Our research examines the impact of competing ads on click performance of an ad in sponsored search. We use a unique data set of 1,267 advertiser keyword pairs with differing ad quality related to ...360 keywords from a search engine to evaluate the click performance. We find that competing high-quality ads, appearing above the focal ad, have a lower negative effect on the click performance as compared to competing low-quality ads. We also find that this effect of competing ads varies with the ad position and the type of keyword. In general, the negative effect of competing high-quality ads decreases at low positions as compared to high positions. Furthermore, this decrease in the negative effect of competing high-quality ads is more substantial for specific keywords.
Our results reveal consumer behavior in evaluating different quality ads in sponsored search. More specifically, our results suggest that consumers use the presence of high-quality competing ads as a signal of higher quality of the focal ad. Our findings can help advertisers better evaluate their relative performance for different positions for various types of keywords. This can also help evaluate the efficacy of the auction design mechanism.
A popular joke amongst marketers is that the best place to hide a dead body is page two of search results. Meaning, nobody looks beyond the first page of search results. In a cookie-free future, ...search engines double down on how marketers communicate expertise, authority, and trust. This pushes brands to shift away from product-focused search engine marketing, toward an intent-based approach. To stay at the top of search engine results, marketers must understand consumer assessment of search results. Guided by an integrated framework combining UTAUT2, theory of reasoned action, and media richness theory, this empirical study used a 2 (search result type: organic vs. sponsored) × 3 (presentation format: text-only vs. image vs. video) between-subjects research design for assessing the effects of search results on consumer decisions. Results help establish the connection between consumer perceptions of search results and purchase decisions. Implications for AI-driven search engine marketing are presented.
The present research provides insights into the complex landscape of online advertising channels to support tourism organizations in formulating their marketing strategies. People often use search ...engines and online travel agencies in a very similar way. The aim and sequence of actions that consumers perform on Google or Booking.com are exactly the same, but for the potential sellers each channel presents different costs and attributes. In the Google model, firms make bids and pay on a cost-per-click basis. In the Booking.com model, firms pay commissions based on the value of services sold. Under budget constraints, one of the first problems a company may encounter is determining the resource allocation to different channels. Hence, an analytical model is introduced to compare the profits generated from online search engines and online travel agencies. Assuming a trade-off between different online marketing channels, the study suggests the maximum cost per click that a tourism organization should pay to benefit from search engine marketing as much as from online travel agencies. The analytical model is tested empirically by using data from two hotels and managerial implications are discussed.
We study the impact of changes in the competitors’ listings in organic search results on the performance of sponsored search advertisements. Using data from an online retailer’s keyword advertising ...campaign, we measure the impact of organic competition on both click-through rate and conversion rate of sponsored search advertisements. We find that an increase in organic competition leads to a decrease in the click performance of sponsored advertisements. However, organic competition helps the conversion performance of sponsored ads and leads to higher revenue. We also find that organic competition has a higher negative effect on click performance than does sponsored competition. Our results inform advertisers on how the presence of organic results influences the performance of their sponsored advertisements. Specifically, we show that organic competition acts as a substitute for clicks, but has a complementary effect on the conversion performance.
With the increasingly sophisticated improvements in artificial intelligence (AI) technologies in marketing communications, a gap prevails between heightened levels of excitement around it and ...high-level application. Consequently, this topic necessitates in-depth investigation to prepare for future changes. This study examines the role of AI in programmatic advertising through a quantitative content analysis of AI-enabled digital programmatic advertisements. Although the idea that sponsorship disclosure, appeals, and sentiments are important in persuasive messages has been documented, this study extends existing literature by examining these concepts within AI-enabled programmatic advertising. Sponsorship-linked marketing and congruence theory guided this study. The results showed that only about half of the ads revealed sponsorship information. Further, the brand-sponsor association was not clearly established in the ads. A sentiment analysis showed the prominence of positive sentiments in the ads. Additionally, the ads mostly used product- and consumer-focused appeals. Theoretical and research contributions and strategic marketing implications are discussed.
•Digital advertising literature revolves around IAPS in three basic domains 1) search engine advertising 2) social media advertising 3) display advertising.•These categories are mutually independent; ...from an industry point of view, campaign mechanics, payment method, audience selection, and results differ across categories, with different managerial yield.•Most of the literature of digital advertising revolves around IAPS but without naming it.•For Search Engine Marketing, previous studies have focused on keyword selection, bidding strategy, and search engine ad ranking systems.
We develop and describe a framework for research in a particular segment of digital advertising. Internet Advertising Paid Slots and Spaces (IAPS) is a neologism and work almost like a stock exchange for buying and selling advertising in various formats on designated spaces around web and make a significant contribution to Internet advertising revenues. These paid spaces were found to encompass diverse areas of Internet advertising that include search engine marketing, social media advertising and display advertising. Given the complexity of the modern digital advertising eco system, this literature review seeks to provide clarity, up-to-date knowledge and ongoing insights into Internet advertising channels, for managers making investment decisions in this context.
Although the pace of life is very high today, young people spend free time among applications and electronic devices, but theatrical performances are relatively popular nonetheless. Theaters to ...appeal to young people should use online tools as a basic form of advertising. One of the most popular forms of e-marketing is the search engine SEM. The research question was formulated in the form: do the theaters advertise in paid search results PPC? To answer this question, we analyzed the search results on Google, including AdWords ads, among Polish theaters for popular keywords. By analyzing the results obtained, it can be said that definitely theaters do not use PPC as an advertising tool. Among the popular keywords only 5 theaters were identified using this form, which represents less than 3% of all the theaters in Poland. The reasons for low popularity are the high costs and the lack of advertising due to the relatively large number of contemporary theater customers.
Search engines have become one of the primary tools for travel planning and, as such, have become an important element in the marketing efforts of destination marketing organizations. Recently, it ...has been demonstrated that because of the dynamic relationships among search engine providers, the tourism industry, and travelers, it is essential that destination marketing organizations understand how search engines are used by travelers within the travel planning process. This study proposed a three-stage model that provides a framework for examining how online travelers use search engines and how different aspects of the travel planning process shape this use. The model was evaluated based on a national survey of American online travel planners, and the findings provide significant insight into the role of search engines for travel planning. The implications of the study for search engine marketing are discussed as well as several challenges for future research.
Given the growing importance of search in online travel planning, marketers need to better understand the behavioural aspect of search engines use. Built upon a number of previous studies, the goal ...of this research is to identify patterns in online travel queries across tourist destinations. Utilizing transaction log files from a number of search engines, the analysis shows important patterns in the way travel queries are constructed as well as the commonalities and differences in travel queries about different cities in the United States. The ratio of travel queries among all queries about a specific city seems to associate with the “touristic” level of that city. Also, keywords in travelers' queries reflect their knowledge about the city and its competitors. This paper offers insights into the way tourism destinations are searched online as well as implications for search engine marketing for destinations.
Mobile commerce has changed the decision environment for users who intend to reserve a preferred hotel. This study aims to investigate the factors that affect the dynamic click-through decision (CTD) ...in mobile online travel agency (OTA) search engines. We propose a dynamic Bayesian inference framework to model individual-level users’ CTDs and examine the effects of item position, price, search cost, and the use of refinement tools. The study uses real-world search log datasets from a global OTA for both mobile and desktop searches. Our results show that (1) the primacy effect is weaker and the effect of item-ranking positions is non-linear in a mobile OTA search compared to a desktop OTA search. Mobile users pay the most attention to the top-ranking results and are less likely to click through the middle or bottom results. (2) Hotel prices have a positive effect on mobile CTDs in the whole mobile searching journey. Additionally, mobile users also tend to seek out hotels with lower price rankings on the current search engine result page. (3) The search cost, measured by the cumulative time duration, has a positive impact on mobile CTDs. The use of refinement tools enhances the effect of search cost. This study extends previous research on position and price effects in an online consumer search from PC-based internet to mobile devices. It also provides managerial implications for mobile OTA search engine marketing and investment for bidding ranking positions.
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