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Conversion potential: a metric for evaluating search engine advertising performance

Conversion potential: a metric for evaluating search engine advertising performance PurposeThis research is based on the premise that current metrics for search engine advertising (SEA) are misleading and do not sufficiently allow managers to evaluate traffic and conversions simultaneously. This study aimed to conceptually develop and assess conversion potential (CvP) as a unifying construct for both measuring and evaluating the performance of SEA campaigns.Design/methodology/approachA data set of nearly seven million records covering almost three years of a multi-million-dollar keyword marketing campaign from a major US retailer was used to validate the construct of CvP.FindingsResults empirically validate how CvP measures both campaign traffic and sales in SEA, using the optimization factor of ad rank, which is one of many possible factors.Research limitations/implicationsAlthough the data set is large and covers a lengthy period of time, it is limited to one company in the retail sector.Practical implicationsThe research instantiates CvP as a metric for overall SEA account performance while demonstrating that it is a practical tool for future campaign planning. The metric simultaneously incorporates a sales ratio and a traffic ratio.Originality/valueThis is the first study to formalize and provide a working definition of CvP in the academic literature. The contribution is a theoretical and practical managerial framework to mutually evaluate, measure and make decisions about SEA efforts. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Research in Interactive Marketing Emerald Publishing

Conversion potential: a metric for evaluating search engine advertising performance

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2040-7122
DOI
10.1108/JRIM-07-2016-0073
Publisher site
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Abstract

PurposeThis research is based on the premise that current metrics for search engine advertising (SEA) are misleading and do not sufficiently allow managers to evaluate traffic and conversions simultaneously. This study aimed to conceptually develop and assess conversion potential (CvP) as a unifying construct for both measuring and evaluating the performance of SEA campaigns.Design/methodology/approachA data set of nearly seven million records covering almost three years of a multi-million-dollar keyword marketing campaign from a major US retailer was used to validate the construct of CvP.FindingsResults empirically validate how CvP measures both campaign traffic and sales in SEA, using the optimization factor of ad rank, which is one of many possible factors.Research limitations/implicationsAlthough the data set is large and covers a lengthy period of time, it is limited to one company in the retail sector.Practical implicationsThe research instantiates CvP as a metric for overall SEA account performance while demonstrating that it is a practical tool for future campaign planning. The metric simultaneously incorporates a sales ratio and a traffic ratio.Originality/valueThis is the first study to formalize and provide a working definition of CvP in the academic literature. The contribution is a theoretical and practical managerial framework to mutually evaluate, measure and make decisions about SEA efforts.

Journal

Journal of Research in Interactive Marketing – Emerald Publishing

Published: Jun 12, 2017

References

  • A novel approach for bidding on keywords in newly set-up search advertising campaigns
  • Location, location, location: an analysis of profitability of position in online advertising markets