SEM: Ad Placement Can Be Used for Targeting
ADOTAS – After discovering that the second paid search ad tends to get more eye time than the highest listed one, I stumbled upon another interesting paid search study, this time a group effort by McGill University’s Desautels Faculty of Management and the University of Maryland’s Robert H. Smith School of Business and just published in Information Systems Research, the journal of the Institute for Operations Research and the Management Sciences Information Systems Research (Yes, INFORMS).
Studying the click-through rates of paid search ads, the academics discovered that people clicking on the top-listed paid search link tended to be more interested in the quality of a product while those clicking on the lower-ranked ads are more concerned about price. Ranking in search results could be used as a targeting mechanism.
In theory, lead author and McGill professor Animesh Animesh suggests attuning landing pages to the ranking of the paid search ads — e.g., someone who clicked a lower link could be shown a page with discounts. To put this data to use, advertisers and marketers would need to develop a system for monitoring the ranking of clicked ads.
Reader Comments.
We started doing ad position studies in 2002 or 2003. There are major differences in costs, response rates, conversions, etc., based on position.
Almost anyone buying clicks knows that position Number 1 is fraught with difficulties, notably net cost per action.
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