Embedded Advertising in Generative AI Knowledge Search (ChatGPT)

Prof. Justin T. Huang, University of Michigan Ross School of Business

Date: 19 June 2024 (Wednesday)

Time: 10:00 am - 11:00 am

Venue: A205, Mingli Building, Lihu Campus,SZU

Host: ProfessorCHEN Xingyu,College of Management,SZU

Abstract

Large language models such as ChatGPT have the potential to massively disrupt consumer knowledge search, threatening to replace search rankings and websites by providing unique, highly contextual answers to user questions and raising questions of how advertisers will reach consumers in this new paradigm. This research examines one avenue for advertising on AI knowledge search: product placement. We present a series of randomized studies assessing its effectiveness, mechanism, and moderating effects of advertisement disclosure and availability of targeting information. Our results show that product placements outperform traditional display advertising in motivating purchase intention, through a mechanism of increased customer awareness rather than shifting brand sentiment. However, inserted product placements come at the cost of lower user satisfaction with the AI knowledge search experience, particularly when the advertising is disclosed.

Speaker's Biography

Justin T. Huang is Assistant Professor of Marketing at University of Michigan Ross School of Business. His research explores the role of digital platforms in shaping user behavior and the broader societal impacts of emerging digital technologies. This includes research on online marketplaces, social networks, influencer marketing, and livestreaming using structural modeling, causal inference, and machine learning. Justin's work is highly relevant to content creators, consumers, advertisers, and technology platforms as they navigate questions surrounding ranking and displaying content, driving organic content creation, and managing long-term growth.

All interested faculty and students are welcome to attend!