Enhancing the effectiveness of online video advertising through interactivity

122 Pages·2014·8.34 MB·English

by  Arnold Robinson

ENHANCING THE EFFECTIVENESS OF ONLINE VIDEO ADVERTISING
THROUGH INTERACTIVITY
by
Arnold Robinson

A Dissertation Submitted to the Faculty of
The College of Business
In Partial Fulfillment of the Requirements for the Degree of
Doctor of Philosophy

Florida Atlantic University
Boca Raton, FL
May 2014

ABSTRACT
Author: Arnold E Robinson III
Title: Enhancing the Effectiveness of Online Video Advertising through
Interactivity

Institution: Florida Atlantic University
Advisor: Dr. Pradeep Korgaonkar
Degree: Doctor of Philosophy
Year: 2014
This research examines how incorporating interactivity into online video
advertisements effects the following key marketing dependent variables: a) Involvement
with the Advertisement, b) Ad Recall, c) Attitude towards the website, d) Attitude
towards the Advertisement, e) Attitude towards the Brand, and f) Purchase Intention.
Deriving from past Interactivity research, three important facets of interactivity are
identified; User Control, Two-way Communication and Synchronicity. In order to test an
Internet based 2 (User Control: high or low) X 2 (two-way communication: high or low)
X 2 (synchronicity: high or low) between subjects experimental design, 8 different online
video platforms were created. The online video experiment was administered to
approximately 400 students in a large South-Eastern school.
Overall the findings regarding interactivity in online video advertising found no
significant effect of synchronicity on the dependent variables. There was however a
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significant interaction effect of user control and two-way communication on the
dependent variables. These interaction effects were examined further with a cell means
multiple comparison analysis. User control and two-way communication were found to
have a significant interaction effect on ad recall, purchase intention and attitude towards
the brand. User control had a significant effect on involvement and two-way
communication had a significant effect on attitude towards the website. There was no
effect of UC or TWC on attitude towards the ad.
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ENHANCING THE EFFECTIVENESS OF ONLINE VIDEO ADVERTISING
THROUGH INTERACTIVITY
LIST OF TABLES ................................................................................................................. viii
LIST OF FIGURES .................................................................................................................. ix
CHAPTER 1: INTRODUCTION AND STATEMENT OF PROBLEM ................................. 1
Introduction: .......................................................................................................................... 1
Online Video Advertising Challenges .............................................................................. 4
CHAPTER 2: INTERACTIVITY RESEARCH TO DATE ..................................................... 8
Interactivity Conceptualization ....................................................................................... 12
User Control ........................................................................................................................ 12
Two-way communication ................................................................................................... 14
Synchronicity ...................................................................................................................... 17
Study Hypotheses ................................................................................................................ 19
Involvement with the Ad ..................................................................................................... 20
Ad Recall ............................................................................................................................ 21
Attitude Towards the Web Site ........................................................................................... 22
Attitude Towards the Advertisement .................................................................................. 24
Attitude Towards the Brand ................................................................................................ 25
Purchase Intention ............................................................................................................... 25
CHAPTER 3: METHODOLOGY ........................................................................................... 27
Operationalization ............................................................................................................... 28
Stimuli and Participants: ..................................................................................................... 31
Dependent Measures ........................................................................................................... 35
Involvement with Ad: ..................................................................................................... 35
Attitude Towards the Web Site: ..................................................................................... 36
Attitude Towards the Ad: ............................................................................................... 37
Ad Recall ........................................................................................................................ 37
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Attitude Towards Brand: ................................................................................................ 37
Purchase Intentions ......................................................................................................... 38
CHAPTER 4: RESULTS ........................................................................................................ 39
Manipulation Checks .......................................................................................................... 39
User Control ................................................................................................................... 39
Two-Way Communication: ............................................................................................ 40
Synchronicity .................................................................................................................. 42
Main Study .......................................................................................................................... 44
Sample ................................................................................................................................. 44
Outliers ................................................................................................................................ 47
Missing Data ....................................................................................................................... 48
Cell Size Assumption .......................................................................................................... 48
Normality ............................................................................................................................ 49
Multicollinearity.................................................................................................................. 52
CFA - Measurement Validation .......................................................................................... 53
Validity ............................................................................................................................... 58
Reliability ............................................................................................................................ 60
Hypothesis Testing .............................................................................................................. 60
MANOVA ............................................................................................................................ 60
Involvement with the advertisement– H1 ....................................................................... 63
Ad Recall – H2 ............................................................................................................... 65
Attitude Towards the Website – H3 ............................................................................... 68
Attitude Towards the Ad – H4 ........................................................................................ 70
Attitude Towards the Brand – H5 ................................................................................... 72
Purchase Intention – H6.................................................................................................. 74
Conclusion .......................................................................................................................... 77
CHAPTER 5: DISCUSSION .................................................................................................. 78
Managerial Implications ..................................................................................................... 87
Limitations .......................................................................................................................... 89
Future Research................................................................................................................... 90
Conclusion .......................................................................................................................... 91
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APPENDIX ............................................................................................................................. 92
REFERENCES ...................................................................................................................... 106

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LIST OF TABLES

Table 1 - User Control Manipulation Test Descriptives ................................................... 40
Table 2 - User Control Manipulation Test ANOVA Results ............................................ 40
Table 3 - Two Way Communication Manipulation Test Descriptives ............................. 41
Table 4 - Two Way Communication Manipulation Test ANOVA Results ...................... 42
Table 5 - Synchronicity Manipulation Test Descriptives ................................................. 43
Table 6 - Synchronicity Manipulation Test ANOVA Results .......................................... 43
Table 7 - Conditions and Number of Responses .............................................................. 46
Table 8 - Conditions and Usable Responses ..................................................................... 49
Table 9 - Normality Assessment ....................................................................................... 51
Table 10 - Correlation Tests ............................................................................................. 53
Table 11 - Baseline Comparison - IFI............................................................................... 55
Table 12 - RMSEA ........................................................................................................... 56
Table 13 - CFA Diagram with standardized estimates ..................................................... 57
Table 14 - Discriminant Validity Table (AVE) ................................................................ 59
Table 15 - Reliability ........................................................................................................ 60
Table 17 - MANOVA Multivariate Tests ......................................................................... 62
Table 18 - Involvement Cell Mean Descriptives .............................................................. 63
Table 19 - Ad Recall Cell Mean Descriptives .................................................................. 66
Table 20 - Ad Recall Cell Means Multiple Comparisons ................................................. 67
Table 21 - Attitude Towards Website Cell Mean Descriptives ........................................ 68
Table 22 - Attitude Towards Website Cell Means Multiple Comparisons ....................... 70
Table 23 - Attitude Towards the Ad Cell Mean Descriptives .......................................... 71
Table 24 - Attitude Towards the Ad Cell Means Multiple Comparisons ......................... 72
Table 25 - Attitude Towards the Brand Cell Mean Descriptives ...................................... 73
Table 26 - Attitude Towards the Brand Cell Means Multiple Comparisons .................... 74
Table 27 - Purchase Intention Cell Mean Descriptives .................................................... 75
Table 28 - Purchase Intention Cell Means Multiple Comparisons ................................... 77
Table 29 - Hypotheses Summary ...................................................................................... 80
Table 31 - Literature Review Table .................................................................................. 92
Table 32 - Reliability Statistics ....................................................................................... 101
Table 33 - Outliers Analysis: Observations farthest from the centroid (Mahalanobis
distance) .................................................................................................................. 103

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LIST OF FIGURES
Figure 1 - US Digital Ad Spending By Format, 2011 - 2017 ............................................. 1
Figure 2 - Total Media Ad Spending 2011 - 2017 .............................................................. 2
Figure 3 - US Digital Video Ad Spending .......................................................................... 3
Figure 4 - Experimental Groups ....................................................................................... 27
Figure 5 - User Control Example ...................................................................................... 29
Figure 6 - Two Way Communication Example ................................................................ 30
Figure 7 - Beginning of Experiment ................................................................................. 32
Figure 8 - Experiment Introduction .................................................................................. 33
Figure 9 - Experiment Video ............................................................................................ 34
Figure 10 - Experiment Questions .................................................................................... 35
Figure 14- Involvement Cell Mean Line Graph ............................................................... 64
Figure 15 - Ad Recall Cell Mean Line Graph ................................................................... 66
Figure 16 - Attitude Towards Website Cell Mean Line Graph ........................................ 69
Figure 17 - Attitude Towards the Ad Cell Mean Line Graph ........................................... 71
Figure 18 - Attitude Towards the Brand Cell Mean Line Graph ...................................... 73
Figure 19 - Purchase Intention Cell Mean Line Graph ..................................................... 75
Figure 20 - Normality Analysis ...................................................................................... 100

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CHAPTER 1: INTRODUCTION AND STATEMENT OF PROBLEM
Introduction:
The online advertising industry is currently experiencing exploding growth. Just a
few short years ago in 2009, digital ad spending was only $22.7 billion dollars. In 2010,
digital ad spending surpassed newspaper advertising for the first time ever with $25.8
billion in spending compared to $25.7 billion for newspaper (Hallerman 2010). As
Figure 1 illustrates, digital ad spending is currently estimated to be around $42.3 billion
and revenues are expected to rise to around $61.4 billion by 2017.
Figure 1 - US Digital Ad Spending By Format, 2011 - 2017

Digital ad spending currently accounts for about 25% of total media ad spending,
which is estimated at about $171.01 billion (eMarketer, 2013). Television still remains
the leader of paid advertising and will be for the foreseeable future, but its percentage of
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