KOREASCHOLAR

Paid search advertising is the most popular online advertising format, and many large firms allocate a considerable amount of their advertising budget to it. In contrast, small and medium-sized firms have a limited advertising budget that potentially forces them to experience the ineffectiveness of paid search advertising. In this study, we identify the various paid search advertising strategies that even small and medium-sized firms can implement and examine the effect of the different advertising strategies on the number of clicks as a primary advertising performance measure. Using the data regarding keyword advertising from a search engine, we find that advertisers can increase the number of clicks not only by increasing their bids, but also by optimal keyword selection, targeting, and active advertisement management. Our findings provide a practical insight that there are many other advertising strategies for the managers to utilize beyond budget efficiently.

• Sungha Jang(San Francisco State University)
• Alex Kim(Sungkyunkwan University)
• Jiho Yoon(Kansas State University)