Sang Pil Han
\nAssistant Professor of Information Systems
\nCity University of Hong Kong<\/p>\n
September 16, 2013<\/em><\/p>\n Speakman Hall 200, 10:00am \u2013 11:30am Abstract<\/strong><\/p>\n As companies divert more funds from traditional media towards digital advertising, they are interested in understanding what effects the two channels of advertising\u2014web advertising and mobile advertising\u2014have on consumer choices. Any analysis that measures the effects of web and mobile advertising only separately remains incomplete. In this paper, we design and execute a randomized field experiment to estimate causal effects of cross-channel interdependence between web and mobile advertising. We conduct a consumer-level analysis to attribute cross-channel advertising to click-throughs and conversions at the individual consumer-level. This helps isolate the effect of complementarity or substitution across platforms (web and mobile) from the role of the quantity of advertising, confound with carry-over, and consumer heterogeneity. We find that a mix of online and mobile display ad acts as a better memory cue that triggers consumers to recall product and eventually click\/purchase, as compared to either online ad only or mobile ad only. Hence, in channel planning, optimal decisions in one need to take account of the effects in the other. Further, we present results from policy simulations regarding the optimal level of web and mobile advertising using CPM (cost per thousand impressions) based pricing. These synergistic relationships run counter to the single-click methodology in use and suggest that, for a market in which advertising dollars are allocated based on their influence on purchase behavior, new methods must be developed to insure efficient market functioning.<\/p>\n
\nSeminar Title: Cross Channel Synergies between Web and Mobile Advertising: A Randomized Field Experiment
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