Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171148
Authors: 
Coviello, Lorenzo
Gneezy, Uri
Götte, Lorenz
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6684
Abstract: 
Companies spend billions of dollars online for paid links to branded search terms. Measuring the effectiveness of this marketing spending is hard. Blake, Nosko and Tadelis (2015) ran an experiment with eBay, showing that when the company suspended paid search, most of the traffic still ended up on its website. Can findings from one of the largest companies in the world be generalized? We conducted a similar experiment with Edmunds.com, arguably a more representative company, and found starkly different results. More than half of the paid traffic is lost when we shut off paid-links search. These results suggest money spent on search-engine marketing may be more effective than previously documented.
Subjects: 
field experiment
online advertising
JEL: 
C19
C93
D03
Document Type: 
Working Paper
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