In this article, we use data envelopment analysis combined with principal component analysis to evaluate the efficiency of online retailers in search advertising. We examine various efficiency model specifications involving several resource and performance‐related variables in search advertising. Our analysis based on 200 retailers suggests different efficiency patterns for multichannel and Web‐only retailers. The results of our efficiency pattern analysis indicate that the performance metrics, impressions, online sales, click‐through rate, and conversion rate together reveal differences in efficiency mainly for multichannel retailers. On the other hand, ad positions in sponsored and organic links reveal differences in efficiency for Web‐only retailers. In terms of overall efficiency, we find that multichannel retailers occupy relatively most of the top positions. These results contribute to organizational level understanding of search advertising practices in online retailing and offer insights into keyword management, resource utilization, and performance metrics in search advertising campaigns.

In Internet marketing, organizations leverage the Internet and related technologies to promote themselves, their products, their services, and their brands. In virtually all sectors, recent advances in Web technologies have dramatically changed the nature and volume of Internet marketing. Competition in online advertising is currently very intense as organizations have shifted their focus from print and other traditional advertising media to emails, search engines, and social media outlets for most of their promotional activities. However, due to the growing convergence of digital technologies, distinguishing one form of online marketing from another is becoming increasingly difficult. The current practice shows that there is a significant overlap of technologies as well as activities in most of the online marketing and advertising outlets. This chapter attempts to provide a classification of the major forms of Internet marketing (or online advertising) available, and discuss the key technological trends, practices, and academic research in each area. In particular, the chapter highlights the changing trends in Internet marketing due to recent developments in Web 2.0 and social media technologies.

In Internet marketing, organizations leverage the Internet and related technologies to promote themselves, their products, their services, and their brands. In virtually all sectors, recent advances in Web technologies have dramatically changed the nature and volume of Internet marketing. Competition in online advertising is currently very intense as organizations have shifted their focus from print and other traditional advertising media to emails, search engines, and social media outlets for most of their promotional activities. However, due to the growing convergence of digital technologies, distinguishing one form of online marketing from another is becoming increasingly difficult. The current practice shows that there is a significant overlap of technologies as well as activities in most of the online marketing and advertising outlets. This chapter attempts to provide a classification of the major forms of Internet marketing (or online advertising) available, and discuss the key technological trends, practices, and academic research in each area. In particular, the chapter highlights the changing trends in Internet marketing due to recent developments in Web 2.0 and social media technologies.