publication . Article . 2010

The Race for Sponsored Links: Bidding Patterns for Search Advertising

Zsolt Katona; Miklos Sarvary;
Open Access
  • Published: 01 Jan 2010 Journal: Marketing Science, volume 29, pages 199-215 (issn: 0732-2399, eissn: 1526-548X, Copyright policy)
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Paid placements on search engines reached sales of nearly $11 billion in the United States last year and represent the most rapidly growing form of online advertising today. In its classic form, a search engine sets up an auction for each search word in which competing websites bid for their sponsored links to be displayed next to the search results. We model this advertising market, focusing on two of its key characteristics: (1) the interaction between the list of search results and the list of sponsored links on the search page and (2) the inherent differences in attractiveness between sites. We find that both of these special aspects of search advertising ha...
free text keywords: Internet marketing, position auctions, game theory, Marketing, Business and International Management, Economics, Advertising, Valuation (finance), Search engine, Search advertising, Bidding, Online advertising, business.industry, business, Game theory, Attractiveness, Digital marketing
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