Consumers’ responses to native vs. banner advertising: moderation of persuasion knowledge on interaction effects of ad type and placement type

ABSTRACT

Applying advertising contextual theory, we examined the conditions under which native advertising embedded in a news website was more effective. With the use of college students (n = 189), a 2 (type of ad: native vs. banner) × 2 (type of ad placement: solo vs. duo) × 2 (persuasion knowledge: high vs. low) online experimental design was employed. In the solo condition, native advertising was evaluated more favorably than banner advertising in perceived fit, ad credibility, brand attitudes and click intention. Significant interaction effects between ad type and placement type were found on all dependent variables, with native advertising showing a significant decrease in duo (vs. solo) placement. These interaction effects appeared to be more pronounced for consumers with high persuasion knowledge, confirming its moderating role. Theoretical and managerial implications were discussed regarding the strategic placement of native advertising in news websites.

KEYWORDS:

• Media contextual effects
• native advertising
• banner advertising
• advertising placement
• persuasion knowledge

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Seunghyun Kim

Seunghyun Kim is a PhD candidate in Gaylord College of Journalism and Mass Communication at the University of Oklahoma. His research focuses on consumers' cognitive and emotional processing of native advertising, digital media, and health communication.

Seounmi Youn

Seounmi Youn (PhD, University of Minnesota) is an associate professor in the Department of Marketing Communication at Emerson College in Boston, MA. Her research interests focus on consumers' information processing of marketing communication, social media advertising, and youth and digital media. She has published papers in Journal of Computer-Mediated Communication, Cyberpsychology, Behavior, and Social Networking, Journal of Consumer Affairs, Journal of Advertising Research, International Journal of Advertising, Psychology & Marketing, Journal of Broadcasting & Electronic Media, and Communication Research, among others.

Doyle Yoon

Doyle Yoon (PhD, University of Missouri - Columbia) is an associate professor in the Gaylord College of Journalism and Mass Communication at the University of Oklahoma. His research interests are brand experience, electronic relationship management, and virtual reality advertising. His works published in the Journal of Communication, Psychology & Marketing, Journal of Interactive Advertising, Journal of Marketing Communication, among others.