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The spurts and multiplicity of Internet advertising have made multi-channel attribution an immediate challenge to marketing practitioners. Standard solutions in the industry including single source attribution models and fractional attribution models suffer from several drawbacks. First, they focus on a single firm where impact of competitors is unaccounted for. Second, they focus on conversion depriving these models from providing insight on how to choose the optimal ad format to match different shopping stages. Third, none of them considered the impact of inertia on customer’s purchase decision, leading to an underestimate of the long-run effectiveness of digital ads._x000D_ To overcome these deficiencies, we propose an integrated three-stage choice model that considers individual customers’ search and purchase decisions across all competitors to analyze the effects of touches on (1) customer’s choice of entry site, (2) their decisions about continuation of search, and (3) their subsequent purchases at one of the searched sites. _x000D_ _x000D_

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Competitive Analytics of Multi-channel Advertising and Consumer Inertia

The spurts and multiplicity of Internet advertising have made multi-channel attribution an immediate challenge to marketing practitioners. Standard solutions in the industry including single source attribution models and fractional attribution models suffer from several drawbacks. First, they focus on a single firm where impact of competitors is unaccounted for. Second, they focus on conversion depriving these models from providing insight on how to choose the optimal ad format to match different shopping stages. Third, none of them considered the impact of inertia on customer’s purchase decision, leading to an underestimate of the long-run effectiveness of digital ads._x000D_ To overcome these deficiencies, we propose an integrated three-stage choice model that considers individual customers’ search and purchase decisions across all competitors to analyze the effects of touches on (1) customer’s choice of entry site, (2) their decisions about continuation of search, and (3) their subsequent purchases at one of the searched sites. _x000D_ _x000D_