

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Mobile advertising is one of the fastest-growing advertising formats. In 2013, global spending on mobile advertising was approximately $16.7 billion, and it is expected to exceed $62.8 billion by 2017. The most prevalent type of mobile advertising is mobile display advertising (MDA), which takes the form of banners on mobile web pages and in mobile applications. This article examines which product characteristics are likely to be associated with MDA campaigns that are effective in increasing consumers' (1) favorable attitudes toward products and (2) purchase intentions. Data from a large-scale test-control field experiment covering 54 U.S. MDA campaigns that ran between 2007 and 2010 and involved 39,946 consumers show that MDA campaigns significantly increased consumers' favorable attitudes and purchase intentions only when the campaigns advertised products that were higher (vs. lower) involvement and utilitarian (vs. hedonic). The authors explain this finding using established theories of information processing and persuasion and suggest that when MDAs work effectively, they do so by triggering consumers to recall and process previously stored product information.

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Effect of temporal spacing between advertising exposures: Evidence from online field experiments

Cited by 93 publications

References 52 publications

Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments

Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments

Do Sympathy Biases Induce Charitable Giving? The Effects of Advertising Content

Which Products Are Best Suited to Mobile Advertising? A Field Study of Mobile Display Advertising Effects on Consumer Attitudes and Intentions

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