Slide file # 34-17Page 34-17 An Experimental Study of Antecedents and Consequences of Pop-Up Ad...

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lide file # 34-17 Page 34-17 Antecedents and Consequences of Antecedents and Consequences of Pop-Up Ad Pop-Up Ad Intrusiveness: A Study in Intrusiveness: A Study in Progress Progress Dennis Galletta, University of Dennis Galletta, University of Pittsburgh Pittsburgh Scott McCoy, College of William & Mary Scott McCoy, College of William & Mary Andrea Everard, University of Delaware Andrea Everard, University of Delaware Peter Polak, University of Miami Peter Polak, University of Miami Syracuse University Seminar October 24, 2005 (author order to be determined)

Transcript of Slide file # 34-17Page 34-17 An Experimental Study of Antecedents and Consequences of Pop-Up Ad...

Slide file # 34-17 Page 34-17

An Experimental Study of An Experimental Study of Antecedents and Consequences of Antecedents and Consequences of

Pop-Up AdPop-Up AdIntrusiveness: A Study in ProgressIntrusiveness: A Study in Progress

Dennis Galletta, University of PittsburghDennis Galletta, University of PittsburghScott McCoy, College of William & MaryScott McCoy, College of William & MaryAndrea Everard, University of DelawareAndrea Everard, University of DelawarePeter Polak, University of MiamiPeter Polak, University of Miami

Syracuse University Seminar

October 24, 2005

(author order to be determined)

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AgendaAgenda

Problem StatementProblem Statement Research QuestionsResearch Questions Background and Background and

HypothesesHypotheses

Research MethodologyResearch Methodology Data CollectionData Collection Preliminary ResultsPreliminary Results Future Steps and Future Steps and

StudiesStudies

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Online Ads: The Good Online Ads: The Good NewsNews

Internet advertising reached $5.8 B in 1Internet advertising reached $5.8 B in 1stst half half of 2005 of 2005 (PWC, 2005)(PWC, 2005)

– Annualized, that is $3 B over the peak of the dot-com Annualized, that is $3 B over the peak of the dot-com boomboom

– Increased 26% in 2005, coming from 40% increase in Increased 26% in 2005, coming from 40% increase in 20042004

– The picture is bright indeed!The picture is bright indeed! Several formats: e.g.:Several formats: e.g.:

in-line, pop-up, and pop-underin-line, pop-up, and pop-under Early researchEarly research

– Expected ads to be less intrusive (no forced watching Expected ads to be less intrusive (no forced watching as on TV) as on TV) (Rust & Varki, 1996)(Rust & Varki, 1996)

– effective in creating brand awareness and positive effective in creating brand awareness and positive attitudes attitudes (Briggs & Hollis, 1997)(Briggs & Hollis, 1997)

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Studies report that consumers Studies report that consumers despisedespise these intrusive and annoying these intrusive and annoying advertisements advertisements (Reed, 1999; Rettie, 2001; Li et al. 2002; Chan et al. 2004)(Reed, 1999; Rettie, 2001; Li et al. 2002; Chan et al. 2004)

Ads are described as disturbing Ads are described as disturbing (Reed, 1999)(Reed, 1999), , nonsensical, uninformative, nonsensical, uninformative, forgettable, ineffective forgettable, ineffective (Bulik, 2000)(Bulik, 2000)

Terms such as “violated” and Terms such as “violated” and “molested” are used by consumers to “molested” are used by consumers to describe their experiences with describe their experiences with advertisementsadvertisements

– Source: Wegert (2002)Source: Wegert (2002)

Online Ads: The Bad Online Ads: The Bad NewsNews

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Blame Spreads AroundBlame Spreads Around Even though Google has no pop-ups, “spyware” leads people to Even though Google has no pop-ups, “spyware” leads people to

blame them.blame them.

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E-Commerce E-Commerce Background LiteratureBackground Literature Bauer & Greyser (1968) recognized Bauer & Greyser (1968) recognized

intrusiveness as a major cause of advertising intrusiveness as a major cause of advertising annoyance.annoyance.

Rust & Varki (1996) expected online ads to be Rust & Varki (1996) expected online ads to be less intrusive due to greater user controlless intrusive due to greater user control

Li, Edwards, and Lee (2002) found that Li, Edwards, and Lee (2002) found that – online consumers are online consumers are goal-orientedgoal-oriented and perceive ads and perceive ads

to be even more intrusive than those in other media.to be even more intrusive than those in other media.– Consumers develop negative attitudes towards the Consumers develop negative attitudes towards the

ads and/or avoid them altogether.ads and/or avoid them altogether.– These negative attitudes can lead to intentions not These negative attitudes can lead to intentions not

to revisit a site with adsto revisit a site with ads

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Advice From Advice From Psychology IPsychology I

Theories of Attention Theories of Attention (Broadbent 1958; Treisman 1988)(Broadbent 1958; Treisman 1988)

People monitor information through People monitor information through multiple channels, but only attend to onemultiple channels, but only attend to one

People remember less when interruptedPeople remember less when interrupted– Level of processing hypothesis Level of processing hypothesis (Craik, 1982)(Craik, 1982)

– Reduced processing time hypothesis Reduced processing time hypothesis (Craik et al., (Craik et al., 1996)1996)

– Fragmentation hypothesis Fragmentation hypothesis (Naveh-Benjamin 2000)(Naveh-Benjamin 2000)

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Advice from Psychology Advice from Psychology IIII Dual-Process theory of person Dual-Process theory of person

perception perception (e.g., Smith & DeCoster, 2000; Hastie & Kumar, 1979)(e.g., Smith & DeCoster, 2000; Hastie & Kumar, 1979)

A person:A person:– recognizes and internalizes general recognizes and internalizes general

regularities with one process, butregularities with one process, but– Requires a second, more conscious Requires a second, more conscious

and effortful process for unique or and effortful process for unique or novel events (such as novel events (such as non-congruentnon-congruent info)info)

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Bridging to The Bridging to The Affective Domain Affective Domain

Multiple non-automatic tasks require: Multiple non-automatic tasks require: (Kahneman, 1973; Kahneman & Treisman, 1984)(Kahneman, 1973; Kahneman & Treisman, 1984)

– Divided attentionDivided attention– Active filtration of irrelevant stimuliActive filtration of irrelevant stimuli

Different channels interrupt each other Different channels interrupt each other very little very little (Wickens, 1980)(Wickens, 1980)

Repeated same-channel interruptions Repeated same-channel interruptions force much effort, which is undesirable force much effort, which is undesirable to an organism to an organism (Reid & Nygren, 1988)(Reid & Nygren, 1988)

Greater demands lead to negative Greater demands lead to negative affect affect (Eggemeier et al., 1991)(Eggemeier et al., 1991)

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Previous StudyPrevious Study

We had a large number of variablesWe had a large number of variables Too many hypotheses, too complexToo many hypotheses, too complex Findings were hard to internalize, Findings were hard to internalize,

hard to organizehard to organize We were rejected from some of the We were rejected from some of the

finest journalsfinest journals For For CACM, CACM, (forthcoming) we (forthcoming) we

simplified to three categories of simplified to three categories of questionsquestions

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Previous Study-Previous Study-QuestionsQuestions1.1. How intrusive are online ads? Will the How intrusive are online ads? Will the

ads lead users to not return to the site ads lead users to not return to the site hosting the ads?hosting the ads?

2.2. Are some forms of online ads more Are some forms of online ads more intrusive than others? Will it make a intrusive than others? Will it make a difference if the ads are not related to difference if the ads are not related to the subject matter of the site? the subject matter of the site?

3.3. Will online ads interfere with users’ Will online ads interfere with users’ ability to remember site content? Which ability to remember site content? Which types will provide most interference?types will provide most interference?

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Research MethodologyResearch Methodology

Laboratory Experiment conducted with Laboratory Experiment conducted with undergraduatesundergraduates

Mexico (n=208) and US (n=209)Mexico (n=208) and US (n=209) 210 Females, 207 Males210 Females, 207 Males Fictitious website created and Fictitious website created and

accessed via server in USaccessed via server in US Subjects randomly assigned to Subjects randomly assigned to

treatment groupstreatment groups Subjects completed 9 search tasksSubjects completed 9 search tasks Ads were displayed during search tasksAds were displayed during search tasks

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MethodologyMethodology Dependent VariablesDependent Variables

– Behavioral IntentionsBehavioral Intentions– Retention of Site ContentRetention of Site Content– Retention of Ad ContentRetention of Ad Content– Perceived Intrusiveness of AdPerceived Intrusiveness of Ad

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DesignDesign

FactorsFactors– 4 ad categories (controlling for size, 4 ad categories (controlling for size,

location)location) pop-uppop-up Pop-under (exploratory treatment)Pop-under (exploratory treatment) In-lineIn-line NoneNone

– Congruent or notCongruent or not– Animated or notAnimated or not

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1. Are Ads Intrusive?1. Are Ads Intrusive?

Ads take up space on our screens Ads take up space on our screens (Reed, 1999; (Reed, 1999; Rettie, 2001; Li et al. 2002; Chan et al. 2004; Bulik, 2000; Wegert, 2002)Rettie, 2001; Li et al. 2002; Chan et al. 2004; Bulik, 2000; Wegert, 2002)

Goal orientation Goal orientation (Li et al., 2002; Rapoza, 2004)(Li et al., 2002; Rapoza, 2004) Additional effort from competing stimuli Additional effort from competing stimuli

require more effort require more effort (Kahneman & Treisman 1984, Wickens 1980)(Kahneman & Treisman 1984, Wickens 1980)

Our results:Our results:– Measures of intrusiveness seemed to be in Measures of intrusiveness seemed to be in

the middle of Likert-type scalesthe middle of Likert-type scales– But without ads, subjects were 11% more But without ads, subjects were 11% more

likely to return or recommend (p<.01)likely to return or recommend (p<.01)– For a site like Amazon, that could amount to For a site like Amazon, that could amount to

5 million visitors5 million visitors

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2. Types – Styles2. Types – Styles

In-line – a graphical element as part of In-line – a graphical element as part of the site (e.g., banner)the site (e.g., banner)

Pop-over – a separate window on top of Pop-over – a separate window on top of the sitethe site

Pop-under – a separate window covered Pop-under – a separate window covered by the site (but it is revealed later)by the site (but it is revealed later)

In the literature, some effects were In the literature, some effects were found – in-lines were better received found – in-lines were better received than pop-ups than pop-ups (Denes, 2001)(Denes, 2001)

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2. Results – Styles2. Results – Styles

21.1

26.1

28.0

15

17

19

21

23

25

27

29

In-Line Pop-Up Pop-Under

Intrusiveness of Various Forms of Web Advertisements

Pop-ups were 24% more intrusive than in-line ads (p<.001);Pop-unders were 33% more intrusive (p<.001)

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2. Results – Styles2. Results – Styles

13.3

12.712.9

14.5

11.5

12

12.5

13

13.5

14

14.5

15

In-Line Pop-Up Pop-Under No Ad

Intentions to Revisit the Main Site

Mode NS; Existence is important (p<.01)

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2. Types – Animation2. Types – Animation

Animation is used in some ads to Animation is used in some ads to attract attentionattract attention

Attracting attention is similar to Attracting attention is similar to DIStracting a person from the site DIStracting a person from the site ((Hong et al., 2004; Zhang, 2000)Hong et al., 2004; Zhang, 2000)

However, that distraction does However, that distraction does not pay off in remembering the not pay off in remembering the ad ad ((Hong et al., 2004)Hong et al., 2004)

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Static vs AnimatedStatic vs Animated

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2. Types – Congruence2. Types – Congruence

Some ads are Some ads are congruentcongruent with site with site content (e.g., film ad on camera content (e.g., film ad on camera site)site)

Many are not (e.g., life insurance Many are not (e.g., life insurance ad on camera site)ad on camera site)

The former is likely to be of The former is likely to be of interest; The latter is likely to be interest; The latter is likely to be intrusive intrusive (Chan, Dodd, and Stevens, 2004)(Chan, Dodd, and Stevens, 2004)

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Congruent vs Non-Congruent vs Non-congruentcongruent

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2. Results – Animation 2. Results – Animation & Congruence& Congruence Animation did not affect Animation did not affect

intrusiveness or irritationintrusiveness or irritation Congruence did not affect Congruence did not affect

intrusiveness or irritationintrusiveness or irritation

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3. User’s Memory of the 3. User’s Memory of the SiteSite Cognitive effort is increased by the ads Cognitive effort is increased by the ads

(Chan, et al., 2004 Kahneman & Treisman 1984, Wickens 1980)(Chan, et al., 2004 Kahneman & Treisman 1984, Wickens 1980)

Memory (retention) of the site was Memory (retention) of the site was predicted to be adversely impacted bypredicted to be adversely impacted by– Existence of adsExistence of ads– Congruence (perhaps counter-intuitive)Congruence (perhaps counter-intuitive)– AnimationAnimation

Also examined: type of adAlso examined: type of ad

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3. Results3. Results

Retention was not affected by the ads Retention was not affected by the ads (perhaps users ignore them as stated (perhaps users ignore them as stated by Chan et al., 2004)by Chan et al., 2004)

Retention was 3.5% higher for non-Retention was 3.5% higher for non-congruent ads (p<.005)congruent ads (p<.005)

Retention was not affected by Retention was not affected by animationanimation

Retention was 3.4% higher for in-line Retention was 3.4% higher for in-line ads than pop-up ads (p<.022)ads than pop-up ads (p<.022)

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Where Did That Study Where Did That Study Get Us?Get Us? Not very farNot very far A new study was needed A new study was needed

– To understand ads more thoroughlyTo understand ads more thoroughly– To understand new factorsTo understand new factors– To explore underlying generic issuesTo explore underlying generic issues

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New Study: New Study: Perspectives Covered Perspectives Covered

and Goalsand Goals Site hostSite host

– Either a vendor or an information siteEither a vendor or an information site– Goal: wants users to returnGoal: wants users to return– Shopping site has further goal of making Shopping site has further goal of making

sales, but key to profitability is repeat sales, but key to profitability is repeat sales—must return!sales—must return!

AdvertiserAdvertiser– Wants “top of mind” (and clicks & sales)Wants “top of mind” (and clicks & sales)

User wants big payoff with low effortUser wants big payoff with low effort– Anything else is intrusiveAnything else is intrusive– Make too much trouble? User won’t returnMake too much trouble? User won’t return

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Model – First CutModel – First Cut

Attitude toward

Site

Intrusiveness

Behavioral Intentions

Irritation

Recall of the Ads

Site’s Point of View

Advertiser’s Point of View

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ApproachApproach

To support the model, we wanted to create To support the model, we wanted to create ads with a variety of characteristicsads with a variety of characteristics

In the In the CACMCACM study, we varied existence, study, we varied existence, animation, and congruence animation, and congruence

This time we varied positioning, size, extent This time we varied positioning, size, extent to which the ad obscured site content, and, to which the ad obscured site content, and, if obscuring content, method by which the if obscuring content, method by which the site’s content could be seensite’s content could be seen

We wanted to control nearly everythingWe wanted to control nearly everything

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MethodologyMethodology

Similar to previous studySimilar to previous study Created new ad typesCreated new ad types

– Pop-up ad that obscured content, Pop-up ad that obscured content, needing to be closedneeding to be closed

– Equivalent-sized pop-up ad that did notEquivalent-sized pop-up ad that did not– Equivalent-sized in-line ad that did notEquivalent-sized in-line ad that did not– Equivalent-sized in-line ad that did, but Equivalent-sized in-line ad that did, but

disappeared or twirled awaydisappeared or twirled away

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Our Data SetOur Data Set

263 undergraduate business 263 undergraduate business students at 3 universities in the students at 3 universities in the U.S.U.S.

43% were females, 57% males43% were females, 57% males

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PopupPopup

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In-lineIn-line

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Pop-up ObscuringPop-up Obscuring

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Large Window Pop-upLarge Window Pop-up

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Large Window in-LineLarge Window in-Line

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Our ObservationsOur Observations

Two issues seemed to come out:Two issues seemed to come out:– Whether the window Whether the window obscuredobscured site site

contentcontent– Whether the ad was under user Whether the ad was under user

controlcontrol (could be closed by the user) (could be closed by the user)– We predicted that an ad that We predicted that an ad that

obscures needs more controlobscures needs more control

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Revised ModelRevised Model

Attitude toward

Site

Intrusive-ness

Obscuring of Site Content

Lack of User

Control

Behavioral

Intentions

Irritation

Recall of the Ads

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Results of Simple Results of Simple Preliminary AnalysisPreliminary Analysis

Attitude toward

Site

Intrusive-ness

Obscuring of Site Content

Lack of User

Control

Behavioral

Intentions

Irritation

Recall of the Ads

.789 .489

F=54.8; p=.000

F=1.3; p=.254 (NS)

Interaction of Obscuring and Lack of Control on Intrusiveness: F=12.3; p=.001

-.339

.302

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InteractionInteraction

Interaction of Obstruction and Control

2

3

4

5

6

No Control Control

Intr

us

ive

ne

ss

Non-ObstructingObstructing

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Further Work NeededFurther Work Needed

Analyze model using SEM (after Analyze model using SEM (after hurricane season)hurricane season)

Work on justifications of Work on justifications of hypotheseshypotheses

Write paperWrite paper

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LimitationsLimitations

Subjects were college students, so Subjects were college students, so results might not generalizeresults might not generalize– But Voich (1995) found students to be But Voich (1995) found students to be

representative of values and beliefs of representative of values and beliefs of individuals in a variety of occupationsindividuals in a variety of occupations

– Materials were designed to tap “invariant” Materials were designed to tap “invariant” (Simon 1990) activities such as aspects of (Simon 1990) activities such as aspects of Web use.Web use.

Site was not realSite was not real

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Future ResearchFuture Research

Employ real sites, real ads chosen Employ real sites, real ads chosen in some systematic wayin some systematic way

Investigate effects on Investigate effects on – TrustTrust– AttributionAttribution– Overall website qualityOverall website quality– Purchase intentions or actual Purchase intentions or actual

purchasespurchases

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Concluding RemarksConcluding Remarks

We have an advertising “arms We have an advertising “arms race”race”

This topic could become obsolete This topic could become obsolete if advertisers loseif advertisers lose

If both escalate the battle, If both escalate the battle, controlled studies should tell us controlled studies should tell us what we are getting intowhat we are getting into

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An Experimental Study of An Experimental Study of Antecedents and Consequences of Antecedents and Consequences of

Pop-Up AdPop-Up AdIntrusiveness: A Study in ProgressIntrusiveness: A Study in Progress

Dennis Galletta, University of PittsburghDennis Galletta, University of PittsburghScott McCoy, College of William & MaryScott McCoy, College of William & MaryAndrea Everard, University of DelawareAndrea Everard, University of DelawarePeter Polak, University of MiamiPeter Polak, University of Miami

Syracuse University Seminar

October 24, 2005

(author order to be determined)

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Spanish TranslationsSpanish Translations