And Now, A Word from Our Sponsor--A Look at the Effects of Sponsored Content and Banner Advertising

Sponsored content can be an effective advertising tool to engender positive response toward an advertiser and increase feelings of customer responsiveness, product quality, category leadership, and even purchase intention.

Abstract

Abstract As the number of Internet users increases daily, Internet advertising grows in importance as one of the elements of the communications mix. Because of the controversy surrounding the effectiveness of banner advertising, many companies are seeking alternative formats for capturing on-line consumers. Through two studies, this research provides an empirical investigation of the effects of banner advertising and sponsored content on Web site communities and their advertisers.The studies demonstrate that Web communities and advertisersboth benefit from sponsored content. Specifically, sponsored content can be an effective advertising tool to engender positive response toward an advertiser and increase feelings of customer responsiveness, product quality, category leadership, and even purchase intention. In addition, there is evidence that these types of messages are processed differently, indicating to communications managers that program objectives should drive the decision as to whether sponsored content, banner advertising, or some combination of the two will be most effective.