活動起日：2017-12-20 發佈日期：2017-12-15 瀏覽數：1124 2017-12-15 更新
講者：Prof. Ian Ho
Title: Distance and Competition in Location-based Advertising
Mobile location-based applications rapidly and profoundly changes consumer experiences on the one hand and redefines business models nowadays on the other. Knowing the precise locations of consumers creates a great opportunity for local businesses to perform efficient location-based advertising. This paper studies a unique setting of location-based advertising, namely geofencing. In the action of geofencing, setting a virtual geographic boundary surrounding her establishment, a local advertiser can send marketing messages to the consumers physically located in the virtually-fenced zone. We examine click and conversion performance in geofencing campaigns using a unique data set of the bids in real-time auctions and the impressions from one of the largest location-based advertising agency in the United States. The empirical analysis focuses on the impact of distance (between consumer and advertiser establishment) and competition (between advertiser and other local businesses) on geofencing, while controlling for consumer, publisher and device characteristics. The results suggest that competition matters at the click stage, while distance influences the likelihood of conversion. Quantitatively, having one more competitor in the geofence zone of the advertisers’ location decreases the click-through rate by 3.6%, whereas the conversion rate drops by 30.2% if the advertiser’s store is one more mile further away. We also find a significant interaction effect between distance and competition, whereby a greater degree of micro-competition in the geofence zone amplifies the negative effect of distance on the likelihood of conversions. Put together, the results have important implications for advertiser bidding strategy and design of marketing offers.
Dr. Yi-Jen (Ian) Ho is an assistant professor of Supply Chain and Information Systems at the Smeal College of Business, Pennsylvania State University. He received his Ph.D. in Information Systems at The Paul Merage School of Business at The University of California, Irvine. He is mainly interested in understanding the impacts of information technologies on consumer choice. His current research focuses on the areas of social media, mobile and location-based technologies in digital markets.