Analysing clickstream data: Do paid and organic search affect each other?

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

Investments in both paid and organic search are crucial for today's online retailer. In this paper, we analyse how consumers respond to organic and paid search advertising and gain insight into the interrelationship between these online marketing channels. We use a binary logit model and Markov-Chain-Monte-Carlo techniques and analyse the interaction effects between paid and organic search and the conversion probability based on clickstream data from a major electronic retailer. Our findings indicate that there is a positive relationship: when consumers interact with both paid and organic search, a strong positive effect occurs towards the conversion probability in the short-term compared to when users only interact with one channel. Our findings are valuable for organisations in regards to their online marketing strategies and budgeting.

OriginalspracheEnglisch
Aufsatznummer5
ZeitschriftInternational Journal of Electronic Business
Jahrgang13
Ausgabenummer2/3
Seiten (von - bis)205-215
Anzahl der Seiten11
ISSN1470-6067
DOIs
PublikationsstatusErschienen - 04.04.2017

    Fachgebiete

  • Wirtschaftsinformatik - Paid search advertising, organic search, hierarchical Bayesian model, search engines, SEA, Search engine advertising, SEO, search engine optimisation, cklickstream analysis, Online Marketing

DOI