Tales of two similar advertising channels: online sales performance between SSA_Taobao and SSA_Tmall

Purpose This study aims to investigate the interaction effect between two similar yet distinct forms of sponsored search advertising (SSA) on an e-commerce platform: SSA_Taobao (SSA for Taobao stores) and SSA_Tmall (SSA for Tmall stores). Furthermore, it examines how intra-channel (reviews of the advertised product from the same store type) and inter-channel (reviews of the advertised product from the other store type) review characteristics, specifically the volume of negative and total reviews, moderate the sales effectiveness of these two advertising channels. Design/methodology/approach Based on advertising data provided by a seller specializing in internationally renowned brand hair care products on the Taobao platform, this study employs a two-way fixed effects panel regression model to test the research hypotheses. To address potential endogeneity issues and ensure the robust-ness of the findings, this paper implements a series of validity verification methods. Findings We find a positive interaction between SSA_Taobao and SSA_Tmall. Besides, while SSA_Taobao's performance is sensitive to negative reviews (both intra- and inter-channel), SSA_Tmall remains ro-bust against such feedback. Despite this difference, both channels benefit from a higher volume of total reviews. Originality/value This study offers the first empirical evidence that treats similar yet distinct forms of sponsored search advertising as distinct channels to test their interaction effects. Furthermore, it investigates how review features function between advertising and sales, specifically by determining whether they act as accelerators or decelerators in the multi-channel context.