Skepticism Toward Online Advertising

Abstract

Despite the enormous spending on digital advertising, consumers are skeptical toward online advertising (STA). We integrated advertising value and stimulus-organism- response (SOR) frameworks to develop a model of STA's causes and consequences. Product knowledge and perceived ethics of online seller (ETH) were proposed as moderators. For study 1, moderated-moderated mediation technique was applied on the time-lagged data of 411 consumers. For study 2, a between-subject experiment (n = 179) compared the effects of skepticism across video and picture ads. The results indicate that ETH and product knowledge moderated the relationships between stimulus-organism and organism-response states, respectively. Moreover, consumers showed favorable attitudes toward video ads. This study made novel contributions to research on STA by filling multiple voids (a) integration of advertising value and SOR (b) infotainment and puffery as predictors (c) product knowledge and perceived ethics of online seller as moderators (d), and comparison across advertisement type (video vs. picture).