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A new methodology to measure effectiveness of search advertising


Stanford Reference:

12-028


Abstract


Stanford researchers have developed a powerful methodology which helps search engines and advertisers find the true causal position effects of search advertising. This methodology helps measure the effectiveness of advertising efforts and in particular the effectiveness of bidding to win a particular position (such as the top spot). It is simple to implement and does not require the collection of additional data over and above what is available to search engines already. It involves the application of a technique termed Regression Discontinuity to measure causal effects of positions in search engine advertising.

Stage of Research
- Simulation analyses showed that this regression discontinuity methodology is a feasible approach to measure causal effects in search advertising.
- Results of simulations are discussed in "Measuring Position Effects in Search Advertising: A Regression Discontinuity Approach"

Applications


  • Search advertising effectiveness for both search engine companies and advertisers
  • Measures causal position effects in search advertising contexts
  • This methodology can be adapted to other contexts that use competitive auctions

Advantages


  • Robust methology
  • Simple to implement
  • Cost effective – can run large scale experiments without requiring new data
  • Quantitative analysis– helps determine $ value of search advertising using click-through rates and sales orders vs. trial and error

Publications



Related Web Links



Innovators & Portfolio


  • Kirthi Kalyanam   
  • Sridhar Narayanan   

Date Released

 10/18/2013
 

Licensing Contact


Anne Kopf-Sill, Licensing Associate
(650)498-8015 (Business)
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Related Keywords


keyword auction   online auction   search auctions   advertising   internet advertising   online advertising   search advertising   internet: search tools   auctions   equity auctions   
 

   

  

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