Noris Bruce (University of Texas at Dallas): 

"A dynamic model for digital advertising: The effects of creative formats, message content and targeting on engagement” (with  B.P.S. Murthi, Ram C. Rao)

Wednesday, May 25, 14:00 – 16:00 (WiSo Building, Room 410) 

Abstract:

The authors study the joint effects of creative format, message content, and targeting on the performance of digital ads over time. Specifically, they present a dynamic model to measure the effects of different sized static (GIF) and animated (Flash) display ad formats; and consider whether different ad contents, related to brand or a price offer, are more or less effective for different ad formats and targeted or re-targeted consumers. To this end, they obtain daily impressions, clicks, targeting, and ad creative content data for a six-month period, from a major US retailer; and develop a dynamic zero-inflated (DZI) count model. Given the sparse, non-linear, and non-Gaussian nature of the data, the study designs a particle filter/MCMC scheme for estimation. Results show that carryover rates for dynamic formats are greater than for static formats; yet static format can still be effective for price ads and re-targeting. Most interesting, results also show that re-targeted ads are effective only if they offer price incentives. The study then considers the import of these results for the retailer’s media schedules.