Quantifying the indirect effects of a marketing contact

Dingxi Qiu*, Edward C. Malthouse

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

The Internet banner advertising has become an important marketing channel in recent years. There is a strong demand in the industry to quantify the expected return from a marketing contact. Contacts have both direct effects, such as a banner ad prompting the viewer to click and buy, and indirect effects, such as building awareness so that future exposures are more likely to result in a sale. While it is usually straightforward to track and model direct effects, models that fail to account for indirect effects produce inaccurate estimates of the contact value and allocate marketing resources inefficiently. Our research is based on a relational database for banner ads from a major American internet service provider, which records the complete information about the exposures, the clicks and the transactions. The indirect effect of marketing contacts is modeled with a decaying function of the time since the prospect gets into the system. Discrete survival analysis is used to estimate the marginal effects of each additional exposure. The approach is illustrated with a pedagogical example based on the estimates from the internet banner ad model.

Original languageEnglish (US)
Pages (from-to)6446-6452
Number of pages7
JournalExpert Systems with Applications
Volume36
Issue number3 PART 2
DOIs
StatePublished - Apr 2009

Keywords

  • Banner ads
  • Customer relationship management
  • Direct marketing
  • Marketing decision support systems
  • Online advertising
  • Survival analysis

ASJC Scopus subject areas

  • Engineering(all)
  • Computer Science Applications
  • Artificial Intelligence

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