TY - GEN
T1 - Retargeting Ads for Shopping Cart Recovery
T2 - 43rd International Conference on Information Systems: Digitization for the Next Generation, ICIS 2022
AU - Moriguchi, Takeshi
AU - Xiong, Guiyang
AU - Luo, Xueming
N1 - Publisher Copyright:
© 2022 International Conference on Information Systems, ICIS 2022: "Digitization for the Next Generation". All Rights Reserved.
PY - 2022
Y1 - 2022
N2 - Retargeting ads (RA) aim to convert customers who previously browsed the websites or abandoned shopping-carts. We exploit several randomized field experiments to test how the effects of RA vary depending on ad-copy content and purchase-funnel stages. Results suggest that compared to hold-out without retargeting, RA in lower funnel based on shopping-cart abandonment history significantly enhances purchase responses. The effects are driven by ad content that highlights product return information rather than product reminder or shipping information. Due to lack of touch/feel/trial of online orders, such ad-copy can nudge customers to try the products by reducing shopping risks and, thus, increase purchase rates. Net revenue for RAs with product return information is 49.7% larger than conventional RAs with product information. Also, lower funnel retargeting is 2.25 times as effective as upper funnel retargeting in lifting purchase rates. These findings indicate how to design RAs to recover abandoned carts and boost sales.
AB - Retargeting ads (RA) aim to convert customers who previously browsed the websites or abandoned shopping-carts. We exploit several randomized field experiments to test how the effects of RA vary depending on ad-copy content and purchase-funnel stages. Results suggest that compared to hold-out without retargeting, RA in lower funnel based on shopping-cart abandonment history significantly enhances purchase responses. The effects are driven by ad content that highlights product return information rather than product reminder or shipping information. Due to lack of touch/feel/trial of online orders, such ad-copy can nudge customers to try the products by reducing shopping risks and, thus, increase purchase rates. Net revenue for RAs with product return information is 49.7% larger than conventional RAs with product information. Also, lower funnel retargeting is 2.25 times as effective as upper funnel retargeting in lifting purchase rates. These findings indicate how to design RAs to recover abandoned carts and boost sales.
KW - advertising
KW - purchase funnel
KW - retargeting
KW - Shopping-cart abandonment
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M3 - Conference contribution
AN - SCOPUS:85192563558
T3 - International Conference on Information Systems, ICIS 2022: "Digitization for the Next Generation"
BT - International Conference on Information Systems, ICIS 2022
PB - Association for Information Systems
Y2 - 9 December 2022 through 14 December 2022
ER -