Processing Peripherally Placed Advertising: The Effect of Thematic Ad-Content Congruence and Arousing Content on the Effectiveness of In-Video Overlay Advertising

Guided by ad-content congruence literature, arousal-biased competition (ABC) model, and motivated cognition framework, this research examined the effectiveness of peripherally placed advertising in online video content. Specifically, two studies were conducted to explore the interplay between arousal generated from the contextual video and thematic ad-content congruence on ad memory and evaluation of in-video overlay advertisements. Results revealed that in a calm context, thematic incongruence was associated with better encoding and storage of ad information but no differences in ad attitudes or purchase intentions, whereas in an arousing context, thematically congruent ads (vs. incongruent ads) led to better encoding and storage, as well as greater processing fluency, which, in turn, resulted in more favorable ad attitudes and greater purchase intentions. Theoretical and practical implications are also discussed.