Paid search: Modeling rank dependent behavior

Abstract

Using disaggregated data from a Chinese search engine we jointly model ad rank and performance for hospitality related keyword searches. As a result of our modeling framework we can better determine the optimal keyword bidding strategy for an advertiser given the search engine's control over ad rank. Our approach removes rank bias in estimating keyword bidding performance. We then illustrate the impact of branded versus generic keyword searches, outlining profit maximizing keyword bidding. © 2014 IEEE.