Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-77c89778f8-m8s7h Total loading time: 0 Render date: 2024-07-19T12:23:08.825Z Has data issue: false hasContentIssue false

8 - The Serious Game of Bidding on Keywords

Published online by Cambridge University Press:  05 August 2011

Jim Jansen
Jim Jansen
Affiliation:
Pennsylvania State University
Get access

Summary

All of a sudden, we realized we were in the auction business.

Eric Schmidt, Google’s second CEO

As Schmidt notes in the epigraph, major sponsored-search platforms are partly major auction houses. How does this auction affect our frame shop business?

In the course of developing the advertising for our frame shop, we have performed an analysis of our customers to target our efforts to those most likely to buy our products. We have performed market research, understanding how we will evaluate our advertising’s return on investment. We have also reviewed the concepts of branding, advertising, and marketing to provide direction to our overall endeavor. Finally, we have designed our ads to appeal to potential customers and selected the keyphrases that we want to trigger our ads.

Type
Chapter
Information
Understanding Sponsored Search
Core Elements of Keyword Advertising
 , pp. 176 - 201
Publisher: Cambridge University Press
Print publication year: 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Levy, S. 2009. “Secret of Googlenomics: Data-Fueled Recipe Brews Profitability.” , Retrieved April 4, 2011, from http://www.wired.com/culture/culturereviews/magazine/17–06/nep_googlenomics
Doyle, R. A. and Baska, S. 2002. “History of Auctions: From Ancient Rome to Today’s High-Tech Auctions.” Retrieved April 4, 2011, from http://www.absoluteauctionrealty.com/history_detail.php?id=5094
Peterson, K. 2006. Microsoft’s adCenter Is Google, Yahoo! Rival. (May 4). The Seattle Times, http://seattletimes.nwsource.com/html/businesstechnology/2002970721.
McAeee, R. P. and McMillan, J. 1987. “Auctions and Bidding.” Journal of Economic Literature, vol. 25(2), pp. 699–738.
Krishna, V. 2002. Auction Theory. San Diego, CA: Academic Press.
Varian, H. R. 2007. “Position Auctions.” International Journal of Industrial Organization, vol. 25(6), pp. 1163–1178.
Surowiecki, J. 2004. The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations. New York: Random House.
Jansen, B. J. and Mullen, T. 2008. “Sponsored Search: An Overview of the Concept, History, and Technology.” International Journal of Electronic Business, vol. 6(2), pp. 114–131.
Zhou, Y. and Lukose, R. 2006. “Vindictive Bidding in Keyword Auctions.” In Second Workshop on Sponsored Search Auctions, Conference on Electronic Commerce (EC’05), Ann Arbor, MI.
Edelman, B. and Ostrovsky, M. 2007. “Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords.” American Economic Review, vol. 9(1), pp. 242–259.
Urbany, J. E., Dickson, P. R., and Wilkie, W. L. 1989. “Buyer Uncertainty and Information Search.” Journal of Consumer Research: An Interdisciplinary Quarterly, vol. 16(2), pp. 208–215.
Rosso, M. A. and Jansen, B. J. 2010. “Brand Names as Keywords in Sponsored Search Advertising.” Communications of the Association for Information Systems, vol. 27(1), Article 6.
Goldman, E. 2010. Google Gets Complete Win in Rosetta Stone Case. (August 4). Retrieved February 2, 2011, from http://blog.ericgoldman.org/archives/2010/08/google_gets_com.htm
Brooks, N. 2004. The Atlas Rank Report I: How Search Engine Rank Impacts Traffic. (July). Retrieved August 1, 2004, from http://www.atlassolutions.com/uploadedFiles/Atlas/Atlas_Institute/Published_Content/RankReport.pdf
Brooks, N. 2004. The Atlas Rank Report II: How Search Engine Rank Impacts Conversions. (October). Retrieved January 15, 2005, from http://www.atlassolutions.com/pdf/RankReportPart2.pdf
Athey, S. and Nekipelov, D. 2010. A Structural Model of Sponsored Search Advertising Auctions (working paper). (May). Retrieved February 2, 2011, from http://www.stanford.edu/group/SITE/SITE_2010/segment_3/segment_3_papers/nekipelov.pdf
Advertising Age 2005. “38 Years of Super Bowl Ad Stats.” In : Advertising Age.
Associated Press. 2010. “Super Bowl Ad Prices Dip, but Still Pricey.” In .
Shah, S. 2010. Analyze This: The Subtle Science of Bidding, Part 1: The Real Story. (June 18). Retrieved January 19, 2011, from http://searchengineland.com/the-subtle-science-of-bidding-part-2-brand-keyword-management-45387
Shah, S. 2010. Analyze This: The Subtle Science of Bidding, Part 2: Brand Keyword Management. (July 16). Retrieved January 19, 2011, from http://searchengineland.com/the-subtle-science-of-bidding-part-2-brand-keyword-management-45387
Shah, S. 2010. Analyze This: The Subtle Science of Bidding, Part 3: Second Order Effects. (August 13). Retrieved January 19, 2011, from http://searchengineland.com/the-subtle-science-of-bidding-part-3-second-order-effects-46983
Lahaie, S. 2006. “An Analysis of Alternative Slot Auction Designs for Sponsored Search.” In 7th ACM Conference on Electronic Commerce, Ann Arbor, MI, pp. 218–227.
Libby, B. (2010). Search Marketing Advice from Machiavelli. Retrieved January 19, 2011, from http://www.thesearchagents.com/2010/07/search-marketing-advice-from-machiavelli/
Ostrovsky, M. and Schwarz, M. 2009. Reserve Prices in Internet Advertising Auctions: A Field Experiment (Research Paper No. 2054). (December 24). Retrieved February 2, 2011, from http://ssrn.com/abstract=1573947
Ausubel, L. M. and Milgrom, P. 2006. “The Lovely but Lonely Vickrey Auction.” In Combinatorial Auction, Cramton, P., Shoham, Y., and Steinberg, R., Eds. Cambridge, MA: MIT Press, pp. 17–40.
Rothkopf, M. H. 2007. “Thirteen Reasons Why the Vickrey-Clarke-Groves Process Is Not Practical.” Operations Research, vol. 55(2), pp. 191–197.
Aggarwal, G., Goel, A., and Motwani, R. 2006. “Truthful Auctions For Pricing Search Keywords.” In 7th ACM Conference on Electronic Commerce, Ann Arbor, MI.
Cary, M., Das, A., Edelman, B., Giotis, I., Heimerl, K., and Karlin, A. R. 2007. “Greedy Bidding Strategies for Keyword Auctions.” In 8th ACM Conference on Electronic Commerce (EC’07), San Diego, CA, pp. 262–271.
Lahaie, S., Pennock, D., Saberi, A., and Vohra, R. 2007. “Sponsored Search Markets.” In Algorithmic Game Theory, Nisan, R. and Tardos, V., Eds. Cambridge: Cambridge University Press, pp. 4–25.
Nash, J. 1950. “Equilibrium Points in N-Person Games.” Proceedings of the National Academy of Sciences, vol. 36(1), pp. 48–49.
Nash, J. 1951. “Non-Cooperative Games.” The Annals of Mathematics, vol. 54(2), pp. 286–295.
Easley, D. and Kleinberg, J. 2010. Networks, Crowds, and Markets: Reasoning About a Highly Connected World. Cambridge: Cambridge University Press.
Feng, J., Bhargava, H., and Pennock, D. M. 2007. “Implementing Sponsored Search in Web Search Engines: Computational Evaluation of Alternative Mechanisms.” Informs Journal on Computing, vol. 19(1), pp. 137–148.

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×