An Empirical Analysis of Search Engine Advertising: Sponsored Search and Cross-Selling in Electronic Markets

The phenomenon of sponsored search advertising – where advertisers pay a fee to Internet search engines to be displayed alongside organic (non-sponsored) web search results – is gaining ground as the largest source of revenues for search engines. Using a unique panel dataset of several hundred keywords collected from a large nationwide retailer that advertises on Google, we empirically model the relationship between different metrics such as click-through rates, conversion rates, bid prices and keyword ranks. Our paper proposes a novel framework and data to better understand what drives these differences. We use a Hierarchical Bayesian modeling framework and estimate the model using Markov Chain Monte Carlo (MCMC) methods. We empirically estimate the impact of keyword attributes on consumer search and purchase behavior as well as on firms’ decision-making behavior on bid prices and ranks. We find that the presence of retailer-specific information in the keyword increases click-through rates, and the presence of brand-specific information in the keyword increases conversion rates. Our analysis provides some evidence that advertisers are not bidding optimally with respect to maximizing the profits. We also demonstrate that as suggested by anecdotal evidence, search engines like Google factor in both the auction bid price as well as prior click-through rates before allotting a final rank to an advertisement. Finally, we conduct a detailed analysis with product level variables to explore the extent of cross-selling opportunities across different categories from a given keyword advertisement. We find that there exists significant potential for cross-selling through search keyword advertisements. Latency (the time it takes for consumer to place a purchase order after clicking on the advertisement) and the presence of a brand name in the keyword are associated with consumer spending on product categories that are different from the one they were originally searching for on the Internet

A Comprehensive Guide to Merchandising Bed and Breakfast Inns

The many methods for merchandising a bed and breakfast inn embrace both traditional means and the growing areas available online. The key to all tactics is to show would-be guests how the B&B matches their lodging preferences. Getting that message to the proper guests is essential regardless of the approach. Despite the growing popularity of the internet, nearly three-quarters of B&B guests still prefer to telephone the innkeeper for a reservation. In many cases, however, such calls are influenced by an inn\u27s internet presence. Traditional means for promoting a B&B are guidebooks and local associations\u27 publications. The inn can also gain notice if it attracts the attention of travel journalists. The inn can present itself as a venue for special events, notably weddings and family dinners. In any case, the inn should participate in community events and be seen as a participant in the local business community. If an inn is large enough it might want to deal with tour wholesalers or incentive travel, but that is an entirely different world from the typical B&B guest. One traditional method of spurring reservations is to send a direct-mail piece, preferably to the inn\u27s own list of previous guests or to a prequalified list of people who like to stay in B&Bs. The internet offers a more direct way to interact with would-be guests and to gain reservations, but it also has pitfalls-the most common being that the inn can be lost in the huge volume of websites. Thus, an innkeeper may wish to create a website with keywords that search engines will notice in conjunction with queries about lodging in the area. A well-designed website is essential, and it must include a way for the guest to make a request for rates and availability. That request may be in the form of a web-based booking engine or an email link. Innkeepers can use email to send messages about upcoming promotions to a list of previous guests or those who have inquired about the inn-or purchase a third-party list for this purpose. A most important issue relating to email is to avoid being seen as a spammer. Moreover, the innkeeper must be in a position to respond to guests\u27 email requests in a prompt and personal manner. In the midst of all this, the innkeeper must find time to operate the property. Thus, engaging outside professional help for many of the merchandising tasks may be appropriate, depending on the inn\u27s size and situation

An Empirical Analysis of Search Engine Advertising: Sponsored Search and Cross-Selling in Electronic Markets

The phenomenon of sponsored search advertising – where advertisers pay a fee to Internet search engines to be displayed alongside organic (non-sponsored) web search results – is gaining ground as the largest source of revenues for search engines. Using a unique panel dataset of several hundred keywords collected from a large nationwide retailer that advertises on Google, we empirically model the relationship between different metrics such as click-through rates, conversion rates, bid prices and keyword ranks. Our paper proposes a novel framework and data to better understand what drives these differences. We use a Hierarchical Bayesian modeling framework and estimate the model using Markov Chain Monte Carlo (MCMC) methods. We empirically estimate the impact of keyword attributes on consumer search and purchase behavior as well as on firms’ decision-making behavior on bid prices and ranks. We find that the presence of retailer-specific information in the keyword increases click-through rates, and the presence of brand-specific information in the keyword increases conversion rates. Our analysis provides some evidence that advertisers are not bidding optimally with respect to maximizing the profits. We also demonstrate that as suggested by anecdotal evidence, search engines like Google factor in both the auction bid price as well as prior click-through rates before allotting a final rank to an advertisement. Finally, we conduct a detailed analysis with product level variables to explore the extent of cross-selling opportunities across different categories from a given keyword advertisement. We find that there exists significant potential for cross-selling through search keyword advertisements. Latency (the time it takes for consumer to place a purchase order after clicking on the advertisement) and the presence of a brand name in the keyword are associated with consumer spending on product categories that are different from the one they were originally searching for on the Internet

The BG News April 16, 1987

The BGSU campus student newspaper April 16, 1987. Volume 69 - Issue 111https://scholarworks.bgsu.edu/bg-news/5651/thumbnail.jp

University of San Diego News Print Media Coverage 2004.04

Printed clippings housed in folders with a table of contents arranged by topic.https://digital.sandiego.edu/print-media/1015/thumbnail.jp