We develop a two-stage consumer-level model of paid search advertising response based on standard aggregated data provided to advertisers by major search engines such as Google or Bing. The proposed model uses behavioral primitives in accord with utility maximization and allows recovering...

In paid search advertising on the Internet, marketers can bid for search engines to serve their text ads in response to keyword searches that are either generic or branded. A generic keyword does not contain branded words, e.g., quot;Hotels LAquot;; a branded keyword does, e.g., quot;Hilton...