Targets & Segments

• Targets & Segments
• Article

Using AI Assistants to Predict Purchase Intent

• MSI

This study examines user interactions with AI assistants to infer purchase intent. By analyzing the text of user-initiated interactions, researchers build a bipartite network of nouns and verbs and measure the distance of specific words to "golden" purchasing words like "purchase," "buy" or "order." The study uses large language models, specifically Chat-GPT4, to annotate data with a measure of purchase intent and validates this method by comparing the results with cost-per-click (CPC) for keywords in Google Ads. The findings suggest that words used in an exchange with an AI assistant can predict purchase intent without customer tracking across interactions.

These findings have implications for using customized small versus large language models and can potentially inform advertising decisions. The study highlights the importance of understanding consumer behaviors in interactions with AI assistants. It provides a method to predict purchase intent based solely on the textual content of these interactions.

• Targets & Segments
• Article

Virtual Influencers, Advertising’s Financial Impact, and Avatars in the Metaverse

• JAR INSIGHTS STUDIOS

At this Insights Studio, researchers from top institutions presented pioneering work addressing the evolving landscape of advertising. Topics of discussion included: an exploration of virtual influencers and the effectiveness of virtual influencers in real-world versus virtual-world settings, a comprehensive synthesis of over 250 studies examining the complex relationship between advertising and a company’s stock price, and a deep dive into the emerging world of the metaverse with a study on how the presence of employee avatars in virtual stores influences consumer behavior.

• Targets & Segments
• Article

Lower AI Literacy Predicts Greater Receptivity to AI this Study Finds

• MSI

The study explores the relationship between consumers' AI literacy and their receptivity to this emerging technology. What is AI literacy you ask? This refers to a person's degree of objective knowledge about AI, while receptivity refers to the extent to which a consumer is interested in having AI complete tasks. The study finds that contrary to popular belief, people with lower AI literacy exhibit greater receptivity towards AI-based products and services. What’s more, this relationship persists across a broad range of receptivity measures.

The research offers both theoretical and practical contributions. Theoretically, it contributes to the growing literature on psychological responses to AI, by focusing on understanding whether systematic differences across individuals predict differences in AI receptivity. Practically, the results suggest that attempts to increase the adoption of AI-based products and services through targeting consumers with greater AI literacy or increasing knowledge of AI may not be the most effective.

• Targets & Segments
• Article

Current Opportunities and Challenges VR Presents for Advertisers

• Journal of Advertising Research

Before the resurgence in interest in AI, virtual reality was the technology everyone was excited about. Despite the hype, advertisers have been slow to adopt VR environments. Why is this? This study, which was recently made available early online on the Journal of Advertising Research’s website, explores the potential and challenges of VR environments for advertising in its current state.

Widespread adoption has stalled, the study finds, due to obstacles such as limited reach, anticipated lack of ROI, lack of technical expertise and poor interoperability. However, the metaverse offers unique opportunities for advertisers, leaving a sort of resonating impact that other media cannot convey, because they do not engage the user in as immersive an experience as VR offers.

• Targets & Segments
• Article

Who is More Persuasive to an Audience, Micro-, Macro- or Mega- Influencers?

• JOURNAL OF ADVERTISING RESEARCH

This study investigates the impact of influencer follower size on brand responses. It examines whether micro-, macro- or mega-influencers are more effective in increasing brand awareness, positive brand attitudes and purchase intentions. The study finds that micro-influencers, with fewer than 100,000 followers, are more persuasive than larger influencers due to their higher perceived credibility and similarity to the audience. The research highlights the importance of choosing the right influencer size for marketing campaigns to achieve better brand outcomes.

The study also explores the underlying mechanisms that explain the effects of influencer size on brand responses. It identifies three key factors: wishful identification, perceived credibility and perceived similarity. The findings suggest that micro-influencers are more effective in enhancing brand awareness and positive brand attitudes because they are perceived as more credible and similar to the audience.

• Targets & Segments
• Article

Variety Plays an Important Role in Forming New Consumption Routines

• MSI

Learn the role of product variety in forming new consumption routines with this recent MSI working paper. Researchers Sarah Memmi and Jordan Etkin conducted a six-week field study focusing on flossing habits. They found that using a variety of dental flosses, as opposed to a single type, can help consumers engage more consistently in the new routine. This research suggests that variety not only makes the routine more enjoyable but also aids in preference development.

The findings challenge the traditional view that uniformity is key to habit formation. Instead, incorporating variety can be a simple and effective strategy for both consumers and marketers to enhance engagement and loyalty. This research provides actionable insights for creating and maintaining consumption routines, particularly in health-related behaviors.

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• Article

Discover the Future of Advertising through Immersive Technologies

• Journal of Advertising Research

Immersive technologies, including augmented reality (AR), virtual reality (VR) and mixed realities (MR), are expected to become increasingly important in advertising. These technologies create extended realities (XR) that enhance consumer engagement and provide new opportunities for marketers. While the fully immersive “metaverse” is still in development, platforms like Fortnite, Roblox and Zepeto already provide touchpoints where consumers connect physical and virtual realities.

Despite the potential of immersive technologies to transform advertising, there are challenges in effectively deploying them within communication strategies. Limited knowledge on how to use specific technologies or combinations of technologies to achieve different promotional objectives, siloed research on AR and VR applications, and the infancy of these research areas are some of the key challenges. This special issue of the Journal of Advertising Research addresses these challenges and provides insights into the future of immersive technologies in advertising.

• Targets & Segments
• Article

How Social Media Platforms Affect Music Consumption

• MSI

Are social media platforms compensating musical artists enough for their IP? Although music companies claim social platforms cannibalize sales, the platforms say they give artists much needed exposure. Who is correct? The study examines the impact of TikTok on music consumption and revenue. It highlights what TikTok pays studios and discusses the concerns from Universal Music Group (UMG) regarding inadequate compensation for its artists.

Additionally, it mentions that videos on TikTok function as promotional materials or trailers for full-length productions. The study uses a  difference-in-difference model to analyze the data. It concludes that music labels can sharpen their licensing agreements based on the findings.