Bidding for Multiple Keywords in Sponsored Search Advertising: Keyword Categories and Match Types

  title={Bidding for Multiple Keywords in Sponsored Search Advertising: Keyword Categories and Match Types},
  author={Xiaomeng Du and Meng Su and Xiaoquan (Michael) Zhang and Xiaona Zheng},
  journal={Inf. Syst. Res.},
Although keyword auctions are often studied in the context of a single keyword in the literature, firms generally have to participate in multiple keyword auctions at the same time. Advertisers purchase a variety of keywords that can be categorized as generic-relevant, focal-brand, and competing-brand keywords. At the same time, firms also have to choose how the keywords can be matched to search queries: exact, phrase, or broad. This study empirically examines how keyword categories and match… 

Tables from this paper

Optimal Keywords Grouping in Sponsored Search Advertising Under Uncertain Environments

A stochastic programming model for keywords grouping is proposed, taking click-through rate and conversion rate as random variables, with consideration of budget constraints and advertisers’ risk-tolerance, and a branch-and-bound algorithm is developed to solve the problem.

Competitive Poaching in Search Advertising: A Randomized Field Experiment

Keyword searches with brand names occur very commonly on search engines, which enables firms to infer not only when customers are searching for them, but also when customers are searching for their

Competitive Poaching in Search Advertising: Two Randomized Field Experiments

Keyword searches with brand names enable firms to generate traffic from search advertising by bidding not only on their own keywords but also on competitors’ keywords. The strategy of bidding on

The impact of ad positioning in search engine advertising: a multifaceted decision problem

This study provides empirical evidence that this approach to search engine advertising does not necessarily maximize sales and reveals relationships that result in a non-linear rank profitability.

Understanding online users by segmenting their search keywords: empirical analysis from online auto insurance search advertising

Abstract Online search advertising is an important market considering its size and future growth potential. However, many marketers have not systematically employed the online search keywords data in

Reserve price of risk-averse search engine in keyword auctions with advertisers' endogenous investment

There is a trade-off between total efficiency and search engine’s utility by search engine that has incentive to withhold reserve price that would benefit social welfare.

Keywords, Limited Consideration, and Organic Product Listings: A Duopoly Model

  • P. Landry
  • Economics, Education
    SSRN Electronic Journal
  • 2019
This paper theoretically investigates the competitive effects of digital keyword search (DKS) in an organic (unsponsored) search market. In the model, sellers can decide which keyword(s) to include

The Effects of Price Rank on Clicks and Conversions in Product List Advertising on Online Retail Platforms

The research documents that the price rank is more influential than actual price for PLA, and highlights a tradeoff in price-rank decisions: A price rank that drives more clicks does not necessarily lead to more conversions; to drive traffic, managers should strive for an extreme to satisfy consumers’ desire for a compromise between price and quality.

Targeting Breadth in Behaviorally Targeted Display Advertising

Targeting breadth is defined as the number of consumer interests that an ad network uses to form the set of potential advertisers who compete for an ad impression to a consumer in the context of



Cyclical Bid Adjustments in Search-Engine Advertising

It is found that under certain conditions, advertisers may engage in cyclical bid adjustments, and equilibrium bidding prices may follow a cyclical pattern: price-escalating phases interrupted by price-collapsing phases, similar to an “Edgeworth cycle” in the context of dynamic price competitions.

An Empirical Analysis of Search Engine Advertising: Sponsored Search in Electronic Markets

This paper empirically model the relationship between different sponsored search metrics such as click-through rates, conversion rates, cost per click, and ranking of advertisements and proposes a novel framework to better understand the factors that drive differences in these metrics.

Ex Ante Information and the Design of Keyword Auctions

This paper examines the design of keyword auctions, a novel mechanism that keyword advertising providers such as Google and Yahoo! use to allocate advertising slots, and finds that weighting scheme determines how advertisers with different click-generating potential match in equilibrium.

The Race for Sponsored Links: Bidding Patterns for Search Advertising

It is found that both of these special aspects of search advertising have a significant effect on sites' bidding behavior and the equilibrium prices of sponsored links, which shed light on the seemingly random order of sites on search engines' list ofsponsored links and their variation over time.

Modeling Indirect Effects of Paid Search Advertising: Which Keywords Lead to More Future Visits?

Results from textual attribute analysis suggest that branded and broader search terms are associated with higher levels of subsequent direct type-in visitation, which is large enough that it could recover a substantial part of the cost of the paid search advertising.

From Generic to Branded: A Model of Spillover in Paid Search Advertising

In Internet paid search advertising, marketers pay for search engines to serve text advertisements in response to keyword searches that are generic (e.g., “hotels”) or branded (e.g., “Hilton

Location, Location, Location: An Analysis of Profitability of Position in Online Advertising Markets

The authors evaluate the impact of ad placement on revenues and profits generated from sponsored search. Their approach uses data generated through a field experiment for several keywords from an

Paid search for online travel agencies: Exploring strategies for search keywords

Sponsored search is a large and growing advertising channel for online retailers. Although advertisers appreciate that search engines can serve ads triggered by particular search terms that only need

The Company That You Keep: When to Buy a Competitor's Keyword

It is found that the quality difference between the brand owner and the competitor moderates the purchase decision of both firms, and implies that the practice of bidding on the competitor's brand name creates a prisoner's dilemma, and thus both firms may be worse off, but the search engine captures the lost profits.

Competing "Creatively" in Sponsored Search Markets: The Effect of Rank, Differentiation Strategy, and Competition on Performance

Although efficiency-enhancing features of online markets have been well studied, much less is known about firms' differentiation strategies in these competitive markets or the outcomes of such