From Wearout to Weariness: Understanding the Effects of Online Advertising

The study discovered that 24% of users showed "weariness," a state of diminished interest or engagement rather than just wearout from online advertising, leading to decreased website visits despite higher ad exposures. This indicates a turning point where additional advertising becomes detrimental.?

The Why's? ??

In an era where digital presence is omnipresent, recognising the fine line between engaging consumers and overwhelming them with ads is crucial. The findings from this study underscore a pivotal shift needed in digital marketing strategies from a focus on ad quantity to the quality and relevance of ad placements. By highlighting the phenomenon of weariness, where additional ad exposures can lead to negative consumer responses, the research stresses the importance of highly strategic ad deployment. This knowledge gives businesses and marketers the data needed to refine their advertising tactics, ensuring that they foster positive consumer engagement rather than inadvertently driving potential customers away.?

How can this enhance consumer brand perceptions and loyalty in businesses??

Overexposure to online ads can not only reduce a campaign's immediate effectiveness but also harm long-term brand perceptions, leading to decreased consumer loyalty. By identifying the thresholds of ad weariness, companies can tailor their advertising efforts to maintain a positive brand image. This approach helps build lasting consumer relationships, crucial for sustaining brand loyalty in competitive markets.?

The research highlights the economic imperative of avoiding ad weariness, emphasizing the diminishing—and eventually negative—returns on investment beyond a certain point of ad exposure. This study pinpoints that critical juncture at which 24% of users begin to exhibit signs of weariness, providing a clear rationale for adopting a more measured approach to online advertising. By optimizing marketing budgets to focus on effective and efficient ad exposures before reaching this threshold, businesses can maximize their overall return on investment and mitigate the counterproductive effects of ad saturation. Thus, understanding the psychological and behavioural impacts of ad exposure helps contribute to a healthier online ecosystem.?

The Findings ??

By analysing data from acquisition campaigns and exploring the strategies of ad profiling and capping, the study aims to provide insights into optimizing ad placement and targeting techniques for enhanced effectiveness. Specifically, the following insights are drawn:?

• Ad Weariness Identified. Approximately 24% of users exhibit negative reactions to excessive ad exposure, indicating a phenomenon known as weariness.?

• Differential Publisher Effectiveness. The study reveals that the most effective publisher in driving website visits is significantly more efficient than lower-ranked publishers, emphasizing the importance of strategic platform selection.?

• Effective "Profiling and Capping" Strategy. Tailoring ad frequency and targeting based on user responses can potentially improve ad effectiveness by up to 15%.

The Actionable Recommendations ?

• Implement "profiling and capping" strategies to tailor ad exposure based on individual consumer behaviour, improving overall campaign performance.?

• Selective publisher utilisation focuses on those more effectively driving target website visits.?

• Monitor and adjust ad frequency to prevent consumer weariness, optimising the balance between ad visibility and consumer irritation thresholds.?

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The Theory ??

• Nonlinear Response to Advertising. Acknowledging that consumer response to ad exposure is nonlinear, with diminishing returns and potential negative impacts beyond a certain threshold. This nonlinearity suggests that there is a point at which additional ad exposures may lead to weariness or adverse reactions from consumers, highlighting the importance of understanding and managing advertising repetition to avoid adverse effects on consumer behaviour.?

• Heterogeneity in User Responses. The study utilises a discrete mixture model to classify users based on their response to ad exposure, showcasing varied consumer sensitivity and highlighting the need for personalized advertising strategies. This heterogeneity implies that different consumers have varying levels of sensitivity to ad exposure, leading to diverse responses in terms of engagement and behaviour.

The Methods ??

The study analyzed over 12,000 users across more than 400 websites, using a discrete mixture model to categorize user responses to ad exposures. It investigated the relationship between ad volume/placement and website visits, factoring in individual browsing behaviours and publisher effectiveness.?

The Caveat and Limitations ???

• The study focused on website visit behaviour as a proxy for consumer response, which may not fully capture the entire purchase funnel.?

• Future research could explore the waning of weariness over the purchase funnel and investigate the synergistic effects of different publishers.?

Full Reference

Chae, I., Bruno, H. A., & Feinberg, F. M. (2019). Wearout or weariness? Measuring potential negative consequences of online ad volume and placement on website visits. Journal of Marketing Research, 56(1), 57-75.

The Consumer Research Lab is an award-winning research team at Curtin University specialising in providing evidence-based and actionable consumer insights for industry partners. Apart from traditional market research methods, it specialises in the use of consumer neuroscience, machine learning, and digital innovations to address different industry challenges. Get in touch to find out more by emailing [email protected]