Consumer Heterogeneity and Paid Search Effectiveness: A Large Scale Field Experiment

@article{Blake2014ConsumerHA,
  title={Consumer Heterogeneity and Paid Search Effectiveness: A Large Scale Field Experiment},
  author={Thomas Blake and Chris Nosko and Chris Nosko and Steven Tadelis},
  journal={Randomized Social Experiments eJournal},
  year={2014}
}
Internet advertising has been the fastest growing advertising channel in recent years, with paid search ads comprising the bulk of this revenue. We present results from a series of large‐scale field experiments done at eBay that were designed to measure the causal effectiveness of paid search ads. Because search clicks and purchase intent are correlated, we show that returns from paid search are a fraction of non‐experimental estimates. As an extreme case, we show that brand keyword ads have no… Expand
A Large-Scale Field Experiment to Evaluate the Effectiveness of Paid Search Advertising
Companies spend billions of dollars online for paid links to branded search terms. Measuring the effectiveness of this marketing spending is hard. Blake, Nosko and Tadelis (2015) ran an experimentExpand
Online ads and offline sales: measuring the effect of retail advertising via a controlled experiment on Yahoo!
A randomized experiment with 1.6 million customers measures positive causal effects of online advertising for a major retailer. The advertising profitably increases purchases by 5%. 93% of theExpand
Sponsored Search in Equilibrium: Evidence from Two Experiments
Advertising affects not only the firm that advertises, but also the platform that hosts the advertisement. Using data from a field experiment at an e-commerce platform, I demonstrate that the effectsExpand
Effectiveness of Paid Search Advertising: Experimental Evidence
Paid search has become an increasingly common form of advertising, comprising about half of all online advertising expenditures. To shed light on the effectiveness of paid search, we design andExpand
An Empirical Analysis of Seller Advertising Strategies in an Online Marketplace
Online marketplaces are increasingly adopting innovative business models such as using paid advertising as a major revenue source. We explore the two popular advertising tools, sponsored search andExpand
An Empirical Analysis of Seller Advertising Strategies in an Online Marketplace
TLDR
Evidence is found that both sponsored search and social media endorsement are significant in attracting traffic, after the authors control for seller self-selection behavior in choosing their strategies. Expand
Are Consumers Averse to Sponsored Messages? The Role of Search Advertising in Information Discovery
We analyze a large-scale randomized field experiment in which a search engine varied the prominence of search ads for 3.3 million US users: one group of users saw the status quo, while the other sawExpand
How Search Engine Advertising Affects Sales over Time: An Empirical Investigation
TLDR
This study builds an advertising response model within a time-varying coefficient (TVC) modeling framework, and estimates the model using a unique dataset from a large E-Commerce retailer in the United States, and demonstrates that effects on sales do change over time in non-linear ways. Expand
Location, Location, Location: Repetition and Proximity Increase Advertising Effectiveness
We examine a large-scale field experiment that measures the effect of online display advertising. Yahoo! Research and an American apparel retailer collaborated on the experiment that tracked theExpand
Does Advertising Serve as a Signal? Evidence from Field Experiments in Mobile Search
In a large-scale field experiment, we demonstrate that advertising can serve as a signal that enhances consumers' evaluations of advertised goods. We implement the experiment on a mobile searchExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 45 REFERENCES
Online ads and offline sales: measuring the effect of retail advertising via a controlled experiment on Yahoo!
A randomized experiment with 1.6 million customers measures positive causal effects of online advertising for a major retailer. The advertising profitably increases purchases by 5%. 93% of theExpand
Search Engine Advertising: Channel Substitution When Pricing Ads to Context
TLDR
This substitution toward online advertising is strongest in markets with fewer customers, suggesting that the relationship between the online and offline media is mediated by the marketers' need to target their communications. Expand
Search Engine Advertising: Channel Substitution when Pricing Ads to Context
We explore substitution patterns across advertising platforms. Using data on the advertising prices paid by lawyers for 139 Google search terms in 195 locations, we exploit a natural experiment inExpand
Location, Location, Location: Repetition and Proximity Increase Advertising Effectiveness
We examine a large-scale field experiment that measures the effect of online display advertising. Yahoo! Research and an American apparel retailer collaborated on the experiment that tracked theExpand
Analyzing the Relationship Between Organic and Sponsored Search Advertising: Positive, Negative, or Zero Interdependence?
TLDR
This paper model and estimate the interrelationship between organic search listings and paid search advertisements, and suggests that click-throughs on organic listings have a positive interdependence with click- throughs on paid listings, and vice versa. Expand
The Design of Online Advertising Markets
The Design of Online Advertising Markets Benjamin Edelman—Draft Online advertising is big business, already reaching some $40 billion per year. For advertisers, online advertising offers the tripleExpand
Does Retail Advertising Work? Measuring the Effects of Advertising on Sales Via a Controlled Experiment on Yahoo!
We measure the causal effects of online advertising on sales, using a randomized experiment performed in cooperation between Yahoo! and a major retailer. After identifying over one million customersExpand
The Effect of Banner Advertising on Internet Purchasing
This article focuses on whether banner advertising affects purchasing patterns on the Internet. Using a behavioral database that consists of customer purchases at a Web site along with individualExpand
Northern exposure: a field experiment measuring externalities between search advertisements
TLDR
A controlled experiment is conducted and it is found that additional rival ads in the north tend to increase rather than decrease the click-through rate (CTR) of the top sponsored listing. Expand
Measuring Position Effects in Search Advertising: A Regression Discontinuity Approach
We investigate the causal effect of position in search engine advertising listings on outcomes such as click-through rates and sales orders. Since positions are determined through an auction, thereExpand
...
1
2
3
4
5
...