Optimal Feature Advertising Design Under Competitive Clutter

Abstract

This study investigates consumers' attention to retail feature ads and proposes a method to optimize the design of the ads. Utilizing a large dataset of consumers' attention to over 1,100 individual feature ads collected with eye-tracking technology, we analyze the effects of the five key design elements of feature ads--brand, text, pictorial, price, and promotion--on consumers' attention to them. Attention is measured in terms of selection and gaze duration. We focus on the effects of the surface sizes of the design elements. A key feature of our model is that it takes into account the impact of visual clutter in the ad display page. To capture the clutter effects, we propose two new entropy-based measures that characterize the salience of feature ads in their competitive environment based on Attention Engagement Theory. In a Bayesian framework, we simultaneously estimate the parameters of the model and optimize the design of feature ads in terms of surface sizes of the five design elements. Our optimization results and comparisons with alternative design approaches indicate that significant improvements in attention to feature advertising can be achieved without increase in costs, and that the resultant optimal feature ad designs create win-win opportunities for manufacturers and retailers.retailing, promotions, visual attention, hierarchical Bayes, eye-tracking

How Does the Use of Trademarks by Third-Party Sellers Affect Online Search?

“…A greater the number of ads increase the perception of advertising clutter (Danaher et al, 2008;Pieters et al, 2007). Therefore, we would expect the effect of exposure to increase with the number of ads displayed by third-party sellers after the policy change.…”

“…Studies by Kent and Allen (1993) and Danaher et al (2008) show that when similar ads are presented together, consumers perceive them as clutter and are more likely to ignore them. Eyetracker results from Pieters et al (2007) emphasize that the similarity of ads determines whether consumers view advertising as clutter. Theoretically, therefore, the introduction The theory predicts that the number of paid clicks for the trademark holder will decrease as its ad is made less distinct relative to its competitors.…”

“…In the 'Many Ads' conditions, we changed the number of ads that respondents saw. 21 Pieters et al (2007) argue that larger numbers of indistinct 18 It is also possible that the removal of ad messages emphasizing price reduced relative perceptions of quality for the trademark holders' paid link. However, this is not consistent with the observed increase in number of unpaid clicks.…”

“…Koch and Ullman (1985); Itti (2005)'s work on visual distinctness suggest that the salience of a paid search ad is not determined solely by its own design but also by the extent to which it is distinct from paid search ads. Similarity in ad features leads to competitive ad clutter (Kent and Allen, 1993;Pieters et al, 2007;Danaher et al, 2008;Goldfarb and Tucker, 2011b), which reduces the efficacy of advertising. If third-party sellers ads highlight the same trademark, they risk becoming less distinct, and consumers may choose instead the non-advertised path to the direct channel.…”

The effects of mailing design characteristics on direct mail campaign performance

“…More specifically, it is considered that advertisement design properties such as format and size, color, headlines, typography, and other creative elements play a crucial role in attracting consumers' attention (e.g., Pieters & Wedel, 2004;Pieters et al, 2007) as well as in building persuasive and emotional effects (e.g., Percy & Rossiter, 1983;Smith, MacKenzie, Yang, Buchholz, & Darley, 2007;Yang & Smith, 2009). Based on these theories and research on the effects of design in other media, we assume that the 4 different types of direct mail design categories exhibit differential effects on the direct mail performance, particularly at the first 2 stages of the direct mail funnel.…”