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Improving the Effectiveness of Time-Based Display Advertising

Authors:

Daniel G. Goldstein,

R. Preston McAfee,

Siddharth SuriAuthors Info & Claims

ACM Transactions on Economics and Computation (TEAC), Volume 3, Issue 2

Article No.: 7, Pages 1 - 20

https://doi.org/10.1145/2716323

Published: 20 April 2015 Publication History

Abstract

Display advertisements are typically sold by the impression, where one impression is simply one download of an ad. Previous work has shown that the longer an ad is in view, the more likely a user is to remember it and that there are diminishing returns to increased exposure time [Goldstein et al. 2011]. Since a pricing scheme that is at least partially based on time is more exact than one based solely on impressions, time-based advertising may become an industry standard. We answer an open question concerning time-based pricing schemes: how should time slots for advertisements be divided? We provide evidence that ads can be scheduled in a way that leads to greater total recollection, which advertisers value, and increased revenue, which publishers value. We document two main findings. First, we show that displaying two shorter ads results in more total recollection than displaying one longer ad of twice the duration. Second, we show that this effect disappears as the duration of these ads increases. We conclude with a theoretical prediction regarding the circumstances under which the display advertising industry would benefit if it moved to a partially or fully time-based standard.

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Cited By

Simonov AValletti TVeiga A(2024)Attention Spillovers from News to Ads: Evidence from an Eye-Tracking ExperimentJournal of Marketing Research10.1177/00222437241256900Online publication date: 2-Aug-2024
https://doi.org/10.1177/00222437241256900
Truong V(2023)Optimizing mobile in-app advertising effectiveness using app publishers-controlled factorsJournal of Marketing Analytics10.1057/s41270-023-00230-wOnline publication date: 22-May-2023
https://doi.org/10.1057/s41270-023-00230-w
Chakraborty SBasu SRay SSharma M(2020)Advertisement Revenue Management: Determining the Optimal Mix of Skippable and Non-Skippable Ads for Online Video Sharing PlatformsEuropean Journal of Operational Research10.1016/j.ejor.2020.10.012Online publication date: Oct-2020
https://doi.org/10.1016/j.ejor.2020.10.012
Show More Cited By

Index Terms

Improving the Effectiveness of Time-Based Display Advertising
1. Applied computing
  1. Law, social and behavioral sciences

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Information & Contributors

Information

Published In

cover image ACM Transactions on Economics and Computation

ACM Transactions on Economics and Computation Volume 3, Issue 2

Special Issue on EC'12, Part 2

April 2015

171 pages

ISSN:2167-8375

EISSN:2167-8383

DOI:10.1145/2764902

Editors:
Vincent Conitzer
Duke University
,
Preston McAfee
Google

Issue’s Table of Contents

Copyright © 2015 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 20 April 2015

Accepted: 01 December 2014

Revised: 01 May 2014

Received: 01 March 2013

Published in TEAC Volume 3, Issue 2

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Cited By

Simonov AValletti TVeiga A(2024)Attention Spillovers from News to Ads: Evidence from an Eye-Tracking ExperimentJournal of Marketing Research10.1177/00222437241256900Online publication date: 2-Aug-2024
https://doi.org/10.1177/00222437241256900
Truong V(2023)Optimizing mobile in-app advertising effectiveness using app publishers-controlled factorsJournal of Marketing Analytics10.1057/s41270-023-00230-wOnline publication date: 22-May-2023
https://doi.org/10.1057/s41270-023-00230-w
Chakraborty SBasu SRay SSharma M(2020)Advertisement Revenue Management: Determining the Optimal Mix of Skippable and Non-Skippable Ads for Online Video Sharing PlatformsEuropean Journal of Operational Research10.1016/j.ejor.2020.10.012Online publication date: Oct-2020
https://doi.org/10.1016/j.ejor.2020.10.012
Xie SMehra ASharma S(undefined)Designing E-Commerce Livestreams: How Quicker Product Promotion Affects Sales?SSRN Electronic Journal10.2139/ssrn.4114942
https://doi.org/10.2139/ssrn.4114942
Valletti TVeiga A(undefined)Attention, recall, and purchase: Experimental evidence on online news and advertisingSSRN Electronic Journal10.2139/ssrn.3836531
https://doi.org/10.2139/ssrn.3836531
Choi HMela CBalseiro SLeary A(undefined)Online Display Advertising Markets: A Literature Review and Future DirectionsSSRN Electronic Journal10.2139/ssrn.3070706
https://doi.org/10.2139/ssrn.3070706
Mehta SDawande MJanakiraman GMookerjee V(undefined)Sustaining a Good Impression: Mechanisms for Selling 'Partitioned' Impressions at Ad-ExchangesSSRN Electronic Journal10.2139/ssrn.3064299
https://doi.org/10.2139/ssrn.3064299

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