Achieving more by saying less? On the Moderating Effect of Information Cues in Paid Search

Abstract

Research on ad copy design is well-studied in the context of offline marketing. However, researchers have only recently started to investigate ad copies in the context of paid search, and have not yet explored the potential of information cues to enhance customers’ search process. In this paper we analyze the impact of an information cue on user behavior in ad copies. Contrary to prevalent advice, results suggest that reducing the number of words in an ad is not always beneficial. Users act quite differently (and unexpectedly) in response to an information cue depending on their search phrases. In turn, practitioners could leverage the observed moderating effect of an information cue to enhance paid search success. Furthermore, having detected deviating user behavior in terms of clicks and conversions, we provide first indicative evidence of a self-selection mechanism at play when paid search users respond to differently phrased ad copies.