Tag Archives: Academic Article

Online Display Advertising: Targeting and Obtrusiveness


We all have been in situations where you are browsing the internet and the advertising is targeted on the content on the website and they are shown to you. Hereby, advertising is targeted. And what is maybe even more intrusive, that the advertising pops up. It definitely gets your attention. However, are you more willing to click on the advertising and buy the product? This is what Goldfarb & Tucker (2011) researched. They study the effect of targeted display advertising and obtrusiveness on sales, and what the effect is when these two are combined.

This question is interesting. Because even with all these new techniques, display advertising success drops. People avoid online display advertising because they infer them in their browsing goals (Drèze & Hussherr 2003). Do obtrusive advertising works exactly in the opposite way and affects the effectiveness of advertising negatively?

To find out, this study uses data from a large randomized field experiment on 2,892 web advertising campaigns. For every campaign on average 852 surveys were distributed. Where the half of them were to consumers who have seen the advertising and the other half were on the website without the advertisement on it.

The main results of this study are that targeting the advertising improves the effectiveness of online display advertising and obtrusiveness does also. However, when these two techniques are combined the effectiveness decreases. This is because privacy concerns temper the appreciation of formativeness in targeted advertising. So, for advertising in categories where privacy matters more, the effect is tempered more than in categories where privacy matters less.

The strength of this paper is the fact that it, in contrast to earlier research, propose that obtrusive advertising is not very effective in the contextually targeted situations. Earlier research study the effect of the obtrusiveness on advertising recall, which is of course positive. By adding the privacy concerns and the feelings of manipulation to the fact that advertising can be perceived as useful makes advertising perceived as intrusive, and therefore result the effectiveness negatively.

This paper shows a reason for the unexpected success of search advertising, where the advertising is highly targeted on the context (the advertising is based on search keywords) but is absolutely not obtrusive or attractive. For managers, this means that in choosing the right way to advertise they must not only consider whether to target their audience with contextually targeted advertising, but also consider the negative influence if these advertisements are obtrusive. Economically, 5.3 percent of advertising spending could be cut, without affecting the effectiveness of advertising. This, solely because the wrong combination of advertising content and format is used.

In short terms, either choose to reach your audience with targeted advertising, or with obtrusive advertising. But don’t combine the two.

Drèze, X. & Hussherr, F.X., 2003. Internet advertising: Is anybody watching? Journal of Interactive Marketing, 17(4), pp.8–23.

Goldfarb, A. & Tucker, C., 2011. Online Display Advertising: Targeting and Obtrusiveness. Marketing Science, 30(3), pp.389–404.

“The Filter Bubble: exploring the effects of using recommender systems on content diversity” (Nguyen et al. 2014)


The article chosen addresses the so-called bubble effect identified by Pariser (2012). This bubble effect suggests that by using recommender systems (RS), users are exposed to only a few products that they will like and miss out of many others.  The paper wants to investigate this through understanding the content diversity at an individual level provided by collaborative filtering. It suggests to be the first study observing the effects of this phenomenon on an individual level.

From the study conducted by Lee and Hosanagar (2015) we have understood that there are many opposing views existing in the literature on content diversity on an individual level. Therefore, as the current article claims to be the first one studying this phenomenon on an individual level it is interesting to see how the study has been conducted and what their conclusions are compared to the article of 2015.

The paper addresses very well the debate in regard of the bubble effect: whether recommender systems may be harmful to users. First the behavioral aspects of people who are exposed to similar content and what the effect is on their individual behavior is addressed. As they want to measure the effects on an individual level it is important to recognize what has been found in regard of individual behaviors on content exposure.

For this study, they use the long-term users of MovieLens as they need longitudinal data to draw conclusions on the user’s behavior over time. Two research questions are addressed; 1. Do recommender systems expose users to narrower content over time? 2. How does the experience of users using recommender systems differ of those who do not rely on recommender systems?

The article uses the “tag genome” developed by Vig et al. (2012) to analyze the diversity of the movies that are recommended and consumed (rated). This appears to be a strong measure as it identifies the content of the movie and identifies the similarities content-wise. Multiple articles have used the movie genres (Lee and Hosanagar, 2015) or the ratings given (Adamopoulos and Tuzhilin, 2014) to identify similarities which seems to be less generalizable as the content of the movies still can vary greatly when using these metrics.

The article describes clearly how the findings should be interpreted and addresses multiple questions that have risen based on the findings. This leads to a well-rounded study where the effect of item-item collaborative filtering is exposed. First, the article addresses whether recommender systems expose users to a narrower content over time through comparing the content diversity at the beginning with the content diversity at the end of the user’s rating history. This comparison can show the development of content consumption of the user over time. It has been found that the content diversity of both user groups (using RS or not to rate movies) becomes quite similar over time. Furthermore, it identifies whether using RS reduces the total content-diversity consumed of that user. The conclusion is that users using RS over time consume more diverse content then users ignoring RS. Finally, the experience of the two user groups are evaluated and it is observed that users using RS seem to consume more enjoyable movies based on their ratings given.

As the limitations of the article suggest itself it would be interesting to study the phenomenon in a more experimental setting where the behavior of users can be observed in more detail. This would help in understanding the reasons of the decisions made by the users based on the recommendations. The multiple studies conducted in the field of RS mostly focus on collaborative filtering as this RS is the most commonly used (Lee and Hosanagar, 2015) but research should also focus on other recommender systems to make sure that those used benefit the user the most.

 

References

Adamopoulos, P. and Tuzhilin, A., 2014, October. On over-specialization and concentration bias of recommendations: Probabilistic neighborhood selection in collaborative filtering systems. In Proceedings of the 8th ACM Conference on Recommender systems (pp. 153-160). ACM. http://dl.acm.org/citation.cfm?id=2645752

Lee, D. and Hosanagar, K., 2015. ‘People Who Liked This Study Also Liked’: An Empirical Investigation of the Impact of Recommender Systems on Sales Diversity.https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2603361

Nguyen, T.T., Hui, P.M., Harper, F.M., Terveen, L. and Konstan, J.A., 2014, April. Exploring the filter bubble: the effect of using recommender systems on content diversity. In Proceedings of the 23rd international conference on World wide web (pp. 677-686). ACM. http://dl.acm.org/citation.cfm?id=2568012

Personalized Task Recommendation in Crowdsourcing Information Systems


Crowdsourcing information systems aims at delivering informational products and services by harnessing a large group of online users. Individuals motivated intrinsically (e.g., enjoyment) or extrinsically (e.g., reward) can contribute to the system through picking among a variety of open tasks on crowdsourcing platforms. As the huge amount of tasks posted ever day, matching individual with an appropriate task that meet up individual’s personal preference and skill is crucial to the success.  However, in reality, the ever-increasing amount of opportunities engaging individuals on crowdsourcing platforms lead to an information overload situation. Therefore, how to assist contributors in finding a suitable task in line with self-identification principle has attracted scholars and practitioners’ attentions. Geiger and Schader (2014) review and analyze the current state of personalized task recommendation in crowdsourcing context which shed a light on designing the relevant mechanisms on crowdsourcing platforms.

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