How Not to Market on the Web

Hayashi, A. M. (2010). How not to market on the web. Retrieved February 20, 2010 from: http://sloanreview.mit.edu/the-magazine/files/saleable-pdfs/51204.pdf.

This article, which was published by MIT’s Sloan Management Review, discusses research done on the value of online advertising and how consumer’s concerns for privacy can influence its effectiveness. Two types of ads were studied: website content-based complementary ads and highly visible ads such as pop-ups, ads that move across the screen, and full-screen ads. The study shows that the complementary ads are three times as effective and the highly-visible ads were two times as effective as regular online advertising. However, when both types of ads are used simultaneously they become counterproductive. Further, it is shown that privacy issues are a factor behind the results. This article is important to managers and marketers because online advertising and marketing have become very important tools in today’s business world and it is important that managers understand the best methods to reach their targeted clients and deal with their privacy concerns at the same time.