How to Design Keywords in Search Engine Advertising: A Multi-group Comparison Based on the Search Volume of the Product Type

Abstract Extant studies addressing keyword design in search engine advertising do not account for the popularity of the product type being promoted. We close this research gap with an empirical study using quantitative data from a German online retailer over three years. We find the search volume of the advertised product type should be considered when designing keywords. To simultaneously increase the click-through rate and save click costs, advertisers should only increase the number of product details and the keyword quality for product types with a high search volume. This research demonstrates how keywords can be designed according to product type in order to utilize the available advertising budget in a targeted manner.