The Challenge of a Prominent Position: Decomposing Shopping Goals in Sponsored Search Advertising

Abstract

Some sponsored search advertisers might benefit from a top ranking for its primary effect, while others might suffer a loss when their product advertising is located in less prominent positions. This phenomenon could also reduce the efficiency of consumer decisions, leading to disadvantage in terms of product information. Thus, exploring strategies that reduce advertisers’ reliance on the position effect is important. Drawing on shopping goals theory, this study explores the moderating effect of consumers’ shopping goals through product type, promotion information, and keyword specificity. It tests the hypothesized structural model through hierarchical linear modeling, using a unique data set from a well-known Chinese e-commerce platform. The results show that both click-through and conversion rates decrease with the drop in advertising position. However, keyword specificity and the promotion information embedded in keywords, as well as experience (vs. search) products, can reduce the effect of position rank on both click-through and conversion rates. Additional analyses provide valuable insights for managers to improve their advertising effectiveness and apply efficient keyword strategies.

Additional information

Funding

This work was supported by the National Social Science Foundation of China (grant no. 21ZDA026, 19XGL014), National Natural Science Foundation of China (grant no. 71972021, 71672192), the Humanity and Social Science Foundation of Ministry of Education of China (grant no. 18XJA630004), the Fundamental Research Funds for the Central Universities (grant no. 2020CDJSK02YJ08, 2021CDJSKCG20, 02030051071015), and High Level Talents Research Startup Project of Chongqing Technology and Business University (grant no. 1855050).

Notes on contributors

Qing Huang

Qing Huang (Master degree, Chongqing University) is a doctoral student, School of Economics and Business Administration, Chongqing University, China.

Bingjia Shao

Bingjia Shao (PhD, Southwest University) is a professor, School of Economics and Business Administration, Chongqing University, China.

Xiaoling Li

Xiaoling Li (PhD, Wuhan University) is a professor, School of Economics and Business Administration, Chongqing University, China.

Tao He

Tao He (Bachelor degree, Chongqing University) is a graduate student, Wuhan University, Wuhan, China.

Juanyi (Sunny) Liu

Juanyi (Sunny) Liu (Bachelor degree, University of California) is a doctoral student, Business School, University of Western Australia.

Xinjian Li

Xinjian Li (PhD, Huazhong Agricultural University) is an associate professor, School of Business Administration, Chongqing Technology and Business University, Chongqing, China.