Standardization and the Effectiveness of Online Advertising

The technological transformation and automation of digital content delivery has revolutionized the media industry. Increased reliance on automation has also led to requirements for standardization of content-delivery formats. This paper examines how the memorability of banner advertising changed wit...

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Main Authors: Goldfarb, Avi, Tucker, Catherine Elizabeth
Other Authors: Sloan School of Management
Format: Article
Language:en_US
Published: Institute for Operations Research and the Management Sciences (INFORMS) 2017
Online Access:http://hdl.handle.net/1721.1/109266
https://orcid.org/0000-0002-1847-4832
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author Goldfarb, Avi
Tucker, Catherine Elizabeth
author2 Sloan School of Management
author_facet Sloan School of Management
Goldfarb, Avi
Tucker, Catherine Elizabeth
author_sort Goldfarb, Avi
collection MIT
description The technological transformation and automation of digital content delivery has revolutionized the media industry. Increased reliance on automation has also led to requirements for standardization of content-delivery formats. This paper examines how the memorability of banner advertising changed with the introduction of new standards regularizing its format. Using data from randomized field tests, we find evidence that for most ads, ad effectiveness falls as the use of standard formats rises. The decline is smaller when a standardized ad appears to be more original (such as ads created by an ad agency). Therefore, a likely explanation is that increased use of a standard format makes it harder for basic ads to distinguish themselves from their competition because the ad format commands less attention.
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spelling mit-1721.1/1092662022-09-30T11:50:16Z Standardization and the Effectiveness of Online Advertising Goldfarb, Avi Tucker, Catherine Elizabeth Sloan School of Management Tucker, Catherine Elizabeth The technological transformation and automation of digital content delivery has revolutionized the media industry. Increased reliance on automation has also led to requirements for standardization of content-delivery formats. This paper examines how the memorability of banner advertising changed with the introduction of new standards regularizing its format. Using data from randomized field tests, we find evidence that for most ads, ad effectiveness falls as the use of standard formats rises. The decline is smaller when a standardized ad appears to be more original (such as ads created by an ad agency). Therefore, a likely explanation is that increased use of a standard format makes it harder for basic ads to distinguish themselves from their competition because the ad format commands less attention. 2017-05-22T19:07:02Z 2017-05-22T19:07:02Z 2014-12 2011-12 Article http://purl.org/eprint/type/JournalArticle 0025-1909 1526-5501 http://hdl.handle.net/1721.1/109266 Goldfarb, Avi and Tucker, Catherine E. “Standardization and the Effectiveness of Online Advertising.” Management Science 61, no. 11 (November 2015): 2707–2719 © 2015 Institute for Operations Research and the Management Sciences (INFORMS) https://orcid.org/0000-0002-1847-4832 en_US http://dx.doi.org/10.1287/mnsc.2014.2016 Management Science Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Institute for Operations Research and the Management Sciences (INFORMS) SSRN
spellingShingle Goldfarb, Avi
Tucker, Catherine Elizabeth
Standardization and the Effectiveness of Online Advertising
title Standardization and the Effectiveness of Online Advertising
title_full Standardization and the Effectiveness of Online Advertising
title_fullStr Standardization and the Effectiveness of Online Advertising
title_full_unstemmed Standardization and the Effectiveness of Online Advertising
title_short Standardization and the Effectiveness of Online Advertising
title_sort standardization and the effectiveness of online advertising
url http://hdl.handle.net/1721.1/109266
https://orcid.org/0000-0002-1847-4832
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