In-app advertising: a two-step qualitative comparative analysis to explain clicking behavior

Individuals only click on a very small fraction of the in-app advertisements (ads) they are exposed to. Despite this fact, organizations spend generously placing in-app ads without theoretical knowledge of how the structure and the semantics of in-app ads influence individuals’ clicking behavior. This study aims to identify how the processing of structural and semantic factors leads to clicking behavior.

Based on the limited capacity theory, this paper proposes that the sequential processing of structural and semantic factors leads to clicking behavior. To mirror the sequential process, this paper applies a process-oriented configurational approach and performs a two-step qualitative comparative analysis (QCA) using 262 incidents of exposure to in-app ads.

The results support the proposed sequential processing and show that neither structural nor semantic factors alone lead to clicking behavior. This paper reveals four different paths of sequential processing of in-app ads that lead to clicking behavior. The results show that individuals click on non-animated in-app ads even though these are perceived as irritating or privacy-concerning. When the in-app ads are animated, individuals do only click on them when these are not irritating, privacy-concerning and personalized.

Organizations can use these findings to improve their in-app ads and generate more clicks. This study recommends that organizations place in-app ads in a prominent location, design them similar to the design of the app and use bright colors. The advertising message needs to have new and relevant information in a credible and entertaining way. Depending on the degree of personalization, organizations should use different sizes of the in-app ad and only use animation if it is unlikely that the in-app ad caused irritation or privacy concerns.

Organizations can use these findings to improve their in-app ads and generate more clicks. This paper recommends that organizations place in-app ads in a prominent location, design them similar to the design of the app and with bright colors. The advertising message needs to have new and relevant information in a credible and entertaining way. Depending on the degree of personalization, organizations should use different sizes of the in-app ad and only use animation if it is unlikely that the in-app ad caused irritation or privacy concerns.

From the in-app ad perspective, this study is the first to theoretically develop and empirically show the sequential processing of structural and semantic factors of in-app ads. From the methodological perspective, this study applies an advanced configurational two-step QCA approach, which is capable of analyzing sequential processes and is new to marketing research.