Advertising in Freemium Services: Lack of Control and Intrusion as the Price Consumers Pay

Abstract

Freemium services such as music streaming, video sharing, and mobile games are often supported using advertisements, whereby consumer attention to these advertisements can be considered a proxy form of payment for using the service. The current research develops and empirically tests a conceptual model underpinned by cognitive appraisal theory, examining the influence of control features within freemium services, such as offering consumers choice over when to view advertisements and timing prompts (countdowns indicating length of advertisement). This research considers the influence of these control features on perceived advertising intrusiveness and psychological reactance, as well as the impacts on the advertising outcomes of brand recognition and attitudes toward the advertisement, toward the freemium platform, and toward the brand advertised. Three experimental studies (n = 178, n = 123, n = 224) showed control features significantly decrease perceived advertising intrusiveness. Results revealed that when control features are not provided, there is a significant indirect negative effect on advertising outcomes (recognition and attitude) via the mediators of advertising intrusiveness and psychological reactance. This research is one of the first studies to demonstrate both theoretical and empirical understanding of how control provided to consumers via choice and timing prompts can mitigate the negative effects of advertising within freemium services.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 9 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.