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Crowd-Out for Native Advertising: The Impact of Display Advertising in a Mobile E-commerce Platform

  • School of Management, Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Native advertising and display advertising are often combined as each serves a distinct business purpose. However, their influential relationship has not been thoroughly examined, which may blind platforms to making sound advertising portfolio decisions. This study explores the causal effect of display advertising on native advertising performance in mobile contexts, and the moderating roles of sellers’ (i.e., restaurants’) average rating and chain status. A field quasi-experiment on a large mobile e-commerce platform shows that following the introduction of display ads, the clicks, bids, and costs of native ads decreased significantly by 6.6%, 6%, and 11.9%, respectively, while the total advertising cost increased by 18.4%. These findings suggest a partial substitution effect between the two ad types. Furthermore, the negative impact of display ads on the effectiveness of native ads intensifies as the average ratings decline, and is most pronounced in regional chains. This study enriches previous literature by elucidating the influential relationship between mobile display and native advertising, and provides valuable insights for platform managers to develop effective marketing strategies.

Original languageEnglish
Title of host publicationE-Business. Generative Artificial Intelligence and Management Transformation - 24th Wuhan International Conference on E-business, WHICEB 2025, Proceedings
EditorsYiliu Paul Tu, Maomao Chi
PublisherSpringer Science and Business Media Deutschland GmbH
Pages363-380
Number of pages18
ISBN (Print)9783031941863
DOIs
StatePublished - 2025
Externally publishedYes
Event24th Wuhan International Conference on E-Business, WHICEB 2025 - Guangzhou, China
Duration: 6 Jun 20258 Jun 2025

Publication series

NameLecture Notes in Business Information Processing
Volume550 LNBIP
ISSN (Print)1865-1348
ISSN (Electronic)1865-1356

Conference

Conference24th Wuhan International Conference on E-Business, WHICEB 2025
Country/TerritoryChina
CityGuangzhou
Period6/06/258/06/25

Keywords

  • Display Advertising
  • Field Quasi-Experiment
  • Influential Relationship
  • Mobile E-commerce
  • Native Advertising

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