Abstract

1. Introduction With the increasing popularity of video contents, companies are keen on utilizing video content as an advertising space. Targeted advertising is directed towards consumers with certain characteristics (Plummer et al. 2007), and food advertisements are usually exposed to consumers of a certain age at specific times along with popular TV programs favored by the target segment (Soni and Vohra 2014). As such, targeted advertising has received a lot of attention as an effective way for companies to reach potential customers who are more likely to purchase; however, research on targeted advertising still lacks. Therefore, this study focuses on various targeting strategies widely used in video advertisements and examines their effects on advertising effectiveness in the food industry. This study further investigates that these targeting effects vary between devices. Specifically, this study intends to answer the following research questions. First, how do the targeting strategies affect the effectiveness of food advertisement on the video platform? Second, how does the device type moderate the aforementioned effects? 2. Literature Review and Hypotheses Development Companies today have a lot of information on consumer preferences and media habits (Iyer, David and Miguel 2005), so targeted advertising can be executed to increase the interest of specific consumers, thereby increasing advertising effectiveness. Currently, there are three general targeting strategies on video platform: 1) contextual targeting, 2) popular content targeting, and 3) demographic and time targeting which can be classified as audience targeting. According to various targeting strategies, consumers view advertisements with different degrees of relevance to themselves when consuming media. As for devices, PC and mobile have some differences in internet usage. PC is effective for multitasking and thus PC users are exploration-oriented, so new information and interest provided by advertisements are important factors in determining ad completion. Exploration-oriented users are highly open to information that they did not know, and thus show relatively high interest and openness to advertisements that are not relevant to them. However, mobile is less convenient for multitasking than PC and thus mobile users are goal-orientated, so not only new information and interest provided by advertisements but also perceived intrusiveness caused by advertisements are important factors in determining ad completion. Goal-oriented users focus more on their tasks, and thus show relatively low interest and openness to advertisements that are not relevant to them. Based on the characteristics of targeting strategies and devices, we hypothesize the interplay of targeting strategies and devices on the effectiveness of food advertisement as follows: [H1] When watching video content on PC, popular content targeting in comparison with contextual targeting has a positive effect on ad completion. [H2] When watching video content on PC, audience targeting in comparison with contextual targeting has a positive effect on ad completion. [H3] When watching video content on mobile, the PC-based positive effect of popular content targeting compared to contextual targeting decreases. [H4] When watching video content on mobile, the PC-based positive effect of audience targeting compared to contextual targeting decreases. 3. Data and Analysis To verify the research hypothesis discussed above, the authors obtained users

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