The Visual-Cognitive Model for Internet Advertising in Online Market Places

Abstract

Social media and online firms are currently facing severe challenges generating revenue through online banner ads, and for two decades, current studies in the information systems, advertising, and marketing literature have shown that online banner ad click-through rates are decreasing steadily (Idemudia, 2014; Idemudia et al., 2007; Li et al., 2012). To address these issues, the Visual-Cognitive (VC) model has been developed for online market places and Internet advertising. An experiment was conducted in which independent variables such as familiarity of online banner ads, perceived security of online banner ads, and matches between web users' needs and banner ad content were manipulated. The theoretical background for the VC model is the Visual Perception Theory. The VC model shows that perceived usefulness of online banner ads has a positive and significant effect on the intention to click online banner ads. Also, the VC model shows that perceived security of online banner ads, matches between web users' needs and banner ad contents, and perceived familiarity of online banner ads have positive and significant effects on perceived usefulness of those ads. These findings strongly support the Visual Perception Theories. Thus, the VC model has significant research and practical implications relating to social media and online firms.