EconPapers    
Economics at your fingertips  
 

Targeting online display ads: Choosing their frequency and spacing

Steffen Försch and Evert de Haan

International Journal of Research in Marketing, 2018, vol. 35, issue 4, 661-672

Abstract: With real-time bidding, advertisers can decide how often (ad frequency) and in what time interval (ad recency) to show an ad to a specific user. Ads shown often and in quick succession might increase brand and ad recognition on the one hand but might annoy users on the other hand. These recognition and annoyance effects, in turn, can have opposing consequences for click-through rates (CTRs). Guided by theory and previous studies, we examine how the frequency (high vs. low) and the recency (small vs. large time intervals) of ad impressions relates to a banner's CTR and whether this is moderated by the campaign type (diverse or not), the brand's advertising expenditure (high vs. low), and the type of industry (selling durable vs. non-durable goods). To do so, we use a large data set containing information on 5.8 bn ad impressions and 1.8 m clicks delivered for 158 different advertisers from 25 industries. We show that higher ad frequency and higher ad recency relate to a lower CTRs, especially when having a less diverse campaign, for brands which are spending more on advertising, and, to some extent, for firms selling durables.

Keywords: Banner advertising; Click-through rate; Online advertising; Online targeting; Real-time bidding (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167811618300478
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:35:y:2018:i:4:p:661-672

DOI: 10.1016/j.ijresmar.2018.09.002

Access Statistics for this article

International Journal of Research in Marketing is currently edited by Roland Rust

More articles in International Journal of Research in Marketing from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-05-02
Handle: RePEc:eee:ijrema:v:35:y:2018:i:4:p:661-672