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The impact of multi-type online advertising on the consumer engagement transition

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Abstract

The explosion in the volume and variety of online advertising has contributed to constantly changing consumer engagement states by influencing their experience through the journey to purchase. In this paper, we use a latent Markov model to analyze the panel data from a large e-commerce firm, so as to explore changes in the engagement behavior and the latent engagement state transition of consumers under different advertising. Contrary to common belief, advertising does not always play an active role in communicating with consumers. Our findings show that the response of consumers to advertising is heterogeneous at different engagement levels, and this heterogeneity will be affected by the type of advertising and the number of different advertisements consumers contact. We explore the underlying reasons for the two-sided impact of advertising on consumer engagement, and thus expected to provide managerial insights for marketers who pay attention to consumer experience.

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The data is not publicly available and can be obtained from the corresponding author by reasonable request.

Notes

  1. https://nielseniq.com/global/en/insights/analysis/2022/the-evolution-of-e-commerce-globally/.

  2. https://www.emarketer.com/content/worldwide-digital-ad-spending-year-end-update.

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Acknowledgements

This research was supported by National Natural Science Foundation of China [Grant No. 71771122] and Postgraduate Research & Practice Innovation Program of Jiangsu Province [Grant Nos. KYCX21_0393, KYCX22_0386].

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Authors and Affiliations

  1. School of Economics and Management, Nanjing University of Science and Technology, Nanjing, 210094, Jiangsu, China

    Baixue Chen, Li Li & Shun Li

  2. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 210016, Jiangsu, China

    Qixiang Wang

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  1. Baixue Chen
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Correspondence to Li Li.

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Chen, B., Li, L., Wang, Q. et al. The impact of multi-type online advertising on the consumer engagement transition. Electron Commer Res (2023). https://doi.org/10.1007/s10660-023-09775-5

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