Paper Type
Complete
Paper Number
PACIS2026-1837
Description
As AI chatbots evolve and move beyond subscription models, understanding ad integration within conversational interfaces is critical. Through two online experiments, we investigate the impact of ad presence, format (text vs. image), and placement (top, bottom, sidebar, native) on user experience and advertising effectiveness. Results indicate that the introduction of ads does not diminish user satisfaction or trust. However, ad format and placement create distinct cognitive outcomes. For text-based ads, top placements achieve the highest efficiency by capturing initial attention. For image-based ads, the sequential dialogue stream renders sidebar placements largely ineffective for brand recognition. Meanwhile, native ads successfully generate implicit brand memory despite low explicit recognition. These findings provide strategic guidance: platforms should favor vertical integration over legacy search layouts, advertisers must align formats with optimal placements, and policymakers urgently need to establish stricter disclosure standards for native ads to prevent consumer deception.
Recommended Citation
Zhuang, Hongwei; Chen, Hailiang; and Wan, Echo Wen, "Monetizing the Conversation: An Empirical Investigation of User Experience and Ad Effectiveness in AI Chatbots" (2026). PACIS 2026 Proceedings. 11.
https://aisel.aisnet.org/pacis2026/it_strategy/it_strategy/11
Monetizing the Conversation: An Empirical Investigation of User Experience and Ad Effectiveness in AI Chatbots
As AI chatbots evolve and move beyond subscription models, understanding ad integration within conversational interfaces is critical. Through two online experiments, we investigate the impact of ad presence, format (text vs. image), and placement (top, bottom, sidebar, native) on user experience and advertising effectiveness. Results indicate that the introduction of ads does not diminish user satisfaction or trust. However, ad format and placement create distinct cognitive outcomes. For text-based ads, top placements achieve the highest efficiency by capturing initial attention. For image-based ads, the sequential dialogue stream renders sidebar placements largely ineffective for brand recognition. Meanwhile, native ads successfully generate implicit brand memory despite low explicit recognition. These findings provide strategic guidance: platforms should favor vertical integration over legacy search layouts, advertisers must align formats with optimal placements, and policymakers urgently need to establish stricter disclosure standards for native ads to prevent consumer deception.
Comments
11-Strategy