Paper Number
ICIS2025-1659
Paper Type
Short
Abstract
Recommender systems and advertising are widely recognized as powerful persuasion techniques that significantly influence consumer behavior. However, little is known about how these tactics interact. This study explores the relationship between advertising and the effectiveness of recommendations, addressing an important gap in the literature. We examine whether advertising expenditures affect the ability of system-generated recommendations to increase demand. Our findings reveal that while both advertising and recommendations independently boost demand, their combination can sometimes reduce the effectiveness of recommendations. Notably, advertising in different channels, earned media, and marketing promotions that enhance consumers’ transaction utility may avoid this negative effect, preserving the positive influence of recommendations. By advancing understanding of how advertising and recommender systems interact, this study offers important implications for platforms and marketers, while opening new avenues for future research on demand generation strategies.
Recommended Citation
Adamopoulos, Panagiotis and Todri, Vilma, "The Interplay of the Demand Effects of Recommendations and Advertising" (2025). ICIS 2025 Proceedings. 15.
https://aisel.aisnet.org/icis2025/hti/hti/15
The Interplay of the Demand Effects of Recommendations and Advertising
Recommender systems and advertising are widely recognized as powerful persuasion techniques that significantly influence consumer behavior. However, little is known about how these tactics interact. This study explores the relationship between advertising and the effectiveness of recommendations, addressing an important gap in the literature. We examine whether advertising expenditures affect the ability of system-generated recommendations to increase demand. Our findings reveal that while both advertising and recommendations independently boost demand, their combination can sometimes reduce the effectiveness of recommendations. Notably, advertising in different channels, earned media, and marketing promotions that enhance consumers’ transaction utility may avoid this negative effect, preserving the positive influence of recommendations. By advancing understanding of how advertising and recommender systems interact, this study offers important implications for platforms and marketers, while opening new avenues for future research on demand generation strategies.
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