Do Interruptions Pay Off? - Effects of Interruptive Ads on Consumers’ Willingness to Pay

Abstract:     
We present the results of a study designed to measure the impact of interruptive advertising on consumers’ willingness to pay for products bearing the advertiser's brand. Subjects participating in a controlled experiment were exposed to ads that diverted their attention from a computer game they were testing. We found that ads significantly lowered subjects’ willingness to pay for a good associated with the advertised brand. We did not find conclusive evidence that providing some level of user control over the appearance of ads mitigated the negative impact of ad interruption. Our results contribute to the research on the economic impact of advertising, and introduce a method of measuring actual (as opposed to self-reported) willingness to pay in experimental marketing research.

Number of Pages in PDF File: 40

Keywords: advertising, attention, privacy, willingness to pay, electronic commerce

working papers series