A Quantitative Study on How Internet Search Ads Generate Consumer Traffic to Advertisers' Website

Abstract

This study aims to measure the impact of these two variables on consumers' ‘click-through’ rates (the number of users that click on the ad compared to the number of times the ad is delivered). The result is as follows. First, search ads play a critical role in drawing consumers to advertisers' websites. Once search ads are placed, the number of visitors increased tenfold. Secondly, when search ads are keyed to highly-involved words such as ‘IDC’, ‘hosting’ and ‘co-location’, click-through rates significantly fluctuate according to the type of advertising message. In this case, consumers respond much more positively to ads highlighting credibility and product quality than to ads with emphasis on sales and events. Thirdly, the placement of search ads also matters. The ad placed first in the search list overpowers ads in the third or fifth place in terms of click-through rates. However, there was no significant difference of click-through rates between ads in the third place and ads in fifth. Lastly, when estimating which variable plays the bigger role in bringing traffic to advertisers' websites, consumers are more receptive to the substance of the advertising message than to its placement, under the circumstances of high involvement.

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