ABSTRACT
Service providers increasingly use multiple channels for their advertising. One compelling combination integrates affiliate marketing with search-engine advertising. The affiliates' design parameters and the merchant's parallel search-engine advertising both influence the click paths of users in an affiliate-marketing campaign, which runs from clicks to sales. The merchant's simultaneous use of search-engine advertising, however, cannibalizes clicks and sales in the click path. Affiliates must use different text links to ensure positive impacts on clicks and sales in their affiliate-marketing campaign. The effect of the affiliates' advertising impressions thus depends on the method and its estimators.
- Received April 5, 2017.
- Received (in revised form) September 28, 2017.
- Accepted January 29, 2018.
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