Keyword Optimization in Sponsored Search Advertising: A Multi-Level Computational Framework
Yang, Y., Jansen, B. J., Yang, Y. C., Guo, X., & Zeng, D., (2019). Keyword Optimization in Sponsored Search Advertising: A Multi-Level Computational Framework. IEEE Intelligent Systems, 34(1), 32 - 42.
11 Pages Posted: 10 Jun 2019 Last revised: 16 Feb 2022
Date Written: May 24, 2018
Abstract
In sponsored search advertising, keywords serve as an essential bridge linking advertisers, search users and search engines. Advertisers have to deal with a series of keyword decisions throughout the entire lifecycle of search advertising campaigns. This paper proposes a multi-level and closed-form computational framework for keyword optimization (MKOF) to support various keyword decisions. Based on this framework, we develop corresponding optimization strategies for keyword targeting, keyword assignment and keyword grouping at different levels (e.g., market, campaign and adgroup). With two real-world datasets obtained from past search advertising campaigns, we conduct computational experiments to evaluate our keyword optimization framework and instantiated strategies. Experimental results show that our method can approach the optimal solution in a steady way, and it outperforms two baseline keyword strategies commonly used in practice. The proposed MKOF framework also provides a valid experimental environment to implement and assess various keyword strategies in sponsored search advertising.
Keywords: keyword strategy; keyword optimization; advertising strategy; search advertising
JEL Classification: M3
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