Sunday, February 01, 2009

Fewer Searches, Higher Price

A recent paper shows empirical evidences that "search engine advertising is most valuable when firms have just a few hard-to-reach customers": lawyers will bid the price of a keyword query higher when there are fewer searches for it because they need a way to find these niche customers. In other words, the strength of search engine advertising is indeed in exploiting the long tail of advertsing which is impossible or difficult for traditional broadcast media.

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