Back
 TI  Vol.4 No.1 , February 2013
Structural Holes and Banner-Ad Click-Throughs
Abstract: This paper examines the impact of social capital on advertising performance in an online social network. Specifically, we show that a widely-employed measure of social capital—network constraint—explains variation in the number of click-throughs received by 5986 banner advertisements appearing on 25 Twitter-related websites. As predicted, banner advertisements receive significantly more clicks when placed on websites that bridge structural holes, i.e. bridge otherwise disconnected segments of the network.
Cite this paper: S. Hunter III and R. Chinta, "Structural Holes and Banner-Ad Click-Throughs," Technology and Investment, Vol. 4 No. 1, 2013, pp. 30-44. doi: 10.4236/ti.2013.41005.
References

[1]   Interactive Advertising Bureau, “April 2009: Worldwide Social Network Ad Spending,” 2009. http://www.iab.net/insights_research/530422/1675/804264.

[2]   D. Lee, “Making money on a social network,” 2009. http://news.bbc.co.uk/2/hi/technology/7914351.stm

[3]   Twitter, “Does Twitter Hate Advertising?” 2009. http://blog.twitter.com/2009/05/does-twitter-hate-advertising.html

[4]   M. Monahan, “KPMG/Always on VC Survey: What You’re Telling Us,” On Media NYC, New York, 2008.

[5]   P. Kafka and A. Hallberg, “Report Card: Advertising Meets Social Networks-Have Ads Shown Traction on Major Social Networks and if Not, How Can They Be Optimized?” On Media NYC, New York, 2008.

[6]   D. A. Williamson, “Social Network Marketing: Slow Growth Ahead for Ad Spending,” e-Marketer, 2008.

[7]   A. Enders, H. Hungenberg, H.-P. Denker and S. Mauch, “The Long Tail of Social Networking: Revenue Models of Social Networking Sites,” European Management Journal, Vol. 26, No. 3, 2008, pp. 199-211. doi:10.1016/j.emj.2008.02.002

[8]   C. P. Campbell, P. Maglio, A. Cozzi and B. Dorn, “Expertise Identification Using Email Communications,” Conference on Information and Knowledge Management, New Orleans, 2003, pp. 528-531.

[9]   T. Palonen and K. Hakkarainen, “Patterns of Interaction in Computer-Supported Learning: A Social Network Analysis,” In: B. Fishman and S. O’Connor-Divelbiss, Eds., Fourth International Conferences of the Learning Sciences, Mahwah, 2000, pp. 334-339.

[10]   L. Leydesdorff, “Betweenness Centrality as an Indicator of the Interdisciplinarity of Scientific Journals,” Journal of the American Society for Information Science and Technology, Vol. 58, No. 9, 2007, pp. 1303-1319. doi:10.1002/asi.20614

[11]   J. Xu and H. Chen, “Criminal Network Analysis and Visualization,” Communications of the ACM, Vol. 486, No. 6, 2005, pp. 101-107.

[12]   S. P. Borgatti and L. Xun, “On Network Theory. Organization Science,” Journal of Supply Chain Management, Vol. 45, No. 2, 2009, pp. 5-22. doi:10.1111/j.1745-493X.2009.03166.x

[13]   S. Rodan and C. Galunic, “More than Network Structure: How Knowledge Heterogeneity Influences Managerial Performance and Innovativeness,” Strategic Management Journal, Vol. 25, No. 6, 2004, pp. 541-556. doi:10.1002/smj.398

[14]   P. Balkundi, M. Kilduff, Z. Barsness and J. Michael, “Demographic Antecedents and Performance Consequences of Structural Holes,” Journal of Organizational Behavior, Vol. 28, No. 2, 2007, pp. 241-260. doi:10.1002/job.428

[15]   S. Okazaki, “The Tactical Use of Mobile Marketing: How Adolescents: Social Networking Can Best Shape Brand Extensions,” Journal of Advertising Research, Vol. 49, No 1, 2009, pp. 12-26. doi:10.2501/S0021849909090102

[16]   N. Lin, K. Cook and R. Burt, “Social Capital: Theory and Research,” Aldine de Gruyter, New York, 2001.

[17]   R. Burt, “Brokerage and Closure: An Introduction to Social Capital,” Oxford University Press, Oxford, 2005.

[18]   R. Burt, “Structural Holes: The Social Structure of Competition,” Harvard University Press, Cambridge, 1995.

[19]   V. Krebs, “Social Network Analysis, A Brief Introduction,” 2009. http://www.orgnet.com/sna.html

[20]   R. Burt, “The Network Structure of Social Capital,” Research in Organizational Behavior, Vol. 22, No. 3, 2000, pp. 325-423.

[21]   P. Moran, “Structural and Relational Embeddedness: Social Capital and Managerial Performance,” Strategic Management Journal, Vol. 26, No. 12, 2005, pp. 1129-1151. doi:10.1002/smj.486

[22]   G. Soda, A. Usai and A. Zaheer, “Network Memory: The Influence of Past and Current Networks on Performance,” Academy of Management Journal, Vol. 47, No. 6, 2004, pp. 893-906. doi:10.2307/20159629

[23]   B. Iyer, C. Lee and N. Venkatraman, “Managing in a Small World Ecosystem: Some Lessons from the Software Sector,” California Management Review, Vol. 48, No. 3, 2008, pp. 28-47. doi:10.2307/41166348

[24]   W. Oh, J. Choi and K. Kim, “Coauthorship Dynamics and Knowledge Capital: The Patterns of Cross-Disciplinary Collaboration in Information Systems Research,” Journal of Management Information Systems, Vol. 22, No. 3, 2006, pp. 265-292. doi:10.2753/MIS0742-1222220309

[25]   T. Heinze, G. Bauer and P. Moran, “Structural and Relational Embeddedness: Social Capital and Managerial Performance,” Strategic Management Journal, Vol. 26, No. 12, 2005, pp. 1129-1151. doi:10.1002/smj.486

[26]   D. Ganley and C. Lampe, “The Ties that Bind: Social Network Principles in Online Communities,” Decision Support Systems, Vol. 47, No. 3, 2009. pp. 266-274. doi:10.1016/j.dss.2009.02.013

[27]   C. Okoli and W. Oh, “Investigating Recognition-Based Performance in an Open Content Community: A Social Capital Perspective,” Information and Management, Vol. 44, No. 3, 2007, pp. 240-252. doi:10.1016/j.im.2006.12.007

[28]   R. Gatarski, “Breed Better Banners: Design Automation through On-Line Interaction,” Journal of Interactive Marketing, Vol. 16, No. 1, 2001, pp. 2-13. doi:10.1002/dir.10002

[29]   H. Robinson and A. Wysocka and C. Hand, “Internet Advertising Effectiveness: The Effect of Design for ClickThrough Rates for Banner Ads,” International Journal of Advertising, Vol. 26, No. 4, 2007, pp. 527-541.

[30]   R. Briggs and N. Hollis, “Advertising on the Web: Is There Response before Click-Through?” Journal of Advertising Research, Vol. 37, No. 2, 1997, pp. 33-45.

[31]   H. Li and J. Bukovac, “Cognitive Impact of Banner Ad Characteristics: An Experimental Study,” Journalism & Mass Communication, Vol. 76, No. 2, 1999, pp. 341-353. doi:10.1177/107769909907600211

[32]   X. Dreze and F. Hussherr, “Internet Advertising: Is Anyone Watching,” Journal of Interactive Advertising, Vol. 17, No. 4, 2003, pp. 8-23.

[33]   M. Dahlen, A. Rasch and S. Rosengren, “Love at First Site? A Study of Website Advertising Effectiveness,” Journal of Advertising Research, Vol. 43, No. 1, 2003, pp. 25-33.

[34]   M. Dahlen, Y. Ekborn and N. Morner, “To Click or Not to Click: An Empirical Study of Response to Banner Ads for High & Low Involvement Products,” Consumption Markets and Culture, Vol. 4, No. 1, 2000, pp. 57-76. doi:10.1080/10253866.2000.9670349

[35]   W. Gong and L. M. Maddox, “Measuring Web Advertising Effectiveness in China,” Journal of Advertising Research, Vol. 43, No. 1, 2003, pp. 34-49.

[36]   F. Xie, N. Donthu, R. Lohtia and T. Osmonbekov, “Emotional Appeal and Incentive Offering in Banner Advertisements,” Journal of Interactive Advertising, Vol. 4, No. 2, 2004, p. 6.

[37]   F. Calisir and D. Karaali, “The Impacts of Banner Location, Banner Content and Navigation Style on Banner Recognition,” Computers in Human Behavior, Vol. 24, No. 2, 2008, pp. 535-543. doi:10.1016/j.chb.2007.02.019

[38]   C. Yoo and K. Kim, “Processing of Animation in Online Banner Advertising: The Roles of Cognitive and Emotional Responses,” Journal of Interactive Marketing, Vol. 19, No. 4, 2005, pp. 18-34. doi:10.1002/dir.20047

[39]   J. Chen, W. Ross, D. Yen and L. Akhapon, “The Effect of Types of Banner Ad, Web Localization, and Customer Involvement on Internet Users’ Attitudes,” Cyberpsychology & Behavior, Vol. 12, No. 1, 2009, pp. 71-73. doi:10.1089/cpb.2008.0199

[40]   A. Sigel, G. Braun and M. Sena, “The Impact of Banner Ad Styles On Interaction And Click-Through Rates,” Issues in Information Systems, Vol. 9, No. 2, 2008, pp. 337-342.

[41]   K. Burns and R. Lutz, “Web Users’ Perceptions of and Attitudes toward Online Advertising Formats,” International Journal of Internet Marketing and Advertising, Vol. 4, No. 4, 2008, pp. 281-301. doi:10.1504/IJIMA.2008.019150

[42]   R. Lohtia, N. Donthu and E. Hershberger, “The Impact of Content and Design Elements on Banner Advertising Click-Through Rates,” Journal of Advertising Research, Vol. 43, No. 4, 2003, pp. 410-418.

[43]   G. Ryu, E. Lim, L. Tan and Y. Han, “Preattentive Processing of Banner Advertisements: The Role of Modality, Location, and Interference,” Electronic Commerce Research and Applications, Vol. 6, No. 1, 2007, pp. 6-18. doi:10.1016/j.elerap.2005.11.001

[44]   B. Huhmann, “Visual Complexity in Banner Ads: The Role of Color, Photography, and Animation,” Visual Communication Quarterly, Vol. 10, No. 3, 2003, pp. 10-17. doi:10.1080/15551390309363510

[45]   R. Moore, C. Stammerjohan and R. Coulter, “Banner Advertiser-Web Site Context Congruity and Color Effects on Attention and Attitudes,” Journal of Advertising, Vol. 34, No. 2, 2003, pp. 71-84.

[46]   L. Sherman and J. Deighton, “Banner Advertising: Measuring Effectiveness and Optimizing Placement,” Journal of Interactive Marketing, Vol. 15, No. 2, 2001, pp. 60-64. doi:10.1002/dir.1011

[47]   FeaturedUsers, “Frequently Asked Questions: Featured Users,” 2009. http://featuredusers.com/faq#featuredUsers

[48]   S. Borgatti, M. Everett and L. Freeman, “Ucinet for Windows: Software for Social Network Analysis,” Cambridge, 2009.

[49]   P. Chatterjee, D. Hoffman and T. Novak, “Modeling the Clickstream: Implications for Web-Based Advertising Efforts,” Marketing Science, Vol. 22, No. 4, 2003, pp. 520-541. doi:10.1287/mksc.22.4.520.24906

[50]   J. Chandon, M. Chtourou and D. Fortin, “Effects of Configuration and Exposure Levels on Responses to Web Advertisements,” Journal of Advertising Research, Vol. 43, No. 2, 2003, pp. 217-229.

[51]   C. Cho, “How Advertising Works on the WWW: Modified Elaboration Likelihood Model,” Journal of Current Issues and Research in Advertising, Vol. 21, No. 1, 1999, pp. 34-50. doi:10.1080/10641734.1999.10505087

[52]   P. Chatterjee, “Are Unclicked Ads Wasted? Enduring Effects of Banner and Pop-Up Ad Exposures on Brand Memory and Attitudes,” Journal of Electronic Commerce Research, Vol. 9, No, 1, 2008, pp. 56-61.

[53]   J. Murphy, C. Hofacker and Y. Racine, “Testing Position Effects and Copy to Increase Web Page Visits,” Information Technology & Tourism, Vol. 8, No. 1, 2006, pp. 3-13. doi:10.3727/109830506778193869

[54]   N. Razzouk and V. Seitz, “Banner Advertising and Consumer Recall: An Empirical Study,” Journal of Promotion Management, Vol. 9, No. 1-2, 2003, pp. 71-80. doi:10.1300/J057v09n01_07

[55]   J. Wang and R. Day, “The Effects of Attention Inertia on Advertisements on the WWW,” Computers in Human Behavior, Vol. 23, No. 3, 2007, pp. 1390-1407. doi:10.1016/j.chb.2004.12.014

[56]   R. Dewan, M. Freimer and J. Zhang, “Management and Valuation of Advertisement-Supported Web Sites,” Journal of Management Information Systems, Vol. 19, No. 3, 2003, pp. 87-98.

[57]   FeaturedUsers, “Frequently Asked Questions: Publishers,” 1979. http://featuredusers.com/faq#featuredUsers

[58]   K. Burns and R. Lutz, “The Function of Format: Consumer Responses to Six On-Line Advertising Formats,” Journal of Advertising, Vol. 35, No. 1, 2006, pp. 53-63. doi:10.2753/JOA0091-3367350104

[59]   R. Lohtia, N. Donthu and I. Yaveroglu, “Evaluating the Efficiency of Internet Banner Advertisements,” Journal of Business Research, Vol. 60, No. 4, 2007, pp. 365-370. doi:10.1016/j.jbusres.2006.10.023

[60]   M. Hupfer and A. Grey, “Getting Something for Nothing: The Impact of a Sample Offer and User Mode on Banner Ad Response,” Journal of Interactive Advertising, Vol. 6, No. 1, 2006, pp. 105-117.

[61]   E. Plakoyiannaki, K. Mathioudaki, P. Dimitratos and Y. Zotos, “Images of Women in Online Advertisements of Global Products: Does Sexism Exist?” Journal of Business Ethics, Vol. 83, No. 1, 2008, pp. 101-112. doi:10.1007/s10551-007-9651-6

[62]   J. Severn, G. Belch and M. Belch, “The Effects of Sexual and Non-Sexual Advertising Appeals and Information on Cognitive Processing and Communication Effectiveness,” Journal of Advertising, Vol. 19, No. 1, 1990, pp. 14-22.

[63]   R. Kerin, W. Lundstrom, J. William and D. Sciglimpaglia, “Women in Advertisements: Retrospect and Prospect,” Journal of Advertising, Vol. 8, No. 3, 1979, pp. 37-42.

[64]   V. Krebs, “Social Network Analysis, A Brief Introduction,” 2009. http://www.analytictech.com/networks/egonet.htm

[65]   P. Danaher and G. Mullarkey, “Factors Affecting Online Advertising Recall: A Study of Students,” Journal of Advertising Research, Vol. 43, No. 3, 2003, pp. 252-267. doi:10.1017/S0021849903030319

[66]   K. Yang, “Effects of Consumer Motives on Search Behavior Using Internet Advertising,” CyberPsychology & Behavior, Vol. 7, No. 4, 2008, pp. 430-442. doi:10.1089/cpb.2004.7.430

 
 
Top