Search Engine Advertising Effectiveness in a Multimedia Campaign

German Zenetti, Tammo H.A. Bijmolt, Peter S.H. Leeflang, and Daniel Klapper
International Journal of Electronic Commerce,
Volume 18, Number 3, Spring 2014, pp. 7-38.

Abstract:  Search engine advertising has become a multibillion-dollar business and one of the dominant forms of advertising on the Internet. This study examines the effectiveness of search engine advertising within a multimedia campaign, with explicit consideration of the interaction effects between search engine advertising and television and banner advertising. An advertising tracking study with about 300 respondents interviewed before and about 4,700 respondents interviewed after the advertising campaign examines the effects on four consumer metrics: advertising awareness, brand awareness, brand image, and brand consumption. We estimate advertising effectiveness and control for correlations across the four ordinal response metrics using a multivariate ordered probit model. The results show that search engine advertising has significant effects on several consumer metrics, even among consumers who do not click on the sponsored advertisement. Television advertising also affects the consumer metrics. However, a negative interaction effect emerges between search engine advertising and television advertising. Banner advertising exerts a positive impact, but only in combination with television advertising. These substantial interaction effects indicate that firms must consider the investments in various media channels simultaneously when they design multimedia campaigns.

Key Words and Phrases: Advertising effectiveness, banner advertising, multimedia advertising campaign, online advertising, search engine advertising, search engines, television advertising.