The Risk of Programmatic Advertising: Effects of Website Quality on Advertising Effectiveness

International Journal of Research in Marketing

39 Pages Posted: 19 Feb 2020 Last revised: 22 Oct 2020

See all articles by Edlira Shehu

Edlira Shehu

Copenhagen Business School

Nadia Abou Nabout

WU Vienna

Michel Clement

University of Hamburg

Date Written: October 21, 2020

Abstract

Programmatic advertising is prevalent in online advertising. However, it offers managers limited control over the type of website where the ad appears, resulting in brand safety issues. Aware of the risk that ads may potentially display on websites of poor quality (nonpremium websites), managers have developed strategies to reduce this risk. Due to the lack of empirical insights, these strategies are based on “gut feeling” and depend on campaign type (branding versus performance) and brand type (premium versus nonpremium). Our research addresses this void and analyzes website quality effects for premium and nonpremium brands in branding and performance campaigns. Our results show that effects, indeed, vary depending on campaign and brand type, but not in ways that managers might expect. When a branding ad appears on a nonpremium website, attitudes towards the ad and the brand deteriorate, but only for premium brands. In contrast, website quality does not affect awareness for either type of brand. When a performance ad appears on a nonpremium website, it generates fewer clicks; this effect is stronger for premium brands. Overall, these findings enrich our understanding of the consequences of programmatic advertising and highlight the crucial role of website quality dependent on campaign goal and brand type.

Keywords: Website Quality, Online Advertising Effectiveness, Programmatic Advertising

JEL Classification: M37

Suggested Citation

Shehu, Edlira and Abou Nabout, Nadia and Clement, Michel, The Risk of Programmatic Advertising: Effects of Website Quality on Advertising Effectiveness (October 21, 2020). International Journal of Research in Marketing, Available at SSRN: https://ssrn.com/abstract=3524447 or http://dx.doi.org/10.2139/ssrn.3524447

Edlira Shehu

Copenhagen Business School ( email )

Denmark

Nadia Abou Nabout (Contact Author)

WU Vienna ( email )

Welthandelsplatz 1
Vienna, Vienna 1020
Austria
+43 1 31 336 4900 (Phone)
+43 1 31 336 90 4900 (Fax)

HOME PAGE: http://www.wu.ac.at/imsm/team/abounabout/

Michel Clement

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

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