Conversion potential: a metric for evaluating search engine advertising performance

Bernard James Jansen, Theresa B. Clarke

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Purpose: This 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/approach: A 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. Findings: Results 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/implications: Although the data set is large and covers a lengthy period of time, it is limited to one company in the retail sector. Practical implications: The 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/value: This 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.

Original languageEnglish (US)
Pages (from-to)142-159
Number of pages18
JournalJournal of Research in Interactive Marketing
Volume11
Issue number2
DOIs
StatePublished - Jan 1 2017

Fingerprint

Search engine
Factors
Advertising campaign
Retail sector
Key words
Planning
Design methodology
Marketing
Managers
Retailers

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

@article{73618042687a4aac8e498309f794902c,
title = "Conversion potential: a metric for evaluating search engine advertising performance",
abstract = "Purpose: This 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/approach: A 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. Findings: Results 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/implications: Although the data set is large and covers a lengthy period of time, it is limited to one company in the retail sector. Practical implications: The 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/value: This 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.",
author = "Jansen, {Bernard James} and Clarke, {Theresa B.}",
year = "2017",
month = "1",
day = "1",
doi = "10.1108/JRIM-07-2016-0073",
language = "English (US)",
volume = "11",
pages = "142--159",
journal = "Journal of Research in Interactive Marketing",
issn = "2040-7122",
publisher = "Emerald Group Publishing Ltd.",
number = "2",

}

Conversion potential : a metric for evaluating search engine advertising performance. / Jansen, Bernard James; Clarke, Theresa B.

In: Journal of Research in Interactive Marketing, Vol. 11, No. 2, 01.01.2017, p. 142-159.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Conversion potential

T2 - a metric for evaluating search engine advertising performance

AU - Jansen, Bernard James

AU - Clarke, Theresa B.

PY - 2017/1/1

Y1 - 2017/1/1

N2 - Purpose: This 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/approach: A 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. Findings: Results 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/implications: Although the data set is large and covers a lengthy period of time, it is limited to one company in the retail sector. Practical implications: The 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/value: This 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.

AB - Purpose: This 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/approach: A 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. Findings: Results 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/implications: Although the data set is large and covers a lengthy period of time, it is limited to one company in the retail sector. Practical implications: The 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/value: This 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.

UR - http://www.scopus.com/inward/record.url?scp=85022177131&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85022177131&partnerID=8YFLogxK

U2 - 10.1108/JRIM-07-2016-0073

DO - 10.1108/JRIM-07-2016-0073

M3 - Article

AN - SCOPUS:85022177131

VL - 11

SP - 142

EP - 159

JO - Journal of Research in Interactive Marketing

JF - Journal of Research in Interactive Marketing

SN - 2040-7122

IS - 2

ER -