Standardization and the E ffectiveness of Online Advertising

34 Pages Posted: 23 Jan 2011 Last revised: 22 Jun 2014

Avi Goldfarb

University of Toronto - Rotman School of Management

Catherine E. Tucker

Massachusetts Institute of Technology (MIT) - Management Science (MS)

Date Written: May 1, 2014

Abstract

The technological transformation and automation of digital content delivery has revolutionized the media industry. Increased reliance on automation has also led to requirements for standardization of content-delivery formats. This paper examines how the memorability of banner advertising changed with the introduction of new standards regularizing its format. Using data from randomized field tests, we find evidence that for most ads, ad e ffectiveness falls as the use of standard formats rises. The decline is smaller when a standardized ad appears to be more original (such as ads created by an ad agency). Therefore, a likely explanation is that increased use of a standard format makes it harder for basic ads to distinguish themselves from their competition because the ad format commands less attention.

Keywords: Advertising, Media Platforms, Standards, Standards-Setting, Internet

JEL Classification: L86, M37

Suggested Citation

Goldfarb, Avi and Tucker, Catherine E., Standardization and the E ffectiveness of Online Advertising (May 1, 2014). Available at SSRN: https://ssrn.com/abstract=1745645 or http://dx.doi.org/10.2139/ssrn.1745645

Avi Goldfarb (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6
Canada
416-946-8604 (Phone)
416-978-5433 (Fax)

Catherine E. Tucker

Massachusetts Institute of Technology (MIT) - Management Science (MS) ( email )

100 Main St
E62-536
Cambridge, MA 02142
United States

HOME PAGE: http://cetucker.scripts.mit.edu

Paper statistics

Downloads
473
Rank
47,788
Abstract Views
2,544