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

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Riedel, A
Mulcahy, R
Beatson, A
Weeks, C
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2024
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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.

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Journal of Advertising

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© 2024 The Author(s). Published with license by Taylor & Francis Group, LLC. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent.

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This publication has been entered in Griffith Research Online as an advance online version.

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Marketing

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Riedel, A; Mulcahy, R; Beatson, A; Weeks, C, Advertising in Freemium Services: Lack of Control and Intrusion as the Price Consumers Pay, Journal of Advertising, 2024

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