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The study, however, does not control for the potential effect of organic results appearing in parallel. The study also contributes to the keyword evaluation of branded keywords Abou Nabout and Skiera ; Desai et al.
The integration of different search intentions into the management of search engine advertising may clarify the inherent ambiguity in keywords. In this example, advertisers have to consider the likelihood of different search intentions to generate revenues. Advertisers thus need to consider the effect of varying search intentions when evaluating the keyword results and adjusting the search advertising campaign.
The remainder of the paper is organized as follows. The next section relates this study to the existing literature on keyword evaluation of branded keywords and across the search process. This section also addresses the underlying three categories of search intention and briefly presents the hypotheses.
The methodology section first outlines the data sample. Then, the data is analyzed and the empirical results are presented. The paper concludes with a discussion of the empirical results and implications before it looks at the limitations of the present study and outlines directions for future research. Furthermore, branded keywords are predominantly transactional or navigational Jansen et al.
Even though some branded searches are induced by previous generic searches Rutz and Bucklin , branded keywords are found to partly cannibalize natural search results that are free of charge Abou Nabout and Skiera These searchers are already determined to select a specific website and merely use the search engine as a navigational tool to locate the website.
Thus, advertisers use competing branded keywords to create awareness for their potential alternative. For example, a smartphone producer may bid on keywords including competing brands, such as Apple, Huawei, and Samsung to present their own brand as an alternative on the search engine results page. Desai et al. If one company has a significantly larger budget, it chooses to defend its keyword against the competition instead of avoiding the competition Sayedi et al.
If a reseller uses a trademarked brand in their search ad, the advertisements become less distinct and searchers are more likely to click an organic result Chiou and Tucker The integration of search intention also extends research on how the search process affects search engine advertising. The research by Jansen and Schuster is related to the present study in this way. The authors analyze how different phases of the buying process impact the outcome of search engine advertising.
Reviewing four generally agreed phases of the buying process, awareness, research, decision, and purchase, the authors find that queries associated with the awareness phase cost less and generate more revenue than purchase-related queries Jansen and Schuster The findings also indicate that user behavior in search engine advertising is not represented well by the buying funnel model. In line with the previous work of Schultz b , this study draws upon the informational, transactional, and navigational search intentions Broder ; Jansen et al.
Based on search data from an online-shop, Sondhi et al. The authors term these categories: shallow exploration queries, targeted purchase queries, minor-item shopping queries, major-item shopping queries, and hard-choice shopping queries. Targeted purchase queries aim at familiar products directly.
Whereas users search with minor-item queries for inexpensive products, major-item queries and hard-choice queries aim at more expensive products.
Major item search considers limited product alternatives compared to hard-choice shopping queries. However, as this classification is closely related to search behavior in an online-shop, the present study draws on the previous distinction derived from multiple Web search engines.
The author analyzes a search engine advertising campaign according to the informational, transactional, and navigational search intentions of the underlying keywords. The study, however, neglects to control for a potential effect between organic results and search advertisements. These categories are in line with previous research Broder ; Jansen et al.
The informational intention refers to a search behavior whose goal is to find information concerning a particular topic to address a need of the searcher. Transactional behavior intends to locate an offer or vendor to obtain a product or service. Navigational intention refers to the retrieval of a particular website that a searcher is at least aware of before entering the search query. In consequence, a keyword incorporates three search intentions to varying degrees. This study follows this proposition.
For the preliminary analyses, however, the keywords are assumed to follow a dominant search intention. Figure 1 displays a corresponding delimitation. Thus, k1 is characterized as informational, whereas k2 is considered navigational. Such behavioral state, referred to as consumer engagement, is situation-specific and results in different activity levels Brodie et al.
Search intentions Broder ; Jansen et al. Involvement can be high in a specific situation for one person and low for another. Based on this theoretical background, the research objective of the present study is to analyze if varying degrees of search intention affect the outcomes of search engine advertising. Figure 2 summarizes the research model. In contrast to previous research Schultz b , we control for organic results on the search engine results page.
In the following, we briefly present the corresponding hypotheses on the effect of search intention on the performance metrics of search engine advertising. As searchers look more deliberately for a specific result entering more concrete queries, search volume decreases.
In consequence, fewer opportunities exist for advertisements to be shown on search engine result pages. If the campaign parameters are constant, more deliberate and specific search intention leads to less competition and, consequently, to a higher positioned advertisement on the search engine result page.
Indeed, the rank of search engine advertisements is higher for navigational than transactional queries and higher for transactional than informational queries Schultz b. Empirical evidence supports this notion Gomes et al. More deliberate and specific searching reduces competition. In combination with increased congruence between query and advertising campaign, the number of ad impressions decreases and, thus, the likelihood that searchers click the advertisement increases.
Altogether, the click-through rate increases from informational to transactional to navigational search intention. An improving advertising rank higher positioned advertisement is generally accompanied by increasing cost per click Agarwal et al.
However, more deliberate and specific queries lead to less competition and decreasing cost per click. Consequently, more specific search intention leads to less competition and, thus, lower cost per click.
Following the argumentation for a decreasing number of impressions Hypothesis 1 and an increasing click-through rate Hypothesis 3 , the number of clicks can increase as well as decrease.
The conversion rate thus increases. Cost per conversion is defined as the ratio of conversion to ad spending. As cost per click decreases Hypothesis 4 and conversion rate increases Hypotheses 6a and 6b , cost per conversion consequently decreases as search intention becomes more specific from informational to transactional to navigational. Thus, we propose the following hypotheses for the online conversion and offline contract.
In the same line of argumentation as regarding the number of clicks Hypothesis 5 , the number of conversions can either increase or decrease. Thus, the present study hypothesizes an increase in the number of online and offline conversions from informational to transactional to navigational search intention.
The interplay between organic results and search advertisements has subsequently been addressed formally Katona and Sarvary ; White ; Xu et al. However, this study is the first to address this interplay in case of differing search intentions.
The effect is more pronounced if searchers are suspicious of search advertisements. As a result, advertisers bid less for such keywords. However, if advertisers do not adjust lower their bids, higher click-through rates and more clicks are expected. Taking on a broad market perspective, White argues that a higher quality of organic results leads to search engines charging higher prices.
If the increased quality results in a high competitive advertising listing, advertisers may thus experience considerable price pressure. As a consequence, searchers value non-duplicate advertisements as more helpful in case of navigational queries.
In contrast, searchers perceive such duplicate information as more beneficial in case of non-navigational searches. Furthermore, organic competition has a higher impact on click-through rate and conversion rate than ad competition Agarwal et al. The effect of organic results on the click-through rate of search engine advertisements is unclear. Findings from clickstream data indicate that when searchers interact with both, organic results and search advertisements, conversion rate considerable increases in comparison to only interacting with one type of results Bremer and Funk As the number of advertising impressions and, thus, the advertising rank are independent of organic results, the study draws on the following six performance metrics: click-through rate, cost per click, number of clicks, conversion rate, cost per conversion, and number of conversions.
The offered services are characterized by high involvement and rational choice by the majority of the target group. These target consumers, for example, perceive high financial commitment in regard to the services offered. For the service company, a conversion is the completion of an online form to request information material.
The revenue-related action is the subsequent signing of a service contract. Contracts were dated to the information request for the empirical analysis. Over the 4-year period, the search engine advertising campaign resulted in about 37 million ad impressions, about 1. The service company used keywords. Some keywords existed with different keyword matching options. The analysis aggregated these multiple entries and only considered keywords with at least one ad impression. The analysis thus included different keywords with at least one ad impression.
All keywords were categorized as predominantly informational, transactional, or navigational for the empirical study. The categorization is based on previous research by Jansen and Schuster and Abou Nabout and Skiera All keywords that include the company brand fall into the navigational category.
The transactional category comprises all keywords that refer to the offered services or competing brands. The offered services are not branded but refer to general types of services.
A special characteristic of the service provider is that it is lifted out of a larger company. Clicks Conv. Table 1 summarizes the keyword categorization. The brand and services are undisclosed as requested by the service company. Table 2 provides an overview of the search engine advertising campaign. Tables 3 and 4 report the means and standard deviations for the three search intentions and, for both cases, for when an organic result was present on average on the first search engine results page.
Number of impressions and advertising rank are included in Table 4 for completeness. By definition, both are independent from the organic listing. Table 5 provides a summary of the results of these analyses of variance. Hypothesis 1 is not supported. Table 3 suggests that advertisements for informational intention 4.
Hypothesis 2 is, thus, supported. Following Table 3, click-through rate increases from informational. Similarly, as hypothesized, cost per click decreases from informational 2. These results support Hypothesis 3 and Hypothesis 4, whereas Hypothesis 9 and Hypothesis 10 are not supported. The interaction effect for the number of clicks is also just above the threshold.
Further research needs to investigate these interactions. If organic results are present on the search engine results page, search engine advertisements receive considerably fewer 1, clicks than in situations where no organic results are present 7, see Table 4. These results support Hypothesis The difference between informational and transactional is not significant.
In line with previous research Bremer and Funk ; Yang and Ghose , the mean conversion rate increases from. These findings partially support Hypothesis 6a and fully support Hypothesis 12a. For cost per conversion, only the main effect of organic presence is significant. The mean of cost per conversion decreases from Simple effects analysis indicates that transactional search intention differs when organic results are present, whereas there is no significant difference for informational intention regarding organic results.
As such, the interactive effect lends partial support to Hypothesis 8a and Hypothesis 14a. For the service company, the revenue-related action is the subsequent signing of a service contract. As mentioned above, analysis of variance is not significant for the signing rate. As shown in Table 4, the mean of cost per contract decreases from The results support Hypothesis 13b but not Hypothesis 7b—comparable to the cost per conversion results.
The mean number of contracts is 1. Whereas the expected direction is confirmed, post hoc tests only indicate a significant difference between informational and transactional search intention. Thus, Hypothesis 8b is partially supported and Hypothesis 14b is not supported. Table 6 provides an overview of the results for every hypothesis. Again, we note the existence of a potential interaction effect for click-through rate and number of clicks.
Furthermore, the present study indicates full support for effects of both search intention and organic results. Both effects increase our understanding of search engine advertising and its performance. Sign up! View more:. Software Deployment Questions. K Version: Distributed - managed Installation reports device offline. Can someone explain the software catalog and why I should use it? Can kace install Browser Extensions? Link Related Links.
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