Start Date
10-12-2017 12:00 AM
Description
This study captures the trade-off between effective and annoying display advertising. We propose a hidden Markov model that allows us to investigate the enduring impact of display advertising on consumers' purchase decisions and the potential of persistent display advertising to stimulate annoyance in consumers. Additionally, we study the structural dynamics of these display advertising effects by allowing the corresponding effects to be contingent on the latent state of the funnel path in which consumers reside. Our findings demonstrate a tension exists between generating interest and triggering annoyance in consumers; whereas display advertising has an enduring impact on transitioning consumers further down in the funnel path, display-advertising exposures beyond a frequency threshold can have an adverse effect by increasing the probability that consumers will be annoyed. Investigating the dynamics of annoyance, we reveal that consumers who reside in different stages of the funnel path exhibit considerably different tolerance for annoyance stimulation.
Recommended Citation
Ghose, Anindya; Singh, Param Vir; and Todri, Vilma, "Got Annoyed? Examining the Advertising Effectiveness and Annoyance Dynamics" (2017). ICIS 2017 Proceedings. 21.
https://aisel.aisnet.org/icis2017/DataScience/Presentations/21
Got Annoyed? Examining the Advertising Effectiveness and Annoyance Dynamics
This study captures the trade-off between effective and annoying display advertising. We propose a hidden Markov model that allows us to investigate the enduring impact of display advertising on consumers' purchase decisions and the potential of persistent display advertising to stimulate annoyance in consumers. Additionally, we study the structural dynamics of these display advertising effects by allowing the corresponding effects to be contingent on the latent state of the funnel path in which consumers reside. Our findings demonstrate a tension exists between generating interest and triggering annoyance in consumers; whereas display advertising has an enduring impact on transitioning consumers further down in the funnel path, display-advertising exposures beyond a frequency threshold can have an adverse effect by increasing the probability that consumers will be annoyed. Investigating the dynamics of annoyance, we reveal that consumers who reside in different stages of the funnel path exhibit considerably different tolerance for annoyance stimulation.