Search Engine Advertising: Channel Substitution When Pricing Ads to Context

• 成果类型: Article
• 署名作者: Goldfarb, Avi; Tucker, Catherine E.
• 署名单位: University of Toronto; Massachusetts Institute of Technology (MIT)
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.1100.1287
• 发表日期: 2011
• 页码: 458-470
• 关键词: advertising and media; information systems; IT policy and management; electronic commerce; search engine advertising

摘要

We explore substitution patterns across advertising platforms. Using data on the advertising prices paid by lawyers for 139 Google search terms in 195 locations, we exploit a natural experiment in ambulance-chaser regulations across states. When lawyers cannot contact clients by mail, advertising prices per click for search engine advertisements are 5%-7% higher. Therefore, online advertising substitutes for offline advertising. This substitution toward online advertising is strongest in markets with fewer customers, suggesting that the relationship between the online and offline media is mediated by the marketers' need to target their communications.