Research Recap

Strategic Pricing in Keyword Ads

Key Takeway

Using a hierarchical Bayesian model, researchers find that extremely priced displays tend to increase customer click-through behavior, but inhibit interactive searches for more detailed product information. This suggests that advertisers can use differentiated price strategies to attract exploratory consumers versus those who exhibit deeper engagement.

By using MSI.org you agree to our use of cookies as identifiers and for other features of the site as described in our Privacy Policy.