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Article
Publication date: 6 August 2018

Aggregate effects of advertising decisions: A complex systems look at search engine advertising via an experimental study

Yanwu Yang, Xin Li, Daniel Zeng and Bernard J. Jansen

The purpose of this paper is to model group advertising decisions, which are the collective decisions of every single advertiser within the set of advertisers who are…

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Abstract

Purpose

The purpose of this paper is to model group advertising decisions, which are the collective decisions of every single advertiser within the set of advertisers who are competing in the same auction or vertical industry, and examine resulting market outcomes, via a proposed simulation framework named Experimental Platform for Search Engine Advertising (EXP-SEA) supporting experimental studies of collective behaviors in the context of search engine advertising.

Design/methodology/approach

The authors implement the EXP-SEA to validate the proposed simulation framework, also conduct three experimental studies on the aggregate impact of electronic word-of-mouth (eWOM), the competition level and strategic bidding behaviors. EXP-SEA supports heterogeneous participants, various auction mechanisms and also ranking and pricing algorithms.

Findings

Findings from the three experiments show that both the market profit and advertising indexes such as number of impressions and number of clicks are larger when the eWOM effect is present, meaning social media certainly has some effect on search engine advertising outcomes, the competition level has a monotonic increasing effect on the market performance, thus search engines have an incentive to encourage both the eWOM among search users and competition among advertisers, and given the market-level effect of the percentage of advertisers employing a dynamic greedy bidding strategy, there is a cut-off point for strategic bidding behaviors.

Originality/value

This is one of the first research works to explore collective group decisions and resulting phenomena in the complex context of search engine advertising via developing and validating a simulation framework that supports assessments of various advertising strategies and estimations of the impact of mechanisms on the search market.

Details

Internet Research, vol. 28 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/IntR-10-2017-0377
ISSN: 1066-2243

Keywords

  • Simulation
  • Complex systems
  • Experimental study
  • Search engine advertising

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Article
Publication date: 2 September 2014

Multichannel advertising: does print advertising affect search engine advertising?

Rainer Olbrich and Carsten D. Schultz

The study contributes to our understanding of search engine advertising in two main ways. Firstly, we analyze the comparative effectiveness of its campaign parameters…

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Abstract

Purpose

The study contributes to our understanding of search engine advertising in two main ways. Firstly, we analyze the comparative effectiveness of its campaign parameters. Secondly, we examine the effect of print advertising on search engine advertising

Design/methodology/approach

Based on advertising data for a three-year period, we test the hypotheses by means of a path model with the aid of partial least squares.

Findings

The advertising budget and the degree of keyword matching yield the greatest effect on the number of signed contracts. The click-through rate and the bid amount contribute, to a lesser extent, to explaining this financial target variance. The number of keywords had no significant effect. The study did not yield significant evidence of print advertising, directly affecting the number of search engine advertisement impressions, but showed an indirect effect of print advertising on the number of conversions, induced directly by search engine advertising.

Research limitations/implications

The multichannel relationship of print and search engine advertising, including its campaign parameters, provides a starting point for future research to provide a coherent methodology for capturing the necessary data, processing the underlying information and evaluating the advertising effects.

Practical implications

The multichannel effect needs to be quantified and taken into account when evaluating print advertising and search advertising campaigns and the future advertising mix is planned.

Originality/value

The study extends the field of search engine advertising in the direction of multichannel effects. In comparison to previous research, empirical evidence on the multichannel usage of print advertising and search engine advertising, related to an overall economic target, is provided.

Details

European Journal of Marketing, vol. 48 no. 9/10
Type: Research Article
DOI: https://doi.org/10.1108/EJM-10-2012-0569
ISSN: 0309-0566

Keywords

  • Advertising
  • Advertising effectiveness
  • Multichannel advertising
  • Print advertising
  • Search engine advertising

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Article
Publication date: 17 June 2019

Changing realty: altering paths of brand discovery for real estate websites in India

Smitha Vasudevan and F.J. Peter Kumar

Brand awareness is a key cognitive metric and a vital component of consumer-based brand equity. Generating and maintaining brand awareness has been an important metric for…

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Abstract

Purpose

Brand awareness is a key cognitive metric and a vital component of consumer-based brand equity. Generating and maintaining brand awareness has been an important metric for brands and a significant outcome of advertising and promotional activities. Brand awareness has been studied over the years in the context of market share and mind share and is considered to be the fundamental starting point of a brand relationship. Most branding variables are challenged in their linear definitions by the multi-dimensionality of the connected online world. Consumers may start their brand journey with brand awareness and then proceed to explore higher options in a non-linear fashion. This challenges traditional advertising and brand salience models. In the web context, brand awareness could even happen with little prior cognitive processing. The purpose of this paper is to explore the little researched area of brand awareness in the context of Indian websites.

Design/methodology/approach

The study leveraged technology to study the brand discovery behaviour of real estate website users in India. The authors looked at essentially modified processes such as the brand experience journey, specifically, the sources and antecedents of brand awareness for real estate websites. Considering the fact that direct and indirect traffic to a website is indicative of the brand awareness metrics, the authors analyse the metric as a basis of the comparison.

Findings

Brand awareness in the digital world can be attributed as firm generated, user generated and, as the authors also discover, experience initiated. The altered dimensions have a profound impact on the brand advertising spends of not just digital brands, but all marketers who will find digital technology increasingly central to their brand communication efforts.

Research limitations/implications

Burgeoning websites and media proliferation have increased the source set for website discovery. Customers do not rely solely on advertising or chance encounter to discover a new brand. Usage of search engines remains the key point of discovery for brand awareness. Some of the respondents recognised websites from prior advertising exposure and selected the brand from the consideration set offered in the search results for their keyword search. In other cases, brand awareness followed brand experience as the users did not process the brand information or, in most cases, were not aware of the brand name prior to website visit. The quality of brand experience created brand awareness and had further implications, including brand visit intent.

Practical implications

While mass media television advertising and ubiquitous online advertising can build brand awareness, the impact of search engine advertising and search engine optimisation is equally significant, if not more important. Brand managers can additionally focus on branding on the search channel in the light of increasing search intensity. Beyond traditional keyword planning, this can be an enhanced branding platform for reaching out to specific behavioural or character traits of the target audience. Brand experience can mature from task completion to brand awareness and higher level values if the website includes key brand messages and goals.

Originality/value

This paper offers insight into the little known field of online brand management. Information intermediary websites are unique in their value proposition, and brand building is challenging. Real estate websites have grown in popularity, but have not merited researcher attention. This paper offers a unique perspective on branding websites, specifically in the context of emerging markets like India.

Details

Property Management, vol. 37 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/PM-03-2018-0020
ISSN: 0263-7472

Keywords

  • Internet
  • Branding
  • Websites
  • Real estate
  • Information intermediary
  • Real estate websites

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Book part
Publication date: 1 January 2009

Metrics for the New Internet Marketing Communications Mix

Randolph E. Bucklin, Oliver J. Rutz and Michael Trusov

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Abstract

Details

Review of Marketing Research
Type: Book
DOI: https://doi.org/10.1108/S1548-6435(2008)0000005011
ISBN: 978-0-85724-727-8

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Article
Publication date: 10 June 2014

Effects of online advertising on automobile sales

Jianping Peng, Guoying Zhang, Shaoling Zhang, Xin Dai and Jing Li

– The purpose of this paper is to explore the effects of online advertising spending on automobile sales through both search and non-search advertising.

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Abstract

Purpose

The purpose of this paper is to explore the effects of online advertising spending on automobile sales through both search and non-search advertising.

Design/methodology/approach

Sales data of the top 52 vehicle models were collected in two consecutive years in China. The advertising spending data of both formats were collected from a leading consulting company and a major search engine company. Then several empirical models were proposed to evaluate the effects of online advertising on automobile sales. Two extended models were further investigated for search advertising.

Findings

The results revealed that both formats of online advertising have significantly positive effects on automobile sales. However, excessive spending on non-search advertising does not help sales and a moderate budget is preferred. On the other hand, spending on search advertising has no such constraint to improve the vehicle sales.

Practical implications

The empirical findings have proved the importance of online advertising to the automobile companies and thus can help companies improve their decision making in online advertising allocation strategies.

Originality/value

This study provides a better understanding of the relationship between online advertising spending and automobile sales, and helps business to define sophisticated online advertising strategies to improve sales performance.

Details

Management Decision, vol. 52 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/MD-10-2012-0753
ISSN: 0025-1747

Keywords

  • Online advertising
  • China
  • Advertising
  • Non-search advertising
  • Search advertising
  • Automobile sales

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Article
Publication date: 1 June 2004

Web search engine advertising practices and their effect on library service

David Moxley, Joni Blake and Susan Maze

Librarians have traditionally helped users meet their information needs by providing access to vetted sources. This changed when Internet access to the Web was introduced…

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Abstract

Librarians have traditionally helped users meet their information needs by providing access to vetted sources. This changed when Internet access to the Web was introduced into the library service equation. While users now have access to more information than ever before, they must rely on search engines to retrieve and rank the results of their searches before research can begin. A problem with ranked retrieval is that many search engines participate in the practice of pay‐for‐placement advertising, which can affect the order of ranking, and may not be apparent as advertising. This practice introduces a new variation in the relationship between user and advertiser that has not existed in libraries before.

Details

The Bottom Line, vol. 17 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/08880450410536080
ISSN: 0888-045X

Keywords

  • Advertising
  • Internet
  • Information services
  • Libraries

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Article
Publication date: 13 March 2017

Attitudes toward mobile search ads: a study among Mexican millennials

Enrique Murillo

The purpose of this study is to conduct a survey of Mexican millennials to measure the extent of negative bias and perceived advertising value they experienced toward the…

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Abstract

Purpose

The purpose of this study is to conduct a survey of Mexican millennials to measure the extent of negative bias and perceived advertising value they experienced toward the ads they encountered while performing a search for local products and services from their smartphones.

Design/methodology/approach

Using a paper survey with a scenario question, responses were collected from 1,215 millennial smartphone owners about the strategies they used for scanning mobile search organic and sponsored results and quickly reaching the information they needed when performing a mobile search. The 315 participants who reported clicking on ads were further surveyed on their perceptions of ad informativeness, entertainment, irritation and credibility. These constructs were used as the predictors of advertising value in a structural equations model which was estimated with partial least squares.

Findings

A substantial bias against sponsored results was found, with two-thirds of respondents skipping the ads when performing a mobile search from their smartphones. However, 28.2 per cent reported clicking on the most relevant result without regard to it being organic or sponsored, and an additional 5.6 per cent reported clicking on an ad as their first strategy. In the structural model, all four hypothesized antecedents of advertising value were significant, and some gender differences were detected.

Practical implications

With the increasing penetration of smartphones, and rapid growth of mobile search, these results are particularly relevant for local merchants, who can use mobile search ads to leverage their location and communicate with searching consumers at the precise moment when they are most receptive to timely and relevant advertising.

Originality/value

This study is the first to measure the extent of consumer bias against sponsored results in a mobile search, and the first empirical estimation of the advertising value of mobile-sponsored results.

Details

Journal of Research in Interactive Marketing, vol. 11 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JRIM-06-2016-0061
ISSN: 2040-7122

Keywords

  • Mobile advertising
  • Millenials
  • Search marketing

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Article
Publication date: 20 August 2010

Online advertising effectiveness: a cross‐cultural comparison

Malte Brettel and Andrea Spilker‐Attig

The internet has gained enormous importance as an advertising medium. At the same time, the question of marketing accountability has become one of the top areas of…

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Abstract

Purpose

The internet has gained enormous importance as an advertising medium. At the same time, the question of marketing accountability has become one of the top areas of research for researchers and practitioners who aim at optimal marketing budget allocations. This paper aims to show that national culture has an impact on how consumer behavior is influenced by online advertising.

Design/methodology/approach

The paper compares the effectiveness of internet advertising in the USA and France by analyzing a real data sample with more than 1.2 million transactions using partial least squares and structural equation modeling.

Findings

It is found that on‐demand channels have a stronger effect on short‐term success than push‐channels and that this effect is strongly moderated by the culture. It is recommended that spending and efforts in the various advertising channels be adjusted to reflect the product offered and the customers to whom it is offered, as customers in both countries should be targeted by advertising in different ways. The channel effectiveness of affiliate price comparison sites and search engines has significantly different impacts on customer behavior in the USA and France.

Originality/value

Until now, most companies have utilized a suboptimal allocation of resources to advertising channels because of missing and misleading data. Focusing on this problem, the paper suggests that advertisers apply the methodology to identify the total effect of clicks in each advertising channel. Combining these total effects with the associated costs allows practitioners to optimize their online advertising spending.

Details

Journal of Research in Interactive Marketing, vol. 4 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/17505931011070569
ISSN: 2040-7122

Keywords

  • Advertising effectiveness
  • Electronic commerce
  • International marketing
  • Consumer behaviour
  • France
  • United States of America

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Book part
Publication date: 19 September 2019

The Impact of Digital Innovations on Marketing and Consumers

Brian T. Ratchford

This chapter presents a summary of the literature on the influence of the Internet and other digital innovations on markets, consumers, and firms. The review leads to a…

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Abstract

This chapter presents a summary of the literature on the influence of the Internet and other digital innovations on markets, consumers, and firms. The review leads to a list of topics in need of research in the general areas of big data, online and mobile advertising, consumer search, online privacy, online reviews, social networks, platforms for online transactions, and the impact of the Internet on retail markets, including multi-channel and omni-channel retailing. We discuss the big data approaches that have been applied to problems of targeting and positioning and suggest areas for further development of these approaches. We also discuss the emerging area of mobile advertising, which can further enhance targeting. On the consumer side, the evidence indicates that the Internet has greatly lowered the costs of search and access to retailers. Much of the consumer data are transmitted to sellers, and much of the online advertising is transmitted to consumers, through platforms, such as Google. We conclude that better models of competition among these platform firms are needed and that they need to be examined for anti-trust violations. While online retailing has grown rapidly, it still has a relatively small share of retail sales. Since sellers can combine the advantages of online and offline channels, it has been common for sellers to branch into multi-channel retailing. Given the increased availability of detailed consumer data, omni-channel selling, which emphasizes strategies for the various touchpoints that lead to a transaction, is an area for further development.

Details

Marketing in a Digital World
Type: Book
DOI: https://doi.org/10.1108/S1548-643520190000016005
ISBN: 978-1-78756-339-1

Keywords

  • Internet
  • big data
  • online advertising
  • search
  • retailing
  • platforms

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Article
Publication date: 12 March 2018

Making sense of the changing face of Google’s search engine results page: an advertiser’s perspective

Divya Sharma, Agam Gupta, Arqum Mateen and Sankalp Pratap

Google commands approximately 70 per cent of search market share worldwide, resulting in businesses investing heavily in search engine advertising on Google to target…

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Abstract

Purpose

Google commands approximately 70 per cent of search market share worldwide, resulting in businesses investing heavily in search engine advertising on Google to target potential customers. Recently, Google changed the way in which content and ads were displayed on the search engine results page. This reshuffling of content and ads is expected to affect the advertisers who advertise on Google and/or use it to drive traffic to their websites. The purpose of this study is to analyze the impact of these changes on various stakeholders.

Design/methodology/approach

Data have been collected from various sources on the internet including blogs and discussion forums. Netnography has been used as it allows a detailed evaluation of the consumers’ needs, wants and choices in a virtual space.

Findings

The average cost-per-click for ads on the top positions is expected to increase. Advertisers whose ads usually occupy the lower positions would be adversely affected. To counter this, more emphasis should be placed on ad extensions and on product listing ads. In addition, organizations would benefit from increased efforts on search engine optimization.

Practical implications

A variety of coping strategies have been developed that can help marketers to successfully navigate through the change, including the use of ad extensions and the use of product listing ads.

Originality/value

This practice-focused paper offers guidelines for digital marketers to use sponsored search more effectively as part of their arsenal in light of some important changes recently made by Google. The potential of netnography as a research methodology has also been expanded by using it in a novel setting and in drawing up actionable insights.

Details

Journal of Information, Communication and Ethics in Society, vol. 16 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JICES-06-2017-0035
ISSN: 1477-996X

Keywords

  • Netnography
  • Digital marketing
  • Google ads
  • Sponsored search advertising

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