Presentations

Competitive Advertising on Brand Search

Andrey Simonov, Columbia Business School

Should a company bid on competitors' keywords in search engine advertising? Andrey Simonov will present a large-scale experiment on Bing to study the effectiveness of such competitive advertising. Findings show that competitors can steal up to 20% of the focal brand's traffic, however, the “stolen” clicks are of low quality, with 42.6% of consumer returning to Bing in less than 30 seconds after clicking competitors’ ad (“quick back” event). Using these results, Andrey will discuss the implications for focal brands, platforms, and consumer choice, including the degree of customer confusion and social costs imposed by competitive advertising

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