Main Article Content
Abstract
Abstract. As internet advertising becomes increasingly prevalent, both consumers and advertisers face new challenges, particularly as the phase-out of third-party cookies has reduced the accuracy of ad targeting. In light of such changes, this study examines the effectiveness of online advertising from the consumer's perspective in targeting-constrained environments. An agent-based simulation model was developed to capture the process from ad exposure to purchase and subsequent sharing. The model incorporates key variables such as interest matching, exposure frequency, and social influence. Simulation results demonstrate that even without precise targeting, ad effectiveness can be improved by aligning content with consumer interests and optimizing exposure frequency. These findings offer practical insights into designing privacy-conscious, user-friendly advertising strategies.
Keywords: Agent-based modeling, internet advertising, consumer behavior, advertising effectiveness, repeated exposure
Keywords
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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Copyright @2017. This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (http://creativecommons.org/licenses/by-nc-sa/4.0/) which permits unrestricted non-commercial used, distribution and reproduction in any medium
References
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References
Adeline, B. I., Kay, H. N. N., Tan, G. W.-H., Lo, P.-S., Chaw, L.-Y., & Ooi, K.-B. (2023). A relook at the mobile advertising landscape: What are the new consumer expectations in the retailing industry? Telematics and Informatics, 79. Doi: 10.1016/J.TELE.2023.101953
Alalwan, A. A. (2018). Investigating the impact of social media advertising on purchase intention: A study in the retailing industry. International Journal of Information Management, 42, 65–72. doi: 10.1016/j.ijinfomgt.2018.06.001
Arai, Y., Kajiyama, T., & Ouchi, N. (2012). The impact of social networks on diffusion process: An analysis of consumer behavior model by multi-agent simulation. Abstracts of the National Research and Presentation Conference of the Japan Society for Management Information Sciences.
Baek, T. H., & Morimoto, M. (2012). Stay away from me: Examining the determinants of consumer avoidance of personalized advertising. Journal of Advertising, 41(1), 59–76.
Bleier, A., & Eisenbeiss, M. (2015). The importance of trust for personalized online advertising. Journal of Retailing, 91(3), 390–409.
Fukunaka, S., Kitanaka, H., Chunhui, X., & Shiba, N. (2007). An analysis of promotion strategies for products with network externalities. Abstracts of the National Research and Presentation Conference of the Japan Society for Management Information Sciences.
Hatakeyama, T., Nishioka, D., & Saito, Y. (2016). A study on improvement of an algorithm for video advertisement insertion using smartphone sensors. Multimedia, Distributed, Cooperative, and Mobile Symposium.
Hotta, H., Nozawa, T., & Hagiwara, M. (2008). Location based internet advertisement system using neural network. Journal of Japan Society for Fuzzy Theory and Intelligent Informatics, 20(3), 347–356.
Hummel, A., Kern, H., Döhler, A., & Kühne, S. (2012). An agent-based simulation of viral marketing effects in social networks.
Japan. Ministry of Internal Affairs and Communications. (2024). Results of the 2023 Communications Usage Trends Survey. (Document No. 240607_1). Tokyo: Ministry of Internal Affairs and Communications.
Japan. Ministry of Internal Affairs and Communications. (2015). White Paper on Information and Communications in Japan 2015: Trends in Internet usage. URL: https://www.soumu.go.jp/johotsusintokei/whitepaper/ja/h27/html/nc242250.html.
Kamada, A., Usui, N., & Yoshino, D. (2009). The mere exposure eff ect in choosing merchandise: An examination of impressions and categories of merchandise. Annual Report of Bunkyo University, 31
Krugman, H. E. (1972). Why three exposures may be enough. Journal of Advertising Research, 12(6), 11–14.
Kusumi, T., Matsuda, K., & Sugimori, E. (2009). Advertisement and consumer behavior : Sense of safety and nostalgia by mere exposure effect. The Japanese Journal of Psychonomic Science, 28(1), 142–146.
Lee, J. (2021). Avoiding advertising: Examining the predictors of consumer avoidance of online advertising. Keio Media and Communications Research: Annals of the Institute for Journalism, Media & Communication Studies, 71, 117–130.
Mariko M. (2021). Privacy concerns about personalized advertising across multiple social media platforms in Japan: the relationship with information control and persuasion knowledge. International Journal of Advertising, 40(3), 431-451. doi: 10.1080/02650487.2020.1796322
Masuda, H., Uemura, R., & Takeshi, A. (2008). An agent-based model of consumer behavior considering social networks: Applied to the digital music player market. Journal of the Japan Society for Management Information, 17(1), 1–23.
Montgomery, A. L., Li, S., Srinivasan, K., & Liechty, J. C. (2004). Modeling online browsing and path analysis using clickstream data. Marketing Science, 23(4), 579–595. doi: 10.1287/mksc.1040.0073
Motohashi, E., Isozaki, N., Nagao, H., & Higuchi, T. (2012). Predicting click rates for internet advertisements using state space models. Operations Research as a Management Science, 57(10), 574–583.
Odoom, P. T. (2022). Personalised Display Advertising and Online Purchase Intentions:. International Journal of E-Services and Mobile Applications. 14(1), doi: 10.4018/IJESMA.296575
Ono, I., Ishikawa, M., & Deguchi, H. (2020). Proposal of SOARS Toolkit for large-scale agent-based simulation. The Society of Instrument and Control Engineers.
Pechmann, C., & Stewart, D. W. (1989). Advertising repetition: A critical review of wearin and wearout. Current Issues and Research in Advertising, 11(2), 285–329.
Reena, M., & Udita, K. (2020). Impact of personalized social media advertisements on consumer purchase intention. Annals of “Dunarea de Jos” University of Galati, Fascicle I. Economics and Applied Informatics, 26(2), 15–24. doi: 10.35219/eai15840409101
Riccardo Parviero, Kristoffer H. Hellton, Ola Haug, Kenth Engø-Monsen, Hanne Rognebakke, Geoffrey Canright, Arnoldo Frigessi, Ida Scheel. (2022). An agent-based model with social interactions for scalable probabilistic prediction of performance of a new product. International Journal of Information Management Data Insights, 2, 100127.
Shiraishi, R. (2018). A bidding strategy of advertising agency in internet advertising auctions. Bulletin of Graduate Studies. Science and Engineering, 48.
Sprocket Corporation. (2022, August 9). What is the average CVR (conversion rate)? Survey data by industry and ideas on target values. [Web site]. Retrieved from https://www.sprocket.bz/blog/20220809-cvr-average.html
Tagami, Y., Ono, S., & Tajima, A. (2014). Elementary evaluation of CVR prediction models for online advertising. DEIM.
The Nikkei. Advertising and viewer padding scams expanded, with domestic losses totaling 130 billion yen last year. [Web site]. (2022). Retrieved from https://valuesearch.nikkei.com/popup?keyBody=NIKNWSDGXZQOUC20CO4020122022000000&articleId=NIKNWSDGXZQOUC20CO4020122022000000
The Nikkei. Internet advertising expenditures surpassed total of four media, including TV, for first time. [web site]. (2022). Retrieved from https://www.nikkei.com/article/DGXZQOUC244UW0U2A220C2000000/
unidoa. (2024). What are the Seven Hits Theory and the Three Hits Theory. [Web site]. Retrieved from https://unidoa.com/column/7-hit-theory
Youn, S. Kim. S. (2019) Newsfeed native advertising on Facebook: young millennials’ knowledge, pet peeves, reactance and ad avoidance. International Journal of Advertising, 38(5), 651-683. doi: 10.1080/02650487.2019.1575109
Zajonc, R. B. (1968). Attitudinal effects of mere exposure. Journal of Personality and Social Psychology, 9, 1–27. doi: 10.1037/h0025848