Exploring the Effect of Google Display
Advertising on Brand Equity
The role of product involvement
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Table of Content
› Background
› Main Research Question › Sub Questions
› Conceptual Model › Research Method › Models
› Conclusions
Background
› The use of the Internet has increased rapidly › Transparancy and online research
› New ways of advertising
› Display advertising increases purchase probability (e.g., Ghose and Todri-Adamopoulos 2016; Srinivasan, Rutz, and Pauwels 2016)
› Effectiveness of display ads differs among different types of websites (Auschaitrakul and Mukherjee 2017)
Sub Questions
› What is the effect of Google display advertising on brand awareness?
› What is the effect of Google display advertising on branded search?
› What is the effect of brand awareness on branded search? › What is the moderating effect of brand awareness regarding
the direct effect of Google display advertising on sales?
Research Method
› Two data sets: dairy brand and energy provider › Data collected and offered by GfK
› Census and panel data › Linear additive model
Model 1: Basic model
𝑆
𝑡= 𝛽
1𝐺𝐷
𝑡+ 𝛽
2𝐵𝐴
𝑡+ 𝛽
3𝐵𝑆
𝑡+ 𝜀
𝑡where
𝑆𝑡 = volume of sales in week t;
𝐺𝐷𝑡 = Google display cost of ad in week t;
Model 2: Interaction effect
Serial Multiple Mediator Model
Conclusions
› Serial multiple mediator model only tested for dairy brand
Significant total indirect effect
Consumers perform online research
for any type of product
Moderating effect of BA exists only for LI
› Spontaneous brand awareness positively moderates the direct effect of Google display advertising on sales in case of low
involvement, but not for high-involvement products
2,577 0,8 0 0,5 1 1,5 2 2,5 3 Interaction effect
Limitations & Recommendations
› Poor model fit
› Dynamic marketing landscape
Questions?
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