What Happens Online Stays Online? Segment-Specific Online and Offline Effects of Banner Advertisements.

LARA LOBSCHAT, ERNST C. OSINGA, WERNER J. REINARTZ

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Many firms are allocating increasing parts of their advertising budgets to banner advertising. Yet, for firms that predominantly sell offline, existing research provides little guidance on online advertising decisions. In this study, the authors analyze the impact of banner advertising on consumers’ online and offline behavior across multiple distinct campaigns for one focal firm, which predominantly sells through the offline channel. Results suggest that banner and TV advertising increase website visit incidence for consumers who have not visited the focal firm’s website in the previous four weeks (nonrecent online consumers). For these consumers, banner and TV advertisements indirectly increase offline sales through website visits. For consumers who have visited the firm’s website in the previous four weeks (recent online consumers), the authors find evidence for a cross-campaign, brand-building effect of banner advertising, and TV ads also directly affect offline purchases. Overall, the findings indicate that for firms that predominantly (or even exclusively) sell offline, banner advertising is most suitable to generate awareness for a firm’s new products among nonrecent online consumers, and to build their brand(s) among recent online consumers.
Original languageEnglish
Pages (from-to)901-913
Number of pages13
JournalJournal of Marketing Research
Volume54
Issue number6
DOIs
Publication statusPublished - 1 Dec 2017
Externally publishedYes

Keywords

  • Internet banner advertising
  • Consumer behavior
  • Television advertising
  • Advertising spending
  • Corporate websites
  • Product advertising
  • Brand name products
  • Multi-channel integration
  • banner advertising
  • Bayesian multivariate probit
  • consumer heterogeneity
  • cross-campaign effects
  • cross-channel effects

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