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The Effectiveness of Contextual Competitive Targeting in Conjunction with Promotional Incentives
International Journal of Electronic Commerce ( IF 4.2 ) Pub Date : 2018-06-08 , DOI: 10.1080/10864415.2018.1462952
Yiping (Amy) Song , Chee Wei (David) Phang , Shuai Yang , Xueming Luo

Advancements in Internet technologies have enabled firms to engage in contextual competitive targeting (CCT); that is, the targeted online advertising practice of contextually identifying and poaching prospective customers of competitors. On the basis of two field quasi-experiment studies conducted with Google’s AdSense contextual targeting platform, this article shows that compared to generate targeting, CCT poaching is more effective in raising ad click-through rates (CTRs), but not in inducing conversion rates. Furthermore, promotional incentives can boost CCT’s effects on CTRs, but not conversion rates. The article’s follow-up laboratory survey reveals the reasons for the findings. That is, offering a promotional incentive in CCT ads can arouse customers’ curiosity and thus strengthen the effects of CCT on CTRs. Yet this heightened curiosity does not expand CCT’s effects on conversions because of customer loyalty to the competitor being poached. Collectively the findings suggest different strategies for firms contemplating CCT. When the objective is to attract competitors’ customers to increase their chance of future defect, adding promotional incentives may enhance CCT effectiveness. But when conversion is the main concern, managers can save promotional dollars as CCT poaching induces more sales conversions with less of such incentives.

中文翻译:

上下文竞争定位与促销激励相结合的有效性

互联网技术的进步使公司能够参与上下文竞争定位 (CCT);也就是说,根据上下文识别和挖走竞争对手的潜在客户的有针对性的在线广告实践。本文基于使用 Google 的 AdSense 上下文定位平台进行的两项现场准实验研究表明,与生成定位相比,CCT 偷猎在提高广告点击率 (CTR) 方面更有效,但在诱导转化率方面则无效。此外,促销激励措施可以提高 CCT 对 CTR 的影响,但不能提高转化率。文章的后续实验室调查揭示了这些发现的原因。也就是说,在 CCT 广告中提供促销激励可以引起客户的好奇心,从而加强 CCT 对 CTR 的影响。然而,由于客户对被挖走的竞争对手的忠诚度,这种强烈的好奇心并没有扩大 CCT 对转化率的影响。总的来说,这些发现为考虑 CCT 的公司提出了不同的策略。当目标是吸引竞争对手的客户以增加他们未来出现缺陷的机会时,添加促销激励措施可能会提高 CCT 的有效性。但是,当转换是主要关注点时,管理人员可以节省促销费用,因为 CCT 偷猎会以较少的此类激励诱使更多的销售转换。添加促销激励措施可能会提高 CCT 的有效性。但是,当转换是主要关注点时,管理人员可以节省促销费用,因为 CCT 偷猎会以较少的此类激励诱使更多的销售转换。添加促销激励措施可能会提高 CCT 的有效性。但是,当转换是主要关注点时,管理人员可以节省促销费用,因为 CCT 偷猎会以较少的此类激励诱使更多的销售转换。
更新日期:2018-06-08
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