Search engine marketing for different competition modes - Interfirm and intrafirm

Xueli Zhang, Defeng Yang, Can Li
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Abstract

Brands seeking for prominent positions in online consumer search may invest in two types of search engine marketing: paid search marketing (PSM) and search engine optimization (SEO). This paper investigates how firms should allocate marketing resources between PSM and SEO under different competition modes (interfirm and intrafirm competition). We develop an analytical model where within an interfirm competition, two brands compete for every step, while for the intrafirm competition, multi-brand firm coordinates the search engine marketing decisions for its brands, but delegates the price decisions to the brand managers. We find that the resource allocation decision may depend on the firm’s brand strength in organic search. Our analysis shows an increasing curve relation between resources allocated to PSM and the brand strength for interfirm competition and inverted-U shape for intrafirm competition. More specifically, as the brand strength goes up, for the interfirm competition, the resources allocated to PSM increase till 100%, while it should increase only when brand strength is sufficiently low, but decrease when brand strength is high for the intrafirm competition. This nontrivial result underscores the challenge facing a multi-brand firm in balancing between maximizing the search prominence for the category and minimizing the internal competition.
不同竞争模式下的搜索引擎营销——企业间和企业内部
寻求在在线消费者搜索中占据突出位置的品牌可能会投资两种类型的搜索引擎营销:付费搜索营销(PSM)和搜索引擎优化(SEO)。本文研究了在不同的竞争模式(企业间竞争和企业内部竞争)下,企业应如何在PSM和SEO之间配置营销资源。我们开发了一个分析模型,其中在公司间竞争中,两个品牌竞争每一步,而在公司内部竞争中,多品牌公司为其品牌协调搜索引擎营销决策,但将价格决策委托给品牌经理。我们发现资源配置决策可能取决于公司在有机搜索中的品牌实力。我们的分析表明,在企业间竞争中,分配给PSM的资源与品牌实力呈上升曲线关系,在企业内部竞争中呈倒u型关系。更具体地说,随着品牌强度的增加,对于企业间竞争,分配给PSM的资源增加到100%,只有当品牌强度足够低时,分配给PSM的资源才会增加,而对于企业内部竞争,当品牌强度很高时,分配给PSM的资源会减少。这个重要的结果强调了一个多品牌公司所面临的挑战,即如何在最大限度地提高该品类的搜索突出性和最大限度地减少内部竞争之间取得平衡。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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