<P>19 cox.smu.edugo to FACULTY RESEARCH arketers like online advertising because the medium allows them to target their messages to speci?c groups of customers. The measure of success has typically been whether a user clicks on the ad. In new research by Associate Professor of Marketing Michael Braun and co-author, a new approach to more effective online advertising is revealed. Typically, online effectiveness was measured by click-through rates, says Braun. Even search advertising is priced in part on the number of times an ad is clicked. However, this ignores the billboard effect. You may not click on that ad, but the ad makes an impression just because you have seen it. You may click on the ad later, type in the URL or search. A business needs to consider impressions or exposures, and all of the different ways that the exposure can lead to a sale, notes Braun. Our contention is that what you really care about as a business is how exposures to the ad translate into success, conversions or sales. It does not matter so much how the user got there. The authors model the effects of a given ad impression in the context of an individuals impression history. Many online ad campaigns include multiple advertising creatives, or versions of the ad. They identi?ed the creatives that are most effective at increasing website visit rates and conversion probabilities. Braun and his co-author studied an advertising campaign run by a single automobile brand from June 15 to August 23, 2009. During this campaign, the advertiser employed 15 unique banner ad creatives for that brand. Since the users were exposed to different creative versions of the ads at different times, the researchers were able to estimate which versions were most effective at stimulating visits and conversions during the 10-week period. This allowed them to create a more optimal ad scheduling strategy that takes into account effects of ad wear-out. The study also analyzed how to schedule ads in an optimal way and add versions or variety. The difference between the online and offline world is that, in online, we have individual exposure data, Braun notes. Previously, advertisers considered aggregates but did not know who saw that particular TV ad, or that billboard. Ideally, the advertiser would present the most effective ad. The ?ndings illustrate that the most effective ad will depend on the individuals ad impression history. In the online world now, you are able to match individuals to exposures and see what they do, says Braun. This is the first time anyone has looked at display advertising where we are able to measure that whole path—from ad exposure to website visit to conversion, says Braun. We feel that this is a better way of measuring the effectiveness of online advertising. ystique shrouds the activities surrounding the board of directors. Today, directors serving on boards are paid quite handsomely. In a ?rst-of-its-kind paper, Distinguished Finance Professor James Linck and co-authors analyze directors — who they are, what they do and how much they are paid. As far back as the early 90s, research indicated the appearance of an ‘old boys network, notes Linck. This earlier research indicated that directors were largely paid the same and rarely received equity as compensation as is common today. But at some point in the 90s, this started to change, says Linck. In general, it seems as though the importance of, and certainly the focus on, the board of directors has increased over time. In 2006, the SEC adopted Rule 33-8732a, which required public companies to disclose compensation of outside board members similar to the disclosure requirements for executive compensation. The authors ?nd that compensation of outside board members is substantial and varies signi?cantly across board members, even within the same ?rm. The average compensation for a directorship rose from $70,000 in 1995, to $164,300 in 2006, and $188,600 in 2010. The researchers put together a dataset of over 57,000 board positions from 2006 to 2010. Directors in their sample hold on average 1.2 outside directorships in S&P 1,500 ?rms. The average compensation that a director receives for all his/her outside directorships in S&P 1,500 ?rms is $220,600 per year; average compensation per directorship is about $180,000. Variation across individual directors is high, even within the same ?rm. Within the same board, the difference between the highest and lowest paid director on a board averages $186,000. The average director in the sample is 61 years old, and 15 percent are female. According to findings, 68 percent of the directors in the sample have an undergraduate degree and 50 percent have an advanced degree, 27 percent of which are MBAs. The in?uence of personal relationships — such as an Ivy League connection, gray director status and family connections — was not signi?cant. Contrary to expectations, political experience was not associated with higher compensation, on average. Workload is a key driver of director compensation, Linck explains. For example, its a particularly large amount of work to chair an audit committee; speci?c expertise is required to hold that position, and directors serving that role receive signi?cantly higher compensation. The directors serving on boards today work, often ‘on call, says Linck. The potential liability placed with directors today has elevated the demands and risks of the role and, corresponding to the workload, has increased compensation as well. n Making Online Advertising More Effective Michael Braun, Associate Professor of Marketing Serving on the Board of Directors: Hard Work but Rewarding James S. Linck, Distinguished Chair in Finance M M</p> <UL><LI><a href="http://www.mzines.net/publication/562/pveziwlbh/1/1/">Front-Cover</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/2/2/">Inside-Front-Cover</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/3/3/">Page-3</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/4/4/">Page-4</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/5/5/">Page-5</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/6/6/">Page-6</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/7/7/">Page-7</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/8/8/">Page-8</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/9/9/">Page-9</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/10/10/">Page-10</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/11/11/">Page-11</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/12/12/">Page-12</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/13/13/">Page-13</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/14/14/">Page-14</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/15/15/">Page-15</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/16/16/">Page-16</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/17/17/">Page-17</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/18/18/">Page-18</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/19/19/">Page-19</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/20/20/">Page-20</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/21/21/">Page-21</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/22/22/">Page-22</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/23/23/">Page-23</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/24/24/">Page-24</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/25/25/">Page-25</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/26/26/">Page-26</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/27/27/">Page-27</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/28/28/">Page-28</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/29/29/">Page-29</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/30/30/">Page-30</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/31/31/">Page-31</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/32/32/">Page-32</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/33/33/">Page-33</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/34/34/">Page-34</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/35/35/">Page-35</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/36/36/">Page-36</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/37/37/">Page-37</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/38/38/">Page-38</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/39/39/">Page-39</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/40/40/">Page-40</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/41/41/">Page-41</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/42/42/">Page-42</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/43/43/">Page-43</a></LI> <LI><a href="http://www.mzines.net/publication/562/pveziwlbh/44/44/">Back-Cover</a></LI> <LI><a href="http://www.mzines.net/publications/562/x/sitemap.xml" target="_blank">site map</a></LI> </UL>


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