Which keyword design increases the click and purchase probability? An empirical analysis of content-related, formal and competition-related design criteria

Abstract In online retail, the majority of consumers use a search engine before making a purchase decision. Search engine advertising is important for the commercial use of a search engine. This study analyzes the influence of content-related, formal and competition-related criteria for the keyword design on click and purchase probability. Using logistic regression, we analyze the click and purchase probabilities of various keywords based on an extensive data set from an e-commerce retailer. The empirical study shows that keyword specificity and quality positively impact click and purchase probability, while the number of product details and the distance of a bit have a negative effect. Two of the three formal design criteria show little to no significant influence on the target variables. The results provide advertisers with insights into how they should design their keywords. They should pay particular attention to the content-related keyword design criteria and the quality of the keyword.