Automated Targeted Bidding for Sponsored Ads on E-Commerce Platforms

References

• Agboola A (2024) The truth about Amazon dynamic bidding: A data-driven revelation that changes everything. LinkedIn Pulse. Accessed June 26, 2025, https://www.linkedin.com/pulse/exposed-amazons-own-data-just-destroyed-everything-you-agboola-mxx9c/.Google Scholar
• Amaldoss W, Desai PS, Shin W (2015) Keyword search advertising and first-page bid estimates: A strategic analysis. Management Sci. 61(3):507–519.Link, Google Scholar
• Amaldoss W, Jerath K, Sayedi A (2016) Keyword management costs and “broad match” in sponsored search advertising. Marketing Sci. 35(2):259–274.Link, Google Scholar
• Amazon (2018) Seller success story: Popfunk transforms its company DNA with the help of Amazon advertising. Amazon advertising blog. Accessed February 19, 2024, https://advertising.amazon.com/blog/seller-success-story-popfunk.Google Scholar
• Amazon (2023) Guide to dynamic bidding - up and down, with sponsored products. Amazon advertising library. Accessed February 22, 2024, https://advertising.amazon.com/library/guides/dynamic-bidding-sponsored-products.Google Scholar
• Athey S, Ellison G (2011) Position auctions with consumer search. Quart. J. Econom. 126(3):1213–1270.Crossref, Google Scholar
• Ben Elhadj-Ben Brahim N, Lahmandi-Ayed R, Laussel D (2011) Is targeted advertising always beneficial? Internat. J. Indust. Organ. 29(6):678–689.Crossref, Google Scholar
• Chen Y, He C (2011) Paid placement: Advertising and search on the internet. Econom. J. 121(556):F309–F328.Google Scholar
• Chen Y, Iyer G (2002) Research note consumer addressability and customized pricing. Marketing Sci. 21(2):197–208.Link, Google Scholar
• Chen J, Stallaert J (2014) An economic analysis of online advertising using behavioral targeting. MIS Quart. 38(2):429–450.Crossref, Google Scholar
• Choi H, Mela CF (2019) Monetizing online marketplaces. Marketing Sci. 38(6):948–972.Abstract, Google Scholar
• Choi WJ, Sayedi A (2019) Learning in online advertising. Marketing Sci. 38(4):584–608.Link, Google Scholar
• Choi WJ, Sayedi A (2023) Agency bidding in online advertising. Preprint, submitted January 23, https://doi.org/10.2139/ssrn.4324955.Google Scholar
• Connolly B (2024) Amazon sponsored products ads 2024 guide. JungleScout (March 14), https://www.junglescout.com/blog/amazon-sponsored-product-ads.Google Scholar
• De Corniere A, De Nijs R (2016) Online advertising and privacy. RAND J. Econom. 47(1):48–72.Crossref, Google Scholar
• Derakhshan M, Golrezaei N, Manshadi V, Mirrokni V (2022) Product ranking on online platforms. Management Sci. 68(6):4024–4041.Link, Google Scholar
• Edelman B, Ostrovsky M, Schwarz M (2007) Internet advertising and the generalized second-price auction: Selling billions of dollars worth of keywords. Amer. Econom. Rev. 97(1):242–259.Crossref, Google Scholar
• Ganuza J-J (2004) Ignorance promotes competition: An auction model with endogenous private valuations. RAND J. Econom. 35(3):583–598.Crossref, Google Scholar
• Ganuza J-J, Penalva JS (2010) Signal orderings based on dispersion and the supply of private information in auctions. Econometrica 78(3):1007–1030.Crossref, Google Scholar
• Hummel P, McAfee RP (2016) When does improved targeting increase revenue? ACM Trans. Econom. Comput. 5(1):1–29.Crossref, Google Scholar
• Iyer G, Soberman D, Villas-Boas JM (2005) The targeting of advertising. Marketing Sci. 24(3):461–476.Link, Google Scholar
• Jerath K, Ma L, Park Y-H, Srinivasan K (2011) A “position paradox” in sponsored search auctions. Marketing Sci. 30(4):612–627.Link, Google Scholar
• JungleScout (2023) Amazon advertising report. JungleScout reports. Accessed February 13, 2022, https://www.junglescout.com/amazon-advertising-report.Google Scholar
• Katona Z, Sarvary M (2010) The race for sponsored links: Bidding patterns for search advertising. Marketing Sci. 29(2):199–215.Link, Google Scholar
• Kirkland J (2024) Toyin Kolawole put her love of Nigeria into the success of Iya Foods. Amazon advertising blog. Accessed March 12, 2024, https://advertising.amazon.com/en-us/blog/iya-foods/.Google Scholar
• Lauga DO, Ofek E, Katona Z (2022) When and how should firms differentiate? Quality and advertising decisions in a duopoly. J. Marketing Res. 59(6):1252–1265.Crossref, Google Scholar
• Li L, Chen J, Raghunathan S (2018) Recommender system rethink: Implications for an electronic marketplace with competing manufacturers. Inform. Systems Res. 29(4):1003–1023.Link, Google Scholar
• Long F, Liu Y (2023) Platform manipulation in online retail marketplace with sponsored advertising. Marketing Sci. 43(2):317–345.Link, Google Scholar
• Long F, Jerath K, Sarvary M (2022) Designing an online retail marketplace: Leveraging information from sponsored advertising. Marketing Sci. 41(1):115–138.Link, Google Scholar
• Lu S, Zhu Y, Dukes A (2015) Position auctions with budget constraints: Implications for advertisers and publishers. Marketing Sci. 34(6):897–905.Link, Google Scholar
• Moorthy S, Shahrokhi Tehrani S (2023) Targeting advertising spending and price on the Hotelling line. Marketing Sci. 42(6):1057–1079.Link, Google Scholar
• Pazgal A, Soberman D, Thomadsen R (2022) Consumer informedness: A key driver of differentiation. J. Econom. Management Strategy 31(2):356–368.Crossref, Google Scholar
• Rutz OJ, Bucklin RE, Sonnier GP (2012) A latent instrumental variables approach to modeling keyword conversion in paid search advertising. J. Marketing Res. 49(3):306–319.Crossref, Google Scholar
• Sakkan Y (2019) Amazon bidding: The ultimate guide to dynamic bidding strategies and “adjust bids by placement” (with examples). Perpetua (February 26), https://perpetua.io/blog-amazon-ppc-advertising-dynamic-bidding-bid-strategy/.Google Scholar
• Salop SC (1979) Monopolistic competition with outside goods. Bell J. Econom. 10(1):141–156.Crossref, Google Scholar
• Sayedi A, Jerath K, Srinivasan K (2014) Competitive poaching in sponsored search advertising and its strategic impact on traditional advertising. Marketing Sci. 33(4):586–608.Link, Google Scholar
• SellerApp (2023) What are the advanced Amazon PPC strategies for 2023 sellers? SellerApp blog. Accessed December 1, 2025, https://www.sellerapp.com/blog/advanced-amazon-ppc-strategy-revealed.Google Scholar
• Shin W (2015) Keyword search advertising and limited budgets. Marketing Sci. 34(6):882–896.Link, Google Scholar
• Shin J, Shin W (2023) A theory of irrelevant advertising: An agency-induced targeting inefficiency. Management Sci. 69(8):4481–4497.Link, Google Scholar
• Sun H, Fan M, Tan Y (2020) An empirical analysis of seller advertising strategies in an online marketplace. Inform. Systems Res. 31(1):37–56.Link, Google Scholar
• Ursu RM (2018) The power of rankings: Quantifying the effect of rankings on online consumer search and purchase decisions. Marketing Sci. 37(4):530–552.Link, Google Scholar
• Varian HR (2007) Position auctions. Internat. J. Indust. Organ. 25(6):1163–1178.Crossref, Google Scholar
• Wilbur KC, Zhu Y (2009) Click fraud. Marketing Sci. 28(2):293–308.Link, Google Scholar
• Wong R (2025) Amazon bidding strategies: Complete guide to dynamic bids vs fixed bids, placement (bid+) & more. SellerMetrics (March 20), https://sellermetrics.app/amazon-ppc-campaign-bidding-strategy/.Google Scholar
• WordStream (2023) 8 advanced tips for advertising on Amazon. WordStream blog (November 30), https://www.wordstream.com/blog/ws/2019/05/01/amazon-advertising-tips.Google Scholar
• WTMDigital (2019) Amazon releases dynamic bidding & bid adjustments by placement. WTMDigital blog. Accessed June 26, 2025, https://www.wtmdigital.com/blog/amazon-releases-dynamic-bidding-bid-adjustments-by-placement/.Google Scholar
• Yang J, Sahni NS, Nair HS, Xiong X (2023) Advertising as information for ranking e-commerce search listings. Marketing Sci. 43(2):360–377.Link, Google Scholar
• Zhong Z (2023) Platform search design: The roles of precision and price. Marketing Sci. 42(2):293–313.Link, Google Scholar
• Zhou B, Zou T (2023) Competing for recommendations: The strategic impact of personalized product recommendations in online marketplaces. Marketing Sci. 42(2):360–376.Link, Google Scholar
• Zhou B, Zou T (2025) Self-preferencing and search neutrality in online retail platforms. Management Sci. 71(5):4087–4107.Link, Google Scholar
• Zia M, Rao RC (2019) Search advertising: Budget allocation across search engines. Marketing Sci. 38(6):1023–1037.Abstract, Google Scholar