Databases Reference
In-Depth Information
difference in both cost and in gross revenue if each advertisement in the set of
ads were moved up in rank and down in rank. Does this change your bidding
strategy?
Referring to the process of sponsored-search figure, what searcher motivations,
•
signals and ad attributes are relevant for your market?
Conclusion
Our theoretical basis for understanding advertisements in sponsored search is sig-
naling theory and its related information-seeking companion, information foraging
theory. Our ads are external stimuli that the searcher needs to pick up as a signal and
hopefully use to take action.
There are several principles that can guide us at the individual level. Namely
these are that searchers will seek to expend the least amount of effort; that they will
access the information that is easiest to obtain, all else being equal; and that the
more choices a searcher has, the longer they will take and the more they will chunk
information.
What does this mean to the advertiser? Certainly, the attributes of the ad must
be novel and relevant. Novel means being different from other ads while still being
relevant enough to be a signal for the searcher. Also, rank of the ad is important. It
is generally best to be first or last.
It is the advertisements that affect the transition from searcher to potential cus-
tomer. With transition, the perspective of these people changes, and therefore our
models of the people need to transition also.
With our basis of general human information behavior for keyphrases and adver-
tisements, we now explore this person called the consumer who is actually engaging
with these keyphrases and advertisements in sponsored search.
What is the process of consumers as they seek to determine whether or not to pur-
chase our product or service? This is what we discuss in the next chapter.
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