De haan 2016 Flashcards
The online purchase funnel
advertising activities 3x
FIC: firm inititated communication
CS CIC: content-seperated customer-inititated communication
CI CIC: content-integrated
Content-integration
advertising message is integrated into the editorial content of the website (e.g. a price comparison site)
Content-separation
: advertising message is NOT integrated into the editorial content of the website (e.g. retargeting prospects while they are visiting an unrelated website).
what is most effective
Content-integrated CIC
Advertising elasticity:
the percentage change in the outcome (typically sales) in response to a 1% change in advertising (typically budget)
1% change in advertising spending leads to x% change in sales
Last-click attribution:
No credit is given to earlier advertisements, the effect of seasonality, or baseline revenues.
Key takeaways de Haan et al. (2016)
3x
Offline advertising forms have low sales elasticities
CIC have greater sales elasticities than FIC
Content-integrated CICs tend to distinguish themselves from other forms of advertising in the later stages of the funnel
Offline advertising forms have low sales elasticities
Presumably because
the retailer mainly uses offline advertising to build and retain brand awareness, perceptions, and goodwill rather than to drive immediate sales online.
CIC have greater sales elasticities than FIC
CIC require some level of interest from the customer because ?
they are based on customers’ own queries and are considered far less intrusive compared to FIC.
Content-integrated CICs tend to distinguish themselves from other forms of advertising in the later stages of the funnel. becayse
Content-integrated CICs tend to distinguish themselves from other forms of advertising in the later stages of the funnel.