On-line Advertising Over 500 on-line marketing messages a day by 2005 Challenge for advertiser to connect with on- line consumers Banner and sponsored advertisements

Banner Advertisements Controversial Not producing predicted yields –e.g., Kennerdale (2001) Significant decrease in banner advertising revenue in 2000 –Bayan (2001)

Banners Reduced click-through rates on banners Massive number of banner ads Not creative Still, ~40% of on-line ads are banners Mere exposure

Sponsored Content Message embedded in web site and related to site content Popular with informational sites Company provide content/material to a site –Usually, a site related to the company’s product

Sponsored Site benefits from “expert endorser” Company’s expertise, trust, and credibility reinforced (Logan 2000) Increase brand awareness Enhance corporate or brand image

Speed & Thompson (2000) Classical conditioning framework Consumers’ attitudes about sports event –Personal liking of event –Perceived status of event –Nature of the “US” Perceptions of sponsor-event fit Measured attitudes toward sponsor –This is the “CR”

Undergrad and postgrad students Questionnaire on opinions of sporting events and sponsors Positive response stronger when –Good sponsor-event match-up –Sponsor seen as sincere –Consumer has positive attitudes toward event

Becker-Olsen (2003) Compared banner and sponsored content Fictitious informational web site Three sponsors Three product categories Examined attitudinal effects and belief measures to advertisers and site Purchase intentions measured

Theory Sponsored ads –Provide information (learning) –Cognitive processing Banners –Less effort to process –Not associated with positive affect from increased learning

Study Is sponsored content better than banner at increasing positive affect and purchase intent? Are sponsored and banner ads processed differently? Subjects read printout of CollegeLife101.com –Hotlink buttons (banners) down left side for services, centre article written by sponsor Asked questions

Findings Website receives highest attitude benefit when no advertising at all Sponsored ad gives favourable attitude to brand Sponsor and banner ads processed differently However, subjects disliked being “tricked” into reading sponsored advertisements –Banner ads were recognized as ads; banners could be easily ignored –Hit-fit banners can improve attitude to brand

Diao & Sundar (2003) Subjects shown 4 websites Banners and pop-up windows Animated or non-animated Orienting responses (OR) measured (ECG) –Sign tracking Recall and recognition memory tests for ads

Findings Pop-up ads elicit OR Banners, even animated ones, show low OR Overall, animation not that important in producing OR –Message content more important Ad recognition lower, but ad recall higher, for pop-ups compared to banners