• Title/Summary/Keyword: Keyword Advertising

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Developing the Purchase Conversion Model of the Keyword Advertising Based on the Individual Search (개인검색기반 키워드광고 구매전환모형 개발)

  • Lee, Dong Il;Kim, Hyun Gyo
    • Journal of the Korean Operations Research and Management Science Society
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    • v.38 no.1
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    • pp.123-138
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    • 2013
  • Keyword advertising has been used as a promotion tool rather than the advertising itself to online retailers. This is because the online retailer expects the direct sales increase when they deploy the keyword sponsorship. In practice, many online sellers rely on keyword advertising to promote their sales in short term with limited budget. Most of the previous researches use direct revenue factors as dependent variables such as CTR (click through rate) and CVI (conversion per impression) in their researches on the keyword advertising[14, 16, 22, 25, 31, 32]. Previous studies were, however, conducted in the context of aggregate-level due to the limitations on the data availability. These researches cannot evaluate the performance of keyword advertising in the individual level. To overcome these limitations, our research focuses on conversion of keyword advertising in individual-level. Also, we consider manageable factors as independent variables in terms of online retailers (the costs of keyword by implementation methods and meanings of keyword). In our study we developed the keyword advertising conversion model in the individual-level. With our model, we can make some theoretical findings and managerial implications. Practically, in the case of a fixed cost plan, an increase of the number of clicks is revealed as an effective way. However, higher average CPC is not significantly effective in increasing probability of purchase conversion. When this type (fixed cost plan) of implementation could not generate a lot of clicks, it cannot significantly increase the probability of purchase choice. Theoretically, we consider the promotional attributes which influence consumer purchase behavior and conduct individuals-level research based on the actual data. Limitations and future direction of the study are discussed.

A Study on the Meaning and Strategy of Keyword Advertising Marketing

  • Park, Nam Goo
    • Journal of Distribution Science
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    • v.8 no.3
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    • pp.49-56
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    • 2010
  • At the initial stage of Internet advertising, banner advertising came into fashion. As the Internet developed into a central part of daily lives and the competition in the on-line advertising market was getting fierce, there was not enough space for banner advertising, which rushed to portal sites only. All these factors was responsible for an upsurge in advertising prices. Consequently, the high-cost and low-efficiency problems with banner advertising were raised, which led to an emergence of keyword advertising as a new type of Internet advertising to replace its predecessor. In the beginning of 2000s, when Internet advertising came to be activated, display advertisement including banner advertising dominated the Net. However, display advertising showed signs of gradual decline, and registered minus growth in the year 2009, whereas keyword advertising showed rapid growth and started to outdo display advertising as of the year 2005. Keyword advertising refers to the advertising technique that exposes relevant advertisements on the top of research sites when one searches for a keyword. Instead of exposing advertisements to unspecified individuals like banner advertising, keyword advertising, or targeted advertising technique, shows advertisements only when customers search for a desired keyword so that only highly prospective customers are given a chance to see them. In this context, it is also referred to as search advertising. It is regarded as more aggressive advertising with a high hit rate than previous advertising in that, instead of the seller discovering customers and running an advertisement for them like TV, radios or banner advertising, it exposes advertisements to visiting customers. Keyword advertising makes it possible for a company to seek publicity on line simply by making use of a single word and to achieve a maximum of efficiency at a minimum cost. The strong point of keyword advertising is that customers are allowed to directly contact the products in question through its more efficient advertising when compared to the advertisements of mass media such as TV and radio, etc. The weak point of keyword advertising is that a company should have its advertisement registered on each and every portal site and finds it hard to exercise substantial supervision over its advertisement, there being a possibility of its advertising expenses exceeding its profits. Keyword advertising severs as the most appropriate methods of advertising for the sales and publicity of small and medium enterprises which are in need of a maximum of advertising effect at a low advertising cost. At present, keyword advertising is divided into CPC advertising and CPM advertising. The former is known as the most efficient technique, which is also referred to as advertising based on the meter rate system; A company is supposed to pay for the number of clicks on a searched keyword which users have searched. This is representatively adopted by Overture, Google's Adwords, Naver's Clickchoice, and Daum's Clicks, etc. CPM advertising is dependent upon the flat rate payment system, making a company pay for its advertisement on the basis of the number of exposure, not on the basis of the number of clicks. This method fixes a price for advertisement on the basis of 1,000-time exposure, and is mainly adopted by Naver's Timechoice, Daum's Speciallink, and Nate's Speedup, etc, At present, the CPC method is most frequently adopted. The weak point of the CPC method is that advertising cost can rise through constant clicks from the same IP. If a company makes good use of strategies for maximizing the strong points of keyword advertising and complementing its weak points, it is highly likely to turn its visitors into prospective customers. Accordingly, an advertiser should make an analysis of customers' behavior and approach them in a variety of ways, trying hard to find out what they want. With this in mind, her or she has to put multiple keywords into use when running for ads. When he or she first runs an ad, he or she should first give priority to which keyword to select. The advertiser should consider how many individuals using a search engine will click the keyword in question and how much money he or she has to pay for the advertisement. As the popular keywords that the users of search engines are frequently using are expensive in terms of a unit cost per click, the advertisers without much money for advertising at the initial phrase should pay attention to detailed keywords suitable to their budget. Detailed keywords are also referred to as peripheral keywords or extension keywords, which can be called a combination of major keywords. Most keywords are in the form of texts. The biggest strong point of text-based advertising is that it looks like search results, causing little antipathy to it. But it fails to attract much attention because of the fact that most keyword advertising is in the form of texts. Image-embedded advertising is easy to notice due to images, but it is exposed on the lower part of a web page and regarded as an advertisement, which leads to a low click through rate. However, its strong point is that its prices are lower than those of text-based advertising. If a company owns a logo or a product that is easy enough for people to recognize, the company is well advised to make good use of image-embedded advertising so as to attract Internet users' attention. Advertisers should make an analysis of their logos and examine customers' responses based on the events of sites in question and the composition of products as a vehicle for monitoring their behavior in detail. Besides, keyword advertising allows them to analyze the advertising effects of exposed keywords through the analysis of logos. The logo analysis refers to a close analysis of the current situation of a site by making an analysis of information about visitors on the basis of the analysis of the number of visitors and page view, and that of cookie values. It is in the log files generated through each Web server that a user's IP, used pages, the time when he or she uses it, and cookie values are stored. The log files contain a huge amount of data. As it is almost impossible to make a direct analysis of these log files, one is supposed to make an analysis of them by using solutions for a log analysis. The generic information that can be extracted from tools for each logo analysis includes the number of viewing the total pages, the number of average page view per day, the number of basic page view, the number of page view per visit, the total number of hits, the number of average hits per day, the number of hits per visit, the number of visits, the number of average visits per day, the net number of visitors, average visitors per day, one-time visitors, visitors who have come more than twice, and average using hours, etc. These sites are deemed to be useful for utilizing data for the analysis of the situation and current status of rival companies as well as benchmarking. As keyword advertising exposes advertisements exclusively on search-result pages, competition among advertisers attempting to preoccupy popular keywords is very fierce. Some portal sites keep on giving priority to the existing advertisers, whereas others provide chances to purchase keywords in question to all the advertisers after the advertising contract is over. If an advertiser tries to rely on keywords sensitive to seasons and timeliness in case of sites providing priority to the established advertisers, he or she may as well make a purchase of a vacant place for advertising lest he or she should miss appropriate timing for advertising. However, Naver doesn't provide priority to the existing advertisers as far as all the keyword advertisements are concerned. In this case, one can preoccupy keywords if he or she enters into a contract after confirming the contract period for advertising. This study is designed to take a look at marketing for keyword advertising and to present effective strategies for keyword advertising marketing. At present, the Korean CPC advertising market is virtually monopolized by Overture. Its strong points are that Overture is based on the CPC charging model and that advertisements are registered on the top of the most representative portal sites in Korea. These advantages serve as the most appropriate medium for small and medium enterprises to use. However, the CPC method of Overture has its weak points, too. That is, the CPC method is not the only perfect advertising model among the search advertisements in the on-line market. So it is absolutely necessary that small and medium enterprises including independent shopping malls should complement the weaknesses of the CPC method and make good use of strategies for maximizing its strengths so as to increase their sales and to create a point of contact with customers.

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To Bid or Not to Bid? - Keyword Selection in Paid Search Advertising

  • Ma, Yingying;Sun, Luping
    • Asia Marketing Journal
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    • v.16 no.3
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    • pp.23-33
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    • 2014
  • The selection of keywords for bidding is a critical component of paid search advertising. When the number of possible keywords is enormous, it becomes difficult to choose the best keywords for advertising and then subsequently to assess their effect. To this end, we propose an ultrahigh dimensional keyword selection approach that not only reduces the dimension for selections, but also generates the top listed keywords for profits. An empirical analysis using a unique panel dataset from a large online clothes retailer that advertises on the largest search engine in China (i.e., Baidu) is presented to illustrate the usefulness of our approach.

Identifying Influencing Factors on the Price Per Click of Keyword Advertising : Focusing on Keyword Type, Search Number and Competition (온라인 키워드 광고 시장에서 광고 단가에 영향을 미치는 요인 분석 : 키워드 유형, 검색 횟수와 경쟁업체의 수를 중심으로)

  • Lee, Hong Joo
    • Journal of Information Technology Services
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    • v.11 no.3
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    • pp.257-267
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    • 2012
  • Many advertisers utilize sponsored search in search engines since customers want to find relevant information on their purchases from the search engines. Many factors have influences on price per click of the sponsored search. These influences are different based on the types of keywords such as search/experience or prominent/specific. However, differences of the influences have not been studied well. Thus, this study wants to identify the differences of the influences according the type of keywords. One month data of keyword advertising were collected from Naver. The influences of search number, click through rate, and competition on price per click were different according to the keyword types.

Development of Internet Advertising Method based on Text Keyword according to Mouse Action (마우스의 움직임에 따른 텍스트 키워드 기반 인터넷광고기법 개발)

  • 진교홍;이혜원
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.7 no.8
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    • pp.1691-1697
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    • 2003
  • The Internet is standing in the spotlight of a new medium of advertisement with explosive growth of market share of electronic commerce, several Internet advertising methods have been implemented. Among them, the banner advertising method is typically being used in the Internet, but the users are not willing to see the banner advertising, moreover that method shows low click rate. Accordingly we propose a new Internet advertising method that makes expose advertising content according to proper text keyword in the article of web pages. During user is reading a article of web page, when user puts mouse pointer over a text keyword, previously specified advertising content is appeared on the web page. The proposed method is based on the keyword advertising, and unlike banner advertising, various shape of images can be applied. Also whole web page could be used for advertising area, and the method does not affect loading delay time of web page.

A Study on the Factors Influencing Cost-per-Click of Sponsored Search Advertising (키워드 검색광고에서 클릭당 단가 결정에 영향을 미치는 요인에 대한 연구)

  • Sim, Gwang-Seop;Kim, Jong-U
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2007.11a
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    • pp.425-434
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    • 2007
  • The sponsored search has become significant channel of online advertising, and the large sized advertisers have appeared, so the sponsored search strategy is becoming more important. Since CPC(Cost-per-Click) advertising has different price according to keyword, it is difficult to manage the a lot of keywords at one time. So, the purpose of this study is to investigate the factors which influence on the cost-per-click of sponsored search advertising. That is, there are four factors: impression, CTR(Click through Rate), conversion rate, and keyword's length. for the regression analysis, we use the actual data which is gotten from an ad agency. The result of that, the impression and keyword's length influence cost-per-click positively. However, CTR & conversion rate have no influence on it unexpectedly.

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Analytical Study on Classification and Service Quality Improvement for Keyword & Blog Advertising Marketing Services (검색 광고 마케팅 서비스 유형 분석과 서비스 품질 개선방안)

  • Choi, Yoon-Ho;Lee, Jae-Won
    • The Journal of the Korea Contents Association
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    • v.15 no.11
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    • pp.456-466
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    • 2015
  • This study is focusing to the keyword and blog advertising marketing services that are implementing a viral marketing utilizing keyword searches of the search portal and advertiser's blogs with convergent way. Through a case study for the company operating the service to pinpoint consumers to the advertisers site by indirect exposure via keyword advertising blog at the top of the search results, we analyzed the primitive service operation model on transactional relationship between the business players. We have a research purpose to generate improvement alternatives for the company's keyword advertising marketing services and operation solution using the survey study on the service quality perception and the perceptional gap between user groups. As results of study, we founded 4 types of the service solution and 4 models of service operating architecture on the transactional relations, and we recommended some improvements on the service and solution operation based on the SERVQUAL questionnaire analysis of the difference between the ads sponsor group and ads agency group.

The Effect of Deal-Proneness in the Searching Pattern on the Purchase Probability of Customer in Online Travel Services (소비자 키워드광고 탐색패턴에 나타난 촉진지향성이 온라인 여행상품 구매확률에 미치는 영향)

  • Kim, Hyun Gyo;Lee, Dong Il
    • Journal of the Korean Operations Research and Management Science Society
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    • v.39 no.1
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    • pp.29-48
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    • 2014
  • The recent keyword advertising does not reflect the individual customer searching pattern because it is focused on each keyword at the aggregate level. The purpose of this research is to observe processes of customer searching patterns. To be specific, individual deal-proneness is mainly concerned. This study incorporates location as a control variable. This paper examines the relationship between customers' searching patterns and probability of purchase. A customer searching session, which is the collection of sequence of keyword queries, is utilized as the unit of analysis. The degree of deal-proneness is measured using customer behavior which is revealed by customer searching keywords in the session. Deal-proneness measuring function calculates the discount of deal prone keyword leverage in accordance with customer searching order. Location searching specificity function is also calculated by the same logic. The analyzed data is narrowed down to the customer query session which has more than two keyword queries. The number of the data is 218,305 by session, which is derived from Internet advertising agency's (COMAS) advertisement managing data and the travel business advertisement revenue data from advertiser's. As a research result, there are three types of the deal-prone customer. At first, there is an unconditional active deal-proneness customer. It is the customer who has lower deal-proneness which means that he/she utilizes deal-prone keywords in the last phase. He/she starts searching a keyword like general ones and then finally purchased appropriate products by utilizing deal-prone keywords in the last time. Those two types of customers have the similar rates of purchase. However, the last type of the customer has middle deal-proneness; who utilizes deal-prone keywords in the middle of the process. This type of a customer closely gets into the information by employing deal-prone keywords but he/she could not find out appropriate alternative then would modify other keywords to look for other alternatives. That is the reason why the purchase probability in this case would be decreased Also, this research confirmed that there is a loyalty effect using location searching specificity. The customer who has higher trip loyalty for specificity location responds to selected promotion rather than general promotion. So, this customer has a lower probability to purchase.

Analysis of the Empirical Effects of Contextual Matching Advertising for Online News

  • Oh, Hyo-Jung;Lee, Chang-Ki;Lee, Chung-Hee
    • ETRI Journal
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    • v.34 no.2
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    • pp.292-295
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    • 2012
  • Beyond the simple keyword matching methods in contextual advertising, we propose a rich contextual matching (CM) model adopting a classification method for topic targeting and a query expansion method for semantic ad matching. This letter reports on an investigation into the empirical effects of the CM model by comparing the click-through rates (CTRs) of two practical online news advertising systems. Based on the evaluation results from over 100 million impressions, we prove that the average CTR of our proposed model outperforms that of a traditional model.

Development of New Internet Advertising Method based on Text Keyword in Web Page (웹 페이지내의 텍스트 키워드를 기반으로 한 새로운 인터넷광고기법 개발)

  • 진교홍;이혜원
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.7 no.6
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    • pp.1202-1209
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    • 2003
  • With explosive growth of Internet users, the market share of electronic commerce becomes wider. Therefore the Internet is standing in the spotlight of a new medium of advertisement, and several Internet advertising methods have been implemented. However the banner advertising that is the typical internet advertising method is showing low click rate because of user's unconcern. Accordingly we propose a new Internet advertising method that makes expose advertising content on the background of web browser when user puts mouse pointer over a specified text. Internet users are willing to click a interesting text, just at that moment the advertising content is appeared on the background of web browser. Therefore we could expect high effectiveness of advertising and moreover after clicking the text, the advertising content is shown continually on the web browser. The proposed method, unlike banner advertising, various shapes of image can be applied and makes use of whole background of web page.