How does advertising salience impact conversion rates? The mediating role of consumer engagement

• Main Author: CHENG, Yu
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Advertising Salience; Conversion Rates; Consumer Engagement; Market Share; Marketing
• Online Access: https://ink.library.smu.edu.sg/etd_coll/531; https://ink.library.smu.edu.sg/context/etd_coll/article/1529/viewcontent/GPBA_AY2016_DBA_Cheng__Yu.pdf
• Institution: Singapore Management University

Previous studies have mainly analyzed the relationship between advertising salience and conversion rates using subjective data from questionnaires or experiments. However, existing researches have not provided a clear explanation of how advertising salience affects conversion rates. In contrast to the existing literature, this study utilizes objective data from advertising agencies and establishes a mediation model to investigate how advertising salience influences conversion rates in news feed advertising. Empirical research shows that consumer engagement serves as a mediating variable between advertising salience and conversion rates, while market share, regional marketization level, and regional income level play moderating roles in the relationship between advertising salience and conversion rates. The mediation model presented in this study provides a better understanding of the underlying mechanism through which advertising salience affects conversion rates. This research not only contributes to the existing literature on the relationship between advertising salience and conversion rates but also offers practical recommendations for advertisement placements on website platforms. The strength of this research in terms of data is mainly reflected in the fact that this paper uses objective data from head clients in the e-commerce, financial and social sectors who are in the middle of their projects, and the data spans up to one year, so the richness and objectivity of the data ensures that the conclusions are more reliable. Moreover, experimental methods are employed to further test the research hypotheses, resulting in consistent results.