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Running and Chasing -- The Competition between Paid Search Marketing and Search Engine Optimization

Published: 06 January 2014 Publication History
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  • Abstract

    As search engine is leading the revenue growth in online marketing field, the competition of search engine marketing between paid search marketing (PSM) by search engine providers (SEPs), and search engine optimization (SEO) provided by search engine optimization firms, is white-hot. While PSM is simply for advertisers to buy the top ranks in sponsored links, SEO tries to optimize advertisers' websites by free-riding search engine's organic searching results. This study aims to investigate this competition by analytical modeling regarding organic search quality. We focus on sustainability conditions of SEO firms, investment analysis of SEO firms, and profit analysis of SEP. We find that a search engine advertising market is led by SEP, and the competition between PSM and SEO is a game of running and chasing. Specifically, better algorithm effectiveness of search engines promotes profitability of both PSM and SEO, and algorithm robustness of search engines negatively affects the survival of SEO firms in the market.

    Cited By

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    • (2023)How search engine marketing influences user knowledge gainProceedings of the 2023 Conference on Human Information Interaction and Retrieval10.1145/3576840.3578297(475-478)Online publication date: 19-Mar-2023
    • (2022)Does Search Engine Optimization come along with high-quality content?Proceedings of the 2022 Conference on Human Information Interaction and Retrieval10.1145/3498366.3505811(123-134)Online publication date: 14-Mar-2022
    • (2021)The influence of search engine optimization on Google's resultsProceedings of the 13th ACM Web Science Conference 202110.1145/3447535.3462479(12-20)Online publication date: 21-Jun-2021

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      Published In

      cover image Guide Proceedings
      HICSS '14: Proceedings of the 2014 47th Hawaii International Conference on System Sciences
      January 2014
      5085 pages
      ISBN:9781479925049

      Publisher

      IEEE Computer Society

      United States

      Publication History

      Published: 06 January 2014

      Author Tags

      1. paid search
      2. search engine marketing
      3. search engine optimization
      4. sponsored links

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      Cited By

      View all
      • (2023)How search engine marketing influences user knowledge gainProceedings of the 2023 Conference on Human Information Interaction and Retrieval10.1145/3576840.3578297(475-478)Online publication date: 19-Mar-2023
      • (2022)Does Search Engine Optimization come along with high-quality content?Proceedings of the 2022 Conference on Human Information Interaction and Retrieval10.1145/3498366.3505811(123-134)Online publication date: 14-Mar-2022
      • (2021)The influence of search engine optimization on Google's resultsProceedings of the 13th ACM Web Science Conference 202110.1145/3447535.3462479(12-20)Online publication date: 21-Jun-2021

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