Effect of Price Information and Promotion on Click-Through Rates for Internet Banners

SUMMARY The area of Internet advertising research has, up to now, focused mostly on banner size, placement and media planning factors. The purpose of this paper is to explore the effects of price information and promotion in banner ads on the click-through rate (CTR), which can be a predictor of product interest and potential purchase behavior. The study of a database including about 1200 ad insertions reveals that neither price nor promotional information has a direct effect on CTR. But interactions between mention of price or promotion and type of placement are significant.

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