Exploring the effects of quality signals on search advertising performance: the moderating role of keyword attributes

Abstract

PurposeIn online exchange platforms' sponsored search advertising, the array of product quality signals within a keyword search results list plays a crucial role in shaping buyers' purchasing decisions. This research seeks to explore the impact of various quality signals – namely, ranking position, seller reputation and product price – on ad clicks. Additionally, it examines the role of keyword attributes, such as specificity and popularity, in modulating the effects of these quality signals on advertising clicks.Design/methodology/approachA total of 5,763 effective data points were collected from a leading B2B electronic platform company, and we employed negative binomial regression with Heckman correction methods to test the hypotheses.FindingsThe results indicate that in online exchange platforms, search ad clicks are significantly and positively affected by displayed signals such as ranking position, seller reputation and product price information. Notably, a U-shaped relationship emerges between product price and ad clicks. Furthermore, keyword specificity and popularity distinctly moderate the impact of these displayed signals on ad clicks within online exchange platforms.Originality/valueThis paper addresses the gap in existing research on search advertising by methodically analyzing the impact of various signals displayed in search results and how keyword attributes moderate ad clicks, all through a signaling theory lens.