Selection of Best Keywords: A Poisson Regression Model

Abstract

With the rapid development of the Internet and information technology, consumers have increasingly begun to acquire information through search engines, thus creating profitable advertising opportunities and advancing the practice of paid search advertising. For paid search advertising, a key issue is determining which keywords to bid on, because the total number of possible keywords is huge. To provide theoretical guidance, this study proposes a statistical model that links advertising effectiveness to keyword characteristics. Through empirical tests with a real data set obtained from the Web site of a service company in China, this research reveals that parsing features of keywords affects their advertising effectiveness, which can help advertisers create and select new keywords for paid search advertising campaigns.

Keywords: Search Engine Marketing, Paid Search Advertising, Keyword, Poisson Regression

JEL Classification: M31, M37