A Review of Interactivity Component of Online Advertising Models

Abstract

Online advertising is a comparatively nascent phenomenon which came into existence on 24th October, 1994 with publication of a paid display AT&T web banner ad on Hot Wired, a web based magazine (Cho & Cheon, 2004; Double Click, 2005, as cited in Ha, 2008; Janoschka, 2004; Kaye and Medoff, 2001, as cited in Evans, 2009; Hyland, 2000; Interactive Advertising Bureau, 2012). Research in the field of online advertising began in 1996 with the publication of Berthon, Pitt and Watson’s research paper evaluating the World Wide Web as an advertising medium in the Journal of Advertising Research. Online advertising has witnessed rapid growth during the past decade. ‘Interactivity’ is one of the primary differentiating factors in case of online advertising. The power accorded to the users by this interactivity component is quite significant as it has given them control over their advertising consumption. Interactivity has received special attention in the online advertising models developed by researchers in order to provide insights into the functioning of online advertising. The aim of this paper is to review different models of online advertising and understand the manner in which each of them has dealt with interactivity. This paper is based upon my unpublished doctoral thesis and draws extensively upon the review of literature review carried out for it. This review is expected to provide the groundwork for further research in the field of developing advanced online advertising models.