Even as online advertising continues to grow, a central question remains: Who to target? Yet, advertisers know little about how to select from the hundreds of audience segments for targeting (and combinations thereof) for a profitable online advertising campaign. Utilizing insights from a field...

In search engine marketing, such as on Google, advertisements’ ranking and prices paid per click result from generalized, second-price, sealed bid auctions that weight the submitted bids for each keyword by the quality of an advertisement. Conventional wisdom suggests that advertisers can only...

This article reports on a large-scale implementation of marketing science models to solve the bidding problem in search engine advertising. In cooperation with the online marketing agency SoQuero, the authors developed a fully automated bidding decision support system, PROSAD (profit optimizing...

Many advertisers hire agencies to run their search engine marketing campaigns; increasingly, they are using innovative performance-based compensation plans, in which they pay the agency a fee for each conversion (i.e., acquired customer) but require the agency to pay all search engine marketing...