Effect of advertisement and sponsored links on search engines: Comparative study

Author(s):  
Nripendra Dwivedi ◽  
Abhay Bansal
2015 ◽  
Vol 31 (1) ◽  
pp. 12-14 ◽  

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds impartial comments and places the article in context. Findings – Sponsored search accounts for around half of the current market which is dominated by major players Google, Yahoo and Bing. This process refers to advertisements chosen for each page and secured by companies that succeed in a bidding contest. Firms pay the search engines when users click on the sponsored links within their advertisement. When it comes to effective ways of attracting customers, sponsored search is up with the best of them. Not surprisingly, competition in the environment is becoming ever tougher. It is thus vital that businesses find ways to enhance the performance of their ads. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2016 ◽  
Vol 8 (3) ◽  
pp. 156-188 ◽  
Author(s):  
Alexandre de Cornière

Search engines enable advertisers to target consumers based on the query they have entered. In a framework in which consumers search sequentially after having entered a query, I show that such targeting reduces search costs, improves matches and intensifies price competition. However, a profit-maximizing monopolistic search engine imposes a distortion by charging too high an advertising fee, which may negate the benefits of targeting. The search engine also has incentives to provide a suboptimal quality of sponsored links. Competition among search engines can increase or decrease welfare, depending on the extent of multi-homing by advertisers. (JEL D43, D83, L13, L86, M37)


2012 ◽  
Vol 14 (3) ◽  
pp. e74 ◽  
Author(s):  
Liupu Wang ◽  
Juexin Wang ◽  
Michael Wang ◽  
Yong Li ◽  
Yanchun Liang ◽  
...  

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