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Engagement with Online Media and Advertising


Effectiveness

Article in Journal of Interactive Marketing · January 2009

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Journal of Interactive Marketing 23 (2009) 321 – 331


www.elsevier.com/locate/intmar

An Experimental Study of the Relationship between Online Engagement and


Advertising Effectiveness
Bobby J. Calder a , Edward C. Malthouse b,⁎ & Ute Schaedel c
a
Marketing Department, Kellogg School of Management, Northwestern University, USA
b
Department of Integrated Marketing Communications, Medill School of Journalism, Northwestern University, USA
c
Department of Media Management, Hamburg Media School, University of Hamburg, Germany

Abstract

We discuss consumer engagement with a website, provide a systematic approach to examining the types of engagement produced by specific
experiences, and show that engagement with the media context increases advertising effectiveness. Based on experiments using measurement
scales involving eight different online experiences, we advance two types of engagement with online media — Personal and Social-Interactive
Engagement. Our results show that both types are positively associated with advertising effectiveness. Moreover, Social-Interactive Engagement,
which is more uniquely characteristic of the web as a medium, is shown to affect advertising after controlling for Personal Engagement. Our
results offer online companies and advertisers new metrics and advertising strategies.
© 2009 Direct Marketing Educational Foundation, Inc. Published by Elsevier Inc. All rights reserved.

Keywords: Online advertising; Engagement; Consumer behavior; Context effects; Online media; Internet marketing

Introduction the ad such as the number of colors; and algorithms used to


place banner and sidebar ads do not consider consumer
Media provide a context for advertising that may affect “engagement” with the hosting site.
consumer responses to advertising. Many studies have There are many explanations for why consumer “engage-
investigated possible media context effects. The most general ment” with the surrounding media context is not considered
conclusion is that when consumers are highly “engaged” with a when making advertising decisions. One reason, as we will
media vehicle they can be more responsive to advertising (e.g., demonstrate in the next section, is that many practitioners and
Aaker and Brown 1972; Bronner and Neijens 2006; Coulter, academics do not agree on what “engagement” is. Making
1998; Cunningham, Hall, and Young 2006; DePelsmacker, matters worse, related terms such as “involvement” and
Geuens, and Anckaert 2002; Feltham and Arnold 1994; “experience” are also used in the academic and trade literatures
Gallagher, Foster, and Parsons 2001; Nicovich, 2005; Wang, without any consensus over whether or how they are different
2006). While this conclusion is not surprising, media buyers do from “engagement.”
not consider consumer “engagement” with a media vehicle in At the same time, advertisers are searching for ways to
their decisions, except in secondary, ad-hoc ways. For example, overcome the problems of ad clutter and avoidance (Cho and
the price of print advertising is determined by circulation, the Cheon 2004). Leveraging the media context is a potential
location of the ad within the publication and characteristics of solution since advertisers have (at least some) control over
where their ads appear and we know that context can affect
reactions to ads. Moreover, online media is gaining prominence
⁎ Corresponding author.
and spending on online advertising is growing at a rapid pace
E-mail addresses: calder@northwestern.edu (B.J. Calder), (Shankar and Hollinger 2007). It is important to better
ecm@northwestern.edu (E.C. Malthouse), understand how engagement is related to the effectiveness of
u.schaedel@hamburgmediaschool.com (U. Schaedel). advertising in the context of online media.
1094-9968/$ - see front matter © 2009 Direct Marketing Educational Foundation, Inc. Published by Elsevier Inc. All rights reserved.
doi:10.1016/j.intmar.2009.07.002
322 B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331

The contribution of this paper is twofold. First, we define the site (see Fig. 1). Consumer engagement with a website is a
consumer engagement with a website and its relationship to collection of experiences with the site.
online experiences. As summarized below, other work has We define an experience as a consumer's beliefs about how a
explored distinct online experiences and related concepts. This site fits into his/her life. For example, content can be engaging
article conceptualizes engagement as a second-order construct because users have a utilitarian experience with it. That is, they
that is manifested in various first-order “experience” constructs. believe that the site provides information to help them make
We theorize that our engagement construct is causally related to important decisions and accomplish something in their lives.
consumer responses to online advertising. Second, we develop Other content can be engaging because it provides users with an
measures of engagement and test our theory by evaluating intrinsically enjoyable experience, enabling them to unwind and
whether these measures are associated with consumer evalua- escape from the pressures of daily life.
tions of a banner advertisement. We close with a discussion on To be engaging, different sites need not deliver the same
how understanding engagement can help the online firms experiences. Some sites could be engaging because they provide
manage their sites and advertisers improve the effectiveness of high levels of a utilitarian experience while other sites could be
their ads. engaging because they are intrinsically enjoyable. Experiences
are not necessarily mutually exclusive and some content could
Engagement, experiences, and advertising effectiveness engender high levels of multiple experiences. It is necessary to
realize that there is more than one path to engagement and that
What is engagement? the different paths are realized by offering different experiences.
Consider, for example, the travel section of www.nytimes.com.
Most people know what “engagement” with media feels like. Some articles could engage readers by creating a utilitarian
Those who are “engaged” with, for example, a television experience, where the reader believes the articles give useful
program or website have a certain connection with it and advice about what to do and where to stay at certain destinations.
probably view or visit it often. But it is difficult to define the Other articles could be engaging because they offer intrinsic
concept of engagement beyond loose descriptions such as enjoyment. A narrative story about some travel adventure could
feeling a connection and using it often. relax readers and “transport” them to a different place and not
We begin with what engagement is not. Our conceptualiza- provide utilitarian “how-to” detail. Similarly, different con-
tion of engagement is different from others who have sumers could have different experiences with the same content.
characterized it in ways that we regard as consequences of In the language of measurement models, experiences are
engagement. Marc (1966), for example, defines engagement as first-order constructs while engagement is a second-order
“how disappointed someone would be if a magazine were no construct. We shall use the term experience whenever we
longer published.” Syndicated market research often asks refer to a specific set of consumer beliefs about a vehicle such as
whether a publication is “one of my favorites,” whether a utilitarian or intrinsic enjoyment, and the term engagement
respondent would “recommend it to a friend” or is “attentive.” whenever we refer to the overall experiences of a vehicle.
Many equate engagement exclusively with behavioral usage.
That is, they define “engaged” people as those who visit the site Online experiences
often, spend substantial time on the site, or have many page
views. The Advertising Research Foundation (ARF) gives the It follows from the above discussion that we need to
definition “media engagement is turning on a prospect to a determine the first-order experiences before we can measure
brand idea enhanced by the surrounding context” (ARF, 2006). this second-order construct of engagement. There are many
Clearly “engagement” has many different meanings. independent streams of research examining consumers'
We argue that all of the meanings discussed above are
consequences of engagement rather than engagement itself. It is
engagement with a website that causes someone to want to visit
it, download its pages, be attentive to it, recommend it to a
friend, or be disappointed if it were no longer available.
Likewise, researchers have known for years (see citations in
Introduction) that the media context can “turn on” a prospect to
some advertised brand, but again, this is a consequence of
engagement. Engagement is antecedent to outcomes such as
usage, affect, and responses to advertising.
To think about what engagement really means, let us return
to the basic notion of a sense of being connected with
something. We feel this intuition is essentially correct, but
needs elaboration to be useful. The fundamental insight is that
engagement comes from experiencing a website in a certain
way. To understand engagement we need to understand the
different experiences that consumers have in connecting with Fig. 1. Engagement and its consequences.
B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331 323

experiences online and with media in general. While there is experienced differently than more traditional media such as
substantial overlap between the experiences posited by the television and print. This difference is often described as
different streams, unfortunately they are not entirely consistent. “leaning forward” versus “leaning backward.” The online
Certain experiences exist in some frameworks but not others. experience is thought to be more active, participatory and
Among the experiences that consistently exist in multiple interactive. The internet is also thought to be more social in
frameworks, there are often subtle differences in the way in nature because it can be used for sharing and communicating
which they are conceptualized. In some cases, multiple and it therefore breeds social engagement (Mathwick 2002;
experiences under one framework are subsumed by a single Rappaport 2007). Ruggiero (2000, p. 15) highlights the need
experience of another. to include “interactivity” in U&G framework. Previous
Uses and gratifications (U&G) theory (sometimes called an studies have tended to focus on this experience at a high
“approach” rather than a theory) provides a functionalist level or for specific applications. For example Thorbjørnsen
explanation of why people use media and has been an active et al. (2002) examined the overall amount of experience
area of research within communications since the 1940s (e.g., people have with the web but deal only with the level of
see Ruggiero 2000 for a recent survey). The U&G literature is experience and not the nature of that experience. Nambisan
vast; McQuail (1983, pp. 82–3) gives a concise summarization and Baron (2007) discuss an “interaction experience” in
that is often cited: virtual customer environments. Tremayne (2005) addresses
the meaning of “interactivity” and concludes that it can be
• “Information — finding out about relevant events and viewed either as a process of message exchange or as a
conditions in immediate surroundings, society and the world; perceptual variable. Others have studied interactivity in the
seeking advice on practical matters or opinion and decision form of word of mouth (e.g., Brown et al. 2007; Dwyer 2007;
choices; satisfying curiosity and general interest; learning, Sen and Lerman 2007). Prahalad and Ramaswamy (2004) and
self-education; gaining a sense of security through Sawhney et al. (2005) discuss the co-creation experience.
knowledge. It is unnecessary for purposes of this article to sort out
• Personal identity — finding reinforcement for personal differences in the ways that various frameworks have
values; finding models of behavior [sic]; identifying with conceptualized experiences because, for the purpose of
valued others (in the media); gaining insight into one's self. measuring engagement, all we need is a set of experiences
• Integration and social interaction — gaining insight into the that can serve as indicators of the engagement construct domain.
circumstances of others; social empathy; identifying with No set of indicators would be exhaustive of this domain but this
others and gaining a sense of belonging; finding a basis for is not required from a measurement point of view.1 Our
conversation and social interaction; having a substitute for approach is to develop scales for a representative set of
real-life companionship; helping to carry out social roles; experiences that parallel those noted in the literature. We shall
enabling one to connect with family, friends and society. then factor analyze the experience measures and test whether
• Entertainment — escaping, or being diverted, from they could plausibly be manifestations of a second-order
problems; relaxing; getting intrinsic cultural or aesthetic engagement construct or constructs. The above discussion
enjoyment; filling time; emotional release; sexual arousal.” indicates that websites may deliver different types of experi-
ences than traditional media, as characterized by the four
The utilitarian experience discussed above is an example of McQuail (1983) U&G aspects.
information in the U&G framework and the intrinsic enjoyment
experience is an example of entertainment. Engagement and advertising effectiveness
U&G approaches have been used in interactive marketing.
For example, Nambisan and Baron (2007) applied a variation The conceptual framework (Fig. 1) posits that engagement
of the U&G constructs to explain virtual customer environ- and experiences are antecedent to reactions to ads. We seek to
ments with four experiences: cognitive, social integrative, test this relationship as an indicator of the predictive validity
personal integrative, and hedonic. Bronner and Neijens (2006) of our measures. There has been relatively little previous
measure eight experiences that are consistent with the U&G research on the impact of the online media context on
approach: practical use, social, identification, pastime, trans- advertising. Existing studies have approached this at either a
formation, stimulation, information, and negative emotion.
1
Childers et al. (2001) discuss utilitarian and hedonic (a type of The question arises of whether to treat experiences and engagement as
“entertainment” in the U&G approach) experiences as formative or reflective. We follow Jarvis, Mackenzie, and Podsakoff's (2003)
criteria for making the decision. We treat both as reflective (a Type I second-
explanations of online shopping behavior. The same approach order factor specification in the language of Jarvis, Mackenzie, and Podsakoff).
is also followed by Fiore et al. (2005) and Cotte et al. (2006). In the case of experiences, the items are manifestations of some experience, are
Flow is another construct that has received substantial attention interchangeable, and should covary. The items we have used represent a sample
(e.g., see Hoffman and Novak 2009) and is consistent with the from the respective construct domains, e.g., there are many ways that a person
U&G approach of understanding the consumer experience with can have a utilitarian experience and different items could represent the
construct domain equally well. Thus, experiences are reflective according to the
media. Jarvis et al. framework. We also think of engagement as a reflective construct
Media engagement is particularly interesting in the case because we view experiences as manifestations of engagement (reflective)
of websites. It is commonly thought that online media are rather than as “defining characteristics” (formative).
324 B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331

very high level or very specifically. To wit Bronner and could be used as indicators of engagement. Ideally these scales
Neijens (2006) compare the experiences of different types of should produce an acceptable fit in a measurement model and
media with the experiences of advertising content. They find, have good psychometric properties such as acceptable reliabil-
for instance, that the experience of usefulness with a site is ity and convergent and discriminant validity. We are unaware of
related to the ads on that site being experienced as useful. any previous studies of online experiences that measure such a
And Wang (2006) finds in the context of an online game that broad range of experiences with these high standards.
an online ad inviting users to play a game was more effective The present study uses the Calder–Malthouse (CM) set
than an ad that did not, suggesting that the game-ad might of media experiences (Calder and Malthouse 2004, 2005;
have benefited from the game context. Previous work has also Malthouse, Calder, and Tamhane 2007). We briefly summarize
focused specifically on the use of interactivity in online ads their methodology and argue that these experiences span the
(e.g., Ariely 2000; Chatterjee, Hoffman, and Novak 2003; engagement domain. CM conducted over 400 hour-long, in-
Pavlou and Steward 2000). Hupfer and Grey (2005) test the depth interviews with consumers about the role that specific
effect of the offer (e.g., whether there is a free sample) and websites, newspapers, magazines, and TV news programs play
user mode (e.g., goal-directed) on attitudes towards the brand in their lives. They analyzed the transcripts for common themes
and ad. and created hundreds of Likert-scale items. The items were
There are several theoretical explanations for why engage- included on surveys of website visitors, newspaper and
ment should affect reactions to advertising including affect magazine readers, and TV news viewers. Exploratory factor
transfer (e.g., Broniarczyk and Alba 1991, p. 215) and analysis identified 22 online experiences, 44 newspaper
categorization theory (Cohen and Basu 1987). Dahlén (2005) experiences, 39 magazine experiences, and 12 TV news
does a literature review of media context effects and experiences. The values of coefficient alpha suggested that
summarizes three possible theoretical rationales for why context most of the scales were reliable (some had weak reliability
should affect reactions to ads. The first is the mood because of too few items). None of the CM studies estimate
congruency–accessibility hypothesis: “The ad context makes confirmatory factor analysis models. Some experiences are
a certain mood or affect more accessible and relieves the common across media, while others are specific to a particular
processing of stimuli with similar moods or affects (p. 90).” The medium (e.g., media websites). CM also showed that their
second is the congruity principle: “the medium and the experiences are associated with usage (site usage, readership,
advertised brand converge and become more similar in and viewership) and, in the case of magazines, reactions to
consumers' minds (p. 90).” The third is that the context serves advertising.
as a cognitive prime that “activates a semantic network of In this research we had to select eight experiences from the
related material that guides attention and determines the 22 CM online ones, due to constraints on survey length and
interpretation of the ad (p. 90).” It should be noted that these respondent fatigue. Requiring our experience measures to have
explanations are not alternative explanations but rather all of an acceptable fit in a measurement model also limits the number
them are plausible mechanisms for how media context can of experiences that we can include.2 In reviewing the original 22
affect advertising. They lead us to formally hypothesize: “experiences,” we decided that some did not fit in the construct
domain because they describe the site itself rather than how the
Hypothesis 1. Engagement with the surrounding online media
site fits into the consumer's life. For example, one of the
vehicle context increases advertising effectiveness.
“experiences” was about credibility of the site and another was
about the site being easy to use. Several experiences were also
Methods and results dropped because they were specifically about the advertising on
the site.
Our methodology consisted of several steps, each of which The eight experiences and their items are displayed in Table 1.
will be discussed in this section. The first step was to select They were selected with a stratified sampling procedure from the
scales to measure experiences that span the construct domain remaining experiences so that there would be at least one from
and provide indicators of engagement. Next we executed a each of the four McQuail U&G categories (the strata) that
survey that employed the scaling measures of experiences and a characterize more traditional media, and others, such “commu-
quasi-experimental design to evaluate advertising effectiveness. nity” and “participation and socializing,” that are particularly
The survey data allowed us to evaluate the psychometric relevant to online media. We tried to avoid picking too many
properties of our experience scales and engagement by experiences from any single McQuail U&G category. For
estimating a confirmatory factor analysis measurement model example, two of the remaining experiences fit under McQuail's
for the experience scales and then a second-order factor model information category: “makes me smarter,” which is about
for engagement. The final step was to test the research keeping people up-to-date on issues that concern them, and
hypothesis that engagement increases ad effectiveness. “utilitarian,” which is more about advice and “how-to”
information. Using the flip of a coin we decided to include
Selecting experience scales utilitarian. Likewise, the original CM experiences “intrinsic

As indicated, to accomplish the objectives of this study, we 2


Hatcher (1994, p. 260) recommends using “a maximum of 20–30 indicator
needed measurement scales for a set of online experiences that variables” in a measurement model and we will use 37.
B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331 325

Table 1 enjoyment,” “entertains and absorbs me” and “a way to fill my


Question wording and parameter estimates from confirmatory factor analysis time” all fit under McQuail's entertainment category and we
measurement model.
selected the first (at random). The “social facilitation”
Experience Item Stand. experience was selected as a representative of McQuail's
loading
integration and social interaction category. The “self-esteem
Stimulation and It inspires me in my own life. .85 and civic mindedness” experience represents the personal
Inspiration(α = .88) This site makes me think of things in new .84
identity category.
ways.
This site stimulates my thinking about lots .78 We claim that these eight experiences are representative of
of different topics. the engagement construct domain. Of course, other sets could
This site makes me a more interesting person. .79 also represent the domain, but our approach is entirely
Some stories on this site touch me deep down. .71 consistent with our objective of developing indicators of
Social Facilitation I bring up things I have seen on this site in .85
engagement. For example, we would not expect our engage-
(α = .88) conversations with many other people.
This site often gives me something to talk .85 ment measure to change in a substantive way if we had used
about. “makes me smarter” rather than “utilitarian” from the
I use things from this site in discussions or .81 information category.
arguments with people I know.
Temporal (α = .90) It's part of my routine. .85
Survey methodology
This is one of the sites I always go to .83
anytime I am surfing the web.
I use it as a big part of getting my news for .84 The second step was to sample users of media websites.
the day. Eleven online media websites were used in the present
It helps me to get my day started in the .80 confirmatory study.3 These sites represent a convenience
morning.
sample, but include broad range of different types of media
Self-Esteem and Civic Using this site makes me feel like a better .86
Mindedness (α = .91) citizen. sites including those with national reputations (e.g., Reuters.
Using this site makes a difference in my life. .85 com and Washingtonpost.com), special interest sites (e.g.,
This site reflects my values. .76 about.com) and local sites (e.g., king5.com). The target
It makes me more a part of my community. .75 population, identified with a screening question, was people
I am a better person for using this site. .88
who used the site at least once a month. Subjects were recruited
Intrinsic Enjoyment It's a treat for me. .83
(α = .87) Going to this site improves my mood, makes .85 from the visitors on the particular sites, who were redirected to
me happier. an online survey. The sample sizes for the 11 sites ranged from
I like to kick back and wind down with it. .82 n = 203 to n = 2006, with a median sample size of n = 1141 and a
I like to go to this site when I am eating or .65 total sample size of n = 11,541. Respondents were asked about
taking a break.
While I am on this site, I don't think about .71
their usage and experiences with the particular site.
other sites I might go to.
Utilitarian (α = .88) This site helps me make good purchase .81 Measurement models for experiences and engagement
decisions.
You learn how to improve yourself from this .83 We develop measures of online engagement using a two-step
site.
process. First, we estimate a confirmatory factor analysis
This site provides information that helps me .76
make important decisions. measurement model to study the psychometric properties of our
This site helps me better manage my money. .81 experience measures. Second, we develop second-order en-
I give advice and tips to people I know based .74 gagement factors by applying exploratory factor analysis to the
on things I've read on this site. eight experiences and then fitting a second-order confirmatory
Participation and I do quite a bit of socializing on this site. .86
factor analysis model.
Socializing (α = .88) I contribute to the conversation on this site. .77
I often feel guilty about the amount of time I .82 The first step in developing the online engagement measures
spend on this site socializing. is to estimate a measurement model for the experiences,
I should probably cut back on the amount of .78 allowing each possible pair of experiences to be correlated. Fit
time I spend on this site socializing. statistics are provided in Table 2. Question wording, factor
Community (α = .88) I'm as interested in input from other users as .84
loadings, and the values of coefficient alpha are provided in
I am in the regular content on this site.
A big reason I like this site is what I get from .85 Table 1. There were 37 items used to measure the 8 experiences.
other users. All eight scales are highly reliable, with coefficient alpha
This site does a good job of getting its .59 ranging from .87 to .91. In the measurement model, each of
visitors to contribute or provide feedback. the 37 items had a parameter fortheloading and error variance
I'd like to meet other people who regularly .80
8
visit this site. (37 + 37 = 74), and there were = 28 parameters for the
I've gotten interested in things I otherwise .73 2
wouldn't have because of others on this site.
Overall, the visitors to this site are pretty .66 3
The sites are about.com, Washingtonpost.com, PalmBeachPost.com,
knowledgeable about the topics it covers so
Reuters.com, DallasNews.com, Projo.com, King5.com, AZFamily.com,
you can learn from them.
WFAA.com, KHOU.com, and PE.com.
326 B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331

Table 2 less correlated with the first six, but moderately correlated with
Summary of confirmatory factor analysis model. the Community experience (8). Community is somewhat less
Measurement model Second-order CFA model correlated with the first six experiences. This correlation
Parameters 102 87 structure suggests that there is a higher-order factor structure
GFI .9155 .9029 generating the data.
CFI .9482 .9392 Therefore the second step in developing the measurement
NNFI .9426 .9343
model is to identify the second-order engagement factors. To do
RMSEA .0472 .0505
this we did both an exploratory and a confirmatory factor
Note. n = 5942 with 37 items.
analysis. We performed an exploratory factor analysis with a
varimax rotation on the first-order experiences and found two
eigenvalues greater than 1. The rotated factor loadings are
covariances between every pair of experiences, giving a total of provided in Table 4 and show two interpretable factors,
102 parameters. GFI, CFI, and NNFI all exceed .90, indicating hereafter called Personal Engagement and Social-Interactive
an acceptable fit. Engagement. The first six experiences from the correlation
Convergent validity was assessed with the t-values of the matrix have the largest loadings on Personal Engagement,
factor loadings, computed as the ratio of the loading to the although Community also has a cross-loading greater than .3.
standard error of the item. Convergent validity is supported Participation and Socializing as well as Community have the
when t-values reach an absolute value greater than 2. The largest loadings on Social-Interactive Engagement, but several
minimum t-value was 48.2, providing evidence in support of other experiences have sizable cross-loadings. The Utilitarian
the convergent validity of the indicators. We assess discrim- experience likely cross-loads on Social-Interactive Engagement
inant validity with the chi-square difference test. For each of because much of the advice and tips could be coming from the
the 28 pairs of experiences we estimated a separate community of users rather than from content created by
measurement model identical to the one shown in Table 2, employees of the site itself. Self-esteem likely cross-loads
except that the covariance between the pair is fixed at 1. The because contributing to an online conversation could contribute
chi-square statistics between the models were computed, and to one's self-esteem.
range from 4132 to 12,073. The differences have chi-square We then estimated a second-order confirmatory factor
distributions with 1 df, and are very highly significant, model, which is a more parsimonious model for the 37 × 37
supporting discriminant validity. covariance matrix than the measurement model for experiences.
Pearson correlations between the experiences are provided in The objective was to test whether it is plausible that the Personal
Table 3. Note that the correlations follow a pattern that suggests and Social-Interactive Engagement latent variables generate the
the possibility of second-order factors. The first six experiences observed correlation structure between the experiences and
are moderately correlated with each other, with values between items. Personal and Social-Interactive Engagement will be used
.42 and .72. Participation and Socializing (7) is substantially in the subsequent analyses of advertising effectiveness. Instead
of having 28 covariances between the experiences, we assume
that correlations between the experiences are due to two second-
Table 3 order factors. This model can represent the correlations between
Correlation matrix (treatment group only). the experiences with only 12 factor loadings shown in Table 4
Pearson correlation
above, and one additional term for the covariance between the
second-order factors. Fit statistics are also shown in Table 2
1 2 3 4 5 6 7 8 9 10
above, with CFI, GFI, and NNFI all greater than .9 suggesting a
Experience good fit. Fig. 2 shows the parameter estimates of the second-
1 Stimulation and
Inspiration
2 Social Facilitation .56
3 Temporal .51 .55 Table 4
4 Self-Esteem and Civic .65 .57 .47 Exploratory factor analysis loadings of first-order experiences.
Mindedness
Experience Factor 1 Factor 2
5 Intrinsic Enjoyment .65 .52 .62 .63
Personal Social-
6 Utilitarian .62 .52 .42 .72 .58
Engagement Interactive
7 Participation and .24 .19 .19 .29 .33 .35
Socializing Social Facilitation .768
8 Community .51 .41 .32 .53 .53 .59 .56 Temporal .753
Engagement Stimulation and Inspiration .744
9 Personal Engagement .79 .75 .78 .82 .81 .71 .32 .51 Self-Esteem and Civic .710 .375
10 Interactive .52 .43 .43 .69 .61 .67 .77 .77 .74 Mindedness
Engagement Intrinsic Enjoyment .701 .366
Advertising Utilitarian .612 .472
11 Click Intention .24 .19 .15 .25 .23 .27 .12 .23 .27 .26 Participation and Socializing .881
12 Attitude Towards Ad .30 .23 .19 .31 .29 .31 .14 .27 .34 .32 Community .361 .755
Note. All correlations are significantly different from 0 at the .0001 level. Note. Loadings less than .3 were omitted.
B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331 327

order factor structure. The loadings for the 37 items were very papers while Social-Interactive Engagement is more specific to
similar to those from the measurement model above and have websites. As reflected the loadings in Fig. 2, with Personal
been omitted. Note that the second-order factor model finds a Engagement, users seek stimulation and inspiration from the
significant correlation between the two engagement latent site, they want to use the site to facilitate their interactions with
variables. In the analyses that follow, we estimate the two other people, they feel the site affirms their self-worth, they get
engagement factors using a weighted average of the experi- a sense of intrinsic enjoyment in using the site itself, they feel it
ences, with the factor loadings as weights. is useful for achieving goals, and they value input from other
Personal Engagement is manifested in experiences that are users. With Social-Interactive Engagement, users experience
similar to those that people have with newspapers and some of the same things in terms of intrinsic enjoyment,
magazines. For example, experience items such as “This site utilitarian worth, and valuing the input from the larger
makes me think of things in new ways” or “This site often gives community of users but in a way that links to a sense of
me something to talk about” could also apply to a newspaper or participating with others and socializing on the site. Thus
magazine. Social-Interactive Engagement, however, is more Social-Interactive Engagement is motivated both intrinsically
specific to websites. Items such as “I do quite a bit of socializing and extrinsically, but in this case it is the social relevance of
on this site” and “I contribute to the conversation on this site” these, rather than their personal or individual quality, that is
would not characterize a newspaper or magazine, and we did associated with the larger engagement experience. And it is the
not hear such statements in our qualitative interviews for these valuing of input from the community and sense of participating
media. While Social-Interactive Engagement is more closely with others and socializing that gives Social-Interactive
associated with the web, aspects of it can be found for other Engagement its dominant character.
media. For example, “A big reason I like this site is what I get
from other users” could also apply to the letters-to-the-editor The relationship between engagement and advertising
page of a daily newspaper. The Utilitarian experience is a effectiveness
manifestation of both forms of engagement. Service oriented
websites (e.g., bhg.com — Better Homes and Gardens) will We now test the hypothesis (H1) that engagement predicts
have a prominent utilitarian component as will user-contributed ad effectiveness. Users of the 11 media websites were
advice sites (e.g., Yahoo!Answers or chowhound.com). intercepted during their visit to the site and asked to complete
In sum, the measurement model and values of coefficient a survey. Participants answered questions about their use of,
alpha have shown that the eight experiences have been and experiences with, this website. They were then shown an
measured reliably and support the convergent and discriminant ad for orbitz.com (an online travel agency) and asked to rate
validity of the scales. The second-order analysis shows it using standard copy-testing measures and their intention to
two engagement factors, Personal Engagement and Social- click on the ad. A travel agency was used because travel is
Interactive Engagement. Personal Engagement is manifested in potentially relevant to most internet users and this category
experiences that have counterparts in magazines and news- often advertises with banner ads. We shall relate engagement

Fig. 2. Second-order factor structure.


328 B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331

and experiences with the media to these ad ratings as a test of Table 5


predictive validity. Estimates from separate models including context-free control group.
Note that participants were intercepted while actually Experience Attitude Intention to
visiting the site, though they did not actually see the ad on the toward ad click
site. This manipulation of media context is not the same as β3 γ β3 γ
encountering the ad while actually on the site but actually Stimulation and Inspiration .63 −.16 .67 −.19
provides a strong test of the hypothesis. If the site experiences Social Facilitation .42 −.11 .44 −.12
affect reactions to the ad in this test, the effect would be Temporal .32 −.09 .32 −.08
Self-Esteem and Civic Mindedness .61 −.27 .62 −.27
expected to be, if anything, smaller than in the case of actually
Intrinsic Enjoyment .56 −.06 .60 −.04
seeing the ad on the site. Utilitarian .62 −.15 .68 −.16
One threat to validity is that the mere measurement of the Participation and Socializing .60 −.12 .67 −.15
experiences of a given site might itself affect reactions to the ad. Community .29 −.18 .35 −.21
Whereas this would imply that all experiences would affect the Personal Engagement .81 −.20 .85 −.20
Social-Interactive Engagement .90 −.23 .99 −.27
ad equally, it is at least possible that some of the experiences
could be differentially sensitive to measurement (measure- Note. p b .05 marked in italic. p b .01 marked in bold.
ment × scale interaction). In this way, merely thinking about
how a site gives advice and tips could have produced a higher significant, indicating that higher experience and engagement
rating of the ad. Another threat is that any effect on advertising levels are associated with more ad effectiveness, supporting
is not due to experiences with a particular site context, but to H1.
experiences with sites in general (which are correlated with the Correlations, however, do not account for the different
particular site participants are told the ad is on). Alternatively, sites, control for confounding factors such as use of online
the different experiences individuals had with their site and the travel sites, or rule out measurement effects. We now conduct
responses to the ads in general could be construed as an a more stringent test of the relationship between the ad ratings
individual difference not dependent per se on using any and experiences/engagement by comparing the slopes of the
particular sites. To assess these threats we used a context-free treatment group (those who were told that the ad appeared on
control group design. The most important thing about the a specific site) and the context-free control group (those told
control group is that the ad was identified only as a banner and the ad was not linked to a site) using an ANCOVA model.
not linked to any particular site. The model includes a different, fixed-effect4 intercept for
Of the 11,536 intercepted on the 11 sites, 1502 were each site (αj for site j = 1, …, 11), a dummy x1 = 1 indicating
randomly assigned to the context-free control group, which the respondent was in the control group, a measure for the
was asked about their experiences with reading news sites in use of online travel agents in general x2, the engagement
general and told only that the ad was a banner. If any effects rating x3 (as a continuous variable on a 5-point scale), and an
of the experiences on the ad are due to simply rating the interaction term between experience rating and the control
experiences and/or thinking about sites in general while group dummy (x1x3):
taking a survey, then the control group should respond in a
similar way to those asked about a specific site. The treatment y = aj + b1 x1 + b2 x2 + b3 x3 + gx1 x3 :
group being different from the control group indicates that the The parameter β3 is the slope for engagement in the
results do not reflect mere measurement or experiences with treatment group, γ indicates how much larger or smaller the
sites in general but rather measure the effects of experiences engagement slope is in the control group compared with the
with specific sites. treatment group, and β3 + γ gives the slope for the control
We have two measures of “reactions to an ad.” First, we group. We can test whether the slopes in the treatment and
developed a multi-item scale to measure attitude towards the ad. control groups are different with H0: γ = 0.
Respondents were asked “How well does each of the following The model is estimated separately for each of the
words describe the ad in the [site name]?” The study included 8 experience and 2 engagement measures, with the results
the items “interesting, lively, helpful, believable, attractive, summarized in Table 5 below. Parameter estimates for the
imaginative, and soothing” (7-point scale from “Does not intercept terms α1, …, α11, β1, and the slope for product usage
describe the ad at all” to “Describes the ad very well”). These β2 are omitted in Table 6 for clarity.5 All of the treatment-group
items were selected to be typical of those that are commonly experience slopes β3 are positive and highly significant,
used to test reactions to advertising stimuli (see Bearden and
Netemeyer 1999, Chapter 5) and to fit the ad tested here. The
value of coefficient alpha was .93, indicating a reliable scale. As 4
Fixed effects are used rather than random since we have a convenience
a second, complementary measure of reactions to the ad, sample of sites.
respondents were asked: “How likely are you to click on this
5
In all models, the product usage variables have very highly significant
ad?” positive effects. Likewise, across models the extra sums of squares are large
and highly significant for the site intercepts, allowing us to reject the null
Correlations between the experience, the engagement hypothesis that all 11 sites have the same intercept. The control group dummy
factors, and the advertising variables are also provided in shifting the intercept (β2) is occasionally significant, but the signs change across
Table 3 above. All correlations are positive and highly models suggesting that the significant results could be type I errors.
B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331 329

Table 6 decisions. First, managing a website involves engineering a set


Estimates for the model with both types of engagement as predictors. of experiences for the visitors, and then measuring the extent to
Dependent Personal Social-Interactive Online travel which the visitors have the intended experiences. The scales
variable engagement Engagement agency use presented in this paper enable a website to track both
Attitude .536 (.033) .443 (.039) .106 (.006) experiences and higher-level engagement. Such measurements
towards ad could provide an early warning that the intended experiences
Intention to .479 (.043) .590 (.050) .244 (.008)
are not being created. Likewise, advertisers and online
click
companies that produce websites are searching for media-
Note. p b .05 marked in italic. p b .01 marked in bold.
neural metrics for the purpose of common-currency compar-
isons, e.g., a website with a print vehicle (Winer 2009).
consistent with the conclusions from the correlation matrix Engagement and experience metrics could serve this purpose.
above supporting H1.6 Second, some managers of advertising vehicles are using
Testing whether these results are due to measurement effects, engagement as a way to differentiate themselves from
the γ-values of both dependent variables and for both Personal competitors and retain advertisers. Their basic argument is as
and Social-Interactive Engagement are highly significant, follows: highly engaged readers are more likely to be exposed
indicating that engagement has a stronger effect on ad ratings to ads; ads carried by vehicles with more engaged readers will
when the respondent associated an ad with a particular site, and therefore be more effective; and a vehicle with highly engaged
supporting H1 from above. The γ-values for most, but not all, readers should command a premium price for advertising space,
of the individual experiences are also significant. As we or at least have an advantage in retaining advertisers. Our
indicated above, the manipulation of media context is relatively research supports this reasoning and practice.
weak, and the effect sizes γ might well be larger if respondents
were actually experiencing the particular site when they were Conclusion and future research
exposed to the ad.
Having established that both types of engagement are It is commonly believed that the web is different from
associated with advertising effectiveness, we now examine other media in terms of leaning forward instead of backward,
whether Social-Interactive Engagement affects reactions to ads being more interactive, more social, and so forth. In this
after controlling for Personal Engagement by including both in research, we identified and measured eight different types of
the model, as well as use of online travel agents in general (x2) consumer experiences with online news websites and showed
and separate, fixed-effect intercepts for individual sites.7 We that the measures are reliable with high discriminant,
shall use only the treatment group in this analysis. The results convergent and predictive validity. Based on a factor analysis
are summarized in Table 6. The coefficients for both types of of the eight experiences, we identified two different kinds of
engagement are highly significant and roughly of comparable engagement. One factor, Personal Engagement, is manifested
size, indicating that both forms of engagement are important in in experiences that are very similar to those that people have
predicting advertising effectiveness. with newspapers and magazines. For example, people have
social experiences with both print and online content by
Managerial implications bringing up an article they read; just as reading a newspaper
at the breakfast table can be habitual, so can reading a
This research has many applications to both managers at website. The second factor, Social-Interactive Engagement, is
online companies that host ads and those making advertising weighted more to experiences that are more unique to the
web, such as participating in discussions and socializing with
others through a site. These experiences give Social-
6
The experience slopes for the control group (b3 + g) are also significantly Interactive Engagement its dominant social character. This
different from 0, which could be due to any of the threats to internal validity finding gives empirical support and specificity to the idea that
mentioned above or to the method of recruiting subjects used in this study the Internet is a different kind of medium.
(members of the control group were also intercepted from the sites under study
and some may not have completely understood that they were to answer This work set the stage for examining the effect of online
questions about sites in general rather than the one from which they were media engagement on advertising. We related experiences and
recruited). engagement to the ratings of a banner ad using a quasi-
7
It could also be tempting to include all 8 experiences in a single regression experimental design. The results show that both Personal and
model, but such a model is theoretically questionable because there is no Social-Interactive Engagement affect reactions to the banner
“correct” model (i.e., set of experiences included as predictor variables, which
are sampled from the construct domain) and all inference on slope coefficients
ad. Therefore, in addition to the Personal Engagement context
will be suspect. If experiences are manifestations of high-order engagement effects that have been demonstrated previously for traditional
constructs the experience measures will be correlated (creating multicollinear- media, the interactive component of a user's experience with
ity), and must share in explaining the dependent variables. Thus the experience a website is also shown to affect advertising. The results of a
effect sizes will depend on the size of the sample from the construct domain. regression model including both types of engagement indicate
For example, with a sample of 4 experiences, each experience will have the
opportunity to explain more of the dependent variable than with a sample of 8. that Social-Interactive Engagement affects reactions to ads
Multicollinearity suggests that the magnitude of the slopes will also be highly after controlling for Personal Engagement. We conclude that
sensitive to the particular sample of experiences drawn. online media do involve a distinct form of engagement and
330 B.J. Calder et al. / Journal of Interactive Marketing 23 (2009) 321–331

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