Consumer Response to Social Media and Online Video Advertising

Posted: 15 Sep 2016 Last revised: 21 Dec 2018

See all articles by Gui Liberali

Gui Liberali

Erasmus University Rotterdam (EUR); Erasmus Research Institute of Management (ERIM)

Glen L. Urban

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Catherine E. Tucker

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

Yakov Bart

Northeastern University - D'Amore-McKim School of Business

Date Written: September 30, 2017

Abstract

This paper investigates the effectiveness of social media advertising and online video advertising using three large-scale controlled field experiments in the U.S., China and the Netherlands. The study was implemented using a technological approach that allows researchers to combine controls with real-world validity. The studies are based on an adaptive-experimentation method that allows across-sample and within-sample adaptation. This method facilitates incremental exploration of complex phenomena with cycles of discovery and validation across multiple studies. For the real-world stimuli in the automobile industry, the results show that advertising effectiveness of online videos is consistently stronger than social media and that the relative strength of social media increases the further temporally a consumer is from purchasing. We also find that attention strengthens consumer response to online video and social media advertising, but when both are viewed simultaneously at high levels of attention, they become substitutes.

Keywords: online advertising, field experiments, multichannel marketing, purchase funnel

Suggested Citation

Liberali, Gui and Urban, Glen L. and Tucker, Catherine E. and Bart, Yakov, Consumer Response to Social Media and Online Video Advertising (September 30, 2017). Available at SSRN: https://ssrn.com/abstract=2838258 or http://dx.doi.org/10.2139/ssrn.2838258

Gui Liberali (Contact Author)

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Glen L. Urban

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

E52-473
Cambridge, MA 02142
United States
617-253-6615 (Phone)
617-258-6617 (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

Yakov Bart

Northeastern University - D'Amore-McKim School of Business ( email )

Boston, MA 02115
United States

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