An Integrated Review of the Efficacy of Internet Advertising: Concrete Approaches to the Banner Ad Format and the Context of Social Networks

Abstract

Advertising investment on the Internet is currently growing at a faster rate than in all other means of communication. Specifically, companies' integrated marketing communications (IMC) are using the Internet as a main means of advertising and, increasingly, social networks as part of their communication strategies. Given their growing importance, this chapter performs an exhaustive theoretical analysis of the efficacy of online advertising. First, we perform a detailed inventory of the main forms of advertising used on the Web and social networking sites. Afterward, we analyze the variables shown, through literature, to be most influential on online advertising effectiveness, paying special attention to the banner ad format. Next, the topic of advertising effectiveness in the specific context of social network sites is discussed. In conclusion, some relevant implications for practitioners and research opportunities are presented.