The Virtual Location of E-Tailers: Evidence from a B2C E-Commerce Market

An Internet retailer?s (e-tailer?s) outstanding virtual location enhances the probability of being noticed by potential customers. The notion of a virtual location for e-tailers refers to the analogy to the physical location. In the empirical analysis, an e-tailer?s Internet search engine rank as well as its advertising activities in search engines serve as proxies for the virtual location. The results suggest that it is optimal for e-tailers to complement a high search engine rank with investments in online advertising. Moreover, banner ads seem to serve as price advertising mechanism, whereas sponsored links rather seem to be used in order to signal outstanding customer service. --virtual location,online advertising,search engines

The development and testing of a child-inspired advertising disclosure to alert children to digital and embedded advertising

Via three studies, this article aims to develop and test an advertising disclosure which is understandable for children (ages six to 12 years old) and which can alert them to different types of advertising in multiple media formats. First, cocreation workshops with 24 children (ages eight to 11 years old) were held to determine a selection of disclosure designs based on insights from the target group. Second, two eye-tracking studies among 32 children (ages six to 12 years old) were conducted to test which of these disclosure designs attracted the most attention when the disclosures were integrated into a media context. These studies led to the selection of the final advertising disclosure: a black rectangular graphic with the word Reclame! (i.e., Dutch for "Advertising!") in yellow letters. Finally, a two-by-two, between-subjects experimental study (disclosure design: existing versus child-inspired advertising disclosure; advertising format: brand placement versus online banner advertising) with 157 children (ages 10 and 11 years old) was performed to test the effectiveness of the child-inspired disclosure by comparing it with existing ones. This study not only showed that children recognized, understood, and liked the child-inspired disclosure better than the existing ones, but they were also better able to recognize advertising after exposure to this child-inspired advertising disclosure

The Effects of Website Provision on the Demand for German Women's Magazines

The effect of website provision on the demand for German women's magazines is analyzed using differentiated product demand models estimated on panel data that cover the period 1990 2000. Descriptive evidence on the magazines' website contents suggests that websites are used to provide supplementary information and to advertise the current print issue. Website provision does not significantly affect magazines' market shares. This result is robust with respect to the application of alternative econometric approaches to identify the demand model. A counter-factual analysis shows, however, that online magazines would loose around 0.3 per cent in market shares if they went back offline. Likewise, magazines that are currently offline may gain market shares of between 0.07 and 0.37 per cent if they launched a website. Interestingly, some of the potential winners' from going online actually launched a website in 2001.

Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets?

Newspapers have experienced declining circulation figures and declining advertising revenues for several years. In particular, declining advertising figures put a threat on newspapers – this is especially severe in the US where 73% of their revenues are generated through advertising. On the advertising side many companies have expanded their advertising expenditure towards online. Consequently, there are concerns about online advertising substituting newspaper advertising – in the same way as it has been feared for many years for the readership side. Both possible effects might put a threat on the further existence of (print) newspapers. However, though the internet – compared to newspapers – offers a variety of advantages for advertising companies, substitution tendencies cannot be generalized. In particular, we argue that newspaper advertising offers great benefits for the retailing industry. Consequently, we believe that retail advertising offers a niche for regional and local newspapers that can be expected to represent a sustainable segment of complementarity within the otherwise predominantly substitutional advertising markets. The paper substantiates this argument by applying the economic theory of advertising – in particular the differentiation between persuasive/complementary and informative advertising. The latter one presents the reason for retailers to continue advertising in newspapers. Subsequently, we conclude that no complete substitution between newspaper and online advertising can be expected to take place on the advertising side in the foreseeable future. The authors like to thank the participants of the EMMA-conference in Moscow (June 2011) and the members of the research group ‘Markets & Competition’ as well as Anna Lund Jepsen for helpful comments on an earlier version of this paper.: Media economics, advertising, competition, complementation, substitution, online

Digital Food Marketing to Children and Adolescents: Problematic Practices and Policy Interventions

Examines trends in digital marketing to youth that uses "immersive" techniques, social media, behavioral profiling, location targeting and mobile marketing, and neuroscience methods. Recommends principles for regulating inappropriate advertising to youth

Transaction Streams: Definition and Implications for Trust in Internet-Based Electronic Commerce.

In this paper we analyze how transactions related to the exchange of goods and services are being performed on the Internet. The adoption of electronic markets in an industry has a disintermediation potential because it can create a direct link between the producer and the consumer (without the need for the intermediation role of distributors). Electronic markets lower the search cost, allowing customers to choose among more providers (which ultimately reduces both the costs for the customer and the profits for the producer). In this paper we contend that electronic markets on the Internet have the opposite effect, resulting in our increase in the number of intermediators. We introduce transaction streams, which model how transactions are being conducted and help explain the types of new intermediators that are appearing on the Internet. We also describe mechanisms by which companies are exploring ways of extending transaction streams. To illustrate the model and validate our findings, we analyze transaction streams in the insurance industry and review associated concepts such as trust and brands.transactions; electronic markets;

Is adaptation of e-advertising the way forward?

E-advertising is a multi-billion dollar industry that has shown exponential growth in the last few years. However, although the number of users accessing the Internet increases, users don’t respond positively to adverts. Adaptive e-advertising may be the key to ensuring effectiveness of the ads reaching their target. Moreover, social networks are good sources of user information and can be used to extract user behaviour and characteristics for presentation of personalized advertising. Here we present a two-sided study based on two questionnaires, one directed to Internet users and the other to businesses. Our study shows that businesses agree that personalized advertising is the best way for the future, to maximize effectiveness and profit. In addition, our results indicate that most Internet users would prefer adaptive advertisements. From this study, we can propose a new design for a system that meets both Internet users’ and businesses’ requirements