Contributions

  • Gilchrist, Duncan S. - Contributor
  • Harvard Business School - Contributor

Publication

2010 - Harvard Business School, Boston, Massachusetts

Language

English

Word Count

4,500 words, Guess

Page Count

18 pages

Identifiers

Description

In an online experiment, we measure users' interactions with search engines, both in standard configurations and in modified versions with improved labels identifying search engine advertisements. In particular, for a random subset of users, we change "sponsored link" labels to instead read "paid advertisement." We find that users receiving the "paid advertisement" label click 25% to 33% fewer advertisements and correctly report that they click fewer advertisements, controlling for the number of advertisements they actually click. Results are most pronounced for commercial searches, and for users with low income, low education, and little online experience.

Description

In an online experiment, we measure users' interactions with search engines, both in standard configurations and in modified versions with improved labels identifying search engine advertisements. In particular, for a random subset of users, we change "sponsored link" or "ad" labels to instead read "paid advertisement." Relative to users receiving the "sponsored link" or "ad" labels, users receiving the "paid advertisement" label click 23% and 26% fewer advertisements, respectively. Users seeing "paid advertisement" labels also correctly report that they click fewer advertisements, controlling for the number of advertisements they actually click. Results are most pronounced for commercial searches, and for users with low income, low education, and little online experience. We find no evidence that consumers find Google's new "ads" label more informative than the longstanding prior label "sponsored links."

Subjects

Series Statement

  • Working paper / Harvard Business School -- 11-048

Other Editions

  • "Sponsored links" or "advertisements"?: measuring labeling alternatives in internet search enginesHarvard Business School2010-01-01

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