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Sponsored Search as a Strategic E-Service

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  • Roumen Vragov

    (Baruch College, USA)

Abstract

In addition to helping consumers navigate the web search engines offer a new kind of e-service known as sponsored search. A search engine provides an auction interface to advertisers that allows them to be included in a list of sponsored links. Consumers then search the list to find the best deal. This paper uses a version of traditional consumer price search models from economic theory to evaluate the extent to which consumers and advertisers can rely on sponsored search as an effective strategic infomediary. The article also describes steps that the manager of the search engine can take to improve the sponsored search service. The findings are relevant to web advertising as well as to mobile advertising.

Suggested Citation

  • Roumen Vragov, 2009. "Sponsored Search as a Strategic E-Service," International Journal of E-Services and Mobile Applications (IJESMA), IGI Global, vol. 1(1), pages 21-37, January.
    • Handle: RePEc:igg:jesma0:v:1:y:2009:i:1:p:21-37
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