Ppc Performance And Its Influencing Factors In The Empirical Analysis

Since 1970, the start of Internet applications, Internet technology has undergone a crazy non-rational stage of development. After went through the re-engineering phase, it now has entered into the far-reaching and deep evolution phase of the web2.0 implications era. In the last 40 years, the economic development of the Internet in China was overwhelming. From 2005 to 2010, the development rate of the Internet economy was much faster than domestic GDP growth rate. Internet application development has made a profound impact on the domestic economy. Especially in recent years, the web search technology has been fully developed. Currently the user amount of search engines has taken more than 70% of the total number of all Internet users. The number of search engine user has exceeded 200 million. The current instant messaging service, e-mail services and search engines have become the three major applications of the internet. Since 2000, first launched, the sponsored search technology which was carried by the web search platform has rapidly captured both the advertisers and search engine companies, attributing to is high precision, low barriers to entry, and easy cost control advantages. The sponsored search technology now becomes the main revenue model of the domestic and international search engines. Under this background, this paper will focus on the empirical research by collecting the real costs and benefits data of advertisers from the sponsored search in Taobao to make up for previous lack of the research in this region and estimate the practical effect of the sponsored search. This paper will propose two new concepts:the direct and cross-category performance, to find out the reason of the cross-category performance by analyzing the different customer behavior in the sponsored search on-line shopping environment. In addition, analyze the relationship between the direct and cross-category performance and the factors which affect both of them. This paper will first bring out the literature review of the theoretical research of the sponsored search region both in and abroad to build the theoretical background of the related region. The second part of this paper will introduce the background and features of the empirical data by presenting the descriptive statistical research conclusions. The main part of this paper will be constructed by the theoretical assumptions and econometric model designing, which break the whole article into three blocks:the total click amount model; direct sale amount model and indirect sale model (the cross-category performance). The next part will show the result of regression analysis and discuss all the findings in this empirical research. Finally, based on all the findings, this paper will conclude both the theoretical recommendations and application-use suggestion, followed by the improve advices for the future research. Considering all the findings in this research, the conclusion and suggestion will be brought out both theoretically and practically:1. increasing the number of the sponsored search words will lead to better affect on the performance than raising the bid price for each sponsored search words.2. The goods attribute and business purposes should be fully considered to make the right decision to choose the sponsored search words.3. The goods which can lead to relate-purchase should be considered to promote by the sponsored search promotion, since the indirect sales amount can be raised by the direct sales performance.