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Discussant: Siva Viswanathan Robert H. Smith School of Business,

NET Institute. An Empirical Analysis of Search Engine Advertising.. Anindya Ghose and Sha Yang, NYU. Discussant: Siva Viswanathan Robert H. Smith School of Business, University of Maryland, College Park. April 18, 2008. Bidding “Creatively” in Sponsored Search Auctions.

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Discussant: Siva Viswanathan Robert H. Smith School of Business,

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  1. NET Institute An Empirical Analysis of Search Engine Advertising.. Anindya Ghose and Sha Yang, NYU. Discussant: Siva Viswanathan Robert H. Smith School of Business, University of Maryland, College Park April 18, 2008

  2. Bidding “Creatively” in Sponsored Search Auctions Tell US Something We Don’t Know • How does the seller’s ad creative affect ad performance? • Unique Selling Proposition (USP) in the ad creative • specifically, Price vs. Quality USP, • Interactions between USPs and Rank. • Controlling for Competition Animesh Animesh, Siva Viswanathan, and Ritu Agarwal, University of Maryland

  3. Data The Focal Firm… • Bids on a portfolio of keywords • The bids are updated frequently and lead to different ranks at which an ad is shown. • Vary the ad-creative (USP) for a given keyword. Data • Top 36 keywords – based on CTRs (e.g., loans, mortgages, home loans, etc.) • Daily data on Ad’s Rank, (Price and Quality) USP employed and corresponding CTR (~3 months in 2006)

  4. High Low Top Bottom Rank Our Findings

  5. The Sponsored Search Filter! Sequential Search from Top to Bottom

  6. Simultaneous Model of Click-through, Conversion, & Bid-Price • Search Engine’s Decision? • Retailer vs. Brand Keywords; Keyword Length. • Different segments of consumers? • Different stages in the purchase process? • CTR and Conversion Rates • Higher CTR, higher conversion rate? Rank, negative conversion rate? • Emphasize Cross-Selling Results. • Differences across consumers? • Implications for Advertisers?

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